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Wage Inflation To Come To Rescue Of Housing Market

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The CBI don't get everything right but this should tell you something...

CBI urges 'modest' 2008 wage rise

The UK minimum wage was introduced in 1999

A "modest rise" in the UK minimum wage is needed next year if firms are to remain competitive, the Confederation of Business Industry has said.

The CBI says the hourly adult rate of £5.52 makes the minimum wage the third highest in the world after France and Australia, and is hurting some firms.

It claims the rate has increased 53% since its introduction in 1999, while average earnings have risen 38%.

Unions have said the minimum wage has boosted wages for the lowest paid.

New rates

This year more than a million workers received a pay rise when increases to the minimum wage came into force.

On 1 October the adult rate for the statutory minimum wage went up from £5.35 to £5.52, and from £4.44 to £4.60 for 18 to 21-year-olds.

The rate for 16 and 17-year-olds increased from £3.30 to £3.40 an hour. Now the CBI is saying minimum wage has risen faster than in any other developed country in the world when productivity gains are taken into account.

It also claims that some firms are unable to employ more staff or invest in their businesses because of the cost of the rise.

And it says some firms have reduced staff hours and benefits to remain competitive as a result of the minimum wage.

'Steep rises'

John Cridland, deputy director general of the CBI, said living standards for many had been helped by the minimum wage.

However he added: "Previous steep rises have loaded extra costs on to employers who face a less certain outlook for next year as interest rates bite and the world economy slows.

"This year's increase makes our minimum wage the third highest in the world.

"The era of continually increasing the numbers of employees covered by the wage should now come to an end."

When the rises were announced earlier this month, TUC general secretary Brendan Barber said the increase would "provide a much-needed boost to the pay packets of millions of low paid workers".

And he added: "Unions would have liked a bigger increase but at this level there is nothing for businesses to complain about."

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When they introduced the mimimum wage, CBI said British industry would go broke, tories did away with min wage back in early 80's with ' Your employer will pay you what your worth'' which in many cases meant 'no where near enough to live on' min wage barely suffices now.

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The CBI don't get everything right but this should tell you something...

The CBI don't know crap, they are a bunch of tossers representing a greedy bunch of tossers. If you run a company and can't afford to pay someone £5.50 then you need to give up and try something that you're good at. It's a lame excuse to refuse to pay someone a min wage, I pay my cleaner £12.50 per hour for gods sake.

This is basically what will happen when the tories gain power, they will basically freeze the min wage and forget to enforce it. Overtime the min wage will be forgot and millions of workers will be exploited and as millions of cheap immigrants come in from Eastern Europe it will force down the rate of pay to virtually nothing

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The CBI don't know crap, they are a bunch of tossers representing a greedy bunch of tossers. If you run a company and can't afford to pay someone £5.50 then you need to give up and try something that you're good at. It's a lame excuse to refuse to pay someone a min wage, I pay my cleaner £12.50 per hour for gods sake.

This is basically what will happen when the tories gain power, they will basically freeze the min wage and forget to enforce it. Overtime the min wage will be forgot and millions of workers will be exploited and as millions of cheap immigrants come in from Eastern Europe it will force down the rate of pay to virtually nothing

Couldn't agree more. Companies down here on the South Coast have to offer slightly more than the minimum wage just to get one or two 'no marks' applying. If they really want someone half decent it has to be much more.

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Seriously how can they complain about paying less than 6 quid an hour? Do these companies not realise that their staff do not vanish out of existence at the end of the working day, they have to live somewhere, and preferably somewhere not made of cardboard.

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Great, back to £1.20 an hour or whatever. Let's hope landlords can find loads of well-paid professionals who have no interest in having their own place to pay their rents.

As for me.. ooh, ow, blimey I feel a bit crook all of a sudden. Y'know, I think I've done me back. And me eyesight ain't what it was. You wouldn't want me and the nippers skippering outside the Downing St. gates would you guv?

Tell you what, couldn't the council just compulsory purchase all those empty studio flats, and let them out at Housing Benefit rates to incapacited paupers like me?

Or export us to Denmark or somewhere?

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The CBI are the biggest bunch of wingers out there, I don't know how anyone can argue about how high the min wage is when the CBI Chief is paid over £500,000 a year.

Apart from being one the UK's most boring human beings, representing probably the most boring club in the UK, be worth more than 10 pence per day. CBI (Confederation of Boring Idiots)

Please spare me the tears and how poor Tescos is because they have to pay someone £5.50 per hour. What right does the CBI have to advise government, perhaps the government should take advice of the millions in poverty because there not paid a living wage.

Edited by dubsie

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I pay my cleaner £12.50 per hour for gods sake.

Do she do extras for that ?

You'd like to think so.

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Seriously how can they complain about paying less than 6 quid an hour?

Indeed. After all, if that's too much money they can just ship the job to China for $0.50 an hour.

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Here's the CBI's record.

graph1_350_175.gif

Is that directly linked to wages or could it be due to the fact that the last two governments has allowed industry to pretty much do what it wants. The global market means many companies have moved the manufacturing abroad, our governments (Tory & Labour) won't impose import restrictions because they are spineless boys in it for themselves.

Britain is now a financial centre and all the money is stuck in the city. The rest of the country is heading for a meltdown as we all all start filling in application forms to work at Tescos.

Two things need to happen in the UK

1. Either the cost of living needs to be dramatically reduced

2. Or we all need to be paid a lot more money

Can't see any of this happening to be honest....

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dubsie

Big industry has moved abroad, little industry has been swamped by red tape and rising costs and shut down. Manufacturing has been drowned in a sea of cheap money and inflation which has done nothing other than to create a situation where competing against foreign entities gets more difficult every year.

The Bankrupt of England works for the banks, it has no interest in the rest of the UK, if it did it would never have gone down this diastrous route.

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In fact I'd go further, the Bankrupt of England hold UK wage earners (who are actually trying to do their best under the circumstances where they are struggling with the BOE's inflationary policies) in utter contempt.

http://www.telegraph.co.uk/news/main.jhtml...migrants109.xml

Prof David Blanchflower, who sits on the Bank of England's monetary policy committee, told the peers that immigration had increased "fear of unemployment" in the UK and that increased competition for jobs was likely to "have a downward impact on pay".

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In fact I'd go further, the Bankrupt of England hold UK wage earners (who are actually trying to do their best under the circumstances where they are struggling with the BOE's inflationary policies) in utter contempt.

http://www.telegraph.co.uk/news/main.jhtml...migrants109.xml

Prof David Blanchflower, who sits on the Bank of England's monetary policy committee, told the peers that immigration had increased "fear of unemployment" in the UK and that increased competition for jobs was likely to "have a downward impact on pay".

I remember that quote ... like you say they hold the man in the street in utter contempt.

I do think however that they have a big problem looming ... general inflation whether reported or not will effect the purchasing power of the man in the street. ... without realistic wage increases the consumer and service based parts of the economy will suffer.

Obviously Blanchflower is a w%nker ... but I do feel for Merv.

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Is that directly linked to wages or could it be due to the fact that the last two governments has allowed industry to pretty much do what it wants. The global market means many companies have moved the manufacturing abroad,

And the main reason for moving manufacturing abroad is... drum roll please....

Cost.

And one of the main reasons for high manufacturing costs is the rise in manufacturing wages in the last decade or so; increasing the minimum wage even further will merely drive more manufacturing overseas.

Of course the demand for an increase in wages is driven in no small part by the increase in the cost of living thanks to Brown's Boom, so it's not just greedy workers and unions at work. Brown has ******ed up everything he touches.

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