A fair day’s pay for a fair day’s work is how the old phrase goes. But how much is fair?
That is the question that faces the Government each time it moves to adjust the national minimum wage.
In boom times it is an easy decision for any politician to make garner popularity at the ballot box by providing financial support to those with the least in society.
But in what are straitened times, the decision becomes much more tricky.
With growth in the UK economy currently marginal at very best, the imposition of an extra pay burden on business is hardly going to be a populist move for any government to make.
For many small and medium-sized firms which are already struggling to make ends meet with increasing fuel and energy costs, squeezed margins and low demand, the prospect of facing additional staffing costs could be the final straw.
Business Secretary Vince Cable was forced to walk the tightrope this week between ensuring workers’ rights and keeping the business community happy.
He decided on a 12p increase in the adult rate taking the legal minimum hourly pay to £6.31 while also ordering a 5p hike in the 18- to 20-year-old rate and a 4p increase in the level for 16- and 17-year-olds.
Controversially, Dr Cable decided to reject a recommendation from the review body the Low Pay Commission to freeze the apprentice rate and instead ordered a 3p rise.
The tough decision taken, the Business Secretary now has to ensure his Government’s directive is taken seriously by companies up and down the country.
There is strong evidence that a significant number of employers are flouting the law regarding the rate they pay apprentices for their services.
That behaviour cannot be tolerated.
Serious sanctions must be levied against those firms which fail to comply with their legal duties towards the lowest paid.
The private sector has a crucial role to play in the rebuilding of the UK economy, but it must not happen at the expense of the ordinary worker trying to make ends meet.
However difficult it may be for struggling companies, the national minimum wage is a vital piece of legislation that underpins the right to a fair return for a hard day’s graft.
A motivated workforce is the cornerstone of a strong and upwardly mobile economy, and that force for good must not be underestimated.
For executives who are sitting in boardrooms looking to make efficiency savings, scrimping on a few extra pennies for workers often representing their companies on the front line may prove to be a false economy in the long term.
That is not fair on anyone.