Are we starting to see the wage increase vs inflation increase death spiral?

Zenduri

Zenduri

Zenduri

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Firstly this isn't a thread to discuss if pay increases are deserved or are a reasonable request given working conditions or lack of historic increases as thats a whole new topic to go down.

However, it's to discuss the fact we are seeing more industries striking for better pay of demanding better pay in the last 4-8 weeks citing inflation and the cost of living as one of the primary reasons. While it is understandable to demand more pay during a time of inflation this in itself has the risk of pushing up labour costs and therefore prices which in turn, in theory pushes up inflation even higher, wiping out the pay increase and generate more demand for even higher wages


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A few examples of recent increases and demands are below

Given:
Sainsburys workers 5.3% increase
PWC 7-9% increase

Rejected/Demanded/Disputed:

Barristers 15% pay increase demanded
Doctors 30% over 5 years demanded
Royal mail offered 2%, offerered 5.5%, rejected both demanding higher
Rolls Royce £2000 payment offered and rejected, 4% increase rejected
Railworkers offered 2% and 4% rejected, 7% demand
British Airways demands 10% increase but only to restore this to pre covid levels
Ryan Air (unsure of demands)


Does anyone think we are on the cusp of a wage/inflation death spiral? Are we expecting more and more industries and workers to start demanding more pay? If so, what is your take on the situation and if you dont think we are at the risk of entering this spiral whats your thoughts on how we are/will avoid(ing) this?
 
Something is gonna have to give.

I got a pay rise March/April this year and already it has been cancelled out by the increased cost of living so I'm essentially back where I was.
 
Rroff said:
Something is gonna have to give.

I got a pay rise March/April this year and already it has been cancelled out by the increased cost of living so I'm essentially back where I was.
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I received 4% but that was after 3 years of 0% and the 9% inflation still means im worse off
 
Rroff said:
Something is gonna have to give.

I got a pay rise March/April this year and already it has been cancelled out by the increased cost of living so I'm essentially back where I was.
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Sure is, the economy is going to be totally screwed in 1-2 years. Massive crashes incoming.
 
Is this The Great Reset that certain people were talking about / wishing for?

I won't pretend to know of a solution to this problem, the world is in a right mess at the moment.
 
My payrise has been cancalled out already too.
Starting to really notice the prices skyrocketing here.
Diesel 27kr pl.
Pretty much a minimum of 15% on food stuff.
Yeah something will give. Russia and NATO will escalate. Hopefully Putin's heart will give first.
We are lucky to be in a financial position to have a buffer against this for a good while but..,.. #crossfingers
 
Mysterae_ said:
Is this The Great Reset that certain people were talking about / wishing for?

I won't pretend to know of a solution to this problem, the world is in a right mess at the moment.
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I think so. Too much debt now to be sustainable so a new model has to be derived.
 
Mysterae_ said:
Is this The Great Reset that certain people were talking about / wishing for?

I won't pretend to know of a solution to this problem, the world is in a right mess at the moment.
Click to expand...
Agree. Society just feels…. Broken. Brexit, pandemic, cost of living. One haymaker after another. Just fixed mortgage for ten years which I’m glad about
 
Mr Wurley said:
Agree. Society just feels…. Broken. Brexit, pandemic, cost of living. One haymaker after another. Just fixed mortgage for ten years which I’m glad about
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Yeah, it's as if the powers that be (whoever they may be) have discovered the masses are better controlled by fear. Things aren't really that bad, for example compared to what's happening in the Ukraine.

One way to judge the state of the world is to ask a child.
 
Mysterae_ said:
Yeah, it's as if the powers that be (whoever they may be) have discovered the masses are better controlled by fear. Things aren't really that bad, for example compared to what's happening in the Ukraine.

One way to judge the state of the world is to ask a child.
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It has always been that way. I think we're going to see more and more strikes, and possibly civil unrest if people don't see things improving.
 
Uther said:
It has always been that way. I think we're going to see more and more strikes, and possibly civil unrest if people don't see things improving.
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I agree. I work in sport and you see things like increasing domestic abuse when England play, particularly early kick offs. I can see current unrest and stress leading to greater cases of domestic abuse, violence and health related issues. Basically, The Purge is coming
 
Populations increasing, resources diminishing,climate change, the world we know will eventually collapse under these pressures.

The war in Ukraine and tensions with China are starting to show the cracks in globalisation.

I guess this is just the start.
 
I struggle to see how the current situation can be resolved under our existing framework. On the one hand, businesses shouldn’t pay their workers less than a living wage whilst CEOs are paid 7 figure sums. On the other hand, many small businesses are living hand to mouth at the moment and can’t afford to take more money out of the business to deal with the increased cost of living.

There needs to be a general rebalancing to address the growing wealth inequality in this country, through a combination of taxation and wage reform. Increased tax receipts need to be put towards public services ensuring that the lower paid have access to healthcare, affordable utilities, cheaper public transport and other essentials.
 
alchal said:
Populations increasing, resources diminishing,climate change, the world we know will eventually collapse under these pressures.

The war in Ukraine and tensions with China are starting to show the cracks in globalisation.

I guess this is just the start.
Click to expand...
Yeah. Forgot climate change . What a mess we are in. Some of my mates wonder why I play games at 47. Escapism, that’s it.
 
One More Solo said:
I struggle to see how the current situation can be resolved under our existing framework. On the one hand, businesses shouldn’t pay their workers less than a living wage whilst CEOs are paid 7 figure sums. On the other hand, many small businesses are living hand to mouth at the moment and can’t afford to take more money out of the business to deal with the increased cost of living.

There needs to be a general rebalancing to address the growing wealth inequality in this country, through a combination of taxation and wage reform. Increased tax receipts need to be put towards public services ensuring that the lower paid have access to healthcare, affordable utilities, cheaper public transport and other essentials.
Click to expand...

The problem with that is that we have already been practicing squeeze the rich taxation for a good number of years in this country. The people who aren't paying enough tax (based on international comparisons) are those at the lower ends.

We need to become a much less jealous and selfish society, at all levels, for society to work better.
 
Inflation is at its worst level in decades and wages have stagnated for years - high wages are not the cause of our inflation crisis.

Political mismanagement is the cause of our problems, and people need to look beyond the colour of their passport and their fellow citizens the next time they find themselves in a ballot box.
 
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