by Curlan Campbell
- CIWU fears suggested formula change would result in lower profit-sharing for workers
- Negotiations covering 1 February 2023 to 31 January 2025 were unsuccessful
- Hubbard’s proposed salary increase of 10% for 2023 and 9% for 2024
The employees of Jonas Browne and Hubbard G’da Ltd. (Hubbard’s) have declined the company’s suggestion to alter the profit-sharing formula.
According to the Commercial & Industrial Workers Union (CIWU), the suggested change in the formula would result in lower profit-sharing for the workers.
In protest against management’s decision, workers held a silent candlelight vigil on Wednesday, 9 April 2024 at the Hubbard’s Hardware Retail Department on the Carenage in St George’s.
During their recent union negotiations, the management of Hubbard’s proposed a 19% increase in base salary and an amendment to the profit share calculation, but the negotiations covering 1 February 2023 to 31 January 2025 were unsuccessful, leading to the protest action.
The company issued a response, stating that an independent compensation survey was conducted to compare the salaries of Hubbard’s workers with those of its competitors. The release stated, “the survey results indicated that Hubbard’s base salary for certain positions fell slightly below the market average. In addition, Hubbard’s Total Cash Compensation (TCC), which includes base salary, allowances, and profit sharing, significantly exceeded the market average.”
The company’s release stated the proposed salary increase and an amendment to the profit share calculation convert a portion of the annual profit share into a guaranteed monthly base salary. Overall, these changes result in an increase in Total Cash Compensation.
According to George Mason, Industrial Relations Officer of CIWU, as per the current profit-sharing agreement, 3.75% of the profit of the company, before taxation is reserved for shareholders’ equity, and 25% of the remaining 96.25% is distributed among employees.
Hubbard’s has proposed a salary increase of 10% for 2023, and 9% for 2024. Mason said that workers are willing to accept this offer, but they are not willing to make any changes on the previous profit sharing agreement.
He used a hypothetical case to explain the implications for workers if the company’s proposal was accepted. “They are saying they want the company’s share capital — that’s the shareholders’ equity — to be attached to the amount of capital that was invested in the previous year. So whatever is invested, they find the average and whatever net profit that is made in 2023, the profit sharing will be aligned to the amount of capital invested. Now the worker’s percent will continue to be the same, but then the fear is that with the change being proposed to be done by Hubbard’s, will create more uncertainty with the profit sharing.”
The CIWU took the matter to the Labour Commissioner, who referred it to the Minister for Labour. After 2 meetings, the union expects to meet again in May.
Mason stated that workers are prepared to increase industrial action if there is no resolution soon. Meanwhile, the company stated that they “remain committed to following the legal procedures outlined in law and prioritising positive industrial relations for the benefit of our employees, customers, and other stakeholders. Our goal is to achieve a favourable outcome for all parties involved.”
The rich get richer while the poor get poorer…