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Welfare Reform on the Web (August 1999): Minimum Wage - UK

COUNTING THE PENNIES

O. Aikin

People Management, vol. 5, April 5th 1999, p. 25-27,

Outlines the provisions of the National Minimum Wage Regulations 1999.

DOZEN LOW-PAY FIRMS FACE STIFF FINE

A. Grice

Independent, April 20th 1999, p. 8

Twelve companies have been threatened with prosecution by the government for refusing to pay staff the new national minimum wage.

FIRMS SHUN YOUTH RATE FOR NATIONAL MINIMUM WAGE

J. Walsh

People Management, vol. 5, April 5th 1999, p. 12

Firms are opting not to take advantage of the reduced £3.00 youth rate for the minimum wage because they consider it discriminatory and bureaucratic, according to a study by Incomes Data Services (IDS). On the other hand, a joint study by Unison and the Low Pay Unit carried out on the eve of the new regulations' start date found evidence of firms' widespread disregard for the law. Researchers found that nearly half of the vacancies advertised in job centres in the South-West of England were paying less than the statutory minimum.

MINIMUM WAGE BECOMES A REALITY

Labour Research, vol. 88, no. 4, 1999, p. 11-12.

Article looks at the workers who are set to benefit from the national minimum wage now coming into force, and the industries in which they work.

MINIMUM WAGE "PUTS PRESSURE ON SLOWER WORKERS"

S. Jones

Financial Times, April 21st 1999, p. 10

Employers that pay "piece rates" rather than for hours worked are likely to fire slower workers and make job cuts because of the national minimum wage according to a Yorkshire employer.

NATIONAL MINIMUM WAGE

Incomes Data Services

IDS report no. 783, 1999. 36 p

Research shows little evidence of any negative employment effect from the introduction of the National Minimum Wage (NMW). In fact a number of fast food companies affected by NMW are currently engaged in expansion plans. This confirms evidence from official statistics which show significant employment growth in the service sector, for example by 100,000 in the distribtuion, hotels and catering industry, during 1998. During this period many firms in the sector increased pay in anticipation of the minimum wage as jobs were expanding.

THE NATIONAL MINIMUM WAGE ACCOMMODATION OFFSET

Low Pay Commission

London: TSO, 1999 (Cm 4321)

Recommends that there should be no immediate change to the rate of the accommodation offset in the National Minimum Wage Regulations, that the administration and impact of the accommodation offset should be monitored, and that members of intentional communities should be regarded as volunteers rather than workers, and exempted from the National Minimum Wage.

RED FACES IN WHITEHALL OVER LOW PAY VIEW

G. Trefgarne

Daily Telegraph, April 22nd 1999, p. 37

The government is under pressure to dilute the effects of the minimum wage after the chair of the Low Pay Commission warned against relying on a mechanistic formula when setting the wage. The chair has shown himself sympathetic to small businessmen who are complaining that they are struggling to pay their workers the statutory rate.

UNIONS COME OUT FIGHTING OVER MINIMUM WAGE

J. Robinson

Personnel Today, April 15th 1999, p. 1

Reports that employers are being hit by concerted union action over the National Minimum Wage. The determined response is intended to ensure compliance with the new law.

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