Above inflation rises in Minimum Wage can’t continue, say independent retailers
The Government has announced recently that the adult minimum wage will rise by nearly 4% from £5.52 to £5.73 from October 2008. The rate for 18-21 year olds will also increase from £4.60 to £4.77, while the 16-17 year old rate will rise from £3.40 to £3.53.
Immediately following the announcement Association of Convenience Stores (ACS) chief executive James Lowman said: “To expect businesses to deal with these above inflation increases year on year is unacceptable.
“We support the principle of a minimum level below which wages should not fall, but the continual increases of this level are not sustainable or fair to businesses.
“This is particularly true in a year when the Government has received so much criticism from many different professions for their own low public sector wage increases. Teachers pay will increase by 2.45%, and police and nurses’ pay will increase below the 2.2% inflation rate.
“If the majority of workers in the country are receiving inflationary rises of around the 2% mark then why should small businesses such as convenience stores that already have to deal with the burden of increasing regulation have to foot the bill?
“Why are we expected to afford pay increases greater than those the Government is prepared to pay itself?
“We have given evidence to the Low Pay Commission face-to-face and in writing. While we believe this has helped to moderate the increase to a lower level than in some previous years, we remain disappointed that the national minimum wage continues to rise at this rate.”
