De VBC newsletter van november 2018, Bedrijfsleven Curaçao

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Newsletter VERENIGING BEDRIJFSLEVEN CURAÇAO

NEWSLETTER NOVEMBER 2018

1.EDITORIAL 2.ECONOMIE  Voorstel verhogen minimumuurloon per 1 januari 2019  IMF Staff: preliminary results 2018 Article IV consultation  Vertrouwen in lokale Instituten  Cijfermatige ontwikkelingen emigratie-immigratie 3.POSITIEF ECONOMISCH NIEUWS 4.RAPPORTEN  Ontario Canada freeze minimum wage 5(Nieuwe)Wetgeving 6.ECONOMISCHE INDICATOREN 1.EDITORIAL In de afgelopen vijf jaar hebben al de regeringen een actief (opwaarts) loonbeleid gevoerd. De huidige regering is kennelijk voornemens om dit beleid voort te zetten.

Immers de Minister Sociale Ontwikkeling, Arbeid en Welzijn (SOAW) heeft recent de Sociaal Economische Raad gevraagd om advies uit te brengen over een ontwerp Ministeriële Regeling om het minimumuurloon per 1 januari 2019 met 2,1% te verhogen.

Met het jaarlijks verhogen van het minimum uurloon is en wordt door de regeringen een duidelijk signaal gegeven dat toepassen van een beleid van (op zichzelf staande) loonsverhogingen het beste instrument is om de welvaart, de werkgelegenheid, de overheidsinkomsten en de export te verhogen alsmede de armoede aan te pakken en te verminderen.

Frappant is dat de instituten die gespecialiseerd zijn in het doorrekenen van de macro sociaal-economische effecten van loonsverhogingen o.a. het Ministerie van Economische ontwikkeling, de Centrale Bank van Curaçao en Sint Maarten, het IMF en de Sociaal Economische Raad allen adviseren om voorzichtig om te gaan met sec loon verhogende maatregelen, doch ook andere grootheden zoals arbeidsproductiviteit, “cost of doing business”, concurrentiepositie en economische groei in dit proces en besluitvorming erbij te betrekken. Vooralsnog is de indruk dat niet veel gewicht gegeven wordt aan deze goedbedoelde adviezen.

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Het beste middel om te meten en toetsen of het instrument loonsverhoging macro economisch succesvol en effectief is, zijn wellicht de in de praktijk behaalde concrete resultaten. Uit de analyses, rapporten en publicaties van het Centraal Bureau voor de Statistiek en de hierboven bovengenoemde instituten blijkt dat het beleid van louter verhoging van lonen ( derhalve geen flankerende compensatie maatregelen) in de afgelopen jaren geresulteerd heeft in: - Krimp van de economie variërend van 1% tot 2% - Toename van de werkloosheid van 11,7% naar 14.1% - Verdere daling van de arbeidsproductiviteit - Toename van “onderstand” (toename armoede) - Toename van emigratie ( gebrek aan perspectieven) Op basis hiervan kan niet anders worden geconcludeerd dat het gevoerde opwaartse loonbeleid c.q. verhoging van het minimumuurloon, niet geleid heeft tot het verwezenlijken van de doelstellingen welke al de regeringen zich ten doel hebben gesteld te weten duurzame economisch groei, toename van de werkgelegenheid, verbetering van de arbeidsproductiviteit, vermindering van de armoede, kortom toename van de welvaart.

Naar aanleiding van deze concrete praktijk resultaten plaatst de VBC vraagtekens achter het gevoerde opwaartse loonbeleid van de regeringen. De hoofddoelstellingen zijn niet gehaald. Geadviseerd wordt om dit loonbeleid te vervangen door een strategie die gericht is op duurzame economische groei en werkgelegenheid. Concreet houdt dit in een aanpak in die gericht is op loonmatiging respectievelijk loonbevriezing totdat sprake is van reële economische groei en verbetering van de arbeidsproductiviteit. Op zijn minst dienen flankerende maatregelen genomen te worden om de gevolgen van loon verhogingen te compenseren en mitigeren. Andere landen waaronder Nederland zijn ons voorgegaan en thans volgt ook Ontario Canada. Is het niet raadzaam om deze ”best practices” te volgen?

