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TUC calls for £6.10 minimum wage

It its submission to the Low Pay Commission, the TUC (external website) has recommended that the national minimum wage from October 2009 should be at least £6.10 an hour, and says it should be increased to more than £6.50 from October 2010.

The TUC has also argued that the adult rate of the national minimum wage (NMW) should apply to workers from the age of 21.
TUC general secretary Brendan Barber said: "The minimum wage has never had any detrimental effect on the UK economy. In the current downturn there is a danger that the Low Pay Commission might be too cautious in setting the new NMW rate".

The TUC argues that the Low Pay Commission's next increases are likely to apply to a period of economic growth, and says that further increases to the adult rate of the minimum wage for 2009 and 2010 are "essential".

Responding to the TUC's call for a rise in the minimum wage to £6.10 next October, the CBI's deputy director-general John Cridland said: "Rises in the minimum wage make it more expensive to employ people. Doing this while unemployment is rising could have negative consequences for all concerned. We need to be very careful in the current climate to ensure that well-meaning calls for substantial rises in the minimum wage do not lead to increases in unemployment."

What do you think?
Do you support the previous increases in the national minimum wage, or have they had an adverse effect on your organisation? Do you agree with the TUC or the CBI when it comes to the next minimum wage increase?

IRS Pay and Benefits Bulletin is conducting a major piece of research on the national minimum wage and would like to request your assistance.

Completing this survey will mean you can:
•    benchmark your lowest pay rates against those in other organisations;
•    see how other organisations have handled progressive increases in the pay floor; and
•    feed into the debate about the next set of increases to the NMW.

So now is your chance to have your say - whether or not your organisation has been affected by the national minimum wage, we want to hear from you.

Taking part in this entirely confidential research (see here for more information) will ensure you receive a free copy of the research report as soon as it is available. If you have any questions about this survey, please contact me by email or on my direct line, 020 8652 2271.

Please click here to take part.

Rachel Sharp | |

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Comments (1)

Michael Carty:

By my calculations, the TUC's proposal equates to an increase of at least 6.5% on the current adult rate (£5.73 per hour). With some economic commentators now predicting that RPI inflation will be in negative territory by the latter half of 2009, it would be putting it extremely mildly to describe such an uprating to the national minimum wage as "inflation-busting"!
Nonetheless, it would be great to see it increased to such an extent, as this would make a real difference for lower-paid workers.

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