Conflicted minister seeks minimum wage do-over

| 22/07/2024 | 111 Comments
Labour Minister Dwayne Seymour answers questions in Parliament on Monday

(CNS): Labour Minister Dwayne Seymour has effectively rejected the findings of the Minimum Wage Advisory Committee and wants a do-over of the report they submitted last year. Speaking in parliament on Monday, the minister, who employs minimum wage workers in his airport services business, said the UPM wants the committee to look at the minimum wage again based on different rates for different sectors.

In the meantime, in July 2025 tourism workers will get an increase to just $7 per hour, far short of the $8.75 that was recommended, and employers will no longer be able to use gratuities to supplement wages.

Seymour has dragged his feet on the report and its recommendations since MWAC Chairperson Lemuel Hurlstone handed it to the government in October 2023. It was not made public until March this year.

The minimum wage is currently just CI$6 per hour. Although only a few thousand migrant workers are on this exceptionally low rate, inflation over the last five years has pushed the minimum wage below the absolute poverty line, which was previously estimated to be around CI$6.75 per hour in Cayman.

The proposed increase from CI$6 to CI$8.75 would have directly benefited an estimated 10,457 workers. But many workers, including Caymanians, who are earning far less than the recommended $8.75 will now have to wait at least another two years to find out if their salaries will increase at all, as Seymour has hinted that some sectors should not see any increase.

The decision to raise the minimum wage by just one dollar per hour for those working in tourism might be an indication that an increase across the board, if it ever comes, is unlikely to make much of a difference, as it would increase pay by just $40 for an average working week, and inflation will continue to bite into the value of low earnings.

The recommended rate was a 46% increase on the current rate, which was rolled out in 2016, but given the impact of inflation during that time, the value of the wage has been dramatically reduced. The committee found that most businesses could sustain an increase to $10 per hour, though they did not recommend this rate due to fears of inflation.

The current minimum wage is slightly less than 28% of the average wage in the economy. “Compared to regional and international standards, this is a very low percentage,” according to the International Labour Organization, which assisted the MWAC.

The report noted that there are only seven countries in the world with a ratio as low as the Cayman Islands, and most countries have a ratio of around 50%. Cayman’s minimum would need to be around $10.50 per hour to get close to half the nominal hourly mean wage rate.

As Seymour answered questions from Progressive Leader Roy McTaggart, who did not raise the minister’s conflict on this issue, he said the government wanted to take another look and was establishing a new committee.

“While giving careful considerations to the implications for Caymanians as well as general economic concerns… a decision was made to initiate the reactivation of a Minimum Wage Advisory Committee with specific instructions to investigate and recommend a sectorial approach,” he said. “It was also decided that, effective from 1 July 2025, employees of the hospitality and service industry will be the only sector to receive an increase in the minimum wage to seven dollars per hour.”

The minister said the current ability for employers to use 25% of the gratuities pool to supplement that $6 will be removed on 1 July. But until the new committee is formed and completes its work, all other sectors will remain at $6 per hour.

Seymour said the new committee had not been formally appointed but it was something the government hoped to get started as soon as possible. Some of the committee members from this latest review will be asked to serve on the new committee, he noted.

McTaggart asked him what would happen to the rejected report, but Seymour claimed the report was not rejected. At that point, for the first time, he thanked the committee publicly for the “extensive” work they had done, but noted that they had based that work on what was asked of them.

“The caucus… needed more information and data on the sectorial approach,” he said. “Members felt that we could not just do a blanket minimum wage on all sectors because of the economic impact that it may have on Caymanians who may not see an increase in their own salaries.

While he did not clarify what he meant, it appears the minister was talking about domestic helpers. However, the rejection of the report will not assist Caymanians earning less than CI$8.75 an hour who would have benefited from the increase.

See the brief answers on CIGTv below:


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Category: Policy, Politics

Comments (111)

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  1. Anonymous says:

    In truth, a maximum wage would be of greater long term benefit to Cayman.

