By Highlands Smart Farmers,Post-Courier
Copyright postcourier
THE increase in the minimum wage rate is great news for the people of Papua New Guinea however, the high cost of production and staggered devaluation of kina remains a concern.
This matter was raised by Highlands Smart Farmers Association (HSFA) President, Wilson Thompson. He said HSFA’s recommendations and suggestions to the Minimum Wage Board (MWB) on the increase of minimum wage particularly in the agriculture rate was acknowledged, which they highly appreciated.
“We note that MWB has deliberated and made its determination and acknowledge that most of our suggestions and recommendations have been taken on board starting with K500 per fortnight. Further, they have given special consideration to the Agriculture Sector,” Mr Wilson iterated.
However, the high cost of production, inflation, and low kina purchasing power accumulated by the gradual depreciation of kina remain the core concerns that need to be addressed in order for the gazetted increase in minimum wage rate to be effective.
“We are also mindful of the staggered depreciation of the kina and international conflicts that would increase the costs of imported goods, although our exports would benefit. We import more food and basic items, hence, instead of increasing wages, we should be increasing the purchasing power by cutting costs and providing other incentives and benefits to sustain the family.
He said HSFA is prepared to work with Department of Treasury, Internal Revenue Commission (IRC) and PNG Customs to build and encourage the local industries.
“To build up the economy, we must move away from increasing nominal wages but look at increasing the purchasing power of the wages so that a person can buy more,” he urged.
On June 2, this year, HSFA made a verbal submission (a presentation) to the Minimum Wage Board on the arguing on concerns about prices and inflation and affordability, whether tying wages to production and productivity
HSFA also argued that rural business or agriculture industries provide transport to and from work or workers are accommodated within the workplace and also provide housing, education and health services, if added into pay, would be well over and above Minimum wages.
HSFA made a 10-point recommendation that stressed on creating more employment due to youth bulge and increasing unemployment.
