Bartlett: Pension enrolment could become condition for tourism licensing

WESTERN BUREAU:

The hospitality sector could eventually be required to enrol workers in the Tourism Workers Pension Scheme (TWPS) as a condition of licensing under an expansion being proposed by Tourism Minister Edmund Bartlett.

Bartlett has also set a target of increasing membership in the $6-billion fund from approximately 11,000 workers to 50,000 by 2028 as the Government moves to bring more informal workers into the retirement safety net.

Addressing the annual general meeting of the TWPS at the Montego Bay Convention Centre last Friday, Bartlett said the next phase must take the pension programme beyond traditional hotel employees and reach workers throughout the wider industry.

“We must go into the informal sector. Go to Negril, go to Portland, go to South Coast. Leave no tourism worker behind,” he said.

Bartlett wants the Tourism Product Development Company Limited (TPDCo) brought into the expansion drive, proposing that pension enrolment be made a condition for licensing.

The proposal could significantly widen the reach of the scheme, which was designed to accommodate workers across the industry, including those who are self-employed or operate outside traditional hotel employment.

Bartlett specifically identified red cap porters, Airbnb hosts, jet ski operators, and craft-market higglers among those who should be brought into the pension net.

The minister is also advocating stronger compliance mechanisms for employers, saying participation should eventually become a standard part of operating within Jamaica’s tourism industry.

“The employers who are contributing are doing the right thing. We must bring all employers on board. It must become a standard of doing tourism business in Jamaica,” he said.

The push for greater participation comes as the pension fund has grown to approximately $6 billion in four years, with some 10,800 workers enrolled.

Bartlett described the growth from zero to $6 billion since the scheme became operational in 2022 as evidence of workers’ confidence in the programme.

But with the tourism sector directly employing approximately 175,000 Jamaicans, he said the current membership represents only a fraction of those who could potentially benefit.

The minister also wants the TWPS developed into a wider social-protection mechanism, with health insurance, disability coverage, and housing support, among additional benefits to be explored.

Of particular significance is a proposal to examine whether a worker’s pension contribution history could assist in qualifying for a National Housing Trust (NHT) loan.

“A worker should be able to use his pension history to qualify for an NHT loan and own a home,” Bartlett said. “Let this scheme become a full social-protection floor.”

Bartlett also challenged employers to view their contributions to the scheme as an investment in their workforce rather than simply another business expense.

“When you contribute to your worker’s pension, you are not losing money. You are gaining loyalty. You are gaining productivity. You are gaining retention,” he told them.

He argued that greater financial security for workers could translate into improved retention and service delivery in an industry heavily dependent on its human capital.

With the fund now holding billions of dollars belonging to workers, Bartlett also issued a strong warning about its management and governance.

“This $6 billion is sacred money. It is a poor worker’s future,” he said.

“We must guard its governance with zero tolerance for mismanagement. Transparency, accountability, and world-class returns must be our mantra.”

The minister said the accumulated savings also have wider implications for the Jamaican economy, describing the fund as long-term domestic capital that can be invested in areas such as infrastructure, housing, businesses, and government securities.

He argued that mobilising domestic savings reduces Jamaica’s dependence on foreign capital while allowing workers’ contributions to play a role in national development.

“When tourism workers save, Jamaica grows,” Bartlett said.

The TWPS was established to provide retirement security for workers across the sector, including categories of employees and self-employed individuals who traditionally had little or no access to an occupational pension.

Bartlett said the ultimate objective is now to move well beyond the approximately 11,000 members already enrolled.

“We have done well, but our work has just begun,” he said. “The target is not 11,000. The target is every tourism worker in Jamaica.”

janet.silvera@gleanerjm.com