In het platform Dialogo Nashonal heeft de Minister SOAW thans gesteld dat in tegenstelling tot hetgeen in memorie van toelichting staat dat het voorstel om het minimumuurloon te verhogen de goedkeuring geniet van alle partijen niet juist is. Hij respecteert het belang en goedkeuring van de gesprekpartners. Hopelijk betekent dit dat de Minister het voorstel om het minimumuurloon te verhogen aanpast en vervangt door een voorstel dat meer op de actuele sociaal-economische realiteit is afgestemd.

2.ECONOMIE  Voorstel verhogen minimumuurloon per 1 januari 2019 De Minister van Sociale Ontwikkeling, Arbeid en Welzijn (SOAW) is voornemens om per 1 januari 2019 het minimumloon aan te passen. Het betreft hier een verhoging/indexering met 2,1% van het minimumuurloon. Dit zou per 1 januari 2019 ANG 9,37 gaan bedragen ( per 1 januari 2018 is dit uurloon vastgesteld op ANG 9,175).

Dit voorstel is ingediend bij de SER ter advies.

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De motivering van de Minister om het minimumuurloon per 1 januari 2019 aan te passen luidt als volgt: Quote

Unquote En beknopt overzicht van de ontwikkeling van het minimumuurloon in relatie tot reĂŤle economische groei en werkgelegenheidsontwikkeling:

2015 2016 2017 2018 2019

Eco Min.uurloon groei ANG 8,15 0.3 ANG 8,20 -1 ANG 9,00 -1.7 ANG 9,175 -2* ANG 9,37

Werkloosh % 11.7 13.3 14.1

Bron: CBS, SOAW, IMF *verwachting IMF

Uit bovenstaande tabel blijkt dat het minimumuurloon in de afgelopen 4 jaar is aangepast/verhoogd.

Aanpassing van het minimumuurloon per 1 januari 2019 zou betekenen dat dit de vijfde verhoging op een rij zou zijn.

Opvallend is dat verhoging van (minimum) lonen gepaard gegaan is met toenemende economische krimp en stijging van de werkeloosheid. De verklaring hiervoor is eenvoudig. Er is niet gelijktijdig een flankerend beleid gevoerd om de arbeidsproductiviteit en de concurrentiepositie ( cost of doing business) te verbeteren.

Wellicht ten overvloede hierbij een beknopt overzicht van de noodzakelijke te introduceren flankerende maatregelen: flexibilisering arbeidswetgeving en markt, 3

verlagen van de collectieve lastendruk ( belastingen en premies sociale lasten) en utiliteitstarieven, afschaffen prijzenverordening en aanpak van de bureaucratie.

De uitleg van de Minister om per 1 januari 2019 het minimumuurloon te verhogen is niet in lijn met het beoogde doel namelijk het behoud en de groei van de werkgelegenheid.

Het door de Minister en zijn voorgangers gevoerde loonbeleid staat derhalve haaks op het streven van de Regeringen om duurzame reĂŤle economische groei, werkgelegenheid en vermindering van de armoede te realiseren.

Alle indicaties en (econometrische) modellen hebben uitgewezen dat het voeren van een loonbeleid sec niet zal resulteren in duurzame economische groei, toename van de werkgelegenheid, het verbeteren van de concurrentiepositie, kortom tot toenemend vertrouwen in de economie. De diverse regeringen waren en zijn op de hoogte dat flankerend beleid noodzakelijk is om de gevolgen van een evenwichtiger sociaaleconomisch resultaat te verwezenlijken.

Op de Minister SOAW wordt wederom een dringend beroep gedaan zijn loonbeleid in heroverweging te nemen en zich veeleer te concentreren op een beleid en aanpak gericht op behoud en creatie van nieuwe arbeidsplaatsen en structurele economische groei.

