The Isle of Man Chamber of Commerce has welcomed Tynwald’s approval of a new minimum wage methodology linking it to median earnings.
Government abandoned its pledge to align the living and minimum wage in light of concerns from some businesses.
Chamber has called the decision a move toward “a more consistent and evidence-based wage-setting system”
CEO Rebecca George said: “We support the direction of travel, but we also want to ensure that this policy shift results in fair, workable outcomes for businesses and employees alike.”
The Chamber cautioned that using a combined public-private sector median could distort outcomes, citing analysis showing public sector earnings on the Island are 15% higher than UK equivalents.
Disheartened
However, the decision has faced fierce criticism with Manx Labour Party leader Joney Faragher saying: “I was deeply disheartened with this vote at the end of a long day”, noting the abandonment of the prior commitment.
Liberal Vannin leader Lawrie Hooper was more blunt, calling the move: “Absolutely shameful. Fair wages aren’t something that should be optional and this government has singularly failed yet again.”
An amendment by Poverty Committee Chair Juan Watterson to base the wage on minimum income standards was also rejected in Tynwald.
Ms Faragher said: “We have now abandoned a principle that wages should meet living costs and replaced it with a mathematical average that may or may not reflect real need.”
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