“Let Minimum Wage Board do its job” – BEC

The Barbados Employers’ Confederation (BEC) has urged the government to allow the Minimum Wage Board to complete its mandated review before implementing further minimum wage increases, warning that predetermined adjustments risk undermining the very tripartite process established to guide fair and sustainable wage policy.

 

In a statement on Tuesday, the BEC said it supports a “fair and balanced approach” to minimum wage determinations that protects workers while safeguarding the viability of businesses, but expressed concern over the recent Budget announcement of scheduled minimum wage increases for 2025 and 2026.

 

Earlier this month, the Ministry of Labour, Social Security and Third Sector gave notice of its intention to increase the national minimum wage and the sectoral minimum wage for security guards by two per cent, effective January 21, 2026.

 

The proposed changes, set to take effect from January 21, 2026, will move the national minimum wage from $10.50 to $10.71 per hour and raise the minimum for security guards from $11.43 to $11.66 per hour.

 

According to the BEC, announcing increases ahead of the Board’s review departs from the established process of consultation and evidence-based decision-making.

 

“This decision, made before the Minimum Wage Board has completed its mandated review, departs from the established process of tripartite engagement and pre-empts the Board’s critical role in analysing economic data, consulting stakeholders, and subsequently presenting recommendations,” the BEC said.

 

The employers’ body stressed that the Minimum Wage Board was created to ensure wage decisions are informed, inclusive and sustainable, cautioning that changes to the minimum wage do not occur in isolation.

 

“Minimum wage changes do not occur in isolation – they create ripple effects that raise operating costs, which might put a strain on business sustainability, and, regrettably, threaten job creation – or, in severe cases, result in job losses,” the statement warned.

 

The BEC also raised concern about the impact of frequent, unreviewed annual increases, arguing that such an approach introduces instability and unpredictability into the market.

 

While reaffirming its commitment to fair and equitable pay, the Confederation said adjustments must be weighed against broader economic realities and sector-specific conditions critical to sustaining growth and employment.

 

“If the minimum wage is subject to frequent, unreviewed annual increases, it introduces instability and unpredictability into the market, which ultimately risks placing undue pressure on the very businesses and workers the policy is designed to support.

 

“Adjustments to the minimum wage must be approached with careful consideration, ensuring they are balanced against broader economic realities and sector-specific factors critical to sustaining growth and employment,” the statement further added.

 

The employers’ call comes as the government has defended the move, with Minister of Labour Colin Jordan insisting that the increase is intended to ease pressure on the lowest-paid workers without destabilising businesses.

 

Jordan said Cabinet had signalled its intention to introduce annual indexation months ago as part of the 2025 Budget framework.

 

The minister also indicated that work is under way through the Minimum Wage Board to assess the impact of the June 2025 increase and to develop a more scientific, Barbados-specific indexation model, with Cabinet ultimately expected to consider the Board’s recommendations.

 

However, the BEC maintains that wage adjustments must follow the process set out in law, allowing the Board to complete its analysis before decisions are made.

 

“Therefore, the BEC urgently calls for all future minimum wage adjustments to go through the Minimum Wage Board,” the statement said. “Let the Board do the work it was established to do – so decisions concerning minimum wage are fair, sustainable, and truly serve the best interest of workers, employers and the national economy.”

(SM)