The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Cabinet minister yesterday said the Government remains committed to “eliminating” the minimum wage and replacing it via a so-called “livable wage”, with legislation to give effect to this due to be released later this year.

Keith Bell, minister for labour and Immigration, told media ahead of the weekly Cabinet meeting that the Government is sticking to its general election campaign pledge to introduce a livable wage, although he gave no firm timeline for doing so and did not indicate what the weekly or monthly sum would be.

He added that the issue has to now go before Cabinet, while widespread consultation has to take place with stakeholders including the business community, trade unions, workers, civil society and others. “We have to speak with employers, and also employees in the wider community, before anything else is done and legislation is introduced,” Mr Bell said.

“I anticipate that we will be seeing it some time this year. We’re going to go on a very aggressive campaign and, of course, we want to make sure we dot our ‘i’s’ and cross our ‘t’s’ to make sure that we get it right.” Mr Bell said there were numerous government ministers from around the region who were “very interested” in how The Bahamas rolls out a livable wage, Mr Bell said, adding: “It is important that we get it right, because the entire Caribbean is watching us.”

Soaring inflation has been factored into the proposed livable wage, and Mr Bell added: “Everything is fluid right now. So even by the time it is introduced, it may very well be that it has to be changed. But again, it all has to be based on what the employer and what the Government is able to afford.”

Still, rejecting the notion that there will be a “phased approach” to implementing a livable wage, Mr Bell said: “It just has to be introduced. That’s the bottom line. Now what they are able to do is another question. I don’t think it can be phased.

“Once the National Tripartite Council presented to me the report, and once the Cabinet considers it, there will be widespread dialogue with the private sector and it will be across the board. It won’t just be for government workers; it will be for everyone. So therefore we have to consult with the private sector, the employers everywhere, and even the persons who are self -employed. So there is going to be widespread dialogue.”

The authors of a recent University of the Bahamas (UoB) study found New Providence’s living wage was almost triple the existing $210 weekly minimum wage. The UoB study, dated September 30, 2020, and authored by Lesvie Archer, Olivia Saunders, Bridget Hogg, Vijaya Permual and Brittney Johnson, concluded that a living wage in New Providence and Grand Bahama is $2,625 and $3,550 per month respectively.

“Our gross living wage estimate for New Providence is 26 percent lower than the Grand Bahama living wage estimate, nearly 200 percent higher than the national minimum wage, 127 percent higher than 2013 poverty line and nearly 75 percent higher than the minimum wage hike proposed by a local union,” they wrote.

“Our living wage estimate for Grand Bahama is nearly 300 percent higher than the living wage, 200 percent higher than the 2013 poverty line and 140 percent higher than the minimum wage hike proposed by a local union.” The Bahamas’ private sector minimum wage, last increased following VAT’s introduction in 2015, is currently $210 a week.

Mr Bell, meanwhile, said: “I can say there has been a significant decline in the number of persons seeking unemployment benefits, so that in itself is indicative of the number of persons who are now going back to work.”

As for the possibility of a strike by the Public Managers Union, which represents middle managers at the National Insurance Board (NIB), the minister added: “There was a vote and the vote was 155 in favour of a strike and 15 said ‘no’. And so, from all indications, the next stage will be for a certificate to be issued.

“Of course, as you would appreciate, if they do strike the matter can be referred to the Industrial Tribunal. But nonetheless I am pleased again to indicate that I have spoken with minister Myles Laroda [minister with responsibility for National Insurance] and also with the union, and from all indications they are at the table and we are hoping that they are able to amicably resolve that matter and avoid a strike.”