Richard Walker, the head of Iceland Foods, has issued a stark warning to Labour, cautioning that a sudden increase in the minimum wage could lead to the bankruptcy of his supermarket chain.
Walker, who shifted his political allegiance from the Conservatives to Labour earlier this year, stressed that while it is “absolutely right” to improve working conditions and wages, any changes must be implemented gradually to avoid a catastrophic impact on businesses.
Labour, led by Deputy Prime Minister Angela Rayner, is planning a significant overhaul of workers’ rights, which includes proposals to increase the minimum wage, provide employees with protection from unfair dismissal from day one, and eliminate zero-hours contracts. These reforms are expected to be rolled out swiftly, with reports suggesting they could take effect as early as October 12.
Walker, however, has urged Labour to adopt a more cautious approach. “If Labour puts up the minimum wage and brings in day one rights, that’s fine, but it needs to be bled in slowly. If they turn around and say ‘the minimum wage is £15 now’, that would bankrupt us,” he warned.
He also addressed Labour’s stance on zero-hours contracts, acknowledging that while they might not be suitable for his business, they do serve a purpose for some workers who value flexibility. “Some people want them, they might be studying or want the flexibility. I don’t think it is as simple as being exploitative,” he said.
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