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Indie retailers face down living wage increases

In his letter to Labour MP Jonathan Reynolds, Fed president Mo Razzaq states that his organisation recognises the importance of providing a living wage for those working in small business and ensuring that staff receive a fair wage.

“We fully support the minimum wage the Labour government introduced in 1999 and its development into the living wage we have today,” he said.

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“However, we also encourage you to carefully consider the impact of higher wages on independent businesses in the months and years ahead so that our members can continue to thrive.”

Many have noted the pressure on independent wine businesses over the past year as increased wage bills dovetail with higher rents, business rates and utility costs.

In his letter, Razzaq also draws attention to the large number of the Fed’s members which are faced with rising energy costs and competition from larger supermarkets. In many cases, this means many business owners are currently drawing salaries which are “less than the living wage”.

Razzaq also expressed concerns about equalising the minimum wage across all age ranges. Paying lower wages for young, inexperienced workers reflects “the additional investment in training that they need”, he said. 

“Furthermore, many [small business] goods tend to be price marked, meaning operators are unable to increase prices to cover additional payrolls costs, which also include National Insurance and pension contributions.

“As always, we feel that there is a valuable balance to be struck between the welfare of employees and the vital sustainability of our smaller shops, so wages can be afforded and paid in the first place,” Razzaq concluded.

• retail
• small businesses
• living wage
• SMEs
• The Fed