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Doug Wheatley laments hike in prices after minimum wage increase

- said persons will find themselves no better off
There has reportedly been a hike in prices of some commodities on the heels of the minimum wage increase that came into effect in the Virgin Islands on October 1, 2016. Photo: Internet Source
Host of Speak Out BVI on 780 AM, Doug Wheatley is lamenting that reports circulating indicate that already there has been a hike in prices in many areas. Photo: VINO/File
Host of Speak Out BVI on 780 AM, Doug Wheatley is lamenting that reports circulating indicate that already there has been a hike in prices in many areas. Photo: VINO/File
ROAD TOWN, Tortola, VI- Days after the implementation of the increase of $2 on the minimum wage in the Virgin Islands (UK) came into effect, the host of Speak Out BVI on 780 AM, Doug Wheatley, is lamenting that reports circulating indicate that already there has been a hike in prices in many areas.

The minimum wage was raised from $4 an hour to $ 6 an hour effective October 1, 2016 after being stuck on that amount for over 10 years.

Wheatley believes that when the cost of various things rises, the pay raise becomes meaningless.

“We have heard that already prices have gone up in anticipation of the minimum wage. Some people may deny this, but others will say it is a fact,” he said.

“So it is this tendency, I don’t know if it is just here in the BVI or it is found in other places; whether it is a civil service increase or it is a minimum wage increase, somehow or the other, some persons decided that they had to put on their rental, or the prices of their commodities. What this does is cancels out the beneficial effects of the increase in the minimum wage or whatever increase it is, so here on paper, you are getting more money, in real terms your purchasing power may be less than it was before. In other words, you will be not be as well off as you were before the increase took place.”

The announcement regarding the $2 increase was made in July of this year by Minister for Natural Resources and Labour Dr The Hon Kedrick D. Pickering (R7).

The advance notice to employers was to allow them adequate time to make the adjustments necessary for a smooth transition, as well as public awareness and education particularly since the National Health Insurance Scheme came into effect in January of 2016.

27 Responses to “Doug Wheatley laments hike in prices after minimum wage increase”

  • NHI (05/10/2016, 08:57) Like (15) Dislike (0) Reply
    STRUPES LIKE WHAT U ALL EXPECT, SAME THING I TELL MY WIFE SINCE I LIVE HERE IN BVI AND WORKING IN SCHOOL DAYS AS A BAG BOY WHEN MINIMUM WAGES WAS $3. $3.50 EVERY TIME THEY TAKE IT HIGHER PRICES GO UP ON GOODS NOTHING NEW. THATS WHY I DONT UNDERSTAND WHY WE BALLING FOR HIGHER PAY. WE NEED A PRICE CONTROL BASSED ON PERCENTAGE OF GOODS PRICE COMING INTO THE COUNTRY. PAY GONE UP SO GOODS GONE UP AND THE PRICE OF ENTRY ON GOODS AINT MOVE. SO WHY WE HAVE PAY MORE/ ALL BECASUE OF GREED.
    • Peng (05/10/2016, 16:24) Like (2) Dislike (0) Reply
      It's high time what dough needs to do is name and shame the stores who take advantage of this is wrong plain and simple.
    • Hmph (05/10/2016, 19:30) Like (3) Dislike (0) Reply
      Cue all the professional protestors, and commentators with silly made up names, complaining about prices going up. Welcome to Socialism my brothers and sisters - minimum wage increase means price increase. Price fixing means a shortage of goods and a black market. If you want cheaper prices, stop protecting our rip off local businesses and let in some competition. Competition means lower prices - look at the USVI.
      • idea (06/10/2016, 09:09) Like (1) Dislike (0) Reply
        That is an excellent point Hmph. As long as our market is closed, stores will always enjoy and embrace monopoly over the market. This will protect, to a certain extent, local business but on the other hand put the local consumer in difficulties. i can't recall how many millions of dollars BVI spend every year shopping in St. Thomas. The way i see it, it's a trade off between protecting local business at the expense of the consumer or open the market for competition which gives favorable prices to the end consumer. with that said, do you think the government and locals are open for such a change?
  • wow (05/10/2016, 08:58) Like (15) Dislike (1) Reply
    This should be illegal. What's the point of raising the minimum wage if retailers can just raise the prices of everything; you'll never be making enough money to live comfortable if that's the case. Poor leadership is to blame.
  • ha (05/10/2016, 09:01) Like (2) Dislike (1) Reply
    The government that will continue make sure you FEEL IT UN THE REAR LOL.
  • NHI (05/10/2016, 09:01) Like (3) Dislike (0) Reply
    TAKE A SECOND NOTE EVERY TIME IT HAVE HURRICANE OR SOME SOCIAL IMPACT SOMEWHERE PRICE ON GOODS U NEED GONE UP FOR THAT TIME LOL. CHECK IT OUR GOOD. U LOOSE WHEN NATURAL DISASTERS HIT PRICE GONE UP ON BREAD CRACKERS CAN STUFF
  • Well Sah (05/10/2016, 09:17) Like (2) Dislike (27) Reply
    Well you all need to stop going to St Thomas to shop. The stores needs to make up the difference for the money that you all spending in St Thomas.
    • wow (05/10/2016, 09:35) Like (10) Dislike (0) Reply
      The prices in the local stores need to be more competitive. People don't shop in St. Thomas just because they like going to St. Thomas. Regulating the prices is the only way to have a healthy economy. Then people would shop locally and not go to St. Thomas.
      • Hmph (05/10/2016, 19:33) Like (1) Dislike (0) Reply
        Regulating prices means shortages and a black market. St. Thomas will be the only option. We need competition, and to stop supporting rip off local businesses.
    • ha (05/10/2016, 10:09) Like (12) Dislike (0) Reply
      NEVER! I ALWAYS GET MY MONEY'S WORTH when i shop in St Thomas. Even paying Duty on my groceries don't add up to the amount of money I would spend at these supermarkets.
  • Political Observer (05/10/2016, 09:42) Like (8) Dislike (0) Reply
    If prices were increased ahead of or concurrently with the minimum wage increase, it is no surprise. Greed, Greed, Greed! Too many businesses, i.e., shops, apartment rental, mechanic shops, construction contractors.....etc will regrettably used the minimum wage increase as an excuse to raise prices. Per the Committee, most employers were already paying above the old minimum wage of $4 per hour and hopefully most employers see paying more than $6 per hour. So the impact should be minimal, if any.

