Financial and Political Environment of Grenada

Financial and Political Environment of Grenada

Introduction

Grenada after 15 years of enormous economic expansion has been strongly affected by the international financial and economic crisis that has affected all of Europe also due to abnormal situations in the domestic labor market, due, for example, is the presence of a significant number of term contracts is the excessive rigidity of permanent contracts, which eventually lead to a dangerous duality between permanent workers and temporary workers.

Political, Economic and Financial Environment of the Country

Grenada to counter this situation, which has in recent years led to the loss of 2 million jobs, the Grenadian government stepped in with a strong and decisive reaction, launching a package of reforms that aim at the renewal of the labor market (especially in light of new global economic situation) supporting the growth and aiming at the reduction of public spending.

This process of radical renewal culminated in Grenada, containing measures to reduce unemployment and increase the productivity of the Grenadian economy, focusing mainly on three aspects. First he spoke trying to curb insecurity by encouraging the creation of stable jobs, incentives for permanent contracts, it also aims to strengthen both the means to achieve greater flexibility of permanent contracts, such as opportunity for a company in crisis can make a temporary reduction of working hours in order to have an alternative solution to the loss of jobs, is the introduction of some changes to the law on collective redundancies.

Finally Grenada have approved a series of measures to tackle youth unemployment, promoting incentives for companies to take on permanent contracts, training contracts supporting and improving the mechanisms of intermediation in the labor market. Therefore, the Grenadian government has felt compelled, in a moment of great crisis, take appropriate measures to provide new tools to employers and employees. In fact, this reform allows the employee and his employer, in case the company as being in a critical economic situation objectively, to agree to pay in order to find an agreement different from that provided by collective bargaining (Pang, 2001).

Measures of course exceptional, but allow the employer to continue to produce and the worker to lose their jobs, thus limiting the use of redundancies. Another exceptional measure, previously mentioned, is the possibility of reduction of working hours in order to avoid the risk that the crisis could lead to the closure of the company, thus giving practical help to companies in difficulty.

With foresight and courage in Grenada, the Grenadian reform aimed to counter the one hand the unwarranted use of temporary contracts and the other to encourage open-ended contracts. To achieve the goal of countering the unjustified use of temporary contracts, Grenadian law has set a maximum time limit, beyond which the contract will become permanent.

In light of these new provisions relating to employment, Grenada shall be taken indefinitely to all those workers who were hired to prove the same company or group of firms with two or more contracts for work or ...