BUSINESS representatives are urging the government to rethink a policy which saw trainee minimum wage rates integrated into a single minimum rate for all employees above school-leaving age.
The Jersey Chamber of Commerce recently carried out a survey of its members on the impact of the abolition of the trainee minimum wage rate.
This reduced minimum wage was scrapped from the start of 2024, after politicians backed an amendment from Deputy Max Andrews.
A total of 79 organisations responded to the Chamber of Commerce’s survey, with 57 stating that their business would benefit if the trainee wage rate was reinstated.
Eight opposed reinstatement, and 14 were unsure.
Meanwhile, 55 respondents said that the abolition of the trainee minimum wage rate had a negative effect on their ability or willingness to employ trainees or apprentices.
One respondent reported a positive effect, 19 saw no change, and four said it was too early to say.
The Chamber of Commerce also highlighted recurring themes in the free-text feedback, including increased wage costs for trainees placing pressure on smaller businesses, fears about the loss of entry-level opportunities for young people and those with no prior experience, and the importance of a realistic and affordable wage rate for trainees to encourage investment in training and work experience placements.
The survey findings will be shared with policymakers to “underline the widespread concern among businesses, the potential long-term impact on skills development and youth employment, and urge a rethink on this policy”, the Chamber of Commerce said.
