As the new wage rises by 30 pence to 4.50 from 1st October, Adecco, one of the UKís largest employers across multiple sectors, has urged a reality check on the impact that the minimum wage has had on workers, rather than businesses.
Much of the focus of debate tends to be on the impact of the minimum wage on businesses and the competitiveness of UK PLC but as a company that places 35,000 people in work every day in the UK, we feel that attention should turn to what impact the minimum wage has had on the workers themselves and on job creation, said Richard Macmillan, UK MD of Adecco UK
The Low Pay Commission have proved that there has been no adverse effect on British industry as a result but Iíd say that there has been no positive effect on the worker either. An hourly rate of 4.50 provides an annual income of 8,190 assuming a 35 hour week - which we need to remember is not an awful lot of money. While UK business generally may be feeling that it has got away lightly, we think that some businesses confuse meeting minimum wage targets as a sign that they are responsible employers. The fact is that 8,000 per annum with no other benefits does not equal a happy workforce. And just as importantly, has the minimum wage had any influence on the number of jobs created?
Minimum wage
forget businesses, what about the workers?