News About Minimum Wage…Series of Leaks From Anonymous Sources

  • 2016-04-21
  • 12

There has been conflicting news about raising minimum wage, which generated a lot of public interest. So far, there has been no significant change to meet the expectations of a large segment of workers of exceeding the threshold of 190 dinars after some sites published almost confirmed news to the effect that an increase had been approved and that what remained was only setting a date to make the announcement

The confusion around this issue was not confined to leaks from anonymous sources, which threatened the credibility of media outlets. Also, it was not confined to what the site in the link above reported and its confirmation that the increase would be announced on 1 May 2016 to coincide with Labor Day. It exceeded this to conflicting news about the amount of the proposed increase. While a local newspaper reported that trade unions are pushing for raising minimum wage from 190 dinars to 300 dinars, other news sites quoted leaks from anonymous sources as saying that the increase would most probably be between 30-50 dinars only. Meanwhile, some sites reported that the expected increase would be 60 dinars, thus increasing minimum wage to 250 dinars.

While information about raising minimum wage turned into almost a certainty waiting for implementation, a site quoted "sources" from inside the Ministry of Labor about the existence of pressures and inclinations that postponed adopting a decision on raising minimum wage indefinitely. The sources, according to the site, attributed this to several reasons, including the need for further study of the proposal and the entry of foreign investments into the Jordanian market, which requires reducing the cost of the workforce.  

The conflicting information given to the public was not only monitored between media outlets, but also within the same outlet. On 16 April, a news site reported that "raising minimum wage will be implemented on Labor Day." According to the site, Labor Minister Dr. Nidal Qatameen was planning to hold a major ceremony on 1 May 2016, in cooperation with the General Federation of Jordanian Trade Unions (GFJTU) on Labor Day, which would witness the announcement of a big surprise; namely, increasing the monthly minimum wage for all workers in the Kingdom in the public and private sectors to make it 230-250 dinars instead of 190 dinars. However, on the next day, the same site raised the following question under a banner headline: "Has Ministry of Labor Gone Back on Raising Minimum Wage?" It reported that, according to sources at the Ministry of Labor, there are pressures to postpone making a decision on raising minimum wage.

The conflicting information, which marked the intensive coverage of local printed and electronic media of raising minimum wage, forced Mohammed Khatib, spokesman and media adviser to the labor minister, to break his silence and deny news circulated by some outlets about the exact increase in wages or setting a specific date for approving it.  He denied that the minister had approved an increase of 60 dinars in wages, as some media outlets quoted him as saying.

The Jordanian Media Credibility Monitor (AKEED) spoke to Khatib and asked him about the reasons for this conflicting information. He said: "No journalist aims at publishing erroneous or misleading information, but when it comes to raising minimum wage, many parties are involved in this issue, each of which has objectives that it wants to serve. The conflicting statements issued by the different parties involved in the work of the technical committee and published in the media make people feel that there is variation in positions."

Asked whether the ministry is planning to approve an increase in minimum wage, Khatib said that "the technical committee is continuing its meetings to discuss this issue. It has recommended increasing minimum wage. Despite all realities and indicators that make such a decision difficult, painful, or costly, the ministry is inclined to approve an increase."

On the reasons that make approving the increase difficult and costly, Khatib said: "Most people do not know the meaning of minimum wage and which segment is targeted by this change. A new employee who has worked for one day only, does not have a degree, does not read or write, and does not have experience is the one referred to by minimum wage. As soon as the wage of this segment increases, other workers who receive salaries that are higher than minimum wage and who have qualifications and years of experience will demand an increase in wages as well. This is because a worker who has a training certificate and five years of experience, for example, and who gets 250 dinars will not accept to be equal to a fellow worker who has only one day of experience and who does not have any certificate or experience."

On the amount of the increase that is expected to be approved, Khatib said that his "personal estimates indicate that the increase ranges between 30-50 dinars. However, the commercial sector could see a higher increase." He hastened to add that this is not final and that the technical committee has to finish its meetings, submit recommendations to the minister, and request a meeting for the trilateral committee that includes the GFJTU, unions, and the ministry. Then, there will be a discussion of the comprehensive study prepared by the committee and the increase will be approved in light of what is in it."

Khatib also underlined an important issue, which is that the minister had asked the members of the technical committee to be practical and precise in determining the percentage for each category that is expected to be included in changes to minimum wage. He explained that the percentage would be set for workers in the industrial, agricultural, shipping, and other sectors. The increase will be fixed in light of this percentage for labor categories after studying the impact of the increase on each segment.