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  2. Anonymous says:

    Shame on those who pay their helpers CI$6 an hour and think that’s OK because “they are still here, aren’t they, so what’s the problem”.

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  3. Anonymous says:

    all the politics of “what should the minimum wage be?” aside…what’s another review by another committee going to do?

    There’s only so much research and data that can be reviewed. There are only so many conclusions that a board will or won’t come to. It’s the job of Government to make a decision.

    If the decision is to hold the wage as is, then have the balls to say so and make that your decision. Don’t hold it as is and say there’s going to be another committee which you will again ignore in a year’s time.

    Joker

  4. Anonymous says:

    What do we expect from the worst government in the history of the Cayman Islands?

    23
  5. Sowell's Wisdom says:

    “Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
    Thomas Sowell

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    • Anonymous says:

      Making the case for slavery? Honestly, this attitude is why Cayman has a crime problem.

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      • Sowell's Wisdom says:

        Looks like you missed the point entirely. You may be exactly the type of worker Sowell’s talking about in this quote. (see Basic Economics by Thomas Sowell)

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  6. Anonymous says:

    And after shooting down a minimum wage increase for the poorest people on this island, they will happily recommend and approve another large increase and/or bonus for themselves.

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    • Anonymous says:

      How can you expect an uneducated unemployable buffoon to see beyond his own interests.
      He is kept in office by Jamaicans , who also keep Saunders employed, and all they care for is their next hand out.
      UDP/upm has always been a “what’s in this for me” party, and this lot are no different…ffs let’s think before we vote.

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  7. Anonymous says:

    The markets dictate the rates and wages. If people wouldn’t work for it the wages would already have been raised. But when Caymanians refused to work for slave wages they called us lazy. Now you lazy bums get back to work for your $6.00 – get back to living 5,6,7,8 to one house, you contributed to this by your inability to see what you were destroying.

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    • Anonymous says:

      Markets have shortages and rules of supply and demand. Our open borders policy and refusal to follow our own laws means that there is an unlimited supply of cheap labor that will never run out. It is literally destroying us.

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  8. Anonymous says:

    I have thought long and hard about this, and there is one condition under which I would support a minimum wage freeze of $6 per hour for the next 20 years.

    All MPs will be paid minimum wage for the next 20 years to show how much they are willing to sacrifice for their country.

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  9. Caymanian says:

    Here is my position on the whole thing.

    I believe there should be a committee formed on the cost of living first and foremost and let me explain why.

    Currently the cost of living in Cayman is EXTREMELY HIGH. This measure will in no doubt increase the cost of living.

    But the Cost of Living Committee (COLC) job would be ongoing. All revenue measures should be put to the COLC for analysis and their findings should be part of the presentation to the LA. No COLC reports means No motion acceptance.

    The report should basically say who will be affected and by how much. It should come with recommendations to mitigate impact. There should be a listing of sectors or categories of things that MUST get a COLC review.

    COLC should be made up business leaders, accountants, legal experts, etc to address various aspects of a proposal. Business leaders to say how they feel it will impact the business sector, accountants to draw out the amounts, legal minds to ensure the proposals are legal to do. Etc.

    COLC cannot report to a minister. They need to be an independent body. The minister who presents the idea would call them to the LA to make their presentation. The minister would be given cliff notes 48hrs in advance so he/she can prepare for potential rebuttals.

    Once we have this formed then we can have a minimum wage proposal done. COLC would do an impact assessment much the way we get EIAs done this would be an Economical Impact Assessment.

    What we need to know are a few things.

    I draw this in an example. If someone is making $6/hr and is raised to $8.75/hr what is their true take home after COL due to increases?

    People. If 10,457 people of 50,000 workers in Cayman are affected then you can be damn sure cost of living will go up accross the board. What is that cost of living increase?

    What can happen is that people who may not be in that range may become net take home in that range.

    All this needs to be evaluated.

    I am pro increase in cost of living but I feel this whole system needs to be mapped out and politicians removed from the equation.

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  10. Caymanian says:

    He should be automatically recused. He has a vested interest in the delay of this passing.

