Minimum wage to rise amid cost of living crisis – Labour Minister

Barbados is set to raise the national minimum wage by the end of April, as the government grapples with soaring inflation and mounting pressure to address the widening gap between wages and living costs, Minister of Labour Colin Jordan announced Tuesday.

The move comes as trade unions push for a shift towards a living wage, arguing that the current minimum wage falls short of ensuring workers can meet their basic needs.

The Caribbean Congress of Labour (CCL) has welcomed the move but stressed the need to implement a living wage and not merely raise the minimum wage.

“We expect that by the end of April, we will have a new national minimum wage,” Jordan told Barbados TODAY following an ILO conference. “You will recall that the prime minister has spoken about this matter for some time. We reconstituted the Minimum Wage Board and the board is already meeting to address the matter, recognising that inflation essentially demands an increase.”

This increase of the minimum wage comes four years after the island officially introduced a standard minimum wage in April 2021 – a sectoral minimum wage and a minimum wage for security guards.

For the sectoral minimum wage, people working a 40-hour week are entitled to $340 per week; the minimum pay for eight-hour work daily is $68 per day; those working on an hourly basis should earn $8.50. Regarding overtime, the minimum pay for overtime for ordinary working days is $12.75 while on public holidays it is $17.

The minimum wage for security guards is $9.25 per hour; they receive $13.88 per hour for overtime and $18.50 per hour on public holidays.

The Barbados Workers Union and the Congress of Trade Unions and Staff Associations of Barbados have been calling for a revision of the minimum wage since last year in the wake of the significant uptick in the cost of living.

When asked what the increased payments would look like, the minister declined to comment, only stating: “We are working toward April. I don’t like to set specific dates until I’m absolutely sure, but we are making sure the professionals on the Minimum Wage Board have the opportunity to consider all necessary factors and make an informed decision.”

He acknowledged the concerns of businesses that may struggle with increased wage costs but emphasised the importance of ensuring workers earn enough to sustain themselves and their families.

“We recognise that for a business to be viable, it must balance revenue and expenses,” he said. “But we also recognise that those who generate revenue for businesses are people, and if they are not in a position to support themselves, the organisation itself is not sustainable.”

Jordan dismissed the notion that increasing wages necessarily harms businesses, stressing that economic growth depends on ensuring fair compensation for workers.

“Workers win, organisations win, and the nation wins when everyone can sustain themselves and contribute productively to the economy. That is what national development is about,” he said.

Welcoming the news of the minimum wage increase, CCL President André Lewis said the increase was a necessary but insufficient step toward wage equity.

“We all understand, as workers and citizens of the region, that the cost of living is constantly increasing, particularly for those at the lower end of the wage spectrum who are not represented by trade unions. While the minimum wage increase is welcome, the goal should be to move beyond a minimum wage to a living wage,” he said.

A living wage, he explained, would ensure that workers can meet their basic needs, including food, healthcare, and housing, while also addressing the long-term financial security of retirees.

“Many workers retire into poverty, often without health insurance or pension plans,” he said. “While national insurance exists, it is woefully inadequate. These issues must be tackled across the region.”

Lewis also raised concerns about enforcement, noting that some employers continue to pay workers below the legal threshold.

He said: “Apart from passing a minimum wage, enforcement through the Ministry of Labour will be crucial. Some employers still break the law and pay people below the minimum wage,” he said, pointing out that while the cost of living continues to climb, income inequality remains a pressing issue.

“More and more millionaires have been created during this period of global crisis, yet the gap between the haves and the have-nots is widening. The issue is not one of scarce resources but rather the failure to distribute wealth equitably.”

Jordan told Barbados TODAY that the government is working on a system that would automate future adjustments to the minimum wage, using economic indicators to guide revisions.

“We are constructing a system that will allow the national minimum wage to be adjusted using specific metrics and parameters. Inflation is not a local issue; it is a global issue, and we must ensure that those who work can afford to live,” he said.

Lewis also took the opportunity to address the decline in trade union membership across the region. He rejected the notion that lower membership equates to reduced relevance.

“The trade union movement is absolutely relevant,” he said. “Just look at what is happening globally, from mass layoffs to precarious work conditions. Trade unions remain the barrier between the total exploitation of labour and fair wages.”

He attributed membership declines to shifts in employment practices, with more companies outsourcing work and hiring under short-term contracts to limit unionisation.

“There is a class struggle at play. Employers and the capitalist class prioritise profit over people. Weakening the labour movement serves their interests,” he warned.

The CCL leader remained confident in the future of trade unions, arguing that as long as workers face exploitation, there will be a need for organised representation: “Labour is the only force that transforms value. Capital and land alone achieve nothing. It is the work of labourers that brings value, and they must be rewarded fairly for it.” 

sheriabrathwaite@barbadostoday.bb