The Debate Starts On The Minimum Wage

The report suggests that £3 an hour is the probable level at which to set the minimum wage. The unions, however, prefer the a higher figure of around £4.50 an hour, a sum which is based on half of the average male income.

The reports publication co-incides with the conference of the Engineering Workers and Electricians Union, which is meeting in Jersey and will be addressed by the Deputy Prime Minister John Prescott.

Union leaders are eager for Labour to deliver on their election promise to set a minimum wage but Ian McCartney, the Employment Minister has so far released few details of Labour's proposals.

The unions themselves are not entirely united on how exactly to implement the minimum wage. One union leader Ken Jackson, has already expressed his concern that raising the income of the lowest paid may leave skilled workers little better off than those who have few skills and little training.

Speaking on Labour's plans, the general secretary of the Union of Communications Workers, Alan Johnson, highlighted Labour's commitment to set-up a Low Pay Commission which will help establish the figure of the minimum wage but has too declined to name a figure.

Mr Johnson will be resigning his position at the head of the UCW as he was elected as the Labour member of parliament for West Hull and Hessle last week.

With employers concerned that a minimum wage of over £4 an hour would put up costs and result in unemployment may lead the government to set the minimum wage at a relatively low level to test the waters. If the minimum wage's introduction is then seen to have little effect it could be increased later.

Whatever level is eventually arrived at, its implementation will help to establish the footing on which relations between the new government and the trade unions will be conducted.

During the election campaign Mr Blair warned the unions not expect any "favours" and it seems unlikely that the Government will set the wage at the figure the unions desire.