$6 minimum wage recommended
(CNS): After a robust process to collect the necessary data, the Minimum Wage Advisory Committee has recommend an across the board minimum wage of $6 per hour for everyone, from domestic workers and waiting staff to security guards and janitors. The wage will apply to everyone of working age, including teenagers. It will also apply to both local and foreign workers with no distinction, but 25% of the hourly pay can be made up from gratuities or accommodation for live-in helpers.
The premier and the labour minister have both stated that the MWAC’s report and recommendations need to be discussed by Cabinet and Caucus over the acceptance of the figure and a timeline for implementation but both Alden McLaughlin and Tara Rivers said they would be encouraging their colleagues to back the figure as the starting point to implement Cayman’s first basic national minimum wage.
During a press conference on Thursday revealing the details of the committee’s recently completed report, the chair of that committee, Lemuel Hurlston, explained that over 70% of the people that will be impacted are work permit holders. The detailed recommendations followed what appears to have been a thorough and robust period of research and analysis. The committee confirmed that a large proportion of those who will be most impacted will be domestic workers employed by households, as well as staff working in hotels, bars and restaurants.
He said that during the consultation process most people, well over 90%, supported the concept of a minimum wage but he said the public spoke largely about a living wage, which is not enforceable by law and there is no agreed formula.
Hurlston explained that, as a result, he expected that several people will think the figure too low but he pointed out this would be a legally enforceable rate and one that could be reviewed. Starting with a conservative figure that could be revised upwards after assessing its impact would be far better than setting too high a level that would need to be brought down, he said.
Having conducted a thorough process with the support and help of a consultant supplied by the International Labour Organisation, Hurlston said he believed the committee’s recommendation of an across the board $6 flat rate represented a fair, sensible and simple starting point that would be easy to enforce and would, once implemented, improve the lives of many people in the lowest paid jobs.
Home helpers and domestic workers stand to gain the most as some will see their wages improve on average by as much as $1.86.
The chair explained that the committee had taken many factors into consideration and there is likely to be some job losses but they are expected to be jobs held by permit holders. However, the economic impact of an increase in pay for the lowest workers should improve the economic outlook for the country as locals who see an improvement in their pay are likely to spend most of their extra income in the local economy.
Caymanians will be the ones picking up the annual $17 million tab, with household workers costing domestic employers an extra $10 million and the business sector paying over $7 million to lift the worst paid workers up to the minimum wage level, but Premier Alden McLaughlin said the price is one worth paying. He said it was not just about economics but social justice as people needed to be treated fairly.
He spoke about the worst cases of exploitation, where domestic workers and helpers were living in and paid as little as $60 per week, which was simply unacceptable.
“There has been considerable concern that we have imported poverty,” he said, “and we know that we have imported very low paid labour. We can imagine the conditions that some people live in where they are sleeping in shifts and sharing the same beds. Those conditions have not served Cayman well and do not bode well for the future; we need to change that.”
He pointed out that by lifting the lowest paid rates, more opportunities for local workers will open up because Caymanians are loath to accept such exploitation, but with a guaranteed minimum of $6 per hour they may be more inclined to take the jobs when it is possible to survive on the wage.
“We can’t just look at the $10 million, we must look at all of the social conditions,” the premier said.
Although there will be no wide public consultation on the findings and recommendation of the report, the ministry is inviting feedback before it makes a decision about the timetable. The premier has said he expects to make an announcement about that timeline and implementation process during the budget session of the Legislative Assembly in May.
Category: Jobs, Local News
Any business which only pays its staff $6 an hour is not going to get my custom any more. I refuse to support anyone so immoral.
Oops after all that deliberation they forgot to factor in that most slave drivers here deduct the work permit fee from the slave’s weekly pay packet
And most of them refuse to cover the insurances
Amazing no one praised the man who for over 2 years kept pushing for a minimum wage. Not even thank you?
Thanks Ezzard you are a man for the people.
