Chris Famous: “The Gentrification Of Bermuda”
[Opinion column written by Chris Famous]
On October 1st, 2014, Minister Fahy unveiled the OBA’s draft Work Permit Policies.
1. Bermuda Employment Visa [BEV]
This category will allow exempted companies to:
- hire non-Bermudians as 20% [1 in 5] of their staff without having to advertise or applying for a work permit
- have BEVs issued for a period of up to 7 years
- apply for a new BEV or a Standard Work Permit at the end of the BEV term
- employ BEVs in any job category except for entry level positions*, closed** or restricted categories**
- have the power to decide which of their employees will receive a BEV
It is important to note:-
- i. BEVS blocks qualified Bermudians from access to 20% of the jobs at qualifying companies
- ii. there is nothing to restrict these same companies from also being granted work permits for the majority of the remaining 80% positions
- iii. as a BEV can be issued for a period of 7 years AND can be renewed for an additional 7 years, qualified Bermudians can legally be denied access to these jobs for up to 14 years
- iv. this policy has the potential to create a glass ceiling where Bermudians are relegated to entry level positions because advancement is blocked by non-Bermudians holding BEVs in positions directly above them
- v. if a company downsizes and, as a result, has more than 20% of its staff holding a BEV, a company will not to have to forfeit BEVs
- vi. * the proposed policy does not include a definition of “entry level positions” leaving an area of contention of who determines what jobs fall into the category protected for Bermudians
- vii. ** currently, there are only 3 occupations that are closed or restricted that would impact exempt companies:-
- a. Office Receptionist
- b. Bank Teller
- c. Administrative Assistant
2. New Business Work Permit [NBWP]
New exempt companies in this category can:
- receive automatic approval of an unlimited number of work permits [if applied for within the first 6 months]
- employ NBWPs in any job category except for entry level positions*, closed** or restricted** categories
- NBWP will be issued for up to 5 years
- apply for a new BEV or a Standard Work Permit at the end of the NBWP term
It is important to note:-
- i. as entry-level positions are not defined and there are no restrictions as to the number of NBWPs a company can be issued, there is a potential that a new exempt company can be 100% staffed by non-Bermudians
- ii. as a NBWPs can be issued for a period of 5 years AND can be renewed for an additional 7 years as a BEV, qualified Bermudians can legally be denied access to these jobs for up to 12 years
3. Global Work Permits [GWP]
This will allow a global company:-
- to transfer a person already employed by the company in another jurisdiction to a new position in the Bermuda office without advertising the position.
- the term of a GWP is up to 5 years
- as a GWP can be issued for a period of 5 years AND can be renewed for an additional 7 years as a BEV, qualified Bermudians can be denied access to these jobs for up to 12 years
- applications will be automatically approved for individuals who have been employed for greater than one year and who earn a gross salary greater than $125,000 per year. Consideration for exceptions to these restrictions will be given on a case-by-case basis.
Public Collaboration
“We also look forward to receiving feedback from the public before finalizing this document,” Minister Fahy – October 1st, 2014
Can Minister Fahy explain why “The Official Journal Of The Bermuda Insurance Industry [Volume 2 – 2014]” referred to both GWP and NBWP as a part of “a revised work permit policy introduced” implying that these changes have already been implemented?
Where was the public collaboration?
The Bigger Plan
This proposed draft Work Permit Policy must be viewed in light of other OBA initiatives:-
- Remove term limits, creating long-term residents
- Companies Act amendment to allow foreign companies to purchase residential lands
- Incentives for Job Makers Act amendment making it easier for IB executives to become PRCs
- Draft the Public Bodies Reform Act to enable outsourcing, mutualizing and privatization which will result in unemployed Bermudians
- Proposing the removal of the 60/40 rule
How does these proposed Work Permit Policies help our returning university students or Bermudians qualified in IB find employment?
There is only one term to describe these actions; “The Gentrification of Bermuda.”
- - Chris Famous can be contacted via email at Carib_pro@yahoo.com or Twitter at @ryderz777
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More scare-mongering from Mr. Famous, who has an incredible lack of understanding of how the economy works, chooses populist/divisive drivel over
actually helping a country move forward and succeed, or both.
