Minimum wage: Round two is about to begin
It's happening. The promises that New Labour made in the days of political freedom before the General Election, when the party was in opposition, are beginning to be realised. And the electorate, once cheered by the thought of change, is now having to grapple with the details of implementation.
Seven months after the election, the much-flouted "honeymoon period" for the Government is drawing to a close. It's not that the legislators are tripping over their own policies, it's more that inconvenient (but familiar) outside influences, such as European exchange rates, the strength, or weakness, of Far Eastern economies and tension in the Gulf, are beginning to get in the way; get in the way of some decisions, but not all. Some fundamental policies - the minimum wage included - are going ahead as planned.
To its credit, the Government has been listening. It has been canvassing opinion on many subjects from many sources in many industries, and one hopes that this will see the passage of fair and balanced bills through Parliament. The trouble is that, in a balanced world, some people go up, others go down; some get what they want, others… well, others don't.
The Minimum Wage Bill has been published (News, page 7) and the President of the Board of Trade, Margaret Beckett, has made it clear that there will be one standard for the whole country, and that the regional differentiations that the hospitality industry had sought, or even the overall exemption that it had requested, will not be countenanced.
The industry has reacted with mixed emotions. There is still a lobby which insists that any kind of minimum wage will toll a bankruptcy knell for many small businesses, particularly those that already struggle to make ends meet in regions where trade is seasonal. On the other hand, there is a growing groundswell of acceptance, even support, for the principle of a minimum wage. The official advice of "It's going to come no matter what; better get used to it" has been generally accepted.
Hoteliers and caterers have to welcome the fact that the first hurdle in minimum wage implementation has been passed.
The debate is only half done, however. Laying down the ground rules is only the first part of the battle. The big question still remains: how much?
If there is to be no regional or industry variation, then at least the bureaucracy will be kept to a minimum. But let's hope that the Government continues to listen, and the final figure, whatever it is, does not cripple business and force up inflation. Things are happening all right, but we mustn't lessen the pressure for the industry's voice to be heard.
Forbes Mutch
Editor
Caterer & Hotelkeeper