Thank you is hardly necessary for such an unsuccessful outcome. Even Ezzard might agree if he is a true man of the people.
Phew! After all that huffing and puffing, they managed to come up with a pointlessly low figure.
For that price tag I think you need go higher than $6.00 per hour. Noting, that number does not factor in the $0.30 per hour to pension and $0.40 per hour to insurance (base on the average cost for health benefits for ONE PERSON). So with a take home income of less than $5.50 p.h. for an average work week of 40 hours that is $212.00 per week, $848.00 per month. I still do not see how that figure is plausible for the adequate standard of living in the Cayman Islands for an individual, let alone dual-parenting families and worst single-parenting families.
The cost of living in CI is at least 40 percent higher than North America (20 percent to govt and minimum 20 percent local profit) and the proposed minimum wage is about 40 percent lower. It looks like our govt is ticking the box. We promised minimum wage so here it is, 50 cents per hour. Can’t say we didn’t deliver on our promise! Would be interested to see if this new wage of about 1000 per month reduces unemployment. By the way how much do we pay a person to sit home and pretend they are unemployed? Better be less than 6 an hour, right? Political bull at its best.
Caymanian Government has delivered just as expected. Delivered in 800% longer time then North America at 800% the cost with 20% the intelligence. Get used to it as this is the best it will ever be.
The funny thing about this is that it will put a lot of domestic helpers out of work because the middle class will no longer be able to afford them.
If you cannot afford $6.00 an hour you are not middle class.
Average household would be more appropriate
But average household would be working class. That is how the pyramid works.
The test for this “minimum” would be for Tara Rivers, et al to live for a month on it, just to see if their figures are correct.
C’mon let’s see.
And don’t hold your breath BoBo!!! Tara Rivers et al LUVS living well and so the $6 isn’t going to cut it with them!! But we supposed to work for an hour before we can get a gallon of milk!! Yet they live on 7mile Beach?
I think this is a good start. It’s been a long time coming and we have to start some where.
You already have $5 an hour so you have already started somewhere.
I would love to support this but here’s my cynical view, those that already pay a decent wage will continue to do so, minimum wage or not, those that don’t will get around it, just like they do for pensions, trade and business licence, medical insurance etc etc. How on earth would anyone be able to enforce this? Heck, people already lie on the permit applications at how much they will be paying, nothing happens, don’t pay medical, kick them off when they complain or get sick, no pension, drag it out for 3 years then a new employee. If you leave it to the employee to come forward you end up with a ‘complain and lose your job’ scenario.
Please release your next story saying “Slavery alive and well in cayman”
I think you need to check the definition of slave. Last I checked, $6 per hour is $6 higher than $0. Slaves generally don’t collect paychecks. Also, slaves are outright owned. I am pretty sure that most workers in CI can leave their employment voluntarily if they wanted. Your comment is flippant and not a particularly useful contribution to the conversation.
Why in God’s name would the committee even utilise the idea of allowing companies that reap gratuities as part of the $6 base wage? Gratuities are given as a bonus to the workers to be disbursed by employers amongst their employees and even then it is NOT to be shared by a sector of those employees. However I note with interest how well our Premier Alden McLaughlin and Labor Minister Tara Rivers ensures that FOREIGN workers are cared for ie remember the TLEPS and now the minimum wage ensures the FOREIGN worker benefits but NOT the Caymanian; people of this lil rock!! So much for voting “EDUCATED” persons to Parliament eh?
I’ve been taught though that no education supercedes COMMON SENSE but actually works in tandem WITH higher education!! Seems COMMON SENSE isn’t anywhere near those we elected with the varying degrees!
Then again NONE of them are hurting because of their salaries since the least of them makes at a minimum of KYD$8000 per month ie $2000 a week meaning close to $300 per day.
