CBI comments on Labour's proposals on the minimum wage
The CBI commented on the Labour Party's proposals on the National Minimum Wage.
John Cridland, CBI Director-General said:
"I'm proud of my role in helping set up the Low Pay Commission that brought in the minimum wage and which strikes a balance between protecting for workers without deterring job creation.
"A sectoral approach to setting the minimum wage would be unworkable and hit smallest companies the hardest. It's based on a completely false premise that all companies working in the same sector operate on the same margins.
"The staff of a small IT start up might chose to forego higher wages to help get the business off the ground, surviving on wafer-thin margins. Sectoral minimum wages would favour incumbents over challengers.
"As a stepping stone into work, a minimum wage job is a good starting point, but it's through on-the-job training and experience that people will progress to higher-paid roles.
"It is absolutely right that any company that knowingly fails to pay the minimum wage should feel the full force of the law."