Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Bahamas (Ratification: 1976)

Articles 1 and 2 of the Convention. Scope of minimum wage fixing machinery. The Committee notes the Government’s statement that the statutory minimum wage rates in force apply to all workers without exception and that no ministerial order has so far been issued under section 3(3) of the Minimum Wages Act which empowers the Minister of Labour to exclude from the coverage of the Act certain classes of persons or occupations. The Government adds that the application of minimum wages will not be adjusted or amended in any way without prior consultations with employers’ and workers’ organizations in accordance with the Government’s commitments under the Bahamas’ Decent Work Country Programme.

In addition, the Committee understands that the national minimum wage, which came into effect in 2002, remains unchanged at US$150 per week, and notes that there have been calls for a significant increase of that rate in light of the rising cost of living.  The Committee recalls, in this respect, that under part III of the Minimum Wage-Fixing Machinery Recommendation, 1928 (No. 30), in determining minimum wage rates the wage-fixing body should in any case take account of the necessity of enabling the workers concerned to maintain a suitable standard of living. It accordingly requests the Government to provide some indication as to whether the current level of the national minimum wage may be regarded as sufficient to ensure a decent standard of living to workers and their families. It also requests the Government to indicate whether there is any intention to eventually provide for an institutional framework responsible for the periodic review of minimum wage rates.

Article 3, paragraph 2(1) and (2). Consultation with the social partners. Further to its previous comment on this point, the Committee notes that the Government has undertaken to review the existing legislation in respect of minimum wages and that it pursues its consultations to this end. The Government states, in this connection, that although no advisory committees have so far been set up under section 14(b) of the Minimum Wages Act, the TRIFOR committee has been assigned the responsibility to oversee any future amendments to the Minimum Wages Act. The Committee understands that the TRIFOR committee is a tripartite forum for social dialogue originally launched in 2000 and reactivated in 2007 which is currently in the process of reviewing the Employment Act, 2002. The Committee requests the Government to continue to provide information on all future developments regarding the revision of the minimum wage system, in particular the full consultation and direct participation of employers’ and workers’ organizations at all stages of the establishment, operation and modification of the minimum wage fixing machinery. It would also appreciate receiving additional information on the establishment, membership and mandate of the TRIFOR committee.

Article 5 and Part V of the report form. While noting the Government’s statement that there are currently no workers in the country who are remunerated at less than the statutory minimum wage rate, the Committee once again requests the Government to provide up to date information on the effect given to the Convention in practice including, for instance, statistical information on the evolution of minimum pay rates both in the public and the private sector as compared to the evolution of economic indicators such as the consumer price index in recent years; the approximate number of workers remunerated at the minimum pay rate, if possible broken down by sex and age; labour inspection results; extracts from official studies or reports on minimum wage policy, etc.

Finally, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body as regards the relevance of the Convention following the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Convention No. 26 is among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131) which contains certain improvements compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee considers that the ratification of Convention No. 131 is all the more advisable as the Bahamas has already a statutory minimum wage of general application (and not only minimum wages for those workers employed in exceptionally low-paid trades where no arrangements for collectively negotiated wages exist, as prescribed by Convention No. 26). The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.