A CHARITY which provides businesses with living-wage accreditation has hit out after the government failed to consult it during an investigation into whether the pay rate should be statutory in Jersey.
Firms can voluntarily sign up to become living-wage employers – paying a basic rate higher than the minimum wage – through a membership scheme run by Caritas Jersey.
Currently about 50 firms and organisations, including the government, pay the living wage, which will rise from £12.19 per hour to £13.41 next year.
The minimum wage, meanwhile, will increase from £10.50 per hour to £11.64.
The government report, commissioned by Social Security Minister Elaine Millar, concluded it was “neither feasible nor desirable” to introduce a statutory living wage rate in Jersey, and that “a statutory link to a specific formula or target could be counter-productive”.
It argued that it would be “difficult to justify” the statutory rate, “which could not be adjusted when circumstances require it”.
Patrick Lynch, the chief executive of Caritas Jersey, said it was “disappointing” that the charity – the only organisation in the Island that provides accreditation to living wage employers – had not been consulted.
He said there was “real concern” about levels of poverty in the Island, as well as “those people for whom their wages no longer meet their outgoings”.
He continued: “We have seen over recent weeks and months, along with our charity partners, food banks and others, the huge increase in need across our Island.”
He added that it was “frustrating” that a global affiliate scheme run by the Living Wage foundation in the UK had not been mentioned in what he labelled a “limited” report.
In a statement, the government said: “This is a technical review, which has looked at evidence from a range of countries where voluntary living wage campaigns have been set up.”
The government acknowledged that the review “did not include local consultation”, but added that the Employment Forum – which acts as a non-political consultative body – had “provided a comment in respect of possible change to the employment law”.
“Ministers value the work that Caritas Jersey undertake in promoting the Caritas Jersey living wage rates,” the statement continued.
The States Assembly agreed in 2021 to set an “objective” to raise the minimum wage to two-thirds of median earnings by the end of 2024, subject to “economic conditions”.
The review said this commitment should be “maintained” – but not written into law. It noted that it “is likely to be difficult” to reach the two-thirds target by the end of 2024.
