Legal minimum wage review to be announced in June

Hon Doro Muala…Minister for Commerce
THE outcome of the review of the legal minimum wage rate which is still currently at $3.50 and $4 per hour is expected to be announced around June this year.
Minister of Commerce, Labour and Immigration, Elijah Doro Muala informed parliament, Monday when asked by Leader of the Independent Group Dr Derek Sikua on the progress in developing and introducing a National Wage Policy.
Mr Doro Muala said, currently the labour advisory board through the office of the Commissioner of Labour has been working in collaboration with the International Labour Organization (ILO) based in Bangkok on this.
“Recently, a training was conducted by wage specialists for members of the advisory body, however, the board has decided to prioritize the review of the legal minimum wage rate which is still currently at $3.50 and $4.00 per hour.
“The outcome of the labour minimum wage rate is expected to be announced around June this year,” he said.
Mr Doro Muala said the next task is the process of formulating the national wage policy, and ILO wage specialist will work on the labour advisory board to provide information and clear direction in the process of drafting.
“The Ministry of Commerce, Labour and Immigration (MCLI) through the office of the Commissioner of Labour and the Minister have already established the Labour Advisory Board in accordance to labour advisory board through legal notice 91, and members which was being gazetted early in 2016.
“Labour advisory board comprises of government employees and workers as union representative. A total of 12 members in the board with three representative from each body.
“The labour advisory body is a legislative body established to make justified and concrete decisions and recommendation to the Minister on the national wage policy.”
The Commerce minister said the outcome of this task is expected to be submitted to the Labour Advisory board for endorsement by September or October this year.
When asked by Aoke-Langalanga MP Mathew Wale on the consideration of advisory board on the minimum wage on the broader economy, Mr Doro Muala said currently the advisory board based it on food items.
“… of course that will be related to global issues what is happening now and later on look on the broader economy when policy comes in,” he said.
MP for Maringe-Kokota, Culwick Togamana however, added on in his supplementary question that if it is based on inflation and food prices will probably be not a wholesome review.
“… we have to be careful of course income levels are important on the productivity of economy. I am wondering if data is available to form part of this consideration.
“Has there been consideration of maximum number of hours in the national wage policy for workers to work. If they have to work beyond that hours, in terms of salary, what is the consideration on this?
“Normal working hours is nine hours, and any other companies are working less than that. Any other companies working above normal hours then the extra overtime rate applies,” Minister Doro Muala explains in his answer.
Leader of Independent and MP for North East Guadalcanal in his supplementary question inquired on who represent employers in the labour advisory board.
Doro Muala said names have been nominated by the Solomon Islands Chamber of Commerce, the Forestry Sector Association and the Manufacturers.
Dr Sikua then adds, “If the minister can confirm if GPPOL is represented in the labour advisory board, if not what rate they follow to pay their workers, which is very low at the moment?
“GPPOL fall under Chamber of Commerce, currently the legal minimum wage for plantation workers is $3.50 per hour,” Minister Doro Muala replied.