Optimism, caution among lowest-paid as minimum wage takes effect

Workers who are currently earning below the national minimum wage of about $340 a week that took effect Thursday have adopted a wait-and-see stance, turning their attention to what their bosses will do next.

But those who spoke with Barbados TODAY have welcomed the move as enabling them to do a lot more for their households once they were being paid even a dollar more than their current hourly wage.

The Mia Mottley administration has introduced a national minimum wage of $8.50 an hour. A 40-hour week at $9.25 an hour for security guards would net $370 weekly.

The Ministry of Labour is also proposing a minimum overtime rate for ordinary workdays of $12.75 per hour or less, which rises to $17 per hour or less on public holidays.

In the case of the minimum wage for security guards, the minimum overtime rate proposed is $13.88 per hour for ordinary working days and $18.50 per hour or less on public holidays.

The minimum hourly rate before Thursday was $6.25, which only applied to shop assistants under the Shops Act.

Officials of the umbrella Barbados Private Sector Association, the Barbados Manufacturers’ Association and the Barbados Agricultural Society have indicated that while they welcome a national minimum wage, the timing was not right. They warned of a range of outcomes, from higher prices to job losses.

As the new hourly rates went into effect, Barbados TODAY gathered the views of service station pump attendants, shop assistants and a cleaner – all who currently earn below the new rate.

While optimistic about being able to achieve some goals, some are worried that employers will seek to cut staff.

Gas station worker Nico currently earns close to $8 per hour because of his rank at the station. He said the new rate would result in him being better able to help himself and his child.

“Right now it means I could buy what I have to buy and support my daughter better. It would help me to do more things for myself and support my daughter,” he said.

But his optimism is tinged with caution given the country is still reeling from the COVID-19 pandemic.

It’s a matter of employers now deciding a new pay scale for workers who were working below 8.50 an hour, he said. “Right now, we have to wait and see how it plays out. You know it now start so we have to wait and see.”

Asked if he was concerned about any staff cuts he simply repeated: “We have to wait and see.”

Most service station attendants across the island start at a minimum of $6.25 per hour. They are currently able to earn an additional 75 cents or a dollar per hour as they advance through the ranks.

Another gas station attendant who currently works for $6.25 said getting $8.50 would make a huge difference for her because she would better be able to pay her bills on time and do “more things around the house”.

But she said it was sceptical about what the increase would mean for staff numbers.

“Here might not want to give minimum wage and some of us might get send home,” she said.

A cleaner told Barbados TODAY she was elated that a specific minimum wage was now set.

This meant she would be in a better position to provide some of the necessities for her daughter, she said. A mother of one who has been working as a cleaner for the past six years, did not disclose how much she was currently earning but said it was below $8.50 per hour.

“I am happy about it. I am real happy,” she said.

She said she has several responsibilities, pointing out that some months were tougher than others, but said the new rates would mean she could be able to better provide for her household.

The cleaner said: “It will put more money in my pocket and help out with my daughter for school and food. I will have to put some [towards] the bills as well.

“I would give it the thumbs up now because with the COVID pandemic some people weren’t working.”

Some cashiers who currently earn below the national minimum wage said they are excited about the move. But they too declared they are waiting to see their employers next move.

A minimart owner told Barbados TODAY he was already paying his shop assistant above $8.50 per hour, and it was only due to the dramatic fall-off in business and national lockdowns that they came to a mutual agreement on a pay cut.

“I used to pay more than what they put in effect today,” he said.

“Normally she would work six days a week, but now given the COVID I reduced to five days a week – Monday to Friday,” he added.

(marlonmadden@barbadostoday.bb)