Premier apologises for minimum wage debacle
The new minimum wage of $8.50 per hour was set to take effect on November 30, 2024 however was postponed by the government in a notice in early December 2024.
The Premier has since pledged that in early 2025, the government will clarify its plans for a phased approach to the proposed wage adjustments.
"Firstly, I just want to apologise to any employers or employees who were disadvantaged in any way," Dr Wheatley said, acknowledging that shifts in ministerial responsibilities and a busy schedule—including a trip to the United Kingdom and subsequent budgeting processes—had in parts, delayed progress.
Dr Wheatley sought to explain the complexity of raising the minimum wage, highlighting potential financial repercussions for businesses and consumers.
He noted that a significant hike could strain businesses, some of which have already projected annual payroll increases ranging from $700,000 to $1 million and said there is a potential domino effect of businesses passing the additional costs onto consumers.
This scenario, he warned, could ultimately harm the same workers the wage increase aims to support by driving up prices for essential goods and services.
Significant implications
Further defending his administration’s position, the Premier pointed to fears of job losses, noting that some employers have already signaled intentions to terminate staff due to anticipated payroll burdens.
"These things have significant implications," he remarked, reiterating the importance of a balanced policy.
Meanwhile Premier Wheatley sought to assure the public, that the increase to the minimum wage would proceed but reiterated the need for a gradual rollout and proposed a collaborative approach involving businesses, employees, and the government.
"We will have an increase to the minimum wage, but I'm going to have further discussions about how we phase in the increase of the minimum wage," he said.
A key element of the plan, he reminded, involves potentially raising the current $10,000 tax exemption threshold, thereby reducing the financial strain on businesses and employees.
"Government has a stake, businesses have a stake, and employees will have an easier time,” he stated.
Premier Wheatley additionally pledged to address these policy issues swiftly to provide businesses with sufficient notice for planning.
The Minimum Wage Advisory Committee was commissioned by former Deputy Premier and Minister for Financial Services, Labour and Trade Hon Lorna G. Smith, OBE in November 2023. Following extensive stakeholder and public consultations, the draft report of the committee was submitted to the ministry in May 2024.
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10 Responses to “Premier apologises for minimum wage debacle”
In addition, why is political injustices not seen as a crime against humanity in the eyes of political leadership? Crimes are crimes everytime, everywhere.
God our Creator is not only Truthful, but also judges our thoughts, words and actions, righteously.
Prices has already risen, $8.50 can't fill the void.
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