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Here Comes The Wage Inflation - Real Inflation

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http://www.bbc.co.uk/news/uk-england-birmingham-11702116

Workers at Jaguar Land Rover have voted to accept a two year pay deal securing jobs at sites in Halewood, Castle Bromwich and Solihull.

The deal will see pay increase by 5% this year and by 0.5% above inflation in 2011.

5 % FIVE PERCENT, WOW, I SAY IT AGAIN 5 %.....................................................

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5 % FIVE PERCENT, WOW, I SAY IT AGAIN 5 %.....................................................

That is a pretty decent pay rise, at least in percentage terms.

I wonder how much an average Jaguar worker earns roughly?

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http://www.bbc.co.uk/news/uk-england-birmingham-11702116

Workers at Jaguar Land Rover have voted to accept a two year pay deal securing jobs at sites in Halewood, Castle Bromwich and Solihull.

The deal will see pay increase by 5% this year and by 0.5% above inflation in 2011.

Pushing up the prices of cars built for export in a currency that has lost 30% of it's value.

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http://www.bbc.co.uk/news/uk-england-birmingham-11702116

Workers at Jaguar Land Rover have voted to accept a two year pay deal securing jobs at sites in Halewood, Castle Bromwich and Solihull.

The deal will see pay increase by 5% this year and by 0.5% above inflation in 2011.

IMO opinion wage inflation is going to return in various sectors, but not all.

Rates won't be raised.

hands will be wrung and feet will be stamped.

The world will continue turning.

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IMO opinion wage inflation is going to return in various sectors, but not all.

Rates won't be raised.

hands will be wrung and feet will be stamped.

The world will continue turning.

Sceppy, with wage inflation at around %5%, surely money supply will go positive, even start to hit double figures. Then rates will rise.

Rates are only low because money supply is and has contracted to nearing negative territory? This cannot/will not carry on, with wage inflation about to take off in the private sector, well rates have to rise, no choice, our creditors will strike, no choice. You do not lend money for free, not when wage inflation is making you as a creditor poorer?

P

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The deal will see pay increase by 5% this year and by 0.5% above inflation in 2011.

But inflation (not "liar inflation") is already 8% so it is a pay cut in real terms.

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But inflation (not "liar inflation") is already 8% so it is a pay cut in real terms.

I agree entirely - look at the increase in commodity & food prices for an indication of the extreme rate at which the value of our currency is being eroded. I always have this discussion with at 'pay review time of year'.

CPI/RPI = bullsh*t numbers used to constrain employees pay in real terms.

10% a year would just about begin to look reasonable if the aim of the pay deal was to match the rising cost of living. In times like these, we need to disregard what we're told by the media and politicans, and apply our own observation, logic and reasoning.

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But inflation (not "liar inflation") is already 8% so it is a pay cut in real terms.

Yes and this has been going on for year's now. Remember going into work in 1993 and being told we were getting 3% pay rise and hitting the roof , it was explained to me that inflation was about 2.5% and I calmed down and understood .

I beleive that was a true figure and a freak year , but since then we have had nothing but lies about inflation and wages are going backwards , no wonder people can not make ends meet even with super low interest rates.

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IMO opinion wage inflation is going to return in various sectors, but not all.

Rates won't be raised.

hands will be wrung and feet will be stamped.

The world will continue turning.

Proximity/importance to the source of funds.

until it's taken away from them, which it will be.

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Sceppy, with wage inflation at around %5%, surely money supply will go positive, even start to hit double figures. Then rates will rise.

Rates are only low because money supply is and has contracted to nearing negative territory? This cannot/will not carry on, with wage inflation about to take off in the private sector, well rates have to rise, no choice, our creditors will strike, no choice. You do not lend money for free, not when wage inflation is making you as a creditor poorer?

P

Wage rates in non-unionised USA have hardly risen in two decades, while the sad b******s pursue the American dream. The progressively non-unionised UK will head the same way. A few privileged groups making stuff for export will get rises. Most of us won't.

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Interesting. Worth keeping an eye on.

Didn't BT employees recently secure about 9% over three years.

and transport for London, a similar deal of 6% and inflation plus 0.5% over 3 years. And company bosses 55% in the last year alone. I suppose that newly printed cash is bound to get into prices and wages. BoE have been ordered to look the other way.

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If unemployment starts rising again (as it will), and the majority of moderately or low skilled, or non-jobs do not see pay rises in line with inflation, then a few big deals here and there won't effect overall money supply.

Edited by HovelinHove

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 A lot of people in Sales that I know have simply increased their pay by moving jobs. I added about £22k to my base salary by moving twice last year.  But clearly for the majority we need big across the board rises, but if firms like BT and Jaguar are doing this, it won't take long to filter through.

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If unemployment starts rising again (as it will), and the majority of moderately or low skilled, or non-jobs do not see pay rises in line with inflation, then a few big deals here and there won't effect overall money supply.

This. The government is laying people off left right and centre, companies arent expanding, wage inflation is unlikely to be a big problem.

