An appeal for the Government to double the minimum wage and offer new incentives to kick-start home construction are being seen as key policies by the labour movement to boost employment and help turnaround the local economy. In response to Finance Minister Karen Nunez-Tesheira's announcement that the National Budget will be delivered in Parliament on September 7, National Trade Union Centre (Natuc) president, Michael Annisette, said the minimum wage has been kept down at around $10 for too long. He said with rising prices over the past few years, many of the working classes are finding it difficult to make ends meet.
In an exclusive interview with the Business Guardian, the trade union leader admitted that a lot has been done to keep inflation down, but the prices of many basic food items are still much higher than they were just a year ago. He offered an olive branch to the Government noting, however, that they should open dialogue with labour and the other social partners to get their input in policy development. For example, we are calling for an increase in the minimum wage but not an across-the-board increase that has been implemented by the Government. This is costly to business and has not been a balanced developmental policy. It places undue pressure on alternative productive sectors of the economy that cannot generate the revenues and margins that the traditional sectors can produce.
Different sectors will have a different ability to earn and pay wages, and you must recognise that different professions bring different skills to the table. More attention should also be paid to those workers who have made the effort to train and develop their skill set in their industry; even though they may be at the entry level, he added. "The minimum wage should be increased to between $15 to $20 depending on the industry, and employers must be given new incentives to hire, invest and compete, not only locally but they must be given the support to take on new international markets as well."
Annisette said getting the construction sector going again will be the key to stimulating the local economy, and an important provision in the fiscal package must be a review of the salary ceiling from the current $8,000, to allow persons earning up to $15,000/month to benefit from the subsidised mortgage interest rates. Kick-starting construction will stimulate demand for local materials, create employment and generate demand particularly at the level of the lower income earners. He said this strategy–together with a comprehensive social safety net programme–will channel much-needed relief and training to the lower income earners, who need the help more and generally spend more of their income within the local economy than any other group.
Annisette lamented that other simple legislative amendments such as repealing Legal Notice No 132, which gives foreign workers the right to work without a permit for up to 28 days would immediately add more than 2,000 jobs in the maritime sector. "The approach of the labour movement is not to pull down the Government, as they do have some sensible projects, but the objective is to generate jobs and value for the people of T&T in a sustainable way. "We are not happy when we have workers who go to work for four hours and get a full eight hours pay/day. We consider this to be unproductive and the country loses out when this happens. "The Government needs to open the dialogue with us and get labour, the private sector and other social parties involved in the process to ensure that the objective of sustainable growth, development and world-class competitiveness is achieved."
