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Calls made for minimum wage to be controlled

Practice group: Employment law


22 August 2008

Ahead of chancellor Alistair Darling's pre-Budget report, the British Retail Consortium (BRC) has called on the government to control increases in the minimum wage.

In its Six Strategies for Success report, the BRC urged the government to encourage employment but to exercise restraint when announcing increases to the basic wage.

The organisation suggested the national minimum wage should never increase beyond rises in average earnings and called for the Low Pay Commission (LPC) to take trading conditions into consideration.

Stephen Roberts, director general of the BRC, said retail accounts for more than ten per cent of employment in the UK and is "at the heart" of the government's efforts to improve rates of employment.

"Retailers support the national minimum wage but future rises should not exceed average earnings increases," he stated.

Earlier in the month, the Trades Union Congress called for the minimum wage to be extended to include apprentices.

The organisation argued in its submission to the LPC that such a move would help to tackle the problem of "unscrupulous bosses".

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