The Trades Union Congress has called for the minimum wage to be put up to £6 an hour, an increase of 20p, in news which may interest HR professionals.

Ahead of its meeting with the Low Pay Commission, the group asserted that the increase could help to close the gender pay gap, as around two out of the three people the salary raise would benefit are women.

General secretary of the TUC 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, he added that increasing the minimum wage has already helped thousands of UK families, without having a significant negative impact on jobs.

Indeed, Mr Barber asserted the effect of a further reasonable increase on employer pay bills will be "modest" and one that companies should find "easy to absorb".

According to a recent survey by Mercer, as companies struggle during the recession to hand out bonuses and pay increases, more firms are offering a choice of flexible benefits to employees.

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3 Responses to “TUC calls for minimum wage increase”

1. David Barry Says:
   November 4th, 2009 at 2:54 pm

   Here we go again, Brendan Barber trying to get the Government to do the “dirty work” he and his cohorts should be doing on a local basis – getting pay rises. He knows that in “edging” the MW up, pressure is put onto those earning just above the MW who in turn, by raising the temperature, put pressure on those above them. It is not just about hiking those on the MW up, its about hiking millions of others up as well and for what? In this new “post-crisis” world organisations should only be rewarding employees for exceptional performance, personal and business development, adding value, displaying commitment etc, etc not just turn up and get another pay rise. Just how can we move forward and look positively to the future with Mr Barber and some of his cohorts in such prominent positions. Bob Crowe! Ha Ha – comedy hour! Royal Mail unions – a sad joke. If you are in a union, as I am, then go out and support someone for the 21st century not these “neanderthals” from the 19th! DB

2. Paul Sellers Says:
   November 5th, 2009 at 7:29 pm

   Would an extra 20 pence for the lowest paid workers really be a bad thing?

   Those with the lowest incomes tend not be in trade unions, so they have to rely on the minimum wage to keep them above the breadline.

   Actually,even in the depths of recession most of us do get reasonable pay rises,and long may that continue. Even leaving aside the question of staff motivation, whihc is no small matter, according to ONS, CPI inflation is low but positive (1.1%), and according to city forecasters RPI will bounce back up to 2.7% by theend of next year.

   There is a moral imperative to end low pay in what is still really a very rich country. The helping hand for those who are worst off is simply part of our core values.

   However, there is also an economic imperative. The simple truth is that if pay does not continue grow faster than inflation then businesses will not be able to expand as their customers will not have any more money to spend. That way lies severe depression – in all senses of the word.

3. Gillian Crowley Says:
   November 12th, 2009 at 12:26 pm

   To David Barry & all like him.
   Question – would you work for the minimum wage ?
   As a payroll manager for a firm of accountants I constantly have to listen why clients moan about the fact they have to pay the minimum wage.The next week they are telling me about the exotic holiday they are going on.
   £6.00 is cheap at half the price.
   Gill