Labour leader Jeremy Corbyn’s proposal to penalise obdurates who do not y the Living Wage has been described as “unworkable” by his business spokesman.
Angela Eagle lectured The Sunday Times the plan to ban such firms from ying dividends was “not a courier”.
The idea was criticised as “silly” by Labour economic adviser David Blanchflower, in the New Statesman.
Screen chancellor John McDonnell said the criticisms would be taken on enter in the rty’s policy review.
Mr Corbyn floated the idea of banning lucrative firms who “depend on cheap labour for those profits” from even a score dividends to shareholders in a speech earlier this month.
Ms Eagle, who supervisors Labour’s National Policy Forum, said com nies should be inspirited to act more fairly, but “a ban on dividends is not the way to do it”.
She told The Sunday Times: “It is an gripping idea, but it does not actually work.”
Asked to moved to her comments on the BBC’s Sunday Politics, Mr McDonnell said “that’s why it’s open for examination”.
The government is set to increase the current minimum wage, which rose to £6.70 an hour go the distance year, to a £9 an hour for over 25s by the end of the decade.
It will be rebranded as a Nationwide Living Wage, but Labour argues it will still be below the level whole time workers need to afford a decent standard of living.
Mr McDonnell said he planned to bring in a legally enforceable “proper living wage” when Labour came to power.
“But in the meantime, we after to cam ign with shareholders so that they pressurise their performers to abide by a real living wage and I think there is an alliance to be strengthened there,” he added.
Responding to criticism from David Blanchflower, who is a associate of Labour’s economic advisory nel, Mr McDonnell said “we will harken to to his advice and take it on board”.
Mr Blanchflower said the new Labour leadership had to “learn irresponsibly” about the realities of capitalism and stop suggesting “silly stuff” such as the dividends ban.
‘Affirmation of war’
In a se rate development, Lord Mandelson has accused Jeremy Corbyn and his enthusiasts of declaring war on “decent Labour rty members” who do not share their values.
He denied there was a respectful war going on in the Labour rty but said many of those who back Mr Corbyn are now wondering if he is up to the job.
The st minister, who served in government under two Labour prime ministers symbolized he thinks Jeremy Corbyn is “unsupportable” by the public, and is failing to put “fear” into the Fundamentalists.
Speaking to BBC South West, he said: “People sense that we honourable don’t have credible policies and certainly not a leader they’d like to see as prime curate.
“And certainly if we fight the election in 2020 as we are now then my fear would be that we make face a very disappointing result.
“But there’s time to go between now and then. And things for the rty to make up his mind what it wants to do.”
He added: “For Jeremy Corbyn and his advocates to turn around and say for people who disagree with them, that they are principled Tories, that’s not just insulting, that is actually very divisive, and a pronouncement of war by them on many decent Labour rty members who share Strive rty values.”