Licensees and pub companies could be hit with an increased wage bill if the government accepts the TUC's call for a further increase in the minimum wage.
The TUC wants the minimum wage to rise to between £5 and £5.30 per hour by October 2004 and has called for the adult minimum rate to include workers from the age of 18 upwards. It has also called for the protection of 16-17 year olds who are currently not covered by the minimum wage legislation.
Low-paid workers from the age of 22 currently receive a minimum rate of £4.10 per hour while 18-21 year olds have a rate of £3.50 per hour. Both minimum wages are set to be increased by 10p an hour in October this year.
Tony Payne, spokesman for the Federation of Licensed Victuallers Associations, is happy with the current minimum wage rates. He said: "Many licensees aren't earning the minimum rates themselves. The TUC needs to understand if they want to put thousands of people out of work they are going the right way about it."
John Monks, TUC general secretary, said: "Contrary to the views of those who opposed the policy, there is no evidence to suggest the minimum wage has had any negative impact on employment, while it has delivered major gains for Britain's lowest paid workers. But now it's time to be bolder and grasp the opportunity to make it an even more effective weapon against poverty by increasing the minimum wage to between £5 to £5.30 an hour."