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News report: BCCEC -Future wage increases must be tied to productivity

  • BCCEC
  • 10 hours ago
  • 2 min read

Published by Youri Kemp, The Nassau Guardian, November 13, 2025

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) said yesterday that any future wage increases must be linked to productivity in the private sector.


Dr. Leo Rolle, executive director of the BCCEC, in a statement to Guardian Business, said that Minister for Labour and the Public Service Pia Glover-Rolle’s comments on future wage increases being linked to increases in productivity from workers are in line with the BCCEC’s position.


Glover-Rolle said last week Friday that business owners are generally willing to offer better pay and benefits if they see better performance and output from workers.


She said the government is partnering with the National Tripartite Council (NTC) to find the right balance between raising wages and improving productivity. To support that effort, it has recently launched the National Productivity Task Force, which will eventually become a National Productivity Council — an organization that will help drive productivity at a national level.


“Minister Glover-Rolle provided feedback on increased wages and the eventual establishment of a livable wage, both of which align with International Labour Organization (ILO) conventions,” Rolle said.


“Her comments merely highlighted that such measures inevitably impact the bottom line of businesses.


“The minister also noted that the world of work is evolving, with individuals increasingly seeking roles that offer flexibility, personal fulfillment, and benefits commensurate with their skills and qualifications. Her remarks on productivity referred to the recent establishment of a National Productivity Task Force, headed by former Chamber CEO Edison Sumner, on which the BCCEC has two representatives. The Taskforce aims to advance dialogue on measured productivity and wage increase frameworks to ensure that businesses can thrive while providing greater benefits to employees.


“This initiative aligns with the chamber’s long-standing position. The BCCEC has, for years, emphasized the importance of establishing a national productivity council and linking wage discussions to measurable productivity growth.


“Accordingly, the chamber reiterates the need to link wage increases to improvements in national productivity. Sustainable wage growth must be built on stronger productivity, driven by skills development, innovation, and investment in technology. Productivity gains provide the foundation for higher wages, greater competitiveness, and shared prosperity for Bahamian workers and businesses alike.”


Rolle also said: “Recent data underscores the urgency of this approach. Labor productivity growth in The Bahamas has been negative in five of the last six years, while Caribbean productivity relative to advanced economies has declined from approximately 50 percent in the early 1990s to about 38 percent in 2021, according to OECD and regional studies. This trend highlights the need for focused efforts to enhance efficiency and innovation across all sectors.


“International experience supports this view. OECD research shows that a 1 percent increase in productivity typically supports a 0.8–1 percent rise in real wages. Conversely, wage increases that outpace productivity can erode competitiveness and fuel inflation – challenges The Bahamas must manage carefully as it pursues sustainable economic growth.”




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