THE MINIMUM WAGES BOARD

THE MINIMUM WAGES BOARDTHE MINIMUM WAGES BOARD

Day 2: Tuesday, 1 November 2011

Presenter: Ms. Bunny Rambhajan, Chair of the Minimum Wages Boardg

Purpose

Who or What is the Minimum Wages B d?Board?What are the functions of the Mi i W B d?Minimum Wages Board?What are the Effects of the Work of the Board?Works in Progress?

Who or What is the Minimum Wages Board?

The Board

The Minimum Wages Board is i t d b th Mi i t f L b appointed by the Minister of Labour

and Small and Micro Enterprise Development for the purposes of the Development, for the purposes of the Minimum Wages Act.

The BoardThe Board

Section 5: “The Board shall consist of Section 5: The Board shall consist of seven members including:One member nominated by the One member nominated by the associations most representative of employers.p yOne member nominated by the associations most representative of labour.One Government representative”.

The Act

The Minimum Wages Act is “an Act ti i i d t respecting minimum wages and terms

and conditions of employment”.

The Act

S ti 3 1 “Th Mi i t b Section 3.1: “The Minister may by Order… fix minimum wages and terms of conditions of service for any terms of conditions of service for any class of workers generally or for any class of workers in a particular class of workers in a particular industry or undertaking or where satisfied it is necessary to do so, fix a satisfied it is necessary to do so, fix a national minimum wage applicable to workers generally”.g y

The ActSection 3 2: An Order may specify:Section 3.2: An Order may specify:

Hours of work and other terms and conditions.Provide for different minimum wages for workers in different categories of undertakings engaged in the same undertakings engaged in the same employmentProvide that a national minimum wage shall not apply to workers in a specified category.

What is the Board’s Function?

Function

Section 6: “The function or purpose of th B d i t d i d k the Board is to advise and make recommendations to the Minister on all matters relating to the fixing of all matters relating to the fixing of minimum wages and terms and conditions of service”conditions of service .

Function

Sections 12:Sections 12:The Board shall determine whether there exists any (or any adequate) machinery exists any (or any adequate) machinery, for the regulation of the remuneration or terms and conditions of service of workers.The Board shall report on the adequacy of regulatory machinery where it exists. h d h ll k dThe Board shall make recommendations to

improve the efficiency of the machinery.

FunctionSection 13:Section 13:

Where the Board is of the opinion that the Minister should fix a minimum wage or other t d diti f i i t f terms and conditions of service in respect of a particular group of workers, the Board shall recommend:A proposed minimum wage.Terms relating to paid holiday and sick leave; andandSuch other basic conditions; including danger money, dirt money, on-call, or stand-by money as the nature of the case may requiremoney, as the nature of the case may require.

Function

Section 14: “In recommending a proposed minimum wage or other terms and conditions of service, the Board shall considerBoard shall considerThe general level of wages in Trinidad and Tobago.The cost of living.Contributions payable and benefits provided under the Contributions payable and benefits provided under the system of national insurance established by the National Insurance Act; andOther economic factors; including the requirements of Other economic factors; including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining high levels of employment”.

Function

Whilst the Board’s function is to d i d d (S ti 15) advise and recommend, (Section 15)

“The Minister may accept the recommendations or advice of the recommendations or advice of the Board either fully or in part or he may reject it”reject it .

Effects of the Work of the Board

EffectThrough the Minimum Wages Act the Board is Through the Minimum Wages Act, the Board is

able to effect:A minimum floor of rights.gDecent wages for work that is conducted in decent conditions.G t t l kill k Guarantee to low-skill workers a wage which can meet basic needs.Protection of vulnerable workers (especially Protection of vulnerable workers (especially non-unionized workers).Mitigation against poverty and exploitation.

Effect

M j A li h tMajor Accomplishment:Movement of Minimum Wage from $7 00 i 1998 t $12 50 ith th $7.00 in 1998 to $12.50 with the most recent of Order – the National Minimum Wage Order 2010Minimum Wage Order, 2010.Hours of work; meal breaks; overtimeovertime.

Works in Progress

Works in Progress

Review of all Minimum Wage Orders:National Minimum Wage Order 2010National Minimum Wage Order 2010Security Industry Employees Order 1995 Household Assistants Order 1991Household Assistants Order 1991Petrol Filling Station Employees Order1982Catering Industry 1991Catering Industry 1991Shop Assistants Order 1991

Works in Progress

R i f hi f th Review of machinery for the regulation of the remuneration or terms and conditions of service for terms and conditions of service for the various groups.Working with MOLSMED re Impact of Working with MOLSMED re Impact of Minimum Wage Study (monitoring impact and reviewing appropriateness impact and reviewing appropriateness and effectiveness).

Thank You!