Government measures to increase the minimum wage will be fiercely resisted, business groups have told AccountingWEB.
The Low Pay Commission is reported to want to increase the minimum wage (currently 4.85 per hour) to 5.05 in October, and 5.30 in 2006.
A spokesman for the Federation of Small Business (FSB) told AccountingWEB that the FSB believed the wage hike to be engineered to win votes, and that timing of the announcement, so close to the general election, was suspect.
David Bishop said, "We're concerned that the minimum wage has rised 35% over 5 years and believe that it should be adjusted in accordance with economic conditions. We suspect that government is trying to crank it up to 5 per hour by the election."
While stressing that the FSB supported a minimum wage in principle, the curren...