News Report: Chamber ‘cautious’ over new minimum wage talk

Published By Fay Simmons, Tribune Business , July 31st, 2024

THE Chamber of Commerce’s chief executive yesterday said the private sector already faces “a myriad of challenges” apart from having to contend with a new minimum wage increase.

Dr Leo Rolle, responding to indications by Pia Glover-Rolle, minister of labour and the public service, that the Davis administration wants to increase the minimum wage again, said the Chamber has been offered a “seat at the table” to discuss an issue that could “trigger” an increase in prices to “offset” a rise in operations costs.

He said: “In light of the minister’s statements yesterday on a potential increase to minimum wage, we note that whenever there is an impact to the bottom line of a business it will ultimately be felt through inflation which triggers an increase in the prices of goods and services to respond to and offset the increased cost of doing business.

“The business community contends with a myriad of challenges that impact the ease and cost of doing business, which translates to a loss of profitability, so we remain cautious on any proposed revisions that result in the same.”

Dr Rolle said the Chamber will be releasing a survey to gain feedback from its members on how another minimum wage increase so soon would impact their businesses and relay those concerns to the Government.

He added: “The Chamber prides itself on consultation with its constituents and will be circulating a survey to our members to garner their input on how they have fared since the most recent increase, coupled with their concerns and commentary on the newly- proposed increase as suggested by the minister.

“It is only then that we can provide an informed position from the business community. We also look forward to the Government sharing any research on the impact of such an increase on the overall economy as the discussion continues.”

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union president, said his members would “welcome” any additional minimum wage increase to combat inflation and improve their standard of living. He added it has become increasingly hard for Bahamians to “keep pace” with rising inflation and the increase would aid in moving citizens above the poverty line.

“The inflation rate rises so quickly it’s hard to keep pace with it. So anything that will be beneficial to the membership, to the wider body, is welcome,” Mr Woods said.

“Our members are the people who go to the food stores, the gas stations, the hardware stores, and if we can try to lift the standard of living for everyone across the board to wipe out the low income and try to move more people into the middle class, that’d be vitally important. It’s important to try to lift people above the poverty level, across the board and throughout the country.”

Mr Woods, recognising that increasing the minimum wage would add to an employer’s operation costs, of which labour is the biggest component, said in putting all “heads together” The Bahamas can move towards a wage rate that both employers and employees can be comfortable with.

He added that the private sector would benefit from concessions to help “ease the burden” of an increased minimum wage rate and prevent the inflation rate rising further.

Mr Woods said: “Of course, we know the employers are going to do what they have to do in terms of combating it, standing up against it because at the end of the day that’s the way they make sure that they are able to curb their expenditure. We recognise in the same tone that labour is the biggest component of any organisation.

“I know it’s not going to be a one-sided thing. Of course, I know that the Chamber of Commerce, who was also the representative for the employers, will also have to be involved, but I believe if we could put our heads together we could move to a more live- able wage.

“I’m certain that the Government could do something to help the employers to ease the burden. Whether it’s by way of more concessions, tax cuts or rebates, once we are able to come together as a unit we can find ways to make it balanced for everyone.”

Mrs Glover-Rolle said unions will be included in the discussions about increasing minimum wage, adding: “You have my commitment to that. Not only will you be included, but you will be informed because I will make sure that it’s not said that our stakeholders were not aware of our plans and were allowed to mistakenly believe that this increase is not a high priority for this government.”

The announcement that an increase in minimum wage is imminent is a stark contrast to the stance the Davis administration took last year. Last November, Obie Ferguson, the Trades Union Congress (TUC) president, announced his union’s plans to lobby for another minimum wage increase.

Mr Ferguson said the union wanted at least $350 per week and was prepared to “take a strike vote” as a means to pressure government and private employers over outstanding labour issues.

Mrs Glover Rolle, at the time, said the Government would not support another increase to the country’s minimum wage so soon after the last wage hike was introduced and believes calls from union leaders over the issue are “a little reckless”.

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