Aretha Welch
The pundits have hushed, the smoke has cleared, the elections are done but you are still not making enough to feed your family.
Now, a new Government stands at the helm of ship T&T. The People’s Partnership Government includes former Oilfield Workers Trade Union (OWTU) boss, Pointe a Pierre MP Errol Mc Leod.
But what exactly does this mean for the $10 per hour minimum wage?
How quickly can those making the minimum wage expect an increase?
How significant an increase can they expect?


BIG INCOME: Calder Hart
Economist Jwala Rambaran also asks on what grounds the increase would be calculated.
“There must be a study of what it takes for a person in T&T to live above the poverty line. Not as it stands today, but an adjusted one, which works for T&T and the cost of living today.
“While labour leaders, including Vincent Cabrera of the Banking, Insurance and General Workers Union (BIWU), have said the country’s minimum wage had put a seal on how much some families in this country can achieve and attain, outgoing Prime Minister, Patrick Manning had said on the hustings that the minimum wage was one of the fixtures which helped keep businessmen in Trinidad and Tobago competitive.
Manning questioned whether or not his challengers would render business uncompetitive by allowing high wages to become a mainstay of the T&T economy. He said that his party had allowed business to prosper by ensuring a low cost of labour, which kept both businesses alive and employees employed.
Now, the People’s Partnership must strive for two goals: a flourishing business community; and a happier worker who won’t see a life of selling marijuana or robbing a few neighbours at night as easier and more profitable than working eight hours per day.
Can this be done?
The numbers
A worker who is taking home minimum wage in T&T for a 40-hour work week would make $400 each week, or $1600 per month. Is $1600 per month a minimum wage, or in fact what international economists term “poverty pay”?
According to People’s National Movement (PNM) advertisements in the print media prior to the party’s May 11 manifesto launch, the “implementation” of the minimum wage is something the Government has “achieved”.
But Cabrera questions whether the minimum wage was in fact implemented at all, as the previous Government’s advertisements so boldly stated.
And New National Vision (NNV) leader, Fuad Abu Bakr asks: How does an adult in T&T who has to eat, transit to and from work and put a roof over his head survive on $1600 (US $266) per month.
The inequity
Both business journalists and average citizens have posed the question: How can any Government call this honest pay for honest work? What is honest about persons working eight hours per day but being unable to supply themselves with their basic needs?
On December 18, 2009, former Finance Minister Karen Nunez-Tesheira revealed in Parliament that former UDeCOTT chairman Calder Hart had a total monthly compensation of $146,000.
A worker on minimum wage makes a total of TT$19,200 per year.
Speaking in the House of Representatives, Nunez-Tesheira said Hart’s salary, from September 1, 2006 was $85,000. From October 2009, the salary was increased to $90,000 per month.
Other perks were: a motor vehicle (not to exceed $425,000); $6,000 housing allowance; telephone allowance of $500 per month for a land line plus overseas calls; a cell phone and an allowance of $500 per month; entertainment allowance of $2,000 per month; group life plan with coverage up to two times annual basic salary; membership in the corporation’s health plan and an annual executive medical not exceeding $2,500 in value; and gratuity equivalent to 20 percent of basic salary earned over the period of employment.
As chairman of Home Mortgage Bank, Hart received $14,375 per month. As TTMF (Trinidad and Tobago Mortgage Finance) chairman, he got $9,000 per month. As NIB chairman, Hart received $10,000 per month. And as NIPDEC chairman, he got $9,000 per month. Additionally, Hart had drawn a bonus for 2006-2007 of $95,625.
In justifying Hart’s compensation, Nunez-Tesheira gave unsolicited information about Vishnu Ramlogan’s earnings as president of TIDCO between 1999 and 2001, during the UNC’s tenure.
This amounted to $3.1 million or an annual average income in excess of $1 million, she had said.
Nunez-Tesheira also detailed Donald Baldeosingh’s generous package under the same administration.
She said Hart’s compensation package was much less than the salaries for equivalent private sector positions.
But that’s not the issue for the man on the street who has to decide whether to buy a loaf of bread for his family or travel to work.”
The heads could make that (Hart’s salary),” said a woman on Independence Square, Port of Spain, “if we as a country have enough money to pay. I don’t mind, running a state enterprise is hard, stressful work I am sure. What I mind is that I am paid this crap and nobody else seems to mind. Because I don’t have letters behind my name I have to settle with this. Well everyone cannot be an academic, but everyone who is willing to work should be paid decently.”
She shook her head in disbelief as she walked towards the Morvant taxi stand, baby on hip.
The working impoverished
According to the US State Department’s 2008 Human Rights Country Report on T&T, the minimum wage in 2008, which stood at $9 per hour at the time, did not provide for an acceptable standard of living.
The report said: “The national minimum wage was TT$9 (approximately $US1.45) per hour, which did not provide a decent standard of living for a worker and family; however, since 2006 the government provided limited food assistance for poor families through a national cash transfer program. There were occasional press reports of minimum wage violations with no enforcement by the government.”
Since then the minimum wage has increased by TT$1.
Last year, Nunez-Tesheira stated that the country’s per capita income was an impressive US$16,090, more than double the 2001 figure of US$6,890. This works out to an estimated TT$96,540 per year. In other words, if the country’s income is distributed equally, each citizen would get close to TT$100,000 per year. While she used the statistic to illustrate that the country’s situation is improving, what is also evident is that while the country is getting richer, inequality is increasing.
UWI economist Marlene Attzs has shown, in presentations to journalists, that in 2007 (as well as several other years), the annual salaries of the 30,000 people employed in the energy industry (oil, gas and petrochemicals) added up to more than three times the combined annual salaries of the rest of the work force (570,000) in T&T.
Despite attempts to convince us that $10 per hour is a pillar of equity, it is evident that wealth and income are inequitably distributed here in T&T.
With a new Government coming in, those who earn $1600 per month wait with bated breath.
awelch@trinidadexpress.com