The Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) has condemned the proposed minimum wage increase as an “insult” to workers, delivering a withering critique of the 2025 Budget for failing to address the pressing issues of poverty, economic empowerment, and the soaring cost of living. CTUSAB leaders said the Budget did nothing to alleviate the financial struggles faced by many Barbadians.
President Ryan Phillips did not mince words, highlighting that the proposed minimum wage rise—equivalent to a mere 17 cents per hour—falls significantly short of what is required to ensure a living wage for Barbadians.
“We welcome the move to adjust the minimum wage every two years, but let us be clear: $340 per week does not allow a Barbadian worker to live with dignity,” Phillips said during a press conference at the BUT headquarters on Thursday. “A 17-cent per hour increase is an insult to the working class. It does nothing to counteract the relentless rise in food prices, rent, utilities, and transportation. Many households, particularly single-parent families, are struggling to make ends meet, and the government has failed to provide real relief. Barbadians deserve a living wage, not token adjustments.”
CTUSAB had anticipated that the Budget would include substantive measures to alleviate the tax burden on workers and improve disposable income. However, according to Phillips, the proposals fell well short of expectations.
“We expected targeted initiatives to increase take-home pay, reduce inflationary pressures, and lower the cost of essential services,” he said. “Instead, there was no significant adjustment to VAT, no rollback of the water and sewage tax—despite many households not being connected to the sewage system—and no removal of the municipal solid waste tax, which discourages property development.”
Phillips also questioned the rationale behind the 20 per cent tax on salty snacks while simultaneously lowering VAT on high-sodium processed meats. “How does this align with the government’s efforts to improve public health?” he asked. “These contradictory policies raise serious concerns about the effectiveness of the measures being implemented.”
General Secretary of CTUSAB, Dennis DePeiza, was even more scathing in his criticism, calling the 17-cent wage increase “an outright insult” and “a failure of leadership.”
“We must recognise that people have to live,” DePeiza stated. “The middle class, often assumed to be comfortable, is burdened with excessive taxation. When 40 per cent of salaries are deducted for taxes, and workers are left struggling with mortgage payments, high utility bills, and transportation costs, how do we expect a productive and motivated workforce?”
DePeiza stressed that a minimum weekly wage of $400 should be the baseline.
“For Parliament to celebrate a 17-cent increase in wages while proclaiming economic growth is unconscionable. The government cannot expect a motivated workforce when workers are barely surviving.”
He further pointed out that the supposed economic growth touted by government officials does not align with the reality of struggling workers.
“The Budget presentation spoke of economic ‘bounty,’ yet the very people driving this economy forward are being left behind. If growth does not translate to higher wages and a lower tax burden for workers, then who is really benefiting?”
CTUSAB also insisted that the Budget failed to tackle the structural imbalances in taxation. The organisation argues that given the country’s reported four per cent GDP growth, improved foreign exchange reserves, and reduced national debt, there is room to ease the tax burden on citizens.
“The government should have used this opportunity to reduce the 17.5 per cent VAT, eliminate the two per cent tax on overseas credit card transactions, and revisit other punitive tax measures,” Phillips stated. “If we are serious about digital transformation and economic expansion, then discouraging credit card usage through taxation is counterproductive.
“This Budget does not reflect the realities faced by Barbadians. Workers expected meaningful relief, yet what they have received is a symbolic wage increase, continued high taxation, and a lack of decisive action on economic empowerment. The government must do better.”
Despite the criticism, CTUSAB acknowledged some positive steps in the Budget, including the extension of maternity leave from 12 to 14 weeks and the expansion of eligibility beyond three confinements. Additionally, the organisation welcomed the introduction of paternity leave, a long-standing demand from the labour movement.
“These policy adjustments align with efforts to encourage population growth and better support working families,” Phillips said. “We are pleased that the government has responded to our calls for reform in these areas.”
sheriabrathwaite@barbadostoday.bb
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