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Monday, December 15, 1997 Published at 22:44 GMT Talking Point Should workers be paid a minimum wage?
The British Government has published plans for a national minimum wage, which sets out the legal framework for a statutory hourly rate for low paid workers. The government made it an election pledge to tackle so-called poverty pay - very low wages in sectors such as catering where staff often rely on state benefits to top up their income. The final rate won't be decided until a special Low Pay Commission set up by the government makes its recommendations. The unions want a rate of over £4 ($6.40) an hour, but industry says that unless the rate is around £3 ($4.80) an hour, many jobs will be lost .
There is no reason why a minimum wage would make people lose their jobs. Employers will be faced with a choice of paying a decent wage or having no staff at all!
Anyone in favour of a minimum wage is ignorant of the real problems faced by employers in a cut-throat world. British unemployment is low because there is a flexibility in the labour market which allows jobs to be created even under difficult circumstances. It's better to have a job at any rate than live off the backs of other workers !
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