The effect of global phenomenon continues to impact local business. Once again, the issue of "Shipping Costs" surfaces. Ship agents have already started alerting firms purchasing goods from the far east of reduced shipping capacity, rising shipping costs and protracted delays, that will require greater lead times.
These increased costs will eventually be passed on to the consumer. However, firms are faced with having to place orders extremely early if they expect to have goods on island at the time they wish.
Added to this the continued challenges of unusual weather patterns will continue to impact shipping and global trade.
On the local front, a discussion has commenced on the issue of price of eggs and local meat products. The implementation of Article 164 treatment on animal feed, may send some shocks through the system, as producers who have been purchasing feed from non OECS sources will have to pay the Article 164 duties (50% on CARICOM MDC feed and 100% on extra CARICOM feed).
The response of farmers will determine the ultimate impact. Many farmers have argued that the OECS animal feed does not produce the level of output that the extra OECS animal feed provided. The farmer will have to decide whether the differential in price and output compels the use of OECS animal feed or extra-OECS animal feed.
This is business decision they will have to make after careful and thorough analysis, as any significant increase in the price of animal products (eggs and local meat products) will have an effect on demand and ultimately affect the profitability of the farmers operations.
The Chamber has engaged the Ministry of Commerce and a meeting with affected members, the Ministry of Commerce (and the Ministry of Consumer Affairs) along with the Ministry of Agriculture is being planned.
While conversation on the imminent Minimum Wage has remained muted, some Chamber Members and other members of the business community have been sharing their concerns with the Executive Director.
With no word to the contrary, it is expected that effective August 1, 2024 the Minimum Wage Order will be in effect. While most Chamber Members have not expressed any disagreement with the Minimum Wage and or its level, the Chamber remains disturbed by the approach taken to introduce the said wage.
There has not been sufficient time provided for real dialogue and conversation on the minimum wage and its impact on not just employees, but also employers.
In the limited discussions on the Minimum Wage, concerns were articulated by the MSME Sector and the Bakers in particular. The concern was the ability to afford an increased wage with limited time to adjust, prepare and even assess impact. The Micro Business Sector particularly, were extremely concerned, and no words of comfort, strategy or support was forthcoming.
Questions regarding, the need to increase to the stated minimum wage in one full swoop, have been met with terse response. As were questions as to the use of "dated statistics" and not more up to date data.
The Chamber for its part remains concerned that it has had no opportunity to assess potential impact on members and the wider business community and thus be in a position to offer advice and support to those who will be affected.
According to the Equal and Minimum Wages Commission, 20% of all registered employees will be affected and benefit from the increased Minimum Wage. The expected impact on Total Wages according to the Commission is 3%. (i.e. it will result in an increase in total wages of 3%).
Clearly the Commission did not take account of the effect this would have on firms who have persons near, at or just above the Minimum Wage, now seeing their subordinates getting an increase and their wages remaining stagnant. The issue of relative wages is real and affects relationships and productivity significantly. Thus, many businesses will experience a knock-on effect in their wage bills, which will have to be recouped from price increases to consumers.
The above is just one example of the more thorough impact assessment that the Chamber has not been able to conduct due to the approach taken to introduce the Minimum Wage.
The tendency to "inflict" policy, good or bad results very often in missed opportunity for more refined and systematic policy and policy implementation. We saw this with Health and Security Levy and now, the Minimum Wage, where time for consultation and dialogue was curtailed by the approach adopted to introduce and implement.
To date the Ministry of Finance has not offered a view or shard the result of their review of the Minimum Wage and its Impact on the economy and society.
The Chamber has expressed its concern to the powers that be, and it is left to be seen if this pattern of policy implementation remains the order of the day.
The St. Lucia Chamber of Commerce, Industry, and Agriculture, in partnership with the Youth Economy Agency (YEA), with support from the German Sparkassenstiftung for International Cooperation (DSIK)recently concluded an impactful training course examining the intricate and practical details of "Costing and Pricing." This course was aimed at equipping small business operators with essential skills and knowledge to develop effective costing and pricing strategies.
The program, part of the Chamber’s longstanding effort to increase financial literacy, was conducted using an interval learning strategy over five days, from June 19th to June 27th, 2024, fortwo-hour sessions. This ensured that participants had time in between to apply and test the information shared at the previous session. The course was also specifically scheduled (5:30-7:30 p.m.) to accommodate the hard-working businesspeople, in a way that their time at work would not be excessively disrupted.
The Program was facilitated by Mr. Benjamin Menald, a St. Lucian and former US Fortune 500 Business Executive, with over 30years of extensive experience in Financial Planning Analysis, Strategic Planning, and Costing and Pricing. Mr. Menald's expertise and engaging delivery received positive reviews from participants, who appreciated his clear and concise explanations and practical scenarios.
Participants praised the training for its interactive and informative nature, emphasizing the valuable insights gained into the subject of costing and pricing. Many highlighted the numerous practical examples and real-life scenarios presented, that enabled them to reflect on their own businesses and practices, allowing them to make necessary adjustments to improve their business operations.
The St. Lucia Chamber of Commerce is committed to supporting businesses across the island and recognizes the need for continuous professional development. In response to the high demand and positive feedback, the Chamber is excited to announce that this "Costing and Pricing" course will be held in Vieux Fort soon. This is to ensure that businesses in the south of the island also benefit from this essential training.