Now they, our elected members, have no worries paying their bills OR buying that $6 for a gallon of milk OR sending ALL their children to private schools (except Archer). OR live on 7mile beach OR pay a live-in helper OR not borrow from Peter to pay Paul ie insurance for homes, vehicles etc
Disgusting bunch………BUT hold on friends; hold on…..not everything lasts forever. Tell them that too….when you make your comments and reccomendations………BUT also include their JOB is to ensure policies/laws etc are to benefit CAYMANIANS FIRST and everybody else from the 137 countries who holds work permits here…….Remind them it was US; the CAYMANIAN who was to be FIRST…….not again pushed to the back-of-the-bus!!
How exactly does the minimum wage benefit foreigners to the exclusion of Caymanians? Please explain as I dont see that anywhere in the article or the other press coverage, all of which states it applies to any worker.
It is Caymanian first. YOU first voted in Caymanians that are all about me first. Vote the same expect the same.
A person can work more than 40 hours a week. Do you want to get ahead? Add a part time job to that. Well except expats …..
Yow is this the junk that Tara River, are able to come up. I only wish I knew that this what they came to my place of living to get my view on, while I could have been sleeping, most Caymanian are paying that now, make shore that we drop her pay Dow to around about that.
It’s can’t help pay your light or water bill what you think your rent or morgeive on you home, wake Tara River take that back to West Bay, see if they don’t run you of town on a stick horse, if they can find one because it cost water to grow tree to get the stick horse
wow I will be able to fire those that make $10+ and rehire at $6
Im lovin it
You maybe a pig with that comment but it does make sense and I’m sure many will try this.
Any such action would constitute unfair dismissal under the labour law and wrongful dismissal at common law.
Under the law yes but who has the means to pursue such a claim?
You don’t hire.
CaymanKind!
this will do nothing but increase the cost of living for everyone……one step forward but two steps back…….
How will this raise the cost of living for everyone? I would hope that businesses that are core to the cost of living eg supermarkets and utilities are already paying their workers above minimum wage of $6/hr. If they are not, they should be extremely ashamed of themselves. And if these same businesses take this opportunity to raise prices simply to increase profits they should be just as ashamed.
are you retarded? Seriously. How it raises the cost of living has been mentioned a dozen times already in the comments sections, in all the papers.
I will try to keep it simple for you.
You have 10 workers making 4 dollars an hour. You sell stuff. You see the prices now.
Now you have to pay your workers 6 dollars an hour. You have to sell your stuff. Are you gonna keep your prices the same and make less money?
The obvious answer is …NO. You are going to raise prices.
Why for the life of me, cannot anyone see this.
One of the very special things that makes Cayman so magical is. We don’t do whatever every other country is doing. And that truly sets us apart from the rest of the world. We have not failed, we prosper. So we must be doing something right. For all the wrongs.
But this is a wrong that is so catastrophic. Not today, not tomorrow. But 15 years down the road. Save what I have said right here. In 15 years you will really start to see the very bad consequences a minimum wage is going to seed.
Rampant inflation.
And if you think that is scare mongering. Look at every other country that has a minimum wage. They are all in debt. Every….last…one of them.
Oh dear you have no idea do you?
Your resorting to name calling in that manner shows your character. And perhaps your intelligence level.
But let’s see if I can explain.
From the article, those “most impacted will be domestic workers employed by households, as well as staff working in hotels, bars and restaurants.”.
Economics show these are all luxury goods. Economic principle show that when luxury goods increase in price, the rational consumer will reduce consumption, remove consumption or switch to cheaper alternatives. So perhaps try cleaning your home yourself, cook your meals and carrying your lunch instead (may be healthier in addition to cheaper), take less vacations, eat out less, seek cheaper daycare rates. If this is what your budget allows, you need to adjust your level of luxury goods.
Economic theory also show that an increase in the price of luxury items should not increase the cost of living due to rational behavior above. This is in contrast to increase in the cost of necessities such as utilities and basic food items. Supermarkets and utilities should already be paying above minimum wage.
