The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

BAHAMIAN hotel and restaurant employers yesterday gave “strong support” to the Government’s minimum wage increase while voicing relief that both they and employees finally have clarity on the issue.

Russell Miller, the Bahamas Hotel Employers’ and Restaurants Association president, in a statement said that while its members - who include major resorts such as Atlantis - “now have the certainty they need” on payroll expense and business operations, they were disappointed not to have been consulted by the Government or more involved in the process.

He added that, following confirmation the minimum wage is being raised by 24 percent to $260 per week, BHEA members “are relieved that after months of speculation and pronouncements, the Government of The Bahamas has definitively stated its decision on the minimum wage increase and when that increase will go into effect for the private sector”.

“The public record will show that the Association has consistently supported the Government’s decision to increase the minimum wage,” Mr Miller continued. “With the final decision made, our members reiterate our strong support of this bold step taken by the Government.

“However, the promise of our consultation and involvement in the process was not met, much to our disappointment. Although this exercise was not without its challenges, the Association is confident that our members now have the certainty they need for the operation of their businesses.

“The Association notes the Prime Minister’s reference to a ‘livable wage’. As with the national conversation on the minimum wage, we remain committed to being strong, supportive private sector partners to the Government of The Bahamas as the national conversation turns to what is undoubtedly an important and timely conversation on a ‘livable wage’.”

The Prime Minister announced last week that the minimum wage will increase for private sector workers by $50 per week as of January 1, 2023, taking it from $210 to $260. Over a four-week period, that will translate to an extra $200 for someone on a minimum wage who is working a 40-hour week.

The hotel industry is among the sector set to be most impacted. Robert Sands, the Bahamas Hotel and Tourism Association’s president, told Tribune Business up to two-thirds of the hotel industry’s workforce may benefit from a minimum wage rise that he agreed was “long overdue” amid hopes the sector’s rising business volumes will offset the extra cost.

The January 2023 implementation date gives the industry “sufficient time to prepare” and adjust cost structures, Mr Sands added, but said the minimum wage cannot be “viewed in isolation” and is part of a broader cost package that needs to be lowered to ensure the tourism industry’s sustainable development and continued contribution to economic growth.

“We recognise that was long overdue.” Mr Sands said of the minimum wage increase. “We anticipated some increase in the minimum wage, so this does not come as a total shock. We will have sufficient time to prepare for it. It is mostly the line staff, entry level service staff for the most part, that will be impacted.

“I think you can say mostly the service area, which represents two-thirds of a hotel’s workforce. Anywhere up to two-thirds of a workforce in a particular hotel and casino will be impacted by this.” Workers in areas such as food and beverage, housekeeping and pool attendants typically receive the minimum wage as their base pay, but earn the majority of their income via tips and the 15 percent gratuity.

“Companies will still take a hit on this particular issue, although it was not unanticipated,” Mr Sands added. “The real answer is you don’t anticipate this level of increase, but we have always been resilient and it is a testament to our tenacity that we have weathered seemingly insurmountable challenges in the past.

“We hope business levels continue to grow, we continue to grow our business, and that we are able to generate incremental business that helps us to navigate the adverse effects of this increase at this point in time.”

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, told this newspaper that many resort industry staff impacted by the minimum wage rise will not enjoy the full $260 per week increase because they are not working a full 40 hours. Yet, even at 37.5 hours, some impact will be felt.

Suggesting that the increase will help more workers qualify for bank loans, he added: “I agree with the Prime Minister that the increase is long overdue. When we talk about from 2015 to 2022, that’s a long time in terms of having to wait.”