The Tribune

By YOURI KEMP

Tribune Business Reporter

Trade union leaders yesterday urged the Government to “set the tone” for a private sector minimum wage hike of between 19-66.7 percent via the Prime Minister’s planned increase for the public sector.

Obie Ferguson, the Trade Union Congress (TUC) president, told Tribune Business: “As I have maintained, the objective here should be not the minimum wage but a livable wage. When they amended the Minimum Wage Act previously, I suggested to them then that the range should be $250 to $350.”

“As you know, since then things have changed and the cost of living has gone up in every sense of the word. I think this is an appropriate time to see if we can consider increasing the minimum wage to what I consider to be a livable wage.”

“The minimum wage now is $210, but the minimum, I think, should be $250. It should range, in my humble opinion, to $250 to $350 considering all of what is taking place in the country today.”

The minimum wage was last increased by 40 percent in 2015 by the former Christie administration, which took it from $150 per week to $210 per week in the wake of Value-Added Tax’s (VAT) introduction.

Now, in what many observers perceive as a volatile industrial relations climate, the Prime Minister on Friday gave a vague confirmation that the Government is seeking to increase the public sector minimum wage although he seemingly ruled out doing similar for their private sector counterparts.

No details were provided, although John Pinder, director of labour, yesterday suggested the Government has been discussing an increase to between $300 to $350 per week for the public sector - well within the range suggested by Mr Ferguson.

Granting a public sector minimum wage increase will almost inevitably spark pressures for similar in the private sector, and Mr Ferguson yesterday dismissed suggestions that such a rise will increase hiring and other business costs.

“When you look at the productivity aspect, which is a very important component of cost, when you look that the cost that I am talking about is minuscule,” Mr Ferguson said. “Production increases revenue and it increases efficiency, and it also increases the way the clients or customers look at the business.

“So the whole question of the overall profitability of the company is more likely. So I don’t see it being used as a cost factor to discourage people from continuing employment or reducing employment.”

Responding to concerns that only the public sector will enjoy a minimum wage increase, Mr Ferguson said: “In most countries the Government sets the tone for everything. If the government says the minimum wage is $210, then that’s the minimum wage.

“Of course, certain individuals can go up if they want, but certainly if the law is the minimum wage is $210 you can’t take someone to court if they decide to pay $210. So it has no impact. I think our objective here should be a living wage.”

Darrin Woods, president of The Bahamas Hotel, Catering and Allied Workers Union (BHCAWU), said the minimum wage rise for the public sector “is welcomed news. But I don’t know how far that private sector is going. They aren’t moving”.

As to whether the public sector minimum wage rise will push private sector employers to do the same, he added: “Yes, it’s going to push it, but you know every time they start talking about minimum wage increase the private sector starts talking about lay-offs.

“Because we are in contract negotiations, which is different, the Government can’t really speak for the private sector. The only thing the Government would do is probably try to set the tone, and the private sector would probably follow at some point. Because they kind of piggy-back off of most things the Government would do.

“You find government does a particular thing, then they do it. So if the government increases their minimum wage they probably won’t do it right away, but I am sure the Government can find ways to get them to do something in the way of incentives and what they do for investors and such. So we’ll just watch and see what happens.”