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minimum wage goes up again today with around two million workers expected
to receive a direct pay rise. The rate is changing from 4.50 pounds
an hour to 4.85pound for adults, and from 3.80pounds to 4.10pounds
for 18 to 21-year-olds. There is also a new minimum wage of 3pounds
an hour introduced for 16 and 17-year-olds. The Trade and Industry
Secretary Patricia Hewitt told the BBC, ‘We are committed to eradicating
poverty pay and today's new rates are another big step towards that.'
Speaking about the new rate for the 16 and 17 age bracket she said,
‘We want young people to stay in education or training but we must
ensure that those who do choose to work are not exploited.' Somewhat
predictably however, not everyone is happy. The Confederation of British
Industry (CBI) surveyed 520 organisations and found that a quarter
of them believed the rise would have a significant effect on their
costs, with larger employers especially worried about the impact.
The TUC General Secretary Brendan Barber responded saying, "The
CBI seems to be stuck in a minimum wage groundhog day. Every time
it increases they cry wolf on job losses: it's time they accepted
that the wage works." |
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