Minimum wage to rise 10%

WAGE INCREASES of more than 10% for low paid workers have been unveiled in government proposals spanning the next two years.

Trade and Industry Secretary Patricia Hewitt said she wants the national minimum wage to rise to £5/hr in October this year and to £5.35/hr one year later.

The current minimum wage rate of £4.85/hr already reflects a 4.1% increase agreed in 2004.

Bob Fiddaman, NFU wage board chairman, said that the rises went further than expected and would cost the horticulture sector millions of pounds.

“There is no way that this can be passed on down to consumers, because the supermarkets won‘t agree to price rises,” he said.

“We‘re told in the next breath that food is becoming cheaper in shops, but the only people paying are the producers.

“It also creates yet another problem when competing with foreign imports that don‘t face this constraint.”

The Transport and General Workers Union is already working out its claim for 2005, but negotiations will only conclude in June.

At the same time, the Agricultural Wages Board is examining mooted changes to the classification of farm workers which would reward skills differently and could encourage more young people into the sector, said Mr Fiddaman.

Agricultural census figures suggest that 30,000-40,000 casual farm labourers could be affected by the increases.

Mrs Hewitt said: “Despite predictions to the contrary, the national minimum wage has not affected the job prospects of low-paid workers in the UK.

“Unemployment is at record low and a record 28 million people are now in work.”