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Wage Push Inflation Spreading To The Private Sector

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http://news.bbc.co.uk/1/hi/business/7492626.stm

Argos workers vote for stoppage

The union warns that Argos could face "severe disruption"

Workers at four distribution centres run by Argos have voted for strike action after rejecting a 4% pay offer.

Dates for a series of 24-hour strikes and then a four-day stoppage will be announced later this week.

The Unite union warned that this could lead to shortages of goods at Argos stores, at a time when its new catalogue is about to be launched.

Home Retail Group, which owns Argos, said it had contingency plans in place to limit the impact of any stoppages.

'Unacceptable' offer

The staff who have voted in favour of strike action currently earn up to £22,000 a year.

The union says it is angry that the company has offered a "below inflation pay deal" when Home Retail Group's profits rose by 16% last year and its chief executive received a 58% pay rise.

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Guest DissipatedYouthIsValuable

I will not stand for any disruption in my ability to acquire gifts from the laminated book of dreams.

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I always thought the workers at Argos where a militant bunch lol

Seriuosly though when the flat packed tat industry starts striking theres something very wrong, who next ? Ikea !

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There is no chance of ordinary people moderating wage demands in these costly times unless and until there is some restraint on the part of those in public life, such as MPs, local councillors, company bosses like Adam Crozier of Royal Mail. The pain has to be spread around more evenly, not fall on ordinary people while the rich elite get off scot-free.

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Most companies have been posting record profits, now the workers want a share.

Trouble is big profit is probably at an end as the profit has been generated by people getting into debt. Now we can't borrow so profit margins will have to be more realistic.

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Most companies have been posting record profits, now the workers want a share.

Trouble is big profit is probably at an end as the profit has been generated by people getting into debt. Now we can't borrow so profit margins will have to be more realistic.

You're probably right, but companies seem to give out massive bonuses even when going down the tubes, and even when the exec concerned has been a complete failure. Equality of sacrifice is not something I see much of. :(

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Most companies have been posting record profits, now the workers want a share.

Companies have been making large profits over the whole upside of this cycle. Not Goldman Sachs sized profits, but good 10% YoY profits nevertheless.

These profits haven't filtered through to the workforce over the last decade. It's another reason why the average UK public sector wage is higher than the average private sector one. At the same time, corporates, I believe, haven't fallen for the "fake" boom created by credit liquidity. I haven't seen much acquisition overall, despite the headline-grabbing attempts by Microsoft to take on Yahoo, etc, etc.

It makes you wonder what corporates have been doing with the cash. I suspect that their balance sheets look good and while the government and the general public haven't been saving for a rainy day, they have. If anything will get us through the next few years, companies with good balance sheets will.

If we get into a wage/price spiral, those companies with cash who can afford to pay will pass on the highest rises. As government spending is squeezed right up until the next election, we can expect the balance of public/private sector average wages to be reversed. There will be dissent is the ranks of the NHS as Lord Darcy's report allows bosses to focus on a lack of quality care as the reason why wages aren't being increased at the rate they have been over the last decade.

Should be an interesting few years.

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Guest Skint Academic

I bet the rot set in with that large talking snowman they have to install on the shop floor every Christmas ...

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.... companies seem to give out massive bonuses even when going down the tubes, and even when the exec concerned has been a complete failure. Equality of sacrifice is not something I see much of. :(

One of life's little oddities isn't it? A company making big profits rewards executives to reflect their performance but workers must moderate wage demands to keep the business competitive.

If profits start to tumble, workers lose their jobs or must moderate wage demands but executives receive bonuses for cutting costs.

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The general public won't accept "wage restraint" unless it starts at the top and trickles down. They certainly won't accept it while top execs continue to spunk double digit pay increases and huge bonuses all over themselves.

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I will not stand for any disruption in my ability to acquire gifts from the laminated book of dreams.

:lol:

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  • 399 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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