Government has shied away from the big decisions needed to reform top pay

Brendan Barber

Commenting today (Monday) on the government's proposals to reform executive pay, TUC General Secretary Brendan Barber said:

"Through its many consultations and speeches, the government has made a compelling case for radical reform of executive pay. It's very disappointing then to see that ministers have spectacularly failed to make any significant changes to the status quo.
"Whilst the Business Secretary has announced a few welcome tinkers to the current boardroom pay regime, he has shied away from the big decisions on all of the major proposed reforms, from worker representation to company pay ratios and open advertising for posts on remuneration committees.
"Over-paid and under-performing directors concerned about greater public scrutiny of their pay and bonus arrangements can rest easy tonight.
"Any hopes of reversing the damaging and growing pay divide between top executives and the rest of their workforce have faded after today's announcement."

Low pay deals and tax credit cuts adding to biggest income squeeze in generations

Commenting on the latest pay survey published today (Thursday) by Incomes Data Services (IDS), Midlands TUC Regional Secretary Cheryl Pidgeon said: “Wages are edging up as firms increase profitability but most pay deals are still less than half the level of inflation.
“The government is also piling on the financial pressure, with tax credits cuts coming in next week costing many working families thousands of pounds a year.
“Ministers are overseeing the biggest income squeeze in generations and doing precious little to help people.”

Pay rises not enough to prevent tough income squeeze, says TUC

Cheryl Pidgeon

Commenting on the latest pay settlements survey published today (Thursday) by Incomes Data Services Midlands TUC Regional Secretary Cheryl Pidgeon said: “As more companies move back into the black, increased profits are being reflected in improved pay settlements.
“But wages are still losing ground to rising living costs and the government is pushing through a downward wage spiral in the public sector – with pay freezes and bigger pension contributions – while inflation is around five per cent.
“This combination of tough pay settlements, tax rises and tax credit cuts due to start in April means that ordinary workers, and working families in particular, are about to experience one of the toughest income squeezes for a century – one that will test the economy’s ability to bounce back.”


Useful notes:RPI inflation – the measure most commonly used in wage negotiations – was 5.1 per cent in January 2011, while CPI inflation was 4 per cent. The inflation figures for February will be published at 9.30am on Tuesday 22 March.