Minimum wage rise 'is cautious'
May 13 2009
The 7p rise in the national minimum wage reflects the fact that many firms are struggling in the recessionary climate, claims the Confederation of British Industry (CBI).
According to the group, which is the only business representative organisation on the Low Pay Commission, the 'moderate' 1.2 per cent increase to £5.80 an hour is a sensible strategy which will balance protecting UK jobs with improving the lives of low-paid workers.
John Cridland, CBI deputy director general, adds: 'The inflation-busting rise some unions had called for would have hit firms hard and put many lower-paid workers on the dole.'
The Trades Union Congress (TUC) welcomes the fact that the national minimum wage was increased at last week's meeting, following its calls for the Low Pay Commission to ignore businesses' suggestions for a freeze.
However, TUC general secretary Brendan Barber points out that the rise is 'slender' and recommends that the commission awards a more generous increase next year, when the economy is expected to be in recovery.
The move was also lauded as the 'right decision' by the British Retail Consortium, which had previously recommended this year's increase was not more than 1.5 per cent.
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