Wage Slavery as a Caribbean Reality: Finding the Path to a Better Tomorrow – Part I

 

Editor’s note: This is the first of a two-part article. Part I which is published below will establish the historical context of wage slavery in the Caribbean and Part II which will appear next Sunday, December 15 will offer solutions for combatting this ugly reality.

The Caribbean’s modern history (1494 to the present) is one that may be described as a history of external domination, exploitation, and wealth extraction.  When Christopher Columbus arrived in the Caribbean in 1494, he was fulfilling the expansionist intent of the Spanish, at the time ruled by Ferdinand and Isabella, to amass more wealth for Spain by acquiring new territory.  Spain’s intent was no different from that of the English, French, and Portuguese. As their economic model took shape, they engaged each other in self-serving wars while turning to the African continent as a source of free labour supply, after the local peoples they captured died under the weight of forced labour.

The trafficking in human beings, known as the Atlantic Slave Trade, ushered in the most systematic and inhumane form of forced labour which persisted in the Caribbean for three centuries.  Thus, the history of the Caribbean’s labour industry is one etched in slave labour and low wages for the frontline worker.  The human beings who were forcibly removed from Africa were treated as chattel; disposable, even if grudgingly regarded as being of some value.  No wage or free labour was the order of the day.

The trafficking in human beings, known as the Atlantic Slave Trade, ushered in the most systematic and inhumane form of forced labour which persisted in the Caribbean for three centuries.  Thus, the history of the Caribbean’s labour industry is one etched in slave labour and low wages for the frontline worker.  The human beings who were forcibly removed from Africa were treated as chattel; disposable, even if grudgingly regarded as being of some value.  No wage or free labour was the order of the day.

By the time the slave trade (aka legalized human trafficking) was abolished in 1807, and slavery (forced free labour) in 1834, the economic foundations of Caribbean society were embedded in a model which was defined by its insatiable appetite for free or near free labour. Thus, slaves were required to serve four years under a transitional arrangement to give the wealth-extracting planters time to adjust to the loss of free labour. 

But four additional years of near free, cheap labour was not enough to enable the planters to recover from the crisis of having to give up centuries of free labour!! The British Government had to “bail them out”.  To do so, the government took out a loan. These funds were distributed to the plantation owners as compensation for their losses!! The final instalment on this loan was paid in 2015!!! (Yes, 2015.)

But four additional years of near free, cheap labour was not enough to enable the planters to recover from the crisis of having to give up centuries of free labour!! The British Government had to “bail them out”.  To do so, the government took out a loan from the Bank of England for twenty million pounds in 1833. These funds were distributed to the plantation owners as compensation for their losses!! The final instalment on this loan was paid in 2015!!! (Yes, 2015.)

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Birth of a Capitalist Economic Model

The foregoing business and governmental decisions of the dominant planter class and the British Government gave birth to the first capitalist economic model in the Western Hemisphere. This economic model may be described as “Oppressive Capitalism”.  This economic model was built on the trifecta of:

• Low or no wages to the frontline workers who did the heavy lifting so that the capitalists make a profit
• Denial of humane and uplifting treatment of frontline workers, thus they received, and continue to receive, limited support for their wellbeing but are expected to serve the “master’s / capitalist’s” interests
• Demands for, and in some instances, receipt of government bailout whenever businesses do not flourish as expected, which bailouts are borne by the said workers, though the funds are upfronted by the government.

The foregoing business and governmental decisions of the dominant planter class and the British Government gave birth to the first capitalist economic model in the Western Hemisphere. This economic model may be described as “Oppressive Capitalism”. 

I submit that all three practices continue to this day.  Chattel slavery has been replaced by wage slavery, as Mary Turner and her colleagues have shown in Turner’s 1995 edited book, Chattel Slavery to Wage Slavery. Wage earners are treated as replaceable and despite the efforts of various Caribbean political leaders, scholars, and activists to change the paradigm from workers being seen as disposable tools to being co-owners, wage earners continue to be seen, by many businesses as tools for profits. Businesses which invest in Caribbean countries continue to demand, and in some cases receive, massive tax and import duty write offs, concessions, and waivers. And despite recent, one off moves to give workers and citizens cash advances, the typical response of Caribbean governments to demands by workers for better pay, is to argue that such moves will hurt the economy.

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An examination of the hospitality (tourism) sector

Protests have swept across the tourism sector in Jamaica during October and November 2024, ahead of the peak Winter season. Workers in the hotel industry are disgruntled with low wages, poor working conditions and in some instances the disrespect meted out by management, as is reported by employees. They insist that they are overworked and underpaid.  The workers also highlighted that they are employed on serial short-term contracts, despite working for several years – in many cases – and these contracts give no security of tenure thus they cannot conduct business to secure their future such as getting mortgages.

