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ALICIA WALLACE: Why are we so reluctant to talk about salaries?

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Alicia Wallace

OVER the past few days, Bahamian Twitter has been talking about pay. The conversation seemed to have started with the observation that salaries are not included in job postings. Throughout the course of the conversation, participants have touched on salaries and wages in general terms, ability to negotiate and the secrecy around remuneration among peers. The general consensus was people over 40 are less willing to disclose their income while younger people are more open and see this transparency as beneficial.

The salary secret is a norm in The Bahamas. People are very hush-hush about their incomes. I know many people who do not even want to check a box on a form that asks for a salary range. People regularly lie about their incomes, for various reasons and for no reason at all. It is particularly interesting these days when a job letter - which must include salary - is required for so many ordinary transactions. To open a bank account, a job letter must be produced. In some cases, a job letter is requested in order to rent an apartment. Documents of this kind and the information they can contain, of course, ought to be kept confidential. That said, we end up putting our information in the hands and systems of various people and institutions. Still, we are not minded to give up salary information.

What might be the reasons that we have learned to keep this information private? Are people embarrassed that they make so little? Do some people intentionally lead people to believe they receive less income than they really do? Are many of us happily in the grey, with people unsure exactly how much money we make, but fairly certain we are getting by? Do people on relatively high incomes want to avoid being asked for money? Are those with relatively low incomes protecting themselves from judgment of other people? How many people are trying to avoid or control competition in the job market?

There is no good reason for keeping salary secrets and it really does not serve employees.

We know unfair hiring practices are widespread. People doing the same work are paid different salaries. Nepotism, gender bias, ageism, racism and xenophobia all contribute to these practices. Some employers and hiring managers suggest it is the (prospective) employee’s job to sell themselves and negotiate. They do not understand it to be their duty to fairly compensate employees and be clear about remuneration from the beginning of the process. Businesses want to extract as much labour as possible while paying as little as possible in order to maximise profit. This is capitalism. It does not care about people; it uses people. Why should the same people keep its secrets?

We participate in capitalism very well. Having met this system in place and observed that everyone cannot win, we recognise ourselves as factors of production and others as our competition. Why would I tell my coworkers about my $25 when I know, if they make less, they will try to get $25 or more. The employer may blame me for it, or it could keep me from getting a raise.

In a world of limited resources, people want to get as much as they can. Someone getting more means someone else getting less, whether that change happens now or later on. At the end of the day, we expend our energy competing with people in similar positions, doing nothing to make the change we actually need.

Having conversations about income is an easy place to start, once employees can get over the shame, insecurity and secrecy around the topic and the idea that their value is reflected in that number. Knowing what people in similar positions take home at the end of the week or month can help people to negotiate for better pay in current positions and in new roles. In addition, employers need to make a change, stating the salary - at least providing a range - for positions during the recruitment process. No one should go through the considerable work involved in applying for a job without being clear on compensation. Sometimes it is not worth the effort and applicants should know that upfront. It would save them as well as recruiters and hire managers time. It is easy to say people should stop applying for jobs where information on compensation is not provided, but job seekers are already at a disadvantage. Employers know this, and they exploit the vulnerability of unemployed and underemployed people.

There are small things some of us can do to help others along. Last week, I saw someone share on Twitter the position they left and the minimum salary anyone applying for the job should ask for. She also shared her own salary and other benefits. On the other side, someone shared that they offered a candidate 65 percent of the budget for a position “because that’s what she asked for,” and her message was that people should ask for the amount they want and deserve. She was taken to task for doing this instead of being transparent and making a higher offer. It was reported she was fired that week.

Yes, we can ask higher. Yes, we can negotiate better. Yes, we can try to do research and get stuck because no one wants to talk about their salaries. The other thing we can do is push for a change in systems, and that includes hiring practices and minimum wage. As has been discussed in recent years, we need to move to a living wage. The minimum wage of $210 per week is not enough to live here.

In 2015, the minimum wage was increased from $150 to $210 per week - the first change since 2002. At a press conference held at the Progressive Liberal Party headquarters in December 2019, then Leader of the Opposition Philip ‘Brave’ Davis said: “I think the time has come for us to do a complete and comprehensive study of what is a liveable wage in this country.” Asked if minimum wage should incrementally increase every few years, he said economic growth needs to be considered first. “If the cost of living is going up and your salaries for example have not kept pace, it may be because of your lack of growth in your economy.” It remains to be seen what Davis, now Prime Minister, will do to foster economic growth and ensure people receive appropriate remuneration.

In August 2019, Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) Chief Executive Officer Jeffrey Beckles said: “We cannot have a conversation about wage increases outside the context of long-term impact on many small companies who already find it difficult to keep their doors open.” He said businesses were already struggling and an increase would negatively impact them.

If businesses, however, cannot pay fair wages, they cannot afford to have employees. The owners need to come up with an alternative because exploiting people is not acceptable. No one should be working full time and unable to sustain themselves because their income is no match for the cost of living. We need more people in positions of power to care about people at least as much as they care about profit.

