BRIDGETOWN, Barbados, CMC—The Barbados Employers Confederation (BEC) on Wednesday said it firmly believes that a collaborative approach between government and employers is essential as the island explores challenges and opportunities for developing effective policies that support an aging workforce while fostering economic growth.
In August, Elder Affairs Minister Kirk Humphrey laid the National Policy on Ageing for 2023-2028 before Parliament, emphasizing the urgent need to address the country’s swiftly aging population.
Labour Minister Colin Jordan
The policy aims to “enable and promote healthy and active aging as a way of life for all Barbadians” and “ensure that the fundamental rights and freedoms of older persons are fully recognized and vigorously defended.”
It covers key priority areas, including community care, health services, financial security, elder abuse, the built environment, and disaster preparedness.
Last month, Labour Minister Colin Jordan warned that his ministry could take legal action against employers who continue exploitative practices. He called on employers to treat older workers with dignity and humanity and criticized those who forced retirement before the pensionable age of 67.
“That is unconscionable,” Jordan said, urging employers to consider the humanity of their workers even if written contracts stipulate retirement at age 65.
He pleaded with employers not to force employees to apply for reduced pensions early:
“Have at least a little bit of conscience. Express some level of humanity. Do not force persons who have toiled in your vineyards to apply for a reduced pension to the National Insurance and Social Security Service.”
However, in a statement, the BEC said it appreciates the dialogue surrounding the challenges and opportunities presented by an aging workforce in Barbados. While Jordan has expressed that they wanted to add further context to the discussion.
BEC said that the Employment Rights Tribunal, in a quick overview of the legislation in Barbados relating to retirement, “makes it clear that there is not a one-size-fits-all structure for persons in the public sector, and certainly, none is governing the private sector.”
The BEC said that, for example, in the Defence Force, the retirement age is related to the length of service of the member of the Force and may also relate to the rank held by an officer at a particular time.
“It is crucial to recognize that not all roles allow individuals to work effectively until age 65, far less the extended age of 67 for full pensionable benefits. For certain manual jobs, e.g., in the construction industry, declining performance is noted from as early as age 60; therefore, working until 67 may not be possible for all employees,” the BEC said.
It said many organizations had aligned their employment terms and conditions to company benefit schemes, especially company pension plans.
“The established rules and benefit eligibility of pension plans are often considered in establishing company retirement ages. The term ‘normal retiring age’ is used in the Occupational Pension Benefits Act, Cap. 350B to mean the age specified in a pension plan as the normal retirement age of members.”
The BEC said that since Barbados does not have a “legal” retirement age, parties are free to negotiate terms and conditions of employment around retirement, adding that “ it is a legitimate expectation of business to have contractual terms upheld by the Ministry of Labour.”
The BEC said it supports the notion of flexibility in retirement and that there should be consideration to facilitating persons gradually transitioning from complete work into retirement. “Therefore, the revised legislation must consider and enable situations where older workers can receive partial pension income and continue to participate in the workforce part-time.
“Such systems exist and have the impact of reducing pension poverty and assisting with workforce stability in aging populations. This approach, presented in our submission on NIS Reform in 2022, could provide a balanced solution that respects the needs of both employees and employers.
“However, the current system penalizes persons who may be able to work part-time, as their NIS pension benefits may be lost. The BEC remains eager to engage in this area,” the BEC said, adding that it was again taking this opportunity to highlight concerns regarding the application of the minimum pension.
“It is troubling that individuals retiring before the age of 67—when they are eligible for a full pension—may receive nothing if their calculated pension is below the minimum threshold. This situation can be particularly harsh for those unable to continue in their previous roles due to physical limitations.
The BEC said it is essential to ensure that workers are accurately classified as either independent contractors or employees, “and we urge all employers to comply with NIS reporting guidelines.
“Misreporting, whether intentional or accidental, undermines the integrity of the system and negatively impacts workers’ benefits,” the BEC said, adding it “fully supports initiatives that facilitate a better workplace for new mothers, including provisions for breastfeeding mothers to express and store milk.
“Creating a supportive environment is essential for the well-being of employees and their families,” it added.
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