Charles

Minimum wage talks between employers and unions resumed this week, but led Minister of Labour and Social Security Pearnel Charles no closer to a decision.

"There has been no move on that (minimum wage) yet. I will need to talk with more people and take it back to Cabinet," Charles told The Gleaner during a rushed conversa-tion as he prepared to greet the King and Queen of Spain on Tuesday.

However, regardless of what Charles decides, it appears that any increase in the minimum wage will be delayed until after the Budget debate in April.

More time needed

The annual increase in the minimum wage was initially scheduled for January, but was delayed after Charles announced that he needed more time to consult with stakeholders and his Cabinet colleagues in an effort to arrive at a consensus.

Gleaner sources say despite the continuing discussions, it appears unlikely that there will be any consensus among the unions, employers and the Government.

Furthermore, if there is any increase, it will be no more than 10 per cent as the Government responds to concerns of employers, The Gleaner was informed.

Other measures

"The union representative on the minimum-wage advisory committee has submitted a minority report calling for a 20 per cent increase effective January 26, but the employers say if there is any increase, it should not exceed 10 per cent," a source told The Gleaner.

Meanwhile, to offset any disquiet from minimum-wage earners on account of the delay, the Govern-ment is considering measures such as increasing the income-tax threshold and upping the benefits under the Programme of Advance-ment through Health and Education.

In pushing their point, union leaders have sought to downplay any possible effect a minimum-wage increase could have on the unemployment rate. In the minority report, the unions argue that statistics show no correlation between an increase in the national minimum wage and unemployment.

"In fact, increases in the minimum wage during the 1990s have seen a decline in unemployment during those years and a decline in the rate of poverty," the unions say.

However, employers have complained that they are unable to afford any increase, sparking fears that if they were forced to pay more, some workers could lose their jobs.

According to Charles, an increase at this time could especially affect security guards, many of whom were sent home following the Govern-ment's 17.5 per cent increase in the minimum wage last year.

The minimum wage was increased from $2,800 to $3,200 weekly in January 2008.

arthur.hall@gleanerjm.com