USDAW Backs Crackdown on Rogue Employers Who Fail to Pay Minimum Wage

9th January 2007

Retail union Usdaw is backing a government crackdown on the minority of rogue employers who ruthlessly exploit their staff by failing to pay the national minimum wage.

Millions of retail workers benefited from higher wages when the minimum wage was introduced by this government and Usdaw backs plans to fine bad employers £200 for each worker who doesn't get the minimum rate of £5.35 an hour for adult workers.

"The last raise in the national minimum wage was 30p and we feared some rogue employers might decide they couldn't afford to pass the increase on to their staff," says Usdaw General Secretary John Hannett. "This announcement makes it clear that the government is serious about prosecuting those bad employers who are happy to exploit vulnerable workers.

"Firms who don't pay the minimum are not just hurting poorly paid staff but seeking an unfair commercial advantage over the vast majority of employers who play fair paying their workers the minimum wage and above.

"Usdaw has been one of the driving forces behind substantial rises in the national minimum wage because it is right that retail staff have a decent living wage and we have been very successful in negotiating pay rates well above the minimum.

"But there is also a strong business case as all the research shows that well paid staff are much better motivated and have less absenteeism. We found no evidence that any company has been made bankrupt because of rises in the minimum wage.

"Any workers who feel they are being exploited can call a free confidential Revenue and Customs helpline on 0845 6000678 who will investigate any allegations and punish greedy employers who think they are above the law."