The Editor, Sir:

'Minimum wage delay' your newspaper headline screams and I continue to point out that it causes more harm than good the way in which it is being done.

As Minister Pearnel Charles has pointed out "the 17 and a half per cent increase in 2008 saw a number of workers losing their jobs". The increase was from $2,800 to the present $3,700. It is a fact that many workers lost their jobs and many remained unemployed. In fact, what the Government and the unions are engaged in is legislating poverty, unemployment and the destruction of businesses, especially small businesses which continue to be the engine of growth in Jamaica.

Think first

A minimum wage should not be made into law and at least be abandoned until the economy begins to grow again in double digits. A better way is to 'recommend' a minimum wage but not have it as a big stick over employers' heads where if the employer and an employee agree to an affordable and acceptable wage they will not be prosecuted.

I am no economist but to my knowledge when you add the cost of ever increasing raw materials, utilities, money, security, maintenance, taxes and bureaucracy, if you must borrow money at an average of 25 per cent per annum a worker may cost a small business in excess of $1.2 million annually.

Creative self-destruction

Businesses will be forced to employ and keep only workers who can add value and in fact earn their salaries. Any business that does not recognise that fact will ultimately be engaged in creative self-destruction.

Free market forces should be allowed to work, or at least private treaties between employee and employers should be allowed legal status without punitive action being threatened.

If this is done, it would have a significant impact on unemployment, crime and other social ills.

The unions, government and people must begin to think, speak and act honestly. These are trying times and all of us will sink, swim or drown together.

The focus should be on getting new investments and not making the Jamaican worker less competitive.

I am, etc.,

MICHAEL SPENCE

Micspen2@hotmail.com