Base wage increase delayed

A surprise move this week saw the long-heralded boost to the minimum wage indefinitely delayed without an explanation from Premier Natalio “Sowande” Wheatley.

The announcement, which drew fire from the opposition, came in a brief statement on Tuesday — two days after the territory’s lowest-paid workers had been scheduled to start receiving a wage boost from $6 to $8.50 an hour.

In three terse sentences that included an unusual section in all capital letters, the statement noted that the newly rebranded Ministry of Financial Services, Economic Development and Digital Transformation “wishes to inform the public that the minimum wage increase scheduled to take effect on Nov. 30 has been postponed ON ACCOUNT OF A MATTER OF POLICY.”

The statement did not explain further, and Mr. Wheatley, who now heads the ministry, did not respond to requests to clarify the reason for the unexpected turn of events.

‘Reckless’

Lorna Smith, who oversaw preparations for the wage increase before the premier fired her as financial services and labour minister in October, expressed dismay at the news.

“For the premier to make an announcement to not bring the minimum wage into effect two days after it should have taken effect is reckless and shows a total disregard for the welfare of the public,” she told the Beacon.

Ms. Smith, now an opposition member in the House of Assembly, insisted the government had ample opportunity to bring in the change in an orderly fashion.

“There was more than enough time to prepare for this — months,” she wrote in a message to the Beacon. “This increase was approved by Cabinet way back in June and laid on the table of the HOA in July. All major supermarkets were working with the ministry on a ‘basket’ of goods to hold steady on prices.”

Ms. Smith warned that the abrupt delay is bad for workers and companies alike.

“This is most inconsiderate of both employees and the employers who had begun their preparations to implement this increase,” she stated.

Cost of living

The government gave no warning of the delay.

Only last week, the premier was talking up the planned wage increase as evidence that he was taking the cost-of-living crisis seriously.

Defending his government’s record for helping people struggling with high prices, Mr. Wheatley told a press conference on Nov. 26, “We are also, of course, moving forward with a minimum wage increase.”

Promises

The decision to increase the wage followed a review by a committee that recommended a boost to $9 an hour after the figure had remained at $6 an hour since 2016.

Government announced in July that the lower $8.50 wage floor would come into force on Nov. 30.

The Minimum Wage Advisory Committee, appointed by the premier in November 2023, was drawn from various sectors of business and society and held outreach exercises such as focus groups and public surveys.

The move came after a 2022 review of social assistance in the territory by the Belgium-based Social Policy Research Institute, which found that the $6 wage was “well below” what was needed.

However, the study stated that the speed at which rates are increased should take into account economic conditions.

Until the October 2016 increase, the minimum wage had remained at $4 an hour since 1999.