Local Shops Welcome Small Business Focus in Minimum Wage Review


21 Jun 2010
 

ACS (the Association of Convenience Stores) has welcomed Government’s announcement that the Low Pay Commission will consider the specific impact of the National Minimum Wage (NMW) on small firms.

ACS has argued for over a decade that above inflation increases of NMW have affected local shops viability and have affected employment, investment and profitability.

ACS Chief Executive James Lowman said: “While local shops support the minimum wage, and strive to pay above this rate, it has become increasingly difficult to maintain staffing levels with the year on year above inflation increases.”

“It is a good step forward for the Government to acknowledge the impact of the NMW on small firms in particular. We will continue to engage with the Low Pay Commission and present evidence from our members.

"We had asked the Government to review this October's NMW increases which comes at an extremely difficult time for retailers. It is disappointing that this additional cost will hit retailers and inevitably undermine employment in our sector.”

ACS submits oral and written evidence to the Low Pay Commission each year. The above inflation increase of NMW since its introduction in 1999 has resulted in skewed pay structures and the inability of local shops to reinvest in their staff and businesses.

Contacts:

Shane Brennan, Public Affairs Director
01252 533009 / 07921 372978

Chris Noice, Communications Assistant
01252 533013

Notes to Editors:

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. The Government also announced that they would implement the recommendations of the Low Pay Commission under previous administrations. The new rates, which will come into effect on 1 October 2010 will be:

  • £5.93 per hour for low paid workers aged 21 and over, increased from £5.80;
  • £4.92 per hour for 18-20 year olds, increased from £4.83; and
  • £3.64 per hour for 16-17 year olds, increased from £3.57.