Private sector groups in favour of annual minimum wage increases

By Kimone Witter    

 

Support is growing for annual increases in the national minimum wage.

 

The latest suggestion has come from Private Sector Organisation of Jamaica (PSOJ) President Metry Seaga, with support from President of the Micro Small and Medium Enterprises (MSME) Alliance Donovan Wignal.

 

Prime Minister Andrew Holness last week announced that the minimum wage per 40-hour work week would move from $13,000 to $15,000 as of June 1.

 

There have been yearly increases in the national minimum wage since 2022.

 

Major Richard Reese, President of the Jamaica Society for Industrial Security (JSIS), said he would support an annual increase of the minimum wage instead of a significant adjustment at once, which is hard on employers.

 

Speaking Monday on the Morning Agenda on Power 106, PSOJ President Metry Seaga said employers have to do a balancing act to determine whether they can maintain the staff complement, and keep prices of services stable. 

 

"The reason that that has happened is because the adjustments have been taking too long to come. And what I'd like to propose...is that what the government do is start to look at a yearly increase in the minimum wage based on inflation and some other factors. Have a sit down, have a way of measuring what the minimum wage increase should be, and we have that done each and every year as is required," he suggested, noting that while many companies give a cost of living increase every year, "the government's minimum wage has never kept up with it". 

 

Mr. Seaga said the government should have consulted with the various stakeholders before announcing the upward adjustment in the national minimum wage. 

 

"It would have been better for the government to have sat with us and said, this is what we're trying to do, so that we could have thrown out the suggestions like I just made and that could have been announced at the same time if it was accepted. So, consultation is always good and it's something that we continue to press the government for," he said, although admitting both the government and opposition have been "much more consultative than they were before". 

 

Meanwhile, MSME Alliance President Donovan Wignal said the review of wages based on the movements in inflation should become a practice for employers.

 

Mr. Wignal also agreed that yearly increases in the national minimum wage should be pursued. 

 

"It's something that has been in the space for a little while now. As prices go up, as the cost of living goes up, it is more than reasonable to look at the wages that you're paying your staff, whether public or private sector, to bring them to a point where at the very least they can afford to, you know, to keep apace with the prices in the supermarket." 

 

He said this pain point was highlighted in the months leading up to the recent local government election.