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.

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

By Paul Nelson

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