Contractors in Cayman have responded to comments made by Immigration Board Chairman David Ritch concerning business staffing plans at the Council of Associations’ Immigration Forum earlier this month.
During the Forum, Mr. Ritch noted that ‘contractors have consistently ignored the law to have a business staffing plan’.
‘Some construction companies have 180 work permits holders and they don’t have a business staffing plan,’ he said.
Under the provisions of the proposed amendments to the Immigration Law, companies with 15 or more work permit holders who do not have business staffing plans by the end of the year will no longer have any full or temporary work permits granted.
One local contractor suggested the problem stemmed from trying to predict company growth in an industry that is very cyclical, and which is going through a tremendous boom period.
Androgroup Ltd. managing director Alan Roffey submitted input to the government on the topic before the 13 October deadline to do so.
‘In my opinion, it is virtually impossible to formulate an accurate and meaningful Business Staffing Plan for a construction industry business in the way envisaged by the current method,’ Mr. Roffey stated in his letter. ‘[The construction industry] changes too rapidly and it is impossible to accurately project what might happen in the next month let alone the next three to five years.’
Mr. Roffey said his company first submitted a business staffing plan in early 2002. Because of delays for a variety of reasons, it was never approved. However, when he was finally going to sit down with the Business Staffing Plan Board to discuss Androgroup’s plan in September 2005, Mr. Roffey said it became apparent that the original plan was hopelessly out of date.
In that 2005 meeting with the Business Staffing Board, Mr. Roffey said he estimated that Androgroup would have to add 33 work permit holders over the next three years.
‘I recall clearly that the Business Staffing Plan Board was surprised, if not shocked, at the number proposed,’ he said.
As it turned out, however, that estimate was considerably off in just over one year, as Androgroup, because of work demand, has hired 42 more work permit holders since September 2005, 35 of whom are still with the company.
‘The prediction of 33 work permits in three years, which so surprised the Business Staffing Plan Board at the time, was demonstrably understated by two-thirds as evidenced by the fact we have already hired 42 in just over on year.’
Extrapolating his company’s growth over the past last year through 2009 would give Androgroup a company with 264 employees, 190 of which would be work permit holders.
‘Are we going to be a 264-employee company with 190 work permit holders by 2009?’ Mr. Roffey asked. ‘As a director of my company, would I be willing to declare ‘the information contained in this draft business plan to be correct to the best of my knowledge and belief and am aware that it is a criminal offence to make any statement or representation that is false in a material particular which I know to be false or do not believe to be true’?’
Mr. Roffey answered the question by saying he did not think so.
‘My opinion on part six of the [business staffing plan application] is that it is pure crystal ball gazing,’ he said. ‘None of it is ever likely to be true.
‘I can see where the figures are going, but I just don’t believe them. Then I look at recent history, and that is equally unbelievable.
‘If I can’t convince myself of these things, I can’t hope to convince others.
Mr. Roffey said the difficulties he has experienced in trying to estimate his company’s future employment needs could help explain why the construction industry has not responded well toward the Business Staffing Plan Board.
The Cayman Contractors Association, on the other hand, believes the problem lies mostly with certain businesses.
“Mr. Ritch is entirely accurate that there are contractors out there who have ignored the Business Staffing Plan,’ the CCA said in a prepared statement. ‘Many of these same businesses also chronically ignore the Labour Law, the National Pensions Law and the Health Insurance Law.
‘These businesses have gone largely unchecked for years. The Cayman Contractors Association advises all its members that compliance with all of Cayman’s laws is a prerequisite to becoming and remaining a member. The CCA does not have the power to regulate those contractors who are not members, however, and so this practice has flourished.’
The CCA said it believes the trend would soon be curtailed.
‘The present Government is committed to the passage of the Builders Bill, hopefully in the November sitting of the House,’ the statement read. ‘This Bill stipulates, amongst other things, that if a contractor does not comply with Caymanian Law, he can be refused a license.
‘The passage of this bill will result in many of the rogue companies cleaning up their act and the others falling by the wayside.’
Business Staffing Plan Chairwoman Sophia Harris said her board understands that some industries have more fluctuation in growth than others.
‘[The business staffing plan] moves according to how your business moves,’ she said. ‘None of this is cast in stone.
‘If you need to vary your plan, you let us know,’ Mrs. Harris said, adding that the Business Staffing Plan Board will accommodate reasonable requests.
‘The main thing is to just get the application in,’ she said.
Although she does not think the Business Staffing Plan application is overly complicated, Mrs. Harris recognises that some employers might be intimidated by it.
She noted that many companies are using consultants to help them prepare their business staffing plan.
Mrs. Harris encouraged business owners having difficulties with preparing a business staffing plan to consider using a consultant.
‘Why not go to someone who knows the legislation and who can help you to submit a good plan?’ she said.
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