Public Sector Union Raises Concerns Over Employers Avoiding Social Security Contributions Through Contract Work

The country’s largest public sector trade union has accused employers of hiding behind contract or ‘gig’ work to avoid paying social security contributions and plans to approach the government directly at “the appointed time”.

In a separate development, another trade unionist has given the government until month-end to fix the problem, accusing it of being a key offender.

“That is an issue we are finding with contract across the board,” said General Secretary of the National Union of Public Workers (NUPW) Richard Greene who revealed on Monday that the issue has been raised at the level of the tripartite Social Partnership.

“Employers trying to avoid paying statutory deductions…,” he said, noting that the problem is not only a concern in the public sector but across the private sector as well.

“Persons are termed independent contractors, but technically, they are employees because they meet all of the criteria for national insurance category – all of the things that National Insurance would use to verify whether they are employees or contract for service or contract of service,” Greene told Barbados TODAY.

“So, they are technically employees, but when they go to National Insurance though, they are not qualified as self-employed.

The union boss is insisting that the government resolve this as a matter of national policy.

“We have spoken about this publicly and we are watching and advising…. Greater attention has to be paid to this, especially in light of the reform of the NIS,” Greene said. “They all go to the entitlement of the worker in the event of any injury or any loss of the job…in terms of severance, in terms of unemployment. All of those things can impact if those deductions are not made depending on their true status.

“It is a national issue, and we want it fixed from a policy perspective. One of the ways we have approached it is by speaking to workers and educating them and letting them know the difference between contract of services and contract for services. But it needs greater public awareness and knowledge by workers.”

The NUPW general secretary’s comments came amid similar concerns related to contract workers from David Denny, executive member of the Barbados Industrial and General Workers Union (BIGWU).

Denny claimed that the government itself is guilty of paying NIS contributions for contract workers and called for the situation to be regularised.