Critics proved wrong on pay laws, says DTI

first_imgDTI minister Alan Johnson has defended the introduction of the minimum wage,saying critics who said it would be a burden to business and cost a millionjobs had been proved wrong.Addressing company directors at the Institute of Directors last week, the ministerfor competitiveness said 800,000 more people are in jobs than ever before andthat the cost of complying with the minimum wage was less than £20m a year –0.0001 per cent of turnover.He said businesses were benefiting through improving the working lives oftheir employees.”A key characteristic of our top performing companies is a culture thatpromotes partnership, fairness and trust. Decent standards and security at workmake for a better motivated, versatile and stable workforce,” he said.He added that the regulations had been implemented carefully and”adroitly”. “They are a major innovation in this country and we will not threatentheir survival by placing unnecessary burdens on business.”Ruth Lea, head of the Institute of Directors’ policy unit, said that despitenot having a major impact, some employers “at the margins” such ascare homes and charities had suffered.She said the timing of its introduction had been fortunate because theeconomy was buoyant, but if there was an economic downturn or the rate wassignificantly increased, the impact would be wider. Related posts:No related photos. Previous Article Next Article Comments are closed. Critics proved wrong on pay laws, says DTIOn 7 Mar 2000 in Personnel Todaylast_img read more