Wages Councils and Abolition: The TUC Perspective

The TUC is opposed to the decision by the British Government to abolish wages councils, which if successful will worsen the pay and conditions of the 2.6 million workers covered by them, and many other low paid workers who use the rates set as reference points. Drawing on theoretical literature and empirical research, explores the arguments for and against abolition and discusses the case for a statutory national minimum wage. Concludes by arguing that the case for abolition is far from proven on economic and social grounds, and that the introduction of a statutory national minimum wage, combined with other active labour market intervention by the Government, is needed to overcome the problem of low pay.