The Minimum Wage Advisory Committee has said it expects to have its report ready by the end of June, barring any delays in its deliberations.
The committee, which is led by chairman Lemuel Hurlston, held its first meeting 25 Jan., according to a Ministry of Border Control and Labour statement issued Monday, 20 Feb.
“Discussions began to look into the adequacy of the current minimum wage in the Cayman Islands. If there are no delays, a final report should be ready by 30 June 2023,” it said.
Last year, Deputy Premier Chris Saunders, who is also the labour minister, commissioned the review, saying that the existing minimum pay of $6-an-hour was “absolutely way too low”.
Hurlston said he was honoured to lead the committee and review the minimum wage as it is a topical issue which “affects us all”.
“As we meet weekly over the coming months by looking at current and future factors that it may affect, and through advice from independent consultants, we hope to be able to advise the Cayman Islands on a way forward in determining a new minimum,” he said.
Review overdue
The current minimum wage went into effect on 1 March 2016 under former Premier Alden McLaughlin’s administration.
The $6 hourly rate was established as the minimum wage for most Cayman Islands employees.
Service employees who receive gratuities earn a minimum hourly rate of $4.50 and special calculations apply for live-in household domestic workers, as well as for people earning commission.
In 2019, McLaughlin announced a review would be undertaken with a view to moving the needle upward for local workers.
Saunders, when he took office in April 2021, listed the review as a priority item for his portfolio.
The review committee comprises a cross-section of representatives from various local associations covering employees and employers alike, as well as representatives from civil society, with support from the labour ministry, the Economics & Statistics Office and the Department of Labour and Pensions.
“The committee, which meets weekly, will investigate the impact of a new minimum wage at various wage points as well as whether the country should establish various minimum wages for specific industries, sectors or age groups,” the statement said.
The ministry added that the committee will be responsible for preparing a report to the Cabinet on its findings, as well as a final recommendation for price points of the National Minimum Basic Wage(s) for the Cayman Islands.
It added that the public will be advised of opportunities for engagement as the committee meetings progress.
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I trust that in this second attempt at crafting a Minimum Wage, the Committee will succeed in arriving at a healthy balance between a Basic Living Wage and a Minimum Wage. The first attempt, when I was the Director of Labour and Pensions and a ex-officio member of the Committee, the Committee was convinced to adopt complex econometric factors instead of living or market realities. The re-appointed Chairman, Mr. Lemuel Hurlston, CMG, is a healthy source of experience as well as providing a market-based realism and perspective.