Can A Minimum Wage Increase Hurt The Business Community

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NASSAU, BAHAMAS – Bahamas Chamber of Commerce President, Dr. Leo Rolle, says discussions are continuing with government on a proposed minimum wage increase.

Residents around the country are still calling for an increase, even after the Davis administration increased the minimum wage from $210 to $260 in January 2023. That was the second increase since the Ingraham administration introduced the minimum wage in 2001 at $150 per week.

However, Rolle says they have been, and are still, against any added increase to the business community.

“Because of so many costs the business community has already had to endure, they have had an increase in NIB, and of course, NIB is looking at another increase soon. They’ve had an increase in procurement of goods and services, they’ve had an increase in minimum wage already about a year or two ago, and they’ve also had an increase in shipping logistics costs,” says Dr. Leo Rolle – CEO, Bahamas Chamber of Commerce.

He says while it may be hard for residents to understand, a possible minimum wage increase can also have a negative impact.

“So when you look at the business community, they are still surviving on that same one dollar they have always had, but now you’re pulling more from it. That will cause inflation, which is a systematic increase in goods and services. What we’re saying is any further increase to minimum wage has to be done in tandem with impact reports to understand how the last increase, as well as all of the auxiliary costs I mentioned, are impacting the business community.

So at present, as I said, they are looking, of course, because the ILO convention says that we have to move towards livable wages and, you know, making sure that people’s salaries are in line with inflation and the cost of living. But that also has to be done in tandem with the business community, understanding that if these businesses close down, there will be no jobs,” says Rolle.

With high costs of living and various taxes on their backs, residents continue to struggle with making ends meet, wage increase or not.

When asked if his viewpoint, and that of the business community, could be seen as a possible roadblock to an increased wage:

“So the Bahamas Chamber of Commerce Employers Confederation is the employer’s arm, so everything that we speak to is business-related. While constituents of these other organizations will be advocated for by those organizations, our advocacy is for the business community. So everything we do, unapologetically, is towards the business community,” says Dr. Leo Rolle – CEO, Bahamas Chamber of Commerce.