Bid to increase minimum wage to £6 an hour - Money - Business - Evening Standard
       

Bid to increase minimum wage to £6 an hour

Union leaders will step up their campaign today for the minimum wage to increase to £6 an hour, arguing the rise would be "sensible and affordable".

The TUC will meet the Low Pay Commission to discuss the case for a higher statutory rate, which currently stands at £5.80 for adults.

The union centre will press for a 3.5% increase from October 2010, saying a higher wage was needed to make sure low-paid workers did not fall behind other employees.

A 20p rise would benefit around a million vulnerable workers, tackle the gender pay gap and help mainly women and people from ethnic minority backgrounds, said the TUC.

General secretary Brendan Barber said: "It is predictable that some employer groups are saying that any increase in the minimum wage will threaten jobs and that £6 is too much.

"However, raising the minimum wage has already helped thousands of families without causing significant job losses.

"The effect of a further reasonable increase on employer pay bills will be modest, and companies should find them easy to absorb.

"Economic growth is predicted to return during the period that the Low Pay Commission is considering. Earnings should grow and unemployment should fall.

"An increase in the minimum wage is required to ensure that working families are not left in unnecessary poverty.

"The recession was caused by highly-paid people damaging the nation's financial system.

"It would not be fair to make the low paid suffer a freeze in wages while city bankers still get bonuses, and when there is no economic necessity to do so.

"The Low Pay Commission should robustly reject employer scare-mongering and recommend the highest minimum wage increases that can be sustained."

Workers aged 18-20 get £4.83 and those aged 16 and 17 get £3.57. The TUC recommended those rates should rise to £5 and £3.69.

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