Released, 7 June 1998.

The McCannics e-survey, month just ended May 1998

e-businesses say minimum wage too low and warn of weakening economy

A third of the internet-connected UK firms taking part in the McCannics e-survey believe that the minimum wage rate of £3.60, as recently proposed by the Low Pay Commission, is too low (see chart, right).

Only 14 per cent believe that the rate is too high. Respondents to this first survey of UK businesses’ opinions on the proposed minimum wage rate were sharply divided. One business owner was glad that:

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

Another thought that:

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

However, a vocal minority were strongly against the minimum wage. One said:

"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."

More comments...

" Do you believe that a minimum wage
of 3.60 pounds per hour, as proposed
by the Low Pay Commission, is
too high, about right, or too low?"

Sales and Prices

Even before the interest rate rise on 4 June, the internet-connected firms taking part in this e-survey were giving a strong warning about the weakening economy.

Although 52 per cent of the firms said that their sales were higher in May 1998 than in May 1997, 29 per cent said that they were lower. The resulting balance (the proportion saying higher minus the proportion saying lower) of +23 per cent is the lowest since this survey began, in July 1997 (see chart). The balance has fallen for three months in succession.

The balance of firms reporting increased prices was considerably down. Some 29 per cent said that their prices were higher in May 1998 than May 1997 and 12 per cent said that they were lower. The balance of +17 per cent compares with +33 per cent in the last survey.

"Was your sales turnover in the month just ended higher, about the same, or lower than in the same month last year?"

Note: Chart shows percentage balances (percentage saying higher minus percentage saying lower). Earlier surveys include late responses and so may differ from figures published elsewhere.

This eleventh survey questionnaire was sent out on 1st June 1998 and by 4th June responses had been received from 66 businesses across the UK.

Owners or managers of businesses in the UK which would like to take part in the survey should send a blank e-mail to: volunteer@mccannics.demon.co.uk

All individual replies will be kept strictly confidential. Only anonymised results will be published, and your e-mail address will not be passed on to any third party.

Details of the sample were included in the first survey.

E-mail us with comments, queries or suggestions for future topical questions at: esurvey@mccannics.co.uk

e-survey: