Construction industry fears 'pace' of wage rise

The construction industry on the Isle of Man has warned against the "scale and pace" of a new rise in the minimum wage, which would see employees earn £13.46 an hour.

Construction Isle of Man, the body which represents the island's workforce, has said the 9.9% wage increase, could put apprenticeship opportunities and the island's "long-term skills pipeline" at risk.

The 9.9% rise - based on 66% of the median earnings recorded in the Isle of Man Earnings Survey Report 2025 was approved by Tynwald in October.

In a letter sent to Tynwald members, the construction body highlighted a reform of the personal allowance and adoption of a tiered wage structure as possible alternatives to the rise.

The body has called for "urgent dialogue" with the government on the issue, which they believed would have a "sector-wide impact" if enacted in its current form in April.

"Although aimed at supporting lower-paid workers, such a significant step has wider, unavoidable consequences in an industry where labour is a large proportion of the total project cost", a statement from Construction Isle of Man said.

They claimed smaller contractors, operating on tight margins, could see workforce reductions, higher tender prices or withdrawals from projects as a result of the minimum wage rise.

Since Tynwald approved the measures in October, the island's workforce has been divided on the wage rise.

Some workers agreed it was needed to combat rising prices, but employers had warned it could lead to reduced staff hours or the increase being passed on to customers in some sectors.

This latest rise in the minimum wage follows a previous rise, approved in February, which saw the hourly rate move to £12.25.

The basis for calculating minium wage rises was agreed by Tynwald members earlier this year as an alternative to a previous pledge to bring the minimum and living wage rates together by 2026.

Construction Isle of Man say a reform of the personal allowance would support low-paid workers without inflating wage pressure whilst adding a tiered wage structure, similar to that used in the UK for ages 16-20+ would protect apprenticeship pathways.

The island's Treasury and Department for Enterprise has been approached for comment.

Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.