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Some St Ann employers want minimum wage hiked
Business owners in St Ann sharing their views on how the minimum wage affects their enterprises. (Photo: Akera Davis)
News, North & East, Regional
Akera Davis Observer Writer  
July 29, 2022

Some St Ann employers want minimum wage hiked

OCHO RIOS, St Ann — With few takers for minimum wage jobs, some recruitment managers in St Ann have been paying more than the $9,000 a week recommended for the average worker but are still finding it hard to attract and retain staff. They have laid the blame for the labour shortage squarely at the feet of salaries that are not attractive enough.

“The areas where we normally pay minimum wage are vacant because it is extremely hard to get persons to work. We have seen where persons are coming in for training for one day or for two weeks and then they are gone, because they are saying the pay is not enough,” said human resource manager at Island Kaya Limited, Natesha Smith Reid.

She was among those who attended national minimum wage consultations held at Almond Tree Restaurant in Ocho Rios on Wednesday.

The Government this year increased the minimum wage from $7,000, for average workers, up to $9,000. Some categories, such as security guards, are paid more but still below the $12,000 some had suggested as the new threshold.

On Wednesday, Smith Reid said her organisation had exhausted their usual channels of sourcing employees.

“We have placed ads on social media, in the paper… but people are still not interested because they are simply not coming out to work for this money. It cannot pay their bills; is just for transportation and lunch so it has been a struggle on our part. Things really need to change in terms of the minimum wage. It should be raised to $15,000, which is survivable,” she said.

“We are currently paying a little bit above the minimum wage but it still not enough. If it is raised then we can pay it and a little over just the same and it will work out better for these persons,” she added.

Others spoke of the struggles their staff face.

“I realise that my employees have it hard to survive. Some of them beg a lot as they are not able to buy lunch, and I’m a bit concerned for them. Some of our workers have children to go to the nursery, to school, and it cost a lot. The minimum wage shouldn’t be nothing under $12,000; even then it is hard to survive with that,” said Jennifer Chambers, human resource generalist at Associated Manufactures Limited.

Human resource manager at Dolphin Cove, Taneka Montague added that they pay above the minimum wage because they realise it is simply not enough.

“We don’t pay nothing near the minimum wage because we take into consideration transportation, lunch, groceries, utilities etc. It is hard to live on $9,000 for the week. When I pick up three things in the supermarket I fret because I might not be able to pay for it — and I know it’s the same for my workers,” she said, suggesting that $12,000 would be more reasonable.

Earlier this year, Prime Minister Andrew Holness set off a firestorm of debate when he suggested that the country needs to import workers as there is a shortage of labour. Critics argued that the move would be unwise as there are many unemployed Jamaicans. The debate has raged, with some pointing out that not all of those outside of the labour force are actively seeking employment, some preferring instead to engage in less-than-legal endeavours.

Others noted that the unemployed may lack the specific skills needed. That line of argument was put forward, during Wednesday’s discussions, by chairman of the Minimum Wage Advisory Commission, Dr Ronald Robinson.

“I think there are reasons why persons have opted out of the formal workforce. I read an article which said in 2013 it was estimated that 85 per cent of college students in Jamaica have migrated. Statin also did a report in 2020 that said 68 per cent of men in the formal labour force had zero qualifications and 48 per cent of women also had zero,” he said.

“So there are some persons who have no skills to bargain around and when we look at these numbers, no wonder we are talking about a shortage because we are looking at certain skill-specific jobs and persons don’t have any formal academic training or experience to get the jobs,” he added.

The lack of skilled labour has forced small business operator, Presley Irons of Irons Mechanical Services to pay his employees above the minimum rate.

“It is not easy to get someone to work now for $9,000 so we have to be looking to pay people more. Even the domestic helpers won’t accept nothing less than $4,000 a day,” he said.

“For persons who are paying above the minimum wage, Government should look to give us some form of tax return or so because for us to be paying out $100,000 every month to employees is not easy. Right now it shouldn’t be nothing under $15,000 for the minimum wage,” he suggested.

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