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Government to push for private sector minimum wage increase

ECONOMIC Affairs Minister Michael Halkitis.

ECONOMIC Affairs Minister Michael Halkitis.

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

ECONOMIC Affairs Minister Michael Halkitis  said government intends to push for a minimum wage increase in the private sector in the wake of rising costs in the country.

Speaking to reporters yesterday, Mr Halkitis said the National Tripartite Council, the body responsible for all labour-related matters in The Bahamas, and other stakeholders have already met to discuss the matter.

He also revealed that a presentation on the proposed wage increase for workers in the private sector is expected to be made to the Davis administration soon.

“It is the intention for it to go into the private sector as well,” he said during a press briefing at the Office of the Prime Minister yesterday.

“As you know, there is what you call the (National) Tripartite Council, which is a collaboration between the government (and) the labour segment represented by the labour unions and as well as the employers who are represented by the Bahamas Employment Federation and so what they do is they collaborate and they get together and then they make suggestions to the government on what the quantum should be and what the timing should be.

 “I understand that they are very close to making that presentation to the government. So, yes, it’s a long way to say yes. It is the intention…”

 He said the decision will “include collaboration and the tripartite council as well so we expect that to follow shortly after, or ideally at the same time.”

 Mr Halkitis spoke the day after Prime Minister Phillip “Brave” Davis announced proposed minimum wage increases for workers in the public sector as part of his administration’s efforts to provide relief to hurting Bahamians.

 While delivering his budget communication in the House of Assembly Wednesday, Mr Davis said the government had submitted a proposal to Bahamas Public Service Union to increase minimum wage in the public sector, with incremental increases starting in July.

 Yesterday, Mr Halkitis told reporters the government is considering raising the minimum wage from $210 to $250 a week.

 He said the country’s current minimum wage is not sustainable due to the high cost of living.

 He also noted that the private sector is not opposed to the concept of a minimum wage increase but, rather, the timing given COVID’s impact among other factors.

 “There will always be an element that says well the time or timing,” Minister Halkitis said. “You just enunciated several things coming out of the COVID and inflation whatever. The fact of the matter is, for some people it will never be the right time to do it, but again, the other factor of the matter is the cost of living is going up and we need to bring that relief.

 “So, we hear that but the fact of the matter is, if it wasn’t COVID unfortunately some people will always find a reason not to do it. But, frankly at the levels the minimum wage is at now, people cannot live so it’s something that has to happen.”

Increasing the minimum wage to $250 per week was one of the many commitments made by the Progressive Liberal Party in its election campaign blueprint.

 It is not clear how many public workers are currently being paid minimum wage by the government, but it was said to be “very few.”

 According to Minister Halkitis, phasing the country’s minimum wage into a liveable wage remains a key priority for the government.

 “Liveable wage is a part of the discussion,” he added. “ As you might be aware, there was a study done and I think it was released either last year or early this year speaking about minimum wage both in New Providence and Grand Bahama and I think the number was north of $600 I believe so that is a commitment to move towards. That is something that will happen gradually.”

Comments

tribanon 2 years, 7 months ago

Typical Halkitis hot air.

What good does it do pushing for an increase in private sector minimum wage when our incompetent elected officials are clueless about the much needed effective policies that must be put in place in order to create decent paying private sector jobs in the first place?

And we have thousands of D - educated school graduates each year that many private sector employers consider illiterate and unemployable yet Halkitis believes they should be paid more. Go figure!

Is it any small wonder why the head count of our already grossly over-bloated, very costly and unproductive civil workforce continues to exponentially grow each year?!!

DDK 2 years, 7 months ago

He does seem clueless.....

One 2 years, 7 months ago

$5.25/hr to $6.25/hr a 19% increase. Note 24% inflation since 2015 (the last minimum wage increase). Therefore when adjusting for inflation this increase will still result in less purchasing power than 2015 minimum wage.

Minimum wage - ensures that a country's working population does not fall below the poverty line

Poverty line - minimum level of income deemed adequate in a particular country

ThisIsOurs 2 years, 7 months ago

Easy. cut business licensee fees.Dramatically.

sheeprunner12 2 years, 6 months ago

This will not end well for 242 or the PLP

What will Halkitis do when ppl get laid off, businesses close or begin using tech to replace labour?

Halkitis is on a slippery slope with the business community

Socrates 2 years, 6 months ago

reality is that slowly but surely more bahamians will slide from middle class to lower class as cost of livng continues to skyrocket... we dont have the quantity of high paying quality jobs to offset the D average generation and low paying tourism jobs despite the few $100k per annum housekeeping and life guard jobs.

stillwaters 2 years, 6 months ago

Why is nobody pushing these minimum wage earners to go and upgrade their educational status and upgrade their skills level in order to get a better job and higher salary. Just give them more money as a reward?.........for having no viable skills........and below par education.....and a monumental sense of entitlement.

sheeprunner12 2 years, 6 months ago

Agree. In most developed countries, minimum wage does not apply to mature adult workers, but to first time young workers.

But a 40 year old, has had a long time to upgrade his/herself in order to improve beyond minimum wage.

Something is wrong in our society if a 40 year old is still at minimum wage status

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