EMPLOYERS have expressed concern about the pace at which the Island’s minimum wage has risen recently.
In a response to a survey carried out by the Jersey Chamber of Commerce across a wide range of sectors, many respondents expressed reservations abut the impact of minimum wage increases on business sustainability, recruitment and employment opportunities for young people.
The results of the survey follow comments made in a letter to the JEP by Economic Development Minister Gerald Voisin last month in which the newly-elected Deputy, who had also served in the Assembly between 1999 and 2005, expressed the view that the minimum wage was “strangling the economy” and “turbocharging inflation”. The minister was subsequently given a dressing-down by Chief Minister Lyndon Farnham for initiating policy discussions in the media, rather than around the Council of Ministers’ table.
Interim Chamber President Eliot Lincoln said: “Employers support fair pay and recognise the importance of ensuring workers are properly rewarded for the work they do. However, the survey shows growing concern about whether the current approach is achieving the right balance between increasing earnings and sustaining employment opportunities.
“Perhaps the most striking finding is the impact on young people entering the workforce. Businesses are telling us that opportunities for apprenticeships, traineeships, student employment and first jobs are becoming increasingly difficult to maintain.”
He added: “Chamber believes there is a strong case for an independent, evidence-based review that examines both the benefits and unintended consequences of the current system.”
