Wages (Increase in Minimum Wages) Order 2022

Presented to the Honourable House of Assembly

BY

Hon. JoBeth Coleby-Davis 

MINISTER OF TRANSPORT AND HOUSING

MEMBER OF PARLIAMENT FOR THE ELIZABETH

ON

2 NOVEMBER 2022

AS PREPARED FOR DELIVERY

Madam Speaker,

It is an honor and privilege to rise in this honourable House to represent the good people of the Elizabeth constituency. In fact, as I rise, my contribution today also represents the concerns of many hardworking Bahamians across the length and breadth of our nation.

Madam Speaker,

When I took the oath of office in this chamber, I made an earnest commitment to represent the good people of Elizabeth to the best of my abilities.

In my view, good representation is about being present, understanding the concerns of constituents, and taking the necessary action to implement innovative and meaningful solutions that positively impact the concerns of constituents.  This is my mission, Madam Speaker,and I will continue to advocate for these goals as long as I am allowed to serve.

Madam Speaker,

Over the last few weeks and months, my team and I have continued to make strides in improving the constituency. We have:

•             cleared property on Fox Hill Road for our green space initiative;

•             purchased a playground set for Thelma Gibson Preschool;

•             partnered with St. Andrew’s Beach Association to conduct the first of several beach clean-ups; and,

•             placed dumpsters at strategic locations around the community for use by constituents.

Madam Speaker,

Illegal dumping continues to be a major concern in some parts of Elizabeth – in places like Hanna Road, Pine Barren Road and on the waterfront.

A clean environment is important in creating sustainable living, reducing crime, and maintaining property values.

As the Member of Parliament, it is my duty to do all that is in within my power to address this issue. I, therefore, wish to assure my constituents that I am actively addressing this matter.

Madam Speaker,

During the most recent townhall meeting in Elizabeth – which focused on public service matters. I was reminded of the issue that some of the hard-working public servants in my constituency face – such a delayed promotions and re-classifications.

I take this time, Madam Speaker, to publicly thank my colleague – the Minister of State for the Public Service and the honourable Member of Parliament for Golden Gates, for her commitment to addressing these long-standing public service issues of my constituents.

Madam Speaker,

As I rise to contribute to the debate on the Wages (Increase in Minimum Wages) Order 2022, I am reminded of the concept of good governance. In fact, Madam Speaker, the theme of my contribution is, “Increasing the Minimum Wage is a matter of Good Governance.”

As defined by the United Nations, Madam Speaker, good governance has several characteristics. Good governance is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. Furthermore, it seeks to ensure that corruption is minimized, the views of minorities are considered and that the voices of the most vulnerable in society are heard in decision-making. Good governance is responsive to the present and future needs of society. 

During our campaign for office, Madam Speaker, we pledged to govern with compassion and with a heart. Therefore, the policies we implement, seek to uplift our people and our communities.

Our Party, Madam Speaker, the Progressive Liberal Party is founded on principles of social justice. Therefore, addressing economic and social issues such as poverty, welfare, infrastructure, health care, education, and climate change using government intervention while respecting individual rights and autonomy are fundamental aspects of our philosophy.

It is therefore no surprise, Madam Speaker, that it was a Progressive Liberal Party administration that introduced national insurance to assist and safeguard workers. It also no surprise, Madam Speaker, that it was a Progressive Liberal Party administration that raised the minimum wage in 2015 that benefitted thousands of Bahamians.

As a then Senator, I joined my voice with my Party in 2018 in not supporting the increase in value-added tax (VAT) from 7.5 percent to 12.00 percent. At the time, Madam Speaker, I understood that many Bahamian households throughout the country and a good number of the over 13,000 residents of Elizabeth would struggle to keep pace with the VAT increase.

Madame Speaker upon coming to office and in keeping with our blue print for change, we immediately reduced VAT to 10%, bringing well needed economic relief to thousands of Bahamians.    Coupled with the increase in the minimum wage, these combined policies have resulted in putting monies in the pockets of Bahamians.  

While I note, Madam Speaker, that the minimum wage legislation was introduced by the Party opposite some 2 decades ago, Madam Speaker, history reflects that time and time again they have failed to increase the minimum wage at any point during their times in Government. Can we consider that fact, Madam Speaker, as being reflective of the characteristics of good governance?

Madam Speaker, the legacy and commitment of the Progressive Liberal Party to standing up for all Bahamians – especially the most vulnerable among us – is a noble cause and is the primary work of this cabinet led by the Prime Minister and the honourable Member for Cat Island, Rum Cay, and San Salvador.

I stand in full support, Madam Speaker, of the tremendous work in advancing this Order by the honourable Member of Parliament for Carmichael and the Minister of Labour and Immigration and his team at the Ministry.

Madam Speaker,

The decision of the Davis administration to increase the minimum wage from $210.00 to $260.00 a week – an increase of $50.00 is an act of good governance that will benefit almost 60,000 workers and thousands of Bahamian households throughout this country.

Madam Speaker, I fully and firmly support this Order.

Debate is healthy, Madam Speaker, for national growth and development. I, therefore, wish to dissect some of the views I have read and heard in the public domain.

There are some individuals and groups, Madam Speaker, who do not support increasing the minimum wage. We live in a democracy, and their views and perspectives are important, however, Madam Speaker, it must be noted that this is only the second time that the minimum wage is being increased in more than 2 decades.

As a national elected body, we must ask ourselves, Madam Speaker, if it is morally right for a developing nation to have had only 1 minimum wage increase in 2 decades. On a deeper level, Madam Speaker, how many of us in this chamber represent or know of constituents who have earned a minimum wage paycheck for the past 7 years without an increase? 

