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The impact of the national minimum wage on the apparel industry
Author(s) -
Undy Roger,
Kessler Ian,
Thompson Marc
Publication year - 2002
Publication title -
industrial relations journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.525
H-Index - 3
eISSN - 1468-2338
pISSN - 0019-8692
DOI - 10.1111/1468-2338.00240
Subject(s) - minimum wage , earnings , clothing , competition (biology) , business , clothing industry , labour economics , economics , finance , political science , ecology , law , biology
This analysis of the NMW’s initial impact in the apparel industry focuses on organisational and institutional factors in explaining the effects on pay and related issues. The NMW had a marked effect on national terms and conditions, in particular raising the minimum earnings level. At the local level, it impacted directly on the pay of a small number of employees in almost half the 42 organisations surveyed in the East Midlands and Northern Ireland. These tended to be the larger employing units facing foreign competition and selling into the domestic market. Also, in some workplaces, the NMW adversely affected the piecework system. The reaction of local management to these changes is discussed.