The DTI's confirmation that the National Minimum Wage (NMW) will rise to £5.35 in October 2006 has been greeted with disappointment by the British Retail Consortium.
“We are dismayed, but hardly surprised, that the Government has agreed to another above-inflation increase in the NMW ", says Kevin Hawkins, Director General, British Retail Consortium (BRC).
“Above-inflation wage increases could lead to around 35,000 jobs being lost and this increase will add £1.13 billion to the retail industry's costs, which are already increasing well above inflation”.
However, the BRC welcomed the decision by the Low Pay Commission (LPC) to slow future rates. "It is more encouraging to hear that the Low Pay Commission will no longer assume that the minimum wage will increase every year, as it has done in the past to comply with Government policy.”
“The LPC has clearly listened to and acted on the central theme of BRC representations, which is that future decisions on the NMW must be strongly influenced by the ability of businesses to absorb further cost increases.”
“The LPC has stated it wants the NMW to produce the maximum benefit for low-paid works that can be achieved without damaging business and employment prospects, but the trading climate for retailers remains extremely challenging. Any further discussions must include a review of the future role of the LPC and the end-game for the NMW.”
The Low Pay Commission (LPC) was established as a result of the National Minimum Wage Act 1998 to advise the Government about the National Minimum Wage.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
