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Real wages in the North
West still worth £2,500 less than in 2008
AVERAGE pay (median) in the North
West is still worth £2,468 less in real terms than it was in 2008; a
shortfall of £47 a week; according to new analysis published by the TUC.
The figures confirm that, despite some strengthening of wages over 2014 to
2015, workers in the region still have a long way to go to restore all the
earnings they lost following the longest squeeze on wages since records
began in the 1850's.
The average North West annual wage increased in real terms by £374 from 2014
to 2015; the 1st annual increase for several years.
However, current indications suggest that the wage recovery may already be
stalling. Monthly data on average weekly earnings from the Office for
National Statistics show that wage growth slowed in the second half of 2015.
The TUC warns that the government's plans to continue to hold back wages in
the public sector will be a significant drag on average wage growth. And
recent monthly surveys by the employment information service XpertHR suggest
that private sector wage settlements remain well below their pre-crisis
trend.
The TUC says that while forthcoming increases to the minimum wage have an
important role to play in improving wages for some workers, this is not
enough in itself. Concerted action from the government is needed to support
stronger wage increases for all low and middle income workers, not just
those at the very bottom.
However, the TUC warns that the government's Trade Union Bill will weaken
the power of workers to negotiate a fair share of economic growth through
decent pay rises. This could lead to slower wage growth becoming embedded as
a longer term problem, causing trouble not only for workers and their
families, but also for businesses that rely on their spending.
Instead of attacking workers and their representatives, the TUC is calling
on the government to engage with trade unions on a positive agenda to
improve both pay and productivity. This should include stronger collective
bargaining rights, modern wage councils to ensure that pay increases follow
productivity gains, and worker representation on remuneration committees to
bring back a bit of reality to boardroom pay.
TUC Regional Secretary Lynn Collins said:- "Working people deserve a
fair share of the wealth they create. But despite five years of economic
growth, the pressure on their living standards has barely let up. The
average annual wage in the North West is still worth nearly £2,500 less than
it was back in 2008.
The government must do the right thing for the economy, and the right thing
by workers. They should invest more in the skills and infrastructure the UK
needs for higher productivity. They should make sure that working people see
productivity gains in their pay packets. And they should work positively
with trade unions instead of attacking workers and their representatives
with the Trade Union Bill." |
