BAD employers, those who pay sweated wages, are being subsidised by the taxpayer. For in many cases the wage packet is so small that it is below the income which has to be provided by the State aid.
One in three of all full-time jobs pays less than family credit. That's how the poverty trap works. The cost of these benefits is £2.3 billion a year - all paid for out of taxes, of course.
The Labour party has now agreed to include a minimum wage in its election programme, but has not yet decided what amount it should be. Several trade unions are seeking a minimum of £4.25 an hour, which is little enough. It would mean a gross wage of £170 for a 40-hour week. From that must be deducted national insurance, income tax, travelling expenses and meals.
Nonetheless, the Labour party leaders should realise what joy it would bring into the lives of millions of workers.
Some company directors are against the idea, claiming it would cause unemployment. American experience seems to prove the opposite. In those states with a higher minimum wage than the others employment has gone up.
The Government says it would cause unemployment also because Britain has to compete with other countries. Yet in many low paid jobs, such as those of hairdressers, shop assistants and night watchmen, there is no foreign competition at all.
FRANK ALLAUN, Eastleigh Road, Manchester.
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
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