PracticeConsultingFDs say minimum wage won’t harm business

FDs say minimum wage won't harm business

Business pessimists who predicted massive job losses following the recent introduction of the minimum wage were dealt a serious blow this week when finance directors gave their overwhelming backing to the government’s scheme, writes Nick Huber.

Of 203 finance directors questioned in the Accountancy Age/Reed Accountancy Personnel The Big Question this week, an emphatic 80% believed that the minimum wage would not have an adverse effect on their business.

When asked whether this might change in the future, support actually rose to 83%.

Most finance directors responded that they were paying their staff in excess of the statutory minimum already.

Robert Derange, of Twickenham Plating Group, commented: ‘It will only adversely affect companies that make a habit of paying badly.’

Only 9% of FDs believed the minimum wage – which took effect this month at #3.60 an hour, and #3.00 per hour for workers aged 18 to 21 – would damage their business.

Daniel Afeeva, of Holistic Community Care, responded: ‘In the case of 24-hour carers – who are not up to the minimum wage – we will be affected when their pay is raised to the minimum standard.

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