BUSINESSES have not been given enough time to adjust to a scheduled rise in the minimum wage, according to the Chamber of Commerce.
The organisation’s chief executive, Murray Norton, spoke after Social Security Minister Elaine Millar signed a ministerial order confirming that the rise – from the current rate of £9.22 to £10 – will come into force on 1 October.
Mr Norton said the Chamber was ‘surprised and disappointed’ that the minister had not adopted recommendations made by the Employment Forum, which said the rate should rise to £10.10 an hour from 1 January but that there should be no interim increase next month.
‘The Chamber of Commerce is completely supportive of a rise of the minimum wage to £10, and following the survey of our membership we expressed this support to the Employment Forum in our consultation earlier this year.
‘We were also supportive of the Employment Forum recommendation to introduce this from January 2023 in order assist businesses in adjusting payroll, reaching new pay levels with those marginally above the minimum wage, amending contracts of employment and assessing the impact of this rise on their costs and any price changes they may need to make,’ he added.
Last week Deputy Millar wrote to Reform Jersey leader Deputy Sam Mézec, who lodged a proposition in June calling for the minimum wage to be increased to £10 per hour by this autumn.
The proposition also requested the development of a scheme to be brought before the States Assembly, to ensure the minimum wage is eventually brought into line with the living wage, which currently stands at £11.27 per hour.
Deputy Millar said that the government was not issuing ‘proactive announcements’ about next month’s rise during the period of mourning for the Queen, but that it was taking steps to ‘ensure that employers are notified as soon as possible’.
Mr Norton said that the timespan that businesses had been given to make the necessary adjustments was ‘not realistic’, adding that the Chamber remained ‘baffled’ by the ministerial order.
‘For businesses that also have agreement to pay a set percentage above the minimum wage, this will also have an implication of increased costs and workload.
‘Unfortunately, while the minister is restricted from commenting or issuing a press release during this period of mourning, we remain at a loss to understand her reasoning for making this ministerial order during this period,’ he added.
