London Workers Real Earnings Still below 2007 in 27 Boroughs

By: Submissions

EARNINGS IN 27 LONDON BOROUGHS STILL BELOW 2007 LEVEL ONCE INFLATION HAS BEEN TAKEN INTO ACCOUNT NEW GMB STUDY SHOWS

Impunity for employers hostility towards workers rights is maybe more important than the pay cap in the public sector in holding down pay in the private sector says GMB London region

The real value of earnings for all full-time employees resident in London has dropped by 17.9% between April 2007 and April 2016 a new GMB London Region analysis of the Annual Survey of Hours and Earnings shows.

27 out of the 29 areas in London still have a lot of ground to make up on earnings levels before the recession.

For full time employees resident in the borough of Westminster the drop has been 38.7%, in Hammersmith and Fulham the drop is 29.5%, in Camden 25.2%, in Tower Hamlets 24.2% and in Southwark 20.4%.

Set out in the table below are the 2007 and 2016 mean annual earnings figures for 29 London boroughs where data are available with the actual change figures and the change figures taking into account inflation of 27.3%.

The tables have been compiled by GMB London region, see notes to editors for sources and definitions.

Warren Kenny, GMB London regional secretary, said,

&quotThe real value of earnings for all full-time employees resident in London has dropped by 17.9% between April 2007 and April 2016. 

&quotThere are still 27 London boroughs where earnings are below the level of 2007 once inflation has been taken into account. 

&quotWe need several years of growth to fill the gap and to meet the ever rising cost of housing.

&quotThe recession and inflation are not the only causes of the decline in the value of earnings in the private sector especially for lower paid manual workers. Capital's share of annual national income has increased by nearly 50% in a generation while the share going to wages has declined.

&quotEmployers threats and actions, like the recent sacking of shop stewards at Cineworld in London in the course of strike action on pay, is curtailing the rights of workers to join trades unions and to seek collective bargaining agreement to resist and reverse this transfer of income from labour to capital.

&quotThis hostility is widespread and enjoys effective impunity. In Amazon trades union organisation is underground like the French resistance as is the case elsewhere. It is a major cause of growing inequality in the UK. 

&quotSo employers hostility is not only abusing the human rights of workers to join trades unions to hold down pay in favour of profits but it now also threatens consumer spending and increases the risk of a further recession.

&quotLast month the GMB Congress called for hostile action by employers against workers wanting to join unions to be made a criminal offence punishable by punitive fines and prison sentences. The current position where employers can violate the human rights of workers to join trades unions and to seek collective bargaining with impunity can no longer be tolerated.

&quotThis impunity for employers hostility in the private sector is maybe more important than the pay cap in the public sector in holding down pay in the private sector. 

&quotGMB will mobilise to support a national roadshow for the sacked shop stewards at Cineworld in Brixton being used to win support for their pay dispute and to highlight the need for legislation to deal with the current effective impunity employers enjoy in denying workers rights by aggressive hostile actions. 

&quotSo as well as lifting the pay cap in the public sector action is also needed in the private sector to secure decent pay rises.

&quotThis will require legislation to deal with the current effective impunity employers enjoy in denying workers rights to join unions to end the silencing and oppression of the manual  working class in the UK. 

&quotAll workers should be looking for decent pay rises in both the public and private sectors. 

&quotSo as well as Parliament acting on the pay cap in the public sector it has a key role to play in liberating the UK working class to fight for their fair share of national income now going to capital. 

&quotWorkers are not looking for charity but for effective enforcement of the human rights they have but which are denied by employers with impunity. This should be one of the lessons the employers should draw from the results when the electorate was asked to vote in recent nationwide polls. "

GMB

GMB London Region, John Cope House, 152 Brent Street, LONDON NW4 2DP 

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