Chamber of Commerce wants review of minimum wage model by industry

Heated debate over Jersey's minimum wage continues, with the Chamber of Commerce supporting a review into how rate increases have affected employment, working hours, prices, business investment, and the island’s competitiveness.

The call from the group representing more than 600 local businesses comes after a letter penned by the Economic Development Minister was published in the Jersey Evening Post this week.

In it, Deputy Gerald Voisin signalled his clear opposition to the single basic hourly rate of pay and positioned him in favour of scrapping it - sparking fierce debate. 

Deputy Voisin wrote that the current rate - of £13.59 per hour - is 'strangling the economy'. by pushing up prices and limiting job creation.

The Chief Minister, Senator Lyndon Farnham, issued a statement to make it 'absolutely clear' that the government has no plans to propose scrapping the minimum wage.

He said comments made by the Economic Development Minister are his 'personal views and should not be taken as representing the position of the Council of Ministers or the States Assembly'.

Read: CM: 'No plans' to abolish minimum wage - Channel 103

However, Jersey Chamber of Commerce says it has 'welcomed' the sentiment of the Economic Minister, adding he is 'right' to question the minimum rate of pay. 

"Jersey’s minimum wage has increased from £8.32 an hour in 2020 to £13.59 today, a rise of more than 63 per cent, almost double the rate of inflation and is widely regarded as one of the highest statutory minimum wage rates in Europe."

Chamber says 'the Minister is right to ask' whether a single statutory wage is best, adding this is not about 'reducing existing salaries' but rather creating 'greater flexibility for future recruitment.'

Eliot Lincoln, President of the Jersey Chamber of Commerce

Interim President of Chamber Eliot Lincoln told Channel 103 that some of its members are 'facing challenges.'

"We do need a minimum wage, but we need to open the debate. 

"We already have a trainee rate that's lower, but it's whether we can have differential minimum wages across different industries, or looking at Saturday work, or part-time work."

Chamber believes that would help businesses offer additional hours, make it easier for young people and those returning to work, support seasonal sectors and generate more investment in training, technology and productivity.

Read: Trainee minimum wage reintroduced

Mr Lincoln said: “The Minister has opened an important debate which should not be closed down by slogans or assumptions."

Deputy Gerald Voisin has not been available for comment following the publication of his letter.

Meanwhile, Reform Jersey has called the notion of no having a minimum wage 'exploitative' and one that will affect only those who are 'already in the starkest economic circumstances.'

 Deputy Montfort Tadier, Reform Jersey.

Co-leader, Deputy Montfort Tadier, said to Channel 103:

"The question is, who do we want to be paid less? Young people, older people, migrant workers? It starts to sound very exploitative.

"If people are not guaranteed any minimum wage, then people can theoretically be paid £2 an hour; how are they going to survive? And who is going to pick up the bill - charities, food banks?"

Deputy Tadier described Deputy Voisin's comments as 'alarming' and 'baffling', describing the man in charge of the island's economy as a 'ministerial lose canon.'

"I am pleased to see that the Chief Minister has come out and said that these comments do not represent his view, or the view of the wider Council of Ministers."