Christopher Adderley’s letter about the living wage and how it affects businesses (The Argus, October 3) is only part of the equation. Undeniably, some companies could afford to pay more but there are a lot out there which can’t.

Not all companies are making huge profits. I work for an engineering company which supplies precision-turned parts to a variety of sectors. When the recession of 2008 started we had to make eight people redundant over three months and went on a three-day week for the best part of a year.

These cuts were made to try to stay in business and not have to put a further 32 people out of work.

We’re still in business but it’s a struggle to make a profit and the employees, from the top down, have had very little in the way of pay increases over the past five years.

An increase from the current minimum wage to £8 an hour is equivalent to a 25% increase.

Most companies have a wage structure relevant to various skill levels and responsibilities – differentials in wages are a necessity.

An increase of this magnitude could have a knock-on effect with serious implications.

Simplistic statements display a lack of economic knowledge.

Someone once said, “One man’s pay rise is another man’s redundancy.” I have no doubt there would be plenty of the latter if the minimum wage went up.

Sam Cooke, Crest Way, Portslade