In pursuit of a fair minimum wage – Jamaica Observer

I ncreasing the minimum wage is a hotly debated issue in economics, and in political discourse more generally. On the one hand, supporters of increasing the minimum wage argue it will lead to a higher standard of living among low-income workers and their families. On the other, the argument is that tampering with market forces by artificially raising the wage floor will lead to job losses and fewer employment opportunities. As an advocating behavioural scientist I wish to add my two cents.

In 2016 the Government announced an increase in the National Minimum Wage from $5,600 to $6,200 per 40-hour workweek. The relative yet absolute inadequacy of the minimum wage has become apparent enough that it calls for revisions. However, while the Government contemplates a reasonable minimum wage for workers at the lowest scale of the job market, it must in a serious way pay more attention to enforcing all the relevant laws relating to their working conditions.

Minimum wage increase is not just about a few more dollars in the pocket of an individual; it is about attaining psychological well-being for the lowest income earners in our society. I am appalled when I hear the stories of the bad working conditions many low-income workers in some industries have to put up with. In some instances workers cannot afford to get sick; have no safety gear, toilet facilitates, time off, overtime pay; suffer victimisation, and I can go on and on.

Who really looks out for the lowest income earners in our society? It pained my heart when I was told by two domestic workers, on separate occasions, that they are paid $2,000 and $3,000 per week. This is not only wrong; it is criminal and tantamount to slavery.

The lowest income earners in our society are part of the working poor defined as working people whose income falls below the poverty line. What Governments need to remember or understand is that poverty harms people. There is a mountain of empirical evidence to support the damaging impact of poverty on the psychological, social and physical well-being of adults, children and communities. For example, poor children have found to suffer from a long list of physical and psychological disorders at higher rates than do other children, and their levels of success and adjustment in school and beyond are lower.

The MacArthur Foundation 2009 summarised the multitudinous evidence demonstrating that poor adults tend to be sicker and to die earlier than the rest of us. The bottom line is that poverty hurts and diminishes well-being. However, income sufficiency, plus improved working conditions, can reverse the damage caused by poverty.

A higher minimum wage has the potential to:

decrease family stress

give individuals more spending power and provide parents with a little more disposable income to meet their family's needs.

allow better participation in the economy or, remarkably, make educational achievements more possible. Success socially, especially with regard to training,is a great self-esteem booster. Far better than standing in front of the mirror trying to convince ourselves we are special.

make people feel they are being treated fairly, thereby causing them to act pleasantly. Have you ever wondered why there are so many miserable people serving you at some food outlets or selling you a pair shoes in a store? I'd like to think that the living wage is a big part of the reason. Some of the miserable attitudes directed to you have little to do with you. In most cases the bad attitude you get is linked to the amount they earn and consideration for the number of mouths to be fed at the end of the day, the debts owed, the 'partner' to be paid and, of course, that 'inconsiderate' customer who asks a whole heap of questions and still walks out without buying anything. Then came you!

A higher minimum wage and good working conditions, including health care, access to basic services offered by the Government, etc, are likely to see happier employees, even if they don't get the $12,000 per 40-hour workweek that was suggested by one person on Facebook in response to Finance Minister Audley Shaw's question: What do you think is a fair minimum wage?

Additionally, a fair National Minimum Wage is an anchor for employers. It tells employers how to set pay generously and competitively by exceeding the minimum wage. The minimum wage is not intended to be the wage that will make workers feel over the moon; however, it should not be so irrelevant that it cannot keep pace with the economic climate of the country. Neither should it be too onerous on employers that it drives them out of business.

Henry J Lewis is a psychology lecturer in the School of Humanities and Social Sciences, University of Technology, Jamaica. Send comments to the Observer or hjlewis@utech.edu.jm.

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In pursuit of a fair minimum wage - Jamaica Observer