The Employers’ Consultative Association of T&T has welcomed the minimum wage increase, but believes certain things were missing from the 2024 Budget.

The ECA says it was heartened by the theme articulated for the presentation which focused on building capacity for diversification and growth.

It says the minimum wage increase is reasonable as it sought to balance the interests of employee and employer, particularly those businesses are committed to maintaining employment levels.

It laments however that Government’s industrial relations strategy seems to lack the requisite funding for the adequate resourcing of key institutions such as the Industrial Court, Labour Inspectorate and the OSH Agency.

The ECA issued the following summary of its thoughts on certain aspects of the 2024 fiscal package:

WHAT WE LIKED

• Minimum Wage. The increase in the minimum wage to $20.50 per hour, is welcomed by the ECA, particularly given the impact to citizens and businesses over the last few years. We believe this was a reasonable increase that sought to balance the interests of employer and employee, and in particular, those businesses who remain committed to maintaining employment levels. Based on our own membership survey, we have noted that this increase better aligns with the current range being paid by Employers within the private sector. However, we also renew our call for the allocation of funding for the development and establishment of a national wage setting model, in a consultative
  manner, to support the work of the Minimum Wages Board and to add more objectivity and predictability to the wage setting process.
• Digitalisation. We note the recurring theme of advancing the digitisation agenda, which is now becoming a necessity as digital technologies continue to evolve and become more entrenched in daily life and the conduct of business. The ECA fully supports this drive understanding that it can contribute to expanding access to various opportunities for all citizens, improving the ease of doing business, and driving greater efficiency in the delivery of public services. However, this strategy must not be exclusive and therefore, we are particularly pleased to see an acknowledgement of the need to create a national financial inclusion roadmap for citizens and businesses alike.
• Industrial Development/Diversification. The ECA was pleased to see some notable focus on boosting industrial capacity and facilitating continued diversification efforts through export growth, the expansion of apprenticeship, trade and investment programmes in emerging sectors, the long-awaited finalisation of the Single Economic Zone, and the increase in incentives for those in the agriculture sector. Investments in these various apprenticeship and developmental programmes demonstrates foresight in recognising the value of investing into skills and training which ultimately feed into the wider mandate of what successful diversification can entail.
• Backpay to Public Sector Workers. The commitment to release backpay by Christmas 2023 to public servants who have settled wage negotiations is a welcomed pledge and a fruitful culmination to long-standing negotiations that we hope materialises.
• SMEs and Foreign Exchange. Continued investment in developing the capacity and competency of the SME sector is welcomed, and in particular, access to foreign exchange for qualified SMEs. However, we eagerly await further clarification on this initiative, with the understanding that foreign exchange access is a major impediment to conducting business and business growth, which can in turn negatively impact jobs and job creation.

WHAT IS MISSING

• Labour Institutions. While we commend the increase in the minimum wage and are heartened by the commitment to continue the settlement of outstanding wage negotiations, the Government’s industrial relations strategy seems to lack the requisite funding for the adequate resourcing of those key institutions charged with administration or enforcement within our industrial relations system, such as the Industrial Court, Labour Inspectorate and the OSH Agency. This is especially pertinent given the inclusion of a safe and healthy working environment by the ILO in 2022 as a fundamental principle and right at work, as well as the risks associated with a growing informal sector.
• VAT Refunds. There was no specific reference to VAT refunds for businesses, particularly in respect of a strategy for improving the efficiency of the refund system and reducing the continued delays faced by businesses in receiving VAT refunds. While we envision that the long-awaited T&T Revenue Authority (TTRA) may bring some relief to this ongoing issue, its establishment does not seem to be materialising in the short to medium term, leaving businesses, particularly small businesses, without timely access to this source of revenue injection, as small as it may be in some instances.

WHAT ARE OUR CONCERNS

• Crime. Crime is a major concern impacting businesses and citizens daily, and in a most brutal manner. In this regard, we welcome the injection of $80 million to the TTPS for vehicles and equipment, as well as the expansion of its recruitment programme, which together, we hope and pray that together with the installation of new scanners at ports of entry, will improve the capacity of our enforcement agencies and yield the outcomes we so desperately need. With more than $67 billion spent on National Security over the last decade, we must now be more resolute in ensuring that while resources are provided, there must be proper management and maintenance of these resources as well as defining performance standards at all levels, with clear deliverables and then holding incumbents accountable. There is also a fundamental issue of trust in our enforcement agencies that continue to impede on effective collaboration with members of the public and other stakeholders.
• Education. It is commendable that such a significant share of revenue disbursements has been allocated to this important sector, which in a real sense is responsible for training current and future leaders of our nation. This includes the tax allowance for corporate sponsorship in public and private schools, which businesses are encouraged to support as financial realities allow. But, with the continued investments in digitalisation and diversification of the economy, and the continued transformation of the future of work and jobs, we must ask whether our education system – policies and curriculum, are using some of these resources to ensure realignment, with national development priorities and the current and future needs of the workplace.