A few days ago, Labour Minister Leroy Baptiste started spelling out the kind of changes the UNC government is planning to implement regarding our employment and labour laws.
Some, at least from a headline perspective, make total sense, like his plans to revive the National Tripartite Advisory Committee, created to bring together business, labour and government leaders.
Others are great aspirational statements that need considerably more details in terms of what they will mean in practice and how they can be implemented – after all, no government is likely to say it stands for injustice, poor productivity or a contracting economy, although often that is where things end up.
And some may raise a potential red flag if not done properly, like suggestions that the time is right for labour law reforms (a very important thing to do) in order to strengthen workers’ rights.
Again, no one should be against a robust legal framework that protects employees from abuse and exploitation, but our labour market already operates under very tight (and many also outdated) conditions, with extremely prescriptive legislation.
So, the question (and worry) is–how much tighter can it get to the point it becomes harder, not easier, for the economy to grow and generate jobs, especially those the market already needs and will need even more in the future?
Take flexible working, for instance.
As things stand and without any further tightening of the rules–our labour laws make it pretty much impossible for employees to have flexible working conditions, including part-time-like contracts.
This flexibility, as long as it is not abused, is the kind of thing that attracts younger, enterprising, digital-native professionals, especially those working in the field of IT/tech.
As it happens, Mr Baptiste’s ministry, as well as ‘Labour’, also has ‘Small and Micro Enterprise Development’ in its name and brief.
Failing to have the kind of business and legal climate that truly supports an enterprising culture is pretty much a guaranteed way to stymie enterprises (micro, small, medium or large) and then fall behind as the world moves on.
In our industrial relations mindset, we are still more obsessed with legislating over officially approved roles (through the Recognition Board) than actually allowing business–private or state-owned–to move with the times and needs at the right speed.
And waiting for a board to accept a new job role before people can be hired and start working is definitely not the way to go.
Speaking in the Upper House last week, Mr Baptiste also highlighted the government’s intention to establish a national living wage and ensure it keeps up with the cost of living.
Ensuring people are paid enough to live with a minimum level of dignity is something most sane people will fully agree with.
The issue, again, is how to achieve that and not trigger the famously dangerous law of unintended consequences.
Any government, anywhere, can jack up salaries through decrees. That is the easy bit.
The hard bit is the consequences that it can have for things like unemployment, as, perhaps perversely, the more expensive labour becomes, the more employers need to shrink the headcount to remain competitive.
Or inflation, as hardwiring wage increases to price rises, although well-meaning, can send inflation up, which, in turn, requires higher wages and so on.
If in doubt about minimum wage indexing and its perils, look at what it did in Latin America, especially Brazil: the linking of pretty much everything to the inflation rate, including salaries and pensions, was one of the main reasons that led the country to the highly destructive hyperinflation of the 1980s.
And the poorest are always more hard hit by inflation than any other members of society.
All this takes us back to the beginning of this column.
Like Mr Baptiste, most sensible people in Trinidad and Tobago believe that the time is right for labour reforms–and this is a clamour coming from all sides.
But such reform cannot be solely based on the labour movement’s demands without meaningful and respectful engagement with society at large, including, of course, business leaders (from state and private enterprises).
This will not only ensure the changes make sense and set a path towards sustainable economic growth, with the kind of job creation needed in the digital world, but also create the conditions for a set of reforms that have the support of as many as possible, instead of just one side or another.
If this Government really wants to make a massive difference now and for generations to come, it has a golden opportunity to bring key stakeholders together again through the NTAC and develop the principles and policies the country needs.
Even better if it can avoid the urge to turn everything into party politics–what if we even managed to get both the UNC and the PNM working in a non-partisan way to create an economic and employment framework designed to transcend the political mudslinging so that we can have the right conditions to ensure competitiveness in an increasingly uncertain world?
That is a very, very tall ask. But, who knows? We should never say never.