National Minimum Wage
September 28th, 2008 . by KarldThe increase in the national minimum wage from next week impacts business start-ups by further raising their base costs of hiring employees. The timing of the rise from £5.52 to £5.73 for each hour worked could not have come at a worst time for people starting a business.
With credit terms squeezed from all areas, from banks to even trade creditors as some have reported, this further drain on cash and liquidity in general will almost certainly be the back breaking straw for some small businesses.
The main instigator of the minimum wage increase is the Transport and General Worker Union putting pressure of the Government to not forget its roots in the working classes.
The weakened Labour Party conceded on several fronts and for the first time granted an increase which set the minimum wage growth rates above that of the average salary climb of since its introduction in 1999.
It may well turn out that the people the increase is supposed to help end up blaming a Government which they will hold responsible for losing them their jobs.
I started my business some over twelve years ago and even the national minimum wage is supposed by be anti-employer, I have always supported the principles which it stood for.
I believe that everyone, whether employer or employee is entitled to a certain level of remuneration for their work. It was largely unscrupulous business owners who took advantage of their workforce and who did not share the profits which led to the introduction of the NMW.
I must agree with the comments above about the timing though. Just as employers sometimes try to squeeze every last once of effort out of their employees regardless of circumstance, so do trade unions make their demands without any thought for the current economic situation.
This is yet another example of the bulling tactics exercised by the TGWU in negotiating for things which will ultimately hurt the people they are supposed to represent.
Another nationalised financial institution, trade union successes, is this country going backwards?
Many people including myself wonder to what extent setting a national minimum wage actually helps the people who would benefit from it the most. The group referred to include illegal workers and those in remote areas of the UK where the watchful eye of Government is non existence.
Stories of foreign nationals working in UK hotels and being treated in a manner which many thought was long banished from the UK shores still suggest that the safety net of having a nationally mandated minimum wage has not enhanced the lives of every low paid employee.
I would suggest that if the Government and the Trade Unions are serious about rooting out poverty and exploitation of workers then more policing of smaller hotels, restaurants and other establishments which are prone to low wages is needed.
In addition, more promotion of the national minimums could be done on a European and global scale. After all the foundations of the principle are built on providing everyone with a fair deal and it is slightly hypocritical to enjoy these in the UK whilst ignoring the plight of millions of others in neighbouring countries and those further afield.