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News Report: Unions, business back wage-setting committee

Published by Annelia Nixon, Tribune News, Monday, December 9th, 2024


Both trade unions and the business community have backed proposals to establish a ‘wage setting committee’ that will study issues such as the livable and minimum wages.


The Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) joined the Trades Union Congress (TUC) in supporting the National Tripartite Council’s move to form such a committee. The former said it welcomes “the opportunity for Chamber representation to ensure intricate involvement in an area with great implications for the business community”.


“We are pleased with the proposed establishment of the wage setting committee, and welcome the opportunity for Chamber representation to ensure intricate involvement in an area with great implications for the business community,” Chamber chief executive, Leo Rolle, said.


“Earlier this year, we rejected the notion of an increase in the minimum wage, and our position has not changed for several reasons. Notably, the cost and ease of doing business in The Bahamas is simply too high and too cumbersome to place added pressures on the backs of already-struggling businesses.”


Mr Rolle said factors that negatively impact the ease of doing business include the recent increase in the National Insurance Board (NIB) contribution rate, plus existing Customs duties on imported goods as well as shipping and logistics costs, plus energy costs.


“While we note that these aspects are the prime catalysts for inflation that perhaps fuels the Government’s assertion toward livable wages, which we consider wages that directly correlate to the cost of living, we proffer that the same must be explored in tandem with empirical data, feasibility studies and contextual relevance to the state of affairs within the business community today,” Mr Rolle said.


“Apart from the proper studies to determine this, and then discussions on the way forward, we must also take into account requisite skills and employee capacity, productivity and business viability, and profitability, which must all accompany the notion of livable wages.


“Further, there must be serious consideration to the aspects that impact the cost and ease of doing business, and the Government must curate an environment that is conducive for businesses to first survive and then thrive before such a consideration is moved,” Mr Rolle added.


“This could be achieved by concessions, relaxation of cumbersome processes, incentivising local production of goods and services, and consultation rather than confrontation on key changes or introduction of new requirements across agencies.”


The Chamber is also calling for the launch of the National Apprenticeship Programme once the Board to govern the scheme is appointed, and the Government approves a budget. It is also seeking the continued implementation of the Decent Work Country Programme, the establishment of a National Productivity Council with an approved budget, and the implementation of the Health & Safety Work Act.


Meanwhile, Obie Ferguson, the TUC president, said the wage setting committee’s purpose is to “formulate all of the components that are required to properly assess a living wage”.


“In other words, we have to look at the cost of living, we have to look at the availability of income, disposable income,” he added. “We have to do all of the normal economic issues and factors that will influence how we determine a living wage for The Bahamas. So that is why we are part of the committee, and the other unions are also part of the committee.


“So we can take into consideration not just one group of people, but we are going to take into consideration all of the workers in The Bahamas. So when we say the living wage should be $350 or living wage should be $1,000 for a family of four, we want that to be statistically a fact.


“So we have to look at all of the economic situation and come up with that kind of recommendation. So that’s where the committee is at this very formative stage at this point.” Mr Ferguson said the committee is in its “early stage” and the National Tripartite Council will involve various organisations who can contribute through the collection of information.


“It’s just that they’re trying to figure out a way how they’re going to go about collecting this information, and they’re going to do a whole bunch of things to make sure it’s all-inclusive. And so that is what’s happening,” Mr Ferguson said.


“But there is a working committee made up of the unionists and we are required to comply with the requirements of ILO (International Labour Organisation) because ILO is participating in the process to some degree.


“The idea is to collect information from the various organisations because it’s going to impact the entire community. So the community has to be a part of it. So they’re going to be sending out information to various organisations to collate the information. It’s at a very early stage and we have to keep you informed.”


With the ILO playing a pivotal role in the wage-setting committee’s mission, Mr Ferguson said: “We are preparing preliminary work for the ILO who will be participating in this process. ILO has a very diverse, very comprehensive overview of these type of things. So the ILO will be a part of the process and this will apply to all of the unions working towards establishing the pre-requisite for the living wage committee.”





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