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  11. Anonymous says:

    Or in this case, met and recommended something be done, only to see it crushed by the Minister who didn’t like the fact it would personally cost him money and offend all his voters who employ helpers

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  12. Anonymous says:

    John John’s logic here in layman’s terms:

    If we raise the minimum wage for people like domestic workers, this would mean that many Caymanians (voters) would no longer be able to afford their slave labour and have to resort to doing work around the house themselves.

    This is obviously bad for John John’s reelection ambitions – hence John John squashes a worthy law change for his own ultimate benefit.

    All quite simple really.

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    • Anonymous says:

      most countries run by religious fundamentalist are brutal to their poor. They spoon out some charity and feel good about themselves while keeping them impoverished. A country With so many rich people and such a high cost of living should be ashamed!

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    • Anonymous says:

      Re: Jon Jon. His employees may be unskilled and therefore referred to as minimum wage workers, but that does not mean he pays them $6.00 per hour. He is likely paying the unofficial minimum wage dictated by market forces which is in the range of $8.00 to $10.00 per hour.

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  13. Anonymous says:

    May I be so humble to recommend that someone sets up a Facebook page of all those businesses that pay even one of their workers the minimum wage. Then residents of Cayman, with any humanity in them, can do everything in their power to avoid those businesses. Shun and shame them.

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    • Anonymous says:

      Why does “someone” have to do it, why don’t you?

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    • Anonymous says:

      Market Street (you know, the Canadian mafia) are the primary ones. below minimum wage. made up via grats and then steal from their cash paying customers by rounding up the bill and then they have the nice attitude of paying their staff via cheque, ya know, in the hope they lose it probably or their minimum slave wage staff get robbed walking to the bank with it so it never gets cashed.

      Strange how Canadians work aye? scum.

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  14. Cayman Against the Minimum Wage says:

    May I be so humble to recommend that someone sets up a Facebook page of all those businesses that pay even one of their workers the minimum wage. Then residents of Cayman, with any humanity in them, can do everything in their power to avoid those businesses. Shun and shame them.

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  15. Anonymous says:

    It’s not only him. Those who can vote, did so and allowed it to happen. All for one & one for all.

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  16. Anonymous says:

    He is only productive when the moon is full.

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  17. WBW Czar. says:

    Dwayne the brain strikes again!

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  18. Anonymous says:

    What an absolute scum bag. Simple as that. Modern day plantation owner.

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  19. Logic 101 says:

    I am sure they will manage to put through their own pay increases again though without any need for additional reconsiderations or reports, regardless of the impact on the public purse

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  20. Anonymous says:

    John John and this government are a disgrace. Elections cannot come fast enough.

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  21. Anon says:

    And these people will walk into church next Sunday without batting an eyelid, while people starve on their watch.

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  22. Anonymous says:

    57:36 in the video, – ‘the minimum wage regime’, there you go, the silent part said out loud in how ‘the honorable minister of labor see his and his Govt role in serving ‘their’ people…

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  23. Anonymous says:

    There also needs to be a serious crackdown on “fake” work permits. I get asked weekly if I will “take out a permit” for someone and they seem shocked when I say no. Then people scramble to find illegal work. This will reduce the number of people on island and will increase available housing which will also make it more affordable.

    And please…increase minimum wage at the same time!

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    • Anonymous says:

      You forgot to mention that the person asking for you to take out a permit also offers to pay for it as well as a weekly “fee”. Seymour will never allow that to be changed because then all his pals would loose the extra cash plus the developers would loose all their cheap ass labor force since then they would have to hire legal contractors instead of all these buy a work permit bums off the street.

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      • Anonymous says:

        And it gets even worse because the person coming to a fake job has likely borrowed money from a “friend” to get them here and that friend is now charging them 25% interest and they are paying for their own permit and health insurance. Such a scam!

  24. Anonymous says:

    Bodden Town – please do not elect him again. Surely you see how he is in this only for his own interests and makes decisions based on what will benefit him and not what will benefit this country.