Hiermee zou concreet invulling worden gegeven aan zijn toezegging in Dialogo Nashonal om het oorspronkelijk voorstel tot verhoging van het minimumuurloon te herzien.

Cijfermatig overzicht van de macro financieel en sociaaleconomische gevolgen van het verhogen van de minimumuurlonen zonder flankerend beleid: 2017:

Bron: MEO, Curalyse

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2018

Bron: Notitie CBCS in opdracht van de Regering december 2017

2019

Bron: MEO, Curalyse

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 IMF Staff : results 2018 Article IV consultation An International Monetary Fund (IMF) team visited Curaçao and Sint Maarten from October 25 to November 9, 2018 to conduct discussion for the 2018 Article IV consultation.

On November 9, 2018 the IMF delegation published the Staff Concluding Statement in which the preliminary findings of the IMF staff are expressed. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Excerpt of the main findings (concerning Curaçao)

Overall conclusion: Weak growth and underlying structural vulnerabilities persist in both Curaçao and Sint Maarten, magnified further by large negative external shocks, including spillovers from one of Curaçao’s largest trading partners and the impact of Hurricanes Irma and Maria on Sint Maarten. The fiscal and external positions of both countries deteriorated, and significant uncertainty is impacting economic activity adversely. The challenging outlook makes the need for structural measures aimed at ensuring fiscal sustainability, enhancing competitiveness, strengthening investor confidence, and developing capacity more timecritical. The authorities recognize the need to act decisively to put both economies on the path of higher and sustainable growth

Recent economic developments: In Curaçao, real GDP contracted by about 1¾ percent in 2017, marking five years of recession in the past seven years. Spillovers from Venezuela, through trade, the refinery, and tourism channels, have been the main drag on growth. Inflation was zero in 2016 but rose to 1.6 percent in 2017 driven by international prices. The unemployment rate increased to about 14 percent in 2017, among the highest in the region.

Curaçao’s fiscal position worsened significantly. The current balance turned to a deficit of 0.6 percent of GDP in 2017 from previous surpluses, as nontax revenues declined and spending on goods and services increased. The overall balance also worsened due to a 1½ percent of GDP increase in construction spending on a new hospital. Gross public debt rose to 50 percent of GDP in 2017, as arrears to the public pension fund (APC) surged. Given the breach of the fiscal rule, which prohibits current budget deficits, Curaçao is required to compensate the deficit of NAf 117 million by achieving current budget surpluses starting in 2018.

The external situation of the union has deteriorated since 2015 and remains weak.

The current account deficit continued to widen to 15 percent of the union GDP in 2017, as tourism receipts declined in both countries while imports increased in Curaçao due to higher oil prices and construction activities. In Sint Maarten, lower imports and insurance payouts kept the current account positive. Official reserves declined to US$1.3 billion (about 4½ months of imports) as of September 2018.

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Outlook and risks After further contraction in 2018, Curaçao’s growth is expected to remain subdued over the medium term. Real GDP is projected to contract by 2 percent in 2018, as limited refinery operations more than offset the uptick in tourism. Given the refinery’s uncertain future, the baseline assumes continued low-level operations. Growth would improve marginally over the medium term, remaining below ½ percent .

The union’s current account deficit will gradually narrow over the medium term but remain higher than those of regional peers. Curaçao’s current account deficit would improve slightly as tourism receipts increase and construction-related imports decline. In Sint Maarten, lower exports and higher construction imports will keep the current account deficit in double digits as a share of GDP in 2018–20. Official reserves will stabilize at about 4 months of imports, in line with regional peers.

Risks to the outlook are mainly on the downside. Weaker-than-expected global growth could curb tourism demand. A stronger U.S. dollar could negatively impact the islands’ competitiveness vis-à-vis non-U.S. tourist markets. The high current account deficit, especially if it widens further, poses a risk to external stability. A slow progress in strengthening financial sector oversight, AML/CFT frameworks, and central bank governance could lead to further losses of correspondent banking relationships (CBRs).

