The Employers’ Consultative Association is welcoming certain aspects of the Budget, however, it believes an important topic was left unacknowledged.
In a statement, the Association says it had hoped to see a proposal outlining a clear timeline for reviewing and updating key labour laws.
It said it had hoped to see a recognition of the need to maintain labour laws that are current, fit for purpose and relevant to the needs of today’s workplace, and a subsequent proposal outlining a clear timeline for reviewing and updating key labour laws, as well as resource allocation and the capacity development of institutions vital to our industrial relations system.
“We hope that the Minister of Labour will speak to these issues and clarify the way forward in his contribution to the Budget debate,” the ECA said.
As for crime, the ECA says it concerned that there was little to reassure citizens on this issue.
“We are aware of the sensitive nature of this topic, particularly in the context of revealing initiatives and strategies in a budget presentation.
However, given the escalating crime rates affecting both businesses and citizens, and the fervent national outcry for effective solutions in respect of prevention and reduction strategies and detection rates, we are concerned that there was little to reassure citizens on this issue,” the ECA said in a media release.
“In this regard, we urge those tasked with maintaining the safety and security of our citizens to ensure that the citizens receive value for money and that they are responsible and accountable with the scarce resources being allocated.”
The ECA said it was committed to collaborating on the issue as “we seek to enhance the capacity and efficiency of protective services, address the root causes of crime at a community level, and restore public confidence in our enforcement and protective agencies.”
The ECA said it was encouraged by the “apparent developmental approach” to this year’s budget presentation.
With regard to VAT bonds and refunds, the ECA said the allocation of interest-bearing VAT bonds and the commitment to pay SMEs (small and medium enterprises) in cash by December 31 represents a “significant step towards addressing this long-outstanding issue and alleviating ongoing liquidity challenges faced by many businesses, particularly for small and medium enterprises.”
On the tax amnesty, it said the introduction of a tax and NIS (National Insurance System) amnesty is a welcomed initiative, pending the imminent operationalisation of the T&T Revenue Authority (TTRA).
“Given some of the residual impacts of the Covid-19 pandemic and other local and international developments attendant to the cost of doing business, this amnesty can assist in mitigating the cost of resolving any compliance issues. In this regard, the ECA strongly encourages employers to take advantage of this window to ensure that any outstanding statutory obligations can be settled,” it said.
On the minimum wage increase for public sector employees, the ECA said it was “heartened by the Minister’s acknowledgement of the real and potential impacts on businesses, particularly MSMEs, as well on the wider society of further increases at this time in the national minimum wage. This is consistent with the ECA’s position that minimum wage setting must always be a balanced approach that considers the broader implications, economic and otherwise, for both employers and employees.”
It added, “Notwithstanding, the decision to increase minimum wages of government employees to $22.50 per hour is commendable in a continued attempt to balance the needs of some lower wage earners against the economic realities already being felt and national realities before us.”
It said the intention to commence negotiations for public sector wages (covering the period from January 2020 to 2022) is a positive development, and “we encourage both sides to ensure that a good faith approach is always adopted for these negotiations. Moreover, a concerted effort must be made to improve the timeliness of public sector negotiations to allow the State to consider all relevant factors in context, and to ensure that where negotiated and agreed, employees can enjoy wage increases when they are due.”
The ECA said it supported the commitment to “clarifying any ambiguities and making agriculture a fully tax-free industry and believe this will encourage growth in this vital sector, particularly as we seek to continue addressing long-term food security, the cost of food imports and ongoing diversification efforts”.
On education, it said allocating resources to education is always a wise investment as it builds human capital and is a critical driver for reducing poverty and inequality.
“However, we are deeply concerned that the fiscal measures highlight a more troubling underlying issue—there remains a significant deficit in numeracy and literacy skills within our population. This is an alarming indicator that requires further insights and data transparency, allowing all stakeholders to better understand the depth of the problem and collaborate on potential solutions.
“In an increasingly technological world, such skill deficits put us at risk of falling behind in the global race for development. Education must not only prepare individuals for the transition into the workforce but also adapt quickly to the ongoing transformations in the world of work. Failure to address these challenges can severely limit our future economic potential,” it stated.
“Notwithstanding, we expect that much more detail on specific allocations, programmes and initiatives will be made available in the coming weeks as the budget debate ensues and supporting documents are released. In this regard, we will continue to examine these developments and elaborate further as more information is shared.”