Samoa’s Minister of Labour Lautafi Fio Selafi Purcell has told the Parliament that a review of the local minimum wage will start in July.
“To say that the minimum wage is extra sensitive is an understatement and Government is fully aware of the implications when it comes to income issues as they represent the livelihood for families especially those categorised in the low income bracket,” Lautafi said.
“But we must not be oblivious to the fact that affordability on the part of the employers is also another main contributing factor in calculating the minimum wage.”
Reaffirming the Government’s support, Prime Minister Tuilaepa Sailele Malielegaoi told the legislators that the real issue is about the minimum wage for casual workers who are at the mercy of the demand market and their employers.
And to suggest for the minimum wage now under the microscope should include salaried or permanent employment is a facade.
“I fear for the Business Community should we include the minimum wage for permanent or salaried employees because it’s the Private Sector which will suffer the consequences,” said Tuilaepa recalling past experiences where a number of local commercial plantations were forced to close down as a result of dramatic increases in the minimum wage.
The Prime Minister also reminisced on the last Minimum Wage increase, which was unexpectedly delayed for over a year to allow the local Business Community to get their business plans and financial house in order to comply.
And he feels that there is no point in raising the minimum wage and then immediately having businesses close down as was the case in neighbouring American Samoa recently.
He explained that the mandated federal minimum wage imposed by the US Congress on American Samoa some years ago led to the closing down of the Van Camp fish processing plant.
Beginning in July, a consultant will start the minimum wage survey and the study’s findings will be reviewed by Cabinet and tabled before Parliament in two to three months time.