While a continuing crisis in Venezuela is the main risk for Curaçao, hurricanes remain a major risk for Sint Maarten. On the upside, quickly finding a strategic partner for the refinery could boost growth and investment in Curaçao, while availability of additional resources and faster implementation within well-defined priorities could speed up Sint Maarten’s recovery and raise growth.

Key Policy Messages Strengthening Fiscal Frameworks, Ensuring Fiscal Sustainability, and Building Resilience Both countries need to urgently adopt a medium-term fiscal framework with a longrun debt anchor. Fiscal challenges and mixed compliance have exposed the shortcomings of the current rules-based framework. This includes the lack of a fiscal anchor, drawbacks of the balanced current budget rule, rigidities in capital spending, the lack of a well-defined ‘escape clause’, which allows for deviations from the rules in the face of major shocks, and of stipulations to build fiscal buffers. The authorities are considering some elements (like a fiscal reserve fund in Sint Maarten, and an implicit debt target in Curaçao) but a more systematic approach is needed, including through strengthening the legislation.

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In both countries, fiscal risks should be addressed through structural measures and greater fiscal transparency. 

Budgetary arrears vis-à-vis the social security and pension funds have become endemic. In Curaçao, the authorities are planning to reduce the large stock of arrears to APC; in Sint Maarten, the authorities’ plan envisages the repayment of most arrears from 2021. While greater fiscal discipline and tight spending controls would prevent future arrears, further reforms to ensure financial viability of the social security funds and the healthcare systems are needed. The envisaged introduction of a general health insurance in Sint Maarten, which needs to be budget neutral, would increase coverage and transparency.

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Fiscal transparency, reporting and coverage would need to improve significantly, to facilitate policy analyses and assess financing and liquidity needs. Use of extrabudgetary funds, including for investment, should be avoided; at a minimum, their data should be consolidated with the budget, and a coherent public investment management framework developed. Budgetary decisions should be aligned with the governments’ policy priorities.

Curaçao: Significant Fiscal Deterioration and Risks Call for a Strong Structural Response Curaçao’s fiscal position is expected to improve from 2018, but additional structural measures are needed to put the public debt on a sustainable downward path. Under current policies including cost-cutting measures, gross government debt is projected to decline slowly. Stronger measures are required to underpin the medium-term plan bringing debt down to 40 percent of GDP. The ongoing multi-year cuts in some personnel expenditure and across-the-board reductions in spending on goods and services are steps in the right direction, but to be sustainable and effective, they need to be accompanied by adjustments in public services provision, organization of public administration, and stronger public financial management.

In the mission’s view, creating space for fiscal buffers and public investment would require further structural reductions in current spending and greater revenue mobilization.



The public-sector wage bill at over 12¼ percent of GDP is among the highest in the region, especially relative to the quality of public services. Reducing it closer to the regional average by 2023 would generate about 1½ percent of GDP in savings. Such reduction could be achieved through attrition, a hiring freeze, review of non-wage benefits, preferably within a broader civil service reform to modernize service delivery and make it more efficient and performance-oriented .

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The persistent deficits of the largest health and social insurance schemes call for further measures. Despite past reforms, the general old-age pension fund (AOV) remains underfunded, and the APC struggles to meet its target coverage ratio. While the authorities are looking into reducing some non-contributory pension programs, consideration should be given to further increasing the retirement age. Despite expected savings on medical services, further cost-cutting measures should be identified to offset the higher operating costs of the new hospital (especially if contributions do not rise).

The design of some social welfare schemes (like sickness insurance and unemployment benefits) appears to create serious disincentives to work and would need to be reformed.



Revenue administration reforms could help mobilize additional revenue of 0.2 percent of GDP annually, and the authorities have embarked on technical assistance (TA) from CARTAC in this area.



The created fiscal space would allow a gradual increase in public investment over the medium term. It would also be important to build fiscal buffers, including from saving additional revenue from better tax administration

Removing Impediments to Investment and Growth Important structural impediments continue to stifle growth in both countries. Red tape and weak governance remain a key bottleneck. In Curaçao, where the Establishment Law dates back to 1946, the authorities’ plans to simplify administrative procedures for business and work permits, including launching an automated application system should be implemented without delay, supported by all involved ministries and agencies.

