The National Living Wage (NLW) is one of the biggest issues facing independent retailers. SGF recently met with the senior team from the Low Pay Commission – including the Chair of the LPC, Sir Christopher Norgrove – to highlight the impact of the living wage and to call for a freeze on further increases.
The Commission was visiting Dundee as part of a UK-wide programme of visits to gather evidence on the effects of the NLW. SGF presented the results of its members’ survey on the impact of the NLW on independent retailers. The results showed that increased employment costs was the biggest factor affecting a decision to lay off staff. 75% of respondents said that they were reducing staff hours as a direct response to the NLW. One of the most telling statistics from the survey, however, related to the age-profile of staff in the convenience store sector in Scotland – 80% of staff are in the 25 plus age range.
SGF Head of Public Affairs John Lee (pictured), commented: “We are beginning to understand why the NLW is having such a serious impact on the independent convenience store sector: 80% of staff are in the age group which have to be paid the NLW. This is leading to significant increases in wage costs across the sector with a serious knock-on effect on staff numbers and staff hours. We had a very positive and constructive meeting with the LPC and our sense is that they do appreciate the impact on our industry and are minded to be cautious about recommending further increases.”