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  25. Soon Leaf says:

    Foreign workers who are not happy with their pay can leave. It is really simple. No one forces then to come to Cayman. Let the market set the pay for foreign workers. No shortage of people who would like to come to Cayman, whose system exists to benefit Caymanians.

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    • Anonymous says:

      As long as there is an endless supply of cheap slaves, Caymanians will have their wages suppressed.

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    • Anonymous says:

      What about Caymanians trying to get by on $6/hour?

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      • Anonymous says:

        I think that’s a big issue why would an unemployed Caymanian choose to come off benefits to work for $6 an hour. It may push unemployment up.

      • Anonymous says:

        This column is a fiction. They don’t exist. NAU equiv is $14/hr, why would they give that up to work for $6/hr?

    • Anonymous says:

      You are a disgrace. Wish you would leave too.

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    • Anonymous says:

      That’s nice. Let us see your papers to prove you belong here? Amazing how shy people are about the rampant sexual assaults and rapes at the hands of predatory business owners that essentially own indentured servants because consent doesn’t exist when you’re asking someone to choose between the frying pan and the fire.

      Just as it doesn’t when you’re a politician with the power to make a persons life on these Islands impossible, Caymanian or not.

      No doubt you would ignore the inherent abuse of power though and say they could always just say no.

      You will be on the receiving end of that abuse of power one day, whether it’s a permit taking your job, whether it’s getting sacked for being lazeh but you will. And then you will be on CMR complaining about how you’re treated in your own country whilst ignoring how the majority are treated every single day.

      Have a think.

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      • Anonymous says:

        “And then you will be on CMR complaining about how you’re treated in your own country whilst ignoring how the majority are treated every single day.”

        We don’t care how you’re treated to be honest. You chose to come here, we never asked all you to come.

    • Anonymous says:

      That’s right, we can go to any country whose people are living in absolute impoverished conditions and bring them here to work because they are CHEAP and we need all the money to live our lifestyle of the rich and famous.

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  26. Anonymous says:

    Know who also didn’t make minimum wage? Joseph when Mary was pregnant and she was still a virgin and everyone laughed at Joseph. It turned out to be the best story ever.

    And also Jesus choose to ride a donkey, a jackass – instead of getting a horse.

    I hope that explains it.

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  27. Anonymous says:

    This sounds illegal. From a human rights perspective, please ask someone to explain why service industry workers should earn more than others (by law).

    Under current law the gratuity makes up the difference. That is going away though, so by definition service industry workers now have more ‘rights’ to earn money than others.

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  28. Anonymous says:

    Thanks for nothing for the crumbs. You, who have made so much on our backs should be more willing to give less to yourself and more to us.

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  29. Anonymous says:

    Anyone else notice that Marl Road seems to ignore certain critical subjects ? Wanna bet she has minimum wage employees on her payroll?

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  30. Anonymous says:

    All crawling out of the woodwork again near election time and still babbling producing nothing – how much they earning again…

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  31. Anonymous says:

    this should speak volumes when it comes to the next election

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    • Anonymous says:

      UPM strikes again. Remember these guys are a Caymanian first Government.

      If this is what Caymanian first looks like God help us.

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      • Anonymous says:

        it would be interesting to know how many Caymanians actually make $6 per hour. Yes, that rate stops Caymanian’s from wanting to be in the industry, but would they go in it if it was more? the 1000 unemployed Caymanians are not what I am talking about. I am talking about employable Caymanians. the educated and the people not looking for handouts.

        • doodlebug says:

          I suggest there are not 1000 genuinely unemployed Caymanians who are actively looking for work.
          Many will be telling the NAU they’re looking for work, cos the hand-outs are sweet! This is a scam. They ain’t lookin for work.
          Why work when you don’t have to? Let the gov’t (ie taxpayer) pay your bills.

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          • Anonymous says:

            yes the number 1000 is out of work Caymanians. of that, probably 400 are unemployable. of the remaining 600, probably half are trying to get work while the remaining living life on the gray train

    • Anonymous says:

      Cayman we wanted grass roots politicians. This is what grass roots look like.

