Sunday, January 21, 2018

Spread out price hikes

it is interesting how differently percentage increases come into effect for selling or counting share profits as opposed to wage earning. When workers are awarded salary increases, for example, the PSA (Public Services Association) was awarded a five per cent increase some time ago, that increase was not immediately implemented in one year, it was spread across three years. The increase was as follows: 1% in year one, 1% in year two and 3% increase in year three.

How is it that the Trinidad Cement Ltd (TCL) does not follow the same standard for implementation of their 9.5 per cent cement price increase? Why is their increase in cement costs not spread over a five or ten-year period? For a five-year period, the spread might go: 2% in year one, 2% in year two, 2% in year three, 2% in year four and 1% in year five. How is the worker/consumer to cope when the pace of execution of percentage increases for selling does not match the pace at which his wages increase?

If TCL were a local monopoly manufacturing vehicles, just about no one in T&T would own a vehicle other than a rich minority. T&T imports vehicles because the cost of making them here is too steep. What is the obstacle that hinders T&T from importing cement since the cost of manufacturing it locally is steep?

B Joseph

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