Balford Henry Minister of Labour and Social Security, Horace Dalley, seems destined to be one of the more active Labour Ministers since independence. That is if he is able to fulfil the promises that he is making to the sector.
His decision to call to order the Labour Advisory Committee (LAC), after one year of idleness, was a bold attempt to get labour market reforms back on track.
There is no doubt that the Government, and some of his predecessors, have deliberately skirted around some of these issues, because of their controversial nature. For example, with the Church opposing a Flexible Work Week, it seemed like an election season wouldn't be the right time to be debating it.
The same goes for the amendments which were proposed to the Labour Relations and Industrial Disputes Act (LRIDA) and the Trades Unions Act, not to mention the reforms in areas like pensions which, although not strictly labour reform measures, are part and parcel of the whole process to re-organise the labour market.
One of the issues which arose during the recent LAC meeting was the need prepare a schedule of meetings, so that the members of the Committee would not have to wait until the Minister feels inclined to call them to a meeting.
The LAC which comprises labour, management and government experts is an advisory body to the minister and there is no lack of issues that should keep that body idle for over a year because of political expediency.
But the chickens always come home to roost. Mr. Dalley realises this and has become proactive in getting the show back on the road. In the meantime he has made two very interesting moves:
First he has decided that, instead of reviews of the National Minimum Wage and minimum rates paid to security guards being subject to his whims and fancies, they shall meet on an annual basis to review the rates.
Based on that decision, the National Minimum Wage Advisory Commission had been meeting at the Ministry since February to decide on a new level of minimum rates. The Minister had given them a deadline of March 31, which they were unable to meet. Neither were they able to meet the extended deadline of April 30, and they just made the May 31 deadline by a couple days. But, now that Mr. Dalley has the new recommendations in hand, what will he do?
The fact is that, if minimum rates are to be increased on an annual basis, then those earning the rates cannot expect the kind of increases which were awarded previously. For example, the 50 per cent increase awarded in January, 2002.
My understanding is that it was this issue which kept the Commission occupied so long. Having been used to increases as high as 50 per cent, which were welcomed by minimum wage earners, they were now being forced to look at increases more tied to the annual inflation rate.
With inflation being conveyed as single digit it is, therefore, expected that the new NMW will go up by single digit. However, as a compromise, we are likely to see a 10 per cent increase in the rate which would up it from the current $1,800 per week to approximately $1,980 per week. But, will workers be satisfied with a 10 per cent increase in minimum wage, especially after the intemperate behaviour of the dollar in recent weeks and the addition to GCT to numerous formerly non-taxable items?
THERE SHOULD BE AN OUTCRY
There is bound to be an outcry that anything in the order of ten percent is inadequate. But, on the other hand, if we are going to have annual reviews, it is very unlikely that minimum rates will rise above inflation rates.
The other recent interesting move made by the Minister, is his decision that in terms of any changes made to these laws affecting employers, they will be given notice of at least 60 days.
Mr. Dalley has explained this as the reason behind the decision to introduce new NIS benefits three months before the employers and their employees will be required to start paying for them. He added that, in the meantime, the National Insurance Fund (which is now at $24 billion) will be used to finance the benefits until the increased ceiling comes into effect on October 1.
These are smart moves by the Minister which obviously comes from wise advice and progressive thinking.
Mr. Dalley seems to be moving in the right direction, unlike some of his predecessors who seemed reluctant to make these bold moves, he seems destined to make his mark on his portfolio, if only he fulfils the promise.
Balford Henry is News Editor at the Gleaner .
