Having to live on minimum wage
Think about all the things you can buy with $4,070. Think harder.
Four thousand and seventy dollars can’t even buy a good pair of shoes, yet, that is how much many Jamaicans who earn the national minimum wage – $814 – a day, must survive on weekly.
If the connection between fuel costs – an estimated US$76.70 ($6903) a barrel for crude oil as of Friday – and cost of living is still inextricably tied, then the prospects of having to survive on that sum are even starker. Volatile fuel prices are passed on to goods and show up at the cash register in the supermarkets, and the wholesales where these persons have to find food, the most basic form of sustenance.
The Consumer Alert, published by the Consumer Affairs Commission in this newspaper every Thursday, breaks down the cost of grocery items according to the highest and lowest at selected grocers across the island. Indeed, the most ‘basic’ items, at the cheapest prices indicated within the CAC’s survey, indicate that $4,070 is a paltry sum to take to the counter.
The cash register rings and the items add up. A can of corned beef costs $165, a can of mackerel – $53.52, a can of sardines – $51.22, a (very) small whole chicken (1kg) $275.57, 1 kg salted fish – $529, one sachet skimmed milk powder – $62.40, one can sweetened condensed milk, $107.50, one bottle cooking oil (500ml), $131.99, brown sugar (1kg) $68.75, bulk rice (1kg) $74.44, bulk cornmeal (1kg) $86.99, counter flour (1kg) $59.50, 1 doz eggs, $149. The cost to feed a family of three, for a week – too much.
Those who must survive on this sum speak of a life of hardships and sacrifices, and what’s worse is that some employers exploit workers by paying sums lower than the minimum stipulated by law.
Fifty four-year-old Inez* is a domestic helper. She used to offer live-in services, seven days a week, for $4,000. The sum could not cover many of her expenses: $4,000 for rent, $1,000 each for water and electricity bills, and $2,000 other expenses. Fortunately, Inez’s daughter assisted her so she could pay the utilities. Inez said it was a hard life but she continued to work because she needed and wanted to, “As long as the Lord lend me breath and I not sick I will work.” Inez recently moved to work for another family that says pays her more money.
Charmaine Manning* is 25 years old and has six CXC subjects, including Mathematics, English Language, Principles of Accounts, Principles of Business, Information Technology and Office Procedures. She works Monday to Friday, 8:30 am to 5:00 pm and earns “$3,888 after tax” per week – less than the minimum wage.
According to the Minimum Wage Act, employers who fail to pay the stipulated wage are “liable on summary conviction before a Resident Magistrate in respect of each offence to a penalty not exceeding one hundred dollars, and to an additional penalty not exceeding twenty dollars for each day on which the offence is continued after conviction.”
Charmaine was not aware that she was getting paid below the minimum wage, but acknowledged that her salary, “can’t do anything at all. Just take me back to work, pay my fare and buy food”. Her expenses include: rent – $7,500; approximately $1600 for electricity bill; water – $1300; and bus fare – $1000 per week. So, how does she manage?
“You have to knot and tie sometimes to survive. Sometime if you can’t eat, you just can’t eat,” she said. Charmaine says she wants to go back to school, but her current salary does not allow her to do so. While she ponders her next move, she argues for, at least, an increase in salary.
The current minimum wage actually represents a 10 per cent increase over last year. However, Sunday Finance asked Minister of Labour Pearnel Charles whether it could be increased further to ease the pain of persons like Charmaine.
“The minimum wage is to be reviewed every year. I can’t tell you what the conclusion will be after the review. Again, we will have to look at it,” he said.
Charles was not insensitive to the needs of minimum wage earners, but said the impact of any increase on businesses at this time would also have to be considered. “Do you increase the salary and lay off the man, or do you keep the salary and keep the man? These are things that we have to examine. Which is better?” Charles said.
Private Sector Organisation of Jamaica president Joseph M Matalon said prudent analysis must be undertaken before making any decisons on the national minimum wage.
“I don’t know that I have an opinion on it from the point of view of an employer,” he said, in response to the suggestion of an increase in the minimum wage. “My position is trying to make a decision: what is the possible outcome of increasing the minimum wage?
“I know, for instance, in the security companies that employment has been significantly reduced as a result of raising the minimum wage in that company and similar situations have existed in other areas and in the economy,” he continued. “So, really and truly, we have to make a decision as to whether you are going to hold it relatively low, or no increase at all and therefore give a better opportunity for more people to find employment.”
*Names changed on request