In December 2019, Trade Union Congress (TUC) president Obie Ferguson said a minimum of $350 per week is a liveable wage. According to a September 2020 study by University of The Bahamas’ Government and Public Policy Institute, a monthly living wage in New Providence would be $2,625 ($656.50 per week) and $3,550 ($887.50 per week) in Grand Bahama. This was followed by the 2021 Speech from the Throne which included: “My Government will increase the minimum wage and phase in a liveable wage.” Then, “[…] my Government will work to ensure that every Bahamian has life skills, food to eat, clean water and a roof over their heads.”

As we are being warned that the price of food is going up and the price of gas is also increasing, it is critical we talk about the state of the labour market. We cannot settle for old school practices that continue to do what they were designed to do - keep employees silent, prevent their organizing and maximizing profit while disregarding the humanity of employees, including their most basic needs which can only be met, within this system, with money.

If money is what we are going to continue to depend on to sustain us, we are going to have to be more intentional and unabashed in talking about it.

Recommendations

1. Home Economics. In this television show airing on ABC, three adult siblings have different financial circumstances. Tom is the oldest sibling, an author, and married with three children. Sarah, the middle child, is a child therapist and unemployed at the start of season one. She is married with two children. Connor, the youngest, has a private equity firm and is in the top 1%. He is getting a divorce and has one child. The spouses are featured heavily, and there is less emphasis on the children. From ruining their childhood friend’s wedding to pregnancy scares, it is interesting to see how the adults in the family relate to one another and the effort they put into having an engaged, happy extended family life. The entire show is narrated by Tom who is (secretly) writing a book about the family and the financial disparities.

2. Amapiano. This style of house fuses with jazz and lounge music. It is said to have emerged from South Africa. Check out Abalele by Kabza de Small and DJ Maphorisa featuring Ami Faku, LiYoshona by kiwis SA featuring Njelic, MalumNator, and De Mthuda, Siyathandana by Cassper Nyovest, and Hamba Nobani by Boohle featuring Busta 929, Reece Madlisa and Zuma.

3. Support small businesses. Go to farmers markets and buy locally grown produce. Order bread from the small bakery, buy greeting cards from artists, support the young people producing sugar scrubs and lip balms, and think about the people doing excellent work from home before you go to a large store or order online. Supporting small Bahamian businesses helps everyone.

4. Follow @morganharpernichols on Instagram. She posts quotes and prompts to help people to relax, reflect and reset. She has an app and a store with merchandise including art prints with helpful reminders. One of the quotes from January is: “The future will arrive when it is meant to arrive and you do not have to exhaust yourself in the present moment trying to figure out how you will get there. Her new book Peace is a Practice is now available for pre-order.

Comments

LastManStanding 2 years, 2 months ago

The Bahamas is overpopulated, there are not enough jobs to go around for everyone. The mass migration of Bahamians to Canada (which has much easier immigration procedures than the US) is a natural vent for this problem, albeit not a big enough one. There are simply not enough jobs here, so it would be beneficial to find a way to make it easier for Bahamians to find overseas work.

Salaries are indeed lower here than in the US, but something to consider is that we don't pay income tax here. What you see listed as your salary in the US or Canada is not what you are going to get paid. The government will take their cut, and depending on where you live/how much you make, it can range from anywhere to 15% - 30% for most people.

At the end of the day, both employees and employers have to work together to find common ground for everyone. Raise the wages on small businesses and watch them shut down while the few workers they do employ end up on the backs of the government (ie. taxpayer). Rather than talking about wages, developing sustainable industries should be the topic. I am sorry, it is ridiculous to expect to pay someone close to 700 a week for an unskilled service job. The problem is that there is a very limited supply of skilled/semi-skilled positions in this country, and no government has focused on creating more. Cleaning rooms and bartending are not skilled professions that can justify paying someone thousands of dollars every month, you can literally pick people off of the street and have them perform those tasks. Shut the businesses down and see how much worse things get for you with everyone on the government dole.

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Bobsyeruncle 2 years, 2 months ago

it can range from anywhere to 15% - 30% for most people.

I would say that is an underestimate. With both Federal & State tax and then Social Security it is more like 30-45%. Yes, some states don't have state tax, but they get their chunk of change from you by other means.

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LastManStanding 2 years, 2 months ago

Yes, of course, there are many ways to nickle and dime the taxpayer. Technically speaking, NIB is a roundabout form of "income tax" as well.

I have actually lived and worked abroad before coming back, and I remember vividly how excited I was with my first job's stated salary when signing the employment contract, and then being completely disappointed reading my first pay slip. It is the biggest reason I rail so hard against the numerous taxes that these governments want to impose, and against how hard they piss the money away once it is in their hands. It is a vicious cycle of piss money away, whine that we need more taxes, piss that money away, repeat. We are so blessed not to pay income tax, not pay RPT on the Family Islands as a Bahamian, and so much more. It is something that we should truly be trying to preserve for our children.

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sheeprunner12 2 years, 2 months ago

Most Bahamians live in an alternative world. They make 300 or 1000 per week, but live as if they make twice the amount. The result is that it leads to debt, distress, disease, and death ....... Living a dollar lie is leading many Bahamians to untimely deaths

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