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Press Release 01 April 1999 LOW PAY COMMISSION WELCOMES HISTORIC INTRODUCTION OF NATIONAL MINIMUM WAGE The Low Pay Commission today warmly welcomed the introduction of the UK’s first National Minimum Wage. All 9 members of the Commission said that they were proud to have played their unique role in recommending the level of the first National Minimum Wage. The Commission’s report last May had been accepted by Government, and the new National Minimum Wage is based on their recommendations. George Bain, chairman of the Commission, said that chairing the Commission had been one of the most significant pieces of work he had undertaken in a lifetime in industrial relations. "It heralds a fundamental change to the labour market in the UK. There will be a floor to wages for the first time in this country, eradicating the worst cases of exploitation." Professor Bain argued that the level of the National Minimum Wage was broadly acceptable to employers, while making a real difference to low-paid workers. The Commission had listened carefully to the businesses affected and to low-paid workers. They had travelled throughout the UK, and took seriously what they had heard and what they had learned. He praised the commitment of his fellow Commissioners. "We come from both sides of industry and from academia. All Commissioners worked together to make sure that our unanimous recommendations were sound, based on rigorous analysis, an understanding of the sectors most affected, and good sense. "1 April is an historic occasion, but it is only the start of the process of making the National Minimum Wage an integral part of the labour market in the UK." The Commission has now been asked by Government to monitor the implementation of the minimum wage, and report to the Prime Minister and the Secretary of State for Trade and Industry by December. "So we will be continuing to listen to employers and workers. Our advice to Government in December will reflect the determination of all Commissioners that the minimum wage becomes an effective and respected aspect of the UK’s labour market." Notes to Editors 1. The Low Pay Commission is a statutory body whose role is to advise the Government on the National Minimum Wage. 2. The Commission has produced four reports. These are available from the Stationery Office Bookshops or the Commission’s website at: http://www.lowpay.gov.uk 3. The members of the Low Pay Commission are: Adair Turner (Chairman), Vice Chairman, Merrill Lynch Holdings Ltd; Professor William Brown CBE, Professor of Industrial Relations, University of Cambridge; David Coats, Head, Economic and Social Affairs Department, Trades Union Congress; John Cridland, Deputy Director-General, Confederation of British Industry; Paul Gates OBE, General Secretary, National Union of Knitwear, Footwear and Apperal Trades; Ian Hay OBE, Chairman, Food Trade Association Management Professor David Metcalf, Professor of Industrial Relations, London School of Economics; Margaret Prosser OBE, Former Deputy General Secretary, Transport and General Workers Union; and Angie Risley, Human Resources Director, Whitbread PLC. 4. The National Minimum Wage for those over 21 is £4.50 per hour. For those aged 18 to 21 or over 21 but in the first six months of a new job with a new employer and receiving accredited training, the rate is £3.80 per hour. The Government has accepted the Commission's recommendation that subject to confirmation in early 2004 - there should be further increases to £4.85 and £4.10 from 1 October 2004. Low Pay Commission Elizabeth House 39 York Road London SE1 7NQ Tel. 020 7855 4553 Low Pay Commission Terms of Reference The Commission is asked to: i) monitor and evaluate the introduction and impact of the national minimum wage, with particular reference to the effect on:
The Commission is asked to report to the Prime Minister and the Secretary of State for Trade and Industry by December 1999. | |
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