Price control before minimum wage can make sense - Wheatley
In answering a question “why is it taking so long to deal with minimum wage?”, asked by Doug Wheatley, host of Speak Out BVI on June 26, 2012, a caller stated that the issues must be fixed by the government.
The host said that there are so many conflicting interests in the VI about such a change and that is why the changing of the minimum wage policy is slow.
Wheatley said, with a raise of the minimum wage, merchants and the importers existing in the Virgin Islands would also raise their prices which would then neutralize the increase that the workers would get. “By the end of the day you would not have been any better off than before, quite possible for you to be worst off.”
He stated that raising the minimum wage by itself will not accomplish the particular goal since other things such as price control are required as well. “There are other things to put in place for it to make sense.”
He added that many in the VI are behind the idea of the increase of the minimum wage, while others are not, due to the impact it might have on them and their businesses.
Wheatley informed the caller that with the minimum wage being $4.25 cents, it is evident that the minimum wage remains the same but the cost of goods and services keeps on increasing.
He further disclosed that there is a committee in place within the Virgin Islands that specializes in regulating the issues of the minimum wage.
“There should be a minimum wage for different professions in society,” said the caller.
In agreement, Wheatley added that there should be a different minimum wage for different sectors within the economy. “This would be a good idea to fix the problem.”
The caller stated “I think that would be a good way for them to start. Start to look at what sectors in the community are employable and see what is the general market for employability and what are the fees that best assist and ways that are comparable to the skill.”
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