ACS Argues Case for Affordable Minimum Wage
10 Nov 2006
The Association of Convenience Stores (ACS) has met with the Low Pay Commission in a formal hearing as part of their consultation process for reviewing the National Minimum Wage (NMW) in 2007 and 2008.
ACS Chief Executive James Lowman told the Commissioners that any further increases need to be affordable for the convenience store sector. He said: “The cumulative effect of employers’ legislation, such as the upcoming increase in paid holiday allowance and the minimum wage, make up just a few examples. They are a significant burden on employers and the Low Pay Commission must take full account of this burden.”
Early next year the Low Pay Commission is expected to make its decision on the minimum wage rate for October 2007 and to indicate its views on the October 2008 rate. In a constructive hearing with the Commission, ACS built on its written evidence, submitted in September, by emphasising the impact of the National Minimum Wage on the convenience sector.
Mr Lowman continued: “The recent increases in the minimum wage of above-average earnings each year - up to 8% in some cases - are not sustainable for the convenience sector. Any future increases need to be sensible and reflect the ability of businesses in our sector to pay staff.
“In setting the minimum wage rate, we believe the Low Pay Commission must be mindful of the fundamental purpose of the National Minimum Wage – to establish a floor below which wages must not fall. We believe that objective has been achieved, and further increases will serve to put increased pressure on the convenience store sector. The impact on local shops with low margins is serious and further increases cannot be sustained in the long term.
“ACS will continue to work with the Commission to lead the sector’s response to issues on the minimum wage,” concluded Mr Lowman.
Contact: Michael Saxton
Grappa PR
020 7486 4448 / 07970 507554
Shane Brennan
ACS Public Affairs & Communications Manager
01252 515001 / 007921 372978
Rachel Lawson
ACS Communications Co-ordinator
01252 515001
ACS Chief Executive James Lowman told the Commissioners that any further increases need to be affordable for the convenience store sector. He said: “The cumulative effect of employers’ legislation, such as the upcoming increase in paid holiday allowance and the minimum wage, make up just a few examples. They are a significant burden on employers and the Low Pay Commission must take full account of this burden.”
Early next year the Low Pay Commission is expected to make its decision on the minimum wage rate for October 2007 and to indicate its views on the October 2008 rate. In a constructive hearing with the Commission, ACS built on its written evidence, submitted in September, by emphasising the impact of the National Minimum Wage on the convenience sector.
Mr Lowman continued: “The recent increases in the minimum wage of above-average earnings each year - up to 8% in some cases - are not sustainable for the convenience sector. Any future increases need to be sensible and reflect the ability of businesses in our sector to pay staff.
“In setting the minimum wage rate, we believe the Low Pay Commission must be mindful of the fundamental purpose of the National Minimum Wage – to establish a floor below which wages must not fall. We believe that objective has been achieved, and further increases will serve to put increased pressure on the convenience store sector. The impact on local shops with low margins is serious and further increases cannot be sustained in the long term.
“ACS will continue to work with the Commission to lead the sector’s response to issues on the minimum wage,” concluded Mr Lowman.
Contact: Michael Saxton
Grappa PR
020 7486 4448 / 07970 507554
Shane Brennan
ACS Public Affairs & Communications Manager
01252 515001 / 007921 372978
Rachel Lawson
ACS Communications Co-ordinator
01252 515001