Improving the business environment is essential to promote diversification in tourism and other sectors and strengthen economic resilience. A strong tourism sector, with a modern and efficient infrastructure, high-quality accommodation, and a clean environment, could create further opportunities for other business, educational, and medical service sectors to develop around it.

Policies to Safeguard External Stability Policies in both countries and at the union level should contribute to strengthening external stability. Measures aimed at a faster and sustainable improvement in the budgetary positions and structural reforms to boost competitiveness, would contribute to safeguard external stability. Monetary policy effectiveness is hampered by high excess liquidity in the banking system. While the Centrale Bank van Curaçao en Sint Maarten (CBCS) has been increasing its policy rate in line with the U.S. Federal Reserve (given the exchange rate peg to the U.S. dollar), competition among highly liquid banks and institutional investors keeps downward pressure on the interest rates domestically, creating incentives to search for higher returns abroad. The CBCS should continue to 9

closely monitor developments in official reserves and remain ready to act if pressures emerge.

Strengthening Financial Sector Oversight There is an urgent need to strengthen financial sector oversight. Past weaknesses in oversight have become evident recently, requiring central bank intervention through emergency administration of three financial institutions. The risks from withdrawal of CBRs persist. The authorities plan to intensify financial sector supervision and strengthen enforcement, recognizing weaknesses and resource constraints and are encouraged to seek TA. The process of updating macroprudential databases should conclude as quickly as possible to contribute to effective financial sector surveillance. While financial innovations are gaining traction in the union, the authorities should proceed cautiously and are advised to balance the tradeoffs between potential efficiency gains and risks to stability and integrity.

Strengthening Governance Governance concerns remain at the forefront in both countries. Weak revenue and spending outcomes, limited transparency, inefficient public administration, a long-lasting absence of the central bank president, weaknesses in financial supervision, and cases of corruption, tax fraud, and money laundering point to important challenges in the areas of governance and integrity. Both countries have taken first steps towards establishing an Integrity Chamber to combat corruption and promote integrity within the public sector. In Curaçao, the discussions on the draft law on integrity chamber should accelerate, and in Sint Maarten, the authorities should operationalize the recently established chamber.

The mission is encouraged by recent changes in the CBCS governance. The CBCS has adopted a new Strategic Plan emphasizing transparency, among other key objectives, and has taken actions to address major financial stability risks. Completing the Executive Board as quickly as possible is key to further strengthening the central bank governance.

Progress is also being made on strengthening the AML/CFT framework, especially on the regulatory front, but implementation needs to be accelerated.

Building Capacity and Addressing Important Data Gaps Current policy challenges have intensified the critical capacity- and institutionbuilding needs that Curaçao and Sint Maarten have been facing. Strengthening institutions with a medium-term and macro-fiscal focus, addressing weaknesses in tax administration, public financial management, and IT systems, would help improve policy implementation and contribute to stronger growth. The authorities are encouraged to seek TA in these areas, including by accelerating Sint Maarten’s membership of CARTAC.

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Efforts to strengthen statistics and address critical data gaps should continue, and adequate resources would need to be allocated to this end.

 Vertrouwen in lokale instituten In 2015 heeft het Centraal Bureau voor de Statistiek Curaçao een onderzoek sociale cohesie op Curaçao uitgevoerd.

Een van de belangrijke deel vragen in dit onderzoek was hoe het gesteld is met de mate van vertrouwen op Curaçao.

Zoals bekend speelt vertrouwen in het proces van (duurzame) economische groei een cruciale rol. Als er weinig vertrouwen in de economie is dan zal het moeilijk worden om (bonafide) investeerders aan te trekken en te motiveren om economische activiteiten te ontplooien en daarmee structurele economische groei te genereren.

Vertrouwen in de lokale instituten is een indicatie hoe het gesteld is met dit vertrouwen.

