The Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) on Friday warned that the government’s planned two per cent minimum wage increase set for January falls short of the rising cost of living faced by Barbadian workers.
In a statement, CTUSAB General Secretary Dennis De Peiza said any adjustment to the national or sectoral minimum wage “must bear a relation to the escalating cost of living, that is simply borne out in the high food prices, the cost of goods, services, healthcare, utilities, transport and doing business.”
He argued that the government’s own economic declarations created a reasonable expectation of a more substantial increase, pointing to official reports of a strong fiscal performance. He said the administration had publicly stated that it “realised a bounty in the last financial year, and that it has recorded seventeen consecutive quarters of economic growth,” which should “position the government to be able to share a greater piece of the pie with vulnerable workers.”
He added: “The government’s share of the economic pie is therefore inconsistent with its pronouncements of its fiscal performance, which speaks to surpluses in both the overall and primary balance. This, along with the claim of a strong economic performance as this relates to GDP growth, leads to an expectation that the government can provide a more realistic increase in the national minimum wage rate.”
It was now left to be seen “how the government will treat to rewarding the public officers of Barbados, who have been tasked with doing the heavy lifting towards ensuring the restoration of the economic and fiscal stability of Barbados,” he said.
The two per cent adjustment, which takes effect in January, will raise the national minimum wage from $10.50 to $10.71 per hour, while the industry rate for security guards will move from $11.43 to $11.66. Six months ago, the national minimum wage climbed from $8.50 to $10.50, and the security guard rate rose from $9.25 to $11.43.
On Thursday. Minister of Labour Colin Jordan defended the decision, describing the increase as a careful compromise intended to protect both workers and businesses. He said the modest rise was designed to provide relief for the lowest paid without placing undue strain on employers.
Jordan maintained that the two per cent adjustment represented a deliberate and measured approach to wage reform. He said the government remained committed to steady and predictable improvements for those at the bottom of the pay scale. He confirmed that analysis had already begun through the Minimum Wage Board to understand the impact of the June 2025 increase and to develop an evidence-based indexation framework.
“Some work started to be done with respect to impact on various aspects of the economic system,” he said, explaining that international models had been reviewed but no country-specific mechanism had yet been finalised.
Cabinet would ultimately act on the board’s recommendations, the labour minister told a news conference at Ilaro Court.
Although he cautioned that the January increase may not be enough, De Peiza acknowledged that the move could be seen as a commitment by the government to keep its promises to workers.
He recalled a statement made by CTUSAB President Ryan Phillips in May: “It is to be expected that any upward adjustment in the minimum wage would enable the most vulnerable to have access to the decent living wage.”
He said this continued to demonstrate the umbrella trade union body’s support for increases in both the national and sectoral wage rates. (SZB)
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