Mr. Famous, would you rather have foreigners come invited to Bermuda and spend money on rent/food/housing/tax, or not come and stay mired in our current economic slump waiting for salvation from (insert heavenly diety here)
I would challenge you to propose 2 well thought out, detailed proposals to climbing out of our current recession and employ Bermudians.
I challenge you to do the same as you are asking Mr. Famous to do.
You seem to be stuck on the same “Famous cannot be right” trend.
It’s good for democracy when people disagree with government policy especially when the policy seems to be anti-populus.
Was there any government/civilian correspondence involved in drafting this? And why exactly is our government doing this are two well thought out questions and both deserve an honest answer.
You’re disregarding the message because you don’t like the man or because you feel as if it is popular to disregard anything Mr famous has said and that is ignorance at its peak.
They are doing this to entice job creators to our shores and increase foreign currency earnings for the island. I know that you know (by your posts) that the BD$ isn’t worth the paper is printed on and as we improt everything to survive we need foreign currency earnings to increase.
While the above poster might be disregarding Mr. Famous, Mr. Famous himself conveniently disregards and omits the various requirements that companies must adhere to in order to qualify for these various work permits. He wrote the article to portray a picture that the new policy allows companies to come here willy-nilly withouy having to fulfill some form of obligation to the jurisdiction and her local people.
It is what he does when he uses his silly quotes at his articles without providing the context in which they were spoken.
Actually I vehemently disagree with most things that Mr Famous writes in his columns. It’s not because I don’t like him, or that I feel it is popular to disagree with him.
Mr. Famous doesn’t seem to understand/care how the money multiplier works, or how re/insurance companies need to operate in the wake of a market moving event. (The answer to that is quickly btw)
He is only interested in taking cheap political shots, at the long term expense of Bermudians I might add.
Money multiplier is easy, for every dollar that is spent in our economy, its actual effect is multiplied x number of times. When Person A spends it on rent, landlord A than spends y% on food and z% of it on a mortgage. i% of that y% gets spent by the grocer to pay its employees, who repeat the cycle. j% of the z% is spent by the bank to pay its employees. Who also repeat the cycle. Eventually all of this money ends up overseas or as a tiny fraction.
Follow me? So add more money at top, and it creates a larger effect on the economy. In fact govt gets to collect tax on it multiple times. Therefore allowing foreigners to come in at senior positions creates more economic money than just salaries paid.
Proposals to improve Bermuda.
Firstly I’d challenge you to do the same thing! Imagine if we all proposed ways to improve Bermuda instead of bashing each others ideas?
1) Fix education. We moved from a service based economy to a knowledge based economy 25 years ago and none of the governments since have acted to update our education system. How can we expect to fill roles ourselves if we can’t educate our students to the same standard.
2) How about some trying to entice some small software companies to come here? Proximity to NY financial markets, low tax, good regulation, sunshine, good quality of life? Maybe then we get access to large banks, potential IPOs and improvement into a more digital society.
Happy?
The biggest misrepresentation about this is that IB will be doing exactly as Mr. Famous says… The hole in this is that it is easier for an IB hire a qualified Bermudian than a foreigner. The onus is on any Bermudian seeking this area of employment to make sure they are adequately qualified, by taking every opportunity to network within the industry, find out what the companies will be looking for and even talk to them about starting work in one of their other overseas offices. Simply coming back here with a degree is not enough if you want to enter a field that requires an international view. The message that Mr. Famous should be promoting in our community is that we need to work for our place here and to not be telling people that they won’t be welcomed here. That is pure opinion, a company will hire someone that works hard with the right attitude, and that attitude is not one of entitlement. The more Mr. Famous promotes this message that Bermuda will be closed to Bermudians, the more he will dishearten our future generations from actually trying to work for it.
My message to those looking to the industry, be prepared to start at the bottom and with hard work, work your way up. Even look to start overseas and make the international connections and be prepared to never stop learning, your education should never end.
When posts don’t even have to be advertised, what does being qualified have to do with anything?
A chunk of jobs will not be made available for Bdians via this Work Permit Policy proposal
If you move a business operation here, then you want it to work. You need jighly qualified personnel to get it up and running. do you think moving, expanding business is just for a bit of fun.
