THE Private Sector Commission (PSC) welcomes the recent announcement of a minimum wage increase to $35,000 monthly, but are calling for review and re- examination of the five-day work week, in order to ascertain its potential impact on the economy. PSC Vice Chairman, Clinton Urling told the media yesterday that a meeting between Labour Minister, Dr. Nanda Gopaul and the various private sector leaders was held on Monday last, when their concerns were raised.

Urling indicated that some companies’ workers are productively engaged for only five or six hours per day when their engagements are stretched over the six days; and he called on the government to stretch the 40-hour work-week over six days.

He disclosed that the private sector leaders also indicated to the Labour Minister that they would have preferred the minimum wage being increased by $1000 or $2000, than to have to deal with a 40-hour work-week stretched over five days.

Urling pointed out that the formula used to calculate the work-week was not feasible, particularly for entities in the hospitality and mining sectors, which basically have two non-productive days in the work week. He said the employees in those sectors would have to ask their employees to work on those days; and if they refuse, there would be no production on those days. But if they agree they would be paid overtime, which is an additional cost to the employer.

Urling pointed out that the private sector is burdened with costs; and when the situation is viewed holistically, the country can really be in a precarious situation as a result of this new arrangement. He explained that while the minimum wage has been increased, its value has been decreased through the high possibility that inflation would go up when companies decide the new arrangement imposes additional costs.

Urling informed the media that the private sector leaders impressed upon the minister the importance of doing an economic evaluation and survey of the private sector. He said the PSC also intends to conduct an internal survey to assess the economic impact of the five-day work week on businesses.

Nevertheless, he noted, the PSC is committed to implementing the new arrangement, which comes into effect on July 1, and the PSC is even engaging with the ministry to send some of their trainers to inform the private sector companies on what needs to be done to meet the new requirements.