Manx Labour Party 'disappointed' in Minimum Wage Committee recommendation

Says nonalignment of living and minimum wages would be 'treating the lowest paid workers with utter contempt'

A Manx political party says it's 'disappointed' to hear that the Independent Minimum Wage Committee has recommended no increase to the minimum wage before April next year.

Government previously committed to harmonising the minimum wage with the living wage by April 2025, but the committee felt the timescale for this implementation was unrealistic due to 'very high inflation' in recent years.

It argued that the effects of the Covid-19 pandemic continue to place a significant extra burden on employers in low-paying sectors, potentially prompting attempts to reduce staffing costs.

Furthermore, the committee cites the impact on employment, inflation, costs, and competitiveness. 

It believes significant rises in the minimum wage above the prevailing rate of inflation would ‘inevitably promote’ a hike in prices.

It also cited the six percent increase implemented in July this year.

However, the Manx Labour Party says 'any further deviation from this recommendation would be treating the lowest paid workers within our community with utter contempt'.

In a statement, it said: "The MLP is disappointed to learn that the Independent Minimum Wage Committee has recommended no increase in the Minimum wage before April 2025.

"The MLP welcomed the Island Plan Tynwald Commitment target that would have seen the alignment of the Minimum Wage and Living Wage from next year.

"The lack of support for this proposal from the Independent Minimum Wage Committee puts this target at serious risk.

"The MLP stand firm that any further deviation from this recommendation would be treating the lowest paid workers within our community with utter contempt.

"The MLP would strongly urge Government to remain with the Tynwald approved  commitment on the date previously agreed or at the very minimum implement a further staged increase in April 2025 and express a strong commitment that the alignment to a Living Wage will remain for April 2026.

"A minimum wage below the living wage simply means that taxpayers are the ones that absorb the cost of making sure people have enough to live, as this pushes up the needed spending on the benefits system.

"A minimum wage that is below the living wage is bad for many businesses. A community where many struggle to make ends meet is not a community that has the disposable income to spend in local businesses."