    Moreover, Doug is right. When prices rises due to the measly $2 per hour increase in the minimum wage no benefit really accrue to those at the bottom of the economic ladder. Their purchasing power stagnates and so does demand for goods and service. It is no secret that to stimulate the economy put money in the hands of those at the lower end of the economic ladder.
  • okay (05/10/2016, 09:49) Like (3) Dislike (1) Reply
    I agree with Doug
  • Well Well (05/10/2016, 09:51) Like (2) Dislike (1) Reply
    The more things change they still remain the same
  • ... (05/10/2016, 10:29) Like (4) Dislike (0) Reply
    PRICE CONTROL. You can't do something you're not allowed to do. The government does not care about the people. They're too busy tending to unnecessary sh!t!
  • John (05/10/2016, 11:00) Like (3) Dislike (0) Reply
    Loving the photograph.... which supermarket in the BVI is that...?
  • SOB! (05/10/2016, 13:27) Like (1) Dislike (3) Reply
    To think about it, most businesses already paying their employees atleast $6 an hour so no wonder most of them made recommendations for it to be moved to $6...Don't be fooled.They think we're stupid
  • Smj (05/10/2016, 14:54) Like (4) Dislike (0) Reply
    The problem is not the raise in minimum wage. It's these monopolies that feel that they are untouchable!
  • Diaspora (05/10/2016, 16:49) Like (3) Dislike (0) Reply
    Due to greed, businesses' pricing mechanism will not change until there is serious competition. As long businesses can gouged customers, there behaviour will not change. Most businesses have no sense of price fairness and reasonableness. They are have no conscience. Increasing prices because of a miniscule increase of the minimum wage is disheartening. No concern for residents at lowest enter of economic ladder. An increase hardly affects the rich and middle class. A minimum wage increase, coupled with concurrent price increases, does not improve the quality of life or standard of living. How can the pain of the long standing poor be eased.
  • geoff (05/10/2016, 17:16) Like (1) Dislike (1) Reply
    Now the government broke, they will be bringing in a sales tax, they have no other option. Y'all will have something to complain about then as goods will increase by another 15-20% just like in the rest of the world. People of BVI have had things too good in the recent past, too much money been wasted not invested. Chickens coming home to roost.
  • Quiet Storm (05/10/2016, 21:20) Like (3) Dislike (0) Reply
    Is price control the panacea for skyrocketing prices? Will it cure the greed? No. Price control deceivingly sounds like the cure for high prices but it is not. Why not you asked? Price control usually leads to shortages and poor quality. For example, rent control in some sections of New York results in shortages and poor quality. The apartments are of poor quality, for the landlords only do the minimum required by law and some even abandoned their properties and invest elsewhere. Secondly, there are hardly any vacancies in these run down apartments , for the prices are below market. So what is it the fix?

    Competition is the cure for prices coming down. Someone much wiser than I stated that nothing makes one appreciated one's job like a strong dose of unemployment. True that. Similarly, nothing brings prices down like a strong dose of competition. Which of our businesses have the courage set fair and reasonable prices? Which of our businesses have the conscience, the heart to stand alone and do the right things for consumers?

    Customers should reward those businesses that set fair and reasonable prices and boycott those that do not. The greedy s..bs have the heart to complain about people shopping in St. Thomas, online, Puerto Rico, Sint/Saint Martin, Miami...........etc. How can they look in the mirror or sleep well at night knowing that they are guilty of gouging their customers? Shame on those businesses that raise prices right away due to the increase in the minimum wage. Clearly, they care just about themselves and nothing about their employees.


  • watching (06/10/2016, 09:12) Like (1) Dislike (0) Reply
    Publish a list of the businesses raising prices and let the consumers decide accordingly . There is a great marketing opportunity for businesses that try to hold the line


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