TUC response to the Governor of the Bank of England’s comments on pay

Commenting on the Governor of the Bank of England’s suggestion that workers’ pay should not keep up with the cost of living and that workers with bargaining power in particular should show restraint, TUC Head of Economics Kate Bell said:

“It’s time for companies to rein in their profits – not for hard pressed workers to cut back even further.

“After the longest and harshest wage squeeze in 200 years, working people in every part of the country are suffering a huge fall in living standards as prices soar.

“With incomes set to fall even further and the economy teetering on the brink of recession, it’s now more than ever that workers need a pay rise.

“Without wage increases, working people will simply stop spending on anything non-essential – and that will hurt our high streets, damage business and make a recession very likely, putting jobs at risk up and down the country.

“Making sure people can put food on the table for their family is not going to push up inflation.

“’If the Governor is worried that some workers might miss out on negotiated pay rises, he should encourage all workers to join a union.”