David Salmon | The Gospel of sufferation

The ability of Jamaicans to survive on Jamaican salaries, paid in local currency in Jamaica, is a wondrous miracle to behold. Jamaicans are not only blessed with the skill to stretch their salaries to cover basic needs, but they also possess the Elijah-like ability to ensure that a handful of flour and a jill of oil can feed the whole family and the occasional visitor.

You can devote a whole book in the Bible called the Gospel of Sufferation detailing these skills as frankly speaking, Jesus would be proud. As we reflect on the words of wisdom in this book, it is necessary to ask ourselves, why do policymakers take such a haphazard approach to the minimum wage? How can we ensure that wages do not fall behind the cost of living?

After four arduous years, the Government of Jamaica has heard the plight of its people and has raised the minimum wage. Instead of $7,000, minimum wage earners will now receive an eye-watering $9,000. Now, some Jamaicans will have the opportunity to exercise another miraculous ability: using this paltry rise in wages to cover the rising cost of living.

This 28.5 per cent increase is below the 30 per cent suggested by Lieutenant Commander George Overton, president of the Jamaica Society for Industrial Security (JSIS), and John Mahfood, president of the Jamaica Manufacturers and Exporters Association (JMEA). When capital is more generous to labour than the Government, you know something is amiss.

NO SET METRIC

Let us bear an important point in mind: there is no set metric to determine how the minimum wage should be set. So, for example, the minimum wage went up by 12.9 per cent in August 2018, by 10.7 per cent in March 2016, by 12 per cent in January 2014, and by 11 per cent in September 2012 while the Jamaican dollar has moved from US$1 to J$88.12 in September 2012 to US$1 to J$154.56 in mid-March 2022.

If we look at just the rate itself, not adjusted for inflation, the minimum wage over 10 years has increased by only by US$1.49. Given that many Jamaicans use the exchange rate as their price index, this increase is basically chicken feed. Well, it would be chicken feed, but persons cannot afford that either. The price of chicken feed increased last month.

The other challenge with the sporadic adjustments in the minimum wage is that the new wage rate inevitably falls behind the inflation rate. The current Minimum Wage Act makes no provision for how often the minimum wage should be changed. It only outlines that the responsible minister sets the minimum wage based on recommendations made by the Minimum Wage Advisory Commission.

The commission only “advises” the minister, and it is still up to his discretion to determine what the rate should be. The law also does not establish who should sit on this three-member body. That is determined by the minister. Special members representing employers and workers may be appointed, but these members have no vote during the commission’s proceedings.

Not surprisingly, the number of times this commission should meet is also not specified. The law only states that the “Commission shall meet at such times as may be necessary or expedient for the transaction of its business”. This arrangement creates opportunities for inconsistent and irregular increases, which is neither good for workers who live the Gospel of Sufferation daily nor for businesses that have to plan for these changes.

INTERNATIONAL SITUATION

Other countries have already tackled this problem. In France, the minimum wage increases annually based on inflation and the average salaries of French workers. In Australia, the Fair Work Commission adjusts the minimum wage annually based on economic factors. In Costa Rica, the minimum wage is reviewed twice a year. What these examples illustrate is that for consistency to be established, the minimum wage should be in the hands of economic officials rather than politicians.

The current Budget presents the perfect opportunity to expand the discussion beyond the need for a liveable wage. While this is an important aspect of the conversation, the absence of a liveable wage is symptomatic of a wider problem. That is political actors determining the minimum wage. Until we can separate these decisions from political considerations, then Jamaicans will continue to rely on lessons from the Gospel of Sufferation.

David Salmon is a public policy student at the University of the West Indies. Send feedback to davidsalmon@live.com or tweet him @DavidSalmonJA.