Senior Multimedia Reporter
peter.christopher@guardian.co.tt
Labour Minister Stephen Mc Clashie confirmed yesterday that the Minimum Wages Board had made recommendations to adjust the minimum wage before the call was made by Joint Trade Union Movement president, Ancel Roget on Labour Day to raise the minimum wage from $17.50 to $30.
In a brief phone interview yesterday, Mc Clashie said, “They would have sent me a report with recommendations on the national minimum wage, which I am currently reviewing. Thereafter we will look to Cabinet to determine whether we can make an adjustment and what that adjustment would be.”
Mc Clashie said the process to adjust the minimum wage required careful deliberation as it would have to carefully assess the wider economic impacts of the change.
“One of the many issues that come up is minimum wage. It’s quite a complex item and we have to consider its impact on various segments of the national economy because once you put a new minimum wage in place, it means that many governmental agencies will now be saddled with that rate that it would have to pay as recurrent expenditure going down the road,” said Mc Clashie.
He also echoed concerns raised earlier this week by economist Marlene Attzs, who noted that the increase in the wage may lead to the price of goods rising as well.
“We know that in Trinidad depending on the rate, people might just treat it as a pass-through to raise their prices to accommodate the rate and other inflationary possibilities. I am reviewing it for the moment. I have not sent it to Cabinet as yet but I will within a month or so and then Cabinet will make the final determination based on its impact on where we are at or if we can move it at all.”
In 2021, the Labour Ministry invited members of the public to a national consultation on the minimum wage, in accordance with the Minimum Wages Act Chapter 88:04.
The wage was last adjusted, to $17.50, in December 2019, four years after it was raised to $15 in 2015.
In August 2022, the Ministry of Labour published a tender notice inviting proposals for consultancy services for the conduct of research on the impact of the minimum wage on the economy.
The American Chamber of Commerce Chief Executive Officer Nirad Tewarie, in a statement to Guardian Media on Wednesday, also weighed in on the issue.
“AMCHAM T&T believes that everyone who works full time should have decent work and be compensated via a living wage. The exact amount of a minimum wage should be the result of frank and honest discussions about all of the factors that go in to determination of a living wage and the implications of any changes. Discussing a living wage only in the context of dollar amount, is likely to mask the need to improve national infrastructure and social services that have tangible, material financial impact on all citizens but disproportionately those who would fall into the category of minimum wage earners,” said Tewarie.
Tewarie continued, “Therefore we welcome the discussion and feel it important that it be widened to consider the desired outcomes since setting a minimum wage is a tool to achieve better standards of living for some of the most vulnerable in society as opposed to being an end in itself.”