THERE was understandable enthusiasm in the manner in which a recent report that the government is poised to sign into law new minimum wage guidelines for the private sector was aired.

It gave the impression of a done deal for a move outlining updated salary levels for various categories of employees.

Yet, on close examination, it is clear that there was a round of consultations still lying ahead, and everyone knows that a lot remains to be done. Indeed, there is little hope of any major breakthrough as what sets a minimum wage is labour availability, at least for the private sector.

The reason is that competition is ferocious outside there and no employer can share out all the benefits with employees for the sake of providing a living wage except paying in such a manner that he or she has an encouraging level of profit.

One would say that setting the minimum wage, and especially for the private sector, occurs by taking account of relative rates of profit for the different sectors and sub-sectors. Public sector minimum wage setting is a different issue in that the state collects funds from sections of society to pay civil servants.

The government looks all but optimistic that, with comprehensive consultations having already been conducted with major stakeholders including employers’ organisations, policy regulators and government departments, a final meeting to set proposed wage levels could take place early as next month.

While this schedule has been somewhat tempting for the trade union negotiators, many analysts appear far less expectant, aware that this year’s budget proposals have been finalised where such proposals would have been embedded.

What lies next is the General Election and hardly anyone is paying much attention to substantial government initiatives particularly during the campaign period.

The government is evidently mindful of the welfare of private sector employees if it could fix a wage deal and it sticks, without mass layoffs if profit projections are severely affected.

The reality is grasped across trade union ranks, as they often negotiate with employer organisations and these things have to be explained. That is why the legislature and an array of experts generally debate tax levels in various sectors as it has a singular impact on profit generation and even wage levels. It is in this sphere that employers expect, and want, measures.

That is why formulations like the government being committed to improving labour laws to meet essential needs of the workforce are somewhat imprecise, as it isn’t labour laws which enable workers’ welfare to be met but low taxes and low prices of goods.

This could indeed be the case if the government was collecting revenues from all commercial institutions instead of having more than three hundred public agencies which don’t pay taxes but expect vast subsidies from the government.

It also takes out loans to procure equipment or technology for such firms, thus ballooning the foreign debt, and hence the need for it to increase taxes to pay out the loans and vast wage claims.