CBI: Firms must pay workers more

30 December 2013 Last updated at 04:11 ET

The head of the UK's main business lobby group has said too many people are "stuck" in minimum wage jobs, despite an upturn in the UK economy.

John Cridland, director general of the CBI, said that businesses had to deliver "better pay and more opportunities" for their employees.

He said most firms would expand their workforce in 2014 for the first time since the recession began.

But many people could not see progression in their jobs, he said.

Mr Cridland added: "As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze."

He added: "The good news is that wages will pick up in the year ahead, as growth beds down and productivity improves.

"But there are still far too many people stuck in minimum wage jobs without routes to progression, and that's a serious challenge that businesses and the government must address."

Rebuilding trust

In his annual new year message, Mr Cridland said businesses must support employees in "every part of the country" to progress in their careers and help young people get their first jobs.

He called for a vocational system, similar to Ucas, to help raise awareness about other routes to higher skills.

Mr Cridland said: "If 2013 was the year that business trust took a hammering on a range of issues from corporate taxation to energy prices, then 2014 must be the year that business leaders take action to rebuild that trust."

His comments came as the Chartered Institute of Personnel and Development (CIPD) warned 2014 had to be a "year of productivity" if earnings were to rise sustainably.

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