TUC slammed over £6 minimum wage

Trade leaders have condemned union calls to raise the minimum wage to £6 per hour over the next two years.

Licensee and pubco groups say the 12% wages hike is unacceptable and would saddle employers with more hefty overheads.

The Trade Union Congress (TUC) has called for the rise in a submission to the Low Pay Commission. Demands have also been made that the lower hourly rate of £4.25 for 18 to 21-year-olds is scrapped.

Brewers, pubcos and licensees are already braced for October's minimum hourly wage rise from £5.05 to £5.35.

Association of Licensed Multiple Retailers chief executive Nick Bish said: "We believe a rise of this scale would be unacceptable and damage many businesses.

"In our view, the minimum wage has done its job and should in future be reviewed in line with RPI."

Federation of Licensed Victuallers Associations chief executive Tony Payne said licensees would be obliged to axe jobs or cut staff hours.

"Pubs are labour-intensive and this size of increase is more than many licensees could afford," he said.

"It is easy to make demands but proper regard must be paid to consequences of such big wage increases."

TUC general secretary Brendan Barber said there was no sound reason why the wages of low-paid staff should not continue to rise above inflation.

"There should be no hiding place for crooks cheating workers by paying poverty wages," he said.

Shaun Rennison, of the Percy Arms at Airmyn near Goole, North Humberside, said a steep rise would have major effects on his business.

"Wages are our biggest single expense, so an increase of this nature would hit us very hard.

"On top of our other increased overheads, it would be another nail in the coffin."