Hoteliers concerned about plans for minimum wage hike, livable wage

Hoteliers are on high alert regarding the government’s plan to review and increase the minimum wage and implement a new livable wage, according to Executive Director of the Bahamas Hotel Employers’ Association Odecca Gibson.

Last week, Prime Minister Philip Brave Davis signed a memorandum of understanding with the United Nation’s International Labour Organization (ILO) for the adoption of The Bahamas’ Decent Work Country Programme which, among other things, provides for the enactment of legislation to establish a livable wage, a comprehensive review of the Minimum Wage Act and an increase in the national minimum wage.

Gibson said it is among the most pressing issues for the hotel industry, second only to the ongoing impact of the COVID-19 pandemic.

“In addition to our members’ concerns about the continuing impact of the COVID-19 pandemic on business, right now for the association the issue is the increase in the minimum wage and the introduction of a livable wage,” she said while addressing the Bahamas Hotel and Tourism Association’s annual general meeting.

“You will recall that prior to the general election there were several pronouncements made concerning a memorandum of understanding between the then opposition Progressive Liberal Party (PLP) and the National Congress of Trade Unions. At that time the association took note of the fact that it was agreed there would be a minimum wage increase and that there would be the introduction of a livable wage. Of course, events have now overtaken those pronouncements and we now know that as a matter of government policy, both a minimum wage increase and the introduction of a livable wage are on the horizon as early as 2022.”

Weighing in on the matter, Atlantis Vice President and General Manager of Convention Services Carlton Russell said, “As we approach 2022, the conversation around the minimum wage is a concern. Hotels are just getting back on their feet and an increase in labor costs will have huge implications.”

The minimum wage was last increased in 2015 from $150 to $210 per week, under the Christie administration.

In its economic plan released in March, the PLP pledged to “phase in a livable wage and recommend to the National Tripartite Council that they move toward a minimum wage of $250 per week”.

“Whether that sum remains on the table is not known that this time, but the tripartite council will make recommendations on those final numbers and the association will participate via the Bahamas Chamber of Commerce and Employers’ Confederation, which has a seat at the tripartite council’s table,” Gibson said.

“But at this point we have no information on what a livable wage would look like. Additionally you would have noted that last week a significant step was taken by the government, with the execution of the decent work agreement with the International Labour Organization. At that time it was announced that there is an intention to review the minimum wage act and that new legislation would be enacted establishing a livable wage.”

BHTA President Robert “Sandy” Sands said he anticipates full collaboration between the industry and the government.

“The collaborative process has not begun yet and obviously the government has committed to collaboration and meetings on this particular issue, because it will be impactful for everybody, so we are going to stay tuned,” he said.

As for the next steps, Gibson said the association intends to actively participate in discussions.

“We’ll see what happens at the beginning of the year, because that’s as early as these discussions will take place. That is our most pressing issue at this time,” she said.

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