Testimonial from Trainee
The 5-day costing and pricing workshop, facilitated by the St. Lucia Chamber of Commerce, was outstanding. Representing IDEQ Caribbean, I gained critical insights into fixed cost absorption, inventory management, and cash liquidity. The workshop also emphasized essential business practices, such as implementing internal controls to mitigate cost overruns and prevent fraud. However, what stood out the most was the practical focus on incremental analysis for decision-making, which will help sharpen our financial and operational approach. Overall, the experience has left me confident and eager to implement the costing and pricing strategies that will improve and streamline our processes.
-Termin Ismael
Administrative Assistant at IDEQ Caribbean
Meeting to Discuss Operations and Services of the Inland Revenue Department
The Government of St. Lucia has engaged the service of the former Comptroller of Inland revenue Mr. Trevor Brathwaite to conduct a review of the operations and quality of services provided to the general public and the business community. The intention is for the Consultant to recommend improvements to service delivery and other operations that will redound to the benefit of the institutions, its stakeholders and ultimately the nation.
In that regard the Consultant wishes to meet with Chamber Members to discuss their views and experiences they have had when engaging with the IRD so he can better appreciate the challenges and opportunities for reform and enhancement.
Thus a meeting has been scheduled for August 14th, 2024 at the Chamber's Conference Room from 2:30 p.m. This Meeting will be a ”Listening Session” where the Chamber Members can be heard, and their views taken account of in the Consultant’s report and recommendations.
Please confirm your attendance by registering. It would be most useful if attendees would have had direct and regular interaction with the department when conducting the business of the company.
Thanking you in advance for your participation in this most crucial exercise. Click to register.
Save The Date
Business Continuity Planning Workshop: Safeguarding Your Business in Times of Crisis
The St. Lucia Chamber of Commerce is pleased to invite its esteemed members to a pivotal 2-day Business Continuity Planning Workshop, scheduled to take place on September 4th and 5th at the St. Lucia Chamber of Commerce meeting room.
The St. Lucia Chamber of Commerce, Industry and Agriculture continues its rich tradition of helping members stay ahead of the curve by addressing emerging issues, capitalizing on upcoming trends, and navigating the rapidly changing and unpredictable economic cycles. This intensive 2-day workshop is designed to equip participants with the knowledge and tools necessary to develop and implement an effective Business Continuity Plan.
Inter Commercial House Domino Competition
The St. Lucia Chamber of Commerce, Industry & Agriculture, will once again be hosting The Inter Commercial House Domino Competition scheduled to commence in September 2024.
This event promises to be a fun-filled opportunity for businesses to engage in friendly rivalry as they come together, to showcase their skills, foster camaraderie within the business community and to build firm team spirit.
Member firms are invited to form Teams among employees and register to participate in the Chamber Inter Commercial House Domino Championship.
Hurricane Season is upon us, the season officially commenced on June 1st and ends on November 30th, with heightened activity forecasted for this year, we wish to remind you to complete our Business Continuity Plan/ Disaster Recovery Plan Checklist.
Click here to download checklist.
The St. Lucia Chamber of Commerce, Industry, and Agriculture extends its heartfelt congratulations to Atwell Dalgliesh Co. (St. Lucia) on their remarkable 50th anniversary of partnership.
A message from the Managing Director, Mrs. Karen HIppolyte- Elizee can be found by clicking the link below.
Atwell Dalgliesh Celebrates 50 yrs.pdf
The St. Lucia Chamber of Commerce , Industry and Agriculture, congratulates our member, True Value Building and Hardware Supplies on their 25th Year Anniversary.
True Value’s 25th Anniversary media event marked the beginning of year-long celebrations, bringing together local media, owners, employees, and customers in a community- focused gathering. Highlighting the company’s history and future initiatives, this event fostered a sense of unity and appreciation among all attendees, setting a positive tone for the upcoming anniversary activities. The mix of speeches and previews offered a reflection on past achievements while looking forward to new opportunities.
A Generation of True Value Magazine.pdf
It is time once again to participate in the work of the Chamber as we continue to garner information from our members and other firms in the Business Community through the Chamber's Quarterly Business Performance Survey. This survey provides an indication of how the business community is performing and their perspective on critical economic issues affecting their operations.
The Business Performance Survey (BPS) is an independently conducted business survey that provides timely insight into the performance of the business sector. You are invited to contribute to the body of information that provides the Chamber, Government, regional and international institutions with critical and powerful insight into the performance of the economy.
Of equal and maybe more value is that the result of the BPS allows the Chamber to speak authoritatively and find ways to tackle the current issues affecting members. With this unique perspective and basis, we can properly advocate and lobby, on behalf of members, specifically on the impact of Government policy, and make informed recommendations in a timely manner.
Once again thank you for participating in the survey and please encourage your colleagues to do so, to help us achieve and glean a broader perspective.
As "the driving force for sustainable business and community prosperity in St. Lucia", the PBS information allows the Chamber to remain informed and credible as we speak on emerging economic trends, patterns and issues that will and are affecting the business community, economy and country on a whole.
The Survey is not very long and is easy to complete.
We value your input and thank you in advance for your timely completion of this Survey.
Click here to complete survey.