THE National Minimum Wage will go up by 14 per cent as of next Monday, increasing rates for the least paid workers from $70 to $80 per hour and from $2,800 to $3,200 per week.

Minimum rates for industrial security guards will also be increased by 13.52 per cent, lifting their hourly rates from $103.50 to $117.50, and their weekly rates from $4,140 to $4,700 per 40-hour work week.

New minimum allowances have also been set for the security guards at $22 per hour for laundry allowance, $25 per hour for firearm licences and $17 per hour for dog handlers’ allowance. The guards’ life insurance will be increased from $1.2 million to $1.5 million, with double indemnity protection during and outside hours of work.

The new rates were announced by Minister of Labour and Social Security Derrick Kellier in the House of Representatives yesterday.

Kellier told the House that the minimum wage was only one of a package of policies, programmes and initiatives to protect workers and promote labour productivity, and should not substitute for collective bargaining nor block workers from trade union representation.

But last night, Ruddy Spencer, president of the Bustamante Industrial Trade Union (BITU) and the Opposition spokesman on labour, contended that the 14 per cent increase would not improve the purchasing power of minimum wage earners.

The increase, he said, would only be able to purchase the same US$46 worth of goods that the previous minimum wage did last year.

“It begs the question, whether or not the minimum wage earner today is in any better position, having gotten a 14 per cent increase. My position is that the worker with this increase is in a worse position,” said Spencer.

Spencer said, too, that despite recent amendments to the Labour Relations and Industrial Disputes Act (LRIDA), security guards were still being blocked from union representation, while the minimum rates set by the ministry remained the benchmark by which they are paid.

The Opposition spokesman suggested a mid-year review of the new rates following tripartite discussions involving the Government, the trade unions and employers.

“I am not excited about it (new minimum wage), but given the fact that it is already approved by Cabinet, I am recommending that this be reviewed at mid-year to ensure that those poor, unfortunate workers will be placed in a better position by the middle of the year, especially coming unto the time when children ought to be going back to school,” he said.

Kellier insisted, however, that the Government could not run the risk of setting the minimum levels so high that it would cost those very people their jobs.

“Anyone advocating such a situation is not thinking about the interest of the workers. Anyone who did that would not be acting in the best interest of the workers,” he said.

He said that the National Minimum Wage Advisory Commission, in its deliberations, took into account the new public sector Memorandum of Understanding (MOU2), as well as the price of crude oil and its effect on utility rates and the general cost of living and inflation for the previous year.

He said that the Government could not accept the proposal put to the commission by the National Workers Union (NWU), to resume separate minimum wage categories for household and other workers. He said that the Government maintained that this would create unnecessary bureaucracy and would be impractical.

However, he said that he was open to taking on board the suggestion from Spencer for tripartite discussions on what could be considered a “livable” wage.

He also noted that the proposals put to the commission were for increases ranging from nine per cent to 25 per cent.

The minister referred to employers’ concern about the relatively short time between the announcement of the new rates and the date of implementation. He said that his ministry would seek to assist the commission in completing its annual reviews earlier.

The commission, which comprises chairman Norma Linton, Hopeton Caven and Silvera Castro, made its report to the minister in December. The minimum wage was increased by 17 per cent last year.