A limit is good because it makes employable adults compete a little less against eachother and shift some of the burden to perform better to the employer.
If companies can have wage slaves, who barely make a living with long hours, they will. Lower wage costs will make it easier to compete.
So for competion to remain fair and make a higher standard possible, you will need a level playing field and laws that apply to all.
The burden to perform is that a business has to make a product at a competitive price. Wages and secondary benefits are only a part of that equation.
If a company cannot reduce benefits, cut vacation days, pay lower wages, etc. it may have to, for example, cut management layers or innovate in order to compete better and still be succesful. Competition will have shifted a little further to other aspects of running a business.
Companies can do either or both of those things at any time. If the company chooses to cut wages or jobs on lower paid workers instead of cutting wages or jobs on higher paid workers, it's because the company will make more profit from doing so. If the company is instead forced to keep wages and jobs on lower paid, it will be to the detriment of the company. The company will lose money. And that means more job losses for everyone.
However, companies are cutting pay and jobs across their entire business. It's not just low-paid workers that are being affected by this recession; actually, it's the reverse.
If you can hire one man to do the job for two, working twice aslong, you can have twice as many potential candidates for the same position. The candidates effectively compete with eachother. They'll work for less.
1. Not everyone is willing to work twice as long, so the difference isn't such a simple arithmetic calculation.
2. If a company can employ a worker for £8 per hour instead of £9 an hour, it will save £1 per hour. That means that it can reduce prices on its goods, making its goods cheaper. It also increases the profits of the company, allowing it to employ more people. Additionally, cheaper goods means that the living costs of
everyone falls -- including those who are unemployed or employed in other lower paying jobs.
On the other hand, if a company has to pay £1 extra per hour, it has to charge more for its goods, meaning
everyone loses out -- including those who are unemployed or working other jobs -- by having to pay more for goods. It also means the company makes less profit, meaning it won't employ as many people in the future.
3. We're entering a recession, in which businesses all over the country are losing money and making massive losses. By forcing companies to pay more for labour than they need to, those companies will make even more losses. Companies who make losses can't afford to keep workers employed; they will make people redundant.