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Tuesday, 27 January 2009
Employers say they are unable to grant increases in the minimum wage at this time as they are trying to keep afloat and survive the economic turmoil now gripping the country.
Wayne Chen, President of the Jamaica Employers Federation (JEF) says while he encourages employers who can afford to increase wages to do so, there are others who are simply cannot afford to do this.
Mr. Chen says several businesses are struggling to keep out of the red and an increase in the minimum wage could worsen the labour situation.
"There are many businesses in Jamaica that are currently on the edge and pushing them any further will without a doubt result in job losses and we'll not achieve what we've set out to achieve which is some stability in the society."
Same old argument - Morrison
The JEF's President's sentiments are however not shared by the National Workers Union (NWU).
NWU President Vincent Morrison says the employers' argument of not being able to pay is an age old one.
"This argument comes up every time ... when the time was extremely good, when the economy was doing much better and when companies were making much better profit ... from (the minimum wage) was introduced at $13 back in 70s, that was the argument and it's still the base argument."
Legislating the minimum wage adjustments
The NWU President is also calling for legislation governing the adjustment in the minimum wage.
But fellow unionist, Clifton Grant, Vice President of the University and Allied Workers Union, says forcing employers to annually increase the minimum wage could be to the detriment of workers.
"At this time, we shouldn't be pressing for legislative adjustment because what we might be doing is putting something which is illegal which people can be charged for and instead of paying the minimum wage, they reduce their workforce ... we have to look at some level of flexibility in dealing with this situation a this time," said Mr. Grant.
But Mr. Morrison disagrees.
"Until we can find a more appropriate vehicle to deal with those vulnerable groups, legislation is the best way out," he said.
The men were speaking Monday on RJR's daily current affairs discussion programme Beyond the Headlines.
Employers say they are unable to grant increases in the minimum wage at this time as they are trying to keep afloat and survive the economic turmoil now gripping the country.
Wayne Chen, President of the Jamaica Employers Federation (JEF) says while he encourages employers who can afford to increase wages to do so, there are others who are simply cannot afford to do this.
Mr. Chen says several businesses are struggling to keep out of the red and an increase in the minimum wage could worsen the labour situation.
"There are many businesses in Jamaica that are currently on the edge and pushing them any further will without a doubt result in job losses and we'll not achieve what we've set out to achieve which is some stability in the society."
Same old argument - Morrison
The JEF's President's sentiments are however not shared by the National Workers Union (NWU).
NWU President Vincent Morrison says the employers' argument of not being able to pay is an age old one.
"This argument comes up every time ... when the time was extremely good, when the economy was doing much better and when companies were making much better profit ... from (the minimum wage) was introduced at $13 back in 70s, that was the argument and it's still the base argument."
Legislating the minimum wage adjustments
The NWU President is also calling for legislation governing the adjustment in the minimum wage.
But fellow unionist, Clifton Grant, Vice President of the University and Allied Workers Union, says forcing employers to annually increase the minimum wage could be to the detriment of workers.
"At this time, we shouldn't be pressing for legislative adjustment because what we might be doing is putting something which is illegal which people can be charged for and instead of paying the minimum wage, they reduce their workforce ... we have to look at some level of flexibility in dealing with this situation a this time," said Mr. Grant.
But Mr. Morrison disagrees.
"Until we can find a more appropriate vehicle to deal with those vulnerable groups, legislation is the best way out," he said.
The men were speaking Monday on RJR's daily current affairs discussion programme Beyond the Headlines.
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