Usdaw says £10 minimum wage needed – NFRN warns the move will lead to job losses
USDAW has given evidence to the low pay commission – calling on a £10 minimum wage for retail workers. General secretary Paddy Lillis said the “best way” to thank key workers is to ensure “fairness at work” – calling for a new deal for low paid employees that includes a minimum wage of at least £10 per hour, more secure contracts and an end to youth pay.
The suggestions are part of LPC’s annual call for evidence and responses will help “shape the recommendations” they will make to the government this autumn on the 2022 minimum wage rates.
Lillis said that workers in retail, distribution and many other low-paid industries have shown just how “vital” they are to keeping the UK economy going “during a time of extreme pressure”.
“The National Living Wage should be increased at least in line with the planned target to reach 66% of median earnings by 2024. Usdaw continues to campaign for an immediate National Living Wage of at least £10 per hour for all workers, regardless of age, so youth rates are abolished as soon as possible” he said.
“As the country tries to recover from the pandemic, we need a new deal for workers that includes a minimum wage of at least £10 per hour, more secure contracts and an end to rip-off youth pay. The best way to thank key workers is to ensure fairness at work.”
NFRN warns that increasing the national minimum wage will lead to job losses
The Federation of Independent retailers (NFRN) says increasing the national minimum wage will seriously harm smaller businesses looking to recover from financial difficulties caused by the Covid-19 pandemic.
In its response to a consultation with the Low Pay Commission, the NFRN said although news and convenience retail were classified as “essential” and permitted to remain open, the closure of non-essential stores had a devastating impact on its members in high street locations and transport hubs, as footfall disappeared overnight.
At its peak, around 8% of the NFRN’s membership was forced to close due to lack of customers, staff shortages or concern about the risks of infection. Some of these stores have still not reopened.
NFRN National President Stuart Reddish said: “Our members believe that those who work in retail should be paid a fair wage for their work. However, recent increases in wage rates have cost jobs in the retail sector, as businesses have struggled to absorb the increases in their wage bill.
“The result has been business owners, who are not subject to the minimum wage, have sought to cut costs by taking on additional hours themselves. Many now effectively pay themselves less an hour than they pay their staff.
“The NFRN therefore calls for the Commission to give retail a chance to recover from the pandemic by limiting any recommendation of a rise in the national living wage to not more than the increase in the rate of inflation.”
Neighbourhood Retailer
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