Is a minimum wage increase the answer? – POST-COURIER

One of the hardest questions to bring to any table in any economy remains the issue of the minimum wages of the average worker, let alone a Papua New Guinean.

Whether it be government, private sector, or the humble wage earner, striking an accepted balance in this regard almost seems an impossibility for all parties.

Here recently we had reports of Public Motor Vehicle (PMV) fares rising, and also of businesses of consumer goods being given leeway on the notion that they have had a hard time during COVID-19 and are being allowed by the consumer watchdog ICCC to move within a five per cent increase threshold.

They seem to be given leeway and in all fairness they provide a service that is dependent on returns by way of profits.

While it is understood, the economy has suffered under the ripple effects of a global pandemic and a global economy prior to it; many argue the social issues of today are a direct reflection of the current earning capacity of the average Papua New Guinean.

Assistant General Secretary for the PNG Trade Union Congress Mr Anton Sekum provided a clear view into the world of deciding the minimum wages debate within the circles of government and the employer.

Even with the recent comments made by the current Acting Governor of the Central Bank of PNG on the affordability has long been the last question asked in the face of pressures for revenue of governments to the survival of employers.

Mr Sekum describes the current wage rate, for workers as Modern Day Slavery. Indicating as a former member of the 2013-2014 Minimum Wages Board (nominated by the PNG Trade Union Congress to represent workers)

He indicated the last review that saw the wage rate increased to K3.50 per hour, with the next review to be in three years time, adding that seven years later nothing has been forthcoming.

Seven years on and workers are still stuck with K3.50 per hour and the government is not concerned about this reality at all, he stated.

Sekum argued that while income tax remains the largest earner for the nations budget, it seemed fair that it should have prominence as well when making the next set of determination.

However, businesses still argue that any increases without proper consultation will result in more job losses rather than an increase. Adding the rise in prices (wages) would decrease the availability of jobs.

We think that the issue should be looked at, even if it means government will have to set up another Minimum Wages Board through the Labour Department with the need now squarely in our faces.

At a time when the rise in cost of living, inflation is on a steady rise it is time now the Government also take into consideration its largest earner of income taxes, the average PNG workers.

Seven years is a long time especially when prices continue to rise in the face of a stagnant minimum wage front, because while we agree with businesses that jobs are needed right now, efficient productivity is also key to maintaining those job numbers in the face of rising costs.

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Is a minimum wage increase the answer? - POST-COURIER