Lauren,
If an investor brings 100 jobs to Bermuda, out of those 80 must be Bermudian and the other 20 can be non-Bermudians but there must a plan in place to train and promote Bermudians to eventually replace these 20. So what you are saying is that it’s better for Bermuda if NONE of the 100 jobs come here rather than have 20% under a BEV. No wonder we’re broke. It’s called cutting off your nose to spite your face
Again, like Mr. Famous, your assumption is that IB companies have no intention of advertising for positions. A false mis-representation about the industry, just because they will not be required, does not automatically mean they will not.
Highly educated /qualified key positions have lack of work permit control and less educated labour industry have an in effect lack of permit control driving down the income for Bermudians in labour industry as according to statistics a great percentage of jobs ranging from tiling to carpentry, masonry and landscaping are filled by work permit holders.
1.Stricter permit control on construction industry jobs is needed
2.Quality education and career education opportunities and work placement opportunities for Bermudians facilitated by our Government.
I can only see these policies as enlightened when you compare them to the PLP policies which now look like they were from the dark ages.
Bermuda is saying we are open for business, come and see us and we will look after you, instead of ‘yeah sure, you can come but we’ll only let you in for small time and then your key people will have to leave.’
Name one PLP policy.
I’m not defending anyone I just hate when people make unsubstantiated claims.
In sure you don’t have an understanding of economics and you just want your bullshit to be posted on this forum.
Answer me this. From a basic macroeconomic view. int is the government attempting to lower inflation or increase our pgdp or agdp with this action? Would this takd us out of recession? Which economic model did you use to come up with your statement?
Dont be stupid or atleast be original with your stupidity .
Term limits. Yes they were a major hindrance to the IB operating models and have been confirmed by IB executives as being a main driver for moving senior positions to our competitor jurisdictions who do not retain such protectionist policies in a globalized world. It was enforced by the PLP despite being provided legal opinions, at the time, that they did nothing to safeguard Bermuda jobs.
Raising payroll and foreign currency with no form of consultation with anyone in the midst of BDA’s worst recession ever. Even former Premier Cox had to repeal the increase one year later because of their devastating effects on locally domiciled business.
…one policy…..how about:
- 6 year term limits
- Bermudians married to non- Bermudians requiring licences to buy a home in their own country
- Bermudians no longer able to sell their homes to non-Bermudians
I’m guessing you may not be all that familiar with economic terms yourself. Since I actually am (and have a degree in it), I can help:
(1) Currently inflation is pretty low, hovering around 2.1% as of the last CPI report. I don’t think anyone is really up in arms about this. Also,any fiscal policies used to control inflation and reduce it further would result in slower growth and more unemployment. Definitely not something we are aiming for!
(2) I’m assuming your terms pgdp and agdp stand for potential gdp vs. actual gdp. I THINK what you really mean is nominal vs. real GDP. Obviously, the answer is real GDP, and yes that would help take us out of this situation.
Which economic model did I use? Well, I don’t particularly subscribe to any ONE school of thought, but I agree mostly with Austrian economics.
As to previously PLP policies which I thought were disastrous, that would be the ill thought out increase in payroll tax and cap.
Thank you much appreciated.
you answered my questions, and put forward a policy that you feel the plp fudged.
kind regards
I would hope that, had PLP got in at the last election, that they would be doing something similar in order to kick start our economy.
Praying to God won’t fix this.
The usual recipe – 1 part facts, 1 part opinion, 1 part speculation, 1 part misinformation. Mix well, place over low heat and let simmer. Serve and let the gullible digest.
CF – read and respond to today’s Larry Burchall article.
He won’t dare touch Mr. Burchall’s article. Too many facts he can’t rebut or manipulate. Can’t argue numbers.
Just like he refuses to answer the people who ask him why he didn’t register his disdain on privatization when the PLP privatized/outsourced several previously public services (i.e. TCD, recycling pick up, airport services, Global Hue etc.).
As for his article above it is amazing that he ‘forgot’ to include all the stipulations that are required to fulfilled in order for companies to qualify for the various categories of work permits. The requirements that are aimed at ensuring Bermudians are trained and found through out all levels of the company.
