National Minimum Wage - CSSA calls for restraint

In advance of giving evidence to the Low Pay Commission, the Cleaning and Support Services Association (CSSA) called for restraint in the increase of the National Minimum Wage for 2009.
Andrew Large, chief executive of the CSSA, said: “In common with many sectors, the UK contract cleaning industry is currently under strain as the wider economy moves towards recession. Cleaning companies are concerned that an excessive increase in the National Minimum Wage will have adverse effects on both businesses and their workers. We call on the Low Pay Commission to show restraint and balance the needs of workers and businesses when making their recommendations to Government.”
The CSSA has identified that an over ambitious increase in the National Minimum Wage brings with it the following risks: Lower take home pay for cleaners, as clients cut hours worked; Damage to company profitability as margins are only at 4% as present, with the risk of company failure; and An increase in the informal economy and a rise of ‘gangmasters’ in the sector.
Andrew Large added: “The UK cleaning industry believes that a moderate increase in National Minimum Wage would be a justifiable balance between the needs of business and the needs of cleaning workers. As inflation is set to fall in 2009 any National Minimum Wage increase planned for October 2009 needs to take into account the views of the situation then - and not the conditions that are currently faced.”