IOM Chamber of Commerce criticises wage policies

Report says public sector workers earn nearly £200 a week more on average than those in private sector

The Isle of Man Chamber of Commerce has criticised the way wages are set here.

It's after figures from government revealed those working in the public sector are paid significantly more than those in the private sector on average.

According to the Isle of Man Earnings Survey Report, government employees earned around £200 a week more last year, which equates to around £10,000 a year.

In a written response to a Tynwald question, the Cabinet Office says the response includes those employed in the education, medical and health sectors, local authority employees and members of the House of Keys and the Legislative Council.

However, it says a direct comparison between the earnings may not be useful, because of what it describes as a 'greater degree of diversity' in the work undertaken.

For example, it says many of the lowest paid jobs like bar and restaurant staff, hairdressers and retail workers exist mainly in the private sector.

But the Chamber of Commerce says the current methodologies for wage-setting are producing 'distorted outcomes that risk penalising the very workers and businesses they're meant to protect'.

It says its members, and the wider business community, also have concerns about the persistent and widening gap between public and private sector pay.

The chamber believes, if these issues aren't addressed, the credibility of the wage policy will be undermined, private sector competitiveness will be damaged and there'll be deepened inequality between sectors.

It's now calling on Tynwald and government to act 'decisively' to restore balance and fairness, not just in how people are paid, but how their contribution to the Island's economy is measured and valued.