[IER] Weakening of trade unions behind pay stagnation, says Bank of England’s Chief Economist

Fri Oct 12 18:28:42 BST 2018

IER News Brief 12/10/18

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news brief

Friday 12th October 2018

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Andrew Haldane, Chief Economist at the Bank of England, has pointed to the decline in trade union power as a key factor in the last ten years of real wage stagnation <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=96ccfeffa7&e=71131c031b> , alongside the rise of insecure work, low productivity and automation.

Speaking to trade unions and business earlier this week, he said: "Sectors of the UK economy with higher levels of unionisation have seen smaller falls in their labour shares. Over the past few decades, a sector like administration and support activities with under 10% unionisation rates has seen its labour share decline, while a sector like education with a unionisation rate close to 50% has seen its labour share rise."

The last ten years have been historically unusual, he added, in that employment has risen but pay has not followed.

Indeed, workers are feeling the pinch across the UK and some of those in the most insecure types of jobs are taking a stand.

Hundreds of Uber drivers protested outside the company's London headquarters <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=a5f0d23ab2&e=71131c031b>  to demand fair pay and conditions this week, following in the footsteps of last week's day of action among precarious workers at Deliveroo, Uber Eats, Wetherspoons, TGI Friday's and McDonald's, which is being described as "unprecedented".

One reason the recent so-called "McStrikes" are being hailed as a turning point for the labour movement is that insecure workers have historically been difficult to unionise, as have younger workers, who make up a significant proportion of those joining recent action.

How did this come about? General Secretary of GMB Union, Tim Roache, and President of the BFAWU, Ian Hodson, explained what went into their tremendously successful campaigns at the IER's sold-out Employment Law Update on Wednesday. All presentations given on the day are summarised in a report from Roger Jeary <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=8a469fdf0a&e=71131c031b>  - a delegate and IER blogger - and presentations and papers are available to download for free <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=835e7ba3bc&e=71131c031b> .

Missed this event but want a chance to watch it live and participate in questions and answer sessions? We will be holding the conference one more time in Liverpool on Thursday 15 November. Read more and book here <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=852111626e&e=71131c031b> . 

Finally, following his impressive speech at the London Employment Law Update, we're pleased to share details of a forthcoming book launch that Dr Ewan McGaughey will be chairing. Click here to read more and attend the free event <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=a169a27d29&e=71131c031b> , which launches The Rise of the Working Class Shareholder by Professor David Webber.

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	Weakening of trade unions behind pay stagnation, says Bank of England’s Chief Economist 
Andrew Haldane, Chief Economist at the Bank of England, has pointed squarely at the decline of trade unionism as a key reason for the stagnation in real wages over the last ten years. 
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=e78b0cb0c2&e=71131c031b> > click here to read full story 

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Speakers include Ian Hodson, Paul Scholey, Prof Alan Bogg, Neill Todd, Prof David Whyte, Catherine Hobby 
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