The Confederation of British Industry (CBI) is often regarded as the “bosses union” and not commonly regarded as the champion of the worker – it more has the persona of Charles Dickens’ Scrooge in “A Christmas Carol”. So perhaps it is seasonally appropriate to that like the old miser, they have relented and are now calling for a trickling down from industry to boost the pay packets of UK workers “stuck in minimum wage jobs”.
Speaking to the BBC, John Cridland, the Director General of the CBI noted that too many British workers were trapped in minimum wage jobs, despite the upturn in the economy seen in 2013. He called on businesses to offer more opportunities and better pay to their employees. Affordability of life, for many, is becoming a political issue in the UK with many joining the ranks of the “working poor”.
Mr Cridland said: "If we get productivity going, we are creating more wealth, and we can share it. Recovery should be sustainable before wages increased. It's nice for once to have a somewhat more upbeat message. The message is, if the economy is growing, we can have everybody swim upwards. Far too many people (are) stuck in minimum wage jobs without routes to progression, and that's a serious challenge that businesses and the government must address." He noted that businesses needed to restore the trust that had been eroded because of financial scandals; spiralling energy prices and the perception of corporate tax evasion amongst other issues.
Since domestic demand is a key element of the UK economy, if the working poor have more disposable income, demand will also rise (incrementally). Perhaps, when little Oliver Twist asks for “more” this year, the reception from CBI members will be more understanding.