Minister reveals employers failing to pay minimum wage; $1.7M unpaid

Despite a $2 increase in the minimum wage for public sector workers set to take effect next month, Labour Minister Stephen Mc Clashie has disclosed that last year’s increase of $3 to $20.50 for all workers is not being fully implemented.

During his Budget contribution in Parliament, Mc Clashie said the Labour Inspectorate Unit within his ministry recovered $1.7 million in unpaid wages owed to employees who had not received the mandated increase over the past year.

“We have a number of policies and laws but sometimes people don’t do the right thing. People do what you inspect, not what you expect,” he said.

He highlighted concerning trends where many business owners fail to pay minimum wage, some attempt to employ children, and others neglect to provide paternity leave.

From October 2023 to September 2024, the Labour Inspectorate advised 275 walk-in clients and responded to 724 telephone inquiries. During the same period, the unit received 386 complaints and conducted 802 inspections, resulting in the recovery of $1,728,000 for workers who had not received their wages or increases legally, he said.

Mc Clashie also urged private sector employers to consider increasing their minimum wage.

“I urge those private sector companies who are still at the $20.50, there is nothing holding you back if you feel that you are getting the productivity levels and that your workers are good, for you to increase their rate. The Government has not said and will not compel you to do so and that is a decision to make on its own.”

He said the Ministry’s Conciliation Advisory and Advocacy Division (CAAD) has been addressing conciliation and mediation matters, offering advice to employers and employees.

He also acknowledged Government’s commitment to addressing sexual harassment in the workplace, an issue affecting men and women, particularly migrant workers.To tackle this problem, the ministry launched a national tri-lingual helpline, 800-CAAD (800-2223), where agents can communicate in English, Spanish and French. This helpline, established in June 2023, aims to sensitise both employers and employees on managing workplace harassment.

He also said the Sexual Harassment in the Workplace Bill is currently under review by the Chief Parliamentary Council.

Addressing child labour issues, Mc Clashie said Cabinet has approved his ministry’s engagement with the International Labour Organisation for technical assistance to expedite a national child labour policy next year.

He also discussed the national policy on HIV/AIDS, saying the ministry has engaged with 72 workplaces and 129 workers in sensitisation activities, while assisting an additional 25 workplaces in developing their HIV policies.

Commenting on the current labour participation rate, he noted that it remained steady at 560,400 employed individuals. Despite job losses, he said new opportunities have been created.

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