Tenth anniversary of the minimum wage proves critics wrong

Critics of the national minimum wage (NMW) who warned its introduction would destroy jobs have been proved wrong says the TUC, as the minimum wage celebrates its tenth anniversary today (Wednesday).

When the Government introduced the NMW in 1999 the business lobby warned that it would be a disaster and that thousands of jobs would be lost. However, before the current recession hit home, employment had grown by about two million jobs in the period since the introduction of the NMW, says the TUC.

The adult minimum wage was originally set at £3.60 per hour. The current figure is £5.73, which is an increase of almost 60 per cent in less than a decade. Over the same period the Retail Price Index (RPI) has risen by 33 per cent and average earnings 35 per cent, so the NMW has delivered a real increase in the spending power and living standards of the low paid in the Midlands.

Each time the minimum wage has been increased, it has led to more than a million vulnerable workers getting a pay rise. Women workers, workers from ethnic minority backgrounds, those with disabilities, and younger and older workers are among the groups who have benefitted most in the midlands, says the TUC.

The minimum wage has also had a positive impact on closing the gender pay gap. The NMW benefits five per cent of employees, and the gender pay gap for this group of workers has narrowed from 10.5 per cent in 1998 to 3.8 per cent in 2007. The gender pay gap for all employers is currently 17.1 per cent.

However the TUC believes there is still more to do. The TUC wants to see the NMW adult rate paid to 18 year olds – it is currently only paid from the age of 22 – and the exemption from the NMW for apprentices to be replaced with a special rate in order to protect vulnerable young people.

Midlands TUC Regional Secretary Roger McKenzie said: “The minimum wage is one of this Government’s greatest successes.

“It is an integral part of building a fairer Britain, and its success has shown that despite scare-mongering from business, the midlands economy can easily cope with sensible labour market regulation. Indeed, our current economic woes seem to be caused by too little regulation rather than too much.

“If we want to build a strong UK economy that is fair to all its citizens then we must continue to develop the minimum wage during the coming decade.

“Employers are wrong to call for a minimum wage freeze this year. Raising the minimum wage has already helped hundreds of thousands of families without causing significant job losses.

“The recession was caused by very highly paid people damaging the nation’s financial system. It would not be fair to make the low paid suffer a wage freeze while city bankers still get bonuses, and when there is no economic necessity to do so.”

Midlands TUC welcomes government drive on minimum wage in Birmingham

The Midlands TUC has welcomed a government initiative to raise awareness of the National Minimum Wage in Birmingham. The visit will take place on Thursday 22nd and Friday 23rd January when a team of National Minimum Wage Ambassadors will set out their stall in Edgbaston Street, between the Bull Ring and the Rag Market.

Midlands TUC Regional Secretary Roger McKenzie said: “We are glad to see that the Government is taking a proactive stance on the minimum wage and is bringing the message home in Birmingham. Trade unions are absolutely determined to ensure that all workers can get their rights and that is particularly so at a time when many workers are feeling vulnerable at work. There must be no hiding place for rogue employers who cheat their workers and we are pleased that new penalties are to be introduced for employers who flout the law”.

Royal Assent for the Employment Act has paved the way for new penalties to come into force in April, as part of government’s crackdown on those who try to exploit workers. The changes introduce unlimited fines for non-compliance for the most serious cases, removing the maximum limit of £5,000.

The roadshow will have facilities to report cases of abuse, while fully trained staff will be on the spot to give expert face-to-face advice. Visitors to the events will also hear local people tell their stories of underpayment and the help they received tackling wage abuse.

More than one million people across the UK benefit from annual rises in the National Minimum Wage. On October 1st, rates rose to £5.73 for workers aged 22 and over; £4.77 for 18-21 year olds and £3.53 for those aged 16 and 17.

Anyone worried they may not be getting the National Minimum Wage can call the NMW helpline on 0845 6000 678. Support is offered in more than 100 languages and callers can remain anonymous if they wish.

Midlands TUC welcomes government drive on minimum wage in Nottingham

The Midlands TUC has welcomed a government initiative to raise awareness of the National Minimum Wage in Nottingham. The visit will take place on Thursday 22nd and Friday 23rd January when a team of National Minimum Wage Ambassadors will set out their stall in the Old Market Square.

Midlands TUC Regional Secretary Roger McKenzie said: “We are glad to see that the Government is taking a proactive stance on the minimum wage and is bringing the message home in Nottingham. Trade unions are absolutely determined to ensure that all workers can get their rights and that is particularly so at a time when many workers are feeling vulnerable at work. There must be no hiding place for rogue employers who cheat their workers and we are pleased that new penalties are to be introduced for employers who flout the law”.

Royal Assent for the Employment Act has paved the way for new penalties to come into force in April, as part of government’s crackdown on those who try to exploit workers. The changes introduce unlimited fines for non-compliance for the most serious cases, removing the maximum limit of £5,000.

The roadshow will have facilities to report cases of abuse, while fully trained staff will be on the spot to give expert face-to-face advice. Visitors to the events will also hear local people tell their stories of underpayment and the help they received tackling wage abuse.

More than one million people across the UK benefit from annual rises in the National Minimum Wage. On October 1st, rates rose to £5.73 for workers aged 22 and over; £4.77 for 18-21 year olds and £3.53 for those aged 16 and 17.

Anyone worried they may not be getting the National Minimum Wage can call the NMW helpline on 0845 6000 678. Support is offered in more than 100 languages and callers can remain anonymous if they wish.

Midlands TUC welcomes government drive on minimum wage in Coventry

The Midlands TUC has welcomed a government initiative to raise awareness of the National Minimum Wage in Coventry. The visit will take place on Wednesday 21st January when a team of National Minimum Wage Ambassadors will set out their stall by the Godiva Statue on Bank Street.

Midlands TUC Regional Secretary Roger McKenzie said: “We are glad to see that the Government is taking a proactive stance on the minimum wage and is bringing the message home in Coventry. Trade unions are absolutely determined to ensure that all workers can get their rights and that is particularly so at a time when many workers are feeling vulnerable at work. There must be no hiding place for rogue employers who cheat their workers and we are pleased that new penalties are to be introduced for employers who flout the law”.

Royal Assent for the Employment Act has paved the way for new penalties to come into force in April, as part of government’s crackdown on those who try to exploit workers. The changes introduce unlimited fines for non-compliance for the most serious cases, removing the maximum limit of £5,000.

The roadshows will have facilities to report cases of abuse, while fully trained staff will be on the spot to give expert face-to-face advice. Visitors to the events will also hear local people tell their stories of underpayment and the help they received tackling wage abuse.

More than one million people across the UK benefit from annual rises in the National Minimum Wage. On October 1st, rates rose to £5.73 for workers aged 22 and over; £4.77 for 18-21 year olds and £3.53 for those aged 16 and 17.

Anyone worried they may not be getting the National Minimum Wage can call the NMW helpline on 0845 6000 678. Support is offered in more than 100 languages and callers can remain anonymous if they wish.