Many employers paying above minimum wage, says minister
Hundreds of workers have benefited from the minimum wage — with many employers paying more than is required by law, according to the Minister of Economy and Labour.
The $16.40 an hour minimum was introduced in June this year and was lauded as a “turning point” by the Premier, although some criticised the inclusion of tips.
Jason Hayward said the minimum wage was now being looked at again to examine if it should be raised to take into account issues such as inflation and attention would then be turned to a living wage.
“When I talk about the real impact, I say hundreds of workers. I know that because I've now been able to observe the changes of statements of employment for work permit holders,“ said Mr Hayward.
He said many employees were being paid $17 an hour adding: “You say, ‘well, where does this magic $17 come from?’ It comes from because persons are bumped up even past the $16.40 and just moved to paying some of the employees a flat $17.
“The number of work permits we had to reject because it wasn't above the $16.40 and then we have seen the subsequent statements of employment coming in at over $16.40.”
“Primarily, we see the greatest impact in hospitality and in personal services, which would most likely be persons that work in your beauty salons, your spas, and things of that nature.”
The International Labour Organisation says minimum wages have been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”.
The ILO says the purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection. Minimum wages can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value.
According to the Global Living Wage Coalition, the remuneration received for a standard work week by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, healthcare, transportation, clothing, and other essential needs including provision for unexpected events.
On a living wage, Mr Hayward said he had met with the Wage Commission “to do some further work regarding the minimum wage and finalise that”.
“So the next set of work that will be done regarding the minimum wage is how we progress that $16.40. Do you raise it every three years? Do you raise it every year, and what mechanism do you use to do that?
“That is something that they're currently working on, but the next step would be developing a framework for a living wage.”
The Minister added there will be work to close the gap between the minimum wage and the living wage and when the two were of equal value, the minimum wage would cease to exist and be replaced by the living wage.
Pressed on whether there was a timeline for the introduction of the living wage, the minister said he hoped “significant” work will be done in the next financial year, which begins April 1.
“There is a committee in place and if you ask the chairman of the committee when do they anticipate having the report to the minister, he may give you a date, but I would say in the next fiscal period I am expecting significant work to be done.”
• To listen to the full interview, click on the audio file.
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