CM: 'No plans' to abolish minimum wage

Jersey's Chief Minister says his government has no plans to abolish the minimum wage.

Senator Lyndon Farnham says comments made by the Economic Development Minister are his 'personal views and should not be taken as representing the position of the Council of Ministers or the States Assembly'.

In a letter to the Jersey Evening Post, published in Monday's paper (17 August), Deputy Gerald Voisin said the current level of the minimum wage - of £13.59 per hour - is 'strangling the economy', pushing up prices and stifling job creation.

Read: Economic Development Minister says minimum wage is 'strangling' Jersey's economy

Deputy Voisin, who owns Voisins department store, set out his opposition to the minimum wage and said Jersey should take inspiration from countries such as Austria, Denmark and Sweden, where there are no minimum wage laws.

Neither Deputy Voisin, nor Social Security Minister Elaine Millar, who is responsible for proposing changes to the basic hourly rate of pay, were available to talk to us.

However, the Chief Minister has issued a statement, saying he wants to make it 'absolutely clear' that the government has no plans to propose scrapping the minimum wage.

"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."

Senator Farnham says it remains ' an important safeguard' and helps ensure work is fairly rewarded.

"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 CM says there are 'legitimate views on all sides of the debate' and that when ministers discuss the future direction of minimum wage policy, they 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."

The Chief Minister concludes:

"The Government remains committed to supporting economic growth, improving living standards and ensuring Jersey remains an attractive place to live, work and do business."