The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A CABINET minister yesterday warned that achieving a “liveable wage” will not be possible unless there is an improvement in Bahamian worker productivity and business efficiency.

Keith Bell, minister for labour and immigration, told the House of Assembly that the 24 percent minimum wage increase to $260 per week was viewed by the Davis administration as merely another step towards the ultimate goal of introducing a so-called liveable wage that will enable all workers and their families to cover their living costs.

He conceded, however, that the “transition” from a minimum to a liveable wage will take time and gave no indication for how long this may take. Referring to the University of the Bahamas (UoB) study on what would be a “liveable wage” for New Providence and Grand Bahama respectively, Mr Bell said: “The report was viewed by some as unreasonable.

“However, in my view it is hard to challenge the numbers, hard to challenge the methodology, and hard to dismiss the conclusions, and nor should we. Whilst it is not possible to move to a liveable wage immediately, it is the view of this Davis-led Progressive Liberal Party (PLP) government that it is a goal we should seek to transition to a liveable wage over time......

“I especially emphasise that the transition to a liveable wage over time can only be implemented if there’s an increase in efficiency and productivity.” The UoB study, published in 2021, pegged a “liveable wage” at which a worker can sustain a family of four at $2,625 per month for New Providence and $3,550 for Grand Bahama.

This translated to a net monthly liveable wage of $2,500 per month for New Providence, and $3,400 on Grand Bahama. Mr Bell said: “It is notable that the report’s estimates are almost 200 percent higher than the minimum wage and nearly 130 percent higher than the poverty line for New Providence. For Grand Bahama, it is almost 300 percent higher than the minimum wage and 160 percent higher than the poverty line.”

The minister added that worker productivity “must increase”, advocating increased education and training, as well as the need to “work smarter and use more efficient technology to assist us to be more productive in the workplace. Employees must be committed to carrying out their duties to a high standard in the businesses in which they are employed.”

Mr Bell argued that the Government had managed to strike “a balancing act between various competing interests” with the private sector minimum wage rise, which will increase by $50 per week from the current $210 come January 1, 2023, as the Davis administration moves on multiple fronts to ease the cost of living crisis faced by thousands of middle and low income Bahamians.

“In the past week, various arguments have been made from various sectors about the sum of $260,” Mr Bell added. “I wish to make it clear to employees who work incredibly hard and cannot survive off $210 per week: The Government is not saying that you should only earn $260 or that sum is adequate. The Government recognises that, in time, the minimum wage will be transitioned into a wage appropriate for today’s cost of living...

“The labour force for the Commonwealth of the Bahamas stands at 214,600 persons, although data is not current. I am advised that as much as 60,000 workers may be impacted by this increase, almost 25 percent of our workforce.”

Mr Bell added that last weekend’s ‘Labour on the Blocks 2.0’ job fair, targeted at the South Beach and Southern Shores constituencies, had resulted in the actual or likely recruitment of several hundred Bahamians to actual jobs. He recalled how one hotel hired “on the spot” a woman that it interviewed and, by 2pm, she was reporting for work.

While not naming any companies, Mr Bell cited another hospitality business where 42 new recruits began work on Monday. Two restaurants also reported success, he added, as 44 persons who attended the job fair began work at one establishment on Monday, while the other believed it had found 40 staff from the 60 it interviewed.

The minister said “a luxury upscale retailer” had identified 55 potential hires, from the 75 it had interviewed, “pending background checks”, while a hardware store had spoken to 44 persons and made two hires “on the spot”.