The Tribune

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

CHIEF Executive of the Bahamas Chamber of Commerce and Employers Confederation Edison Sumner yesterday dismissed concerns raised by some private sector employers over the recent minimum wage increase, saying that the approved $210 rate was the “best option on the table”.

According to Mr Sumner, the 40 per cent wage hike, which took effect August 15, came as a result of a “compromise” between the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), union representatives and the government.

He told The Tribune that both union representatives and government officials approached negotiations with the hope of driving minimum wage rates up by 100 per cent to 133 per cent, equivalent to $300-$350 per week.

However, Mr Sumner, who also serves as vice-chairman of the Bahamas Entrepreneurial Venture Fund, said that while an increase in that range would have benefited employees, “the economics of the matter weren’t possible”, so downward adjustments were made.

“Our place was, we made a decision to agree to raise minimum wage because we understood the need to do so. Without the chamber’s recommendation wage (it) would have been in at $350.

“The country’s economy cannot and will not be able to sustain that number. Small businesses can’t sustain that, nor can large businesses.”

He added that the BCCEC has long advised union leaders and government officials that an improved skill set for employees would result in a higher wage rate.

He said: “If you want to see your members attract a higher wage, we encourage them to get more training. That is something we have signalled for years now. We tell union leaders to tell their members that it would serve them well to spend the time and the resources to improve their skills and productivity.”

Mr Sumner said while many private sector employers are accustomed to paying wages above the now $210 minimum rate, many took issue with the $350 proposal asserting that such a drastic increase should come as skills in the labour force improved.

Meanwhile, Mr Sumner revealed that as it stands – roughly two weeks since the new wage rate took effect – BCCEC executives have received “very little negative feedback” on the increase.

He added that the negative responses received came primarily from the tourism sector.

“By and large, overwhelmingly we haven’t had an issue with the rates because most aren’t affected directly. They are already paying above that. Largely, complaints came from the tourism sector – issues with the large increase in payroll while facing other economic matters.”

On Monday, Atlantis’ Senior Vice-President of Public Relations Ed Fields confirmed that the resort’s operational expenses have had a major effect on employment activity.

He said the resort has had to implement a “freeze” on new hires as a result of increases in overhead expenses. Mr Fields said: “We have electricity to pay. We have business license fees to pay, minimum wage is being increased and there is National Health Insurance that’s on the horizon.

“There is a whole range of things that impact our expense level,” he added.

Last week, The Tribune reported that there was some suggestion that the leading resort on Paradise Island might consider job reductions in the wake of the minimum wage increase.

A senior source told The Tribune at the time that the new $210 wage rate for the private sector was not being “favourably received” due to its affect on the company’s profitability and capacity to compete.

Labour Minister Shane Gibson later called those suggestions “unfortunate”, but claimed neither he nor the government could tell a company how to run its business.