Bookmark Jamaica-Gleaner.com
Go-Jamaica Gleaner Classifieds Discover Jamaica Youth Link Jamaica
Business Directory Go Shopping inns of jamaica Local Communities

Home
Lead Stories
News
Business
Sport
Commentary
Letters
Entertainment
Let's Talk Life
Saturday Features
More News
The Star
Financial Gleaner
Overseas News
The Voice
Communities
Hospitality Jamaica
Google
Web
Jamaica- gleaner.com

Archives
1998 - Now (HTML)
1834 - Now (PDF)
Services
Find a Jamaican
Careers
Library
Power 106FM
Weather
Subscriptions
News by E-mail
Newsletter
Print Subscriptions
Interactive
Chat
Dating & Love
Free Email
Guestbook
ScreenSavers
Submit a Letter
WebCam
Weekly Poll
About Us
Advertising
Gleaner Company
Contact Us
Other News
Stabroek News

Minimum wage policy and productivity
published: Saturday | January 26, 2008

After the announcement of a rise in the minimum wage earlier this week, the reality of those who should have felt it most came through in yesterday's Gleaner.

The headline 'Little effect on living standard' was, perhaps, predictable, but it was still very instructive what those who are at the very bottom of the official salary scale had to say about the increase in the weekly rate from $3,200 to $3,700. These are, after all, totals which make a mockery of the 15.6 per cent increase, which may sound impressive all on its own.

Eighty-year-old Lucille Wright's pithy observation of her and others' inability to buy certain basic food items was certainly poignant.

As is the case of the security guards, who face a very clear and present danger in the line of duty. With the weekly rate for an industrial security guard moving from $4,700 to $5,500, it is not much to write home about.

The setting of a minimum wage as a form of protection against employees at the lower end of the wage scale being exploited is understandable.

The reality is, however, that a hike in rates that is not linked to an overall improvement in productivity becomes meaningless. In the short to medium term, high production costs eventually erode 'the pittance'.

By itself, the minimum wage situation is striking. Coming at this time when the regulation o investment schemes, thus exercising more official control of the reportedly $200 billion or so in them, is a burning issue, it makes the disparity between the 'haves' and 'have nots' even more glaring.

And we sincerely doubt that those at the very bottom of the salary pile will ever have enough money to access high-interest rate investments, regulated or not.

It is also ironic that the security guards are so badly paid when, because of the crime situation, theirs is a growing industry.

One would think that, with more security services - hence, personnel - being required, the price of labour in the sector would go up.

This, however, has not been so and it exposes a sad fact that will continue to keep minimum wage increases well behind the inflation rate.

We simply have an immense pool of persons whose marketable skills are restricted to physical labour or monotonous, repetitive, low-intellect tasks.

So, while the minimum wage increments have little real benefits for those who are employed in the lowest of the wage scale, there is no comfort in sight.

For, unfortunately, for various reasons, we continue to turn out persons from the education system who have very little but their strength of limb and sharpness of eye to sell, in an economy where even graduates of tertiary level institutions leave Jamaica in search of a better standard of living.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.

More Commentary



Print this Page

Letters to the Editor

Most Popular Stories






© Copyright 1997-2008 Gleaner Company Ltd.
Contact Us | Privacy Policy | Disclaimer | Letters to the Editor | Suggestions | Add our RSS feed
Home - Jamaica Gleaner