Anti age-discrimination laws will not apply to minimum wage rates

In April the new minimum wage rates were approved.

The baseline for people aged 25 and over increased to £7.50 per hour, while a new category was created for those aged 21 to 24, at £7.20.

Until now, the same minimum rate applied to everyone aged 21 and over.

The minimum for 18- to 20-year-olds is £6.85 and those aged 16 and 17 have a minimum of £5.70 an hour. The new rates take effect in June.

Later this year the Equality Bill will become law. It is designed to combat discrimination on many grounds, including age.

However, Economic Development Minister Laurence Skelly MHK confirmed that the provisions of the bill will not apply on wage rates.

’The Equality Bill specifically exempts paying younger workers a lower minimum wage rate from the age discrimination,’ he said.

The minister was called on to explain to Tynwald why 21- to 24-year-olds were being put on a lower rate than those older.

He admitted it was a ’difficult balancing act’ to set the rates. He said he recognised the argument that younger workers could be doing the same work as older colleagues so should be on the same pay.

But, he added: ’That has been set against the argument that younger workers may be less experienced than colleagues and may not have the same responsibilities as older workers.

’There has been concern in the UK that the £7.50 rate will have a negative effect on some businesses. As it is a new rate and there is limited evidence as to what effect it will have on the Manx economy, we wish to be cautious in its introduction.’

However, he confirmed he had asked the minimum wage committee to review the rates for younger workers.

The issue was raised by David Ashford (Douglas North), who questioned the argument over experience.

’Even if you had someone who went all the way through university, they could still potentially have four years’ job experience in that role and actually be paid less than someone who reaches the age of 25,’ he argued. ’Does the minister really believe that is fair?’

Treasury member Bill Shimmins (Middle) asked Mr Skelly if he agreed the minimum wage needed to increase further to ’drive social and economic benefits for the island’.

The minister replied: ’Yes - only with the consent of industry.’