Uit het onderzoek in 2015 blijkt dat de Curaçaose samenleving het minste vertrouwen heeft in politieke partijen (2,3%), de Regering ( 3,8%), het parlement ( 4,1%) en de vakbonden ( 6,5%).

Bron: CBS, Onderzoek Sociale Cohesie

Recent ( september/oktober 2018) heeft de op Curaçao gevestigde Inter-Continental University of the Caribben (ICUC) een enquête onderzoek uitgevoerd waarbij onder meer de vragen aan de orde zijn gesteld: - Hoe groot is het vertrouwen in onze instituten Regering, Parlement, Politie en Openbaar Ministerie (OM) ?

- Wat is de mate van tevredenheid ten aanzien van de economie?

Hieronder de resultaten van dit onderzoek: Het blijkt dat het vertrouwen in het parlement 3% , de regering 6%, de politie 22% en het OM 16% te zijn.

In vergelijking met de resultaten van het in 2015 door het CBS gehouden onderzoek komt naar voren dat er geen grote verschillen zijn. Het vertrouwen in de regering is in 2018 11

iets toegenomen terwijl deze in het parlement en de politie iets is gedaald. Ten aanzien van het OM /rechtssysteem is geen verandering opgetreden.

Met betrekking tot de economie is 5% tevreden, 7% is van mening dat het de goede kant opgaat en 9% is tevreden met de situatie op de arbeidsmarkt wat betreft werkgelegenheid.

Het overgrote deel is echter ontevreden met de economische situatie en hoe deze zich ontwikkeld. Er heerst grote bezorgdheid ten aanzien van de huidige economische situatie en de ontwikkeling hiervan. Ook ten aanzien van de ontwikkelingen op de arbeidsmarkt is dit het geval.

Bron: ICUC, oktober 2018

Bron: ICUC, oktober 2018 12

 Cijfermatige ontwikkelingen emigratie - immigratie Het Ministerie Bestuur, Planning en Dienstverlening (BPD) heeft recent cijfers bekend gemaakt over de ontwikkelingen die zich in de afgelopen jaren op bevolkingsgebied voltrekken. Enkele opvallende punten die uit de gepubliceerde cijfers naar voren komen zijn: - In de periode 1960-2018 is de bevolking van Curaçao in absolute aantallen toegenomen met 33.390 personen ( 26,6%) of wel een gemiddelde jaarlijkse toename van 0,45%.

- In de periodes 1986-1992 en 1999-2003 was er sprake van (forse) afname van de bevolking. Opvallend is dat deze periodes zich ook kenmerkte door economische achteruitgang en krimp.

- In de periode 2011 tot september 2018 is er sprake van geboorte overschot.

- In de periode 2014-2018 is er sprake van een ontwikkeling waarbij de emigratie de immigratie overtreft ofwel een migratietekort. Ook in deze periode is sprake van daling van economische activiteiten ofwel krimp.

Bevolkingsgrootte:

Bron: Ministerie Bestuur, Planning en Dienstverlening

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Geboorte en sterfte cijfers:

Bron: Ministerie Bestuur, Planning en Dienstverlening

Emigratie versus Immigratie:

Bron: Ministerie Bestuur, Planning en Dienstverlening

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Observeringen: - Er schijnt een verband te zijn tussen de stand van de economie en de bevolkingsgrootte. In periodes van verminderde economische activiteiten en krimp neemt de emigratie toe en slinkt de bevolking. Als de economie floreert en groeit is veelal het omgekeerde het geval. In het kader van formuleren van beleid is het wellicht raadzaam om hiermee rekening te houden.

- De cijfers die het Ministerie van BPD heeft gepubliceerd zijn niet consistent met die welke het Centraal Bureau voor de Statistiek openbaar heeft gemaakt. Ook leidt toepassing van de formule welke het Ministerie BPD hanteert( beginstand bevolking plus geboortecijfers min sterftecijfer plus immigratie min emigratie is eindstand bevolking) tot een andere bevolkingsgrootte.

