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Pay should be negotiated individually, says FSB

14/05/2009

The Federation of Small Businesses (FSB) has said firms should negotiate pay deals on a one-to-one basis.

The organisation has welcomed the government's decision to raise the national minimum wage by 7p, but warned even this small increase would be an added cost for some firms.

"Businesses should be free to negotiate pay levels with staff individually according to what is affordable during these tough times, rather than keep up with a one-size-fits-all pay rise," says its national chairman, John Wright.

By increasing the national minimum wage, the government has declared that from October 1st the rate for 18 to 21-year-olds will rise from £4.77 to £4.83.

Adult workers are also set to benefit - under the new arrangement, they will be paid at least £5.80 per hour.

Mr Wright claims this increase "will add hundreds of pounds to the employer's wage bills and could lead to employers having to reduce hours and possibly even cause further redundancies".

 

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