A MINIMUM wage would have to take account of the full employment package. Guernsey Hospitality and Tourism Group chairman Chris Sharp said that aspects such as subsidised accommodation and taxed tips should be included.
‘It’s all about how you calculate the things that subsidise income,’ he said.
‘Most people in these lower paid positions are offered subsidised accommodation, meals on duty, uniforms and the like.
‘It’s more than just the basic rate of pay. It’s how the whole package is put together.’
The tourism, hospitality and growing industries were usually the first to go under the spotlight when a minimum wage was being discussed but Mr Sharp believed the situation in Guernsey was different from the UK.
Commerce and Employment’s proposals for the introduction of a minimum wage are included in the latest Billet d’Etat, but there is no recommendation as to the rate.
The current UK one for adults is £5.52 per hour and Mr Sharp believes Guernsey could consider something similar.
The UK figure amounted to £11,500 per year for a 40-hour week and he said employing a waitress in Guernsey cost at least £12,000.
A receptionist was paid between £13,000 and £15,000 and that was for a junior position.
Mr Sharp said that Guernsey had to be careful that the cost of monitoring a minimum wage did not outweigh the benefits it brought to what would be small number of people.
‘Once the legislation is in place it ‘the minimum wage’ will only go up and it’s how they control it that matters,’ he said.
‘With the zero population growth policy, my concern is that this could be a device to make wages climb to increase tax take and we must be wary of that.’
Cornerstone licensee Richard Cann said he would have no problem with a minimum wage.
‘Hopefully it would drag a few people into the 21st century in terms of what they pay,’ he said.
‘This trade has had a somewhat undeserved reputation in recent years with wages, but I think generally now in Guernsey, it’s pretty good, though you do get the odd anecdotal story.’
Guernsey Postal Flowers Association chairman Mark Fletcher said he was surprised it had taken the island so long to make formal proposals for a minimum wage and now it was catch-up time.
Guernsey had a degree of independence, but there were times when it had to follow the outside world, he said.
‘The whole of Europe, including Jersey, has a minimum wage so why should we be any different.’
He knew of workers who had moved to Jersey for higher wages and said this could be the reason for Commerce and Employment’s decision.
‘It will be hard on some growers for sure as, in some cases, with overtime, it will increase their wage bill by 25%,’ he said.
That was on top of the highest ever oil prices, an increase in postal costs and uncertainty over the future of the concession that allowed goods below the value of £18 to be imported into the UK Vat-free.
‘We ‘Fletcher’s Freesias by Post’ will survive, but I’m not sure about some of the others as it’s a case of everything coming at once,’ he said.
Article posted on 13th October, 2007 - 12.00am
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