3.POSITIEF ECONOMISCH NIEUWS

 Drijvende dokken operationeel Na de spectaculaire aankomst op 30 april 2018 van twee drijvende dokken van Damen Shiprepair Curaçao (DSCu) zijn de nodige werkzaamheden verricht om deze op hun juiste locatie verankerd te krijgen.

In november was het zover en zijn de zo geheten D-Dok en Panamex C-Dok getest en operationeel geworden.

DSCu beschikt thans over vier droogdokken : twee vaste en twee drijvende dokken.

Hiermee is voor een belangrijk deel invulling gegeven aan het groter investeringsplan en kan DSCu zich volop concentreren op het uitvoeren van scheepsreparatie werkzaamheden.

DSCu is terecht trots op het bereiken van deze mijlpaal.

Voor de Curaçaose economie is dit ook goed en positief nieuws. Curaçao kan toenemende productieve economische activiteiten goed gebruiken om uit het economisch dal te kruipen en zich te begeven op het pad van structurele economische groei.

DSCu een welgemeende Pabien en dank voor de positieve economische bijdrage.

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4.RAPPORTEN  Ontario to freeze minimum wage, eliminate mandatory paid sick days Ontario’s Progressive Conservative government says it plans to repeal chunks of the previous government’s Fair Workplaces, Better Jobs Act amid pushback from business owners who argued many of the changes were too costly, forcing them to raise prices and cut staff.

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Premier Doug Ford was elected last spring on an “open for business” platform that included a promise to freeze the minimum wage at $14 an hour instead of hiking it as planned to $15. On Tuesday, his government confirmed the freeze and followed up with a recently promised plan to scrap or amend other changes in the legislation, known as Bill 148.

The government said it will maintain the current minimum wage at $14 an hour until 2020. Labour Minister Laurie Scott said it would be “immensely unfair” to workers to roll back wage increases that they’ve have already received. The government also said it will implement annual increases to the minimum wage, tied to inflation, starting in 2020.

The government also said in a release that it will replace the previous government’s personal emergency-leave rules. Workers will be able to take up to three days for personal illness, two for bereavement and three for family responsibilities. The days will be unpaid.

The current act allows employees to take up to 10 personal emergency-leave days a year, two of them paid.

The government will also cut the section that forces employers to pay part-time and casual staff at the same rate as full-time workers doing the same work, but said it will maintain the requirement for equal pay on the basis of sex.

“Over all, our reforms will simplify, harmonize and reduce the regulatory burden for anyone willing to create jobs in Ontario,” Ms. Scott said at a news conference.

Many businesses cheered the changes on Tuesday, while labour groups argued that the government is removing workers' rights.

The government’s new Making Ontario Open for Business Act was introduced in the legislature Tuesday afternoon and passed first reading.

Ms. Scott said the government is also looking at plan that would eliminate personal income taxes for minimum-wage workers. She said provincial Finance Minister Vic Fedeli is “actively working on that right now.”

The labour-related announcements were made at the Scarborough offices of Leland Industries Inc., which makes bolts, nuts and screws for the construction industry, and included Economic Development Minister Jim Wilson and Training, Colleges and Universities Minister Merrilee Fullerton.

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Business owners have complained about the higher labour costs, including the spike in the minimum wage to $14 from $11.60 as of last Jan. 1. They have also been concerned over additional staffing needed to cover for employees in other scenarios, such as the emergency-leave days and increases to vacation entitlements to three weeks for workers at a company for at least five years.

The PC government maintained the three-week vacation entitlement after five years as well as current provisions for domestic- and sexual-violence leave, which it stated “is a valuable protection for employees.”

Shalini Sheth, director of operations at food manufacturer Surati Sweet Mart in Scarborough, Ont., says Bill 148 was introduced and implemented too quickly to enable businesses such as hers, which employs 150 full-time workers, to assess the impact and make changes.

The emergency-leave days were particularly harmful to her business, since if more than two people on their six-person fry line were to take an emergency day at the same time, the operation would have to shut down.

