KINGSTON, Jamaica – The Jamaica Chamber of Commerce (JCC) says any plans to increase the minimum wage must be “grounded in collaboration and transparency”.
Prime Minister Andrew Holness says should his ruling Jamaica Labour Party (JLP) be returned to office in Wednesday’s general election, it will gradually increase the national minimum wage from J$16,000 to J$32,00(One Jamaica dollar=US$0.008 cents) for 40-hour work week.
He said that a JLP administration will move the national minimum to J$18,500 “in our first budget and then gradually after that for the next few years.
“By increasing the minimum wage gradually you shift the incentive to work in favor of work so you going to get more Jamaicans voluntarily move out of the unemployment pool into the labor pool,” Holness said.
But the JCC in a statement said while it acknowledges the importance of ensuring that all Jamaicans earn a livable wage, however a consultative approach is critical, given the potential impact on worker expectations and the business community particularly micro, small and medium-sized enterprises (MSMEs).
The JCC said the law already provides for a consultative process that involves the Government, private sector, trade unions, civil society, and academia, with careful consideration given to factors such as the cost of living, food prices, and overall economic conditions.
“We urge the Government to continue with this process so as not to risk creating significant disruption to businesses and the broader economy.
“Since any increase in the minimum wage can potentially result in increased unemployment or result in increased costs being passed on to consumers, decisions of this nature must be grounded in collaboration and transparency,” the JCC stated.
President of the Micro, Small and Medium Enterprise, MSME Alliance, Antoinette Hamilton, says while the minimum wage increase is welcomed, she believes consultation should have been held with the private sector.
