The national president of the Fed (Federation of Independent Retailers) has written to the new Secretary of State for Business and Trade, Jonathan Reynolds, to highlight the impact of higher wages on smaller businesses.
In his letter, Mo Razzaq (above) says the Fed recognises the importance of providing a living wage for those who work in shops and ensuring that staff receive a fair wage.
He added: “We fully support the minimum wage the Labour government introduced in 1999 and its development into the Living Wage we have today. However, we also encourage you to carefully consider the impact of higher wages on independent businesses in the months and years ahead so our members can continue to thrive.
“As you will be aware, our shops are faced with rising energy costs and competition from larger supermarkets - leaving many of our members to actually pay themselves less than the living wage. Furthermore, many goods tend to be pricemarked, meaning retailers are unable to increase prices to cover additional payrolls costs, which also include National Insurance and pension contributions.”
Mo also expressed concerns about equalising the minimum wage across all age ranges, as paying a lower wage for young, inexperienced workers reflects the additional investment in training that they need and allows shops to be able to afford to employ vital younger staff as needed.
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