Peter Gossmann, co-owner and vice-president at Richmond Hill-based Plasticap, which manufactures caps for bottles and jars, is also relieved about the changes. In particular, he is happy that the government stopped changes to scheduling rules, which were set to come into effect in January.

The scheduling changes in Bill 148 were to give workers the right to refuse shifts scheduled less than 96 hours beforehand. As well, it would have required workers to be paid for a minimum of three hours at their regular rate if a shift was cancelled within 48 hours of its start time. In addition, the bill said that if an employee is on-call, but is not called in, the employer will have to pay them for at least three hours at their regular rate, with some exceptions.

The personal-leave days were also an issue for Mr. Gossmann, as they had left him scrambling to cover shifts.

He says that all of his 40 employees took their two paid leave days in the first three months of the year, many after Super Bowl Sunday, which cost the company about $30,000 in extra wages.

“We are happy with the direction the government is taking to bring back business and increase employment,” he says. “This is a real step in the right direction … I’m optimistic.”

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Labour groups and some business owners have defended Bill 148, saying it protects and expands workers' rights and pays them more to help keep up with the rising costs of living, especially in larger urban centres.

Gilleen Pearce, a spokesperson for the Better Way Alliance, a group of business owners that supports Bill 148, says she’s disappointed at the changes announced by the government that take away rights for workers.

“It’s all very short-sighted,” Ms. Pearce said. “It makes me think how disconnected business lobby groups are and the government is from the employees who help make businesses successful.”

Source: Brenda Bouw Special to the Globe and Mail Published October 23, 2018

5.(Nieuwe)Wetgeving Beknopt overzicht recente (initiatief) wetsvoorstellen/aanpassingen op sociaaleconomisch gebied welke door de Regering dan wel als initiatief ontwerp van de Staten aan de wetgevende macht ter behandeling zijn aangeboden en waar de SER advies over dient uit te brengen (periode oktober- november 2018).

Ontwerp Ministeriële regeling met algemene werking ter uitvoering van artikel 13, eerste lid, van de landsverordening minimumlonen.

Dit ontwerp behelst indexeren van het minimumuurloon per 1 januari 2019 met 2,1%.

Doorvoeren van deze verhoging zal het minimumuurloon op het niveau brengen van ANG 9,37 per uur. Per 1 januari 2018 bedroeg dit ANG 9,175

6.ECONOMIC INDICATORS Foreign Exchange Position (x mln) : Oct 2018 : NAƒ 2,227 definition IMF Oct 2017 : NAƒ 2,484 Import coverage (months) Oct 2018 : 4.4

Consumer Price Index (Oct 2006 = 100)

Average inflation past 12 months

Sept 2018 :129,7 Sept 2017: 125.6 Change : 3,3% : 2,2%

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Population and Employment Curaรงao Total population Employed population Unemployed population Labor Force Unemployment rate

2017 160,337 62,834 10,313 73,147 14.1%

2016 156,719 65,117 9,953 75,070 13.3%

Stay over tourism no of visitors

Oct 2018 year to date :345,282 Oct 2018 year to date :325,142 Change : 6%

Cruise tourism no. of passengers

Oct 2018 year to date: 574,90 Oct2017 year to date: 452,763 Change: 12%

Stay over nights

Oct 2018 year to date:3,044,679 Oct 2017 year to date:2.917,965 Change: 4%

Shipping Freight Tanker Cruise Others

Jan - Oct 2018 665 282 220 317

Jan- Aug 2018 Cargo movements, metric tons Unloaded Loaded

400,339 145,959

June 2018 Total companies Commercial Register Local International Total

27,297 11,747 39,044

Jan - Oct 2017 770 602 198 334

Jan-Aug 2017 412,045 143,225

June 2017 25,914 13,059 38,973

Source: Centrale Bank van Curaรงao en Sint Maarten, Central Bureau of Statistics, Curaรงao Tourism Development Foundation, Curaรงao Port Authority, MEO, CHATA, Chamber of Commerce Curaรงao 20