Pieters (PPA): Higher minimum wage could lose value if prices rise

ORANJESTAD — PPA parliamentarian Eduard Pieters warns that a substantial minimum wage increase will not necessarily improve purchasing power if businesses pass additional costs on to consumers.

Pieters supports closing the gap between the minimum wage and the subsistence minimum — the income needed to cover basic expenses — but calls for a thorough assessment of the consequences. “Of course we must close the gap,” he said.

According to Pieters, import costs, the cumulative effect of BBO taxes and higher labor costs could put further pressure on prices. He also says a higher minimum wage could prompt supervisors and managers to request pay adjustments.

“Businesses will not operate at a loss. They factor it into their prices. And ultimately, we as the public have to pay,” he said.

For Pieters, the measure’s success should be judged by what workers can actually afford, rather than simply the figure on their payslips.