Consultation paper by the Employment Forum regarding minimum wage rate

1240/5(3022)

WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY, 10th OCTOBER 2006

Question

1. Has the Minister beenconsulted over the inclusion ofquestion25in the EmploymentForum's consultation paperontheminimumwage rate, namelyDo you think that there shouldbe a youthrateas well as a trainee rate?' and would the Minister informmemberswhetherhe considers that it is appropriate for this issue to be reconsidered when a clear decisionnotto include a youth rate was made by the States on22nd July 2004?
2. Would the Minister outline for membersthe proposed timetable for the production of the Employment Forum'sreportandforthe consultation and lodging of his recommendationsontheminimumwage,and would he assure members that adequate time will be allowed for a full debate prior to the setting ofratesin the industries most affected?
3. Would the Minister inform members whether he will take account of the figures relating to the appropriateness of the current leveloftheminimum wage as set out in my letter dated24th February 2006 (circulated to all members on 28th February 2006) when he brings forward recommendations for 2007 minimumwage rates?

Answer

1. The Employment Forum is an independent, non-political consultative body, established under the Employment(Jersey)Law 2003, to make recommendations in respect ofemployment legislation and in particular the minimum wage. It is made up of three employer, three employee and three independent members.

 I have faith in the Forum to prepare a consultation paper that will appropriately collect the views and

concerns of the public. I have not been consulted on the inclusion of question 25 of the review and, as an independent body, I think it is quite right that the Employment Forum does not consult me on the questions that it intends to ask in its consultation papers, provided they are within the bounds of the consultation topic. This avoids political influence.

W  hen the first minimum wage Order was presented to the States in 2004, the proposal for a youth rate was

opposed and accordingly removed from the Order before being made by the former Committee. However, I do not see that as justification for objecting to a reference to a youth rate in the review. It was recognised at that time that there might be a need for such a rate in future if young people increasingly experience difficulty entering the labour market. If the Forum wishes to reconsider the issue in view of current economic circumstances and prepare a recommendation on the matter then I do not see that as inappropriate.

 T  he Employment Law requires me to refer four specific minimum wage issues to the Forum for their

consideration before any Order is made and before the States makes Regulations. One of those issues is the minimum wage rates to be prescribed under Article 16(3) of the Law. The Employment (Minimum Wage) (Jersey) Regulations 2004, provide that an Order may be made for the purposes of that Article, prescribing minimum wages for employees who may be treated as qualifying for the minimum wage at different hourly rates than other employees; specifically, trainees and employees who have not reached the age of 18.

I t herefore regard question 25, and all of the other questions within the consultation document, as appropriate

to the Forum's review of the minimum wage.

2. The very purposeof the independent Forum istoensureadequate consultation regarding the minimum wage involving all sectors of society and industry.

I e ncourage all interested parties to engage with and contribute to the consultation, which continues until 10th

November. Following a full consideration of the consultation responses, the Forum intends to present its recommendations to me before the end of this year.

I will consider those recommendations and make my proposals to the States as soon as possible after that.

Time is of the essence in order to allow businesses a fair amount of notice of any new rates that are to apply in 2007, especially if we are to meet the April target date.

3. At the States sitting of 28th February 2006, Deputy Southern askedme to use the powersunderArticles19 and 20of the Employment(Jersey)Law2003 to require the EmploymentForum to take into consideration the matterscontainedin his letter when making its recommendation for the2007minimumwage rate.

I e xplained at the time that I considered that to be excessive and unnecessary as the Employment Forum has

always considered all representations and submissions made to it. I pointed out that anyone can write to the Forum on matters under discussion, including politicians, and I encouraged the Deputy to do so when the rate is next discussed.

 I also suggested to the Forum that the Deputy might be contacted and invited to submit his views for

consideration during the next minimum wage review. I am advised that the Forum did so and received a copy of Deputy Southern 's letter.

I can assure the Deputy that his letter has been circulated to all current Forum members and will be

considered along with all other responses and economic advice received during the consultation period.