Stricter immigration rules could lead to job losses in Cayman, Leader of the Opposition Joey Hew has warned.
Hew said that making it more difficult for people to work and settle in the jurisdiction could make it less attractive as a business hub.
The immigration reform bill, which is currently subject to a public consultation, is scheduled to be tabled in Parliament on 10 Dec.
Hew highlighted that he had heard some Cayman-based businesses had already “offshored” parts of their operations and the country would be hurt by stricter immigration and higher fees.
Hew said, “Unfortunately, when that happens that leaves Caymanians unemployed.
“The revenues from financial services have been growing, but the number of people working in the industry has been declining.”
He said, “So, we have a situation where, for obvious reasons, Cayman is an attractive place to register your offices and operate at its basic level and where a lot of effort was put into that, particularly after the economic substance legislation, to increasing employment in those businesses. In other words, more bodies in chairs.”
Hew added that government had taken “a very stern stance on immigration and are bringing changes to immigration and employment so the very high cost of doing business locally may see a lot of those positions that can be, or could be, held by Caymanians, being offshored”,
Among the proposed changes are stricter rules on work permit holders, who will not be able to switch employers in their first two years on island.
The only exceptions would be domestic helpers or in special circumstances approved by Workforce Opportunities and Residency Cayman (WORC), but affected workers would have to leave Cayman for a year before they could return to their new post.
Employers would also have to pay a fee to WORC to register a vacancy before applying for a work permit and advertise the post on the WORC jobs board and in Caymanian media for 21 days to allow for applications from residents.
Term limits for non-Caymanian civil servants would also be introduced to ensure consistency and transparency in public sector employment.
And residency periods to qualify for Caymanian status would increase from the present 15 years to 20 years in some categories.
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Once the jobs are gone, they aren’t coming back. The U.S. is already facing huge cuts in jobs but here the government is looking to crush the financial and law sectors as people know them.
Then cleaners and nanny’s won’t be needed. Less people to stock supermarket shelves. Less hotel workers when conferences go down for finance and law. This is then hit taxi drivers.
Some smart people call it a trickle down effect. The current government is looking to ruin the reputation of the Cayman Islands in finance. It’s quickly declining from a financial powerhouse thanks to this government and their “great new policies”
It is obviously an issue that work permit holders in low income jobs will sleep 6 to an apartment so they can still save money to send home, even if they are being paid minimum wage. But no Caymanian who wants to live, marry and have children eventually can afford to live on this.
It’s cost effective for employers to pay mimimum wage plus a small work permit fee rather than a living wage to a Caymanian.
What’s the answer? I can only think of increased work permit fees for these low-paid workers, even understanding it will increase costs for everyone. If the cost of employing someone from a third world country was closer to the higher per hour cost of employing a Caymanian then perhaps it would get some people off NAU.
Other young Caymanians complain that they have a good education but can’t get their “foot in the door” in an entry level position.
One reason I hear is that employers prefer expat employees because they have more control over them. If true then stopping expat employees from changing jobs INCREASES that control and thus makes the employer LESS likely to employ an “uncontrollable” Caymanian.
We must realize that we are in competition for talent with other countries: Dubai, Singapore, Jersey, Isle of Man, Bahamas, Bermuda etc. Making Cayman a LESS attractive place for people to move to reduces the pool of talent willing to move here.
I support the rule to apply rollover to goverment employees too.
Of all jobs that can be offshored and productivity increased with AI, it’s finance, which is Cayman’s one-legged stool. Absolutely foolish approach to this issue