Dear Mary Creagh
I would like to vote for you on the 8th June, I think you have been a good local MP for Wakefield.
Before I am able to vote for you, can you please clarify one of your party’s policies, in particular that of raising the minimum wage to £10 per hour.
I currently co own a small performance marketing business based in Wakefield, employing nearly 20 people.
We have 2 members of staff on minimum wages as we internally train them. With the exception of finance and tech team members, we have trained all our staff, as we are in a very niche market working internationally with no local competition, so there is no locally trained talent pool to recruit from.
So, if a Labour government is elected in June and during the parliament minimum wage goes up by 25%! Surely then everyone currently on £10 per hour needs to get a 25% pay raise too and everyone currently on £15 per hour will expect the same pay rise also?
Now, I appreciate this is a slight extreme example but lets suppose I offered each member of our team a 25% pay raise because we are fair to our staff. That would cost around £10,000 per month, and unable to pass the cost on to our customer -the only way to finance that would be to make 4 members of staff redundant, which in turn would put the whole business in serious jeopardy.
I love the sentiment of a £10 minimum wage but, is it practical? Is this policy a headline grabber to gain easy votes but will never be brought into law? Or is it the real intention of a future Labour government?
One thought on “Is a £10 minimum wage a good idea?”
Both parties wish to increase minimum wage by 2020 however Labour believe £10 is what’s required to reduce the number of people classed as the working poor.
During this process it’s key employers look to keep the differentials otherwise skilled workers in some cases could be paid only a few pence more than the colleague they manage.
Small businesses should receive assistance from Government to assist until the economy can balance itself out.
We must remember it shouldn’t be a race to the bottom.