The response from restaurants etc also show that they are already paying their workers above the minimum. So we should expect no increase there. Only Ritz who admitted that tips more than covers the minimum – so I am sure they will also work it out.
So please tell me which company hiring 10 plus staff are not paying them minimum wage. Please name them so we can all start boycotting them from now because of moral concerns.
It’s recommended. The PPM govt. can increase it so if you don’t like it let them know and they can have it increased! Make your voices known.
Lets be for real….CI$6.00 isn’t going to make any Caymanian come look for a job. There are jobs advertised at CI$10.00 per hour and Caymanians won’t work for that salary where they have NO EXPERIENCE IN ANY FIELD. So what is the difference?????
All I gotta say is 6 won’t work for me because if am coming in a work permit I have son whom I have to take care of here in jamaica plus rent ,bills cayman is worst than Jamaica in this case
How will they in enforce this?…Another nail in the coffin of the middle class. To me, this seems like the intro to income tax.
I agree there has to be a minimum wage in Cayman. The unfortunate thing is that the greedy businesses around here will use this as an excuse to raise prices three fold.
Not a lot of money, but the average family will not be able to afford to employ domestic helpers anymore.
Would be a good time to open up a daycare if this gets through.
I will be interested to see how they plan on enforcing it.
Just an observation I would like to share: I consider myself to be from a working class family or an average family. I am Canadian. When I first moved to CI one of the things I noticed was that everyone seems to have a gardener, a cleaner and various other kinds of “servants” doing work that my mom and dad did when I was growing up (and later my sister and I as we got older). Maybe part of the issue is that people spend beyond their means to do jobs that they could do or that their children could do. Just a thought. In my mind an average family maybe shouldn’t be spending money on domestic helpers in the first place if making the bills is an issue.
This is so true. Doing regular household chores builds character, personal responsibility, and is good exercise. Kids learn how to take instructions and take pride in their work, and you save an extra $60-80 per helper visit.
Couldn’t agree with you more. I was shocked when I came here and having a full-time helper was a norm. Where I came from, having someone in periodically to help with housework meant you were rich. Having a full-time helper meant you were very rich. I also grew up where everyone in the household had chores to ensure dishes were washed (without a dishwasher), the house was clean, the car was washed and the yard was clean. Having a helper is a luxury.
Did the mothers work full-time and leave the babies/school children home alone?
No, but they also tried to avoid breeding with no goods who would not be around to help out.
Every single mother does not breed with no goods.
Which country is that? Such high moral values should be commended but please explain how all the adults worked and who took care of school kids and babies. Shift work is not optional.
Daycare and unsupervised school children are not the best options. Canadians don’t have perfect ideas.
Regulated and good quality Daycare in infinitely better than leaving your child in Cayman with helpers who have not idea how to interact with children, provide a stimulating environment for them and know how to socialise them. I see the results every day here in Cayman of young children arriving in school with virtually no social skills because of their formative years resembling a desert of stimulation.
Affordable Daycare has the same type of staff as the helpers at home. The cost for two kids at daycare is – how much?
You can’t lump a gardener in with a helper. Those are two different permits. When my children were in their teens, I had them help me with chores. However, I can hardly leave a 8 year old special needs child home alone. I’m not the poster above and I’m just giving an example. Not all people that have a helper works them all day and night, makes them pay their own permit, and medical. I would really like to hear from the people that have helpers that abide by the law instead of these holier than thou people. Please beware that sometimes people who have those holier than thou attitudes ends up in the same position of those less fortunate.
The average family is paying their helper $60 day right now. Seems like unless they are making them work really long hours or being abusive nothing will change.
That figure isn’t right, the average family is not paying their helpers US$75/day. I would say the average helper is making around $1,200USD a month.
I am not arguing that the minimum wage isn’t a fair amount, to be honest it is probably too low.
The reality is though that if people are required to pay $1,800USD/month, they will just move their kids to daycare.
