Business group opposes youth wage increase plans

A Guernsey business group has raised concerns over a proposal to increase youth minimum wages in line with the adult rate.

Currently workers aged 16 or 17 years old must be paid a minimum of £11.35 an hour and for adults it is £12.60 - the proposals suggest increasing both to £13.10.

The Confederation of Guernsey Industry (CGI) chair Garin Dart said matching the wages was "not justified" as it was not reasonable to compare a 16-year-old entering the workforce with an adult with "years of experience, training and responsibility".

The Committee for Employment and Social Security said it was keen to hear stakeholders' views on the proposals "before making any firm decisions".

The CGI said the changes would mean a 15% increase to youth wages.

Dart said: "Many employers have become less willing to offer weekend, seasonal and holiday work to younger people because of the increased costs involved.

"These opportunities are often a vital first step into employment, helping young people gain practical experience, develop workplace skills and build confidence."

Previously the rate for workers aged 16 and 17 was set at 90% of the minimum adult wage, which with the new rate would be £11.79.

The proposals are currently out for consultation, including a Chamber of Commerce survey, ahead of a committee deadline of 28 May for response.

Dart said the increase to adult minimum wages was "acceptable" but it did not "determine pay levels for many employees on-island".

"Wage levels in some sectors are driven by local market pressures and the continuing shortage of available workers," he said.

"Businesses are frequently required to increase wages across their wider workforce whenever the minimum wage rises in order to maintain parity between entry-level and more experienced employees."

The CGI said it called for a "balanced approach that supports young people while protecting employment opportunities and business sustainability".

Deputy Tina Bury, Employment and Social Security President, said: "The committee does not support the premise that it is acceptable to pay 16 and 17 year olds less than adults doing the same or equivalent work.

"This is a change to the current States' approved policy whereby the Young Persons' Minimum Wage Rate is set at 90% of the Adult Minimum Wage Rate.

"The committee is keen to hear stakeholders' views on these proposals before making any firm decisions."

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