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

malachi said:
Key thing, for the first time in years companies are crying out for workers and struggling. Things cant be THAT bad if people are willing not to take certain jobs despite high inflation.
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There is so many job vacancies currently that people seem to pick and choose and leave if they are treated like ****, knowing they have a high chance of finding another job.
Problem is a lot of companies do treat their staff badly, they expect more and more from them because they are struggling to employ staff, they give them crappy wages, what do they expect. Meanwhile the executives give themselves nice big bonuses.
This is just an example of a company I work for.
 
opethian said:
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What do you mean
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Is that data for the US,? Even so its very telling,
It possibly shows the impact of changing financial measures and expectations, or perceived expectations from shareholders.
The question is have profits risen in tandem with the gap between productivity and wages, or have prices dropped or something else.

Or has the geolocation of production changed to low wage areas through globalisation.?

In general companies apart from energy, don't seem to be making huge profits or maybe they are.

Anyway in my experience for most large private companies, if you strike or something you end up with less than you lose and the company gets even later by introducing redundancies.
 
Well it happens at the same time as a lot of changes so who knows, but I'd say most of it was because we shifted away from insular supply chains to more global ones with all the associated losses to collective wage uplift.
 
Hades said:
BA staff at Heathrow just got a 13% payrise.

www.bbc.co.uk

British Airways staff call off Heathrow strike after 8% pay rise deal

Hundreds of staff at Heathrow were set to strike over the busy summer holiday period.
www.bbc.co.uk

That's huge.
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In % terms yes but I’m fairly sure their front line workers on check in etc have a basic salary in the region of £20k.

When you consider that you also need to live in the vicinity of Heathrow in London, it’s peanuts, if they could even afford peanuts after paying for food, transport and housing costs.

Surveyor said:
They had a 10% pay cut a couple of years ago. Unless that's being reinstated as well they're pretty much back to where they were in 2020.
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This also.
 
Mr Jack said:
Against inflation running at over 9% and expected to rise further? Nah, it's modest increase against the background of historic pay cuts.
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Its still significant.
Not sure how many people are getting 10 percent this year!

I'm certainly not. May actually use it for the the reason to change job

I've never had such a payrise within a job role. No where near.
 
413x said:
Its still significant.
Not sure how many people are getting 10 percent this year!

I'm certainly not. May actually use it for the the reason to change job

I've never had such a payrise within a job role. No where near.
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You are completely missing the point that they all took a 10% cut during covid to avoid being the lucky few to not get made redundant.

This literally puts them back where they were in 2020 and makes no account for the current inflation.

Plus 13% of a low wage is still a low wage.
 
413x said:
Its still significant.
Not sure how many people are getting 10 percent this year!

I'm certainly not. May actually use it for the the reason to change job

I've never had such a payrise within a job role. No where near.
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I've had 10% once, but only because I went for a promotion which I should have got, but they didn't have enough positions open for me to get one, so they gave me an extra nice pay rise instead. I then got the promotion only a few months later anyway for another payrise!
 
413x said:
Its still significant.
Not sure how many people are getting 10 percent this year!

I'm certainly not. May actually use it for the the reason to change job

I've never had such a payrise within a job role. No where near.
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They took a 10% pay cut. This is a 1.7% raise over what they had before, way below inflation.
 
They all kept their jobs when then could have been laid off.
Id be pretty ok with that tbh.
Beats being unemployed for 2 years.... Probably..
You can moan all you want but the ruthless thing would have been to just sack "everyone."
 
Mr Jack said:
Against inflation running at over 9% and expected to rise further? Nah, it's modest increase against the background of historic pay cuts.
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Oh I'm not saying it's not justified. But it's a big headline percentage that other people will look at and also aim for (which is very relevant to this thread topic).
 
Hades said:
Oh I'm not saying it's not justified. But it's a big headline percentage that other people will look at and also aim for (which is very relevant to this thread topic).
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Huge in terms of the politics around payrises this year, you mean? Then, yeah, I agree it's huge. It's just not a huge payrise :p

Also, I agree with @Efour: taking a paycut to keep everyone in work through difficult times is and was sensible and a good outcome for all.
 
b0rn2sk8 said:
You are completely missing the point that they all took a 10% cut during covid to avoid being the lucky few to not get made redundant.

This literally puts them back where they were in 2020 and makes no account for the current inflation.

Plus 13% of a low wage is still a low wage.
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I missed the pay cut bit!
Yeah that's not that much.
 
"strikes don't work and they harm people"

Collective bargaining has always been one of the best and oftentimes, only way for justice to be enacted. The ruling class have made great strides in demonising the idea though, with some even going to great lengths and enforcing crippling and life-altering laws, with common people convinced by it and celebrating an actual cut in their earnings. Boiynkers.
 
opethian said:
"strikes don't work and they harm people"

Collective bargaining has always been one of the best and oftentimes, only way for justice to be enacted. The ruling class have made great strides in demonising the idea though, with some even going to great lengths and enforcing crippling and life-altering laws, with common people convinced by it and celebrating an actual cut in their earnings. Boiynkers.
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There are only two levers workers have against exploitation by business are government policy, and collective action.

Government policy is not protecting workers and hasn't been for a long time. That is the reason why collective action is being used.
 
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