Store chains 'use minimum wage to slash rates

Some high street stores are using the lower limit set by the minimum wage to slash rates of pay for younger workers, according to trade unions.

Ministers have been asked by the National Union of Students to investigate Pizza Hut and Forte Hotels, as well as shoe retailers, Russell & Bromley, Stead & Simpson and Oliver Timpson, for allegedly paying some recruits less than colleagues hired before the ?3-an-hour limit was introduced last month.

The NUS, which is being backed by Britain's biggest union, Unison, and the GMB general union, says that the wages practices for staff aged under 21, are no better than 'back street sweatshops'.

The companies are guilty of subverting the spirit of the legislation, the NUS says, because the ?3 an hour rate should be a minimum benchmark.

Andrew Pakes, national president of the NUS, has written to the trade and industry secretary, Stephen Byers, asking him to investigate. Mr Pakes said: 'The national minimum wage must enshrine rights for people in work, not serve as an excuse to lower pay rates for young recruits.'

The issue was raised in the Commons by Angela Smith MP last week. Barry Gardiner MP used an early day motion in April to highlight Pizza Hut's withdrawal of funds for late night taxi services for its staff, many of whom are under 18 and some of whom work as late as 1 am.

A team of government 'enforcers' is investigating complaints against firms refusing to pay the national minimum wage.

Yesterday the trade and industry minister, Ian McCartney, disclosed that of 400 calls to a government helpline detailing allegations of workers being paid less than the legal minimum, 45 were being followed up by investigators from the Inland Revenue. Mr McCartney warned there would be no hiding place for 'scrooge' employers paying below the new rates.