Cayman’s $6-an-hour minimum wage is desperately in need of review, business and training leaders have acknowledged.
Shomari Scott, president of the Chamber of Commerce and the Education Council, welcomed comments from Deputy Premier Chris Saunders that the base pay level, implemented in 2016, would be reviewed.
But both Scott and Inspire Cayman’s Michael Myles argue that the priority should be to ensure Caymanians can advance in careers that pay well above the minimum.
Saunders cited the fact that the stipend currently paid to unemployed tourism workers is equivalent to $9-an-hour in the average work week as evidence that the current mark is out of step with reality.
A recent review in Bermuda, which is considering implementing a minimum wage for the first time, suggested somewhere between US $13.20 and $17.30 per hour would be needed on the island which has a similar economy and cost-of-living to Cayman.
Scott acknowledged it was time for a review in Cayman, but cautioned that the implications of any increase would need to be thought through and involve consultation with the private sector.
“I definitely believe it’s time to have a look at the minimum wage, but (we have to understand) that will also impact businesses from a cost perspective.”
With some sectors in particular still reeling from the pandemic he said there was a risk that raising wages without proper consideration and consultation would result in difficulties, particularly for small operators.
He cautioned that those costs would, in many cases, get passed on to consumers adding to inflation and cost of living challenges.
“So then we’re in a cycle where you have hyperinflation because all of the prices raise based on a decision that, at times could be seen as ad hoc, if you just pull a number out of the sky without taking all of the different factors into account,” he added.
Scott, speaking on the Cayman Compass and Rooster FM’s weekly news review show ‘Beyond the Headlines’, said he supports a thorough review of the minimum wage. But he wants to see education and training improve to the point where Caymanians are earning far more.
Listen: Shomari Scott and Michael Myles on ‘Beyond The Headlines’
The Chamber president and the founder of Inspire Cayman joined Elizabeth Charles and James Whittaker on Rooster FM on Friday, 18 March. Listen here:
Michael Myles, founder of Inspire Cayman training school, said a fair minimum wage would likely be closer to double the current amount. But he said many employers are paying entry-level workers more than $6-an-hour.
He wants young people to aim higher and businesses to provide opportunities for advancement that move them quickly up the pay scale. He said too many young people were drifting between jobs and not seeking or getting opportunities to progress.
“I don’t talk about jobs any more, I talk careers,” he said.
“You might start as a server but end up owning your own business.
“Construction? Same thing. We talk about the hot sun, we don’t talk about the entrepreneur that is making $150,000 a year because they own their own company.
“There’s jobs in this country that pay way above minimum wage, and we need to start to focus on those jobs becoming careers for people.”
Scott added that getting the education and technical and vocational training system right in Cayman would position people for real jobs in the economy that pay much higher than minimum wage.
He said the aim should be to ensure school leavers go to college or into a programme, like Inspire Cayman, that gives them the skills for a meaningful career.
He added that greater focus could be put on lifelong learning and adaptable skill sets.
“For children in primary school today, 60% of them will be in a job that that doesn’t exist right now,” he said.
“We need to train skill sets that allow our students to pivot and also have a framework that has lifelong learning. Jobs will change, skill sets will change. And that’s why we need to have a system that people can constantly upskill.”
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I think this is long overdue. I also think that Cayman Government needs to look at their part in the high cost of living here. There needs to be communication to everyone as this will further increase the cost of living. There is no cost base increase without the corresponding need to increases consumer prices.
Food costs need to be held at bay. As employers increase labour costs, do you not think that basic necessities will also rise in price? Import duties on food should be abolished. The fact that Cayman relies on imported food in a necessity not a luxury. Duties on fuel need to be reduced. Electricity prices need to be reduced. All these foundational costs of living will increase if we do not address the invisible cost – DUTIES!!!
I am for increasing minimum wage. But CIG needs to contribute as well.