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Retailers 'understand' minimum wage increase

Mon, Oct 31st 2022, 11:12 AM
Finance Tribune Stories

MERCHANTS said they understand the move to increase minimum wage as it is necessary to help ease the cost of the living crisis within the country.

 

Earlier this month, Prime Minister Philip “Brave” Davis announced an increase in the minimum wage from $210 to $260 per week.
#The higher wage will be retroactive in the public service to July of this year. For those in the private sector, the change will begin in January 2023. The timeline, Mr Davis said in his national address earlier this month, is to give employers time to prepare for the increased expense.
#Mr Davis has also said he is aware the increase is not enough for those grappling to survive in inflationary times, however adding that it is a positive step in the right direction.
#William Cash, managing director of Lowe’s Pharmacy, told The Tribune in a recent interview that the company has already made the necessary changes.
#“It’s going up and we’ve already adjusted our salaries accordingly, so it’s not going to affect us at this point,” he said.
#While Mr Cash acknowledged that the minimum wage increase will be “tough for many businesses”, he also said the company understands the need for the change.
#Super Value owner Rupert Roberts shared similar views as he says the foodstore chain has not paid below $260 for more than two years.
#When asked how the company is going to handle the higher minimum wage in the upcoming year, Mr Roberts said: “We have been paying the minimum wage ($260) for over two years now, that’s not going to bother us.
#“In fact, we take individuals in, train them, and put them to work. For the past two years, we’ve never started under the $260, as that’s been our minimum wage for the past two years,” he added.
#As the company currently pays above the current minimum wage rate of $210, Mr Roberts says he hopes staff are more “productive” as a result.
#Gowon Bowe, a top financial expert, said previously he thinks it would be “disingenuous” or premature for businesses to outright conclude that there will be closures or even layoffs once the new policies take effect.
#Though, Mr Bowe acknowledged that some businesses might be forced to make difficult decisions, especially if they are not making the profits needed to sustain operations.

Earlier this month, Prime Minister Philip “Brave” Davis announced an increase in the minimum wage from $210 to $260 per week.

The higher wage will be retroactive in the public service to July of this year. For those in the private sector, the change will begin in January 2023. The timeline, Mr Davis said in his national address earlier this month, is to give employers time to prepare for the increased expense.

Mr Davis has also said he is aware the increase is not enough for those grappling to survive in inflationary times, however adding that it is a positive step in the right direction.

William Cash, managing director of Lowe’s Pharmacy, told The Tribune in a recent interview that the company has already made the necessary changes.

“It’s going up and we’ve already adjusted our salaries accordingly, so it’s not going to affect us at this point,” he said.

While Mr Cash acknowledged that the minimum wage increase will be “tough for many businesses”, he also said the company understands the need for the change.

Super Value owner Rupert Roberts shared similar views as he says the foodstore chain has not paid below $260 for more than two years.

When asked how the company is going to handle the higher minimum wage in the upcoming year, Mr Roberts said: “We have been paying the minimum wage ($260) for over two years now, that’s not going to bother us.

“In fact, we take individuals in, train them, and put them to work. For the past two years, we’ve never started under the $260, as that’s been our minimum wage for the past two years,” he added.

As the company currently pays above the current minimum wage rate of $210, Mr Roberts says he hopes staff are more “productive” as a result.

Gowon Bowe, a top financial expert, said previously he thinks it would be “disingenuous” or premature for businesses to outright conclude that there will be closures or even layoffs once the new policies take effect.

Though, Mr Bowe acknowledged that some businesses might be forced to make difficult decisions, especially if they are not making the profits needed to sustain operations.

 

Click here to read more at The Tribune

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