Saba News News and Information from Saba Island, Dutch Caribbean
Private companies on the BES islands are losing employees to government positions that offer substantially better working conditions, prompting calls for expanded collective labor agreements to level the playing field.
A new study by SEO Economic Research and Vrije Universiteit Amsterdam, commissioned by the Dutch Ministry of Social Affairs and Employment, reveals the extent of the competitive disadvantage facing private employers.
Government Sector’s Competitive Edge
Public sector positions in government, education, and healthcare consistently outpace private-sector compensation and benefits. The disparity extends beyond base salaries to include superior secondary benefits, greater job security, and more protective dismissal and compensation rules for civil servants.
The wage gap widens further for Dutch nationals working temporarily on the islands, who receive additional allowances that result in higher pay than local colleagues performing identical work, even within government agencies.
Hospitality and Construction Hit Hardest
The unequal conditions pose particular challenges for private sector employers. Industries including hospitality, retail, construction, and recreation struggle to retain staff when competing against better-compensated government positions.
Many employers characterize the situation as “market-distorting,” arguing that government compensation practices undermine private sector competitiveness.
The CLA Gap
The root of the disparity lies in the limited reach of collective labor agreements (CLAs). While most public institutions, including healthcare organizations, operate under CLAs, only a small fraction of private sector employees benefit from such agreements.
Unlike in the European Netherlands, CLAs on the BES islands cannot be declared generally binding. They apply exclusively to signatory companies, making standardization of working conditions across industries nearly impossible.
Both employers and employees advocate for expanding CLAs throughout the private sector and are exploring legal mechanisms to broaden their application.
Signs of Progress
Recent developments suggest momentum toward change. Healthcare institutions across the Caribbean parts of the Kingdom are working to align their employment conditions. Trade unions have increased their presence, and one employer recently initiated a CLA process, a move unions described as historic.
The issue resonates across stakeholder groups, though perspectives differ. Employees view the public-private disparity as fundamentally unfair, while employers frame it primarily as a recruitment and retention challenge.
The central concern remains clear: government employment practices are draining talent from the private sector, disrupting the labor market equilibrium. Stakeholders hope expanded collective labor agreements can restore competitive balance.
Read the full report HERE
