Minimum wage rise ‘would hit small businesses’

One of the leading mouthpieces for the small business community has called for a three-year minimum wage freeze to allow SMEs more time to continue their recovery and gain further certainty on labour costs.

While it has welcomed the establishment of the Low Pay Commission the Ibec-affiliated Small Firms Association (SFA) has said an increase is not needed at this point. The commission is due to deliver its recommendations on the national minimum wage to the Government during the summer.

Speaking at the weekend, SFA chairman AJ Noonan said: “The National Minimum Wage Act 2000 clearly sets out the factors which should be assessed as part of any review; namely inflation, movement in the earnings of employees, level of unemployment and employment; national competitiveness; and relevant exchange rate movements. On the basis of an assessment of these indicators, there is no rationale for increasing the national minimum wage at present.