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.