The Manx National Farmers Union fears that the increase in minimum wage will risk a reduction in agricultural employment opportunities.
MNFU warns that the increase will further pressurise the agricultural sector, which is already operating on tight margins with high input costs and restricted routes to market.
Speaking to Manx.News, MNFU said: “While it is of course reasonable for employees to expect a fair wage for the work they do, IOM Government and Tynwald should be aware of the risk of a negative economic impact without any compromises for agriculture and local businesses.
“Alternative approaches such as raising threshold for NI or Tax contributions for employees, or NI/Tax relief for small employers should have been thoroughly considered to avoid inevitable reduction in employment and further strain on business viability.”
Risk Employment Opportunities
The union added: “An increase in minimum wage will, without other measures, be unlikely to offer significant benefit to the workforce, once their tax and NI contributions have been deducted, especially with the cost of living and housing remaining so high.
“It will also risk reduction in employment opportunities, if farms and other employers cannot afford to take on staff. It is highly likely that Manx agricultural businesses will be negatively impacted, along with other small businesses operating on the island, without some mitigation.
“Consultation with the agricultural sector on the impacts of minimum wage increases to the industry would have been helpful.”
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