Fleet News

Minimum wage means fleets will have to pay more: RMIF

FLEETS will have to pay more for essential services if the Government accepts the recommendations of the Low Pay Commission and implements a minimum wage of £3.60 per hour. Nearly a third of people employed as car cleaners, delivery and collection drivers, tyre and exhaust fitters and petrol forecourt operatives would be affected by a minimum wage set at this level.

This equates to £136.80 for a 38-hour week. Cory Roberts, director of employment affairs at the Retail Motor Industry Federation, said: 'Assuming the Government agrees on this level, it would cause considerable difficulties for many of our members as it is significantly higher than the minimum rate in our national pay agreement.. This could affect more than 30% of people employed in these jobs and could lead to fewer employment opportunities and reduced profitability for these companies.'

Approximately 1.5 million UK workers stand to gain from the increase, which the Institute for Fiscal Studies estimates will increase the national annual wage costs by abut £2.5 billion.

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