£10 Minimum Wage

[ExtraPineappleExtraHam]

I work in a shop. It's an independent shop with two stores, 30 members of staff, if Labour raise the minimum wage to £10 an hour this will result in staff cuts, cut in hours and perhaps an increase in our prices.
I'm a leftie but I can't see how this new minimum wage would work, it will make many small businesses face very difficult challenges. What about people on slightly more than the minimum wage, like supervisors, assistant managers. The employer won't put their money up as well so where's the incentive to go for promotions?
Also what about people who do difficult jobs like care work, nursing, work in the complaints department, empty bins. Won't they all just switch to doing something stress free and easy (like my job selling olives to middle class people) rather than do what they currently do?

Still haven't offered a reasonable explanation for wanting to know Light?

To see how much profit you're still making or will it be in the minus . I mean surely you've worked this out already as you're so sure your company will fold.

See, that sounds much less combative than it did earlier, I honestly thought you were having a pop at her. Sorry.

LightYears

We employ 3 people, 40 hrs a week. Businesse profit is £21k under the new system I would expect our profit to be £9k.

I think people have this idea that all business owners are profit hungry slave drivers who want to pay people as little as possible. This isn't the case for my employer or my partner's employer. They live in normal homes and have normal money worries but they don't get holidays and they have to be on call 24/7. They have all the pressures of worrying about price increases, competition, staff leaving/recruitment, fixing problems with equipment/building work. They need to take home a bit more than the rest of us otherwise why should they bother?

Kurskall's good then, still in the black.
Ham not at the expense of the workers, because without them you're fcuked.

Our business is fucked and so are most of our customers as can't seem to pass on increases in wages. We'd always paid above minimum wage but with the constant large increases it's nearly caught us up.

Also at 10 minimum that has to also push up supervisors and managers.

Currently turnover 775,000 per year. Profit last year was £17,000 - down from £75,000 year before. Costs keep going up. (Net profit)

This year will be about 12,000 if we keep it tight - increased wages 13,000 - .25 to keep above living wage - increased pension, increased rates - we are trying to rise prices and reduce costs but not a lot to cut.

We are also a B2B supplier A some point in the chain all these increases need to be passed onto the consumer and inflation will rise thus reducing the increased wages affect on living standards - or if businesses can't afford to run unemployment.

You have to remember the Government tax profits. Less profits, less tax, less services.

Big companies can afford to automate. You will see more automatic checkouts, more automated warehouse picking, more on-line shopping. Small businesses will end up going bust or retreating to the internet - so no employees - no rates.

Where I live at the start of the year the town had 4 bank branches - by July we will have 1.

LightYears

No I wouldn't say that's good, that profit has to pay for replacement/upgraded equipment, employee training. £9k isn't enough.

Thank you Honey x

SME's are the reason tax credits were invented or can certainly be used to maximum effect by supporting the business by paying some of its wage bill instead of the large companies using it to pay lower than a living wage.

Labour are offering to give SME's a business rate's and corporation tax cut and reducing the tax report thingy (brain fail today) from being quarterly to annually.

So if your business qualified as an SME I think Labour would be the way to go personally

Socialism should work for everyone not just the rich which is how its been used for decades.

Socialism never works for anyone.

Minimum wage is great unless you are a one man business.

Labour also wants to end zero hour contracts. It will mean many more people on zero hours - just not contracts.

Rent controls would be better. The problem is housing costs are out of control. People need government top ups to pay them! It's such a high percentage of someone's salary.
Rent control first:

It's certainly going to put childcare costs up, most workers in the sector earn much less than that.