Planned Minimum wage rise.

[Anna B 1,414]

Because its nonsense. An enquiry / lobby group / back bench commission / independant report / university research can suggest lots of things. However, someone has to consider the viability, implementation and impact of such things.

 

If the alleged in line with inflation enquiry was true that resulted in a suggested minimum full time wage of £37,000 a year.

You think that was really going to happen?

 

I have had to say this dozens of times. If you have loo cleaners and order pickers on £37k a year what happens with supervisors, managers, directors, skilled workers, trades, qualified professionals, executives and owners. What then happens with cost of production, operations, distributions, products prices, payroll and facilities. What then happens to the cost of living and value of the money in someone's pocket.... round and round it goes.

 

Where were you when they were handing out £200,000+ salaries? Nobody ever seemed to say they couldn't afford it then. The gap between the well paid and the low paid is getting further and further apart.

 

(And I know no minion is going to get £19 an hour - perish the thought...)

[ECCOnoob 1,041]

Where were you when they were handing out £200,000+ salaries? Nobody ever seemed to say they couldn't afford it then. The gap between the well paid and the low paid is getting further and further apart.

 

(And I know no minion is going to get £19 an hour - perish the thought...)

 

No company is forced to pay £200k salaries. Furthermore, those on those salaries are few and far between. They also come with a high level of skills/ability and qualifications that set such a price tag.

 

Minimum wage is set in law and ALL companies are obliged to pay not a penny less than it to ALL employees.

 

Its therefore very simple that impact of such a outgoing to a company's overheads - particuarly one that is a legal obligation has to be considered along with the impact on the economy as a whole.

 

You are trying to compare things that are not even on the same planet as each other.

 

Sudden increases in a minimum wage would be great for low paid staff BUT could make or break a company and have a domino effect causing a catastrophic impact on the economy. Its just like a sudden dramatic rise in interest rates would be fantastic for savers BUT would have a catastropic effect on home buyers and thus collapse the housing market.

 

This is exactly why these decisions need to be taken very very carefully.

Edited January 17, 2014 by ECCOnoob

[Mecky 10]

A rise in the minimum wage will only cause an increase in prices for everything. So any increase in the minimum wage will be swallowed up by increased living costs. Stupid idea.

 

Exactly, somebody, some greedy shopowner/ business will think, "I'll have some of that"

 

---------- Post added 17-01-2014 at 06:18 ----------

 

Higher pay = Lower benefits bill.

 

The only people who won't like this are the bosses of companies who won't pay a living wage to their employees. This move stops the taxpayer from subsidising exploitative employers.

 

Well done Gideon.

 

???? Give us a clue what you're talking about. And why did Gideon poo poo the idea when Labour said virtually the same thing a while ago?

 

In these times of dog eat dog, I wonder what the people just above the NMW will think about being caught up

Edited January 17, 2014 by Mecky

[Supertramp 10]

Love Sheffield forum, you know what each person is going to post before they do.

 

Mecky will **** on any idea just because its the Tories introducing it even if she would have loved it if it was a Labour policy.

 

Anna B will doom and gloom everything and always mention bankers or someone on high wages.

 

Mental the lot of you. Tarra.

[LeMaquis 10]

Why shouldnt landlords charge as much as they can ? Thats why we buy property in the first place .......... TO MAKE PROFIT .

 

A rise in the minimum wage will only cause an increase in prices for everything. So any increase in the minimum wage will be swallowed up by increased living costs. Stupid idea.

 

Penistone999 can earn as much as he likes. The rest of us cause inflation.

[SpikeMac 10]

???? Give us a clue what you're talking about. And why did Gideon poo poo the idea when Labour said virtually the same thing a while ago?

 

 

Hi Mecky.

 

If you really didn't understand my post, you might want to back out of the thread and go somewhere more suited to your analytical skills.

 

Let me help you: "Ocelot" begins with "O". Now you have all the tools you need to join in with one of the alphabet threads in I'm Boring. Off you pop.

 

The rest of us can turn to the important issue of the effect of raising the minimum wage on the benefits bill. It looks like a great way to reduce benefits to me. I've grown sick and tired of paying taxes to subsidise Tesco. This is an excellent move.

[Resident 1,190]

A rise in the minimum wage will only cause an increase in prices for everything. So any increase in the minimum wage will be swallowed up by increased living costs. Stupid idea.

 

As much as I hate to admit, he's right.

 

Product cost £10 to produce -> Min wage goes up by £1 -> costs company more to produce product -> company raise price of product to cover cost -> Rise in price => than rise in wages, worker no better off.

[Jason Bourne 11]

And so it should...give the working poor chance to earn and then spend a bit more...it all helps the economy...

 

Absolutely.

 

You pay a low-paid person some extra cash and they'll spend it on their living costs, keeping money flowing round the economy.

[taxman 12]

As much as I hate to admit, he's right.

 

Product cost £10 to produce -> Min wage goes up by £1 -> costs company more to produce product -> company raise price of product to cover cost -> Rise in price => than rise in wages, worker no better off.

 

So what is the excuse for prices already going up year on year despite general pay freezes or below inflation rises?

[I1L2T3 10]

Higher pay = Lower benefits bill.

 

The only people who won't like this are the bosses of companies who won't pay a living wage to their employees. This move stops the taxpayer from subsidising exploitative employers.

 

Well done Gideon.

 

Maybe, but if this cuts into company profits won't they seek to cut elsewhere, perhaps using more aggressive tax avoidance, cutting jobs or shifting more people onto zero hours contracts? In fact that is probably what they will do. The effect on tax revenue could well be neutral.

 

That said, if managed in the right way with regards to corporate behaviour this is a welcome move.

[Supertramp 10]

So what is the excuse for prices already going up year on year despite general pay freezes or below inflation rises?

 

Increases in raw material prices.

[Mecky 10]

Hi Mecky.

 

If you really didn't understand my post, you might want to back out of the thread and go somewhere more suited to your analytical skills.

 

Let me help you: "Ocelot" begins with "O". Now you have all the tools you need to join in with one of the alphabet threads in I'm Boring. Off you pop.

 

The rest of us can turn to the important issue of the effect of raising the minimum wage on the benefits bill. It looks like a great way to reduce benefits to me. I've grown sick and tired of paying taxes to subsidise Tesco. This is an excellent move.

 

I fully understand thanks, which is more than can be said for some people