But then again such requirements are those pesky facts that get in the way of his arguments.
So Mr. Famous, a) why didn’t or haven’t you spoken out against the PLP’s privatization efforts while in power and b) why did you leave out the requirements that businesses must fulfill to be eligible for the new work permit policy?
Good luck. Debating, presenting, discussing or considering facts has never been his approach so don’t expect it to start now. He prefers to deal in innuendo, scaremongering and opinions disguised as facts when pushing out propaganda pieces.
Back in April Mr. Famous wrote an article regarding precertification that was just backed up ,”according to r.g. report 6/10.14′,by doctors and insurance companies..Continue the great work Chris,you be Famous for bringing forth the facts and provoking thought, well done Son!
Famous, If people like you and me didn’t compete, there would be a hellova lot more BELCO employees with BEV working there.
Bermuda is in direct competition with the likes of up and coming Gibraltar.
Fahy knows this and is trying attract whatever new business he can with these new business friendly policies.
The alternative is that Bermuda will lose the chance to grow and attract new companies, and many of those IB trained Bermuda students will end up working in IB abroad.
Thank you for looking out for the returning Bermudian students Mr. Fahy.
im glad you mentioned about our IB graduates…yes they should be working abroad…bring Bda’s bacon in from somewhere else, jus as the foreignors do for their country….Bda cannot support its self, and if you spread what we have too thin amongst all Bermudians…then it will never get thick.
Chris; I would ask you “What would make you happy?”, but I think we all know the answer to that is “nothing”. So instead, I will ask you; “What would make you least miserable?”
Here it is plain and simple; the financial incompetence of the past decade have left us in a very real and precarious situation. You rally against government cuts (decreasing spending), and rally against bringing investors to the island (increasing revenue).
I get that you’re a PLP supporter and therefore reality, facts, fiscal discipline, and thinking past the end of your nose matter little to you, but having a small-minded mentality on a small island is no excuse, and certainly won’t make our financial problems disappear or magically resolve themselves.
“I get that you’re a PLP supporter and therefore reality, facts, fiscal discipline, and thinking past the end of your nose matter little to you” – wth…
The world has changed. The policies that once served us well, are no longer effective. Years ago, companies once had all their needed departments (accounting, finance, IT, operations etc) in Bermuda.
As technology improved and other jurisdictions stepped up their efforts to compete for our business, companies sent many people and often entire departments to other places.
Politically, it was often convenient to blame the Government at the time, however the reality is these companies are always looking for ways to increase efficiency, streamline and increase the bottom line. Such moves would have occurred regardless of which party had the Government. Bermuda was once a huge beneficiary of such movements as companies flocked here. Now, these same companies are finding other places preferable for a number of reasons.
We have to be flexible and cater to the needs of the business we are trying to attract. Yes, we must look out Bermudians. But let’s get the business in the door first, and if needed, tighten the rules later.
Let’s imagine that an IB company purchased the Grand Atlantic to house their employees. What benefit is there for Bermudians? The OBA has made this scenario very possible. This is not scare mongering. Neither is this article. Also one fact was not mentioned was the Police vetting process which is/will be by passed. Bermudians have to be vetted for employment.
OBA doesn’t have a clue and has demonstrated that they are just winging it. They are trying to change the Constitution and need to be shut down. They are a dangerous bunch! Bermuda stand your ground before its too late!
Please stay in your imaginary world since you have no clue.
Is that a serious question? What benefit would be to Bermudians if Grand Atlantic was purchased? Income, duh! Since we’re stuck paying for it, money in the door would be helpful. This should not be a difficult concept for you to grasp.
I’m Bermudian, I’ve never once had any employer ask the police for a report when hiring me. The fact that there is no police report does not mean there is no vetting – just no need to go to the local force to fill in unnecessary paperwork.
An ounce of common sense would certainly go a long way to making your posts somewhat credible.
How are they attemptign to change the constitution?
Firstly, they cannot buy any Grand Atlantic condos as a) they are now tourism designated and b) they fall under the ARV threshold.
