Product category:
Industrial consultancy services
News Release from: SGS
Edited by the Manufacturingtalk Editorial
Team on 05 March 2002
Minimum Wage has had no impact, say SMEs
The introduction of the Minimum Wage was expected to hit small businesses hardest, yet results from a survey published this month suggest that most SMEs feel it has had no impact on their business.
The introduction of the Minimum Wage was expected to hit small businesses hardest, yet results from a survey published this month suggest that most SMEs (small and medium sized enterprises) feel it has had no impact on their business The survey, which was sponsored by business consultancy SGS Consulting, found that just 16 per cent of SMEs feel the Minimum Wage has had a negative impact
This article was originally published on Manufacturingtalk on 28 Jun 2007 at 8.00am (UK)
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Despite a 10.8 per cent increase in the Minimum Wage in October 2001 from GBP 3.70 to GBP4.10, 13 per cent said the legislation has had positive consequences while 71 per cent felt its introduction had no impact on their business.
"These results show that despite some people saying the minimum wage would be a disaster for business, it has actually been a spectacular success," said a spokesman for the DTI, "Of course, minimum wage rises are harder to manage in some areas than others, which is why the Low Pay Commission looks in detail at the impact in certain sectors.
"But overall, as well as helping the low paid, the minimum wage is good news for decent employers as it prevents unscrupulous bosses using poverty wages to undercut their competitors.
The increased rates will have a negligible effect on the total UK wage bill." An estimated 1.5 million workers saw their pay rise when the Minimum Wage was first introduced, particularly in low-paying sectors such as retail, fast food, pubs, clothing and manufacturing.
When the idea of a National Minimum Wage was suggested, many employers claimed it could make their businesses unsustainable.
But, nearly three years after it was introduced, it is generally seen as a success by both employers and employees.
The study which was conducted by Template Surveys, relates to data collected from responses to an online questionnaire posted on the Internet and circulated in January 2002 by email to 5000 Managing Directors of UK firms which employ less than 500 staff.
The survey was also sponsored by Internet portal thesme.co.uk and trade publisher, the Business Magazine Group.
The full report will be published on the Internet and be available in hard copy later this month.
For further information or to request a FREE copy of the report please contact SGS Consulting on 0151 350 6688 or Template Surveys on 020 7265 9174. Request free introductory details about products from SGS ...
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