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Firms urge freeze on minimum wage | Firms urge freeze on minimum wage |
(10 minutes later) | |
Business leaders have called for the national minimum wage to be left at the current levels in 2009 amid the economic downturn. | Business leaders have called for the national minimum wage to be left at the current levels in 2009 amid the economic downturn. |
The British Chambers of Commerce (BCC) said it believed the minimum wage should not be increased until economic situations had significantly improved. | The British Chambers of Commerce (BCC) said it believed the minimum wage should not be increased until economic situations had significantly improved. |
BCC said that an increase similar to the 2008 rise would cost firms £300m. | BCC said that an increase similar to the 2008 rise would cost firms £300m. |
The minimum wage for employees over 21 increased by 3.8% in October to £5.73 per hour. | The minimum wage for employees over 21 increased by 3.8% in October to £5.73 per hour. |
It is £4.77 for workers aged between 18-21 and £3.53 for staff aged 16-17. | It is £4.77 for workers aged between 18-21 and £3.53 for staff aged 16-17. |
A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment David Frost, British Chambers of Commerce Minimum wage goes up to £5.73 | A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment David Frost, British Chambers of Commerce Minimum wage goes up to £5.73 |
However, critics call for the minimum wage to be increased, saying that minimum wage earners find it difficult to get by and have to take a second job or work overtime just to afford to live. | |
But BCC director general David Frost said: "We're not opposed to the minimum wage going up when employment is high and the economy is doing well, but when jobs are being lost daily and a recession is in full swing, it makes no sense to increase it." | |
"Most businesses are prioritising survival at the moment. A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment." | "Most businesses are prioritising survival at the moment. A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment." |
BCC has forecast that unemployment will reach three million by 2010. | BCC has forecast that unemployment will reach three million by 2010. |
Mr Frost also said: "First of all, employers talked of pay freezes, but in the last two weeks directors have started talking to me about reducing pay next year." | Mr Frost also said: "First of all, employers talked of pay freezes, but in the last two weeks directors have started talking to me about reducing pay next year." |
"This shows how bad things have got - nothing is now off limits. If this keeps more people in work, it's surely the better of two evils," he told the Sunday Times. | "This shows how bad things have got - nothing is now off limits. If this keeps more people in work, it's surely the better of two evils," he told the Sunday Times. |
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