Isle of Man businesses revolt against minimum wage hike with bold new plan
Business owners on the Isle of Man have expressed their frustration with the government's planned minimum wage increase, leading to the formation of the Local Economy Forum. Dozens of business owners attended a heated meeting, with only a handful of Manx Keys Members (MHKs) present, including Treasury Minister Dr Alex Allinson who defended the policy.
The newly established Local Economy Forum was launched to highlight the 'destructive impact' of the minimum wage rise on the island's private sector. Forum chairman Klaus Wohlrabe presented an alternative plan involving a slightly lower gross hourly rate of £12.70 combined with a targeted tax credit. Many businesses are already preparing for redundancies and operational cutbacks in anticipation of the April increase. According to the forum's figures, its proposal would raise a minimum wage worker's take-home pay to £22,993, compared to £22,621 under the current plan. The forum is open to all Manx businesses and aims to engage constructively with the government to find an alternative to the increase. It is calling for the Isle of Man's minimum wage to be tied to the UK's National Living Wage to avoid 'volatility' caused by the island's 'larger public sector premium'. The forum presented a detailed proposal that would improve take-home pay for lower-paid workers without crippling local employers.
The Local Economy Forum has presented an alternative plan to the government's minimum wage increase, aiming to balance the needs of both workers and employers. The forum is open to all Manx businesses and is actively seeking constructive engagement with the government to find a solution that works for everyone.
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