Comments on proposed increases in minimum wage

Dave Newman, CGi chairman, said:

‘We are aware of the proposed changes to the minimum wage announced today but have not had an opportunity to consult with our membership for their views.

The CGi recognises that those on lower incomes should be supported, particularly given the rapid rising cost of living in the Bailiwick.

We have previously outlined that the minimum wage set by the States does not determine the level of pay for staff on-Island. For a number of employers, these are set more by local market forces due to the extreme shortage of workers available, so they are having to pay higher wages in order to keep and attract staff.

Any increase in staff costs, along with the current rises in utility bills, petrol, raw materials, together with the introduction of secondary pensions, means businesses will have no alternative but to increase charges which will be passed on to their customers.

When the minimum wage is increased, firms then have to raise their own wage structure to keep parity with the other employees who are paid above the minimum wage.’

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