Retailers claim minimum wage rise will cost 20,000 jobs

Retail employers are warning that 44% of UK retailers would cut jobs if the Low Pay Commission recommends - and the Government accepts - that the national minimum wage is raised to £5.20.

The study from the British Retail Consortium warns that such an increase could result in the loss of more than 20,000 jobs. It additionally finds that the rise to £4.85 - effective from 1 October 2004 - has already cost the retail sector £1.7 billion. Raising the minimum wage to £5.20 would cost a further £2.7 billion.

The publication of the BRC research on 25 October coincided with the ending of the Low Pay Commission's consultation to help decide the post-October 2005 NMW rate.

  • Retailers claim higher minimum wage will lead to job cuts   Daniel Thomas reports, from personneltoday.com.

  • New minimum wage rises could cost 20,000 retail jobs   Read the overview of the survey findings, as published on the BRC website.

    Also

    'Serious damage' for retail if minimum wage rises   IRS Employment Review reports on the BRC claim.

    Low Pay Commission consults on minimum wage   XpertHR reports on the consultation, conducted in preparation for a report to be delivered to the Government in February 2005.

    Retail sector pay awards to average 2.8% next year   Retail pay reviews are forecast to average 2.8% during the 2005 pay round, according to Mercer HR Consulting, with retention cited as the key driver of reward strategy.

    National minimum wage rises to £4.85   XpertHR presents a range of useful links regarding the most recent increase to the NMW, effective from 1 October 2004.

    The national minimum wage   Visit the XpertHR reference manual for further information on workers' rights to be paid the national minimum wage.