Competition for labour pushes up minimum wage

More companies are paying staff higher than the national minimum wage because of the competition in the tight labour market.

A survey by the Independent Data Services shows that in general employers are paying £4 an hour, 30p more than required, because of the competition for staff.

All the large pub retailing companies – Allied Domecq, Bass Leisure, Scottish and Newcastle and Swallow Inns – have ditched a training rate scheme because in an industry with a high turnover of staff it was becoming increasingly difficult to retain staff.

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The survey also states that there is no negative effect on wages due to the national minimum wage.

By Paul Nelson