ESS is seeking an increase in minimum wage for adults and under-18s to take effect in October but Sasha Kazantseva-Miller and Bob Murray want to have any increases made in January in future, coinciding with the States’ tax year and Budget. But Deputy Roffey said that approving the amendment would override the proposed increases completely.
‘Deputy Roffey’s comments are a perfect example of creating a mountain out of a molehill,’ said Deputy Kazantseva-Miller in response.
‘The amendment is seeking to ensure that the minimum wage is considered within the same time frame as the Budget and that a decision on the minimum wage is not made earlier.’
She added that Deputy Roffey had told her he was neutral on the idea of moving the date to January.
Deputy Kazantseva-Miller said that the minimum wage was one of many decisions which affect Guernsey’s fiscal outlook that are made outside of the annual Budget process, citing contributory and non-contributory benefits and capital expenditure as examples.
‘From a perspective of efficient management of public finances, we should be bringing all key fiscal and economic decisions into the Budget process,’ she said.
‘This amendment is a small step in that direction.’
ESS’s current proposal, which will go to the States next week, is partly based on the inflation figures from December last year. It has been proposed earlier in the year than normal.
Deputy Kazantseva-Miller said the data used to calculate the proposed increase would be out of date by the time the changes would come into effect.
‘A minimum wage that is out of whack with inflation can negatively affect both employees and employers, and using the most recent data available would be a more prudent approach,’ she said.
If the amendment is approved there would be a delay of three months and the next ESS committee would lead proposals for the next minimum wage adjustment.
Aim is to increase gap between adult and young person’s minimum wages
A move to increase the gap between the adult and young person’s minimum wages is to be made by Sasha Kazantseva-Miller, who has placed a second amendment to Employment and Social Security’s propositions.
Backed by Deputy Simon Vermeulen, the amendment has the support of the Guernsey Building Trades Employers’ Association and the Guernsey Retail Group, said Deputy Kazantseva-Miller.
The gap between the two minimum wage amounts stands at 90% at the moment but the amendment wants this increased to 80%.
‘This has been driven by continuous feedback provided by the industries that are most likely to employ young people, such as retail and construction, that the current narrow differential at 90% is disincentivising them to employ young people,’ she said.
She added that Economic Development had shared similar concerns with ESS but these, along with the other bodies’ concerns, had apparently fallen on deaf ears.
‘Getting skills to be more work-ready for young people is absolutely crucial.
‘I am very concerned that potentially more young people are denied the opportunity of employment.
‘From the research work conducted on the skills gaps by Economic Development and Education, work-readiness after schooling was identified as a key area to look into.
‘Summer and weekend jobs specifically can be key in learning all sorts of skills while getting good pocket money.’
Deputy Kazantseva-Miller said both the bodies she consulted also supported her other amendment involving a change to the timing of when minimum wage increases were brought in.
You need to be logged in to comment. If you had an account on our previous site, you can migrate your old account and comment profile to this site by visiting this page and entering the email address for your old account. We'll then send you an email with a link to follow to complete the process.