Labour’s plans to overhaul the minimum wage to make it closer to average earnings would “threaten” local shops, the Association of Convenience Stores has warned.
The ACS said proposals by the Labour Party to create a statutory minimum wage linked to average earnings – which it would implement should it come into government – would threaten investment and job creation in the sector.
“We support the National Minimum Wage and the protection it provides to workers, but forcing large annual hikes in the minimum wage rate, in the way that the Labour Party proposals suggest, will threaten investment and prevent local shops from creating jobs,” said ACS CEO James Lowman.
“Indexation of the National Minimum Wage to average earnings would not account for fluctuations in the economy or employment market. The success of the National Minimum Wage over the last 15 years is based on ensuring that politics is removed from how rates are set. It is vital that this does not change,” he added.
The Labour Party is set to publish a report on wages policy detailing plans to overhaul the Low Pay Commission and bring the minimum wage closer in line with average hourly earnings. But the ACS claims that 87% of retailers have reduced staff hours within their business as a result of increases in employment costs, while 75% have delayed expansion and investment plans.
In February, the ACS said it was “disappointed” with government plans to increase the minimum wage by 3% to £6.50 from October. It said local shop owners would have “little choice” but to reduce staff hours and delay further business investment when the minimum wage is increased.
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