By Steve Thomas Observer Nevis Editor
(Basseterre, St. Kitts) – Federal officials are reminding employers that the new minimum wage has been in effect since Nov. 1 and compliance is mandatory. While many workers are pleased with the pay hike, one economist is wary of its impact on small businesses which he believes are central to the future development of” the nation’s economy. The minimum wage went from $250 per week to $320. “”There were some employers who had not yet fully complied with the requirements of the Minimum Wage Order,” Deputy Prime Minister and Minister of Labour, Hon. Sam Condor said, according to a release from the Communications Office of the Prime Minister. He made the report to the Cabinet on Nov. 24 Mr. Condor reported that some employers were claiming that they had not been officially informed. “It is important to note, however, that the publication of the Minimum Wage Order in the Gazette is the only official notification required by law, and that all employers must comply with the order immediately,” said the Cabinet. Although employers have been written to concerning the increased minimum wage, his ministry would leave no stone unturned in ensuring that all major employers are specifically notified, Mr. Condor said. Tuesday Online Code for Issue # 735 is XAN The increase in the minimum wage has a downside, according to economist Dr. Everson Hull “This week Minister Sam Condor announced that the government would be stepping up enforcement of this law,” Dr. Hull said. “The increase to $320 a week creates hardships for many of our small businesses that are struggling to survive.” To reduce costs, many of these businesses will be forced to lay-off workers. Regrettably those who will be laid off are the youth, many of whom are unskilled.” This is exactly the pool of talent that we wish to see in the workplace gaining experience that would prepare them for moving into higher-income earning occupations.” Forcing compliance with the minimum wage law does not bring words of praise from Dr. Hull either. “This is not the time to turn the minimum wage police loose on our struggling Mom and Pop establishments.” The only way in which we can reduce the power and influence of the state and, by so doing, constrain the size of our current account deficits and our cumulative public debt; is to expand the growth and vibrancy of our private sector.” And, our Mom and Pop establishments are central to that transformation.” Their potential for creating jobs is far greater than any government can ever be,” Dr. Hull said.
