Just two weeks after the October 2008 national minimum wage increases came into effect, attention is already turning to the October 2009 increase. And discussions surrounding the 2009 increase could once more become heated.
The last two years of "cautious" increases (subscription required) in 2007 and 2008 have been accepted with a minimum of fuss by employers and unions.
But the present economic context of stagnating growth and elevated inflation is likely to result in divergent priorities when it comes to deciding the level of the October 2009 uprating, which the Low Pay Commission is scheduled to announce in the Spring.
The British Retail Consortium's (BRC) October 2008 submission (PDF format, 186K) (external website) to the Low Pay Commission on the 2009 national minimum wage increase points to the tough trading conditions currently affecting the sector. Consequently, the BRC suggests that:
[F]uture increases should fall on the lower side of average earnings. For 2009 we believe this means an increase around 3%.
In contrast, a spokesman for shopworkers' union Usdaw interviewed for our recent overview of retail sector reward trends (subscription required) said that the union would push for the national minimum wage to be increased to more than £6 per hour in October 2009. This represents, by my calculations, an increase of at least 4.7% to the current adult statutory pay floor (subscription required) of £5.73 per hour.
- Does your organisation carry out an annual pay review in October? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
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Comments (2)
We need to do some zero-sum budgeting and look at our value proposition - to customers and employees.
I was served by a 16 year old at ten o'clock one night. He earned 3.40 an hour. That is as immoral as selling a mortgage to someone who can't pay it back.
This call my go beyond your purview.
I am interested in the wage curve. What system is typically used to describe the progression of wages in firms/industries? Assuming an X/Y graph with pay on the Y axis, how are levels on the X axis defined and what is the typical increase from level to level (by industry)?
Posted by Anonymous | October 15, 2008 7:57 AM
Posted on October 15, 2008 07:57
It should be set at least £6 from £2009 - if it increases again by 21p it will only be £5.94 which is pathetic, I think at least £6 - £6.10
Posted by Anonymous | November 14, 2008 10:52 PM
Posted on November 14, 2008 22:52