Tuesday, 3 June 2014

Time to reduce inequality

The news in the Independent that the "coalition`s efforts to crack down on the worst excesses of boardroom pay" are having little impact, and that pay for a FTSE CEO is now, on average, "160 times that of an average worker", is hardly surprising. (Pay packets of top bosses soar as wage reform flops,02/06/14) The truth is, of course, that this government, whilst purporting to be concerned about the increasing inequality in this country, has actually encouraged it. How else can the reduced taxation for the rich be explained, or its reluctance to ensure all workers have, at least, a living wage?
         The time has clearly come for improved and effective regulations to be introduced. If a minimum wage can be imposed, with fines for companies and bosses not paying it, why not a maximum wage/salary, or better, and easier still, an increase in income tax based on a sliding scale, which reaches 100% at any earnings over £1m a year? As Deborah Hargreaves of the High Pay Centre  rightly said, "All workers should share in a company`s success". Who but the most selfish in our society could disagree with that?
     Having a Low Pay Commission is self-defeating; the sooner someone at Westminster comes up with the idea of changing its name to the Fair Pay Commission the better! Rocket-science it is not! 

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