It is also important to note, Madam Speaker, that some of the voices opposed to the minimum wage increase are the same voices who did not support the increase in 2015. Further, some of these same voices did not support the introduction of the Minimum Wage Act in 2002. This observation, therefore, begs the question, Madam Speaker – “If not in 2002, if not in 2015, and if not in 2022 – when?”

Madam Speaker, another observation to note is that a move to increase the minimum wage has not always been supported by a certain sector of society. To be frank and brutally honest, Madam Speaker, many of the opposing voices are considered high-income earners. How ironic is it, Madam Speaker, for a high-income earner to suggest to a Bahamian worker earning $210.00 a week that now is not the right time for an increase in the minimum wage?

Let me be very clear, Madam Speaker, this is not an attack on high-income earners, however, there is something fundamentally wrong when I listen to some of the views being expressed by certain individuals and note that these same individuals have a history of speaking extensively on inequality. I, therefore, ask the question – “How are we to bridge the gap between the “have” and “have nots” of our society if we don’t take national, meaningful action such as increasing the minimum wage?” Can we, Madam Speaker, take these voices seriously when they speak out against inequality?

I wish to note, Madam Speaker, that the honourable Member of Parliament for Marco City had a seat around the cabinet table in 2020 when the ministerial per diem was raised from $80.00 to $100.00 for domestic travel and from $150.00 to $250.00 for international travel – which was also extended to the spouses of Ministers at the time. To be fair, Madam Speaker, the justification was that the original amount was insufficient is a plausible explanation. Therefore, based on the current level of inflation, I think that is safe to assume that the honourable Member of Parliament for Marco City and his Party will enthusiastically support this minimum wage increase for workers.

Madam Speaker, in terms of reducing income and wealth disparities, raising the minimum wage is a good thing. The benefits in terms of reducing inequality – getting money into people’s pockets, and stimulating the economy are well proven.

I have heard, Madam Speaker, some persons – including the honourable Member of Parliament for Marco City express concerns about the impact of raising the minimum wage on small and medium sized businesses. It is a valid concern, Madam Speaker, however in the national budget we’ve allocated over more than $50 million in direct support for small and medium sized businesses. This decision, Madam Speaker, is an example of good governance.

I also wish, Madam Speaker, to bring to the attention of honourable Members of this House that we have seen an increase to the minimum wage in Barbados in April 2021 and in Jamaica in April 2022 and should note that according to the Central Bank of Barbados and the Bank of Jamaica, employment – particularly among small and medium sized businesses in both countries have increased.

Madam Speaker, because of external events, inflation is a serious concern. In the United States, we are seeing historic levels of inflation.

According to an economic survey of Latin America and the Caribbean by the United Nations Economic Commission for Latin America, The Bahamas is in the top 10 Caribbean countries that have experienced skyrocketing prices because of inflation. The report found that Caribbean nations are paying the most for food and non-alcoholic beverages, housing, and transportation.

The report stressed and I quote, “other measures may be needed to slow the transmission of external inflation to the region’s economies, not only to avoid further erosion of living standards, but also to prevent inflation from spreading to other components of the consumption basket,” end quote.

According the Monthly Economic and Financial Developments Report for September 2022 by the Central Bank of The Bahamas, Madam Speaker, year to date prices have gone up by 5.2 percent compared to 2.1 percent in 2021. As a matter of good governance, Madam Speaker, something must be done.

The decision to increase the weekly minimum wage by $50.00 allows wages to catch up to the rising cost of living at this time and will assist in softening the impact of inflation on many Bahamian households.

This policy decision is the kind of measure called for to avoid an erosion of living standards for the vulnerable amongst us. Let me be clear, Madam Speaker, it is the right thing to do, and this is the right time to do it.

Madam Speaker, we often speak in abstract terms, but let’s consider the tangible and meaningful impact on working Bahamians. For almost 60,000 Bahamian workers and thousands of households, the increase will mean being able to keep food on the table, keep up with the monthly rent or mortgage payment and put a bit more gasoline in the vehicle.

Many of our single parent households, Madam Speaker, are headed by hardworking Bahamian women earning minimum wage. Currently, these households take home $10,020.00 annually. The passage of this Order would see these households take home $13,520.00 annually – a difference of $3,500 a year or an additional $291.66 a month. This increase will do much for single parent households in these times. In my constituency of Elizabeth, Madam Speaker, where there are over 3,450 households, the increase in the minimum wage will have a positive impact. 

Madame Speaker, I recently had occasion to meet a single mother from my constituency, who expressed her gratitude and welcomed the increase.  She said it would mean that she could now buy an additional bag of food for her children, and she would no longer have to seek assistance from social services to assist when she cannot make ends meet.    This is how governments should work to restore the dignity of our people.

As the Minister of Transport and Housing, let me add, Madam Speaker, that the increase in the minimum wage will positively impact hundreds of mortgage applications. The country has already seen that this Davis led administration is committed to expanding the path to homeownership and this decision will allow many Bahamians to obtain homes.    We will not make promises of home ownership.  We will not produce sketches for Public Relations stunts.  We intend to actually put families in their own homes.  And by the end of November , 2022, we will be putting at least 18 more families in homes.  18 more families will be able to place their Christmas wreaths on their own doors to their homes.  We are serious about our commitment.  It is indeed a new day.

As I have stated earlier in my contribution, Madam Speaker, the concept of good governance centers on the responsibility of governments to meet the needs of the masses as opposed to select groups in society. We have a moral obligation, Madam Speaker, to protect all Bahamians – especially the most vulnerable amongst us.

Madam Speaker, to govern is to make decisions. By increasing the minimum wage, we are doing just that – governing for all Bahamians.

For hardworking Bahamians across The Bahamas – especially those in Elizabeth, Madam Speaker, I support this Order. Increasing the minimum wage is a matter of Good Governance. 

Thank you, Madam Speaker.