Saturday, April 5 2008

THE EMPLOYERS Consultative Association believes that some increase in the current $10 per hour minimum wage may be justified and has observed with “great interest” the suggested $20 per hour increase.

However, until such a time when the Minimum Wages Board and other stakeholders can agree on the establishment of a proper mechanism to guide any review of the national minimum wage, the ECA said it would not support any premature increase.

“The ECA cautions against wage fixing to offset inflationary trends, as this in itself is likely to fuel inflation.”

It acknowledged that the increased cost of living is impacting everyone and in particular those at the lower end of the economic ladder. It also said it was looking forward to the pursuit of initiatives to bring the inflation rate to more acceptable levels.

The association expressed major concern with the process used to determine increases in the minimum wage and “over the years” has called for the establishment of a formula for determining what the minimum wage ought to be at any particular time.

To date, no such formula has been developed and without an agreed method any adjustment to the national minimum wage will continue to be arbitrary, it said.

Of the ECA statement, Greater Tunapuna Chamber president, Peter Kanhai said he agreed that given skyrocketing prices, there is need for a review of the minimum wage in the near future, within a measured framework.

“I have seen advertisements in the newspapers of groceries already paying $14 or $15 per hour,” Kanhai said, adding that he also knows of businesses which pay as much as $18 per hour.