Published by Annelia Nixon, Tribune News, October 3rd, 2024
The Bahamas Chamber of Commerce and Employers’ Confederation expressed its “strong objection” to talks of another minimum wage increase which Peter Goudie, a representative of the National Tripartite Council believes should be tied to the prevailing Bahamian inflation rate.
“The BCCEC notes the resurfaced talks of another minimum wage increase and proffer our strong objection to the same on behalf of our members,” Leo V Rolle, CEO of BCCEC, told Tribune Business.
The BCCEC argued that many businesses are still grappling with other factors including “ever increasing costs of doing business with a paradoxical decline in the ease of doing business in our country”.
Mr Rolle added that a minimum wage increase can make it difficult for small and micro businesses to succeed and “operate in an environment that is not conducive to growth and stability.” He noted that some establishments are still coping with the last minimum wage increase.
Mr. Rolle pointed to a few other components businesses are facing including the recent NIB rate increase and the possibility of more increases to follow. To the list he added increased import duties and fees and increased shipping costs, which if the current US dock workers strike is prolonged, will mean even higher fees. Mr Rolle mentioned increased energy costs as well as an increase in business licence fees “and the requirement to pay provisional fees in addition to last year’s fees with no prior notice”. Lastly, he spoke to the recent increase in fuel costs which is tied to the margin increase implemented for the profit of fuel retailers on October 1.
“When you consider these challenges, among others like skilled labour shortages, inflation and an adverse switch to the VAT offsetting practice, which impacts cash flow, you get an environment which becomes far more challenging for businesses,” Mr Rolle said. “There is really only so much adversity many of our businesses can endure before some owners decide enough is enough and opt to close up shop.
“The BCCEC believes wholeheartedly that this is not the right time for even the discussion of another minimum wage increase, less than two years after the last increase, as businesses are unable to contend with this given the myriad of challenges they are already facing.”
#Mr Goudie, who holds an opposite opinion, said tying minimum wage increases to the inflation rate would allow for more ease for employers.
“I think it would be a good idea in that it would be a regular annual increase, and employers would not get hit with a big increase every two to three years. My view is that would just make sense to have an annual review linked to the CPI. I fully agree with that. That’s my personal opinion. That would be easier on everybody to know each year what that is going to be rather than doing it every two to three years.”
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