Donald E. deCastro. Photo: VINO

In the United States the Federal Minimum wage for example is $7.25 per hour except for tipped employees whose minimum wage is $2.13 per hour, while in the State of Washington (not Washington, DC) the minimum wage is $9.04 which is $1.79 more than the Federal minimum and in the UK it is 6.08 Pounds for those 21 and over. Some jurisdictions allow employers to count tips given to their workers as credit towards the minimum wage level.

The intention of the minimum wage was to help in the improvement of the worker, and especially those workers whose emoluments are not covered by collective bargaining. It has therefore benefited many employees who are not members of a recognized trade union.

However, I personally believe that the better way to obtain fair wages and other benefits is through collective bargaining by Unions on behalf of its members. This is because the minimum wage is determined by Government, and usually represents the lowest wage rate to be paid for unskilled labour. It may be calculated based on an abstract idea of value of work and the cost of living in a country. On the other hand, a company should pay workers on a cost-plus basis that is at a rate above the share of cost of production. So, although no employer should pay wages below the minimum wage, a profitable company should pay wages above the cost of living. How much should be determined by collective bargaining.

I want to make if perfectly clear that I support the minimum wage. However, it is that very strong possibility that too high a minimum wage can lead to unemployment, downsizing of businesses and to the closing of many small businesses which are the backbone of any community. Try to understand that while we may want to increase the minimum wage here in the Virgin Islands in order to make the twenty or thirty big businesses with one or two thousand employees pay their employees a better wage, we have several hundred small businesses, many with only 1-3 employees, with several thousand employees that will not be able to meet a higher minimum wage.

The foregoing shows the need for not only a minimum wage rate, but also there is a need for collective bargaining between representatives of workers and employers. Such a scenario would ensure that a minimum wage is in effect, but that fair wages can be agreed to satisfy the legitimate entitlements of workers and the moral obligations of employers.

If politicians and the Ministry of Labour along with the Department of Labour would put as much attention and effort into the needs and requirement of poor people and middle income people as they do for the Hotel & Commerce Association, the Bar Association and the Taxi Association this country would be much better off.  Those of us that pay attention are aware that these are the three associations to which government pays most attention. These associations or unions are made up of all self-employed people that are looking out for their best interest. Unfortunately it seems that employees in this territory, neither belongers nor expats, have yet come to realize the importance of unions, and until they do they will continue to suffer.

After many years of work, a number of us with the help of the President of the Antigua Workers Union, were able to establish the Virgin Islands Workers Union on February 8, 2004 and registered at the Registrar’s Office of the High Court of Justice on April 21, 2004. I listen to talk shows on radio and TV, and listen to employees complain about various problems at work, and I listen to the hosts make all kinds of comments. One of the talk show hosts attended one union meeting and offered his services, a few weeks later when he was supposed to join the union he withdrew his offer to assist. Yet you never hear any of these people that are supposed to be informing and educating the listening audience, ever mention on their show that there is a Labour Union here in the Virgin Islands. A few Saturday nights ago, I heard one host saying that employees should get together and form a union, and I know that he knows about the Virgin Islands Workers Union.

At this time I would like to emphasize the best way for employees to resolve all disputes with employers is through collective bargaining or arbitration. Employees should not depend on Labour Department or Government on a whole to address their concerns, except close to an election when votes are required for re-election.

Employees, especially expats are often intimidated by employers. Employees here on work permits have to realize that once they are admitted by immigration to work here legally they are entitled to all rights under the Constitution, the Laws of the Virgin Islands and the Labour Code. Many people in this Territory believe that the Labour Department investigate and make decisions, not necessarily on the facts presented, but on who the employer or who the employee is. Until we find people who are willing to perform their duties professionally this kind of behavior will not improve. As the Minister of Education has said, when systems are put in place they should be allowed to work and not interfered with by ministers. However, this is difficult at times as so many persons are afraid of losing their jobs, so some try to satisfy the ministers rather than uphold the law. And in many instances, appealing to the minister is like drawing water from a well with a basket.

Let me try to clarify the difference between the Old Union and the New Union. Many people today look back at the early days when Unions were the life savior of many, not only in the United States of America but also in the Caribbean. However, in the Caribbean, like in the U.S., the leaders became greedy, and some got involved in politics and gradually the Union and its members began to hurt. Today, the New Union understands that things have changed drastically, and it is important that Labour, Management and Government work together for the benefit of all concerned. Labour needs Management as well as Management needs Labour. With a satisfied and contented Labour force, management can see their profits improve, and in return labour expect more and better benefits and working conditions. All of this is possible to accomplish when Labour and Management are able and willing to work together.

Three of the areas in which cooperation is required are;

(a) A proper employee’s handbook,

(b) professional training, and

(c) the possibility of promotion based on performance.

The union also understands that they must help their members understand the importance of work ethics, and that when they have a complaint, they cannot be wrong and expect to be given the full support of the union. And if and when there is a conflict that Labour and Management cannot resolve, then the assistance of the Ministry is required. Today’s unions also understand that the very last action to be contemplated is work stoppage, as there are usually no winners when such action is taken.

What amazes me is Virgin Islanders feel they have no need for Unions yet they continue to complain and suffer just as the expats do. Expats feel that if they join the union they will lose their work permits. Let us be realistic. If an employer cancelled your work permit because of your membership in a union is that illegal under the Laws of the Virgin Islands? Yes. Should the employer get another work permit for another employee? No. Would he get it?  At present, it seems that it depends on the employer. The situation in such a case is that the employee would have a union providing representation on meetings with the employer, and/or the Ministry. This representation would, of course, make a difference in the likely results.

So I get back to the fact that collective bargaining between Management and Labour through a Trade Union is the better alternative to raising the minimum wage to an amount that can cause hardship for those that can least afford it.

For more information on the Virgin Islands Workers Union call 494 4629