By Elvin Bailey
In May 2009, I took a vacation break. I also paused from writing articles to the newspapers. During that time, two fundamental truths were re-confirmed for me: nature abhors a vacuum and will always seek to fill it; and what people do not know, they will make up. Someone took advantage in my absence and laid three charges at your Social Security Institution. These charges are that Social Security has been weakened, has been financially challenged and is on the verge of lay-offs. This article presents our performance and lets you, the reader, decide.
First off, I admit to challenges – we are indeed challenged, always have, always will until and unless the mindset of all of us changes. We are challenged by employers who deduct but hold workers funds that, by law, should be paid to us. We are challenged by employees who connive and collude with employers not to pay dues. Later, those same employees visit our offices to complain that the employers failed to pay their contribution. We are challenged too, by the number of people who are gainfully employed in the Federation, but are exempted from the payment of contributions. We are challenged by the fact that only about 30% of our self employed entrepreneurs actually pay for themselves. We are challenged by the declining investment opportunities in the current economic climate. We are challenged by the amount of sickness we see, whether real or imagined - and there are a few other challenges. Despite these challenges, however, the good people within this Federation have put great faith and trust in us and we have not disappointed.
Are we weak because of job lay-offs? It is a fact that over 800 persons have been laid off within the Hotels & Restaurants sector in the recent past. What is also true, but little appreciated, is that many of the persons who have been laid-off had other jobs even as they worked in the hotels. Indeed, there was considerable ‘over-employment’ in the Federation, and that has served to cushion the impact of these lay-offs. Besides, many of those who were laid off were retirees – some retired returnees (I hate that word), and some former civil servants. We are also aware that due to the structure of the Protection of Employment Act, some persons will remain at home and await the pay-out, while others will seek to work clandestinely. From where I sit, unemployment in the Federation hovers around 6%, and economists will tell you that that is merely the pool from which investors will draw. The current labour force study, when completed, will confirm or negate this, but we will see.
Also, when a person has multi jobs, while each employer reports to Social Security, the information is collated under the one Insured person. Often times, the combined salaries amount to more than $6,500.00. When it does, none of the 8% and 10% deductions remains at Social Security. All of it goes to the Accountant General. Hence, it isn’t so much our “Treasury” that feels the fall off. Maybe that is why the “senior government official” is concerned, and rightly so.
Despite the current financial crisis, you have entrusted EC$22,429,218 with us up to 30th April 2009. This is EC$476,026 less compared with last year’s period; and places us about 9% short of our collections target for this year. Furthermore, in February, we achieved a billion dollars in assets. Let me repeat – two months into the year of financial crisis, our assets attained $1,000,000,000. Is that a sign of weakness?
First quarter 2009, we paid $9.86 million in benefits compared to $8.02 million in the corresponding period of 2008. We collected $14.75 million in the period, down $2.66 million over last year’s first quarter, but we caught up in April and May. We also saw registration of 407 new persons, up from the 347 of the previous corresponding period; 94 new and renewed businesses vs. 86 from the previous times and 44 closures vs. 11 in 2008. In other words, we still had a little something to bank! (Remember we increased all pension payments in January 2009; some by as much as 33%). So yes, we have been challenged, but not weakened. We are holding steady!
What about pending lay-offs? If you miss your favourite staff from Social Security, it is because that person is either on vacation, on assignment overseas, or on sick leave (I wish I could add on maternity leave). Moreover, on Monday 15th June, eight undergraduates started summer internship with us. They are in addition to the two who are with us from the annual job experience programme of the CFBC. Others will join us later in the year on a similar programme organized by the High Schools.
Furthermore, we are holding discussions on the introduction of the Unemployment Benefit that has been announced, and that may require additional staff. Rest assured, therefore, that we are not contemplating any lay-offs. Our word is our bond!
Please, there is no need to make up stories anymore.Go to our website www.socialsecurity.kn or send us a query at ssb.reform@socialsecurity.kn or pubinfo@socialsecurity.kn. Or telephone us at 465 2521/469 5245; fax 465 5051/469 1046. You can also write to us at PO Box 79, Basseterre, St Kitts; PO Box 667, Charlestown, Nevis. Or just visit our offices anytime between 8:15 a.m. – 4:30 p.m. Director, Mrs. Sephlin Lawrence and her staff will be happy to engage you.
