The St Vincent and the Grenadines envisions to improve minimum wages by 20 per cent in an attempt to ensure that no worker earns less than EC$50, daily.
The Ralph Gonsalves administration also wants to increase the length of paid maternity leave.
The wage review coincides with the Caribbean Society for Human Resource Professionals report last November found that the island was among the lowest-paying countries in the Caribbean, with 73.3 per cent of salaries being below the average market value across the county.
Prime Minister Gonsalves said that the government is waiting for the final decision from the Wages Council but was anticipating some pushback from some employers.
He said he has secured the full support of the Cabinet on the issue and next week during the budget there would be an announcement.
I disappointingly say that, a number of employers did not participate. Gonsalves during his weekly radio programme on the state-owned NBC Radio, adding that the wage review process has taken place over a period of months.
He said that a minimum wage is not a sign of how much the government is saying an employee must be paid. We’re saying that that is the least that an employer can pay you. That is not for an employer to keep you at minimum wage. You can get above minimum wage. What you can’t do is to get below minimum wage.
Gonsalves said this is the fourth time his ruling Unity Labour Party (ULP) government is increasing minimum wages since coming to office in March 2001, compared to once in 16.5 years under the main opposition New Democratic Party (NDP).
He said in 2017, the Wages Council was looking at a broad increase of 20 per cent of the minimum set, when the last change was made.
And that for the call center workers, since they came in afterwards, to do theirs 15 per cent. Since they came in 2020 or thereabouts — 2019, 2020,” Gonsalves said, adding that the Wages Council has proposed setting the minimum wage at a level where no worker makes less than EC$50 a day.
But even when they did the 20 per cent, some were falling less than that. So, I say but if that is what you’re recommending, let us have something which you think is reasonable, don’t just put 20 per cent. The number is higher than that to carry you to a particular point, you do it.
So, I think we’re going to see a reasonable jump, says Gonsalves, adding that the government was anticipating that some employers would say the new minimum wages are too high.
Among them, he mentioned retail store owners and individuals who employ cleaners and domestics.
But the truth is this, we have to take a strong line on equity. And we have to make sure that as we approach the end of the first quarter of the 21st century, that some of these things be altered, says Gonsalves said.
Gonsalves also said his government wants to give more time for maternity leave.
When we came to office, for the ordinary worker, I am not talking about the civil servants, was four weeks. We carried it to eight weeks. But it should be more than eight weeks so that the NIS (National Insurance Services) will pay 65 per cent and the employer will pay 35 per cent.
The prime minister said an employer would say a woman who wants eight weeks ‘maternity leave would have to take four of them without pay.
So, all you do is get 65 per cent from the NIS, if in fact your employer’s making the NIS payments, said Gonsalves.
