Rodney Bickerstaffe: "Who can honestly say this figure is not sweated labour?"

The commission, set up after the 1997 General Election, has also recommended excluding workers aged between 16 and 18 from the minimum wage.

It proposed a lower rate of pay at £3.20 for those aged 18 to 21.

Business leaders have described the figure as acceptable but if the government agrees to £3.60, unions are likely to argue against exemptions for younger workers.

'Sweat economy'

Bickerstaffe: Vowed to continue campaign

Rodney Bickerstaffe, general secretary of Unison, Britain's largest trade union, said he would continue to campaign for £4.61 an hour.

More than 40% of Unison's members earn less than £4.42 and the union says there is evidence which suggests that a minimum wage at that level could help create jobs.

Mr Bickerstaffe said: "Surely at the end of the 20th century to sweat someone in a rich nation like ours for as little as £3.60 an hour does not do credit to a people committed to fairness and social justice.

"The commission has had unparalleled pressure put on them by the government to ensure it's a low figure." "I hope it doesn't take as long to get a decent level as it took to get the minimum wage established in the first place."

Unions have feared that the government would cave in to industry and City pressure for a low minimum wage.

Adair Turner, CBI's director-general: "Anything higher would be clearly concerning"

Sir Colin Marshall, president of the Confederation of British Industry, described £3.60 as "acceptable" to employers.

Speaking at the CBI's annual dinner, he said: "We're in favour of exemptions for those below 19 years of age and those on training programmes," he said.

But he predicted that some areas of the UK would find it more of a burden than others.

Key Labour pledge

The BBC's Stephen Evans: "Unions may have to live with it"

A minimum wage, set with the help of a commission, was one of the Labour Party's key pledges in the 1997 General Election.

The party said it wanted to see employees protected after the previous Conservative administration abolished the Wage Councils.

Catering: One of the areas business leaders say will suffer

But Conservatives argue that a minimum wage will price many people out of a job.

Reacting to the proposed figure, the party's shadow trade and industry spokesman, Tim Boswell, said: "The minimum wage will affect jobs directly, especially in the catering and leisure industries.

"In short, people's job prospects (are) the likely long term losers."

Wages for young

If the government accepts the basic figure of £3.60, one of the key battleground when legislation is put before parliament will be whether or not young workers will get protection.

The Minister Without Portfolio, Peter Mandelson, is a key Labour figure who favours excluding younger workers from the wage.

Other ministers back a minimum wage framework similar to the recommendations.