Secondly, the benefits for Bermudians come in the form of taxes paid to Government, fees paid to lawyers/real estate firms/banks and other related businesses, maintenance requirements for the house that will inevitably use local contractors etc.
Also, in order to own a property above the stipulated threshold the Company must remain domiciled in Bermuda on a physical basis and cannot retain the property if they decide to leave. So the ability to purchase a property provides greater incentives for businesses to do business in Bermuda.
why dont you try and enlighten your self about “Shadow Governments”…listen carefully…NO MATTER WHO YOU GIVE THE POWER TO, IT WILL NOT CHANGE YOUR DESTINY, PEOPLE HAVE PLANS FOR YOU, WHETHER YOU LIKE IT OR NOT…if you are not in the Elites realm then YOU are NOTHING BUT A THORN IN THEIR SIDE, easily to be removed and discarded…and they WILL keep those that are non combative and are willing conformists over a rabble-rouser any day…so…the choice is yours…and im NOT talking about OBA or PLP or UNI…Peace.
Fortunately I am intelligent enough to read what Famous has to say, decipher it and formulate my own opinion based on what I already know about IB, education, employment and the like. So far, I see that Famous cant or wont see the benefits new work permit policies will bring to the island as he believes in Bermudians first…as I do however, understand what it takes for Bermuda to move forward. In the simplest of terms, we have to give a little to get more and we must prepare a ourselves for change. No one will just hand us anything anymore so we have to work harder for it. Or we can just fight the permit policy change and be stuck where we are (or get worse) for years to come. I know what I will choose.
Got to give it up to Chris for opening himself up to attack by the blind faithful for merely stating the policy.
Blind faithful? Really? I thought everyone was stating facts and why we’re in this mess
What facts, that those large multinational companies that are answerable to Shareholders, decided to pack up and leave the island because they didnt like the immigration policy, or better yet, those companies who save millions of dollars in taxes by having their holding companies being domiciled in Bermuda got up just like that because of an increase in payroll tax?? Those facts I guess your referring to,, yeah right.
Do you think that Bermuda is the only low tax jurisdiction? There are alternatives, and that’s where those companies went. Yes, the payroll tax had a HUGE impact. Oh, and those companies are still saving millions of dollars – just not here.
Yes, companies are answerable to their shareholders. And when you have a 14% INCREASE in a cost directly related to your largest expense (wages), it makes shareholders unhappy. Who’d have thought it? Oh yeah, pretty much everybody. More importantly, increasing the tax base from the limit of 250,000 to 750,000 was even worse. So the executives earning over $750k previously cost the firm $35,000 in taxes, but with the increase, now cost $120,000 in taxes.But don’t let these pesky mathematical facts get in your way.
(And yes, before all the mathematically challenged people ask, increasing payroll tax from 14% to 16% is a 14% increase in the cost (2%/14%).
Pieces of the policy were cherry picked to support his predetermined position. Opinion presented as fact and speculation as certainty. Unfortunately, there seem to be many like yourself who will take his piece as an inarguable truth without taking the time to think for themselves.
Famous,as usual is talking rubbish!
BERMUDA WAKE UP Before IT IS To lATE don’t let everything our grand parents and great great grand parent work for be giving away
How about giving away our children’s future?
That is what our current debt situation is.
sorry thelma…but it is TOO LATE already…theres only ONE thing that MAY change our quality of life, but it has to get worse before it gets better…and that is WAR…WORLD WAR III…is teetering on the brink as we speak here now…so do you really think you can change that..?
Easy to spout propaganda when you fell secure in your Friends and Family sinecure – but beware buddy, it’s not for life, because like all institutions infiltrated by Cog disease, the money will sooner rather than later run out. You would be better off preparing a good resume.
It hasn’t worked in the Cayman Islands, which is a model closest to ours! Where the OBA wants to take us, they dont have a clue and is beyond your degree in Economics! There are solutions without giving everything away. That’s all Chris is saying! Everybody thinks that they have the answers but they won’t know for sure until its too late!
Chris hasn’t provided one solution in any of his ‘opinion’ pieces to date.Not one.
He has only offered spin, half truths and blatant misrepresentations.
A constant complainer,this fellow is.