Government advised to ignore "bleating" employers

Union leaders have told the Government to ignore the "bleatings" of business over another rise in the National Minimum Wage.

Brendan Barber, of the TUC, said: "With each minimum wage increase comes the predictable wave of protest from business saying that it cannot afford another rise. Every year miserly bosses say any wage boost will be at the expense of jobs, but every year their predictions of doom and gloom fail to materialise."

"When the Low Pay Commission reviews the minimum wage later in the year, I urge it not to listen too closely to the bleatings of UK business leaders. A further increase next year and payment of the adult rate to 18 year olds is easily affordable, and would have no adverse effect upon either the economy or on jobs."

But David Frost, of the British Chambers of Commerce, has sounded an alarm over further minimum wage rises.

He said: "Paying staff a fair wage is of course essential. However, the large increases seen in previous years have been well above earnings inflation. While businesses can just about tolerate the increase due to start on Saturday, the planned rise for next year to £5.35 is too risky."

"We have seen worsening economic climate and recent job losses in the distribution, hotels and restaurants sector."

"I urge the Government to reassess the planned rates and take action to give our firms the relief they need.

(30/09/05)

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