Link to this page: http://www.socialistparty.org.uk/issue/540/6228
91% of pay deals are below inflation
'PAY SPECIALISTS' Industrial Relations Service (IRS) have reported that only around 9% of all pay deals agreed between bosses and workers in the three months to May 2008 were settled above the cost of living rise as monitored by the Retail Price Index (RPI). A massive 91% were getting pay deals that did not keep up with the cost of living!
The RPI is a more accurate measure of price inflation than the official Consumer Price Index - it includes some housing costs and is less weighted towards more 'luxury' consumer goods.
IRS come to the conclusion that "employers have gained the upper hand in pay negotiations" as below-inflation pay deals "are a reality for the majority of workers."
Such statistics from 'experts' largely confirm our feelings; they probably won't surprise many workers.
Every workplace has its own 'pay specialists' ie workers who get a monthly or weekly wage slip and notice that prices are rising far faster than their wages.
The employers are putting the squeeze on workers' pay to cut costs and maintain profits. Workers have been forced into pay battles just to try to keep up with inflation.
In The Socialist 2 July 2008:
Socialist Party campaigns
Socialist Party news and analysis
National Shop Stewards Network
Campaign for a New Workers Party
Socialist Party LGBT
International socialist news and analysis
Socialist Party workplace news