[Trinidad and Tobago] Unions call minimum wage increase ‘woefully low’

A number of trade unions in Trinidad and Tobago have been critical of the fiscal measures in budget 2024 and specifically of the proposal to increase the national minimum wage, saying that citizens cannot live on the wages despite the increase, Newsday reports.

The unions speaking out included the Joint Trade Union Movement (JTUM), the National Trade Union Centre (NATUC) and the Federation of Independent Trade Unions and NGOs (FITUN).

The budget was reportedly read on October 2 by Finance Minister Colm Imbert. In it the Government proposed an increase to take the minimum wage from $17.50 to $20.50.

In their joint response, the unions described the increase as “woefully low.”

“The figure translates to $3,553 per month,” the unions responded. “While some may argue that it is better than no increase at all, one must look at the fact that the figure is woefully low, given our economic realities.

“The rental of a two-bedroom apartment goes at a minimum of $2,500 per month; which means that workers are left with a balance of $1,053. In other words, in TT, the Government is asking the majority of the population to live on $1,053 per month.”

The unions pointed out that the increase comes in the wake of the implementation of property tax which could result in increases in rent.

In addition, they challenged the minister’s assertion that a majority of stakeholders supported the increase of the retirement age to 65.

Their response said, “The increase in the retirement age is purported to address the NIB gap between revenue and benefits payments. Ironically the minister identified some 200,000 workers outside the NIB structure in addition to the hundreds of employers who evade their legal requirement to make contributions, but nothing was mentioned about how they are going to increase the collection net and rein in these non-compliant employers.”

The unions reportedly said that the government should seek to provide a living wage.

They said a living wage is calculated by first establishing the cost for a basic decent life inclusive of food, housing, education, health care, transportation, clothing and other essential needs. In contrast, a minimum wage is set by the government through legislation. They called the increase in the minimum wage a “subsistence wage.”

“Why is it that Government talks about allowing the market forces to take their natural economic course but when it comes to wages, it is legislated by the Government?

“One must also ask themselves why the Government continues to pay minimum wage and not a living wage which is demonstratively in the best interest in the economic development of our country?”

Before the budget was read, unions had called on Government to increase the minimum wage from $17.30 to $30 to keep pace with the growing challenges and increased costs of living.

Opposition Leader Kamla Persad Bissessar also reportedly called for an increase in wages; to $25. She too dismissed the $3 increase, saying that while it was positive that there was a rise, it was not nearly enough.

Source: Newsday

(Quotes via orignal reporting)

A number of trade unions in Trinidad and Tobago have been critical of the fiscal measures in budget 2024 and specifically of the proposal to increase the national minimum wage, saying that citizens cannot live on the wages despite the increase, Newsday reports.

The unions speaking out included the Joint Trade Union Movement (JTUM), the National Trade Union Centre (NATUC) and the Federation of Independent Trade Unions and NGOs (FITUN).

The budget was reportedly read on October 2 by Finance Minister Colm Imbert. In it the Government proposed an increase to take the minimum wage from $17.50 to $20.50.

In their joint response, the unions described the increase as “woefully low.”

“The figure translates to $3,553 per month,” the unions responded. “While some may argue that it is better than no increase at all, one must look at the fact that the figure is woefully low, given our economic realities.

“The rental of a two-bedroom apartment goes at a minimum of $2,500 per month; which means that workers are left with a balance of $1,053. In other words, in TT, the Government is asking the majority of the population to live on $1,053 per month.”

The unions pointed out that the increase comes in the wake of the implementation of property tax which could result in increases in rent.

In addition, they challenged the minister’s assertion that a majority of stakeholders supported the increase of the retirement age to 65.

Their response said, “The increase in the retirement age is purported to address the NIB gap between revenue and benefits payments. Ironically the minister identified some 200,000 workers outside the NIB structure in addition to the hundreds of employers who evade their legal requirement to make contributions, but nothing was mentioned about how they are going to increase the collection net and rein in these non-compliant employers.”

The unions reportedly said that the government should seek to provide a living wage.

They said a living wage is calculated by first establishing the cost for a basic decent life inclusive of food, housing, education, health care, transportation, clothing and other essential needs. In contrast, a minimum wage is set by the government through legislation. They called the increase in the minimum wage a “subsistence wage.”

“Why is it that Government talks about allowing the market forces to take their natural economic course but when it comes to wages, it is legislated by the Government?

“One must also ask themselves why the Government continues to pay minimum wage and not a living wage which is demonstratively in the best interest in the economic development of our country?”

Before the budget was read, unions had called on Government to increase the minimum wage from $17.30 to $30 to keep pace with the growing challenges and increased costs of living.

Opposition Leader Kamla Persad Bissessar also reportedly called for an increase in wages; to $25. She too dismissed the $3 increase, saying that while it was positive that there was a rise, it was not nearly enough.

Source: Newsday

(Quotes via orignal reporting)