Lack of trade union membership is costing the economy billions, finds new study

14 Sep 2015 03:25 PM

Research funded by the FDA and other members of the Unions21 trade union network from the New Economics Foundation (NEF) and the University of Greenwich, has shown that stronger trade unions could benefit the UK economy.

Analysis has shown that falling trade union membership over the last four decades has had a detrimental effect on the economy. The lack of collective bargaining on salaries alone could be hindering UK economic growth by as much as £27.2bn.

NEF research showed that in the UK economic growth is wage led. This means that it is wages (i.e. spending power) that drives our economy and not profit.

The FDA's Assistant General Secretary Naomi Cooke said:

"This report shows that Government attempts to reduce the role of trade unions is potentially damaging to the economy as well as to society.

"The FDA fully supports the work done here by NEF and the University of Greenwich which shows the economic argument for a positive approach to trade unionism.

"The evidence is mounting that long term wage depression in the public sector and a divisive approach to employee relations undermines growth and productivity. There is time for the Government to change course, they need to put the evidence first and address the real changes that are needed in the workplace. "

Notes for editors

The New Economics Foundation (NEF) is an independent think tank that specialises in innovative economic thinking. www.neweconomics.org
The new report, Working for the economy: the economic case for trade unions, will be published on Monday 14 September 2015. Request a full copy by e-mailing press@neweconomics.org
Unions21 is a trade union network, some members of which funded the research. Find out more about Unions21 at www.unions21.org.uk
The FDA is the trade union and professional body representing 18,000 of the UK's senior public servants. Our members include policy advisors, senior managers, tax inspectors, economists, statisticians, accountants, special advisers, government lawyers, diplomats, crown prosecutors and NHS managers.
The FDA can be described as "the senior public servants' union" and should be referred to simply as "The FDA".
The FDA can be found on Twitter @FDA_union and at www.fda.org.uk.
For further information contact:

Naomi Cooke, FDA Assistant General Secretary, tel: 020 7401 5555 or 07718 110 590.
Katie Lazell, Communications Officer, tel: 020 7401 5588 or 07939 257985.