Gail Alexander
Senior Political Reporter
The next PNM government will prioritise closing existing legal loopholes that permit companies that shut down not to pay workers. There are plans to have a labour inspector among authorised officers investigating the trafficking of persons.
This was indicated, respectively, by Labour Minister Stephen Mc Clashie and National Security Minister Fitzgerald Hinds responding in yesterday’s Senate to different questions from UNC Senator Wade Mark.
Mc Clashie indicated what a PNM government would do “very early in its new tenure” after Mark’s queried measures ensuring that Stork Technical Services’ 389 employees are adequately compensated in alignment with the Retrenchment and Severance Benefits Act (RSBA).
Mc Clashie, detailing that act, said that the company was shutting down operations as opposed to retrenching.
“Therefore, this isn’t expressly governed by this act, and presently, there are no legislative procedures in the Industrial Relations Act (IRA) or RSBA that require the Labour Minister’s intervention in relation to the closure of businesses. However, if the national interest is threatened, the minister is empowered to intervene under sections 56 and 65 of the IRA and will not hesitate to.”
Mc Clashie said there was a vigilant, recognised majority union attached to the company, and in the event of retrenchment, the collective agreement between parties provided for their compensation, which would be superior to the legislated provisions of the RSBA.
“Also, non-unionised employees are entitled to be compensated in accordance with the RSBA’s provisions. In the event that these benefits are not received, those employees can directly report their matters to the minister,” he said.
Mc Clashie added, “According to information available, consultative talks are scheduled between the parties to address and resolve the situation. In this regard, management and the union met this month. I’m also happy to report that 91 per cent of the daily/hourly paid staff have been paid (ex gratia payments) and left.
“The company’s consultant has advised that a liquidator was appointed and remaining staff were monthly paid employees, whose responsibility involves the closing of administrative duties. The company serviced its last client in November 2024 and is officially closed.”
Mark asked whether the Government was contemplating amending—or considering new laws—to deal with the loopholes that permit companies that shut down not to pay/honour payments.
Mc Clashie said, ”Yes, the IRA and Severance Benefit acts are both in active consideration currently. He said the Stork issue had definitely raised and identified a loophole.
“Since we don’t want citizens to be disadvantaged, I’ll take a personal look to ensure we look at how we can close that loophole if we haven’t already considered it,” Mc Clashie added.
Mark asked if since the “political clock is ticking away fast rushing to August 2025” (term’s end) whether amendments will be presented before Parliament is dissolved.
Mc Clashie said, “The clock is ticking—tick tock, tick tock—and given the statutory requirements for elections, I don’t think there’s enough time to distil those two pieces of law and rush them through because we have an election. But on the return of the PNM Government, we’ll certainly put it at the top of our agenda for very early in our new tenure.”