An increase in the minimum wage is not enough to shield consumers from the rising cost of living and also won’t include many of the most vulnerable in Barbados.
That is the view of the Barbados Consumer Empowerment Network (BCEN), which, while acknowledging the decision, also called for “honest public dialogue” and not misleading speeches to get votes.
Effective June 1, the national minimum wage will increase from $8.50 per hour to $10.50 per hour and the sectoral wage for security guards will be $11.43 per hour.
“BCEN cautions the public and policymakers against the misleading suggestion that this wage increase alone will allow workers to “keep pace” with the rising cost of living in Barbados. This wage adjustment is important, but consumers are still confronting food inflation, rising fuel prices, VAT-inclusive electricity bills, and transport costs that far outpace their earnings. Many will find that the extra dollars earned are almost immediately consumed by basic survival expenses,” said a release from the organisation.
It added, while the increase may provide temporary relief for some, it does not address the factors which feed inflation and household hardship.
“More importantly BCEN also wants to remind the public that this measure excludes many vulnerable groups, including pensioners, the unemployed, informal sector workers and people on fixed incomes. All of these groups are being impacted by the rising cost of living. These groups still face rising prices without any corresponding income adjustment and they will continue to struggle with rising prices and limited support.”
The consumer organisation also queried how this change in the minimum wage would align with pre-existing minimum wage orders for other groups and why the trade unions were not weighing in.
It also raised to question whether “government intended that the one off $300 solidarity grant will suffice for the impacted groups mentioned in lieu of any long-term income sustainable supports”
“We need decisive action on price regulation, consumer protection, tax relief on essentials, and stronger market oversight. Wage increases alone are not a substitute for sound economic and consumer policy. When politicians stop making misleading comments saying things for votes, we can all settle down as a country and face the reality and see how we can truly find solutions to develop the country and assist all citizens.” (PR/SAT)
