MONTEGO BAY, St James — With only a day to go before the country votes, the debate continues within the private sector about the Jamaica Labour Party’s (JLP) proposal to increase the minimum wage.

President of Global Services Association of Jamaica (GSAJ) Wayne Sinclair on Monday suggested that while the sector currently provides a decent standard of earnings for its workers, any gradual increase in the minimum wage will add to the already high cost of doing business in Jamaica.

Meanwhile, president of the Montego Bay Chamber of Commerce and Industry (MBCC&I) Jason Russell posited that while the increase could help curb brain drain it is imperative that it is carefully managed and rolled out in stages.

Speaking during the JLP’s mass rally in Spanish Town Sunday night, party leader Prime Minister Dr Andrew Holness provided details of a plan, touched upon in the party’s manifesto, of what the JLP will do if re-elected to govern the country. He said within the first budget the minimum wage paid to employees would move “from $16,000 to $18,500, and then gradually, after that, for the next few years”. Holness reasoned that the initiative would make it more attractive for the unemployed to join the workforce, spurring economic growth for the country.

On Monday, Sinclair reacted on behalf of the human capital-heavy business process outsourcing sector.

“We don’t have an issue with people earning a good standard of living. So, that’s not an issue. But we are like any other industry that has to compete in a global environment for human resources and other costs of doing business. It is important to understand that we are already, since we’re talking about wages, much higher than some of the other geographies that we compete directly against, such as The Philippines and India,” he told the
Jamaica Observer.

“They are paying about 40 to 45 cents on the dollar for every dollar we spend on our labour. And that is in addition to the already other high costs of business, such as electricity, such as transportation, such as security costs, and other utilities,” explained the GSAJ president.

He said if the JLP’s plan is implemented the sector would need to survive by being excellent at what it does.

“Obviously, we are going to just have to ensure that we continue to deliver a high level and quality of service. So that to the extent that we cost more to our partners, they’ll be able to look past that and continue to do business with us. …This is just something that is going to add to that cost,” said Sinclair.

For his part, MBCC&I’s Russell described an increase in the minimum wage as a necessary move to soften the effects of rising prices, which would have an overall positive impact.

“The only way to combat that right now is to put a little more cash into the pockets of the people, which will resonate in society anyway. If they pay tax on it, the ripple effect will be felt. While a business might look at it from the outset that, ‘Oh, I’m now going to have to pay a lot more for my workers’, the flip side is, your workers will have more to spend which will resonate in society,” he reasoned.

“It should be a win-win, but it has to be carefully managed and rolled out in stages. I’m sure the common man on the street who is working and trying to survive on minimum wage now would be pleased to hear that there is some alleviation coming his way in the near future,” added Russell.

He conceded that an increase in the minimum wage is going to have a negative impact on some people but he is convinced it will solve an issue that has long plagued the country.

“Jamaican workers are sought-after all over the world and that’s why they seem to want to leave to get more lucrative employment. Now, if we’re able to offer that on the island, it might see those brains stay rather than drain. It’s time for us to maybe start to think about how we keep Jamaicans on the island producing at a high level and, of course, compensation is going to be at the forefront of that conversation,” Russell told the
Observer.

SINCLAIR… we don’t have an issue with people earning a good standard of living, but…