Guernsey committee opposes minimum wage increase

The proposal was that the minimum wage should increase for adults from £9.55 to £10.65 an hour

Guernsey's Economic Development Committee (EDC) has objected to plans to increase the minimum wage.

It comes after Employment and Social Security (ESS) proposed an increase to the minimum wage for adults from £9.55 to £10.65 per hour.

It also proposed that the minimum wage for people under 18 be increased from £8.95 to £9.65.

Deputy Neil Inder, president of the EDC, said he did not support the increase due to industry criticism.

He said: "The Committee for Economic Development agreed that is not supportive of the proposed 11.5% increase to the adult minimum wage rate and young persons' minimum wage rate."

'Reasonable and desirable'

The construction and hospitality industry have previously expressed opposition to the proposal due to the "potential inflationary impact".

Guernsey Hospitality Association, the body representing the hospitality industry, suggested because of "challenging trading conditions" the minimum wage should go up by 8.75% to £10.40 per hour.

In contrast, ESS's policy letter states that "an organisation representing the retail sector advised that no members of the group objected to the proposed rates".

It said: "An employer representative organisation noted that the proposed adult rate of £10.65 per hour represented only 57% of median earnings and was broadly similar to rates in the UK and Jersey, which was perfectly reasonable and desirable."

Proposals to increase the minimum wage in Guernsey are currently scheduled to be debated in July.

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