Minimum Wage Debate

Like a recurring decimal, the issue of minimum wage legislation enters the political equation and when ever it does the rhetoric generated seem only to serve the purpose of boosting the political calculus of the parties and organizations advancing its cause at that occasion. The issue of minimum wage legislation is not unknown to this BLP government. In fact, it was this party that first mooted the idea of minimum wage legislation in its manifesto of 1971. On that occasion neither the Unions nor the Opposition DLP gave the idea any support.   

The failure of other organizations to support the BLP’s call for minimum wage legislation then and their constant hollow cries now for its introduction is testimony of the BLP’s long term vision for Barbados which has become the decisive difference between the two parties. There can be no doubt that the DLP’s practice of vulgar political pragmatism has in the past stunted the growth of this country. It has always been the task of the BLP to undertake the bold initiatives needed to propel this country into the next phase of its development. 

If this country’s development was left entirely to the DLP we would not have had the International Airport we now have. We would not have had the ABC Highway which is now the axis of commercial growth and development, the expansion of the UWI to allow greater entry of students who are desirous of attaining tertiary education and the implementation of a host of social and economic programmes that now places Barbados on the threshold of a “First World” status. In short under a DLP regime Barbados’ potential to grow is stunted by the politics of indecision and a lack of political vision. A call for minimum wage legislation from any quarter in Barbados is thirty six years late of our initial attempt to introduce this piece of legislation. 

The introduction of minimum wage legislation into Barbados at this time must be made within the context of our new economy and vast changes that have taken place within the labour market. Certainly such legislation must take into consideration the fact that the circumstances between 1971 and now are vastly different. Today the unemployment rate is low and whereas this government is committed to ensuring that every worker is allowed a decent wage by which he/she can pull themselves up the socio-economic ladder, we are also fully cognizant that a rash approach to minimum wage legislation may have the adverse effect on our current positive employment climate. 

So far the debate on minimum wage legislation seems to suggest that its introduction is for the sole purpose of combating poverty. If this is indeed true then a careful analysis of government’s tax reform policies and other social programmes on the alleviation of poverty must be taken into account. The fact that this BLP government has been relentless in its job creation programme is in keeping with its philosophy that it is to the long term benefit of a man and his family that he is given the apparatus to fish rather than be given a fish.  That we have drastically reduced unemployment has not negated our obligation to those who still fall below the acceptable wage levels and to this end government has introduced a reverse tax credit to bolster their wages.    

Limited space allotted for this column does not permit for a fuller examination of the alternative methods of poverty alleviation or indeed the wider impact of minimum wage legislation on employment and unemployment. Suffice it to say, this BLP government will continue do what is in the best interest of  workers.