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National
minimum wage increases 15/03/04
15
March 2004 - The Government has accepted the Low Pay Commission's
recommendation that the adult minimum wage rate should be
increased to £4.85 and the Development Rate (for 18-21
year olds) to £4.10 in October 2004.
A
minimum wage of £3.00 an hour will be also be introduced
for 16 and 17 year olds in October 2004. The Low Pay Comission
advocated that the current exemption from the minimum wage
for apprentices aged under 19 should be retained. Participants
on specified pre-apprenticeship programmes should also be
exempt from the 16-17 year old rate.
The
Chair of the Low Pay Commission, Adair Turner said:
"In our fourth report, published in March last year,
we recommended minimum wage increases for October 2003 and
October 2004. We wanted to give business enough notice of
the increases to help them to plan ahead. But we also believed
it was prudent to review the rates for October 2004 nearer
the time, in the light of prevailing economic circumstances.
We have now completed that review. We confirm our original
recommendations. We believe it is right to have a significant
increase in the real value of the minimum wage, which will
bring benefits to many low-paid workers. While the increases
will be a challenge for many businesses, we believe they are
affordable, and can be achieved without damaging people's
employment prospects or the wider economy."
TUC
General Secretary Brendan Barber commented:
"The National Minimum Wage success story has defied the
doom-mongers who said it would cost millions of jobs. Since
it was launched five years ago the number of people benefiting
from the Minimum Wage has at least doubled and employment
has reached record levels. Skills shortage to drive training
budget increases
26 April 2004 - Greater confidence in the economy, along with
fears of skills shortages, is leading to more concerted investment
in training and development. This is one of the main findings
of the Training and Development Survey 2004 conducted by the
Chartered Institute of Personnel and Development (CIPD) in
England.
The
survey, launched last week at HRD 2004, showed that:
There was little change in the size of training budgets between
2002 and 2003 but one in three private sector training managers
expected to see an increase in their training budgets during
2004;
81% of organisations have a training budget - indicating an
acceptance of the "training means business" case;
Almost
a third (32%) of respondents said that people in their organisation
received, on average, more than five days training per year.
But almost one in five (18%) received less than three days
training per year.
Warning
that extra investment in training is essential in order to
meet future staffing needs, Jessica Rolph, CIPD Learning,
Training and Development Adviser: "If anticipated increases
in training budgets do not materialise, current skills shortages
could translate into wage inflation, leading to adverse implications
for interest rates, growth and the economy as a whole.
"Economic
uncertainty has led to a 'wait and see' approach to investment
in training, but there is a danger that employers have not
invested nearly enough in anticipation of impending skills
deficiencies. A failure to invest now could leave employers
in many sectors short of skilled labour, or needing to offer
unsustainable salaries in order to fill vacancies for skilled
workers."
Survey
responses from the public sector showed a surprising disparity
with the private sector with 30% of public sector training
managers reporting a decrease in their training budgets last
year (compared to 27% in the private sector)> Just over
a quarter (26%) also expected their budgets to decrease next
year (compared to only 17% in the private sector).
Jessica
Rolph continued: "The Government has invested heavily
in public services over the last year, and yet training budgets
appear to have fallen. If, as it seems, the public sector
is diverting money away from training and in to pay awards
in order to tackle recruitment and retention difficulties,
they are taking a short-term approach which could store up
problems for the future.
"As
the private sector recovers, competition in the labour market
can only increase, so reductions in public sector training
budgets are ill advised. It would be ironic if the Government's
investment in public services were to be undermined by a focus
on pay rather than training, leading to services suffering
because the public sector is failing to equip staff with the
skills to do the job."
Other main findings:
Training
spend
Average training spend per employee is higher in smaller firms
(possibly due to economies of scale for larger employers):
Size of firm = 25-49
Average training budget = £33,833
Spend per employee = £884.06
Size of firm = 50-99
Average training budget = £58,504
Spend per employee = £878.82
Size of firm = 100-249
Average training budget = £111,658
Spend per employee = £660.62 Size of firm = 500+
Average training budget = £970,429
Spend per employee = Not available
Benefits of learning
Survey
respondents rated immediate job demands most highly when asked
to rate the benefits of training to their organization, including:
- improvements in competence (62% said this was "a great
benefit")
- behavioural skills (61%)
- technical skills (61%)
- quality of service (61%)
These responses contrasted with the lower ratings given for
general organisational benefits, such as:
- job satisfaction (33%)
- staff retention (29%)
- raised commitment (27%)
Training
and time constraints
Time pressures meant that 77% of respondents had to provide
training in short, 'bite size' chunks. The same proportion
also provided more learning materials that employees could
use at times convenient for them.
86%
of respondents had contact with further or higher education
institutions and 81% had dealings with Investors in People,
but only 33% had contact with Sector Skills Councils and just
28% had dealt with their Regional Development Agency.
- 30% rated their Learning and Skills Council (or Education
and Learning in Wales) as poor
- 38% rated their Sector Skills Council as poor
- 43% rated their Regional Development Agency as poor.
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