Minimum wage must be ‘realistic’, says MWAC chair
(CNS): Lemuel Hurlston, the chair of the minimum wage committee has said the recommendations that will be made to government in relation to the mandatory basic pay will be realistic. He told CNS this week that there is capacity in the business community for a notable increase given how inadequate the current rate is.
Given that this is the first review since the national minimum wage was first implemented seven years ago at just $6, which was meant to be a short-lived introductory rate, the chairman said the new recommendation will be considerably higher.
Speaking to CNS he made it clear however, that even though the rate was never reviewed a minimum wage “is a floor pay should not fall below not a direction.”
With only a tiny percentage of workers earning as little a $6 an hour a salary, which the ESO has said falls below true poverty pay, there is a lot of room for an increase. The current survey which the committee is hoping everyone will take has already indicated where the line is on increasing the basic pay before employers start passing that increase in the wage bill on to customers and it seems that an additional $3 can easily be absorbed.
Hurlston agreed that given bosses are admitting to being able to manage a 50% increase its likely they could in reality manage more.
The chair also indicated that this time around the committee could recommend government roll out slightly different rates for different sectors. While there could be a lower basic minimum rate for people working in a domestic settings to help families dependent on carers, Hurlston hinted that the security sector could be subject to a higher basic rate given the growing numbers of guards in response to the rising crime and their increasing importance in keeping the community safe.
Meanwhile, Wendy Moore the committees CITA representative said the tourism sector broadly believes that taking 25% of a minimum wage from a gratuities system, while leaving tips alone, has worked well. She said this will probably remain the share bosses will be allowed to continue using to cover what will be a larger bast rate in future.
But she said in many cases now even the lowest paid tourist workers are earning more than the basic minimum and they are still getting gratuities on top of their wages. Moore also told CNS that, “We think it works well” and “the committee is keen not to put to much strain on the tourism sector as it continues the post pandemic recovery”. It is unlikely, she said, that the portion that can be made up out of gratuity programmes will be cut.
However both Hurlston and Moore said that they were aware of how the gratuities in the sector can vary widely. Those getting a share of the grats on top of their salary for cleaning dishes at large resorts such as the Ritz are earning far more from the schemes than some waiting staff in small local restaurants.
When the 25% of the wider gratuities are used to subsidized staff wages at much smaller restaurants and bars it may absorb all of those gratuities leaving them at the bottom of the pay scale. Hurlston said the committee is still waiting for the formal submissions from CITA. But that the association’s contribution will be very important given that the lowest paid workers in Cayman tend to be in hospitality.
But Hurlston also pointed out that pay was also now very low for unskilled workers in the construction sector and that was another area where the committee is taking a close look at the lowest wages.
The chairman said working out where to pitch the minimum wage was not an exact science.
“There is no right or wrong answer to find,” he said. Hurlston explained it is about balancing diverse circumstances that result in people earn fair pay and enough to live on while not causing economic upset.
Though most experts agree that increasing the minimum wage has almost no inflationary impact, the issue for Cayman is not that it would fuel more inflation but how it will impact the far more complex issues here of under-employment of Caymanians versus the use of low paid permit holders.
While unemployment is at an historic low, which should have seen the market drive up wages the ability of bosses to import overseas labour continues to keep salaries artificially low, as well as having a detrimental and wider impact on society.
Hurlston said this was a very “touchy” as well as complex subject. But he added there are expectations that the committee’s recommendations will curb bosses from bringing in workers on very low pay and by-passing potential local workers. He said the committees terms of reference are very exacting and this issue is part of the remit.
Hurlstone said in recent months WORC has adapted its processes and is streamlining how it matches local people to local jobs more accurately. But he said the changes are relatively new and will take time to have a noticeable impact on the workforce. The combination however, of a more realistic national minimum wage and efforts by WORC to place Caymanians could have a significant positive impact on the labour market.
The committee is now urging workers and bosses alike to take the quick on-line anonymous survey to ensure full public participation before they finalize their report in September.
Townhall meetings on the subject in all of the districts are also expected to start in July.
