The Government has missed an opportunity to provide British manufacturers with greater certainty about the impact of the National Minimum Wage (NMW) on their businesses by failing to introduce a pre-determined formula for calculating future increases, according to EEF, the manufacturers organisation.
EEF has consistently argued in its evidence to the Low Pay Commission that future increases in the NMW should be determined by a formula, based on retrospective movements in basic rates of pay across the economy. This would enable manufacturers to plan for the resultant impact that these increases will inevitably have on their costs and remuneration structures through the need to maintain pay differentials.
Commenting on today's announcement by the Prime Minister, David Yeandle, EEF Deputy Director of Employment Policy, said:
"Whilst most manufacturers will be able to live with this increase, they continue to believe that a pre-determined formula should be used to set further increases. The Government has missed an opportunity to provide them with greater certainty about the future impact on their businesses which would enable them to plan accordingly."