Cheers!

Ed Forbes 

Turks and Caicos, August 22, 2024 – Without a doubt, these are very extraordinary times in the lives of our people in the Turks and Caicos Islands. The economic impact and  inequality between the different Islands has drawn huge differences between those who can afford to continue thriving, and those who are barely making it.

Therefore, we need to take extraordinary measures to move beyond the suffering left by the pandemic, such as looking at the escalating cost of food prices and start with making provisions to alleviate this strain.

In my opinion, it should remain high on the priority list of this administration’s agenda, along with the other competing issues.

Currently, the minimum wage in TCI is $8 per hour, which is over a 20 percent increase within the past three years. Despite the increase, it has done very little to match the rising cost of inflation and is incomprehensible.

Unlike many of the other Caribbean islands, with the exception of seafood, practically all other consumable goods are imported and the service industry dominates the job market.

Is it time to raise the minimum wage again? There are several benefits to higher minimum wage. As a matter of fact, many experts have said it will help create jobs and grow the economy. The declining value of the current minimum wage in these islands is one of the primary causes of wage inequality, especially when the price of groceries continues to increase.

There is also a huge wage disparity between low- and middle-income workers; and that’s the majority of Turks Islanders. I’m inclined to believe if you were to poll TI’s, a large majority will support increasing the minimum wage again.

Income in these islands is a major determinant factor when it comes to the quality of life affecting the health and well-being of individuals and families.

This varies by social factors such as age and ethnicity. Medical experts have concluded over the years that the impact can also lead to obesity and other health related issues.

Although there is a minimum wage law in TCI, due to the  long-held traditions, you will find that it is not uncommon for some employers to still pay employees what they feel the job is worth.

As a small business owner myself, I realized that it could be difficult at times putting payroll together at the end of the week, but paying employees a fair wage is the right thing to do.

Many opponents may say given the economic challenges we are faced with, their businesses cannot afford to pay employees more, or will be forced to reduce hiring. I beg to differ, as there is never a perfect timing. As a matter of fact, it could further increase productivity in the long run.

Perhaps, if low-income workers earned more money, their dependence on working two jobs may be reduced, thereby creating more opportunities in the job market.

Being forced to work two jobs to make ends meet, could be very taxing on families especially those with children. In some cases, it could be contributing to the delinquency of our youth due to the lack of two fulltime parental homes.

Prior to the pandemic, improvements in productivity and economic growth in this country have outpaced increases in the minimum wage and housing affordability.

The current minimum wage as it stands, has not kept up with worldwide inflation.

Grocery stores prices are normally one of the tell tale signs for rising inflation. Although price increases are usually “transitory” in nature, this wave of increases appears to sticking around for far to long.

Monopolies can raise prices and keep them high, because they don’t face enough competition charging lower prices and pulling consumers away.

For example, the cost of a gallon of low fat milk in Grand Turk in literally $8-$10 plus, unless on sale, and probably higher is a few of the sister islands.

What that means is, you would literally have to work almost 2 hrs to afford a gallon of milk, that’s insane. Eating healthy is a choice, but with these prices, it could be very difficult for some working families to choose.

As pointed out by a team of International Election Experts who visited the islands in 2021, the eligible voters population in TI is approximately 8581, with an estimated population of about 45K to 50K. Now ponder this for a moment.

This data paints a disturbing picture, and it leaves one to wonder whether or not these chain grocery stores are catering to the working class in terms of affordability and income levels, or are the prices being driven by the high-end targeted population.

With that being said, don’t expect the prices of groceries to get lower anytime soon or get back to pre-pandemic levels. This makes it unsustainable for a minimum wage worker and many marginalized families.

To be quite frank, I think it’s about time the government require big corporations or publicly traded companies to disclose more about their costs and pricing strategies. These big corporations have enough monopoly power in the islands to keep prices high.

Despite government efforts to reduce the import duties on the “ bread basket items”, what we lack in this country is price control and worker protection. At some point it will have to be addressed in order to slow the widening gap of class disparity.

In order for the government to truly protect the interest of the people, it must regulate businesses in a way that supports the ability of ordinary Turks Islanders to prosper. When it’s all said and done, it must start with price control and enforcement of any signs of price gouging.

Of course, the upcoming election will also hinge on some of these issues. When consumer sentiment and confidence are trending down or upwards, it will weight heavily on the minds of the people.

Henceforth, it’s high time we have a call to action on this initiative. Although it may be an inflated expectation, hopefully this government with take a pragmatic approach to this matter, while balancing it with the economic needs of the country.