CBI calls for businesses to give workers wage boost
Big business bosses and expansive organisations should improve the wages they pay to workers, according to the UKís largest business lobby faction.
CBI head John Cridland has identified that many workers are failing to experience the benefits of the countryís economic improvement because they have become ëstuckí in low pay, and has asked firms to consider restructuring their wage systems in order to address the issue.
He argued that it is the responsibility of the countryís employers to ensure that UK workers feel the effects of the economic recovery currently taking place and that most bosses are in a position where they can make this manifest in reality.
He also pointed out that FTSE 100 bosses are currently earning over a hundred times the national average wage, and that they had no excuse for retaining low wages.
Mr Cridland said: "The recovery is taking root and business leaders have a spring in their step compared to this time
last year, but this is no time to rest on our laurels," he will say in his annual message to business leaders.
"As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze."
The slow rate in which wages increased during 2013 has been in the spotlight in recent times with Labour politicians arguing that the rising costs of housing, inflation and utility bills at a rate that is faster than wage increases has placed the UK into a cost of living crisis.
Last week, the GMB union released data that indicated that the actual value of wages had decreased by almost 15% in the past five years, whilst the Office for National Statistics said the average pay had increased by just £1000, not factoring in the higher cost of living and inflation.
GMB general secretary Paul Kenny said: "These alarming figures show how hard-pressed working people across the UK are struggling to pay their bills after years of wage declines and attacks on the living standards of families throughout the land. Working people deserve and need a decent pay rise to halt the drop in living standards."
London was identified by the GMB as the most heavily affected by actual wage decreases, with a 20% estimation given for the contrast between 2008 and now. Shockingly, those who work in affluent South West areas such as Fulham have had to deal with an almost 50% decline in the actual value of their wages in the past 5 years, suggesting that the capital is where the issue is most problematic.
Conversely, the GMB highlighted that the average FTSE head earned over £3.5 million last year alone, with it being argued that the Bank of Englandís quantitative easing economic policy has created the situation where bosses flourish and workers pay for it.
Mr Cridland optimistically forecasted that worker wages would improve this year but argued that too many people will still be stuck on minimum wage, without any career progression seeming possible.
"Businesses must support employees in every part of the country to move up the career ladder, while also giving a helping hand to young people taking their first tentative steps into the world of work," he will say. The CBI is funded by businesses and lobbies government on their behalf.
Mr Cridlandís remarks will undoubtedly be compounded on by Labour politicians who have already made their discontent publically known about the current living standards of average workers in the UK.
Last month, Labour leader Ed Miliband said that he would offer businesses tax rebates as a form of compensation if they were to adopt the national living wage into their payment structure. This currently is valued at £7.65, which is far higher than the £6.31 minimum wage that thousands of UK workers are currently receiving.