The McCannics e-survey, month just ended May 1998

Comments

- on the Minimum Wage


"The most important thing about a minimum wage is having one. Setting the initial rate too high will destroy the scheme. A minimum wage acceptable to most employers will give the legislation the support it needs to become established and successful"

"I believe that a rate that people can realistically live off is appropriate, and I do not believe that anyone can survive without cost to other agencies at 3.60 per hour."

"Who will want to employ school leavers, if they have to pay the present lower rate proposed. This will increase unemployment for the under 21 age group. How many small country shops will survive if this becomes law."

"The level is set too high for unskilled workers - which would push up the cost of skilled workers as employers maintain a differential. Alternatively it will not be possible to increase the wages and employment of skilled workers - so they will lose out and businesses will suffer by having to employ useless staff. £3.00 per hour would have been more realistic."

"The minimum wage within the UK market is a brilliant idea. This is because it jacks up the minimum wages payable to all serfs at the same time. THIS means that for example Cleaning Co. A can no longer under-cut cleaning co. B by abusing their staff with ever lower wages to get a contract out of hotel X. All cleaning cos. will operate on same wage levels and will have to get contracts by operating more efficiently etc. Unfortunately on the international level things are not quite so easy as we have to pay less than our competitors to keep production costs down. e.g. lower than the [other European countries]. At the moment it appears they get loads more than our serfs anyway! I find it difficult to argue with even £5 an hour - especially as I earn loads more than that!!"

"It will have no direct effect on our business; but from the point of view of a social research business we have witnessed the increasing problems due to the depression of incomes amongst the bottom 10-20%. We feel it is a very positive move. It should have a positive effect both on the households now in receipt of very low pay and on the economy as a whole. There has been a problem of under-consumption at the bottom end of most markets. We could even experience some Giffin effects as demand increases for basic low cost goods."

"Governments should not set wage levels, I think we could regret this interference from government"

"My personal view is that if an employer cannot afford to pay at least £4 per hour then they should a) stick to working alone or b) if a) is not possible they do not really have a viable business"

"There should not be one"

"I think it should apply to 16 and 17 year olds too and they shouldn't be put in a position where they could be exploited. "

"It will not work. Whenever governments try to interfere with market forces the effect is the same as King Canute's unsuccessful attempts to turn back the tide."

"This makes no reference to the cost of living, regional variations and type of work undertaken i.e. unsocial hours, dangerous conditions. I would consider it imperative that the Government consider the minimum wage in line with other EC countries and at least acknowledge the cost of living indices within the calculations so that the low paid are kept in line with inflation and there is less dependency to top up their incomes from state benefit - particularly when considering whether these employers ability to pay more salary"

"will be a major factor as time passes to above average wage increases for all employees and contribute to a rising inflation rate"

"Any higher could be disastrous"

"Any higher would have a very bad effect"

"Minimum wages are wrong in principle"

"The long term effects of the minimum wage will be devastating to a number of industries including tourism, catering and manufacturing. Slowly but surely we are killing all forms of industry and producing a dependent and lazy work force."

"A minimum wage will help stop unfair competition where business use sweat shop labour to undercut their competitors."


Note: Some of these comments have been edited.
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