Labour’s workers’ rights bill could push up prices and cost jobs, retail chiefs have warned.
The British Retail Consortium said the new rules ‘could add further complexity’ if they are brought in ‘without an eye firmly on the potential consequences for the cost of doing business and hence the cost of living’.
BRC chief executive Helen Dickinson said: ‘Prices are still rising, and many consumers remain under pressure.
‘Retail operates on thin margins yet has faced relentless tax rises in recent years.
‘Poor implementation decisions by government would stymie job creation and push inflation back up.’
Many retailers rely on part-time workers and temporary staff for seasonal peaks such as Christmas.
Retailers have sounded the alarm over a cocktail of rising costs and incoming red tape
Industry bosses are worried that the new rules, in particular a pledge to give workers ‘guaranteed hours’ and permanent contracts, will be counterproductive.
The BRC also sounded the alarm over young people being priced out of work after figures last month showed unemployment among 16 to 24-year-olds at an 11-year high of 16.1 per cent.
The BRC says the cost of employing 18- to-20-year-olds rose by over 20 per cent last year.
Labour raised the minimum wage for this age group from £8.60 an hour to £10 in April last year and it is due to go up to £10.85 next month.
The hourly rate is also rising for those aged 21 and over but by less as Labour seeks to equalise the two rates.
However, the surge in youth unemployment means this policy is now in doubt.
Many retailers also face sharp rises in business rates in April and stubbornly high energy bills.
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