Exactly, I was going to hire a person who accepted $750.00 per month working 5 days a week 9-5pm to care for my newborn for about a year but now I will have to reconsider sending my lil one to preschool as I can’t afford to pay a domestic helper $6 an hour and I’m not gonna chance them running to Immigration or Labor board on me. This is not a benefit to middle working class at all.
Where do you work with working hours of 9:30 to 4:30?? Because you will reach to work after the nanny arrives and leave work before the nanny has to leave. I would love those working hours so please let me know.
My husband works on shift so that allows us flexibility with the hours (not that it was any of your business but you seem so curious).
True consideration needs to be given to the idea of minimum wage, some may argue that $6.00 per hour is too little. Take for example a domestic helper who works on average of ten(10) hours per day with these scenarios:
Scenario 1:- Works Monday to Friday @ typically 10 hours per day = $1200.00 per month (4 week month) if its a (5 week month) then thats $1500.00 per month.
Scenario 2:- Works Monday to Saturday or Sunday @ typically 10 hours per day $= 1,440.00 per month and if its a (5 week month) then that’s $1,800.00 per month.
I will stop there now if average earning power for Residents is $2,500. It then means most families will not be able to hire the services of a helper, so whats the spin off effect? Most helpers will be jobless because of the spike in cost for families and day cares business will survive. The Rich still getting Richer and the Poor of course remains poor but also unable to survive.
This can only be feasible if the minumum wage puts dollars back in everyone’s pocket, but for fixed salaried employees, I don’t see there salaries changing because they are renumerated not by hour but monthly.
Noooooo such thing as a 5 week month, 5 pay periods in some months but it is not a 5 week month. one (1) year = 52 weeks. 5 x 7=35. One’s life stile is what generally makes them poor even some high income earners become poor, lottery winners become rich and then return to being poor again, life is about choice. the time that some people spend complaining and blaming others are a waste of time, That time should be spent on positive avenues to making life better. Complaining just make us more and more miserable, think and live positive. Try it.
Look after your own children, juggle work, home, cooking, shopping like most of the rest of the world.
Was that your mom or wife? Who took care of the baby if everyone went to work? Oblivious.
‘The rest of the world’ is a figment of someone’s imagination.
Are you telling us you pay your helper less than $60 a day? If you are, then you are the reason a minimum wage is necessary.
If you are making $2500 a month, then there is no way you should be employing a full time domestic helper anyway.
When I was living in the UK if I had paid for a full time helper to look after my child we would have become very poor. As it was we chose for a period of time to live on one wage, had no holidays, lived very economically and frugally, so that we could have the privilege of me taking care of the children we chose to bring into this world. Please don’t give me that that crap about you cannot live on one wage in Cayman because you can but you have to adjust your expectations and invest in the most precious thing there can be – your child.
I think the UK has more options for child care than the Cayman Islands do. Most people have no other option than to hire a helper.
Sounds to me like the issue has been fudged totally. A $6 minimum wage is a nid and a wink to the Caymanians who employ foreign workers. I guess this is what was always going to happen.
25 percent of the wage can be made up by grats? I wonder if the bank will take this into consideration for a loan? The US is debating raising their minimum wage to $11.00 ph across the board and we are starting at $6.00.
Helper say to her employer, I need a raise to $6.00. employer say ok but you need to pay for room and board, you also need to pay for your own meals and there is a laundry cost and you must contribute to the utilities. So whats my take home pay? exactly the same as last month!
The starting wage should be $10.00 which is considered livable for hotels, restaurants, supermarkets and fast food. Domestic labor should be a fix take home fee dependent on the living situation. we all know if a person has to rent and pay all associated fees their take home pay is far less than living in.
