THE first crack in the new Council of Ministers has appeared after the Chief Minister rejected one of his team’s suggestion to abolish the minimum wage and accused him of acting alone.
In yesterday’s JEP, Economic Development Minister Gerald Voisin questioned the value of the Island’s minimum wage in an unusual step by writing a letter to this newspaper.
The move by Deputy Voisin to spell out his opposition to the minimum hourly rate was described as “sinister” by the chief executive of the body working to promote a higher living wage as a means of helping alleviate poverty, and as displaying a “reckless and cavalier attitude to economic policy” by a fellow politician.
Now, Chief Minister Lyndon Farnham has shot down his Economic Development Minister’s suggestion by stating that he was not reflecting the views of the Council of Ministers.
It is understood that prior to expressing his views in a letter to the JEP, Deputy Voisin also raised the issue in an email to ministerial colleagues, drawing support from fellow Value Jersey colleagues including Senator Serena Guthrie and Deputy Robert Parker, both of whom hold assistant ministerial roles. The topic was shut down – temporarily at least – by Senator Farnham, although the Chief Minister was unable to persuade Deputy Voisin not to send his letter.
Deputy Voisin said he believed the current minimum wage rate of £13.59 per hour was “strangling the economy” and “turbocharging inflation”, with his comments following similar criticism from Value Jersey, the political movement endorsed by Deputy Voisin and several other candidates during the recent election campaign.
Patrick Lynch, chief executive of Caritas said he believed Value Jersey had used the suggestion of bringing a budget supermarket to the Island as a way of attracting support from voters.
“They couldn’t say during the election that they were opposed to the minimum wage and they wouldn’t have got any votes, so they had this ruse about the supermarket,” he said. “It seems unlikely that the supermarket will come here, which is likely to cause ‘buyer’s remorse’ from those who voted on that basis.
“I have spoken to a number of people about this and the word used on several occasions during those conversations was ‘sinister’ – how can Deputy Voisin stay in the Council of Ministers?”
Having spoken to Senator Farnham since the election, Mr Lynch said he had been reassured by Deputy Farnham’s commitment to maintaining the minimum wage and to gradually narrowing the gap – currently £1.51 per hour– between the minimum and living wages. Citing data showing that the use of foodbanks had more than trebled over the past for years, Mr Lynch said this showed the need for this policy to be maintained.
Newly-elected Reform Jersey politician Deputy Lee Carpenter accused Deputy Voisin of “a reckless and cavalier attitude to economic policy which would see the taxpayer facing tax hikes to offset the huge jump in income support required”. The policies espoused by Value Jersey were “a very real risk to our prosperity as an Island”, he added.
There were more measured responses from the Jersey Construction Council and the Island’s Chamber of Commerce.
Council chair Adrian De Gruchy said: “It is important to consider the potential implications of any changes in a balanced and evidence-based manner. The construction sector would welcome further engagement with government, employers, employees and industry stakeholders to ensure that any future policy decisions support both economic growth and a sustainable workforce, while maintaining Jersey’s ability to deliver essential housing, infrastructure and development projects.”
Interim Chamber president Eliot Lincoln added: “Chamber strongly supports fair pay, but wage policy must be judged by its economic outcomes as well as its intentions. The Economic Development Minister is right to encourage an open and serious discussion about whether the current approach is delivering the best results for employees, employers and Jersey’s wider economy.
“Scrapping the minimum wage is not Chamber policy. However, after a 63% increase since 2020, it is entirely reasonable to review the pace and structure of future increases. Labour intensive sectors cannot continually absorb substantial additional costs without consequences for prices, staffing levels, working hours and investment.
“We would support an evidence-led review, including consideration of greater flexibility for younger people, entry level workers and those seeking their first opportunity in employment. The objective must be fair pay, sustainable jobs, improved productivity and successful businesses. Jersey needs all four.”
Senator Farnham issued a statement, saying that Deputy Voisin was expressing his personal views, not those of the Council of Ministers or the States Assembly.
He said: “The government recognises that the minimum wage is an important issue which requires careful consideration – it has a direct impact on employees, businesses and the wider economy, and there are legitimate views on all sides of the debate.
“A statutory minimum wage remains an important safeguard. It helps ensure that work is fairly rewarded, protects employees from unacceptably low pay and provides an important level of security for many Islanders and their families.
“The Council of Ministers will be discussing the future direction of minimum wage policy as part of its wider work on the Common Strategic Policy and the Budget. That discussion will include consideration of the appropriate level of the minimum wage and the rate at which it should increase in future. Responsibility for the minimum wage sits with the Minister for Social Security, Senator Elaine Millar, who will continue to lead that work in accordance with the established statutory process and following advice from the Employment Forum.
“As with any significant policy issue, ministers will have the opportunity to discuss the evidence collectively before any decisions are reached. It is important that government considers these matters in a balanced and evidence-based way, taking into account the interests of employees, employers and the Island’s wider economy.
“I also want to be absolutely clear that the government has no plans to propose the abolition of the minimum wage. Any such proposal would ultimately be a matter for the States Assembly to determine, but it is not a course of action the government is pursuing.
“We remain committed to supporting economic growth, improving living standards and ensuring Jersey remains an attractive place to live, work and do business.”
