Old Harbour businesses react to minimum wage increase

Employees at the lower end of the income bracket will be guaranteed a minimum of $13,000 per 40-hour work week, $4,000 more than what the current law stipulates.
The new increase takes effect on June 1, 2023.

In the wake Prime Minister Holness’ announcement, Old Harbour News sought reactions from some business owners operating in the nation’s fastest growing town.

Carl Cargill, manager, Parden Mini Mart: “My view on it is that what the prime minister should have done is really take a good look at what is actually happening within the small business community where a company like ours employs five people. We are not paying them minimum wage but we have to be competing against all kind of odds: you know like the Chinese, the price gauging because there are no control on prices in Jamaica. So what’s going to happen is we’re going to have to lay-off people or have people working on a part-time basis; and in some cases some of us going to have to lock down because we can’t afford to pay that. On the other hand we are also going to lose business because once the minimum wage goes up then the price to pay the workers is going to reflect on the products that we are going to sell because we have to cover our overheads and also pay people. There should be an increase in minimum wage but the jump put all the small businesses like us in a position where we are going to be in for a difficult time for the rest of the year because trust me we may have to let go people come the first of June.”

Chantal Pryce, director, Netcom Computer Store: "My thoughts are really two-sided. On one hand I am very happy that they have decided to increase the minimum wage come June because I think what’s there now is kind of rough (small). For me personally I don’t pay my employees minimum wage, I try pay them a little bit more. I have a policy from ever since that I pay them a little bit more than the minimum wage.so I was glad when they say $13,000 per week per 40-hour work week. I was expecting them to go $15,000. But on the other hand though it means that I have to go back and review my budget for the year and review my sales target for the year and review my profit target for the year and see how this increase is going to affect those things. So if I’m going to increase salaries it means that productivity will have to increase or in some cases we will have to review some of the services we offer and probably increase some prices where that is concern so we can meet our targets for the week, for the month, for the year and be able to balance off because it’s going to be difficult to ask small businesses to give more when they are not receiving more; that’s going to be a challenge.”

Marcian Walters, proprietor, Trinity Club: “I have been paying my worker way above the minimum wage from long time. I think that those who can do better should do better. I also think that we should put ourselves in our worker’s shoes. Not only have I paid more than minimum wage but I have been paying her when she gets sick and can’t come to work instead of deducting that day’s pay. This motivates them to want to stay with you, one. Two: they will treat the business like it’s theirs; and three: in the long run you will have a team that will take you to the next level. So I think that we should stop looking at our bottom line (only) and think about people.”

Cleyon Ranger, owner, Yours Truly Bar & G-Spot: “The minimum wage is welcomed because we have a lot of people living on the poverty line. Nine thousand dollars can’t work. That is why I pay employees $15,000 a week because I know that $9,000 can’t work. The minimum wage in my view must be in line with inflation so when the government grants an increase in the minimum wage people at that level can afford to live. It is going to affect some business people, yes, especially those who want to use people and don’t want to pay them adequately. I don’t know if it should be at $13,000 but it should be parallel with inflation so people can live properly.”