Record pay for bankers but most workers still earning less than a decade ago – TUC

• Real wages in the finance sector grew £120 a week, but the average worker is still £17 a week worse off

• Nurses and teachers amongst hardest hit • New rights needed to give people a voice at work on pay and conditions, says TUC

New analysis published by the TUC today (Tuesday) shows that real wages are still £17 a week lower than a decade ago. But they are up more than £120 for those working in the finance sector.

Bankers doing best

In most sectors of the economy wages are still worth less than before the financial crisis. However, a small number of industries have bucked that trend.

Average real pay in the financial sector has increased by 9.3% (£119 per week) since 2009 reaching a record average of £1,405 per week.

Other sectors that have seen real wage growth include, retail and hospitality, which are likely to have been boosted by increases to the minimum wage.

Nurses and teachers amongst hardest hit

While pay has recovered for bankers, the story is very different for public sector workers.

People employed in health and social work and education are still £36 a week worse off than in 2009.

The TUC says this is a clear consequence of the government’s decision to hold back the pay of hardworking teachers, nurses and other public servants behind rising prices.

The hardest hit workers are those working for membership organisations, repair services and in furnishings. Their pay £86 per week lower in real terms than a decade ago.  

The next worse performing sector is manufacturing of food and drink, where real pay is still down by £52 per week.

TUC General Secretary Frances O’Grady said:

“It’s not right that pay is racing ahead in the City when most working people are still worse off than a decade ago.

“The architects of the financial crisis are earning record amounts while teachers and nurses struggle to get by.

“Workers deserve a much fairer share of the wealth they create.  That’s why unions need new rights to access workplaces and negotiate industry-wide rates.

“Pay inequality helped drive the last financial crash. It can’t be left unaddressed.” Editors note

Weekly pay by industrial sector (£), 2009 to 2019 (prices = 2018)

Industrial sector Dec 2008
– Feb 2009
Dec 2018
– Feb 2019
% change £ change
Financial & Insurance Activities 1286 1405 9.3 119
Arts, Entertainment and Recreation 373 398 6.7 25
Manufacturing: Chemicals, man-made fibres 732 772 5.5 40
Retail Trade and Repairs 317 331 4.3 14
Administrative & Support Service Activities 419 435 4.0 17
Manufacturing: Engineering & Allied Industries 688 703 2.1 14
Transport and Storage 599 608 1.5 9
Accommodation & Food Service Activities 254 256 0.9 2
Information and Communication 870 876 0.6 5
Manufacturing: Textile, Leather & Clothing 439 439 0.0 0
Real Estate Activities 531 522 -1.6 -9
Wholesale Trade 636 618 -2.8 -18
Mining and Quarrying 1276 1240 -2.9 -36
Other Manufacturing 558 541 -3.0 -17
Electricity, Gas and Water Supply 720 696 -3.4 -25
Manufacturing: Metals & Metal Products 608 585 -3.7 -23
Construction 656 630 -4.0 -26
Agriculture, Forestry and Fishing 430 405 -5.9 -25
Professional, Scientific & Technical 772 724 -6.3 -48
Education 485 448 -7.5 -36
Health and Social Work 478 441 -7.6 -36
Public Administration 640 583 -8.9 -57
Manufacturing: Food, Beverage & Tobacco 571 519 -9.1 -52
Other Service Activities
(incl. membership organisations, repair services)
472 386 -18.2 -86

Methodology: The TUC analysis compared quarterly figures from the Office for National Statistics’ Labour Force Survey for December 2008-February 2009 and December 2018-February 2019 (EARN03 ‘average weekly earnings by industry’). Figures are adjusted for inflation using CPI for 2019Q1. Figures include bonuses and arrears. The source data is here: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/april2019/relateddata

Average pay: The figure of -£17 for the change in the average wage across the whole economy from Dec08-Feb09 to Dec18-Feb19 is derived from ONS data for the whole economy in EARN02, which gives non-seasonally adjusted figures. This provides a more accurate comparison with the figures in EARN03, which are also non-seasonally adjusted. This figure also includes bonuses and arrears, so differs from the monthly figure for regular pay issued by the ONS.