      Imagine asking Bernie Kenneth Jay and the rest of the UPM to solve our most complex problems.

      2025 we must do better.

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    • Anonymous says:

      It wont though 6:14. As long as Mr Seymour kisses up to all those voters in Bodden Town who look and act like him he’ll get reelected, especially the Jamaican Caymanians. He’s there for life.

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  32. None says:

    such a dam fool!!

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  33. Anonymous says:

    JJ won’t have to pay his slaves anymore money

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  34. Anonymous says:

    I am completely flummoxed as to how an individual like Dwayne Seymour has been given so much power and control over such important matters that affect so many people – is is utterly bewildering and frankly irresponsible.

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  35. Anonymous says:

    What a disgrace. That man should be ashamed of himself.

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    • Anonymous says:

      classic case of Dunning-Kruger effect.

    • Anonymous says:

      Honorable Seymour you are our future leader and we love you along with the rest of your esteemed leadership team. Where else could we ever find such experienced and capable leaders like all of you. Never let these detractors slow you down as President Trump says, FIGHT! Perhaps you should kick the complainers from our country. One love sir.

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  36. Anonymous says:

    Cayman’s NAU benefits far outstrip the minimum wage level, meaning there can’t possibly be any sane Caymanians working for less than the handout they’d qualify for.

    Minimum wage is therefore about human dignity for imported labours. At $10/hr, thousands of idle duplicated work permit residents would be sent back home, reducing crime, congestion, while improving quality of life. The best and brightest get retained, everyone else goes home.

    Why is Seymour sending minimum wage workers into a transportation security area?

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  37. Anonymous says:

    strange thing is …the only people not complaining are the people who are on minimum wage….
    push up minimum wage and you push up the cost of everything….can cayman cope with further price increases????

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    • Anonymous says:

      This is a very good point. We can count on prices increasing in restaurants next year.

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    • Anonymous says:

      As usual in Cayman – Business interests come first and people are secondary if considered at all

      Heres a new perspective for you – if your business can’t afford to pay above poverty level wages without jacking up prices – your business should not exist

      You need any further clarifications?

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    • None says:

      such a dam fool!!

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  38. Anonymous says:

    Why is this being delayed to July 2025, is that a misprint? Good grief.

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    • Anonymous says:

      July 2025 am election would have happened a couple months before. Silly me I am here hoping he won’t get re- elected and the new Minister will have the empathy to change the amount by a couple of $$. I guess I can still dream!

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  39. Anonymous says:

    A Minister who has a financial stake to refuse committee recommendations – well Cayman, you elected him, you literally will now pay the price! But will you actually do anything at the next election, or just complain and somehow blame expats for this ‘home-grown, home-elected’ official? I suspect not.

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    • Anonymous says:

      Caymanians didn’t elect him. I’d love to see how many of his voters are eligible to run for office. That will really prove whether his voters are Caymanian or not. Simple as that.

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  40. Anonymous says:

    The Minister very clearly should be recused from these debates and any decisions to be made.

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  41. Anonymous says:

    Jamaica recently raised their miminium wages to 2:
    50 U S p h

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    • Anonymous says:

      Jamaica increased minimum wage from JMD$14,000 per week to JMD$15,000 as of June 1. That’s USD$89.72 to USD$96.13 per week (at USD$0.0064 forex rate). Good luck retiring to the Riviera on that. This is not a good example of humanity. We don’t want that here.

  42. Anonymous says:

    A committee is a group of people who individually can do nothing, but as a group can meet and decide that nothing can be done

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    • Anonymous says:

      But in this case the committee ‘did’ decide that a very specific (and fair) ‘something’ can be done. Minister simply doesn’t like it and has cast it aside.

      • Anonymous says:

        Real evil and wickedness.
        The only reason those tourism workers will get a $1 pay raise is because they will LOSE grats!
        And that will start happening from now! The Minimum Wage committee woman said this is how it must be. She say so from last year publicly!
        So now we have a bigger mess– No more adding work gratuities

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