Wales at Work: 7 October 2008

The minimum wage.

From 1 October the minimum wage went up from £5.52 to £5.73 for people over the age of 22. This is an above inflation rise at a time when most public sector workers are taking a below inflation pay rise.

That means that it has risen by 59% since its inception in 1999.

Some businesses say they are struggling with the annual rises and the fact that they are not given adequate time to budget the rises each year.

There is also an issue with enforcement - the latest figures from the TUC found that 774 Welsh businesses had failed to pay the minimum wage, which means that there was nearly £800,000 of wages that weren't paid. And of those businesses none were prosecuted.

So how can we ensure that Welsh workers are getting paid adequately and that businesses aren't being penalised for the Westminster government's timing?

The Joseph Rowntree Foundation has suggested single people need to earn £13,400 a year to maintain a minimum standard of living - but that's still £1500 over the new minimum wage payment - so how do people survive on these wages?

And in the current financial climate how can labour intensive businesses absorb these wage rises?

Tuesday 23 September, 6.30pm or anytime for seven days afterwards on BBC iPlayer Radio.


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