The arguments for not only greater punishments and
larger fines for employers not paying the minimum wage, but for the minimum wage
to be increased up to living wage levels, are coming thick and fast, and are
welcome.When the CBI chief sees the need for improvement in workers` pay, the
situation has to be serious, and leads inevitably to further points needing to
be addressed.
One is that Labour needs to be more pro-active
in this area, what many observers might consider their own territory, as there
is a danger that the other mainstream parties might upstage them. With both
Tories and Lib Dems struggling to retain their traditional voters, and with
political principles in the run-up to a general election mattering little,
Labour must pledge a substantial increase in the minimum wage. It could even be
on the cards for Clegg to do this, given his party`s sudden concern for workers`
welfare, and demand for £100,000 fines for employers not paying it.Miliband
needs to get in some populist announcements on the minimum wage, higher taxes
for the rich, and positive action against the City`s tax avoiders and evaders,
before campaigning for the European elections begin.
The other point is that raising the minimum
wage levels, whilst obviously being a start in the improvement of the standard
of living of many, is not sufficient on its own. Will it not, for example, lead
to employers taking on more part-time staff on zero-hours contracts, will large
employers like supermarkets and online suppliers not become more determined to
find loopholes in tax legislation, and will not exploititative landlords be more
inclined to raise rents further, in the knowledge that their tenants ` income
has risen? In view of the news about the massive pay hike for some university
vice-chancellors, perhaps it`s time to consider a salary cap, or at least a
three year freeze on all salaries over £100,000?
Hopefully, Jon Cruddas`s committees have been
doing some joined-up thinking on these issues, so some sharing of their
conclusions with the electorate, from the Labour leadership, would be welcomed.
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