What do you think about companies raising prices to pay the newer minimum wage?
 

I kinda see it as counter-productive tbh, if every company raises their prices then essentially the minimum wage becomes too low again.

It's especially annoying because a lot of these companies have profits in the millions, surely it wouldn't hurt to have a small reduction in profit to pay workers fairly?

What do you think can be done about this?

I agree with your 'Counter Productive' comment, and also that 'something' needs to be done to stop this predictable farce.

Many SME's simply cannot afford to absorb this but - as you say - there are a hell of a lot of other companies who have multi-million pound profit margins and they SHOULD be prevented by law from hiking up the cost of their goods/services simply as a sneaky way of compensating themselves for being forced to pay their workers a fairer wage.

I have not much time Josh because I'm in and out (plastering) so cannot discuss this comprehensively, but I have been employed, self-employed and an employer, and I always paid my employeees above the min imum wage or 'going rate' because I have worked for peanuts when employed.

In brief; I actually think that the answer is for the Government to draft new legislation which COMPELS employers of a certain size (to be ascertained) to make all employees shareholders. If a company grows into a multi-million pound entity then it is with the aid of its workforce so it seems fair to me that the workforce should enjoy a fair share of the rewards of that success.

businesses are run for profit and not care about things such as this.

the skill is doing it but not blabbing on that you are going to do it

I wonder about their PR agencies I really do

The market dictates what a company can charge for its goods and services. If its highly desired and availability is sparse, the price will be high.... that's a world market. The market also dictates on the same basis what an individual will earn (taking in to account any mandatory minimums)

If a company were to ignore those market forces and exceed what its customers were prepared to pay, they wouldn't be able to employ as many people as they woudnt sell as many of their product/service.

A lot of companies will turn to the under 25s to avoid paying this

Tax Relief for small companies so that they can pay the new wage would be a wise move I think, with proper vetting of course so we know they're legitimate and not just aiming to evade tax.

Could be very bad. While Under 25s could then get jobs, it means that their wages won't be enough to pay the bigger cost of living.

I don't know what can be done, but we can't just let the free market dictate because it's proven not to work for working class families

Not very well thought out this minimum wage thing is it, am I surprised that it's the largest companies with the biggest profit margins bleating? No.

Taxpayers already support businesses by topping up people's salaries with tax credits and other 'in work' benefits. Taxpayers are also funding plenty of people who don't work, many who haven't worked for a long time. Why should taxpayers also be required to underwrite businesses enabling them to pay less?

Me neither Kizzy, for me they are just plain greedy.

Also when has this present David Cameron led Conservative party ever really fairly and correctly thought things out over the last 5 years.

Well done Lidl!

'Lidl has said it will pay 9,000 of its UK workers at least the full living wage from next month as the first major high street name to embrace the higher pay campaign.

The German-owned supermarket chain said the move represented an average pay rise of £1,200 per year for thousands of staff, with all UK employees receiving at least £8.20 an hour in England, Scotland and Wales and at least £9.35 in London. It currently pays £7.30 an hour outside London and £8.03 in London.'

http://www.theguardian.com/business/...ll-living-wage

Yes, links nicely with my PR comment

Lidl PR working well here

Or...... they are simply being responsible employers?

Just as with a country's Fiscal Position - If the money is there then fine. If it isn't then we are left with that sad old Chinaman; No Kwan Doo.

Are Lidl going to take a profit hit? Or will their prices go up

Does it matter? You're a real raincloud of doom sometimes Cherie :laugh:

Yes Costa Coffee will raise prices
to cover the Wage increases
they have stated a few weeks back.


Only Lidl
will increase wages
but not put prices up.

Keeping all the Ex Tesco Customers


Josh its very normal to pass it it on so we pay more

i remember paying 50 cents for a soda out of a vending machine. I remember paying under a dollar for a gallon of gas. Inflation is crazy...

It's normal but it's retarded. Wages go up and hand in hand, the cost of living goes up, making the money in your pocket worth less than it was before wages went up. So no one is actually any better off at all.

....:cloud:

Quit whining Alex - you can still get a gallon of the stuff for under $3 if you shop around. In the UK a gallon of unleaded is (in US dollars) $7 - 8 and has been over $9...

That's not inflation, that's the US's history of massively subsidising oil product prices which is starting to lessen. Your gas was artificially cheap, in the same way that our cows milk is...

well it was much more expensive a few years ago...it's actually come down in the past year, significantly. Also the US should have cheaper gasoline, because we have all the refineries. even though other countries have plenty of crude oil, the US has lots of refineries, so it makes sense that we can get it for cheaper because there's less transportation required for the final product. Canada has a huge amount of oil, but they have no refineries.

also because of fracking, and natural gas being more available, people don't have to use oil for that anymore. so there is much more crude oil on the market, and much more natural gas on the market.

and i'm not whining! i don't even have a car! so i don't care much about gasoline prices. I care more about parking prices, because with my friends i always pay parking costs, since they are driving, and parking costs are outrageous! I've paid 15 dollars for just 2 hours of parking!

Yeah me either to be fair, wife is learning because there's only one bus every two hours from the tiny village I live in. I'd pay £10+ a litre, merrily, just to have a car at this point to be honest.

oh yea, that's sucks to be out in the country with no reliable transportation. I live in a major city and we have good bus service, but even that is a pain in the ass, and i hate riding the bus, mostly because of the crazy idiots that ride it too.

I will tell you though, UBER is amazing. SO many people are against Uber for many reasons, and i can sympathize, but i have to be honest, having Uber and Lyft has made life so much easier for me. I love it. I hate the fact that the big Taxi monopolies are trying to crush Uber.

Yes I appreciate that we may not feel the benefit, there are lots of variables to business costs it's not all wages costs for everything only ever go one way. It's the same when the govt say we're raising the threshold for tax but also raise VAT.
The difference here is it's putting the responsibility on the employer to ensure that work pays, working and still being reliant on a benefit to be able to meet living costs is the major difference with the living wage.
As there is increasing stigma attached to claiming a benefit in work as well as out the more people that are able to earn enough to function without state support the better.

And when they reach a certain level they lose their top up tax credits so it all evens out :shrug: I agree work should always pay more than benefits though