ISME brands wage rise proposals 'madness'

ISME, the independent business organisation, has described as "madness" the call by Mandate, in association with the social lobby group within the partnership process, for a further 7.3% increase in the minimum wage.

Mark Fielding, ISME chief executive, said a further increase in the minimum wage of this size "coming fast on the heels of the recent 10.5% increase, will have serious consequences for a significant number of small businesses".

He said it would particularly affect those businesses hiring part time and unskilled workers.

ISME cited their own research which showed 27% of SMEs indicated that they experienced difficulties as a consequence of the last increase in the minimum wage.

"A further increase would dramatically exacerbate the situation," said an ISME statement.

"By seeking the relevant increase, the trade union movement is once again breaking the spirit of the partnership agreement by demanding further exorbitant wage increases, which small business can ill afford."