02/08/2008 - TUC Unions Collude in Pay-cuts

The Government's reaction to Council workers strikes over pay was predictable. The mantra that 'inflation' must be controlled before anything else, first coined by Margaret Thatcher and followed by her disciple Gordon Brown, rests on the premise that price rises occur due to an increase in the money supply through wage increases. If people have more money in their pocket they will spend more thus pushing up prices and then wages etc. The upshot being economic instability and the 'devaluation' of assets (savings).

Council workers want 6% and the Local Government Association(s) are offering 2.45%. The latter's benchmark for calculating their offer is the Consumer Price Index (declared at 3.3% for May). However this index is severely flawed as it doesn't monitor certain costs such as Council Tax and Mortgages (all of which have been soaring). Ex-PM John Major recently suggested that the real rate of inflation was between 8-10%.


Given the credit-crunch (banking incompetence), fuel price rises (international speculators) and utility cost increases (the result of the Government selling our 'assets' off cheaply), the average worker is suffering. None of these problems are the result of pay increases but the actions of the Government or their 'shadowy' friends. We say, why should the British worker pay for the incompetence of others?


It is therefore our duty to support these and other reasonable pay demands. In fact we don't think they are asking for enough!

If the real rate of inflation is 8% then any pay increase less than that amounts to a pay-cut in real terms. That is what TUC bosses are colluding in, pay-cuts in real terms year-on-year.