Managing director of A1 Supermarkets, Andrew Bynoe, is warning of an upcoming increase in food prices following the minimum wage hike from $8.50 to $10.50 per hour.
“We can’t absorb that across the board in wages, we now have to look at adjusting wages across the board for everyone else, so it will be more than an eight per cent increase to the wage bill. Supermarket business is labour intensive and the wage bill is our biggest expense,” Bynoe told the Sunday Sun.
He said rising wages in other departments and increasing supplier costs — especially for chicken — are adding pressure.
“Suppliers now also have to pay minimum wages where they weren’t at this level before. They are passing on these increases so that retail prices got a double whammy… So consumers have to look out for increased supermarket prices.”
Barbados Chamber of Commerce and Industry (BCCI) president Paul Inniss said, “Some have expressed a view that they might not be in a position to absorb all or some of the costs but they’re now working through what that means for their organisations or businesses.”
Professor Dwayne Devonish added, “That was obvious… Barbados locally has always been increasing its cost of living, so I think this is something that was predicted and I’m not surprised at all.”
He warned price hikes could spread and advised Government to offer support. “You’re going to see some adjustments to hours, possible lay-offs probably in the short term… there is a need for training, sensitisation… so businesses could retain their staff without also having to put the cost on consumers.”
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