PM advises against unions' minimum wage increase

THE Prime Minister advised trade unions against a minimum wage proposal they are advocating.

Dr Rowley said the proposal could end up hurting the very workers that the unions were trying to help.

He made the comments during an interview on TV6's Morning Edition Thursday.

Earlier this week, members of the Oilfield Workers Trade Union (OWTU) and the National Trade Union Centre (Natuc) delivered a letter to Finance Minister Colm Imbert's office at the Eric Williams Financial Complex in Port of Spain, requesting an increase in the minimum wage.

The letter proposed an increase from $17.50 to $30 per hour.

In the interview, Rowley was not surprised that some trade union members were helping members of the Opposition UNC in the local government election campaign, believing the UNC could help them.

He said this was par for the course and the PNM "still has significant labour support."

While the voice of labour cannot be ignored, Rowley said the level of increase in the minimum wage being proposed could be problematic.

"If we have a minimum wage as high as they say, people are going to lay off workers because the (labour) cost is too high."

Rowley said that could cause an increase in inflation, resulting in an increase in the cost of various goods and services.

He added that many of those things were things which trade unions complained were already too expensive.

"What we need to do, is to create more opportunity for more persons to be in a position to meet their needs and requirements."

That, Rowley continued, involves collaboration between government and the private sector.

"A dollar on the move is an active country."

Rowley advised trade unions to come to "accept the affordable (wage) offer" being advanced to them by their employers, to allow the workers they represent to have an increase in their income.

"That will put some money into the hands of the same people that you say are suffering."

He was hopeful that when the trade unions returned for the next set of negotiations, a better offer could be placed on the table as the economy improved.

Referring to international ratings agency Standard and Poors affirming TT's' BBB credit rating with a stable outlook, Rowley said the economy is moving in the right direction after the challenges it faced over the last two years because of the covid19 pandemic.

He was eagerly anticipating the opening of the Phoenix Park Industrial Estate in a few weeks time.

Rowley said the estate would boost the non-energy sector of the economy.