Len McCluskey is right to
say that the government`s derisory attempts to curb fat cats` obscene pay levels
were "evidence of the big business lobby bringing the Tories to heel" (Morning
Star, 29/08/17). Publishing pay ratios, having non-executive directors to
represent employees on boards, and introducing a new public register of
companies facing shareholder opposition over pay policy are as likely to reduce
inequality as naming and shaming Amazon and Google was in reducing tax
avoidance.
The strength of the
pro-business lobby begs the question about who actually is governing the
country. The arms lobby ensures we supply the Saudis with weapons to destroy
famine-ridden Yemen. The food industry ensures regulation of the food sold in
our supermarkets and the meat produced in the abattoirs is being reduced, with
local authorities starved of the funds to do the work. There is a food scandal
waiting to happen in Britain, akin to the Grenfell housing scandal revealing
insufficient checking of obvious rules and
regulations.The food lobby prevents
accurate and useful information being printed on every item sold, whilst the
betting lobby ensures the continuation of the addictive fixed-odds betting
terminals. The building industry`s influence over government means little or no
affordable or social housing is being built, with doubt increasing about safety
levels of those that have appeared.
With lack of space
preventing a mention of other powerfull lobbying concerns (banking, financial,
landlords etc) the question remains: who runs the country? One thing is cer
The facts that the CBI president, Paul Dechsler,
backs "the thrust of Ms May`s moves" to tackle the "unacceptable face of
capitalism", and that the director general of the Institute of Directors,
Stephen Martin, thinks pay ratios will "sharpen the awareness of boards", say it
all (Government attacked over new laws on excessive "fat cat" pay, 29/08/17).
May`s attempts to clamp down on excessive boardroom pay are farcical. There is
no way the voluntary publication of companies` pay ratios, non-executive
directors representing employees, or a new public register of companies facing
regular shareholder opposition over top-level pay will make any difference
whatsoever. Without legislation forcing companies to comply, and without proper
workers` representatives having a say on companies` pay policies, CEOs will
continue to pocket obscene levels of pay, with the inevitable continued increase
in inequality, and decrease in productivity.
Apparently, May has opined that the
irresponsibility of excessive pay damages the "social fabric of our society",
but her rhetoric is well known for its ability to outweigh her actions, and once
again she has backed down to the pro-business lobby which dominates her party.
Unfortunately, that same lobby cares not a jot about about the condition of our
society. Hopefully, Labour politicians will unite and attack this open goal, for
this is clearly another example of the Tory leader shooting herself in the foot,
and gifting the Opposition more vote-winning opportunities!
Andreas Whittam Smith`s confidence in "public
pressure" working to reduce fat cat pay will not be shared by many, with, as he
admits, the average "full time worker on a salary of £28000" having to work 160
years to earn what a CEO of a big company receives in a year (Fat cat pay is not
justified when productivity is so poor - and the government is starting to
realise this, 30/08/17). It`s little wonder British productivity is so low, when
so much of companies` profits go on bosses` obscene pay levels rather than in
investment in training and technology.
May`s attempts to clamp down on excessive
boardroom pay are farcical. There is no way the publication of companies` pay
ratios, non-executive directors representing employees, or a new public register
of companies facing regular shareholder opposition over top-level pay will make
any difference whatsoever. Does May, or indeed Whittam Smith, actually believe
the employees` representative arguing against yet another pay award for the boss
will have any impact? Without legislation forcing companies to comply, and
without proper workers` representatives having a say on companies` pay policies,
CEOs will continue to pocket obscene levels of pay, with the inevitable
continued increase in inequality, and decrease in productivity.
Apparently, May has opined that the
irresponsibility of excessive pay damages the "social fabric of our society",
but her rhetoric is well known for its ability to outweigh her actions, and once
again she has backed down to the pro-business lobby which dominates her party.
Unfortunately, that same lobby cares not a jot about about the condition of our
society. Hopefully, Labour politicians will unite and attack this open goal, for
this is clearly another example of the Tory leader shooting herself in the foot,
and gifting the Opposition more vote-winning opportunities!
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