2112 Posted October 25, 2021 Share Posted October 25, 2021 The UK Chancellor Rishi Sunak has authorised an increase in the National Living Wage (formerly minimum wage) from £8.91 per hour to £9.50. This will obviously have a knock on effect on employers on the island, as presently the minimum wage is £8.25. It does present an opportunity though for Government to portray the island as a high wage, high skilled economy which isn’t reliant on cheap foreign workers. It may hit the small cafes, restaurants and hotels (including bigger hotels), some may make people redundant and cut back, but after all we are supposed to be living in near full employment scenario - if you believe IOMG spin. 1 Quote Link to comment Share on other sites More sharing options...
HeliX Posted October 25, 2021 Share Posted October 25, 2021 You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on. 5 1 Quote Link to comment Share on other sites More sharing options...
2112 Posted October 25, 2021 Author Share Posted October 25, 2021 24 minutes ago, HeliX said: You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on. Well the Minimum Wage is decided by a Government mandated commission. They set the rates and it’s usually rubber stamped. I would guess a lot of lobbying by the usual vested interest groups will ensure that it’s kept as minimum as possible, rather than try and get out of being a low pay economy. If the rate rises it brings people into paying more tax and NI, so the island benefits. However, some businesses are failing anyway and rely on low minimum wage rates. If they fold, it’s sad but not the taxpayers problem. 2 Quote Link to comment Share on other sites More sharing options...
WTF Posted October 25, 2021 Share Posted October 25, 2021 odd how the minimum wage here is less than England considering the cost of living here is higher 6 Quote Link to comment Share on other sites More sharing options...
2112 Posted October 25, 2021 Author Share Posted October 25, 2021 4 minutes ago, WTF said: odd how the minimum wage here is less than England considering the cost of living here is higher It is. It’s another Manx Muddle, awaiting a typical Manx Solution to a Manx Problem. The minimum wage has been allowed to stagnant, and its rate quite possibly been like a can, kicked down the road, with nobody wanting to address the issue. Alf certainly doesn’t want to discuss it and I doubt Ashy would either. When you have a huge unemployment problem, some work is better than no work. That’s the opposite here with the latest unemployment figures showing a reduction, but trying to get staff and new people to settle here is impossible. Cost of living through the roof and minimum wage is more in the UK, for those over 25. Here its 23 and over £8.25 per hour. I can see why people are packing up, there is no attraction to living here, unless the island ups it’s game. It’s too interested in climate change conferences and tynpotwald general debates instead of doing now and worrying later. Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted October 25, 2021 Share Posted October 25, 2021 Douglas Chamber of Commerce moves in mysterious ways..... Quote Link to comment Share on other sites More sharing options...
Peter Layman Posted October 25, 2021 Share Posted October 25, 2021 2 hours ago, HeliX said: You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on. Then there's management who also work off minimum wage. Small businesses aren't exactly raking it in at the moment 1 Quote Link to comment Share on other sites More sharing options...
Max Power Posted October 25, 2021 Share Posted October 25, 2021 If people earn enough, they spend it in the economy, we have gradually seen our lower paid fall off the scale. Crazy contracts which leave people unable to support a family or buy a house are not clever in the long term. We end up paying benefits to support business owners who refuse to pay their staff a living wage or offer decent terms and conditions! 6 1 Quote Link to comment Share on other sites More sharing options...
HeliX Posted October 25, 2021 Share Posted October 25, 2021 5 minutes ago, offshoremanxman said: To be honest why would anyone take a pay cut to give someone else more money? Especially now when many businesses have been totally decimated by the pandemic? Government would be better giving lower earners tax or NI breaks instead of asking businesses that are already operating in the most challenging economy since WW2 to take on board more wages costs. If the job market is as good as everyone is claiming it is then the people who don’t pay a decent wage wont get staff. There really isn’t any real need for government to interfere in the labour market. Well, I did it because they deserved the money, I'm earning enough to spare it, and we didn't have the budget to cover the cost another way without raising prices - which I didn't want to do. CEO pay is up several hundred percent in the last few decades, and minimum & average wages have hardly moved. Someone needs to interfere in the labour market. 2 Quote Link to comment Share on other sites More sharing options...
Ramseyboi Posted October 25, 2021 Share Posted October 25, 2021 (edited) 16 minutes ago, Peter Layman said: Then there's management who also work off minimum wage. Small businesses aren't exactly raking it in at the moment Or less. Plenty of business owners paying their staff minimum wage and paying themselves absolutely nothing or even paying out on credit cards etc to keep their staff employed Edited October 25, 2021 by Ramseyboi 1 1 Quote Link to comment Share on other sites More sharing options...
Annoymouse Posted October 25, 2021 Share Posted October 25, 2021 I don’t think the minimum wage rate has changed since 2019 (correct me if I’m wrong please) so it’s not exactly a surprise to hear we have fell behind, I think it was slightly offset by us having a higher tax threshold but this increase will certainly change things somewhat! Any minimum wage worker would be absolutely stupid to stay here given our increased cost of living, even more so with the gas price hike. 1 Quote Link to comment Share on other sites More sharing options...
HeliX Posted October 25, 2021 Share Posted October 25, 2021 Just now, offshoremanxman said: How convenient of you to have done so and in such highly prescribed circumstances. There really isn’t any need for government to interfere in the labour market. It’s changing anyway. If you pay bad wages people won’t work for you and there are plenty of other jobs people can get at the moment so it’s up to employers to decide what they need to do to maintain staff. That’s why hospitality is finding it so bad as the hours are crap and there are better jobs around to do on more money. Wasn't particularly convenient! People have been suggesting that the labour market can self-correct for decades, and wages have remained stagnant. What was the definition of insanity again? 1 1 Quote Link to comment Share on other sites More sharing options...
Max Power Posted October 25, 2021 Share Posted October 25, 2021 The Whitley Council is a disgrace, it is held up as some sort of 'expert' body to determine a fair wage when it has always been a tool to allow employers to fleece their employees! 2 Quote Link to comment Share on other sites More sharing options...
HeliX Posted October 25, 2021 Share Posted October 25, 2021 1 minute ago, offshoremanxman said: We are in a very different part of the cycle now. The market is correcting in many ways and there isn’t really any need for government to interfere. There is a pronounced labour shortage and the market will dictate the way forward. Those who don’t pay the going rate are struggling to keep staff. But many businesses are still struggling badly and can’t afford to pay increased rates anyway. It will be survival of the fittest on both sides. Well, things have almost never moved in favour of the employees before, and I doubt they will this time. But I certainly hope they do. Quote Link to comment Share on other sites More sharing options...
The Voice of Reason Posted October 25, 2021 Share Posted October 25, 2021 1 hour ago, Ramseyboi said: Or less. Plenty of business owners paying their staff minimum wage and paying themselves absolutely nothing or even paying out on credit cards etc to keep their staff employed In which case, and I don’t want to sound hard hearted, from the circumstances you have described it seems these businesses you allude to are not viable. The business owners would be best calling it a day before getting themselves into more debt, and hopefully their employees will find alternative employment paying more than the minimum wage, given the job market at the moment. 2 Quote Link to comment Share on other sites More sharing options...
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