1. ITV Report

Jersey business leaders warn living wage could cost jobs

Credit: PA

Business leaders in Jersey are warning that implementing the living wage in the island could cost people their jobs.

It comes as the States of Jersey debates whether to pay all of its contractors the rate of £9.75 an hour.

The States already pays the living wage to its full-time employees.

The move has prompted campaigners to call for businesses in the island to follow this example.

If the States pass this and become living wage employers then that will set an example for the rest of the island.

I would be amazed if the banks and the finance companies don't follow suit.

It may be that the public, who seem to be fully behind this, will start to select in favour of those companies who are living wage employers.

– John Scally, Caritas Jersey

However, business leaders say this could have a range of consequences, including increasing costs for companies, lower hours for workers, possible job losses and higher costs to consumers.

It's an increase of 36%.

I think a lot of chamber members already pay well in excess of the living wage but we feel, certainly for the retail sector, for agriculture, for hospitality, it's a step too far and it's something that the businesses won't be able to support.

– Eliot Licoln, Jersey Chamber of Commerce

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