The Tribune

• TUC chief says ‘a must’ and ‘top agenda item’

• But won’t jump the gun’ on reviving economy

• Chamber official: ‘Don’t put business under’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A trade union leader’s call for livable wage talks to begin by 2025 was yesterday met with scepticism by private sector representatives who argued that such a move will “only put businesses further under”.

Obie Ferguson KC, the Trades Union Congress (TUC) president, told Tribune Business that waiting one-and-a-half to two years to begin such negotiations would enable the economy to “stabilise” and allow employment to further recover from the devastation inflicted by the COVID-19 pandemic.

Describing a livable wage for all Bahamian workers as “a must”, he added that the issue was “the number one item on our agenda” following the 24 percent increase in the minimum wage that took effect from New Year’s Day 2023.

However, Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division head, voiced doubts as to whether there will ever be “a right time” to implement a living wage due to the massive payroll cost increase it will impose on most businesses.

He told this newspaper that much work remains to be done to define what “a livable wage” actually means, noting that the International Labour Organisation (ILO) has only just begun to study the issue. And, with many companies still struggling to rebound from COVID and Hurricane Dorian, Mr Goudie argued that The Bahamas must instead prioritise “fixing business” and allow the private sector “to live again”.

The Government, in confirming the latest minimum wage increase, made no secret that it views the move as a stepping stone towards discussions on establishing a so-called livable wage for all Bahamian workers so that families can enjoy a relatively comfortable standard of living.

A University of The Bahamas (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 for a family of four is $2,625 and $3,550 per month respectively.

However, Mr Ferguson described these figures to Tribune Business as “a guide”, implying that they represent a starting point for talks between the Government, trade unions, employers and other stakeholders on the livable wage concept and what the numbers should actually be.

“I think we want to give the economy a little bit more time to stabilise the situation, and once that is done the Government will be receptive to having dialogue with the social partners to see how best we can do it,” the TUC president replied, when asked when he would like livable wage negotiations to begin.

“We want to do it in collaboration with the social partners. The economy is moving in the right direction. The Prime Minister and his government are doing what needs to be done to get the economy up and going. I’m certain that once we decide to begin that process the social partners, the employers, will find it more reasonable to talk about a living wage. A living wage is something we want. It’s a must. I can assure you that is the number one item on our agenda.”

Prime Minister Philip Davis KC has frequently talked about “economic dignity” as a concept driving his administration’s labour and economic policy agenda. Although not fully defined publicly, it seems to imply equity, fairness and desire to ensure all Bahamians enjoy a reasonable standard of living, and thus links directly to the so-called livable wage.

As to the timeline for when talks should begin, Mr Ferguson told this newspaper: “The economy was not functioning for at least two years, and we have to look at getting as many people as possible re-employed. These are factors that have some influence over when we will begin.

“I would certainly say we need about a year, year-and-a-half, maybe two years to make a proper assessment as to what the livable wage should be. The University of The Bahamas gave us some figures, which are more of a guide in my opinion, but we will meet with the employers, meet with the Government, all the social partners, and try and come up with something that truly represents a livable wage.

“It will give us time to make a proper assessment in my view. We don’t want to jump the gun because the economy is doing well now. We want to get the economy stabilised and look at the numbers. We want to do it in collaboration with the employers.”

However, Mr Goudie argued that the concept of a ‘livable wage’ needs to be properly defined before any such negotiations take place. “I don’t know that there’s a good time, and don’t know when that should be,” he said. “Nobody really knows, and the ILO is studying the minimum wage and they will be giving us information on it.

“I don’t know that there is a right time because we just increased the minimum wage. The minimum wage here in The Bahamas is the highest in the Caribbean. People can talk all they want about a livable wage but until we get some sort of definition, some type of guidelines, I don’t know if there’s a good time to start these discussions.”

Some observers might argue that The Bahamas’ minimum wage, which was increased by $50 per week from $210 to $260, has to be the Caribbean’s highest because of this nation’s relatively high living costs. However, Mr Goudie said of a livable wage: “It’s not viewed as very beneficial to the business community trying to recover from COVID and Hurricane Dorian. Abaco and Grand Bahama are still reeling from that, let alone the pandemic.

“Businesses have to just get back on their feet again. Give these guys a chance to live. All you have to do is look at Bay Street. Everything is closed, everything is dirty, everything is gungy. We need to get businesses back, not put them further under. That’s the view of most people. We’ve got to fix our country first, fix business, before we start talking about income.

“We’re in trouble. My view is there’s no good time right now to start discussions about a livable wage because businesses need to become profitable again and make up for what they lost in the pandemic and hurricane. It just doesn’t make sense. How can you increase costs when you are trying to recover from the effects of a recession.”