Feeling the squeeze - fight back on pay

Wages need to rise faster than inflation

This week’s figures for price inflation show prices rising at 3.6% per year (RPI) and forecast to remain steady.  That means we are still feeling a wage squeeze.

It does represent a fall and some of the press have reported the figures as though the pressure was off but, as the Resolution Foundation point out, real weekly earnings are still £15 below their previous peak with the gap not expected to close until well into the 2020s.  As Sharon Graham of Unite says “Wages need to rise faster than inflation if we are to do something about the huge decline in real-terms income over the last 10 years.”

Profitable Housing Association sector

In some sector of the economy employers argue that they are in difficulty and can’t afford decent pay rises but no one who looks at the record profitability of the housing association sector could believe that argument for a moment.

In the three months to January 2018, median pay settlements stood at 3%.  That means pay is still lagging in the economy as a whole.  There is no case for pay offers this low in the highly profitable housing association sector but sadly many housing employers are making pay offers which would result in further real terms pay cuts for their workers.   As we have reported some workers in the housing sector have achieved significantly better pay increases; for example at Mears and Peter Bedford

The Government’s preferred index of inflation, CPIH, fell to 2.5% and CPI to 2.7%.  Unite argues that negotiators should use the RPI as the basis for negotiations. For an explanation see here.

Child care costs up 7%

All the measures of inflation have weaknesses and certain groups are currently being hit hard by price rises.  The Family and Childcare Trust Childcare Survey published this month reports that a seven percent price hike is hitting parents’ pockets this year – bringing the average price for a part time nursery place for a child under two to a crushing £122 per week, or over £6,300 per year.  In Inner London – the most expensive region in the UK – the price of a part time nursery place for a child under two is £184 per week, or £9,500 per year. To read the full report see here.

Do get in touch with the branch if you help fighting back against the pay squeeze and see the Work Voice Pay section of Unites website.

Paul Kershaw, Chair Unite Housing Workers LE1111