One of the promises in the People's Partnership manifesto that would have struck a chord with many voters was the pledge to begin the process of reviewing the minimum wage within the first 120 days of the party winning the May 24 general election. Elsewhere in the manifesto, the People's Partnership gives a commitment that the country's current $9 minimum wage "will be reviewed for appropriate improvement" and that the Minimum Wages Board "will be appointed without delay." Fears have been expressed that by placing one of the most accomplished trade union leaders in post-independence Caribbean history as her Labour Minister, Prime Minister Kamla Persad-Bissessar was stacking the deck in favour of workers and against employers.
As the minister in charge of the minimum wage process, Errol McLeod brings a lifetime of success in negotiating increased salaries and working conditions for workers. But as Minister of Labour, Mr McLeod's responsibility is not to advance the narrow economic and financial interests of workers alone. His responsibility is to advance the interests of the nation as a whole. While there will be occasions in which the interests of the workers coincide with the national interest, there are also likely to be occasions when the national interest leans in favour of employers. Fortunately, the law under which T&T's minimum wage will be increased facilitates a process of consultation and compromise in deciding what is the appropriate minimum wage. The Minimum Wages Act states that the Labour Minister "shall" appoint a seven-member Minimum Wages Board and that included on the board should be at least one representative of employers, at least one labour representative, and a government representative.
Fundamentally, therefore, the authors of T&T's minimum wages legislation considered that it was important that employers, labour and the government should be represented on the Minimum Wages Board and this representation should be written into the enabling legislation. By its very nature, a tripartite board is more likely to generate a compromise recommendation than a board that represents one or two interests. Secondly, the process of arriving at a minimum wage directs the tripartite board to consider a wide variety of factors, some of which would advance the cause of a large increase in the minimum wage and some factors which would militate against increases. In recommending an increase in the minimum wage, the Minimum Wages Act requires that the board "shall" consider the following factors: the general level of wages in T&T; the cost of living; contributions payable and benefits provided under the system of national insurance established by the National Insurance Act; and other economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining high levels of employment.
The legislation does not state whether the board should place more weight on issues surrounding productivity as opposed to the cost of living. It simply states that both productivity and the cost of living should be considered. Finally, the law requires the publication of a draft minimum wages order in the official Gazette and in at least one daily newspaper and gives the public a 21-day window in which to submit written objections to the recommendations in the draft order. The Act requires that objections to the recommendations of the board must be given serious consideration. The minister is required by law to refer objections to the Minimum Wages Board's recommendations back to the board and the board is required to forward its comments on the objections to the minister. The legislation opens the door to the possibility that the objections may result in additions, amendments or modifications.