–  Fairer pay for all workers: To achieve fair pay for all working people, the TUC is calling for:

  • A £10 an hour national minimum wage and an end to discrimination against young workers through lower rates of minimum wage
  • Workers to be elected onto remuneration committees to help curb greed at the top
  • Legal requirements on employers to report on and act to close race, gender and disability pay gaps
  • New employment rights for insecure workers, including a ban on zero-hours contracts and bogus self-employment
  • Full employment rights from day one for all workers, including protection from unfair dismissal

A stronger voice at work: To ensure everyone has fair treatment at work and can negotiate fair pay and conditions, the TUC is calling for:

  • New rights to give unions access to every workplace so that nobody has to face their employer alone
  • New rights for unions to bargain for fair pay and conditions across industries, ending the race to the bottom
  • An end to the unfair and undemocratic trade union act that restricts the right to strike

About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.

Raise the National Living Wage

Having a job should guarantee your family doesn’t live in poverty. 

But right now that’s not the case. Millions of working people are trapped in low paying, insecure work with no path out.

Not only is the percentage of those in poverty living in a working household at its highest since records began, but so is the percentage of children from working households living in poverty.

Theresa May might think this is fine, but we don’t.

Raising the National Living Wage to £10 per hour would give a pay rise to 4 million people. That’s why today, on the 20th anniversary of the minimum wage, we’re calling on the Prime Minister to take action.

Add your name.

I support £10 per hour for all workers.

This pay rise would go a long way to ensuring those on the lowest wages have enough to pay the bills, put food on the table and find somewhere permanent to live.

Millions of people in working families are living in poverty and this isn’t an accident. The system has been designed to benefit a few, while the rest struggle to afford the basics.

The minimum wage was a victory for union campaigning. It will only continue to rise if we take a stand.

Add your name.

I support £10 per hour for all workers.

We were told it would bankrupt the country. Instead it gave workers earning as little as 90p per hour a fair deal.

20 years on, the fight to end working poverty goes on. Workers need a £10 minimum wage now.

3 day cleaners strike at MoJ & RBKC

In an almost unprecedented move cleaners at the Ministry of Justice, Kensington and Chelsea Town halls and 6 privately owned hospital departments and outpatient clinics run by Health Care America, will strike simultaneously for 3 days from 7-9 August demanding the London Living Wage of £10.20 per hour!

That’s 3 days of stirke action at 3 companies and 11 sites!

Please donate to their strike funds here if you can. Any amount will help!
https://www.uvwunion.org.uk/current-campaigns/

Rally and lobby of Parliament on fair pay for public servants

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Join us in Westminster on 17 October, to tell our MPs that Britain’s dedicated public servants need a pay rise.

For 7 years, government has restricted public sector pay rises to less than inflation – or nothing at all. But prices haven’t stopped rising in that time, and inflation means nurses, firefighters, and other public servants’ wages are worth over £2,000 less than they were when the coalition government started in 2010.

Pressure is growing on all sides for a change of course, and a fair pay rise for public servants.

Union members will be travelling to Westminster to meet with their MPs on the afternoon of 17 October. And afterwards, we’ll be hosting a rally in Parliament Square, so MPs won’t be able to ignore our message.

We’ll be posting more details here as they are confirmed, but save the afternoon now.

UCU Joint strike action with NUT Tuesday 5th July

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We will be taking our next day of strike action on Tuesday 5th July as part of the ongoing campaign in pursuit of our pay claim to address the 14.5% fall in our wages in real terms since 2009.

The 5th July date has been chosen for maximum impact across London with many HE institutions also on strike that day.

Those of you with school-age children may be aware that the National Union of Teachers will also be taking strike action on the 5th in their separate dispute with their employers.

