Unions demand minimum wage increase
Union leaders are once again demanding a minimum wage increase to £6 per hour by October 2008.
There is no doubt that the minimum wage system needs reform but that isn’t an answer. There should be a variable minimum wage; different for each city as in each city the cost of living is different.
I have already stated my system and here is an extract from that blog entry:
There would be a new minimum wage for big business only. The minimum wage for big business would be different for each city and would be calculated like this:
Average weekly rent
Average weekly power bill
Average weekly food bill for family of 4
So you find what the weekly bills are (see above) plus 25% then divide it by 48 (which is the minimum hours people should work per week) and you have the minimum hourly wage.
The 25% bit would be for entertainment or putting some away in the bank.
The minimum wage for small business would be the national average or 15% lower than big business if the national average is bigger in that city than the city minimum wage.
This would allow small businesses to compete with big business and workers wouldn't be exploited because they would be getting a fair wage.
Of course this new system could give less than the old in some places but then businesses would move there giving the local economy a boost.
I think a variable minimum wage would be a far better option than the system we have at present.