Minimum Wage Creating New Obstacles
[12 August 2009]
The rise in the UK national minimum wage may force many Scottish SMEs into liquidation, particularly those in the tourism and hospitality industry.The national minimum wage (NMW) will rise by 7p to £5.80 an hour from October, the government has announced.
The rate for 18 to 21-year-olds will increase by 6p to £4.83 and for 16 and 17-year-olds will go up by 4p to £3.57. Despite arguments from business groups that any increase should be deferred until the economy improves, the government decided to accept the recommendations of the Low Pay Commission.
Business leaders had recently called for the minimum wage to be left at the current levels in 2009 amid the economic downturn. Many were worried that the burden of extra costs at such a difficult time might be enough to put many out of business. Those in the hospitality industry where many staff are on the minimum wage are thought to be most vunerable to the increase.
John Wright, chairman of the Federation of Small Businesses, said: "Businesses should be free to negotiate pay levels with staff individually according to what is affordable during these tough times rather than keep up with a one size fits all pay rise."
Minimum Wage Creating New Obstacles was posted by Glasgow South Business Club.
To discuss any of its subject matter further please email gsbc@gswra.co.uk
To discuss any of its subject matter further please email gsbc@gswra.co.uk
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