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Heres how

Tata Motors pays off Jaguar debt, launches new car with Fiat

http://www.neurope.e...-Fiat/96831.php

It appears Jaguar is owned by Tata.

Tata appears to be borrowing direct from the World Stimulus as it is in serious debt.

New World Order currency NEEDS to look like a good thing to workers.

heres 10% pay rise..

What is a GDR?

What Does Global Depositary Receipt - GDR Mean?

1. A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.

2. A financial instrument used by private markets to raise capital denominated in either U.S. dollars or euros.

yep, International bankers stoking up trouble in Countries where the central banks deliberately compress margins.

Edited by Bloo Loo

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Heres how

Tata Motors pays off Jaguar debt, launches new car with Fiat

http://www.neurope.e...-Fiat/96831.php

It appears Jaguar is owned by Tata.

Tata appears to be borrowing direct from the World Stimulus as it is in serious debt.

New World Order currency NEEDS to look like a good thing to workers.

heres 10% pay rise..

I do genuinely believe we are standing on the edge of an Epoch of high inflation, including wage inflation.

It may be hard for some, as if your wages don't rise and costs go up it is of course hard. That is exactly what happened in the 1970s, though by the end of it a lot of the debt was eroded and people ended up freer to go on the 1980s spending lash up.

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 A lot of people in Sales that I know have simply increased their pay by moving jobs. I added about £22k to my base salary by moving twice last year.  But clearly for the majority we need big across the board rises, but if firms like BT and Jaguar are doing this, it won't take long to filter through.

Do you enjoy sales? I know sales can get a LOT more money than an engineer working for the same company, for example, and that many engineers do in fact go into sales for the extra money. I also hear it's more stressful and sales can be first for the chop?

Just interested to hear your view :) What do you sell?

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Do you enjoy sales? I know sales can get a LOT more money than an engineer working for the same company, for example, and that many engineers do in fact go into sales for the extra money. I also hear it's more stressful and sales can be first for the chop?

Just interested to hear your view :) What do you sell?

I do find it interesting as I get  to keep my engineering hand in as essentially I sell and also architect large computer systems mainly for corporates and enterprise customers. Anything from data mining systems through to automated video processing.  Contracts tend to be multi million, so you can earn well. That said it can be quite stressful balancing the sales bit, with the delivery and sign off bit - too very competing objectives. 

I have managed to keep out of the pure coin operated type of sales, frankly in this day and age those types of sales people can be useless, as projects whilst more atomised (no more big bangs)  still need to understand the overall context. There is role for those sorts of sales people, but not in FTSE 100 type customers where you also need to understand the politics, history and various industry factors as well.

BTW the jump to sales is well worth it.  An engineer or PM might take £45-70k PA, most sales people I know are on basics of £60k-90k, but typically earn over £100k most years and some will make £200k every now and then.

Edited by Mikhail Liebenstein

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Have to admit, this one took me by surprise.

Contractor rates at the company have dropped from around £26 an hour to £20 an hour, there is plenty of work for engineers willing to take on short term 9 week contracts at a time. I suppose if you are good they will offer you another 9 weeks?

But to give a 5% payrise in the current enviroment is quite a shock, just cannot see how they can afford it? They have announced no plant closures, jobs to be preserved and an above inflation pay rise for th next two years?

If this spreads well you are better off in debt.

Just wondering, could there be;

Base rate held at 0.5%

QE to the tune of £100 billion a year

Cost inflation running at 4% per annum

Wage inflation allowed to run above cost inflation, so around 0.5% above RPI.

Will the creditors get peed off, well no if the BOE own or are buying up all the newly issued debt for the next ten years?

So no GILTS strike, no rising debt costs, a very weak currency, rising exports, and wage inflation being ignored by central banks, all this supporting asset prices.

Makes sense to dump cash, run to property if this scenario plays out?

p

Edited by Panda

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I do find it interesting as I get  to keep my engineering hand in as essentially I sell and also architect large computer systems mainly for corporates and enterprise customers. Anything from data mining systems through to automated video processing.  Contracts tend to be multi million, so you can earn well. That said it can be quite stressful balancing the sales bit, with the delivery and sign off bit - too very competing objectives. 

I have managed to keep out of the pure coin operated type of sales, frankly in this day and age those types of sales people can be useless, as projects whilst more atomised (no more big bangs)  still need to understand the overall context. There is role for those sorts of sales people, but not in FTSE 100 type customers where you also need to understand the politics, history and various industry factors as well.

BTW the jump to sales is well worth it.  An engineer or PM might take £45-70k PA, most sales people I know are on basics of £60k-90k, but typically earn over £100k most years and some will make £200k every now and then.

Thanks for your detailed response, I really appreciate it!

Your quote for engineer's salary (given several years, I'm still just 3 years in) seems about right - maybe £50k tops up here in Scotland. So those sales figures look eye-wateringly good.

The sales guys in our company deal with those in the East a lot, find it a bit difficult to break in and take some flak I hear - imagine it would be stressful right enough. I'm quite good with people, fairly chatty - maybe something to consider in future.

Very good that you're keeping a hold on the technical side of things :)

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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