Editorial: Business reality a factor in low pay
Low pay has been an emotive issue for many years. A few years ago, the introduction of a minimum wage was a step forward.
Yesterday, we saw another step forward with the founding of the Low Pay Commission to decide on the future of the minimum wage.
The commission faces the challenge of balancing fair wages with the reality of doing business in what is still a fragile recovery. According to the small firms sector, the big danger of setting a minimum wage is that once the minimum wage is increased, unions use the hike as a mechanism to get further increases for members who earn far more than the minimum wage. The insistence by the unions and acquiescence of employers keeps low-paid workers down, because giving them a living wage would have a very detrimental effect further up the pay chain.