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New minimum wage £9


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The new minimum wage is going to be £9 by 2020, surely this is going to cause massive inflation?

China are devaluing their currency and inflation is very low to start with, so that will help, but hiking wages up will cause chaos.

I get above the minimum wage now, so I will be hoping for a big increase, to keep my differential with other low skilled workers.

All these wage negotiations will distract people from politics, will there be strikes?

Perhaps everyone should be force to get a majority of the workforce before they can strike, like Cameron is doing for the public sector.

Edited by El Cid
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They're bringing it in slowly, as to not cause a spike in inflation.

If it's drip-fed in year by year it won't have an adverse effect.

 

I understand your concern with the parity between other jobs and minimum wage tho, I think if it becomes an issue you either demand a pay rise or you look for a new job.

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I am not a big fan of this, the UK needs to stay competitive globally and a 9£ minimum wage is going to have a lot of international organisations look around for cheaper alternatives (Ireland anybody?).

 

Here is an overview of current, relevant, minimum wages as they are currently (Conversion 1E is 0.71£)

 

Germany: 8,50 Euros - 6,05£ (including NI and pension contributions!)

France: 9,61 Euros - 6,83£

Ireland: 8,65 Euros - 6,15£

Italy: non (collective bargaining arrangement)

Spain: Very low monthly based (around 3£)

Netherlands: 8,70 Euros - 6,18£

Belgium: 9,12 Euros - 6,49£ (important for car manufacturing)

 

9£ brings the UK to the highest level of minimum wages in the world, in line with Australia and Luxemburg (By that time there will probably be a few more).

 

Raising the minimum wage is going to increase the black market (Think of cleaners, carers, security etc.) and simply creating a higher median is not going to help, it will just increase the mean and thus the poverty line and hey presto, more people are considered poor because they make just over the minimum wage.

 

Also, aren't all sorts of benefits linked directly to minimum wage?

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If it's drip-fed in year by year it won't have an adverse effect.

 

 

Any part of what makes up the inflation figures has an effect, oil prices have caused downward pressure, wages are often sited as increasing flation, but the rise to £9 an hour is massive.

It may well help the under 25s get work, as their minimum wage is much lower.

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Why do people think this is a bad thing? Its going to be fed in over five years not dropped on you next week. Why shouldn't the minimum increase? Or do people want to see the little people kept down where they know their place?

“I hate a good many things, but I suffer them all the same.”

 

Stannis Baratheon

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The staff in my chippy are looking forward to earning £9 an hour to serve chips lol. However there will be more to the job than just dishing up chips. The staff I have will be running the shop between them for £9 an hour! Did anyone else hear the interview from the big cheese at Whitbread that was on the wireless (BBC RADIO 4) I think? Made some interesting comments. Even the big companies are reevaluating there workforce roles ready for the increase.

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Why do people think this is a bad thing? Its going to be fed in over five years not dropped on you next week. Why shouldn't the minimum increase? Or do people want to see the little people kept down where they know their place?

 

I've no problem with the minimum increasing, as long as everyone else's increases proportionally. I spent time and effort to get the qualifications and experience I have, so I didn't have to do a minimum wage job. Raising that but not matching everyone else's just devalues all that hard work

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Why do people think this is a bad thing? Its going to be fed in over five years not dropped on you next week. Why shouldn't the minimum increase? Or do people want to see the little people kept down where they know their place?

 

Because it's impossible to make everyone highly paid (or even well paid). It's simply a socialist dream that has no basis in reality.

 

What about the people currently earning £9/hr, they're going to want a £2/hr pay rise as well, and so is everyone else in the system.

 

Which is where the argument for inflationary pressure comes from.

 

That and the fact that some jobs simply aren't worth doing at all if you have to pay someone that much. If the product they make can't be sold for more, then it will simply not be made, or the work will go abroad.

 

---------- Post added 13-08-2015 at 13:12 ----------

 

Today the MW is £6.70, so what compound % increase is this to reach £9.00 in 5 years.

 

It's about 6%/annum for the next 5 years. So it's possibly not as generous as it first seems.

Growth is predicted generally in the economy at about 3% for the next 5 years, so this IS an increase over inflation, but not a huge one.

If growth goes ahead at the predicted 3% and the minimum wage kept pace it would be £7.75 by 2020...

 

---------- Post added 13-08-2015 at 13:13 ----------

 

I've no problem with the minimum increasing, as long as everyone else's increases proportionally. I spent time and effort to get the qualifications and experience I have, so I didn't have to do a minimum wage job. Raising that but not matching everyone else's just devalues all that hard work

 

The government don't control your wage of course, so they can't guarantee anything.

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The government don't control your wage of course, so they can't guarantee anything.

 

Yep thats the annoying bit, but then again if you're not happy you can walk.

 

In a way staying the same job for a long time does leave you open to being taken advantage of somewhat, so moving around every so often is not a bad thing.

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Because it's impossible to make everyone highly paid (or even well paid). It's simply a socialist dream that has no basis in reality.

 

 

Even Ed Milliband couldnt dream of such a high minimum wage, his promise was £8 an hour.

 

---------- Post added 13-08-2015 at 14:22 ----------

 

 

Today the MW is £6.70, so what compound % increase is this to reach £9.00 in 5 years.

 

It's about 6%/annum for the next 5 years. So it's possibly not as generous as it first seems. Growth is predicted generally in the economy at about 3% for the next 5 years

 

Their predictions are seldom correct, with almost zero inflation, wage increases are going down too.

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