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Workers at breaking point over pay, TUC warns | Workers at breaking point over pay, TUC warns |
(31 minutes later) | |
Francis O'Grady is stepping down after almost a decade as TUC general secretary | Francis O'Grady is stepping down after almost a decade as TUC general secretary |
The "longest wage squeeze since Napoleonic times" has left UK families at breaking point, the head of the Trades Union Congress has said. | |
Workers are facing two decades with no real wage growth, Frances O'Grady told the TUC conference in Brighton. | |
Prices have risen faster than wages since the financial crisis in 2008. | Prices have risen faster than wages since the financial crisis in 2008. |
There was a "moral and economic argument for making sure people's pay packets at least keep up with inflation", she said. | |
"The economy has become skewed," said Ms O'Grady, speaking to the BBC's Today programme, ahead of the conference. | "The economy has become skewed," said Ms O'Grady, speaking to the BBC's Today programme, ahead of the conference. |
"Shareholder dividends have been rising much, much faster while real pay has been falling. | "Shareholder dividends have been rising much, much faster while real pay has been falling. |
"We need people to have money in their pockets to spend in pubs local shops to keep our High Streets open." | "We need people to have money in their pockets to spend in pubs local shops to keep our High Streets open." |
The union umbrella body is warning that the anger felt by workers over falling real wages is likely to lead to hundreds of thousands joining the picket line this winter. Nurses, doctors and teachers are already being balloted on action. | |
This week at the TUC conference unions are expected to vote in favour of co-ordinating any strikes. | This week at the TUC conference unions are expected to vote in favour of co-ordinating any strikes. |
Why is everyone going on strike? | Why is everyone going on strike? |
Rail workers vote on further six months of strikes | Rail workers vote on further six months of strikes |
Ballot dates for ambulance strike vote revealed | Ballot dates for ambulance strike vote revealed |
Teachers one step closer to going on strike | Teachers one step closer to going on strike |
The TUC estimates that real wages - which take rising prices into account - will not return to their 2008 level until 2028. | The TUC estimates that real wages - which take rising prices into account - will not return to their 2008 level until 2028. |
That would mean a further loss in real terms of £4,000, on average, over the next three years as a result of price rises outstripping wage growth. | That would mean a further loss in real terms of £4,000, on average, over the next three years as a result of price rises outstripping wage growth. |
The union body calculates that the average worker will have lost a total of £24,000 in real earnings since the 2008 financial crash as a result of pay not keeping pace with inflation. | The union body calculates that the average worker will have lost a total of £24,000 in real earnings since the 2008 financial crash as a result of pay not keeping pace with inflation. |
The TUC used Bank of England and Office for National Statistics data to make the calculations. | The TUC used Bank of England and Office for National Statistics data to make the calculations. |
Ms O'Grady, who is stepping down after almost a decade as TUC general secretary, said the government's policies had caused "mess and damage" affecting livelihoods, mortgages and household bills. | Ms O'Grady, who is stepping down after almost a decade as TUC general secretary, said the government's policies had caused "mess and damage" affecting livelihoods, mortgages and household bills. |
Public sector staff were leaving "in droves" because of poor pay rates, she added. | Public sector staff were leaving "in droves" because of poor pay rates, she added. |
In her speech later, Ms O'Grady warned the government not to go ahead with plans that would make it harder for unions to organise strike action. | |
"If ministers cross the road to pick a fight with us then we will meet them halfway... we will see you in court," she said. | |
There has already been a wave of strike action affecting postal, communication and rail services. Barristers and dockworkers have also been on strike. | There has already been a wave of strike action affecting postal, communication and rail services. Barristers and dockworkers have also been on strike. |
The government has said it will do what it can to minimise disruption. It has proposed requiring unions to put pay offers to a member vote before calling a strike. It also aims to introduce legislation to ensure transport companies maintain a minimum level of service during industrial action. | |
At the weekend, a government source told PA: "The government stood on a manifesto commitment to introduce minimum service levels. As we have seen only too often in recent months, it is wrong that strikes are preventing hard-working people and families up and down the country from getting to work, doctors' appointments and school. | |
"That is why we are introducing this legislation, to keep Britain moving, ensure people can get to work, earn their own living and grow the economy." | |
Frances O'Grady told the TUC that government plans to make it harder to strike were a "cynical effort to distract from the mess'' ministers have caused. | |
New rules on allowing employers to hire agency workers during strikes have already been passed. | New rules on allowing employers to hire agency workers during strikes have already been passed. |