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Fair pay report fails to deal with the real issues, says TUC

Commenting on the publication today (Wednesday) of Will Hutton's Fair Pay Review's interim report, TUC General Secretary Brendan Barber said:

'Any moves to tackle pay inequality and the growing divide between top executive pay and the rest of the workforce - whether it's in the public or the private sector - must be welcomed. And there is also a real value in ensuring that the pay of high earners in the public sector is set fairly and openly.

'But this report does not deal with the real issues facing public sector workers. Over the next two years millions of public sector workers face an arbitrary pay-freeze, a real-terms pay cut as the price of everyday goods keeps on going up and up.

'At the same time, faced with the prospect of being asked to pay more for their pensions, the risk of losing their jobs and an increased chance of being transferred across to the private or voluntary sectors, public sector workers are right to be worried about their future pay prospects.

'And, as Will Hutton points out, the same openness and transparency he wants to see in pay setting across the public sector must also apply to the private sector.

'At a time when average earnings are failing to keep pace with inflation and many workers are facing pay freezes, FTSE 100 directors saw their total earnings boosted by a massive 45 per cent last year. It is hard to talk about 'fair pay' when there is such a gulf between shop-floor and boardroom rewards.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E:
media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk

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