A more detailed email will follow but the plan for the 5th is that Middlesex University UCU will conduct a “Teach Out” on the Burroughs on the morning of the 5th (the day of the Annual Teaching and Learning Conference at Middlesex). Our “Teach Out” will address the government plans in the White Paper for HE and we will discuss the alternative vision for HE as seen by UCU, the Council to Defend British Universities and other organisations.

We hope to have a speaker from Middlesex Student Union to give us the view of the student body and to tell us about the growing national concerns about the retrospective rise in the interest rate on student loans etc.

There will be other opportunities for creative learning during the morning with interesting options for those of you who might need to bring your children to the “Teach Out”. In the afternoon there is likely to be a pan-London event involving a range of education unions. More detail on this in a later email. You are the UCU.

Do be part of the 5th July – this will be the liveliest picket ever.

Sent on behalf of Middlesex UCU Branch Exec Follow us via social media:

Twitter –  @UCU_MDX

Facebook – UCU Middlesex University

 

Picket Lines 8-12pm on 5th July at the front of the university.

GREATER LONDON ASSOCIATION OF TRADE UNION COUNCILS CONFERENCE

GREATER LONDON ASSOCIATION OF TRADE UNION COUNCILS

CONFERENCE

LONDON AGAINST AUSTERITY

Trade Unionists, Councillors and Communities together

SATURDAY 4 JULY 2015 10.00-15.30 ISLINGTON TOWN HALL

UPPER STREET LONDON N1 2UD

 

This free event is organised by GLATUC (Greater London Association of Trade Union Councils)

http://glatuc.org.uk/home.html

We aim to bring together councillors, trades unionists and community activists to share and develop practical strategies to resist austerity. We are looking for those who can share information on successes no matter how small – councillors, trade unions and campaigners – and those who want to learn and work together. Hear about

  • successful action by trade unions working with councils
  • trade unions working across different councils
  • campaigns working with unions and councils
  • London councils’ actions against austerity and privatisation

Share successes

Gain more influence through Councils joining together

Organise ways to protect your community

Develop networks for support and information

 

Register

https://www.eventbrite.com/e/london-against-austerity-councillors-communities-and-trade-unionists-together-tickets-16865794044

What does deflation mean for working people?

A must read new study from the New Economics Foundation looks at the headline negative inflation figures now circulating:

“Latest UK inflation figures have been greeted with an extraordinary amount of fuss. A 0.1% decline in the rate at which prices are increasing is not, by itself, especially newsworthy. But of course the symbolism of hitting a 2% rate matters. It means the Bank of England’s inflation target has, for the first time since late 2009, been achieved.

“Leaving aside the politics around this arbitrary target, there are three things to note here. First, the cost of living crisis is not over. Prices are still rising much faster than wages and salaries. Inflation is 2%. Average earnings, however, have risen less than 1%. In other words, the real value of people’s wages and salaries is still falling. Most people are still becoming steadily worse off, as they have been for the last five years. The figures for December also miss out the sharp rises in household energy bills, which will feed into next month’s numbers.

“Second, the fall in inflation has little to do directly with the government’s actions. The biggest reason for the decline in the overall rate of inflation was a fall in the rate of price increases for food and drink, down from 2.8% to 1.9% over the year. But Britain is a huge importer of food, buying some £20bn more from abroad than it sells to the rest of the world. The prices we see in the shops are to a large extent determined by what is happening internationally. And with the pound rising in value over the last few months, the price of importing food has declined. Alongside that, after years of sharp increases, the prices of basic food commodities like wheat and sugar have fallen globally over the last year.

“Third, there’s an unusual danger lurking underneath this. Strip out food, drink, and energy prices from the headline inflation and you get a measure of what is often called “core” inflation. This excludes those items that are most affected by pretty contingent, day-to-day factors to try and get a sense of where the underlying economy is heading. Core inflation, currently, is 1.7%, having fallen from 1.9%.”

Read the full report on the NEF website:

latest-inflation-figures-3-things-you-should-know