Minimum wages going up January
THE National Minimum Wage Advisory Commission has recommended a 10 per cent increase in the national minimum wage, effective in January, increasing the weekly rate from the current $2,400 to $2,640.
But, there is speculation that, at the end of the process, which includes ratification by Parliament the figure could rise as high as $3,000.
The Jamaica Confederation of Trade Unions’ (JCTU) representative on the commission, Hopeton Caven, is not in support of the recommendation and wants a 25 per cent increase, instead, which would push up the wage to $3,000.
“I have taken that position because the increase last year has been completely eroded and, furthermore, when the MOU expires next year these people won’t have anybody to go to for an increase,” Caven told the Observer Monday.
“I hope they Cabinet) will accept it, because it is not just domestic helpers who benefit from the national minimum wage, there are thousands of other workers who depend on it,” said Cavan.
But, while the trade unions want the larger increase, there is also a strong case to stick with the commission’s recommendations as the Planning Institute of Jamaica (PIOJ), one of the most influential government agencies in the process, had recommended a 3.1 per cent increase and the Jamaica Employers Federation (JEF) had suggested a six to eight per cent increase in order to maintain current levels and to protect jobs.
Meanwhile, a proposal from several pensioners, including members of the Senior Citizens Club of Clarendon, for basic pension rates to be linked to increases in the minimum wage has remained unresolved. The Ministry of Labour and Social Security is currently looking at the proposal.
The commission has also recommended an increase of approximately 11 per cent in the rates paid to private security guards, which would increase their single time rate from $90 to $100 per hour, and increase their hourly laundry rate from $18 to $20. However, no increases were recommended in terms of their firearm and dog handler’s premium allowances.
The previous increases were predicated on the 13.1 per cent inflation rate between January and November. There was no indication of the basis for the new recommendations.
A 20 per cent increase was implemented in mid-January this year by the labour ministry, moving the figure from $2,000 to $2,400 per week. The hourly rate for the security guards moved from $80 to $90.
But, the threat by Labour Minister Horace Dalley, that his ministry would be seeking an amendment to the relevant legislation this year to ensure that a more punitive schedule of sanctions are introduced for non-compliance with the new minimum rates, was not carried out.