The Federal minimum wage for “tipped employees” ie. those earning gratuities, is US$ 2.13 an hour.
anonymous
What a shame for a country with one of the world’s highest per capita income. Someone said that in the US it’s $7+ ph but the fact is that most businesses, including the Federal Gov’t are paying their workers $10 or more. I pay my domestic and others who do labour-type work at least $10 per hour. What people need is a living wage not a minimum wage that is akin to slave labour. Overall wages have not kept pace with the millions that the 1% are making. As long as we continue to pay these salaries there won’t be a middle class but an upper and lower class. This study was nothing but pure conjecture and not based on empirical data or research. Cut the exorbitant bonuses and perks of the so-called big shots who have three homes in different continents and kids in boarding schools and there won’t be any need for scare tactics such as job loss!
$6.00? A gallon of milk is how much? Still have to work 2 hours to buy a gallon of milk. Give me a break.
Has any of the Government Entities taken into consideration, vendors that have binding contracts with companies for a certain amount of time, ie Government. Companies can go under for the wages will not balance to the monthly charges. Employees have so called contracts with Immigration stating their salaries, this can be broken to adjust the minimum wage, but what about contracts? Have they given any thought to this?
Terms of a contract which contravene the law are invalid. When a minimum wage takes effect, all contract terms to pay people – or which result in people being paid – less than the minimum will be illegal and unenforceable. Amending those contracts won’t strictly be necessary, but will be advised.
Most Employers do not fulfill their contracts as presented to Immigration when it pertain to accommodation and wages, employee arrive on Island get picked up told I cannot provide housing for you, cannot pay you the hourly rate when in many cases were already accepted by the employee before arriving here. That info on the immigration form is only to get it granted and seldom fulfilled and everyone know this.
I thought minimum wage was about ensuring that ALL people that work in the Cayman Islands can have a quality of life that supports their basic needs to survive on this island. OBVIOUSLY the $6 recommendation was made to ensure that the supermarkets, hotels, security businesses and employers of domestic workers, can still pay their workers nothing and expect these people that are paid $6 an hour to live on ‘chicken back and rice’.
Businesses should stop being ‘GREEDY’ and complaining about they will have to raise their prices and pass this on to consumers, when most times, they take all the savings and still hike the prices up to make MORE MONEY!
FYI: There are many people living on this island that are catching water to bath in buckets and living with no power due to their wages being $6 an hour.
KYD$6.00/hr is less than the US Minimum wage of USD$7.25/hr, with a Cayman Islands cost of living and Import Duties over 20% higher than in USA. Basic logic would dictate that ours should be KYD$7.25 as a minimum starting point, or why bother?
This is no different than what they are making now, so what difference will it make? This is slavery pay, not a minimum wage. This is slavery pay.
This will breed more deterioration and violence and robberies in this island. And it deserves to be so, because this is violating human rights to have such a low minimum wage in such a high cost of living country.
This is a violation of human rights.
Who bewitched Government to make such a low minimum wage?
They might as well have not wasted their time to come up with this wage, because it is no different than what is going on in the island as it is. Now they have wasted our time and tax$ to sit around debating this to really not come to any conclusion that has brought a change.
Shame on the Government! They all should be fired!
The Governor should step in and change this atrocity!
Unless it’s true that the UK wants to see Cayman destabilized, then why would the Governor step in, if anything the Governor would be laughing and enjoying all of this.
Shame on the Government of the Cayman Islands!
I no longer have any trust in them whatsover!
I will only trust a Government who will declare a proper and right minimum wage for the people.
In this high cost of living here in one of the most expensive places to live in the world, the minimum wage should be no less than $8-9 per hour!
This is a disgrace and is nothing short of slavery!
Shame on you Government of the Cayman Islands!
If this were so in the US the people would be burning car tires and rioting and protesting! And there cost of living is cheaper than ours here!
I think we should riot and protest and burn car tires here in the streets for this atrocity!
This is sick!
Anonymous 1:46 pm, YOU are sick.
Anon 1:46 You are robbing Bellevue a case.
US will have to pay income taxes out of that 7.25, so will receive less take home than the Cayman minimum.
UK have a tiered system so the minimum wage for a 14 year old is not the same as a 25 year old.
Wow. What will they do with all that money??