Saturday, January 31, 2015

This country needs a pay rise


Today I was in conversation with a man that worked for a large multinational corporation that you may not have heard of but you WILL have come across it,s products. I shall leave the company nameless. In the context of this blog they are symptomatic of the current climate but not unusual so I will not single them out.
The main narrative of my chat was the way the British workforce is in need of a pay rise. Too many companies are hiding behind the banner of austerity to deny their workforce a decent pay rise. This gentleman claimed his company was making big enough profits but was not coming across with the pay rises in recognition of that. This only confirmed my suspicions, there has been a lot of headlines about the working poor. Those who, despite having work, were struggling to keep their head above water financially.  This gentleman claimed that a lot of employers were milking the past financial crisis to increase their profits at the expense of the workforce. Now I am in a slightly different position in that I am a government employee and the financial problems of HM government UK are well documented. We have had our pay held back now for 5 years almost and it is starting to grate. The government has tried the gun to our head approach saying that if we had pay rises we would lose jobs. Not a claim that anyone i work with has taken much notice of because in most positions we are not exactly falling over ourselves with too many workers.
The public sector pay restraint is one thing, but for a public limited company it is another. Perhaps it is a mark of the supply and demand nature of the job market that companies are able to get away with making profits and not remunerating sufficiently. Or are we all having the wool pulled over our eyes a little at the moment? i would have to do further research for a definitive answer.
So let us assume companies are comfortable that we are afraid enough of our jobs that we would rather not have a pay rise in case we need to seek alternative employment. If profits are on the up why are we not feeling the benefit? One answer could be the amount of European labour available in the country.  Now don't panic I am not going all UKIP on you. I am not about to assume an anti immigration policy. Just the opposite in fact.
Assume, if you please, that the labour market is sodden with cheap Bulgarian and Polish workers of various descriptions. The question i would like to ask is why is it financially viable for them to come to the UK seeking employment and not for the indigenous population? Now I have heard Nigel Farrage talk of wage deflation due to immigrants accepting low paid work.
The thing is that the cost of living in the UK is high but what little they save goes a long long way in their home country. They can come to England work for a bit and save some money and what they take back to Bulgaria builds a house. Where as for an indigenous UK citizen it wouldn't even buy a tube fare. Until recently i worked with a Polish doctor who left his family in Poland but He worked in the UK. That is because a junior doctor in the UK makes 3 times as much their equivalent in Poland.
So my question is why are we all living here? Let us go to and live somewhere cheap, bring our families up in the sunshine but earn our bread and butter in the UK. The only people who can afford to live here are the landed gentry anyway so let them have it!
Lets face it the poor cannot afford to live in England anymore so let us go and live somewhere cheaper

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