BCCI: Job cuts likely in January
President of the Barbados Chamber of Commerce & Industry (BCCI), Eddy Abed, says fallout from the National Social Responsibility Levy (NSRL) will result in job losses as early as January.
“If you think business is going to get better in the short term, you will do what is necessary to hold on. If you feel that in the short term it will get no better, you’re going to make a decision that protects the business,” he told the WEEKEND NATION in a recent interview.
“At the end of the day, no one likes to make tough decisions when it comes to staffing. These are friends, citizens, neighbours and people you interact with on a daily basis. This is not an easy decision for any employer to make.”
He said the acting Central Bank Governor, Cleviston Haynes, had already given a good signal of what was imminent during his report about the economic performance over the first nine months of the year.
“At the end of June, the economy is growing at 2.2 per cent, but at the end of September it is down to 1.4 per cent. We have seen a reduction in growth in three months primarily due to the slowdown in business as a direct result of the imposition of the NSRL.
“As prices have gone up, the volumes at which businesses can sell currently, as opposed to before, has slowed significantly. Frankly, with inventory sitting on the floors of many of our businesses in this country, they then need to look at how best they can cut their expenses, which is labour. No one is going to do that now, but I think that any business, unless they have a good Christmas, will be forced to make that decision come January,” Abed said. ( RA)