Employees from the following properties took industrial action:

1. Royalton Negril
2. Secrets
3. Breathless
4. Iberostar
5. Excellence Oyster Bay
6. Jewel Paradise Cove
7. Bahia Principe
8. Round Hill Hotel

In a press release issued on Friday, November 15, the Jamaica Hotel and Tourist Association (JHTA) acknowledged the recent demonstrations, blaming a mix of “external shocks” that continue to drive down both room rates and hotel occupancy. According to the JHTA, the deepening challenge of unavailability of adequate air seats to Jamaica to meet the fast-growing tourism sector has exacerbated the problem. This has had an impact on tourist arrivals and occupancy, which consequently affected staffing schedules and aspects of compensation for some workers negatively. The Association also indicated that the “external shocks” include negative travel advisories from the United States of America, Canada and the United Kingdom.

Jamaica’s tourism sector is the country’s largest source of foreign exchange. It employs approximately 175,000 Jamaicans directly, and another 354,000 indirectly. The industry is described as resilient and is credited as one of the main drivers of the country’s long-term economic development.  The tourism sector is a major contributor to the GDP and employment and has been among the country’s fastest-growing industries for several decades. It is said to power 15 per cent of construction, 10 per cent of banking and finance, 20 per cent of manufacturing and 21 per cent of utilities, agriculture, and fisheries. The tourism sector has grown by 36 per cent over the past 30 years. (Waller, 2022)

The ability of the tourism industry to generate new employment opportunities is touted loudly. Though unemployment figures dip on account of jobs added to the tourism sector, the unfortunate reality is that these vocations are primarily among the low-skilled group. Housekeeping and waiter services are among these. Most workers in the industry are therefore paid low wages and are unable to enjoy a good quality of life. The same is true for call centres. It is common for such persons to be paid at low rates given that the services that they offer, though very vital to the sector, are not technical. Rising inflation and the consequent high cost of living have taken a toll on a wide cross section of persons with the lowest earning segment bearing the brunt of the onslaught.

Most workers in the industry are therefore paid low wages and are unable to enjoy a good quality of life. The same is true for call centres. It is common for such persons to be paid at low rates given that the services that they offer, though very vital to the sector, are not technical.

In early 2023, the hotel sector reeled from a shortage of workers. The employees, some of whom were hired on short-term contracts, found it challenging to subsist on the minimum wage.

A recent survey conducted by the JHTA, the findings of which our research corroborated, found that the average frontline hotel worker in Jamaica earns between JMD $18,000 (or USD $112) per week and JMD $22,000 (USD $137) per week.  Most workers are paid gratuity ranging from JMD $4,000 (USD $25) to JMD $8,000 (USD $50) per week. These figures translate to roughly USD $7,124 (at the lower end), to USD $9,724 per annum at the higher end.

From Sugar Plantations to Sand Plantations?

The tourism and hospitality industry bears some resemblance to old sugar plantations which were the backbone of Jamaica’s economy during the colonial era. The plantations were large estates that produced sugar, rum, and molasses for export, relying heavily on enslaved labour until emancipation in 1838. These estates were key to the island’s wealth during that period but also a source of significant social and economic divisions.

Today, tourism has become a cornerstone of Jamaica’s economy. With its beautiful beaches, vibrant culture, and rich history, the island attracts millions of visitors annually. Tourism provides jobs, stimulates local businesses, and promotes cultural exchange, making it a vital part of the modern economy. Unlike the sugar plantations, tourism (the sand plantations) allows for more owner-worker dialogue, but nonetheless, there is much room for improvement if there is to be greater equity in the distribution of the wealth earned.

Unlike the sugar plantations, tourism (the sand plantations) allows for more owner-worker dialogue, but nonetheless, there is much room for improvement if there is to be greater equity in the distribution of the wealth earned.

Speaking at an event in Portland, Prime Minister of Jamaica, Dr Andrew Holness asserted that “Tourism is growing and expanding and adjusting. The workers, they are justified in also seeking their own household and their own remuneration and their benefits to grow in proportion with the growth and development of the industry.  This Administration respects the workers, we hear their plight, we understand their issues.”  The Prime Minister said Tourism Minister Edmund Bartlett has been tasked “to bring the sector together to have real dialogue about how we are going to ensure that our workers in the tourism industry, that they are happy.”

