date: 21 December 2005
embargo: For immediate release
Retail boost shows shops can afford minimum wage increase
Commenting on the CBI's distributive trades survey published today (Wednesday), TUC General Secretary Brendan Barber said:
'Today's figures show that despite predictions of doom and gloom, many of the household names on the high street are actually doing rather well.
'With sales up and more jobs created in retail over the past year, most shops and supermarkets are clearly enjoying somewhat of a resurgence.
'Yet many of the UK's larger retailers are lobbying furiously behind the scenes to try to limit any increase in the minimum wage next year. When it meets in January, the Low Pay Commission must dismiss the false claims from shop bosses that they cannot afford another rise and stick to the plan for a wage of £5.35 to come into force next October.'
NOTES TO EDITORS:
- The Low Pay Commission, which advises the Government on the level of the minimum wage, has recommended that the adult rate increase from £5.05 to £5.35 from 1 October 2006, and that the development rate for 18-21 year old workers should increase from £4.25 to £4.45. These recommendations are subject to confirmation in February 2006. It is expected that the LPC will also recommend an increase to the £3.00 rate for 16 and 17 year olds at that point.
- A report published by Incomes Data Services earlier this week showed that the minimum wage is having a positive effect on the lowest pay rates of UK companies, in that employers are having to make sure their starter rates are the same or above that of the legal minimum. It also showed that rises in the wage had not been at the expense of low paid jobs. (IDS Pay Report 943).
Retail sales figures for November indicate a continuation of the pick up seen over recent months - (ONS 15 Dec, see link below) compared with the same period a year ago, sales volumes in the 3 months to November 2005 were up 1.3% http://www.statistics.gov.uk/cci/nugget.asp?id=256
- All TUC press releases can be found at www.tuc.org.uk
Contacts:
Media enquiries: Liz Chinchen T: 020 7467 1248; M: 07778 158175; E: media@tuc.org.uk
Press release (400 words) issued 21 Dec 2005
