Minimum wage hike could cost jobs

THE increase in the minimum wage from €6.35 to €7 will cost thousands of jobs and act as a serious disincentive to the struggling small business sector, a leading employer spokesman has warned.

Due to come into effect on February 1, 2004, Mark Fielding, chief executive the Irish Small and Medium Enterprise Association (ISME) said the move came at a time when manufacturing in Ireland is shedding up to 500 jobs a week.

It has also led to a blazing row between ISME and IBEC the top employer body, who Mr Fielding accused of acting against the best interest of thousands of struggling small companies.