Category: Business, Jobs, Local News
7:42 am
True,very true indeed.Tips ARE NOT WAGES.Every employer must pay the minimum wages and tips on top of the minimum wages if any.Tips are not law.
the smartest thing you can do is remove minimum wage. Let people accept whatever wage someone offers.
You do not have to work there.
All minimum wage does, is increase inflation. End of story. period.
And minimum wage will constantly go up. Because the moment you raise minimum wage (this is where most of the people are). In 2 to 3 years. The cost of living goes up. So this means that new minimum wage. Is no better than the old minimum wage without the inflation hike caused by raising the minimum wage in the first place.
They are slowly eroding what made Cayman great.
Your suggestion might actually be sensible, were it not for the fact that a billion impoverished people all over the world would gladly accept any employment here, at any rate, and WORC simply facilitates their permits provided no Caymanian applies.
What has been happening is madness.
The libertarian has entered the chat and we are all made dumber by reading this nonsense.
The preamble our Constitution declares: “The people of the Cayman Island… Affirm their intention to be—A God-fearing country based on traditional Christian values…”
The Word of God in Deuteronomy 23:4 says, “Do not muzzle an ox while it is treading out the grain.” Meaning that the worker must not be denied his fair share.
If the Cayman Islands does not espouse a Living Wage, then those words introducing the Constitution are the worthless babblings of hypocrites.
Having said that, there is no way that businesses will not pass on increases in wages to their customers or make other adjustments to account for the potential increase in the cost of doing business. Welcome to reality. God never said that doing the Christian thing does not come with a cost.
Perhaps the least hypocritical way forward is to replace the words in the constitution to reflect reality:
“The People of the Cayman Islands… Affirm their intention to be —A money-loving country based on purely capitalistic principles…”. That way we can continue to pay poverty level wages and avoid the overt hypocrisy. God will still judge us, but at least on paper we will be OK.
“No one can serve two masters, since either he will hate one and love the other, or he will be devoted to one and despise the other. You cannot serve both God and money.” – Matthew 6:24
Hell no Ms Moore and committee.
Grats should NEVER Ben part of the salary package.
Shame on you to even say this.
Any conflict of interest in the Committee though?!
Tourism workers should be given a lump sum up front for the Slavery wages of the past decade.
Pension contributions will also increase so an inflationary affect is inevitable. Businesses will either pass on the cost to the consumer or cut staff hours to control this cost.
Hoe many people on this committee own a business and have to make a weekly payroll?
Way to go following Mel Zelaya for president of Honduras. He did the same thing years ago causing many people to be laid off and prices to rise.
I too, am a bit of an idiot, when it comes to economics. Thankful for my Caymanian education.
Take out restaurants hardly gets any tips. yet they still only pay 4.5 p h
May I suggest an effective eye-opening exercise?
Assemble groups of high ranking and highly paid officials, business owners, developers, media etc, etc, and create group exercises with scenarios of how the poor actually struggle here and make them face life as them, attempting to pay rent, utilities, eat and care for families.
A civil “Christian” society should have a labour rights board that represents the humanity of workers and their conditions. It should have resources, investigative teeth, and speak directly to WORC and DCI about employer conduct and/or abuses, where they might exist. It should offer a binding arbitration and tribunal mechanism without fear of retaliation and vengeance. There should be a basic code of conduct for those sponsoring the livelihoods of imported permit workers as part of the permit application process. Employers who endorse the application also attest that they accept responsibility for that visiting permit worker. It should mean not only paying and situating them properly, and taking an interest in their happiness and welfare, but also guaranteeing minimum steady hours of work. Pro-bono legal assistance CSR from the robust local legal fraternity.
I am very concerned about a potential rise of 50% or more in the minimum wage. I worked a minimum wage job here at $6 an hour before I retired, and we managed to get by OK, even owning our own home now. But now I am retired and living off savings, I am very concerned about inflation. Putting up minimum wages has to be done of course, people shouldn’t struggle to feed and house themselves…but if they put up the wages for the workers, all of the costs on the island will go up, all of the things we buy…and then retired people will struggle even more than we do now.
Society needs a major change. More fairness, more equality, less money for the mega rich who just don’t need that much. But how we do it short of a revolution I just don’t know.
