NFDA concerned about living wage effects on business

“The NFDA is concerned with the new National Living Wage and the impacts that it might have on businesses”, said Sue Robinson, director of the National Franchised Dealers Association which represents commercial vehicle and franchised car retailers across the UK.

The National Living Wage, which came into force on 1 April, was increased to £7.20 from £6.75 for workers aged 25 and older.  Several employers have already raised concerns and are now looking for other ways to cut wage bills, including reducing overtime and bonuses, and cutting employee benefits.

Robinson continued, “We do believe that employees must be properly rewarded and it is concerning that businesses looking for ways to counterbalance this rise in costs can resort to job losses or reducing staff working hours.

“The average salary for permanent staff in the UK decreased by -3.4 per cent overall and by -8.9 per cent in sectors such as retail. While temporary and contract staff at employment agencies reached a 13 month high in April, according to the latest figures from jobs site CV-Library and the Recruitment and Employment Confederation.”

NFDA’s statement shows how opinion is divided on this subject, other firms in the automotive aftermarket – Andrew Page – for example have come out in favour of not only meeting but exceeding the requirements of The National Living Wage.


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