Voices Magazine-Vol4-Issue

VOICES Bi-Monthly Magazine of the University of Technology, Jamaica | January – April 2021 16 A recently concluded study titled, “Towards a Liveable Minimum Wage in Jamaica” led by Professor Fitzroy Henry, Professor of Public Health Nutrition at the University of Technology, Jamaica, has provided valuable impetus for informing public policy and current deliberations by the National Minimum Wage Advisory Commission concerning a liveable minimum wage to protect the most vulnerable in society.. Looking at the lowest possible cost to obtain a balanced diet and the contribution of local and imported food to that diet in various parishes, Professor Henry’s study determined that the Jamaican minimum wage should be increased from J$7,000 to J$8,350 per week. Professor Henry disclosed the findings of the study which was funded by the UTech, Jamaica Research Development Fund (RDF) at a virtual presentation held on January 28, 2021. To assess vulnerability, the analysis identified what proportion of the minimum wage is required to obtain a low-cost nutritionally balanced diet. In this regard, the study avoided the traditional practice of purposefully manipulating the Consumer Price Index (CPI) which often determines the minimum wage. Unlike other economics-based approaches to establish minimum wage, this study uniquely utilized a more objective biological benchmark of consuming 2400 calories as a food intake marker. Elaborating on the study’s methodology, Professor Henry informed that food prices were collected from both high and low income communities in each of the 14 parishes. The results showed that the average cost of the food basket in low and high-income communities was $475.96 and $478.02 respectively. The cost of the various baskets was compared with the current minimum wage in Jamaica. The emphasis was placed on consuming healthy foods by the low-income groups to avoid the consequences of obesity and chronic diseases. The main finding was that the average cheapest standard diet can be obtained in Jamaica for about J$477 for an individual. Professor Henry explained that “this means that in June 2020 (during which time the collection of data across parishes was conducted), 48% of the current minimum wage would be required to purchase the food basket for one person in both low and high-income areas. Noting that this is unacceptably high, Professor Henry noted that to meet a lower threshold of 40%, an increase in the minimum wage to J$8,350 per week was recommended. The study therefore proposes a 19.28% increase in minimum wage to reduce the percentage of wages spent on food. Professor Henry noted that the findings paint a grim picture for households supported by minimum wage earners, who he pointed out, supplement their income through social intervention programmes, such as those spearheaded by the Ministry of Labour and Social Security, and remittances from overseas. Professor Henry also underscored the need for more educational programmes to inform consumers about the combinations of foods which could comprise a tasty, culturally appropriate nutritious diet at low cost. Looking further at minimum wage earnings across the Caribbean region, Professor Henry shared data showing that it would take a significant increase of 59%, or $11,130.00 per week to bring the Jamaican minimum wage on par with neighbors such as St. Kitts and Barbados. While highlighting the dire need to reduce poverty and to protect the health and well-being of vulnerable minimum wage earners, the Public Health Nutrition expert however, acknowledged that an increase in the minimum wage could trigger economic implications such as inflation and the possibility of employers passing the increase in wages on to the consumer. He, however, emphasized the benefits, including an increase in consumer spending, benefits to employers through decrease in employee turnover, poverty reduction, and improvements in health and the cost of healthcare through consumption of more balanced diets. UTech, Jamaica Study Recommends 19.28% Increase in Minimum Wage to Reduce the Percentage of Wages Spent on Food Professor Fitzroy Henry, Professor of Public Health Nutrition at the University of Technology, Jamaica