Why do people only pay the minimum wage

Old_Slaphead

ILW wrote: »

All the time there is a benefits system that tops up wages, there is no reason for wages to settle at a true market rate. In most cases the taxpayer is subsidising the employer to pay low rates. Crazy.

You lift minimum rate then all differentials need to be considered too. Overall payroll costs go up companies pass these on, product selling prices increase - inflation increases.

Person on low wage, although they have had payrise, is still at bottom of pile and no better off as costs have risen too.

More calls for increase in minimum wage - so spiral goes on, ever upwards.

What is needed is the compacting of wages - top vs bottom.

ukcarper

stringsmk2 wrote: »

I ask this in reference to a cleaner that we had at one of our work sites.
He worked about 45 hours per week doing the cleaning, including a few other duties. He was a great worker yet the company only paid him 5.50 ph

I was therefore wondering why they couldn't just pay him, say, 6.50 or 7 an hour?

It would really make no difference at all to the bottom line, but you'd have a very happy cemployeewho would take even more pride in his job and feel worthwhile.

Because they can

Butterfly_Brain

I have worked as a cleaner. It was a second job to supplement the meagre wage that I earned in an office and I would never do it again - people treat you like S**T and only notice if you haven't emptied bins etc

tomterm8

stringsmk2 wrote: »

I ask this in reference to a cleaner that we had at one of our work sites.
He worked about 45 hours per week doing the cleaning, including a few other duties. He was a great worker yet the company only paid him 5.50 ph

I was therefore wondering why they couldn't just pay him, say, 6.50 or 7 an hour?

It would really make no difference at all to the bottom line, but you'd have a very happy cemployeewho would take even more pride in his job and feel worthwhile.

The minimum wage is not £5.50 an hour, it is:

• £5.80 per hour for workers aged 22 years and older
• a development rate of £4.83 per hour for workers aged 18-21 inclusive
• £3.57 per hour for all workers under the age of 18, who are no longer of compulsory school age

If a company can get someone to work for minimum wage, they probably will. This doesn't mean that getting the lowest possible price is actually the best strategy; merely that it is the default strategy.

lemonjelly

tomterm8 wrote: »

The minimum wage is not £5.50 an hour, it is:

• £5.80 per hour for workers aged 22 years and older
• a development rate of £4.83 per hour for workers aged 18-21 inclusive
• £3.57 per hour for all workers under the age of 18, who are no longer of compulsory school age

If a company can get someone to work for minimum wage, they probably will. This doesn't mean that getting the lowest possible price is actually the best strategy; merely that it is the default strategy.

They increased on 1 October tomterm8. What you posted applied to the rates as of 1 October 2009.

From 1 October 2010 the rates are:

Current NMW rates

There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates are:

• £5.93 - the main rate for workers aged 21 and over
• £4.92 - the 18-20 rate
• £3.64 - the 16-17 rate for workers above school leaving age but under 18
• £2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

The age at which you become entitled to the main rate was reduced from 22 to 21 on 1 October 2010. The apprentice rate was introduced on the same date.

<Cynic alert!>Interesting that the HMRC website hasn't updated this information

The_White_Horse

cleaners should be glad they get over inflated salary they do. if they took away the minimum wage and actually made most of the benefit scrounger brigade work, they would be lucky to get £1 an hour.

they are ten a penny no skill jobs that a 5 yr old could do. how much do they want????

ukcarper

The_White_Horse wrote: »

cleaners should be glad they get over inflated salary they do. if they took away the minimum wage and actually made most of the benefit scrounger brigade work, they would be lucky to get £1 an hour.

they are ten a penny no skill jobs that a 5 yr old could do. how much do they want????

It would be lovely living in your world as long as you don’t go out from behind your fortified walls.

tomterm8

lemonjelly wrote: »

They increased on 1 October tomterm8. What you posted applied to the rates as of 1 October 2009.

Thanks. That's interesting. I went off the HMRC website http://www.hmrc.gov.uk/nmw/. After all you would have thought the organisation tasked with enforcing the national minimum wage would know what it was.

shortchanged_2

I don't know what job you do The_White_Horse but perhaps all the cleaners in this country should stop working and then lets see what happens when you and others who share your opinion have to clean all the toilets and other stuff.
I'd love to hear you begging for them to come back then you hemorrhoid.

nomoreboomandbust

Butterfly_Brain wrote: »

I have worked as a cleaner. It was a second job to supplement the meagre wage that I earned in an office and I would never do it again - people treat you like S**T and only notice if you haven't emptied bins etc

I certainly noticed mine, she was Polish and well fit