The Government's legislated minimum wage of $12.50 an hour took effect from January 1. Last September, during the budget debate, Labour Minister Errol McLeod announced that the minimum wage would be raised from $9 to $12.50 an hour or $100 a day. McLeod, in a speech to the Employers' Consultative Association (ECA) in September, said that according to the Central Statistical Office (CSO), 19,103 persons earn less than $13 an hour in T&T.
However, people employed in such industries as petroleum, electricity, water, transport, storage and communication, earn more than $15 an hour. The increase in the minimum wage came after much controversy on the election campaign trail over whether there should be an increase and, if such an increase took place, what should that figure be.
Minimum Wage Board
Ida le Blanc, a member of the Minimum Wage Board and general secretary of the National Union of Domestic Employees (NUDE), told the Business Guardian now that the increase in the minimum wage has taken place, a major problem will be enforcement. She said there are more than 10,000 domestic employees who are registered with the National Insurance Board (NIB). These workers work in private homes as help and their employers usually have a problem letting labour inspectors into their homes.
One solution, she proposed, is allowing these private employers to go into the labour inspectorate to register. "Right now, the Government is busy dealing with regulating the security industry. After that, they will be focusing on regulating the domestic works industry," Le Blanc said. She also pointed to other low-end wage income-earners, like those who work in stores who were not even earning the previous minimum wage of $9 an hour. "There is the 40-hour work week and, after that, anything else is overtime. Employers also have to be willing to pay their employees overtime," she said.
On a global scale, the International Labour Organisation (ILO) will be hosting a conference in June where it will be setting standards for the working conditions of domestic employees. NUDE will also have representatives," she said. She said the Minimum Wage Board has its work cut out and it will continue working on solutions to deal with such issues as the inspectorate carrying out its functions and overtime.
The business community's views
Imtiaz Ali, former president of the San Juan Business Association, believes that although the raise in the minimum wage has taken effect, the workforce needs to raise its productivity levels and work harder.
Ali said there is a "class of people" in T&T who "refuses to work," despite higher salaries. "There are some people in this country who refuse to work. If you put them in a store to sell or in factory to make clothes, they will not produce. We need to tie wages to productivity," he said. He added that this country is producing "lazy people" and there are already some industries that are dominated by foreigners.
"The security industry is already taken over by Nigerians and Jamaicans. The gas station industry is heavily influenced by Guyanese. These people work very hard for their money. However, Trinidadians don't give that kind of hard work," he said. Ali said despite the circumstances, most employers pay over the minimum wage anyway. Daphne Bartlett, former head of the San Fernando Business Association, said that the raise in the minimum wage is good, but added that workers in T&T need to get serious, especially with an economically tough year ahead.
"We in the business community have been paying this and even more, but the real issue is productivity. A work ethic is necessary in this country. Employers will be looking for value for their money," she said.
The recession is also a factor that will impact on the labour market for 2011, she said. "There will be more supply than demand in the labour market. If workers don't have a serious attitude, then employers will be looking for other workers to hire," she said. Bartlett added that there would be "less profits" for businesses in 2011 and employers will be looking for ways to "cut costs."
"Bigger companies are downsizing and so are the smaller ones. The employers and workers must work together to be productive and to benefit the country," she said. Peter Kanhai, president of the Greater Tunapuna Chamber of Industry and Commerce, said the increase in the minimum wage will not have a "disastrous effect" on the business community, especially the smaller businesses.
He said what's needed is an economic environment that would help businesses grow. "Businesses have costs, like wages, security, loss of productivity because of traffic and other costs. Businesses will look at ways of cutting costs. No one wants to send a worker home," he said. He hopes that the Government keeps its promises and starts the initiatives it promised to kickstart the economy. "I also want the private sector to express more confidence in economic activity," he said.