Convenience Retailers Tell Low Pay Commission about National Minimum Wage Impact


02 Dec 2008
 

An ACS delegation including independent retailers Jonathan James and Jonathan Clarke today met with the Low Pay Commission as part of the consultation on the National Minimum Wage rates for 2009/10 and 2010/11.

ACS Chief Executive James Lowman, who led the delegation, said: “Convenience stores have had to contend with inflation-busting increases in the National Minimum Wage as well as coping with rising utility costs, bank charges and business rates, as well as other employment law changes that have brought costs and administrative burdens. With the country facing uncertain economic conditions, and with the Government tightly controlling public sector pay increases, now is not the time for further increases that would damage our sector.

“Businesses are dealing with these extra costs through cutting back on staffing overtime, reducing pay increases and working extra hours themselves. Many businesses that in the past prided themselves on paying above the minimum wage are now unable to. Any significant minimum wage increase could lead to further cut backs on staff numbers and hours, as well as making it harder for retailers to invest in their businesses.”

ACS called on the Low Pay Commission to listen to Chancellor Alistair Darling’s comments earlier this year when he said: "Pay awards in both the private and public sector have to be consistent with our inflation target, which is 2.0 per cent." ACS has made the case that if the Chancellor believes that big business and the public sector should be receiving pay rises of 2% then this should be reflected in the minimum wage.