Good news for 80,000 workers

 POLITICS sells in Papua New Guinea so our front page story yesterday about the increase in the minimum wage rate was hardly noticed.

People were more focused on the political turmoil than the good news that more than 80,000 workers throughout the country will be getting more money in their pay packets.

The approval of the minimum wage hourly rate by 91 toea to K3.20 should be welcomed by the workers, their families and other dependents.

The increase from K2.29 was recently approved by the Minimum Wages Board and endorsed by the National Executive Council last week. It is expected to be gazetted by the end of this week.

It took much deliberation by the board and all stakeholders to reach agreement on the new rate.

Furthermore, the minimum wage will increase to K3.36 one year from the date of gazettal and to K3.50 in the following year.

That’s good news amid the current doom and gloom.

Workers in Port Moresby, Lae and other major centres have been screaming over the past months about the increasing cost of living. Their common complaint has been that their wages are not on par with the soaring prices of food, clothing and other necessities.

Hopefully, the prayers of most minimum wage earners have been answered.

As Labour and Industrial Relations Minister Benjamin Poponawa said the increase in the minimum wage “in essence recognises the need to provide a fair and equitable wage rate and (also) provides for the agriculture sector and struggling businesses”.

He said the new rate should adjust the purchasing power of the minimum wage earner and enable people to raise their standard of living.

Papua New Guinea Trade Union Congress representative Anton Sekum was upbeat when welcoming the increase. “For far too long we have had an inequality in the distribution of wages and with the current growth in our economy, it is timely that the increase is given.”

According to Sekum, “calls from industries as well workers were heard when reviewing the minimum wage”.

He added that it was fair in that submissions from all stakeholders were thoroughly considered.

We could not agree more and commend the Minimum Wages Board and all stakeholders for their tireless efforts in reviewing the minimum wage and finally reaching agreement on the new rate and its subsequent increases.

It is worth noting that exemptions have been made for workers in the agriculture sector and employers who are financially incapable of paying the minimum wage.

The board saw the need to allow the agriculture sector and struggling businesses to expand and participate fully in the economy.

As well, a three-month grace period will be given from the date of gazettal for applications of exemptions to be submitted to the board.

The onus is now on the Department of Labour and Industrial Relations to effectively police the minimum wage and ensure that the private sector adheres to the new rate.

As Poponawa rightly said the new minimum wage rate should enable people to raise their standard of living.

With a higher buying power, minimum wage earners and their families will be able to pay for goods and services that they currently cannot afford.

While it is reassuring to have extra cash, the prices of foodstuff and other necessities will not remain the same. The current trend of rising prices and falling kina will continue to impact on the purchasing power of workers.

It is therefore necessary for the Government’s consumer watchdog, the Independent Consumer and Competition Commission (ICCC), to ensure that the prices of goods and services are well contained.

The capital city is littered with shops that charge inflated prices for basic foods items, which indicates that the ICCC lacks the capacity to carry out inspections of these outlets.

While the commission is focused on scrutinising shops that sell items with foreign labels, it does not seem overly concerned about the difference in pricing of foodstuff and other items. 

Indeed, the new minimum wage will not make any difference to the 80,000 workers and their families if the cost of goods and services keep increasing.