This week’s standout development as Newsmaker of the week just ended is the revelation that major companies in Jamaica are struggling to fill job vacancies.
This is due in large part to workers’ unwillingness to return to the jobs they lost at the start of the coronavirus pandemic for the same levels of compensation.
The problem of labor shortages in Jamaica was highlighted in April this year when Prime Minister Andrew Holness announced that Jamaica may be forced to import skilled workers, as the country faces a shortage of such workers, especially in the sectors construction and tourism.
Intense debate followed for weeks, with various stakeholders criticizing Holness’s position by suggesting that there is no need to import labor, but rather that institutions such as HEART NSTA/Trust increase training.
However, on the other hand, the coronavirus pandemic has impacted the local labor market, with many people choosing to become entrepreneurs, seeking employment in other lucrative industries, such as the business processing outsourcing (BPO) sector, or turning to work programs. abroad.
Still, the BPO sector, despite capturing some employees from traditional sectors, including tourism and quick service restaurants (QSR), still faces employee shortages in some areas of operation.
This week, both Thalia Lyn, director of Island Grill, and Phillip Ramson, general manager of Chas E Ramson, said they are adjusting their pay packages to attract and retain employees.
“We have a problem trying to find people to fill all the restaurants, and you can tell that all the QSRs (quick service restaurants) have that problem,” Lyn revealed Tuesday.
Thalia Lyn, Director of Island Grill
Lyn, who was speaking during the Jamaican Chamber of Commerce’s second quarter business confidence webinar, said her company’s staffing fell from 900 when COVID-19 hit in March 2020 to “600 more” in the peak of the pandemic.
“We have finally reached 90 percent, but we still need people now. We found that it’s really hard to find people who really want to work,” Lyn said.
According to her, Island Grill offers “good benefits” and is committed to paying living wages.
Admitting that it’s hard to keep up with rising inflation, Lyn said the company has always helped out with meals and kept track of staff transportation costs.
“We do (pay) based on performance, so if you come to work on time and you’re not sick or absent all the time, and we have levels of benefits (for the worker),” he said.
According to their website, there are 15 Island Grill restaurants locally.
Ramson agreed with Lyn, stating that “finding skilled labor is a challenge.”
Ramson attributed the labor shortage, in part, to the growth of tourism and business process outsourcing industries.
“Also, I think that people are demanding more because the cost of living has gone up substantially and people are not willing to work for what they worked before the pandemic. As business owners, we have to adjust our packages to reflect the needs of employees,” said Ramson.
“Just to get to and from work and provide lunch for the day, these are things that we have to look into, and this is something that we are going to wrestle with for the foreseeable future,” he added.
Chas E Ramson, founded 100 years ago, is one of the oldest food distribution companies in Jamaica.
But the phenomenon of employee shortage is also experienced in several countries, including the United States.
That revelation was made by Don Anderson, CEO of Market Research Services.
General Manager of Market Research Services Don Anderson
He highlighted that on the international stage, workers who lost their jobs during the pandemic have been reluctant to return to those jobs for the same salary.
“A lot of those workers are trying something entrepreneurial, instead of going back to those jobs,” Anderson said.
Two weeks ago, Holness again weighed in on the discussion of labor issues at the local level.
While noting that Jamaica is getting closer to full employment, he said this achievement will have implications for various local industries.
“We now have six percent unemployment, and that’s getting closer to full employment, but full employment in the Jamaican context has a lot of other implications, and I already know the tourism sector is feeling the effects,” Holness fixed.
He was speaking at the official opening of the ROK Hotel during a tour of the facility in downtown Kingston at the time.
According to Holness, several sectors currently require employees, and the Government is aware of that reality.
However, he explained that in the context of Jamaica, many of its citizens are not yet part of the workforce.
Prime Minister Andrew Holness
“It is not the case that all able-bodied Jamaicans who are able to work are employed. That is not the case. What is true is that only six percent of Jamaicans who have offered themselves to the labor market are out of work,” he reasoned. .
“…But there is still a significant number that are not formally in the workforce. Some of them are not properly trained, and some have simply decided they will not participate,” Holness added.
To address that persistent problem, the prime minister said the government will continue its efforts to bring more people into the formal workforce.
“We need you (people) to support the growth that is taking place and support the continued growth of the construction sector, the continued growth in the tourism and hospitality sector, the continued growth in the BPO sector, on which you will grow and other sectors will add … to our diversity,” Holness said at the time.
Adding to that point as well, he pointed to the recent Statistical Institute of Jamaica (STATIN) outline that the island’s economy grew by 6.4 percent in the first quarter of this year.
Holness said it’s an indication that despite the challenges of the COVID-19 pandemic and the implications of the war in Ukraine, the local economy continues to function well and more investment is required at the local level.
Amid the island’s economic growth, a historically low unemployment rate and a call for increased investment, Jamaican businessmen are wondering where the workers will come from to fill the ever-increasing list of vacancies.
Social media users also added their views to the heated discussion, arguing, in part, that business owners are to blame for not raising their employees’ wages, especially in the context of rising inflation. and the rising cost of food.
“These people (business owners) expect workers to work long hours for little pay and minimal benefits. Wow, that’s the result,” wrote Annmarie Hunter, a Facebook user.
Sheldon Reid shared, “Well, after two years of lockdown and restrictions, people found other ways to win.”
Another user of the platform, Sophia Johnson, wrote: “Happy to see this day.
“This is because of (the) way some of these employers treat workers. Out of evil must come good. Thank God for COVID. You employers should charge, cook and serve and then clean. These current business owners just want to make money for themselves.
“Those workers who have found better alternatives, please remember to set aside for rainy days, (and) pay your taxes because the school and the hospital cannot operate without money, and the other priorities in the country that require money,” he said. Johnson.
Another social media user, Phyllis Sutherland, said based on her own assessment that many industries, including construction, BPO and tourism, are struggling to get workers like restaurants and food delivery companies.
According to her, there are several “now hiring” signs everywhere, as well as many job offers posted on websites such as Caribbean Jobs.
“(This) shows that some people who are unemployed or too lazy or just love handouts. It is better to go to work with your little money than to get up every day begging and waiting to rob those who work for their honest bread.” Sutherland opined.
Alvin Reid added his take on labor issues.
“Blame it on the internet and social media. All of today’s young people are into being social media influencers. They all tune in to journalists and can even pass language arts on the GSAT!” he commented she.
To companies lamenting their plight in filling vacancies, Allison Johnson advised, “Nobody no waa dem deh work deh weh pays people less and makes people work some ridiculous hours.
“Fix the package and let it be more attractive,” he urged.
Sonya LadyLee Allen also advised: “Give employees better wages for long hours and some benefits… Slavery dun days!”