ACS

The National Minimum Wage increases by 3.6% today. For workers aged 22 and over the minimum wage will increase from £5.52 to £5.73. The rate for 18-21 year olds will rise from £4.60 to £4.77, while 16 and 17 year olds will see an increase from £3.40 to £3.53 per hour. This rate of increase sees the minimum wage rise yet again at an above-target inflation rate and ACS is warning that this will put further strain puts on convenience store retailers, for whom wage costs make up one of the biggest expenditures for their businesses.

The rise comes as ACS (the Association of Convenience Stores) the campaigning voice of over 33,000 local shops, submits its response to the Low Pay Commission on the levels that the minimum wage should be set at for 2009/10 and 2010/11. ACS’ response has focused on the following areas;

• Over the past few years there have been numerous other employment costs. These include an extra eight days holiday, equivalent to a 3% pay rise per employee.

• Increasing staff wages and other costs have been hampering convenience stores’ ability to invest in their business. This is likely to get worse as the credit crunch has impacted heavily on the retail industry. Convenience stores are facing, increased energy and fuel costs, increased bank charges, higher delivery charges and in some cases reduced customer trade due to increased food prices.

• In response to economic down turn Chancellor Alistair Darling, has 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’ submission argues that the Low Pay Commission listens to these comments and moderate future increases.

ACS Chief Executive James Lowman said: “The Low Pay Commission has annually set the minimum wage way above target inflation. This trend is unsustainable for the convenience store sector, particularly independent retailers. We are calling for the Low Pay Commission to listen to the calls from the Chancellor and not place the minimum wage for the upcoming years above target inflation.

"This is a crucial time for the convenience store sector which has to cope with many monetary demands over the coming years with additional employment costs outside of wages as well as the effects of the credit crunch, and the Low Pay Commission should be mindful of this”

There are several other policy areas that have also been rolled out today that will affect convenience stores businesses including;

• A requirement for all tobacco products to carry graphic picture warnings to illustrate the devastating effects that tobacco can have on health.

• Further provisions of the Companies Act 2006 which improve company law and reduce burdens on companies.
• Removing rules that require physical copies of Employers' Liability Compulsory Insurance certificates to be displayed and retained for 40 years. Businesses will now be able to do this electronically.

For more information on these and other policy developments contact the ACS office on 01252 515001.