YOU would think from reading letters written by local trade unionists that the government sets the minimum wage.
Well it doesn’t, it is set by the Low Pay Commission.
Sitting on the commission are trade unionists.
In fact, the deputy general secretary of the TUC as well as the leader of USDAW sit on it along with representatives of employers and senior economists.
The commission has a very difficult job; it has to trade off setting a decent minimum whilst at the same time not discouraging employers from taking on workers.
To date they have done a remarkable job in creating an environment where we have a minimum wage, very high levels of employment and the fastest growing labour market in Europe.
Minimum wage rates have been disastrous in some countries, set too high they can wreck an economy.
Look at what has happened in Spain with 50 per cent youth unemployment.
Getting the balance right is no mean feat.
In fact, some successful economies like Norway, Switzerland and, until recently, Germany, don’t bother trying.
Setting the minimum wage is a delicate balance. It should not get hijacked by politicians more interested in getting elected than addressing the difficult issues sensible trade unionists in the commission have to grapple with.
Cllr Martyn Cox Westhoughton North and Chew Moor
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