- Politicians insist Jersey needs to introduce a minimum living wage
- A minimum £9-an-hour living wage is to be introduced in the UK by 2020.
- What is a living wage? Find out more below
- Do you think Jersey should introduce a living wage? Take part in our poll
A MINIMUM living wage needs to be introduced in Jersey, insist a number of the Island’s politicians.
Deputy Andrew Lewis and several members from Reform Jersey are calling for the measure to be introduced, although a Jersey Employment Law specialist has warned that introducing a minimum living wage could result in job losses.
UK Chancellor George Osbourne recently announced that a minimum £9-an-hour living wage would be introduced in the UK by 2020.
Deputy Sam Mézec of Reform Jersey said: ‘If Jersey had a minimum living wage, it would have to be somewhat higher than in the UK.
‘It is something I believe should be more of a guideline rather than something which is mandatory for everyone.’
- A living wage is an hourly rate set independently and updated annually
- It is calculated according to the basic cost of living
- Employers choose to pay the Living Wage on a voluntary basis
- Paying the Living Wage is good for business, good for the individual and good for society
He added that if the policy was introduced, the government would need to work with local industries and businesses.
‘We are not wanting businesses to pay high wages, just wages in line with the cost of living,’ he added.
Deputy Lewis also backed the call for a minimum living wage.
He said: ‘Detractors always point to the potential for jobs to be lost, but that is a red herring.
‘By paying people a decent amount for their work, you stimulate the economy by putting more money in consumers’ pockets and, crucially, you increase the tax take at the same time.’
However, solicitor and employment law specialist Lindsay Edwards-Thatcher of TM Legal Services does not believe that a living wage, similar to that in the UK, would work in Jersey.
She said: ‘The biggest reason is that if you suddenly increase your labour costs, which is the biggest cost to the business, jobs are likely to go.
For example, if a business has £10,000 to spend on labour and it has a set number of staff, if you suddenly turn round and implement a higher living wage, that business will have to reduce its workforce to stay within its budget.’
Ms Edwards-Thatcher added that if the living wage was to be introduced in Jersey and an economic downturn was to occur, there would be a much bigger impact on the Island.
Asked if she believed whether wages posed an issue in Jersey, Ms Edwards-Thatcher said: ‘The minimum wage is very well managed and goes up in line with recommendations from the Employment Forum, and I would urge all employers to respond to that.’
