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Malcolm M | Is The Minimum Wage Is Ruining British Business? |
Well what do you think. Before the minimum wage came into effect people where paid for the skills they brought to a job. Now everyone has to be paid a minimum wage. Take an hotel for example - A pot washer will get a minimum wage of £5.50 an hour - before min wage they may have got 3- 3.5 an hour. A section leader may get say 12000 per year for 50 hours a week equating to 4.60 an hour !!! So what you all think,
Additional Details
How old r u Jo Jo. The fact is that wages for skilled people havent gone up very much at all in the last 10 years but wages for unskilled have sometimes evan doubled.
Only sensible answers everyone if possible! |
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clem kiddlehopper
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Personally, I think that increasing the minimum wage for unskilled workers will only increase the prices that the company is charging for their particular services or products they are selling to their clients, passing the cost of operations onto the client. If the employer has got to pay his unskilled workers more money for the same services that they were performing for a lower wage per hour before the minimum wage increase, the employer will then be forced to charge his clients more money for what he is selling to them, thus driving up the costs of living. "This will create a snowball rolling down the hill affect"! Afterall, the employer is in business to turn a profit, and being required by law to pay his workers more money will be dipping into his profit margins, which is counter-productive to all employers in business.Having an increase in the minimum wage is good for the unskilled workers, more money in their pockets, but bad for the company's and bad for the end users of that company's products or services. Of course, lets remember that the higher the minimum wage is, the more taxes that will be deducted from that employees paycheck. Who benefits from a higher minimum wage? Mostly the government in taxes, the minimum wage earner will see a few extra dollars per shift on their paycheck but not that much more.
If the governments really wanted to help these minimum wage earners without doing damages to the employers, or causing an increase in the standard of living costs, then they should offer these minimum wage earners incentives to return to school to further their education, go onto college, graduate and join the skilled workers ranks where they would earn a considerable amount of money compared to being unskilled and earning the basic minimum wage.
Sometimes, the ruling political party in office will push to have the minimum wage increased, especially when it is getting close to a national election, as that way they can lay claim to the majority of the registered voters that it was their party that got them the increase and therefore, the voters should cast their votes for that party, especially if the minimum wage earners want to see additional increases in the minimum wage levels, in the future! "Without us, you wouldn't have this increase, would you"? So vote for me and we'll set you free!
Remember, the more money you earn, the more taxes the government takes out of your paycheck! It would be great if the government passed a rule into law that stated that all minimum wage earners paychecks would have zero taxes deducted, then this would put more money into your pockets and more money into the economy in general.... |
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alatoruk
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it is, but not for the reasons you are thinking of.
in my industry an experianced worker can expect to get about £7-8 an hour. They dont want to do overtime and are queueing up at the clock machine 3 minutes before the bell goes. They wouldnt work for £5.50 an hour.
Along comes Mr Polish with the same experiance. Is more than willing to work for £5.50 an hour, hell he'd work for £4.50 an hour, because thats twice what he gets paid at home. But we have to pay him £5.50 an hour, so he will do all the hours god sends and then some.
this hurts UK economy in 2 ways -
1 - UK jobs are lost to migrant workers who will work for min wage.
2 - Orders are lost to poland where they make the same product at half the labour cost.
but dont get me started on this government paying to close down british industry. a north east company a few years ago used its millions from the DTI (given to prevent it closing) to undercut the rest of the industry putting 100s out of work on the south-coast. Of course the fact that the 800 jobs in the NE that were saved were only 25 miles from Tony Blairs constituancy didnt affect the DTIs decision. |
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derek m
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As a tradesman I used to be able to earn a reasonable wage, since the government started allowing people in without any restraints the trades have taken a hammering.
Some of thes immigrants live 10 to a house (with only one council tax) and will work for £20 a day, many are not legal,
but even the legal ones undercut us as when their money goes home it equates to a fantastic amount. Some companies are making people redundant so as they can contract labour out to Dutch firms (as in the glazing industry) and employ East europeans for peanuts. We need a minimum wage to stop the exploitation of the workers but if wages are being transferred abroad it should be reduced to be commensurate to the economy to which it is being transferred. we need to introduce a Relative wage structure for economic migrants |
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Yasmin H
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I don't get what you're saying...
By your calculations the section leader is not getting minimum wage then (if minimum wage was £5.50) and therfore is being illegally employed?!
I don't know much about hotels, but I think a section leader would be paid more than a pot washer. |
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dswawm
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Minimum wage laws are bad for everyone involved. When we had a mandatory wage increase several businesses put up signs explaining why the price of the food and drinks went up. I know one store that discontinued it's senior citizen discounts because of it.
Minimum wage increases are an illusion, because all though the wage goes up, so does costs of goods associated with those wages. Min wages earners make no ground at all. |
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jojo
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I think your talking rubbish, frankly. Are you Margaret Thatcher in disguise?
We are a civilised society, give the unskilled higher wages and pay them less in top up benefits but take more in tax. It`s a juggling act i know. I haven`t noticed many section leader or management roles offering £12000 a year, i have to say. But i just think your figures are unrealistic- who is going to take a job at £3.00 an hour? You couldn`t pay the rent on that. We would go back to higher unemployment as many more people would sit at home and draw benefit, it`s just not worth going to work. I had a look through my local paper, the lowest paid job is a catering assistant at £5:35 an hour (outside London it`s less) and all the jobs that need qualifications or that have responsibility are much higher, so i don`t really know where your coming from, i think your wrong with the £12000 a year. I would go elsewhere if it`s yourself. If anyone is working for that money and doing 50 hrs a week then more fool them, there are plenty of jobs around. I think generally people are getting better educated, which is a good thing. One good thing this government has done is provide plenty of opportunity and funding for adult education.
Also there are many industries, including hotels, that make huge profit, to the benefit of directors and shareholders, why shouldn`t they be made to pay their staff a decent wage - at every level. |
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Nexus6
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So the pot washer gets the minimum wage but the section leader doesn't. How does that work then?
Anyhow, the minimum wage wouldn't be an issue if workers had been paid a decent salary in the first place, rather than companies grossly extending their profit margins to the detriment of their staff. |
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Ryan S
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Inflation forces people to HAVE to pay more in order to survive. If you were still getting paid the same wage people were getting paid 30 years ago you wouldn't be able to survive on your own. Not saying making min wage allows you to make it on your own, but it's a hell of a lot better than making 3-3.5 a hour.
You should watch the 1st episode of Morgan Spurlock's US TV show "30 Days". They did a show where both he and his wife were making Min Wage in Detroit and they were barely scraping by. Until Morgan gets hurt on the job and has to pay a 400+ hospital bill. |
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