CBI wants minimum wage freeze
Britain’s minimum wage should be frozen at £4.85 an hour until 2006 according to business leaders.
The CBI will tell the Low Pay Commission (LPC) – an independent advisory body on the minimum wage – that hard-pressed businesses need a “pause year” to draw breath from last month’s above inflation rise.
Last month, the minimum wage for over-21s was increased by 35p.
But the TUC wants the minimum wage to rise to £5.35 next year, and £6 in 2006 – a 24 per cent rise on the current level.
The TUC said the CBI submission was “mean spirited”.
Brendan Barber, general secretary of the TUC, said: “It is disappointing to see Britain’s bosses put such a mean-spirited submission to the Low Pay Commission. There is no reason why Britain’s lowest paid should see their pay frozen for the next year.
“The country can afford to give them a proper rise.”
The CBI said it would not stand in the way of a small rise beyond £5 an hour, but called for a little leeway for businesses to respond to the seven per cent hike last month.
Digby Jones, director general of the CBI, warned further increases to the minimum wage would hit sectors such as hospitality and agriculture.
“The country’s hard-earned stability will be threatened if we see wage inflation across the board caused by large increases at the lower end,” Mr Jones said.
Mr Jones said the TUC’s demands were “irresponsible.”
