Bradford is traditionally a low-pay area but the national minimum wage is set to change all that. Business Editor Paul Parker reports.

MAILWAY NORTHERN is one of a number of Bradford firms prepared for the national minimum wage.

The company, which has grown in the 20 years since it was formed, is bringing the date of its annual pay award forward a month to comply with the regulations which come into effect on April 1.

By then all 150 workers at the firm, just off Manchester Road, will be on or above the £3.60 a week the Government says all workers over 21 must be paid.

Mailway Northern will not see its costs rise much as it brings itself into line. The firm announces its pay settlement, negotiated with the union USDAW, every May.

Bosses and union reps held discussions on the Minimum Wage last May and June and managing director Richard Bramma says the company has been prepared for some time.

"We see the introduction of the minimum wage as good news for us as it will force some of our competitors to pay more than the current £3 an hour and push up their costs. This will place us all on an even playing field."

But textile union boss Peter Booth wants a higher minimum wage. He said: "The vast majority of our members are paid more than £3.60 an hour - some up to £4 - but that is not good enough because what we really need is a living wage, not just a minimum one."

Firms who fail to comply with the law will be inspected by officials from the Department of Trade and Industry and made to do so.

A study by Bradford Chamber of Commerce found that a small proportion of workers in 28 per cent of Bradford firms -- particularly in the textiles and packaging industries - would benefit from the pay increase.

Chamber director Sandy Needham said: "Our survey showed that had the minimum wage gone higher than £3.60 many firms in Bradford would have suffered.

"There is also the danger of wage inflation where some workers already on, for example, £3.80, also want a pay rise because those paid less than £3.60 have received a pay increase."

David Wilkinson, chief executive of Bradford & District Training & Enterprise Council, said it would have been better if the Government had listened to calls for regional variation. "This area will be hit more than others because in London, for example, they are used to paying more than some firms do in the Bradford district."

Damian Ward, lecturer in economics at Bradford Management Centre, says hotels, catering, retailing, leisure and textiles sectors will be affected in Bradford whereas in the country it will have a fairly limited impact.

"Research in the USA showed that the Minimum Wage created employment in a state where it was introduced."

Adrian Fern, the Midland Bank's Bradford area business manager, said: "We have found that most small businesses are addressing the minimum wage head on. It does mean an unwelcome increase to their cost base but most firms are responding by either trying to increase productivity or reducing their overheads."

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