Government is proposing a national minimum wage of $8.50 per hour and a more impressive sectoral minimum wage for security guards of $9.25 per hour, both to take effect in under two months.
This was outlined by the Ministry of Labour and Social Partnership Relations in a proposed Minimum Wage Order, which is now up for public feedback.
However, one local human resources specialist told Barbados TODAY while a national minimum wage was long in coming, now could be a sensitive time to introduce it.
Anyone seeking to object to the proposed Minimum Wage Order should do so no later than March 17, stating the grounds for the objection, the nature of the interest in the matter and any suggestions for additions or amendments to the Order.
If the proposed order is accepted, employees would earn $340 weekly for a 40-hour work week, and $68 per day for an 8-hour workday.
The Ministry of Labour is also proposing a minimum overtime rate for ordinary work days of $12.75 per hour or part thereof, and $17 per hour or part thereof as the minimum overtime rate of wages for public holidays.
In relation to the sectoral minimum wage for security guards, the minimum overtime rate proposed is $13.88 per hour or part thereof for “ordinary working days”, and $18.50 per hour or part thereof in overtime wages for public holidays.
The current minimum wage of $6.25 only applies to shop assistance under the Shops Act.
Reacting to the news on Friday, President of the Human Resources Association of Barbados (HRMAB) Brittany Brathwaite told Barbados TODAY there have been workers in Barbados who have been under earning for many years.
However, Brathwaite said at the same time, it should be considered that the business community was currently struggling given that consumption was drastically down.
“There are two sides to this coin, there is, of course, the current economic climate and all that is happening, and I am sure business associations will say it is not the right climate for it. Then the other side of this coin is the minimum wage or a national minimum wage has been long in coming. While there are persons who have been out of whack even with what pre-existed as the Shops Act minimum wage, there could be an argument made that there was enough advanced notice for many years for persons to act the very least in line with the Shops Act minimum wage,” explained Brathwaite.
“So right climate, probably not, but has it been long in coming? Yes. So it very much will have to do with lobbying and advocacy that associations like HRMAB will have to do to ensure we get this implemented at a better time,” said Brathwaite.
The HR professional noted that employers will need to “tighten up” the way they currently deal with labour in order to accommodate whatever minimum wage was decided on. She agreed that businesses could argue that if the amounts proposed were implemented then it could affect employment.
“If the Government has determined, it means we are going to lose some labour to ensure that some households are earning a bit more, then that is the risk we are going to take.
“So I think one, what associations need to do is to gather the statistics, have their members really say in detail by what percentage this move will increase their labour costs and how this could possibly impact their current head count so that if we have to share feedback with the Government through the Ministry of Labour that we are not just going with our feelings but we are providing solid statistics as to how this will impact the current labour market,” Brathwiate explained.
The national policy contributor and regional consultant said she was encouraging businesses to undertake a complete audit, examining their compensation packages and benefits and/or the allowances, ensuring that there would be strict adherence with the law when the minimum wage takes effect.
Brathwaite explained that the minimum wage was also known as a “base wage”, adding that employers could choose to pay more but not less than the agreed level when implemented.
“So for example, for the sectoral minimum wage for security guards we are seeing should be $9.25. If you put for example, $8.50 but give an allowance that allows that to fluctuate up or down and hit $9.25 some months and hit $8.50 some months you are going to find yourself not adhering with it once it is proclaimed as legislation. So there needs to be a comprehensive audit undertaken by business owners or practitioners,” she explained.
In December last year Prime Minister Mia Mottley announced that her administration would be introducing a national and sectoral minimum wage. Her announcement came in the midst of a labour dispute between G4S security officers and their employer.
It is not yet clear if the national minimum wage will be applicable to every single employee across Barbados including part-time and contract workers and other casual labour.
However, Brathwaite told Barbados TODAY while she suspected it would apply to all employment types, she was hoping that it would be made clear in coming days.
(marlonmadden@barbadostoday.bb)
