BHA slams TUC minimum wage rise proposal
01 November 2002 by Christina Golding
The TUC put proposals to the Low Pay Commission (LPC) this week for a substantial increase in the minimum wage to a level that the British Hospitality Association (BHA) says is "unsustainable" by hotel and restaurant businesses.
The TUC has requested that the LPC considers a target of £5-£5.30 an hour by 2004. The current rate is £3.60 for 18- to 21-year-olds, while the full adult rate is £4.20.
The TUC argues that so far the introduction of the minimum wage has had no negative effects on the UK economy.
But the BHA claims such an increase would be damaging.
"If these businesses are to experience a 24% increase in wage costs, they will either have to slough off staff or increase prices, or both," said a spokesman.
