The squeeze on British worker wages has been the tightest since the middle of the nineteenth century – British workers have a right to be angry.
New research has found that the highest paid director in Britain, Simon Peckham, Chief Executive of Melrose, earned as much as a worker on the living wage within the first 49 minutes of his working day.
This is 2,238 times more than a worker on the living wage of £7.65 per hour who would have to work almost a decade to match his daily earnings.
Unemployment decline and outlook remains bleak
Data released by the Office of National Statistics (ONS) showed that unemployment has declined since records began in 1972.
Despite the current economic upturn which has created jobs, confidence is taking a hit with falling real wages.
More jobs and lower unemployment is still a muted victory for the British workforce as the lack of wage growth remains a prolonged issue.
The year-on-year increase in earnings of 0.7% is still dramatically below the rate of inflation. Many economists predicts that we will see wage growth start to come through over the next twelve months, however this has been forecast for some time and is yet to materialise.
Wages are the UK’s biggest concern
According to the research by TUC, companies with high inequality between top pay and the rest of their staff perform less well.
Commenting on a recent speech by Andy Haldane, Chief Economist of the Bank of England, General Secretary at TUC, Frances O’Grady, said: “The Bank of England’s Chief Economist is clear that workers have faced the longest and deepest squeeze in their wages since the middle of the nineteenth century.
“And what is worse is that those in the middle and at the bottom have suffered while those at the top have soared ahead with a 20% wages increase since 1997.”
constructaquote.com’s Inside-Out project
In light of the growing wage inequality, we at constructaquote.com have introduced a simple band strategy in order for employees to recognise their current job-roles in addition to highlighting what they can do in order to progress internally.
Providing clear and honest guide-lines to employees through our Inside-Out project is the key to ensuring that employees are aware of their value within the company in addition to promoting our commitment to our staff.
Do you think more should be done throughout the UK to ensure that staff are valued? Let us know in the comments section below.