Minimum wage may push demands

Manufacturers paying more than the minimum wage could be hit by knock-on wage demands from their staff keen to maintain differentials. A report by the Institute for Manufacturing says that just 4.5% of manufacturing jobs pay less than the £3.60 hourly minimum. However, higher-paying sectors such as engineering and chemicals could be affected if workers […]

Manufacturers paying more than the minimum wage could be hit by knock-on wage demands from their staff keen to maintain differentials.

A report by the Institute for Manufacturing says that just 4.5% of manufacturing jobs pay less than the £3.60 hourly minimum.

However, higher-paying sectors such as engineering and chemicals could be affected if workers earning just above the threshold try to maintain their wage differential.

IFM economist Elaine Barnett said: `For many manufacturers it will be increments for workers in the bands just above the minimum that determine the real cost of the national minimum wage.’