Selected Comparisons of Wages of Workers in the Tourism Industry across the Caribbean

As of August 2024, the minimum rates of pay per annum for hotel workers in Barbados are:

• Room attendants in luxury establishments: B$21,449.48 (USD 10,626.20) 
• General workers in A-class establishments: B$17,680 (USD8,758.88)
• Bellmen in B-class establishments: B$17,680  (USD8,758.88) 
• Receptionists in A-class establishments: B$20,775.56 (USD10,292.36) 
• Waiters and waitresses in luxury establishments: B$23,261.16 (USD11,523.72) 
• Storeroom attendants in A-class establishments: B$19,197.88 (USD9,510.80)
• General cooks in B-class establishments: B$17,680 (USD8,758.88) 

The wages of hotel workers in Trinidad & Tobago per annum show:

• Front desk agent: TTD 61,000–65,000 (USD8,993.69 – 9,583.44)
• Sub chef: TTD 80,000–88,000 (USD11,795.01 – 12,974.51)
• Laundry attendant: TTD 50,000–54,000 (USD7,371.88 – 7,961.63)

A comparison among the rates paid across the three countries, Jamaica, Barbados, and Trinidad & Tobago, using the data above, shows that Jamaica’s lower end is about USD $7,000, Trinidad & Tobago an average of at about $9,000, and Barbados about $10,500.  This suggests that Jamaica’s hospitality workers could be among the lowest paid in the region. A wider comparison is needed to confirm this.

A comparison among the rates paid across the three countries, Jamaica, Barbados, and Trinidad & Tobago, using the data above, shows that Jamaica’s lower end is about USD $7,000, Trinidad & Tobago an average of at about $9,000, and Barbados about $10,500.  This suggests that Jamaica’s hospitality workers could be among the lowest paid in the region. A wider comparison is needed to confirm this.

In an article published in The Gleaner dated December 4, 2024, Luke Douglas reporting on the Caribbean Salary Survey Report: Pay Pulse 2024, noted that salaries in Jamaica fell below the regional average in 91 per cent of the roles surveyed. The survey was produced by the Caribbean Society for Human Resource Professionals (CSHRP) in collaboration with caribbeanjobs.com. 

Board Deputy Chairman of the CSHRP, Vaughn McDonald observed that three sectors stood out in terms of compensation, namely, human resources; banking, financial services and insurance; and hospitality, tourism, and catering. According to him, “These industries are not just setting a salary benchmark. They are driving economic transformation in our region.” This may suggest that compensation for tourism executives is reasonable while workers at the lower end of the sector are not being paid livable wages. The inequity needs to be addressed.

References

Allen, J. (2023, January 18). Tourism workers deserve better. The Gleaner. Retrieved from https://jamaica-gleaner.com/article/letters/20230118/tourism-workers-deserve- better 

Douglas, L. (2024, December 4). Jamaica has the lowest salaries in the region, new survey indicates. The Gleaner. Retrieved from https://jamaica-gleaner.com/article/business/20241204/jamaica-has-lowest-salaries-region-new-survey-indicates#google_vignette

Loop News. (2024, November 18). Holness breaks silence on tourism workers’ protests. Retrieved from https://jamaica.loopnews.com/content/holness-breaks-silence-tourism-workers-protest-actions

McCatty, M. & Serju, P. (2006). Tourism, Economic Growth & Employment. Research Services Department Research and Economic Programming Division Bank of Jamaica. Retrieved from https://cert-net.com/files/publications/conference/918.pdf

McGregor, C., (2024, November 19). Excellence Oyster Bay resort offers increased wages to workers following protest. Retrieved from https://radiojamaicanewsonline.com/local/excellence-oyster-bay-resort-offers-increased-wages-to-workers-following-protest

Turner, M. (1995). ed. From Chattel Slaves to Wage Slaves: The Dynamics of Labour Bargaining in the Americas. Bloomington: Indiana University Press.

Waller, L. (2022). Jamaica’s Tourism Sector is Resilient. Retrieved from https://www.vision2030.gov.jm/blog/jamaicas-tourism-sector-is-resilient-september-2022/#:~:text=Tourism%20directly%20employs%20175%20000,utilities%2C%20agriculture%2C%20and%20fisheries

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Canute Thompson is Professor of Educational Policy, Planning and Leadership, Pro Vice-Chancellor – Undergraduate Studies and Director of the Caribbean Centre for Educational Planning at The University of the West Indies, Mona Campus, a social activist, and author of eight books and twenty journal articles.

Professor Thompson has earned several awards. Among them, are eight UWI Mona Campus Principal’s Awards – two for Best Publication (Article Category) in 2019 and in 2020 for his book, ‘Reimagining Educational Leadership in the Caribbean’; three for Most Outstanding Researcher (2020, 2021, and 2024); two in 2023 on behalf of the CCEP –  for Research Activity generating the most funds and Research with the most Development Impact, and one in 2024 for Research Activity generating the most funds.  In 2022 he was awarded a bronze medal in the Independent Publishers’ Book Awards, for his 2020 book, Education and Development: Policy Imperatives for Jamaica and the Caribbean.

Allison Montgomery is a senior administrator in higher education. Among her research interests are educational planning, governance, social justice and public sector reform. She has to her credit six (6) co-authored works.