The boss of one of the UK's biggest supermarkets has warned Labour that a "shock" minimum wage increase would bankrupt his business.
Richard Walker, the boss of Iceland who switched allegiances from the Conservatives to Labour before the election, said changes must happen slowly to avoid a "disastrous" impact.
"If Labour puts up the minimum wage and brings in day one rights, that’s fine, but it needs to be bled in slowly. If they turn around and say ‘the minimum wage is £15 now’, that would bankrupt us", he said in an interview with The Telegraph.
He added: "A huge leap in the national minimum wage would be disastrous. Of course, people should be paid as much as we possibly can. So let’s keep the ambition and keep pushing, but not have such a shock to business."
Labour intend to overhaul working practices by giving employees greater protection from unfair dismissal, end zero-hours contracts and increase the minimum wage.
But Mr Walker has warned that these changes could come at a cost and denies that zero-hours contracts at "exploitative".
"Some people want them," he said.
"They might be studying or want the flexibility. I don’t think it is as simple as being exploitative."
Despite the warnings, Mr Walker said the new cabinet is "very accessible", in comparison with the "closed shop" Tories.
He'd tried to run to become a candidate for the Conservatives prior to joining Labour.
"The way I was treated was very strange, blocking me and never giving me a reason.
"It was odd because I rather arrogantly thought they’d quite like people with real world experience and opinions of their own.
"But actually, they don’t. That’s what I realised. What they really wanted was cannon fodder, people who would keep their head down and do as they’re told and vote exactly as they’re told. It’s a sad reflection, really."