Labour Minister: Wage increase figure not pulled from thin air
Deputy Premier and Labour Minister Lorna Smith has explained that the government did not select random figures when arriving at the new $8.50 minimum wage.
“We’ve had to take into account all the circumstances in the economy… We did not just arrive at this position on the basis of pulling numbers out of the air,” Smith said in an interview with ZBVI News.
The new minimum wage is set to take effect from November 30, moving from $6 per hour, a rate unchanged since 2016.
Minister Smith elaborated on the meticulous process behind the decision, which involved a comprehensive study led by economist Dr Don Alexander and a committee of employers and employees.
That study by the Social Policy Research Institute (SPRI Global) indicated that the previous minimum wage was insufficient to reasonably meet basic needs. The study also noted the necessity of balancing economic constraints with wage increases. “It was a careful study,” Smith explained.
Smith highlighted that the committee considered a range of figures before making the final decision.
This move is part of a broader strategy that includes regular wage reviews, support for small businesses, and increased investments in workforce development. The proposed changes will be presented at the next sitting of the House of Assembly and will subsequently become a public document for transparency.
Minister Smith also addressed potential concerns about the economic impact of wage increases, particularly regarding inflation and employer affordability.
“We had to take into account the ability of employers to pay, we had to take into account inflation,” she related while assuring that the government considered what is sustainable and fair for the territory during these economically challenging times.
Meanwhile, the Deputy Premier pointed to the global context of the rising cost of living, mentioning recent increases in grocery prices worldwide. She reassured the public that the wage increase is a carefully considered response to these challenges and should not trigger immediate price hikes locally.
We are working on making it better for the people of the Virgin Islands. This is not a BVI phenomenon. It’s a worldwide phenomenon,” Smith added.
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This makes no sense without a plan to reduce cost of living happening at the same time. Prices will be going up from now so bye bye $2.50.
Exactly. Noted that she did not sight what panel of economists that this came out of. Until I see a report from a panel of economists Luarna in the Corna the 70 yr girl wonder pulled this one out of her ear
The Deputy is saying that we have a struggling Economy. The Premier is saying we have a Strong and Vibrant Economy. Other Legislators are saying This is the worst it has ever been in This Territory. Is this a deliberate attempt to Fool the Masses? Ray Charles can see that something is wrong with what is happening in all areas of this Territory. Why can’t this be the period of Change because of our many Challenges for ALL Legislators to put aside their inflated Egos and come together, Pool their Resources for the Betterment of ALL the people of this Territory? What is so hard in doing that? Let this be the Change that most people are yearning to see. Certainly We, the people are being done a dis-service by the way things have been going since 2019. We are stronger Together. Too many Stupid, Egotistic, Bullish Fraudsters in our HOA…..
The deputy premier is now pandering after she made a mess. If this increase is a part of broader strategy including support for small businesses, then wouldn’t it have made sense to give the small businesses the support first so that they could shoulder the wage increase? Who does she think she is fooling?
This is what happens when you don’t have a plan for anything. They are just trying to turn the tide on their high unpopularity and they are making a mess of the country in the process.
And btw Lorna, I want back my vote!
to playing the blame game that it has become the NORM , so miss LORNA should not be supprised at bring coming under attack from her haters who is filled with the xenophobia mentality to blame her for crossing the floor , and closing their eyes to those set of aristocracts on the opposition side who were ganging up on eachother for the almighty POWER and wasn’t thinking anything about (IN THEIR BEST INTEREST OF THEIR COUNTRY ) even the wigged dude who had the HOA Like it was his play
pen until Mark and our premier took him to school , now he’s dreaming bof being g our new premier
All of our elected officials, no matter the party, are all so stupid. Someone needs to explain to them that when you raise minimum wage you are also quickening automation robotics and ai as the task associated with minimum wage tend to be routine and unvaried. Lets see what happens next
Question. Was medicalcore, youreeka and wonmart the main contributing factors of employers? Not accusing, just asking
All of ayo politicians is a waste of time, we have no price control so it makes no sense rasing minimum wage in the first place just like the government workers you all give the raise some months ago,as it happened check the next day or two in the supermarkets at Passea and the one in Purcell their prices raise as well so that extra pay the Gov give some days ago meant nothing because we still in the same predicament
People It’s the New World Order Agenda 2030 being implemented but our legislators either don’t know or dare not step out of line. Fasten your seat belts there is much more to come lots of curve balls and sixes for nines.
This should not be for employees who work in industries that also work for tips. They already make way over minimum wage when you factor in tips. Gonna kill the restaurants for sure.
USA minimum wage has not changed since 2009. Inflation will occur as business inflate prices to account for the increased Labour costs, or people will get laid off! No country ever has increased minimum wage by more than 20% in one adjustment! There is a reason why. But we here just raised minimum wage by almost 50%!
This is a serious mistep for a few reasons
1. I didn’t hear anybody ask for min.wage increase
2. A minimum wage increase inevitably is a total wage increase bse the scales all have to be shifted for fairness
3. A MW increase will inevitably be subsumed into raised prices to offset the additional cost to employers
4. There could have been other methods employed to aleviate costs to min wage class such as increasing the tax threshold cite: MVW
5. Gov’ts must think strategically, it’s better to reduce the cost of living rather than increasing wages (it will never ever be enough)
6. Min Wage Jobs (unskilled jobs) are designed as transient jobs, not for old ppl with responsibilities. There is zero incentive for ppl to upskill and get out of minimum wage jobs if you try and make them comfortable
When do we get yo see this report that we paid for? Or is this another National Security issue?
You are right! This report should have been shared with all stakeholders before taking this decision. Lorna is behaving like a dictator. She intends to make the report public after making her decision. What does that tell us?
If the deputy premier thinks that this will not immediately trigger an increase in cost of living she must be delusional. Businesses in the BVI look for every opportunity to increase prices whether they have been impacted or not. It is definitely a culture at the supermarkets, gas stations, etc.
In the BVI there is a culture of having no regards for the customer. Take for example, the increase in ferry prices to the USVI. No one cared about the tremendous burden that such a steep hike placed on the traveling public.
Did the government consider that there are different workers like the ones getting free housing, water, electricity to go with above minimum wage? Smhhh