Tories to abolish minimum wage?

Christopher Chope, a Tory MP representing Christchurch, presented a bill before the UK Parliament (which is due for reading on Friday) to introduce exemptions to the minimum wage, which would effectively result in its abolition. He was supported by ten other Tory MPs. A campaign to defend the minimum wage has been set up and a there is a petition to sign.

Its unlikely that Chope's motion will get through, but is he kite flying? Are the Tories testing the water to see what the reaction will be? They wouldn't dare openly abolish the minimum wage, but by introducing exemptions or opt-outs and freezing the uprating, they could abolish it by the back door. We have to make our opposition known. Please sign the petition.

Businesses oppose regulation shock!

At today's Welsh Language LCO Committee, business representatives called for a voluntary approach to the provision of Welsh language services as opposed to a legislative one. These are the same organisations which have resisted most other forms of regulation from the minimum wage through to measures to protect the environment.

Regulation is needed where the market fails, and many Welsh speakers would agree that the market has failed them and the language. If we are serious about protecting the Welsh language and giving Welsh speakers the freedom to use Welsh in Wales, then there has to be some form of regulation.

The public consultation on the LCO closes on March 20th. Do you have a view? If so, either contact me at leanne.wood@wales.gov.uk, or you can submit comments to swyddfadeddfwriaeth@cymru.gsi.gov.uk or legislationoffice@wales.gov.uk

Minimum wage avoidance in Wales

I complained to the Information Commissioner after HMRC refused to provide information under the Freedom of Information Act. I asked for the locations of employers in Wales who were failing to pay the minimum wage. I've already blogged on previous investigations into minimum wage avoidance in Wales.

HMRC have now indicated that they have reconsidered their position. I have a summary of businesses breaking the minimum wage in the post-code areas covering Wales. According to HMRC between 2002-03 and 2007-08, 294 employers in the Cardiff postcode area were found not to be paying the minimum wage. In the Swansea postcode area it was 206, Newport 112 and Llandudno 81.

HMRC's U-turn is to be welcomed, but the information provided is still not detailed enough. Dodgy firms failing to pay their employees the minimum wage should be named and shamed. They are undercutting honest employers and exploiting workers - firms who comply with the law will want to see action taken. There have been no prosecutions in Wales for minimum wage avoidance, these companies have effectively got away with it! I can't understand the reluctance of the Westminster Government to prosecute companies who break the law or to make the details public. If naming and shaming is good enough for young people, why is it not good enough for criminal companies?

Minimum wage rise needs enforcement

The Welsh TUC has welcomed news that about 50,000 low-paid workers in Wales will benefit from next week's increase in the National Mininum Wage, which is going up to £5.73 per hour, from £5.52 (£3.53 from £3.40 for workers aged under 18). Its not surprising that Wales has a disproportionately high number of workers who will benefit from this rise. Of course, any increase in the minimum wage levels are to be welcomed. However, with fast rises in the cost of food and fuel, a 3.8% increase is not enough. The minimum wage is an important safety net to guarantee a basic income, but inequality will continue to grow unless the minimum wage levels are substantially increased. UNISON says that workers should get a minimum of £6.75, and that the practice of discriminating against younger workers should end. That would be a good start.

As I've reported previously there are only 8 minimum wage enforcement officers based in Cardiff to cover the whole of Wales. Firms who have been caught not paying have escaped prosecution. Not a great incentive to comply with the legislation! We need more enforcement officers and tough penalties for those employers caught breaking the law. Otherwise, bad employers will continue with bad practices and inequality will continue to grow.

(thanks to beauboD'Or for the picture)

Minimum wage not enforced by UK government

Almost 800 businesses in Wales have been caught paying workers below the minimum wage, but not a single one has been prosecuted.

Not only that, there are only 8 minimum wage enforcement officers employed to cover the whole of Wales, and they are all based in Cardiff.

New Labour are focussing their attention on benefit fraud while revenue and customs offices are seeing staff cuts and centralisation.

Overworked tax and minimum wage compliance officers can not keep up - so businesses and individuals are getting away with breaking the law.

Its time more effort was concentrated on the big money - the tax fraudsters and minimum wage law breakers. Is there any point of having rules if they aren't being enforced?