The Institute of the Motor Industry (IMI) has called on car dealerships and garages to increase the amount they are paying apprentices.
The organisation's CEO, Steve Nash, is due to address senior business figures at the IMI's annual dinner on Thursday 12 March. One of the focal points of his speech will be apprentice pay, which he wants to be increased by more than 70 per cent to compete with academic career paths.
For any car dealership or garage hiring apprentices, there are several important considerations to make above and beyond how much the new staff will be paid. Assessing whether they can be added to a road risks insurance policy and ensuring they are included within an employer's liability cover, as part of a combined motor trade insurance policy, is also going to be key.
Nash is expected to tell attendees at this week's dinner that they ought to increase starting salaries from the legal minimum set by the government of £2.73 to £4.73 per hour. He will illustrate that far from eating into business' profitability, this could actually make firms money as it could help in attracting the best young talent to the industry.
Nash is quoted as saying: "The industry is telling us it struggles to attract the highest quality school leavers into training to help overcome the technological challenges it faces over the next decade. This demand cannot be met while the industry continues to pay apprentices the legal minimum of £2.73 per hour across the board."
