Get the facts
After the world’s economic system crashed – Europeans were hit hard. Jobs were lost and savings depleted, economic growth dropped almost 10% and deficits went up.
The only “fix” to the crisis according to politicians, employers and bankers were cuts to public services and brutal squeeze on workers’ wages – causing them to plunge:
Compensation growth per employee
To the delight of employers – the idea that wages need to be kept down for a more competitive economy has become widespread – both in the mindset of policymakers as in the public discourse.
While profits are rising, income inequality ratios are increasing and workers’ share of wealth continues to shrink. Workers’ productivity is growing but real wages have barely budged – this means that economic growth goes to the side of the capital while workers’ share goes down.
Eight years later – corporate profits and senior management pay have strongly recovered, but many workers haven’t seen a pay rise in years.
But this idea is simply not true.
Economists and even some business leaders have realised that by strengthening purchasing power, pay rises are an engine of demand, growth and jobs across Europe.
Wage as proportion of GDP
After eight years, it’s time for our recovery – Europe needs a pay rise.
There are many paths to Europe’s pay rise. Strong collective bargaining, closing the gender pay gap, pushing back on zero-hour contracts and precarious work. Increasing the minimum wage and working to push up wages throughout companies and supply chain.