A UNION is rallying its members to contact politicians in support of the potential introduction of statutory workplace pensions in Jersey – after the Social Security Minister revealed it was on her agenda for this term.
Unite the Union Jersey said that such a scheme needed to be introduced “sooner rather than later” and pointed to other jurisdictions, including the UK and Guernsey, which already had.
It follows recent comments by Senator Elaine Millar, who told the JEP that moves towards a new system which would encourage Islanders to save ahead of their retirement years were “definitely” among her priorities.
The Chamber of Commerce has said it will be pushing for “a full understanding of the impact on employers” as well as “an appropriate timetable for any introduction” should plans be taken forward.
The matter of statutory workplace pensions has been worked on by previous governments, including during Senator Millar’s first stint as Social Security Minister between 2022 and 2024.
She noted that plans were deferred following the change of government in 2024 “as it was felt that the combined burden of increases to the living wage and workplace pensions would be too great for some employers”.
Unite the Union Jersey said: “This needs to be introduced sooner rather than later, as it has been in the UK and even Guernsey has moved on this ahead of Jersey.
“We would encourage all members to write to your elected Deputies, ministers and Senators to support this if it goes to a vote in the Chamber.”
The Union questioned how those who were currently struggling financially while in work would be able to rely solely on a States pension when they retired.
“Having a workplace pension is crucial, if not the taxpayer will need to support thousands of people who cannot afford to live, so being proactive and moving this forward is vital in the long run.”
Senator Millar has stressed that there would be extensive consultation before any decisions were taken over the details and start date.
In a statement, the Chamber of Commerce said it welcomed the opportunity to be part of the consultation.
“We are yet to see the detail, so it would be premature for Chamber to reach a settled view,” the statement said.
“Any further financial burden on employers must be considered very carefully. Many businesses already provide workplace pensions and Chamber recognises the importance
of helping people prepare for retirement.
“However, for those that do not, any mandatory employer contribution could have a significant impact.”
The organisation noted that there was already nervousness among its members regarding “the cumulative burden of rising employment costs”, including increases in the minimum wage.
It added: “Chamber will be pressing for a full understanding of the impact on employers, particularly those sectors already under the greatest pressure, together with an appropriate timetable for any introduction.”
