Minimum wage bill has no exemptions

By Angela Jameson

The hospitality industry has failed in its bid to have regional variations in the national minimum wage.

The National Minimum Wage Bill, published last week, makes it clear that exemptions sought for the hotel and catering industry by trade associations will not be given.

"The bill will enable us to introduce a minimum wage which is as simple and universal as possible. It will be a single rate that will apply to all regions, sectors and size of firms," said Margaret Beckett, President of the Board of Trade.

Stephen Moss, vice-president of the Restaurateurs Association of Great Britain (RAGB), said it would be a mistake not to reflect the genuine regional differences that exist, but added: "The implication seems to be that it has to be a lower figure, which has advantages and disadvantages for the industry."

Bob Cotton, corporate affairs director at Gardner Merchant, said that the absence of provision for regional differences meant that the company now wanted a lower national rate.

He said: "It's better to start at a modest level that can be increased in subsequent years, rather than introduce it at too high a level, which would immediately cost jobs."

The bill does, however, allow lower rates for trainees and young workers under 26, which concurs with the RAGB's position in its recent submission to the Low Pay Commission.

"If lower rates weren't allowed for trainees they would be shooting themselves in the foot," said Moss.

Employers will find the legislation difficult to circumvent because fines and even criminal prosecution could be used for those that flout the law. Martin Couchman, deputy chairman of the British Hospitality Association, said: "The enforcement mechanisms are possibly more draconian than we had expected."