Planned minimum wage increase not an election gimmick - JLP

 

The governing Jamaica Labour Party (JLP) is pushing back against the claim that its proposed minimum wage hike is nothing more than electioneering, insisting that its plan was not a campaign gimmick.

 

JLP leader Dr. Andrew Holness announced on Sunday night that if re-elected, his government will gradually increase the national minimum wage from $16,000 to $32,000 for a 40-hour work week. 

 

Dr. Holness said the first increase to $18,500 would take effect in the first budget, with further hikes rolled out in the years ahead. 

 

JLP campaign chairman Dr. Christopher Tufton explains that while the party did not detail the specifics of the minimum wage hike in its manifesto, that does not indicate that the move was an irrational campaign ploy ahead of the September 3 election.

 

"Not everything there has specifics. The decision around doubling is a projection and its a projection based on where we are coming from, what we have achieved over that period of time and where we think we are going in the next dispensation. We have been able to raise minimum wage by 158% having stabilised the economy and are at that point. So the Prime Minister articulated some specifics that he would have already had in his mind and certainly through discussion. But we didn't want to publish a 500-page manifesto," he reasoned.

 

He contended that the manifesto is grounded in significant research and consultation. 

 

"In developing the manifesto as was said earlier, there is broad consultation. Remember now, this is a political organisation that is developing a list of policies for the future, and while official agencies provide support based on what is in the public space, we don't really engage civil servants to determine what the political organisation is going to do going forward. We use data that is available in the public domain, we have our own advisors who are professionals and we consult with groups to the extent that they are interested to be consulted. But you have to be careful who you get into manifesto building involving ministries and ministry personnel for fear that you are accused of politicising these organisations," said Dr. Tufton, who was speaking at a press conference on Monday afternoon. 

 

The People's National Party (PNP) has dismissed the JLP's minimum wage increase announcement as an attempt to salvage a dying campaign. 

 

Speaking Monday morning at the party's final press conference before the September 3 general election, the PNP said the minimum wage should not be politicised and suggested the plan was a last-ditch effort to win over voters since it had not previously been mentioned in any of the three political debates.

 

"The Minister of Information or the former Minister of Information was also in that debate. She mentioned nothing. But more importantly, Andrew Holness was also at that debate and mentioned nothing about any changes to the minimum wage. As a matter of fact, he was complaining throughout the debate and very unassertive and very ambiguous on any issue of policy he tried to cover," PNP campaign spokesperson Raymond Pryce argued, adding that Jamaicans are wiser and the PNP is confident in their wisdom.

 

He noted that the PNP in its election manifesto has committed to implementing a liveable wage and will pursue this effort through consultation and consensus. 

 

In addition, campaign spokesperson Cleveland Tomlinson argued that adjusting the minimum wage requires a careful balancing act as it has implications.

 

"An increase in the minimum wage must be consistent with the movement of inflation because inflation erodes the purchasing power. So as inflation moves throughout the economy over time, we think that it necessities an adjustment in minimum wage. So we will be guided by data, we will be guided by the inflation outlook, we will be guided by consensus among stakeholders. We will not be guided by an attempt to win an election because of political desperation. Because the Prime Minister knows that his time is coming to an end."

 

Mr. Tomlinson added that the PNP plans to establish a livable wage commission to lead the process. He pointed to initiatives in the PNP's manifesto such as increasing their personal income tax to a $3.5 million, removing tax on overtime, first in the family education grants and transportation assistance for students as plans by his party to help ease burdens being faced by Jamaicans. 

 

When pressed for a figure on where the PNP would want the minimum wage to be, Mr. Tomlinson said the party would be guided by inflation and consultation. He argued that the PNP wants to see Jamaicans live with dignity and to offer opportunities to experience upward mobility. 

 

He argued that while the government has done the work to make the macroeconomy stable, the lived experiences of Jamaicans are different and they need money back in their pockets.