Higher wages and better taxation of high earners. In the midst of a cost of living crisis, Enough is Enough (literally “That’s enough”) raises the tone. Composed of trade unions and associations, this group created in August “intends to retaliate against a society that he considers designed only for a privileged elite, noted Prospect. And he may not be entirely wrong.”
According to statistics compiled by the OECD, the UK is the second most unequal G7 country in terms of household income. “Whereas the wealth of the 20 richest people has increased by 24 billion pounds [27 milliards d’euros] between 2021 and 2022, the poorest will not be able to feed themselves”, denounces Deborah Hargreaves, a journalist who campaigns for “a fair wage”. Over the same period, the main UK food bank network saw a sharp increase in its number of beneficiaries, with “2 million packages” distributed from April 2021 to March 2022.
A political laissez-faire
The digging of this ditch is not inevitable, however, assures Prospect. Just like the endless fattening of “fat cats” (literally “big toms”), name given to highly paid bosses across the Channel. Whether “the pashas are insatiable”, like the title of the left-wing monthly in its November issue, “it’s because the political power let it happen”. And the new Conservative government, led by Liz Truss, seems determined to amplify this trend with tax breaks for the wealthy.
Certainly, in recent years, timid progress had still been made, concedes Deborah Hargreaves. “Since 2013, companies listed on the London Stock Exchange have been required to disclose the total remuneration of their executive, and, since 2020, to also give the ratio between maximum salary and median salary in the company. But the hope of a reduction in the gaps has fizzled. “The difference in pay between bosses and employees, which had narrowed during the pandemic, has since started to rise again..” The CEOs of the FTSE 100, the hundred biggest companies listed on the London Stock Exchange, each earned an average of £1 million more between 2020 and 2021. “Not that they necessarily worked more, Explain Prospect. It is above all that the financial products and the premiums they benefit from have yielded more with the economic recovery. Now, these bosses earn an average of 109 times the existing median salary within their company.
Radical measures
At the same time, corporate profits are skyrocketing. “These could therefore very well afford to increase their employees.” But the Bank of England has warned that wage hikes could reinforce inflation, the rate of which has already reached 10% in the country. “As always, the argument is not applied to those who run the companies”, Deborah Hargreaves sighs. After campaigning for years for the presence of employees on boards of directors, where salary scales are decided, the journalist believes “that we must move on to much more radical actions”, such as the limitation of wage differentials from 1 to 20 and greater taxation of high incomes.
“We cannot rely on the goodwill of companies alone, I am convinced of that. Unless forced to change, top executives will continue to accept sky-high pay. The people will have to come and wave pitchforks in front of their homes to get them to give up their yachts and their private jets.”