Government’s recent decision to suddenly postpone the long-planned minimum-wage increase was not acceptable.
The $2.50-per-hour increase to $8.50 per hour, approved by the House of Assembly earlier this year, was set to take effect on Nov. 30. Then, on Dec. 3, the Ministry of Financial Services, Economic Development and Digital Transformation issued a terse statement: Implementation of the wage hike had been postponed indefinitely “on account of a matter of public policy.”
The statement promised that a new implementation date would be set in the first quarter of next year, but no further information has been disclosed.
Meanwhile, Premier Natalio “Sowande” Wheatley, who heads the ministry, didn’t respond to requests for comment.
The move is even more perplexing given that Mr. Wheatley indicated during a press conference on Nov. 26 that the government was moving forward with the planned increase.
In some cases, contemplation and reconsideration in policymaking can be a good thing. After all, in August the government’s laudable attempt to update all public officers’ salaries to a “living wage” misfired so badly that an initial $10 million estimate ballooned overnight to some $25 million.
Perhaps Mr. Wheatley, mindful of that debacle, wanted the minimum wage issue to be studied further before implementation.
Or perhaps the October dismissal of former Deputy Premier Lorna Smith, whose ministry was overseeing the increase, caused complications that led to a delay.
But either way, Dr. Wheatley should offer a full explanation.
The planned increase would have amounted to a $100 weekly bump in the lowest-paid workers’ pay, which many earners were likely counting on in the holiday season. Businesses, too, deserve certainty and transparency in policymaking.
Moreover, the decision to increase the minimum wage was by no means rushed. It came after public consultations, legislative debate and ample study.
The government’s Minimum Wage Advisory Committee — which was appointed by the premier in November 2023 and recommended a $9 minimum wage — was drawn from various sectors of business and civil society and held outreach exercises such as focus groups and public surveys.
The committee’s recommendations also drew on a 2022 review of social assistance in the territory by the Belgium-based Social Policy Research Institute, which found that the $6 wage was “well below” what is needed.
Still, the committee stated that the speed at which rates are increased should take into account economic conditions. That’s reasonable.
But whatever the reason for the delay, the public is owed, at a minimum, more transparency about what happened and a roadmap as to what’s next.
And in our view, the minimum wage should be increased as planned straightaway.
