Neil Derrick, vice-chairman of the Employers’ Consultative Association (ECA), is concerned about the proposed increase in the minimum wage. He said it may have repercussions on the economy and called for more dialogue on the proposal. Derrick said some pre-budget work done by the ECA, including a seminar on the minimum wage, showed some employers were already paying above the minimum wage.“It was somewhere between $17 and $18,” he said.
Derrick said the way the change was made would create a spiral in the labour market, pushing wages in other sectors further upward. Overall, he said, that may result in inflation. He also warned that demands for a $20 minimum wage could push some businesses out of operation. He added: “We think at this rate, $15, while we understand that there is hardship, I think something like this requires balance.” “We are in the negotiating period. A lot of collective agreements have just expired. We had the issue with the pensions for the judges and we now have an increase in the minimum wage.”