The minimum wage in the Virgin Islands has stood at $4.00 per hour for the last 15 years. Photo: khaleejtimes.com

A caller into last evening’s Speak Out BVI radio talk show hosted by Doug Wheatley (above) suggested that there needs to be a stronger Consumer Protection Agency if the minimum wage is ever adjusted upward or else businesses will raise their prices as well. Photo: VINO/File

Chairman of the Minimum Wage Committee Simon Potter said that the increase in the minimum wage is long overdue and he said that realistically “you really can’t make a big jump one time, you have to keep things in a balance.” Photo: VINO/File

The caller last night March 24, 2015 suggested that businesses will not resist the temptation to raise their prices if the minimum wage rises to more than $4 per hour, a level it has been at since 1999.

“It doesn’t matter how much you put as the minimum wage…you could put $10 as the minimum wage. Once that money starts paying out the price for an apartment is going to go up automatically and the price for food is going to go up automatically,” said the caller to the show heard on ZBVI 780 AM and hosted by Doug Wheatley.

“What we need is a strong consumer protection agency so that people could feel like the government is doing something for them,” said the caller.

'Minimum wage increase overdue'

In response to the caller, Chairman of the committee set up to examine the minimum wage Simon Potter said this is a recommendation that the committee got before and that they will include in their recommendations to government going forward.

Host Wheatley said that this is an issue that has been raised many times on his show “that if you don’t have consumer protection or price control then you’re not really going to get the benefit from the increase in minimum wage because persons will find ways and means of raising their prices in tandem with the raise in the minimum wage.”

Potter said the increase in the minimum wage is long overdue and he said that realistically “you really can’t make a big jump one time, you have to keep things in a balance.”

“The truth is, most companies operate on a budget. You budget yourself for the year and suddenly there is a drastic increase, it will [affect that company],” he said. “We cannot allow a situation where it takes so long to make an increase. It has to be reviewed more constantly than after 16 years. But we looked at it and we have to be reasonable and rational with where we go right now. Where we go might not be where persons would like to see it but we will take certain steps at a time,” said Potter.

Deputy Chairman of the Committee Ms Benedicta Samuels-Richardson said that it is for this reason that people need to come out to the meetings and voice their concern.

Need for constant review

Wheatley said too that there needs to be a more constant review of the minimum wage to keep it in line with the constantly increasing cost of living.

The committee will hold a meeting in Virgin Gorda this evening March 25, 2015 and is encouraging members of the public to come out and air their views. The committee lamented that a meeting held in Road Town last week on March 18, 2015 was very poorly attended.

The committee is to submit its report to government with the recommended figure. This it anticipates will be done towards the end of April or early May 2015.