BUSINESS groups have welcomed the reintroduction of a minimum wage for trainees – with the construction sector saying there was a danger that all apprenticeship schemes could have stopped altogether without the government’s change of tack.
Yesterday [MON], Social Security Minister Lyndsay Feltham announced that the apprentice minimum wage – scrapped by States Members from January 2024 after a vote the previous April – was returning.
The decision to bring it back was made just a day after a Chamber of Commerce survey was published, which highlighted “significant concern” among local employers and urged the government to rethink this policy.
From next month, a trainee in the first year of an approved apprenticeship will be paid at least £10.50 per hour, rising to £11.75 in their second year.
Existing trainees will continue to have a minimum wage of £13 per hour.
Welcoming the announcement, Jersey Construction Council Adrian de Gruchy said: “This has followed lobbying various ministers as part of the Jersey Construction Hub Strategic Board, where industry representatives have worked with the government to highlight issues, and develop and release a survey. The government has then responded swiftly to address the industry’s concerns.
“This will now allow employers to consider taking on apprentices and developing local talent.”
Chamber of Commerce president Lee Madden said his organisation’s survey had been unambiguous in its findings.
He said: “79 organisations, representing a wide range of industries, responded to the survey with 55 reporting a negative impact on their ability or willingness to employ trainees or apprentices. A clear majority – 57 respondents – said their business would benefit if the trainee wage rate was reinstated.
“It showed that there was widespread concern among businesses with the potential for a long-term impact on skills development and youth employment.
“Following the government’s decision, there will be relief among small businesses who are faced with increased wage costs for trainees and it also means that employers will feel confident in offering entry-level opportunities for young people and those with no prior experience.”
Mr Madden added that some members – particularly in the construction sector – had been forced to stop all apprenticeship schemes or “massively reduce” them.
The politician who called for the merging of the general minimum wage and trainee wage in April 2023, which was supported by the Council of Ministers of the day and passed by 41 votes to seven, was Deputy Max Andrews.
Reacting to its reintroduction, he said: “In response to a recommendation from the Jersey Employment Forum, I amalgamated the trainee rates with the minimum wage, that was then set at £10.50 per hour.
“The new trainee rates are set at a good level. At £10.50 and £11.75 per hour, the new trainee rates have the potential to give trainees more employment opportunities.
“However, this change has come largely from the private sector, when I think the government should have taken the initiative.”
Deputy Feltham denied that the government had made a policy U-turn in reintroducing the trainee minimum wage.
She said: “It was a very different landscape back then – the previous government was not working towards a Living Wage like we are.”
She added: “I have always been open with employers that I was happy to reintroduce the trainee rate, as long as clear guidelines were in place. I have also made sure that employee representatives, including trade unions, are involved and they are also fully supportive.
“We have also compared what is available in other countries and consulted with Caritas [a charity which is licensed to set the Jersey Living Wage].”
Deputy Feltham said that the current government remained committed to implementing a decision made by the States Assembly in 2021 to raise the minimum wage to two-thirds of the median wage.
