St Lucia’s draft labour ‘minimum wage’ order $6.50/hr is regressive

• St Lucia’s draft labour ‘minimum wage’ of $6.50/ per hour, has already evaporated leaving everyday workers vulnerable, stranded at the docks, hotels, and familiar places of work, no different to where they were before the proposed minimum wage, (if left unchanged.)
• “It is our hope and our desire to follow the rules and that Saint Lucian workers will have a new Minimum Liveable Wage by August 1, 2024.” ~ Philip J Pierre.

By Caribbean News Global contributor

CASTRIES, St Lucia – According to an extraordinary issue of the Saint Lucia Government Gazette Vol. 193 • Issue 17 • Thursday, May 16, 2024, under section 77 of the Labour Act, Cap. 16.04, the Minimum and Equal Wages Commission, invites comments and objections on the draft labour minimum wage order; is regressive in social and economic reality.

The Statutory Instrument (SI) says: “ In exercise of the power conferred under section 68 of the Labour Act, Cap. 16.04, the minister responsible for labour, (Virginia Albert-Poyotte) makes this Order:

Subject to subsection (2), the minimum wage is (a) XCD 1,126.00 per month; or (b) 6.50 per hour.

“The minimum wage under subsection (1) does not include other remuneration that an employee is entitled to, such as –

(a) payment for overtime; (b) a share of service charge; (c) a commission; (d) a bonus; or (e) profit sharing.

According to the government limited notice, “comments or objections should be addressed to, the chairperson Minimum and Equal Wages Commission, Lawerence Poyotte, to reach no later than Thursday, 6, June 2024, via email to minimumwage@govt.lc or minimum.wages758@gmail.com.”

This extraordinary issue of the Gazette is an exception and “ I do hope it will not have the health and safety levy effect – passing on the increased cost to final consumers,” a regional economist observer.

In the 2024 Throne Speech, acting governor-general of Saint Lucia, Cyril Errol Melchiades Charles, advised:

“My government has been steadfast in its commitment to supporting the vulnerable groups of our society. In this fiscal year 2024-2025, my government will be addressing the issue of a minimum livable wage for workers. It is my government’s position that the rewards for work must allow every worker to have a dignified existence. My government is pleased that the private sector has lent support to the implementation of a liviable living wage.”

In a request for comment from a government insider, (economist and consultant) to the bare bone, SI, request for comment and objections on the draft labour (minimum wage) order, told Caribbean News Global, (CNG): “ The SI has no basis or platform for discussion. It’s a done deal. It’s a mere formality, subject to policymakers’ orientations.”

As stated, the SI is structured with “negligible information” and thus, “there are too many missing pieces that appear shrouded in secrecy.”

In the interest of transparency and accountability, “it would be interesting – to know or hear – how or what – was the method utilized to come up with the committee’s $6.50 per hour.” (Consumer Price Index, Labour Force Survey, recent increases in cost of living, unpredictable criteria, etc,.)

On May 14, 2024, Prime Minister Philip J Pierre engaged private sector leaders at a first-of-its-kind consultation to advance the development of the local business sector and brainstorm potential solutions to address the challenges affecting Saint Lucian businesses.

It is imprecise if the draft labour minimum wage is a special minimum wage or general minimum wage. It is also unclear what is the government’s strategic policy moving forward and what businesses/employers can expect.

Rising costs and wages are factors to business risk of becoming unprofitable. There needs a wider discussion to ease the strain on doing business, red tape, bottlenecks and the public service.

It is important to note that “if the Minimum and Equal Wages Commission is heartfelt towards comments and objections, and for the betterment of workers – putting more money into their pockets – it should allow for public, open consultation and disclosure on those most affect and make available, the research paper that prompted the negligible SI.

Prime Minister Pierre’s budget address 2024 said:

“In compliance with the provision of the Labour Act Cap 16.04, the Commission shall proceed to prepare the draft order containing a recommended minimum wage for publication in the gazette and to present its recommendations to the representatives of employees and employers as prescribed by the Labour Act.”

On the issue of objections, Section 87, reads as follows:

“Objections to the making of a Minimum Wage Order shall be submitted to the minister stating (a) the grounds of objections, (b) the nature of that person’s interest in that matter and (c) such additions, modifications or amendments to the draft order that person may think fit.”

Prime Minister Pierre expressed that “part of the core values of the Saint Lucia Labour Party are equity, respect for the rule of law, and inclusiveness. [ … ] The Saint Lucia Labour Party has always demonstrated that it is the political party that cares and respects the dignity of the Saint Lucian people.”

“Our party founder and first chief minister of Saint Lucia, Sir George FL Charles, was the architect of adult suffrage and a representative of workers through the trade unions. It was his vision that led to the creation of the Protection of Wages Ordinance and Holidays with Pay Ordinance in 1959.”

“It is our responsibility, as the party in government to continue pursuing our founder’s vision to keep improving the wages and conditions of the workers of this country. This is why in 2022, we appointed a Minimum and Equal Wages Commission comprising representatives of the Trade Unions, private sector, and government.”

There has been an unprecedented increase in the cost of business operations, over the past years. The cost of living continues to go up and reforms to balance the scales are historically absent. It is harder for the Malaway!

To receive a fair share of the economic pie, employees engage in meaningful careers to help build better lives. Government policy and incremental changes should help better lives and halt misery. New tools and social policy measures require approaches to ensure workers – the Malaway – cope in the face of the mounting affordability crisis and economic reality.

The definition of a living wage is the minimum income necessary for a person to meet their basic needs. CNG’s policy analysis contends that the buying power of this nonsensical minimum wage $6.50/ per hour, has already evaporated leaving everyday workers vulnerable, stranded at the docks, hotels, and familiar places of work, no different to where they were before the proposed minimum wage, (if left unchanged).

The conversation often reverberates on the essence of governance, sensible solutions and fiscal responsibility, and that legislation should keep pace to help workers elevate – and not simply get by – blocking a hole – in a race to the bottom. Similarly, the authoritative style of governance while keeping the people locked in a dependency syndrome is a sign of an outdated governance style failing to meet present-day reality.

In terms of building the legislative agenda and setting the foundation for economic recovery and prosperity, successive governments have fallen behind.

The labour (minimum wage) order that forms part of government priorities and the political ethos, pivots little to raise the bar in keeping with the cost of living, the rights of workers, and the contemporary effort to support, protect and attract workers for economic prosperity.

Regarding Saint Lucia’s economic prosperity as a place to work, live and play, the analysis that suggests XCD 6.50 per hour or $1,126.00 per month is considerably regressive to 2014, and not suitable for present-day reality.

The recommended XCD 6.50 per hour or $1,126.00 per (or 52.00 per (seven-eight hours of work)) is currently well- below the acceptable market value for an apprentice, a general labour, a housekeeper a farmworker in the Dennery Valley, Fond St Jacques, Soufriere, Vigie, Marigot, Cap Estate, La Clery, or the city of Castries.

It gets better in Vieux Fort, Dennery North or South. A quick trip to Martinique or St Vincent equals thousands …

Thus, XCD 6.50 per hour or $1,126.00 per month will continue to lock people in deeper wage stagnation, and political interdependence, directly contributing to the cycle of poverty and the underground economy contrary to the legitimacy of “Bread, Justice and Freedom.”

@GlobalCaribbean