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Reform Jersey is calling for the ‘living wage’ to be applied to all States employees, as well as States-owned companies and States contractors, by 1 June 2018.
The party's vice-chairman, Deputy Geoff Southern, has lodged a proposition today that includes several measures "to end the scourge of low pay in Jersey."
A living wage is described by the UK Living Wage Commission as “...an hourly wage defined as the minimum amount of money needed to enjoy a basic, but socially acceptable standard of living.” The report that accompanies Reform's proposition states that it is "...higher than the UK government’s National Minimum Wage rates, including the minimum wage rate for over-25s (the ‘National Living Wage’) because it is calculated according to the cost of living."
The “Caritas” charity has been licensed by the Living Wage Foundation to set the Living Wage rate for Jersey and to promote its adoption. To calculate the rate of £9.75 an hour, Caritas used the income distribution method, based on the 2014/15 Income Distribution Report, which was adjusted for inflation.
Earlier this month, the Chief Minister unveiled plans to push up the island's minimum wage by at least 10% before 2020, based on a report published by consultants Oxera. The report reviewed the impact of raising the minimum wage to £7.90 per hour, based on 45% of mean weekly earnings, or to £8.40 per hour, based on 60% of median earnings, to estimate the potential consequent economic and fiscal impacts.
Reform states that the higher figure "...appears to have been calculated from the median income after housing costs (AHC) as shown in the income distribution survey 2014/15" and that, therefore, it "...does not properly reflect median income." They say: "The higher figure of £9.75 produced by Caritas much better indicates the 60% marker of relative low income required to lift people out of relative poverty."
Pictured: Deputy Geoff Southern in the States Assembly.
Deputy Geoff Southern writes: "I believe it falls on the government to lead the way on this initiative, as indicated by the Chief Minister’s agreement to adopt the living wage. This proposition requests that the Chief Minister wholeheartedly adopts the full range of approaches to becoming a living wage employer by paying the living wage to both its contracted employees as well as those directly employed, and encourages the adoption of the Jersey Living Wage by those companies in which it has a shareholding and those who seek States’ contracts."
The Deputy has lodged a proposition to request the Chairman of the States Employment Board to seek accreditation of the Board as a Living Wage employer and to ensure that all directly-employed States of Jersey staff are paid at least the Jersey Living Wage by 1st June 2018. He also wants all contracted employees who work on States premises to be paid at least the Jersey Living Wage.
Furthermore, Deputy Southern is calling for the Treasury Minister "...to use his influence as the shareholder representative of the States of Jersey-owned companies to urge them to sign up as ‘living wage’ employers with Caritas."
Finally, he wants the Minister to to consider the wage rates of potential contractors before choosing them to undertake work, "...as an incentive for businesses to pay their workers a ‘living wage’".
Pictured: Deputy Sam Mézec says Reform Jersey is committed to "end the scourge of low pay in Jersey."
Party chairman Deputy Sam Mézec said: “Reform Jersey is committed to proposing policies to end the scourge of low pay in Jersey and believes that the States of Jersey should be leading the way. The Chief Minister has already said he wants to see the States seek accreditation as a ‘living wage’ employer, but we could go a lot further than this.
"It’s right that we should urge the companies which we are the sole shareholder of and businesses which undertake work for the States to pay their workers enough to live on. We hope States Members will back this proposition and show that we are serious about improving life for low-paid workers.”
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