By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A trade union leader has expressed concern that the minimum wage increase negotiated by the Bahamas Public Service Union (BPSU) has set the bar too low for other Bahamian workers, telling Tribune Business: “That is unacceptable”.

Trade Union Congress (TUC) president, Obie Ferguson, reiterated his calls for the private sector minimum wage to be increased to $300-$350 per week - between a 100 per cent to 133 per cent increase. His fear is that the BPSU deal, which increases the civil service minimum wage by 7.5 per cent annually - the same rate as VAT - will work against achieving this goal.

“As a general rule I don’t comment negatively on another union in this country, but if the Government is announcing $800 as the minimum wage [increase on an annual basis], that is not acceptable to the Trade Union Congress,” Mr Ferguson said, describing the figure as “unacceptable”.

He added that it equated to $15 more per week than the $210 previously received. “We say $300 to $350. If that is what the Government intends for the other unions and the workers of the country, we are diametrically opposed to that. We are looking for a living wage. That is not a living wage. The TUC will not agree to that,” said Mr Ferguson.

“They have not approached the private sector to determine what the private sector would agree on. What ought to have happened is the Government, the private sector and the unions should meet, and we should hammer out something, having regard for the economic situation, the concerns of the workers and coming up with something that is reasonable.”

The Government signed an industrial agreement with the BPSU last week to increase the minimum wage for nearly 2,000 members by $800 a year. BPSU members who received an annual wage of $10,700 will see that increased to $11,500.

Based on 52 weeks in the year, and a 40-hour work week, the BPSU deal has increased the civil service minimum wage from $205.79 to $221.15 per week, or from $5.14 to $5.53 per hour.

Mr Ferguson added: “If we are going to do something as a civil society, all the players ought to be a part of it. The Government would have done compensation studies. Let’s see what they say, and then let’s see what you can afford and how we can somehow meet the workers’ needs half-way.

“ You can’t just wake up and say I’m going to do it. Labour is a factor of production, labour is a major player in economic development. You cannot disregard labour.”

Mr Ferguson said the TUC and its affiliates was preparing to take a united stand over several key concerns. These are the minimum wage; the arbitrary changing of worker status; alleged disrespect shown by employers to worker representatives and workers; supposed union busting tactics and the failure to negotiate industrial agreements on a timely basis; and the failure by government to honour negotiated agreements.

“We will be finalising the steps and all of the logistics necessary to fulfill the commitment we made to the workers to unify them and create a solidarity position for all workers throughout the country,” said Mr Ferguson.

“We are finalising it now to ensure that all of the voting processes are completed and the planning has been completed, so we can have a unified position when we decide to make this move.”

Labour Minister Shane Gibson said last month that the Government will consider proposals for an increase in the country’s minimum wage. But minister of state for finance, Michael Halkitis, said last week that an increase in the national minimum wage is not before the Government at this time.