Deadline nears with ‘single objection’ to planned 2% minimum wage rise

Only one formal objection has been submitted to the government’s proposed two per cent increase in the national minimum wage, with less than a week left before the January 18 deadline for public feedback, Labour Minister Colin Jordan confirmed on Monday.

Speaking to Barbados TODAY, Jordan said he had been briefed that just one objection had been submitted since the notice was issued.

“I’ve been informed that one has been received,” he said, adding that he was not yet aware of who submitted it or the specific organisation involved.

With just over a week remaining before objections close and the 21 January implementation date approaching, the minister said it was still too early to say whether the increase could change.

“That’s a difficult one to answer,” he said, explaining that any objection must first be examined by the Minimum Wage Board.

“Coming out of that, they would make a recommendation to the Cabinet, and then the Cabinet would make the final decision.”

Jordan stressed that while there was no indication at this stage that the proposed increase would be altered, the process had to be allowed to run its course.

“The final decision rests with the Cabinet… but it is not right to prejudice the process,” he said.

Asked what concerns were typically raised when objections were made, Jordan said he had not seen the details of the lone objection submitted so far, but noted that past objections tended to focus on cost pressures faced by employers.

“I know what has been the substance of previous objections,” he said, noting that such concerns usually relate to “payment” and “increased cost… on the part of the businesses that employ.”

The minister defended the two per cent adjustment, saying it was designed to strike a balance between protecting low-income workers and providing predictability for employers.

“Every year there is an increase at the national insurance level in terms of the threshold. The two per cent pays for that,” he said.

He added that the increase was also intended to help workers cope with rising prices and to allow businesses to plan more effectively.”

“So far from being an impediment or challenge to business, we believe that it allows for greater predictability,” Jordan said, particularly for organisations engaged in their annual budgeting.

Addressing concerns from some workers that a two per cent increase may not go far enough, and from some businesses that it may still be burdensome, the minister said the government had opted for a measured approach.

“Generally run between one and four per cent,” he said, referring to the range of increases typically considered. “We believe that the two per cent increase is a fair one with respect to those persons working right at the bottom.”

Jordan also reiterated that the current framework provides for more comprehensive reviews over time.

“Every three years we will do a full review,” he said, noting that this would allow for broader adjustments if necessary.

Looking ahead, he said there was no expectation of another increase before the next scheduled review in 2027, barring major economic shocks.

“Unless there is something significant happening in the economic sphere, we do not foresee having to make another adjustment before the adjustment in 2027,” he said.

Seven months ago, the national minimum wage went from $8.50 to $10.50 and the security guard rate from $9.25 to $11.43.

The two per cent increase, which takes effect on 21 January, will raise the national minimum wage from $10.50 to $10.71 per hour, and the industry rate for security guards from $11.43 to $11.66.

Members of the public have until 18 January to submit objections via email to ps@labour.gov.bb, mrsu@labour.gov.bb, and clo@labour.gov.bb. Each objection must include the grounds for the objection, the objector’s interest in the matter, and any recommended additions or amendments.

Once that period closes, the Minimum Wage Board will review any submissions and make recommendations to Cabinet ahead of the planned implementation of the new rates on January 21, Errol Barrow Day.