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Let's consider how capitalism works. Capitalism by definition is the exploitation of the means of production to generate profits. We all subscribe to the labour theory value, meaning we (whether we are a pot washer or the CEO of an insurance company) sell our labour for less than what we are worth.

Mr. Stewart's extreme laissez-faire (keep hands off) theory of economics actually makes the case that institutional racism must exist in his world, because absolute freedom increases the power of capital, which leads to greater exploitation of labour.

Exploitation of labour takes an inextricable variety of forms, from the approved measurable objectives; education, skill, production, quality of output and experience, or the subjective; race, gender or nationality and so on. Different societies have their own subjective qualifiers or disqualifiers for preferential or discriminatory treatment such as membership in political parties (communist Russia), fairness of skin colour (Southern U.S. and some Caribbean islands), or class/cast (some Middle Eastern, East Indian or Asian countries).

As a native of Scotland I am sure that Mr. Stewart is very familiar with claims of discrimination by British citizens that may have been related to their "cockney" heritage, growing up in council housing or due to their Irish or even Scottish origin.

Amazingly, the privileged always explained away the variances with language similar to Mr. Stewart, but the damage of delayed equality of treatment compounds through generations.

Thankfully, I don't believe most employers and certainly not our international guests will be using Mr. Stewart's porous argument as a defense.

Ironically, Mr. Stewart referenced feudalism and Jim Crow (think '40 Thieves'), but when the first international business companies arrived in Bermuda in the 1960s, that is exactly what they found. Today's disparate treatment in the market place is rooted not in imported inequality but what existed in Rome before international business arrived.

It is rarely if ever discussed, but the maturity and eventual independence of international business from local overlords provided greater opportunity, upward mobility and income opportunities for all Bermudians, than if Bermuda had remained a tourist economy under the economic whip of the 40 Thieves. Thankfully due to international business surpassing the local feudal chiefs, Bermuda has not seen migration en masse of its university graduates.

Nonetheless, as wonderful as Bermuda is, our greatest vice is the division between the races. Forget CURE and consider who is in your private social circle. Most of us have friends across races, but the inner circle remains highly colour coded.

We part along racial lines

If you doubt it, just look at the wedding pictures in the glossy magazines. This is not an accusation, as most of us are inadvertently guilty (writer included). Amazingly, Bermudians (and established residents) across demographics are best of friends when we are away from Bermuda. Most former students that resided in popular college towns such as London, Halifax and Boston will attest, when everyone returns to Bermuda the once unified crew largely parts company along racial lines.

I sincerely believe that Mr. Stewart wishes that the free markets would fairly determine wages based on the aggregate skill and quality of the worker.

Unfortunately in making the assumption that the free market has fairly determined wages, Mr. Stewart has erred in remembering that economics is a social science and imports our imperfections as humans. Over the past 40 years Bermuda has progressed from an extremely racist country to a racial environment that is more institutional in nature.

Mr. Stewart can't define exactly when Bermuda had its "Come to Jesus moment" that saw discrimination disappear and a perfectly just free labour market emerge. By the way the answer is not November 9, 1998, as the PLP acquired legislative not economic power. If we have transcended to this utopia of instantaneously solving discrimination, then we would be recognized as a shining example to the world.

Compensation is a human resources discipline that manages the objective and subjective factors that impact wage determination.

If the market variances are not related to justified wage determinants, then human resource professionals are either not being effective or are being undermined.

The statistics are a compass to point us in the direction of where inequalities may exist. No one relishes being discriminated against, thus we are obligated to focus our efforts on pursing a path of constructive analysis of all the facts, identifying opportunities while presenting evidence to ally misinformation and developing strategic action plans to achieve best practices. Government has done its part by presenting the data; it is now up to the market to take corrective action. n

R. Scott Pearman BA Ecn., JP holds a Masters Degree in Labour Relations & Human Resources from Michigan State University and is a certified Professional in Human Resources.[[In-content Ad]]

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