Minimum wage earners should not expect an increase in their earnings this month as the Government has postponed the announcement of a scheduled increase until it concludes talks with employers.

Minister of Labour and Social Security, Pearnel Charles, says the Government is concerned that an increase at this time could result in businesses sending home more employees, especially security guards as the effects of the global economic crunch deepens.

"The 17 and a half per cent increase for 2008 saw a number of workers losing their jobs," Charles said yesterday.

"The Cabinet is therefore examining these complaints in order to avoid any real problem at the workplace," he added.

State of affairs

The labour minister could not give figures to support his claim, but said the state of affairs in many businesses could force them to send home more employees should another increase be put into effect.

He said already the jobs of security guards are being threatened because more people are investing in electronic security systems.

However, Charles has advised that in the meantime, employers hold discussions with their workers and make salary adjustments where possible until the Government agrees on a new minimum wage.

But president and island super-visor of the National Workers Union, Vincent Morrison, is against the postponement of announcing a new minimum wage.

He is also accusing the Govern-ment of using the economic crisis as an excuse to depart from a previous agreement to increase the minimum wage annually.

"What the Government wants to do is set the minimum wage every two years as opposed to an annual adjustment," Morrison told The Gleaner.

"You can't have inflation moving in one direction and wages moving in another direction," Morrison chided, noting that an increase in the minimum wage is needed to maintain people's purchasing power.

"I am surprised and concerned that the minister is taking this approach," he said.

He is demanding that Charles meets with trade unions to discuss the issue.

However, the president of the Jamaica Employers' Federation, Wayne Chen, is adamant that many companies cannot afford to increase wages at this time.

"Many employers, at this time, are under pressure and you would notice that many companies have already taken the pre-emptive step of cutting back on staff costs because the general feeling is that 2009 is going to be a tough year," he said.

A total of 2,259 jobs were cut locally between October and December last year following the Wall Street crash in the United States in September. In addition to those cuts, bauxite producer Alpart announced a further 250 job cuts, a week and a half ago, as aluminium prices continue to plunge on the world market.

Chen says if employers are forced to pay any further increase in wages, it could prompt more rounds of job cuts in many companies.