SEVERAL trade unions including the Joint Trade Union Movement (JTUM), the National Trade Union Centre (NATUC) and the Federation of Independent Trade Unions and NGOs (FITUN) knocked the fiscal measures in budget 2024, in particular, the proposal to increase minimum wage, saying that citizens cannot live on the wages despite the increase.
In the budget, read on October 2, by Finance Minister Colm Imbert, the Government proposed an increase in the minimum wage from $17.50 to $20.50.
However, in the joint response, the unions described the increase as “woefully low.”
“The figure translates to $3,553 per month,” the unions said in its response. “While some may argue that it is better than no increase at all, one must look at the fact that the figure is woefully low, given our economic realities.
“The rental of a two-bedroom apartment goes at a minimum of $2,500 per month; which means that workers are left with a balance of $1,053. In other words, in TT, the Government is asking the majority of the population to live on $1,053 per month.”
The unions said the increase goes against the backdrop of the implementation of property tax which could result in increases in rent.
They also challenged Imbert’s assertion that a majority of stakeholders supported the increase of the retirement age to 65.
“The increase in the retirement age is purported to address the NIB gap between revenue and benefits payments. Ironically the minister identified some 200,000 workers outside the NIB structure in addition to the hundreds of employers who evade their legal requirement to make contributions, but nothing was mentioned about how they are going to increase the collection net and rein in these non-compliant employers.”
The unions said the Government should seek to provide a living wage.
They said a living wage is calculated by first establishing the cost for a basic decent life inclusive of food, housing, education, health care, transportation, clothing and other essential needs while a minimum wage is set by government through legislation. They called the increase in the minimum wage a “subsistence wage.”
“Why is it that government talks about allowing the market forces to take their natural economic course but when it comes to wages, it is legislated by the Government?
“One must also ask themselves why the Government continues to pay minimum wage and not a living wage which is demonstratively in the best interest in the economic development of our country?”
Prior to the reading of the budget, unions called on Government to increase the minimum wage from $17.30 to $30 to meet with the growing challenges and increased costs of living.
Opposition Leader Kamla Persad Bissessar also called for an increase in wages to $25. She also dismissed the $3 increase, saying that while they were happy there was one, it was not nearly enough.
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