UTech, Ja Journal of Arts Science and Technology, Vol 13, No. 3 October 25, 2021

The Journal of Arts Science & Technology (JAST) Volume 13, Number 3, is now published on the University’s website and in the EBSCOhost Caribbean Search Database at:

The University has an institutional subscription to EBSCOhost Discovery Services. Staff and students have access through CALCAT–Online Catalogue on the Calvin McKain’s Library webpage at http://bit.ly/2zXktPR.  Your UTech, Jamaica log-in and password are required for access off campus.   

The Journal can be accessed on the University’s website using the following link: http://www.utech.edu.jm/JAST/publications/journal-of-arts-science-and-technology-jast-vol-13-no-3-september-2021/view

A PUBLICATION OF THE SCHOOL OF GRADUATE STUDIES, RESEARCH & ENTREPRENEURSHIP

UTech, Jamaica Study Recommends 19.28% Increase in Minimum Wage to Reduce the Percentage of Wages Spent on Food February 11, 2021

File Photo: Professor Fitzroy Henry, Professor of Public Health Nutrition, College of Health Sciences

A recently concluded study titled, “Towards a Liveable Minimum Wage in Jamaica” led by Professor Fitzroy Henry, Professor of Public Health Nutrition at the University of Technology, Jamaica, has provided valuable impetus for informing public policy and current deliberations by the National Minimum Wage Advisory Commission concerning a liveable minimum wage to protect the most vulnerable in society.

Looking at the lowest possible cost to obtain a balanced diet and the contribution of local and imported food to that diet in various parishes, Professor Henry’s study determined that the Jamaican minimum wage should be increased from J$7,000 to J$8,350 per week.  Professor Henry disclosed the findings of the study which was funded by the UTech, Jamaica Research Development Fund (RDF) at a virtual presentation held on Thursday, January 28, 2021.

To assess vulnerability, the analysis identified what proportion of the minimum wage is required to obtain a low-cost nutritionally balanced diet. In this regard, the study avoided the traditional practice of purposefully manipulating the Consumer Price Index (CPI) which often determines the minimum wage. Unlike other economics-based approaches to establish minimum wage, this study uniquely utilized a more objective biological benchmark of consuming 2400 calories as a food intake marker.

Elaborating on the study’s methodology, Professor Henry informed that food prices were collected from both high and low income communities in each of the 14 parishes. The results showed that the average cost of the food basket in low and high-income communities was $475.96 and $478.02 respectively. The cost of the various baskets was compared with the current minimum wage in Jamaica. The emphasis was placed on consuming healthy foods by the low-income groups to avoid the consequences of obesity and chronic diseases. The main finding was that the average cheapest standard diet can be obtained in Jamaica for about J$477 for an individual.

Professor Henry explained that “this means that in June 2020 (during which time the collection of data across parishes was conducted), 48% of the current minimum wage would be required to purchase the food basket for one person in both low and high-income areas.   Noting that this is unacceptably high, Professor Henry noted that to meet a lower threshold of 40%, an increase in the minimum wage to J$8,350 per week was recommended.  The study therefore proposes a 19.28% increase in minimum wage to reduce the percentage of wages spent on food.

Professor Henry noted that the findings paint a grim picture for households supported by minimum wage earners, who he pointed out, supplement their income through social intervention programmes, such as those spearheaded by the Ministry of Labour and Social Security, and remittances from overseas. The security of these households, he cautioned, has been further threatened by increasing food prices as well as the impact of the COVID-19 crisis, which has resulted in a significant decrease in remittances.  Professor Henry also underscored the need for more educational programmes to inform consumers about the combinations of foods which could comprise a tasty, culturally appropriate nutritious diet at low cost.

Looking further at minimum wage earnings across the Caribbean region, Professor Henry shared data showing that it would take a significant increase of 59%, or $11,130.00 per week to bring the Jamaican minimum wage on par with neighbors such as St. Kitts and Barbados.

Policy Implications

While highlighting the dire need to reduce poverty and to protect the health and well-being of vulnerable minimum wage earners, the Public Health Nutrition expert however, acknowledged that an increase in the minimum wage could trigger economic implications such as inflation and the possibility of employers passing the increase in wages on to the consumer. He, however, emphasized the benefits, including an increase in consumer spending, benefits to employers through decrease in employee turnover, poverty reduction, and improvements in health and the cost of healthcare through consumption of more balanced diets.

Dr. Paul Ivey, Associate Vice President, Graduate Studies, Research and Entrepreneurship, UTech, Jamaica who moderated the presentation, congratulated Professor Henry and his team for advancing one of the mandates of the University of Technology, Jamaica to produce relevant and enlightened research for the benefit of the wider Jamaican society. Dr. Ivey noted that “we believe this piece of research can aid evidence-based policy making, as it relates to the National Minimum Wage Advisory Commission setting a livable minimum wage in Jamaica.”  

Dr. Haldane Johnson, Acting Deputy President, who gave closing remarks, also offered commendation to Professor Henry and his team, as well as to the School of Graduate Studies, Research and Entrepreneurship for facilitating “thought-provoking, impactful research”. Dr. Johnson noted that the study has identified other promising areas for research, and urged that further promotion of the findings be shared as part of the push to positively influence national policy, as well as to be utilized as a tool in teaching and learning.

A spirited discussion followed, with participants, including from UTech, Jamaica, UWI, the Jamaica Household Workers Union and members of the National Minimum Wage Advisory Commission.

Corporate Communications Unit

Advancement Division

University of Technology, Jamaica

February 2, 2021