“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, commenting on the new Living Wage that came into force on 1 April.

As previously announced in the budget, the National Living Wage 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% overall and by -8.9% 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.

“It can be challenging, in particular for small businesses, to grow and to cope with these changes especially in a long term perspective.”



Rupal Rawal, Press Officer Tel: 020 7307 3412 Mob: 07528 977 157 Press Office direct line: 020 7307 3422 Press Office fax: 020 7307 3406 Web: www.rmif.co.uk Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.