Advantages I can see a benefit for businesses
Disadvantages Is it fair?
So, national minimum wage is increasing by 1.8% from October 2012, but not for everyone, much to the dismay of union leaders.Is it fair that minimum wage hasn’t been increased for 16-20 year olds?I'm on the fence with this one. Minimum wage has always been a bone of contention with those that are on it, and a matter of little interest to those that aren't, who are earning above it.From a statement by Vince Cable, it doesn’t sound like there is a very strong reasoning behind the freeze on minimum wage: "In these tough times freezing the youth rates has been a very hard decision - but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run.” Does anyone understand the logic in this? In January 2012, the cost of living rose by 3.6% (according to the recent Consumer Prices Index), so it is the under 20s that have families of their own, that I feel sorry for.
There are so many people drone on about "but there are no jobs" …However, this is what confuses me: My company has jobs and always has a need for a steady stream of staff to fulfill campaign work. If you have skill and talent, we always find room for you. We pay above minimum wage (an excellent starting rate for 16-20 yr olds, truth be known) but when it comes to interviews, we regularly get no shows. We also see lots of people who tell us they are happy signing on. I’ve personally interviewed people that have told me they are taking their last employers to tribunal because they were treated like dirt...This is not what a potential employer wants to hear! Someone even told me once, in interview, that they don’t mind being a bum! Outrageous isn’t it? It’s easy to see why people are of the opinion that there seems to be no work ethic anymore!If we’re trying to get the young into employment, then freezing minimum wage would certainly incentivise employers to give more jobs to younger folk - as it would keep an employer’s wages bill down.
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