CBI is stuck in a minimum wage 'Groundhog Day'

The CBI has been accused of being "stuck in a National Minimum Wage ‘Groundhog Day’ continuing to argue that it could cost jobs despite evidence that jobs have gone up every time the minimum wage has increased".

Not surprisingly, perhaps, the accusation comes from the TUC, which says it has evidence, published ahead of the increase in the adult minimum wage to £4.85 per hour this Friday (1 October), that is supported by research from Income Data Services showing that employment has grown in sectors of the economy where the minimum wage has had the most impact and that there is room for the wage to go above £5 in 2005.

The CBI originally opposed the minimum wage saying that it could cost jobs but has since agreed to increases above the growth in average earnings until a few weeks ago when it issued a ‘storm warning’ that businesses could not cope with further increases.

Brendan Barber, TUC General Secretary, said: 'The minimum wage is doing the business. It helps around a million people every time it goes up, most of them part-time women workers, and jobs have been gained not lost. But the CBI seems to be stuck in a minimum wage ‘Groundhog Day’, every time it increases they cry wolf on job losses. It’s time they accepted that the wage works and instead concentrated on helping the Government and trade unions crack down on employers who are still not paying staff the legal minimum.'