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MP critical of ‘flawed’ living wage report

More consultation needed: Leah Scott

A One Bermuda Alliance MP has claimed the “living wage” report being tabled in Parliament today is “fundamentally flawed”.

Leah Scott, the Opposition’s deputy leader, said recommendations on a statutory living wage for Bermuda have been drawn up before full discussions with businesses have taken place.

She was a member of a bipartisan Joint Select Committee — chaired by Rolfe Commissiong, a Progressive Labour Party backbencher — set up to explore whether or not such a measure would be effective.

Ms Scott last night told how the JSC met statisticians and groups including faith-based organisations and charities.

She continued: “Following the various consultations and presentations with those particular parties the report was prepared and set out suggested recommendations in respect of the establishment of a statutory minimum/living wage.

“The JSC, as a whole, agrees that Bermuda’s rising income inequality and stagnating standards of living must be addressed.

“However, the report is fundamentally flawed, as it is bringing forward recommendations before any proper discussions have taken place with all employers, particularly small and medium businesses, budding entrepreneurs and new start-ups.”

The Parliamentary Joint Select Committee on the Establishment of a Living Wage in Bermuda is to be tabled in the House of Assembly today.

Ms Scott pointed out that International Labour Organisation guidelines on minimum wage policy, which was a source document used to help compile the report, state all employers’ and workers’ organisations should be fully consulted before implementing any kind of wage regime.

She continued: “We believe that all workers should receive a wage for a regular work week (before overtime) that allows him/her to afford a decent standard of living for themselves and for his or her family.

“Ultimately, though, it is the stakeholders, including the unions, who will be required to adjust the pay of workers found below the established living wage.

“It is the understanding of the JSC, that before any steps will be taken to implement any of the recommendations in the report, the Government will conduct industry-wide consultation across all employment sectors to thoroughly understand the full ramifications on the economy and job creators of implementing a minimum/living wage.

“It may be that following such consultation, some of the recommendations set out in the report may have to be adjusted, modified or even rejected.”

She agreed with comments made by Mr Commissiong in The Royal Gazette yesterday that “we will get there” when it comes to economic equity.

“However, the process must be done right in order to achieve the end goal,” Ms Scott said.

“Therefore, I urge the Government to commit to the community that they will carry out the much needed, broad consultation before even considering implementing any of the recommendations contained in the report.”

Mr Commissiong earlier told The Royal Gazette that affirmative action-style policies would be backed by other “non race-specific” proposals, focusing on living wage, a reduction in the cost of living and tax reform.

Last night, he declined to comment.

In Senate on Wednesday, Jason Hayward, a Progressive Labour Party senator, said the living wage report would “fundamentally seek to improve the wages that many of our Bermudians are making”.

He added that low-income earners would be ensured a “dignified wage so that they can maintain a decent quality of life in Bermuda”.