What was post war Cayman like?
if they raise the minimum wage 1%, companies here will raise their prices 5% and cry increase cost of doing business. there is no checks and balances in this economy ran by Pirates.
Socialists of the world unite eh comrade?
Don’t threaten us with a good time
You are wrong except in a monopoly situation. Where there is competition for business, excess profits will eventually disappear as more and more players enter the market to grab a share of the “easy money” so to speak.
This is a free market economy and if that’s not for you, there is a workers paradise just to the north of us that will welcome you with open arms. So many ignorant generalisations on this thread. Yes there are bad operators out there, but don’t paint all businesses with the same brush. The only sustainable businesses are the ones that value both their employees and their customers.
I don’t know where in the world tip is considered as salary.
Yes, I accept that this increase will affect everyone due to the cost increase due to salary raise. But we don’t have another option.
Basic pay goes up 6 to 9, that means who earn 1000 dollar earn 1500… then the question is who earn 1500 earn ….2250 ? then it goes on eventually everyone will get the increase…. it will take care of the price increase.
The minimum wage should not be less than $15 per hour. $20 would be proper.
Hell no, prices will just shoot up!!
Proof of this ever happening please, otherwise its conjecture.
Who are they talking to in the private sector? I manage a group of over 200 entry level employees and nobody from that group has asked what I can absorb. Put the minimum wage anywhere you want but understand that any significant increase will be passed on to consumers in the form of higher prices. There is simply no other way to offset increased payroll expenses.
Has anyone in the labour brain trust ever had to make payroll? Interesting group they put together.
Widely, this is a fallacy. Businesses have been promptly hiking consumer prices all the way along. Faster than the inflationary rate in many cases, and often without commensurate worker pay increases, or necessarily delivery of steady work hours and/or benefits supports. Profiteering off the backs of workers should not be a bogus institutionalized COVID-recovery business entitlement. Many of the tourism businesses themselves where also subsidized heavily by the public purse. There is no honorable excuse to continue to bamboozle workers from a minimum living wage. If the business model can’t support its payroll, trim staff and/or put it in liquidation. DCI should be pulling the T&BLs of abusive employers.
Signed Cuba and Venezuela and Zimbabwe.
wondering what your net profits are? 10% maybe 8%? so you are ok to be a slave owner, and you must make the money? these poor people are starving, and all you conncern yourself with is your business
I get tips. But I’m still on the same $4.50 an hour for the last 13 years. I know the owner is making a lot more than he was 13 years ago. Doesn’t seem fair. Class war now.
Laughs in French
And do you not think prices will soar.
Exactly the same story here
Hoping for an another 50c an hour.😀
An inflationary proposal at a time when inflation is a problem makes no sense.
Let’s kick inflation into overdrive and drive up the cost of business.
Nobody is forced to work.
CIG must fill 100% of government jobs with Caymanians only.
Everybody should be paid a million dollars per year regardless of skill and worth ethic.
CIG well on their way to 100% Caymanian employment. The unemployables have been rescued!
CIG has always been an extension of NAU. Most ambitious Caymanians aren’t in CIG.
Come to work for government and you will see how lazy we aren’t. Every organization has lazy staff but for the most part CIG employees work hard. I work for government and I have two separate jobs. Let civil servants strike for two days and you lazy keepers will glean an idea on what services we provide.
I work for CIG too, have done for 11 years, and EVERYONE is lazy, myself included.
We use pretty much worst practice, HUGE inefficiency and have zero staff accountability or discipline.
Anywhere else in the world this wouldn’t be tolerated, but in Cayman we are consistently praised for the work we do.
Absolutely hilarious.
BS trolling, 2:49
Imported unemployables are overrunning Caymanians now.
the place is like Bellvue already
lots of take out restaurants/Cafe payin 4:50 p h
and only gets like 5 $ per week tips.Thats a crying shame and needs to be looked into.
Hotels and restaurants Need to pay the minimum wages like everyone else. They making lots of money. Tips are not wages, tips dont come from the employers, it come from the guests. Can’t borrow money from Banks on tips, pension are not based on tips etc, etc,etc. Bottom line everyone MUST pay minimum wages.