06 January 2017
Cambridge University’s Centre for Business Research has warned that real wages will remain stagnant for the next decade.
This is according to a study reported by the Independent, in which economists predicted that real wages in 2025 would barely rise above those in 2004 – a total of two decades of flat pay for UK workers.
“Nominal wages will keep pace with rising consumer prices but no more. Real wages in 2025 are expected to be only very slightly above the level in 2004 at the accession of the EU10 member states to the EU,” the authors warned.
This comes after the High Pay Centre labelled 04 January 2016 Fat Cat Wednesday to mark the day Britain’s highest earners surpass the annual salary of the average worker.
By lunchtime on Wednesday, £1,000-an-hour bosses had already taken more than the average £28,000 per annum wage.
The Institute of Employment Rights recommends that this trend for increasing inequality between the highest and lowest earners be curtailed by reforming labour law in such a way as to put upwards pressure on the wages of the average worker; and allow worker’s representatives to have a say on the pay of bosses.
Our proposals, which have been adopted by the Labour Party, primarily aim to shift the focus of employment law from statutory minimums to collectively agreed wages and conditions.