Mandelson rounds on small business wage abusers

Small businesses who fail to pay employees at least the statutory minimum wage are the target in a new UK-wide campaign kicked off today by business secretary Lord Mandelson.

The facts:

The ‘It’s Your Call’ road show, which helps underpaid staff to get advice on how to shop scrooge bosses, launched in Downing Street today and will tour the country for the next three months, stopping in a total of 28 towns. 

Lord Mandelson used the event to remind small business owners of tougher penalties for anyone caught paying below the minimum wage from April next year. Employers will face unlimited fines instead of the current £5,000 cap.

The minimum wage was introduced 10 years ago when Mandelson was trade and industry secretary, the same post he occupies now under a different name. In October pay rates increased to £5.73 for workers aged 22 and over; £4.77 for 18-to-21 year olds and £3.53 for people aged 16 and 17.  

They said:

"More than one million workers benefited from its increase last month and it's important that we make sure everyone knows what they're entitled to, that's what this campaign is all about,” said Mandelson.

"Of course, most businesses treat staff fairly, but the small number who cheat their workers are flouting the law and undercutting honest competitors. Our changes will make sure everyone caught not paying their workers properly faces a stiff penalty - we are determined to ensure workers are paid fairly."

We say:

LaunchLab can remember being paid £2.30 an hour, so this is welcome news in many ways. We just hope that Mandy puts as much effort into supporting small businesses (some of who will struggle to pay staff because of the dire trading conditions), as he does supporting their staff.

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By News Desk  on   Nov 18,2008

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Keywords

Mandelson    politics    money    minimum wage    payment    late payment   

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