Boss of Deeside based Iceland warns Labour: Rapid minimum wage hike could bankrupt business

The boss of Deeside-based supermarket chain Iceland has issued a warning to the Labour Party that a ‘shock’ increase in the minimum wage could ‘bankrupt’ his business, writes the Daily Telegraph.

Richard Walker, who switched his support from the Conservatives to Labour earlier this year, emphasised the need for a gradual approach to increasing employee wages to avoid what he described as a “disastrous” impact on businesses.

Walker supports Labour’s efforts to overhaul workers’ rights, led by Deputy Prime Minister Angela Rayner. These efforts include increasing the minimum wage, ending zero-hours contracts, and providing protection against unfair dismissal from the first day of employment.

However, he stressed that these changes should be introduced gradually.

“If Labour puts up the minimum wage and brings in day-one rights, that’s fine, but it needs to be phased in slowly,” Walker said. “A huge leap in the national minimum wage would be disastrous.”

Walker also defended the use of zero-hours contracts, which Labour has criticised as “exploitative”. He argued that while he doesn’t favour them for Iceland, they do provide flexibility for some workers, such as students.

Despite his warnings, Walker remains optimistic that Labour is open to business concerns. He praised Labour’s leadership for their accessibility and willingness to engage, contrasting this with his negative experiences dealing with the Conservatives, whom he described as a “closed shop”.

Reflecting on his departure from the Conservative Party, Walker criticised the party for being “out of touch” and resistant to diverse opinions. He vowed not to return to the Conservatives, questioning what the party had truly conserved over the years.

Looking ahead, Walker expressed hope that Labour’s proposed policies would encourage both business growth and workers’ rights, urging a careful and considered approach to any new legislation.