Manufacturers reiterate call for National Minimum Wage formula

EEF, the manufacturers’ organisation, has re-iterated the need for a formula to determine future rises in the National Minimum Wage (NMW) to provide companies with some form of certainty about its potential impact. Whilst the majority of EEF members pay well above the NMW, they are concerned about the impact that future increases in the NMW will have on the costs of many of the outsourced services that they use.

Submitting evidence to the Low Pay Commission’s consultation which closed today, EEF has continued to argue that future increases in the NMW should be determined by a formula based on movements in basic rates of pay across the economy. This would then help manufacturers to plan for the direct and indirect impact that increases in the NMW will have on their costs and make any necessary changes to their remuneration arrangements to maintain differentials.

Commenting, EEF Head of Employment Policy, David Yeandle, said:-

"In these difficult economic times, it is even more important for manufacturers to have greater certainty about future increases in the NMW and the potential direct and indirect impact on their business. Increases in line with basic rates of pay across the economy will help to achieve this objective and ensure that future increases in the NMW reflect the economic circumstances of the time."

ENDS

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