THE Forum of Private Business (FPB) was
formed in 1977 and is a pressure group fighting on behalf of private
businesses. FPB represents approximately 25,000 UK-based businesses
employing in excess of 600,000 people, and is a powerful lobbying
voice in both the UK and the European Union.
This week the North West based business
pressure group, representing 25,000 small and medium sized firms,
launched a fierce attack on the TUC for proposing that the hourly
rate of the minimum wage should rise from £4.85 to £5.35 in 2005
moving to £6 in 2006.
The Forum of Private Business Chief Executive
Nick Goulding said:- "the TUC's General Secretary Brendan
Barber is seriously misguided when he said:- the increase was
"fair and affordable."
A survey of FPB's membership this month has
revealed that 39.8 per cent believed that the TUC's proposal to
raise the minimum wage to £5.35 in 2005 would be 'bad' for their
business, while a further 24 per cent believed it would be 'very
bad'. Fewer than two per cent of respondents thought the increase
would be good or very good.
"We cannot lose sight of the fact
that the minimum wage has soared by 34.7 per cent over five years, a
figure well above earnings growth. The minimum wage is now becoming
dangerously high and any further increase could have disasterous
effects on the small business community. Where big business can
absorb the increase, as they employ relatively few staff on the
minimum wage, it is actually small businesses that are hit hardest
especially those businesses in poorer and remote areas. Above all it
is an unwelcome additional pressure on businesses already being
stung with a range of higher costs including increased employers'
National Insurance contributions and rocketing levels of insurance
premiums." said Mr Goulding.
Mr Goulding said:- the most recent increase to
the minimum wage is already having a heavy impact on high employment
sectors such as retail, hotels, restaurants, cleaning, security,
social care, hairdressing and textile manufacturing.
Alan Scott, owner, Bryn Hedd Nursing Home,
Penmaenmawr said:- "If I were forced to pay £6 per hour
my business would not be viable and I would be forced to close the
only Nursing Home in the Penmaenmawr/Llanfairfechan area. Though my
employees are first class, I can only afford to pay them so much.
The minimum wage is becoming a barrier to wealth creation."
Bryce Hamblin, joint managing director, C
& H Fabrics Ltd, Tunbridge Wells said:- "We have all
just about managed to absorb the substantial increases in minimum
wage so far, but business is not expanding at a level which can
sustain any further significant increase. I feel sure that at some
point, a further rise is going to force job cuts and that this point
is not far off."
Seamus Halton, owner, the Close Nursing and
Residential Home, Burcot, Oxfordshire said:- "What world
do they (TUC) live in. Should £6.00 per hour go through I will have
to close my business."
A spokesman for Stationary Express, Edinburgh
said:-"If the rise goes through we would have to consider
closing our retail operation with the loss of six jobs. The pay
differentials are disappearing and there is no one wanting to take
on the management positions due to this. Who is going to guarantee
the self employed get a wage? My staff get more than I do."
Alan Scott, owner, Bryn Hedd Nursing Home,
Penmaenmawr said:- "If I were forced to pay £6 per hour
my business would not be viable and I would be forced to close the
only Nursing Home in the Penmaenmawr/Llanfairfechan area. Though my
employees are first class, I can only afford to pay them so much.
The minimum wage is becoming a barrier to wealth creation."
Bryce Hamblin, joint managing director, C
& H Fabrics Ltd, Tunbridge Wells said:- "We have all
just about managed to absorb the substantial increases in minimum
wage so far, but business is not expanding at a level which can
sustain any further significant increase. I feel sure that at some
point, a further rise is going to force job cuts and that this point
is not far off."
Seamus Halton, owner, the Close Nursing and
Residential Home, Burcot, Oxfordshire said:- "What world
do they (TUC) live in. Should £6.00 per hour go through I will have
to close my business."
A spokesman for Stationary Express, Edinburgh
said:- "If the rise goes through we would have to
consider closing our retail operation with the loss of six jobs. The
pay differentials are disappearing and there is no one wanting to
take on the management positions due to this. Who is going to
guarantee the self employed get a wage? My staff get more than I
do."