Minimum wage comments are 'madness', says business

Businesses, charities and politicians have reacted to criticism of the minimum wage by the economic development minister, with one coffee shop owner calling his public comments "madness".

Earlier this week, the chief minister rejected Deputy Gerald Voisin's suggestion that the minimum wage was "strangling our economy" and said the minister's views did not reflect that of the government or States Assembly.

Frank De Jesus, who runs Coffee Republic, said the cost of living and of doing business in Jersey were a "far-reaching issue". He has called on the council of ministers to "get their act together" and discuss workers' pay.

The BBC has contacted Voisin for comment.

De Jesus said to get good staff he often has to pay above the minimum wage, currently set at £13.59 an hour.

He said the cost of labour was a "polarising issue" with most businesses on the high street "just getting by".

He said: "On one hand, obviously, retailers and hospitality need to make a profit... but we're also very aware that our workers need to feel as if they're valued and that they have a chance to get on in life."

Responding to the disagreement between ministers, he said Voisin's public comments had "opened a can of worms".

He said: "Maybe they [ministers] should get around the table and talk about it, I would think, before going publicly with statements that are going to cause huge consternation.

"I think it's madness, really."

He suggested the government should increase the income tax threshold so workers earning minimum wage weren't taxed.

Meanwhile, the head of the poverty charity Caritas said Voisin's comments were "very sinister".

Patrick Lynch said: "It's very disappointing that a government minister would have these views, especially with poverty such a prevalent concern in the island, and a growing one, and the threat of modern slavery also very real too."

He called the spat between Voisin and the chief minister the "first big issue for the new administration", adding it was hard to see how the minister could stay in the government if he continued to undermine his colleagues.

Lynch said it was "reassuring" to see Farnham "slap down" Voisin and he had met the chief minister last month where he confirmed the government's commitment to move the minimum wage in line with the living wage over time.

The chamber of commerce interim president Eliot Lincoln said he did not want the minimum wage to be scrapped but believed it could not continue to rise in the way it had in previous years.

He said it was good Voisin's comments had prompted debate, adding the government should implement a "more responsive wage setting system".

He said: "Chamber is therefore calling for an independent, evidence-led review of Jersey's approach, including the possibility of greater sectoral flexibility, appropriate trainee and entry level rates, and better use of the tax and benefits system to support household incomes."

Voisin's letter and the widespread political debate around the minimum wage was prompted by an article in the Jersey Evening Post at the end of July by the business author Douglas Kruger.

Kruger, a member of the political movement Value Jersey, accused the government of "bullying" businesses into paying higher wages and called for the minimum wage to be scrapped.

Voisin endorsed Value Jersey during the election.

Speaking to the BBC, Kruger defended his comments and the economic arguments behind them.

Kruger said: "Go back and count how many businesses have closed in Jersey over the past few years and that's because of the rise in costs.

"If we can get the costs down, and that's what Value Jersey is fighting for, get the costs down people can be paid more.

"I believe in my heart and soul that if you want good people you pay them well, I do not believe that the government gets to force that," he added.

Co-leader of Reform Jersey Deputy Montfort Tadier said Value Jersey's arguments about scrapping minimum wage were "very alarming" and the comments from the economic development minister were "divisive".

He said: "We know that we live in an expensive island where people are struggling with their time, families often don't have time to spend with their children, childcare is expensive and the last thing people want to hear is that they might be getting paid lower wages than they are currently now."

He called on Voisin and his "shadowy party" to "come out and give real solutions to the big ticket items that they have failed to do up until now".

Follow BBC Jersey on X and Facebook. Send your story ideas to channel.islands@bbc.co.uk.