Sudden wage increases without proper dialogue/phased implementation strategies could result in reduced jobs, higher operational costs and increased prices – JHTA

As discussions continue over the financial promises made by the island’s two major political parties, one tourist organization is adding its voice to the calls for meaningful consultation before any adjustment.

On Sunday, the Jamaica Labour Party said that if it is returned to power after the election tomorrow, it would increase the minimum wage to $18,500 in the first budget, then gradually raise it to $32,000 over the next few years.

It followed a pledge by the People’s National Party to raise the income tax threshold to $3.5 million.

Both parties have posited that their plans are feasible and beneficial to Jamaicans.

However, there have been mixed views among citizens, including members of the business community and the private sector, over whether the latest proposals from the parties will be effective.

There have also been concerns about whether proper dialogue is being conducted with key stakeholders on these matters.

Among those concerned is the Jamaica Hotel and Tourist Association (JHTA).

President Christopher Jarrett explains that tourism accounts for approximately one-third of Jamaica’s Gross Domestic Product (GDP) and is one of the country’s largest employers.

He says any shift in wage policy will have wide-ranging implications for the sector, including employment levels, competitiveness and the affordability of the Jamaican tourism product in a highly competitive global marketplace.

Mr. Jarrett points out that the Minimum Wage Advisory Commission and the law already provide for an established consultative process involving the Government, trade unions, private sector, civil society and academia.

He says this framework must be utilized to ensure transparency, fairness and balance in decision-making.

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