We are often told that the minimum wage system works in the US. What is not stated is that exemptions exist for firms whose annual turnover is less than $500,000 (75 per cent of all UK firms have an annual turnover of less than pounds 100,000), and firms that employ fewer than 15 people (93 per cent employ fewer than 10, while 97 per cent employ fewer than 20).
In other words, just about every small business in the United States is exempt from the legislation. In any case the minimum wage level is set so low that the majority of firms already pay well over that figure. Failure to treat small businesses in the UK in a similar manner will result in massive unemployment in this sector.
Dr BERNARD JUBY
London SW1Reuse content