The TUC has published analysis today
showing average pay in the East Midlands fell by over £500 in real terms last
year.
The report coincides with the launch
of the TUC’s Fair Pay Fortnight, to raise awareness about pay inequality. The campaign is calling for an increase in
the minimum wage, greater extension of the living wage and higher pay
settlements in the public and private sector.
Average full-time wages in the
East Midlands have fallen in real terms by £2,652 per year since 2010, or £51 a
week.
This is the longest real wage
squeeze since records began in the 1850s.
Even with inflation falling sharply in recent months, at current rates
of progress it will still take years for wages to recover to their
pre-recession levels.
Meanwhile, as average wages for
workers saw a real terms fall of 9.6 per cent since 2014, fat cat pay for FTSE
100 bosses shot up by 26 per cent. To
put it another way, while workers’ wages have fallen, the remuneration of FTSE executives
is on average £700,000 higher today than it was in 2010.
Rising inequality in the UK is threatening the future of our economy. We therefore desperately need a different approach to stop Britain returning to a 'Downton Abbey' society.
Changes in the median annual real
earnings of full-time employees 2010-2014
|
Change Since 2010 (£)
|
Change Since 2010 (per cent)
|
Change Since 2013 (£)
|
Change since 2013 (per cent)
|
|
|
Region/nation
|
|
|
||
|
United Kingdom
|
-2,509
|
-8.4
|
-487
|
-1.8
|
|
North East
|
-1,663
|
-6.3
|
164
|
+0.7
|
|
North West
|
-2,461
|
-8.9
|
-506
|
-2.0
|
|
Yorkshire and The Humber
|
-2,380
|
-8.7
|
-554
|
-2.2
|
|
East Midlands
|
-2,652
|
-9.6
|
-510
|
-2.0
|
|
West Midlands
|
-2,430
|
-8.9
|
-1,037
|
-4.0
|
|
East
|
-2,297
|
-7.9
|
-343
|
-1.3
|
|
London
|
-3,940
|
-10.1
|
-978
|
-2.7
|
|
South East
|
-2,935
|
-9.3
|
-390
|
-1.3
|
|
South West
|
-2,085
|
-7.5
|
-298
|
-1.2
|
|
Wales
|
-2,217
|
-8.3
|
-318
|
-1.3
|
|
Scotland
|
-1,882
|
-6.5
|
-102
|
-0.4
|
|
Northern Ireland
|
-1,681
|
-6.5
|
-527
|
-2.1
|
Source: Annual Survey of Hours
and Earnings, RPI adjusted. All real values are reported are in April 2014
prices, using April RPI: All Items Index values
Changes in FTSE 100 CEOs real
earnings 2010-2014
|
Change Since 2010 (£)
|
Change since 2010 (per cent)
|
|
|
FTSE 100 Chief Executives
|
+£696,236
|
+26.3
|
Source: IDS Directors’ Pay Report
2014/15, data from Graph 1.2: CEO and employee median earning trends data 2000
to 2014.
FTSE 100 CE0 pay, compared to
median earnings
|
East Midlands median wage in
2014
|
£25,027
|
|
How many more times the
regional median wage FTSE 100 earned in 20141
|
133
|
|
Hours it took CEO to earn median wage in region2
|
15
|
|
Working days it took CEO to
earn median wage in region3
|
2.0
|
1This value is FTSE 100 median annual wage divided by regional full time median annual wage and rounded to the nearest whole number.
2This value assumes a standard working week of 37.5 hours per week
for 52 weeks per year. Not taking any leave into account, this comes to 1950
standard working hours per year. The FTSE 100 median hourly wage was therefore
estimated at £1,709.74, which is the FTSE 100 median annual wage divided by
1950. Finally, each regional full time median annual wage was then
divided by this hourly rate and rounded to the nearest hour.
3This value took the number of hours it would take a
FTSE 100 CEO to earn the full-time median annual wage divided by a standard 7.5
hour work day and was rounded to the nearest tenth of a day.
- Fair Pay Fortnight will run
between Monday 16 February and Sunday 1 March.
- The Fortnight is part of the
TUC’s Britain Needs a Pay Rise campaign and will feature a series of
events across England and Wales to raise awareness about low pay, pay
inequality and falling living standards. For more information please visit www.fairpayfortnight.org
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