Wary over wage increase
December 1st 2008

In advance of giving evidence to the Low Pay Commission, the Cleaning and Support Services Association (CSSA), trade association for the UK contract cleaning sector, called for restraint in the increase of the National Minimum Wage for 2009.

“In common with many sectors, the UK contract cleaning industry is currently under strain as the wider economy moves towards recession,”says Andrew Large, chief executive of the CSSA.

“Cleaning companies are concerned that an excessive increase in the National Minimum Wage will have adverse effects on both businesses and their workers.

“We call on the Low Pay Commission to show restraint and balance the needs of workers and businesses when making their recommendations to Government in the New Year.”

The CSSA has identified that an over ambitious increase in the National Minimum Wage brings the following risks:

• Lower take home pay for cleaners, as clients cut hours worked.

• Damage to company profitability, as margins are only roughly 4% at present, with the risk of company failure.

• An increase in the informal economy and a rise of ‘gangmasters’ in the sector.

More articles from CSSA: