Wednesday, 18 June 2008

Shell boys 14%

Thats it then 14%. The shell boys get 14%.Don't earn any foerign currency for UK. Welcome to the Idiocracy of GB.
Inflation was already here long before now. It was caused by deliberately loose economic policies, inflating the money supply.
What we are seeing now is that some lucky workers may be in a position where they are able to negotiate pay rises to compensate for the inflation that's already in the system.
What we have here folks is the threat of a good example. If you want pay rises you are going to have to do what these guys did. Organise and go on strike. Otherwise you will get flooke all and for most less than you were earning last year. You may even get a pay cut.
How many workers are prepared to do this, not many is my guess. Workers thought they had entered a newparadigm where enlightened employers would just raise wages along with inflation After years of slagging the unions off and saying there was no more need for them in the modern age, most workers in this country think it would be beneath them to stand on a picket line. Good lord that would be like admitting that they are working class or something.
Only 28% of UK employees are Union members, and collective agreements cover less than 20% of private sector workplaces. If you're not in one of those firms, good luck getting an above-inflation settlement during a recession.
You also have to be in the fortunate position of being in a critical (as in economically and/or politically) job like those drivers are. They had Shell by the short and curlies (and potentially the goverment too if it spread beyond shell drivers - although watch this space on that one). I don't think the average office worker will have quite as much clout in their negotiations. Maybe if they work for the inland revenue ..?
A slow hand clap for the stupid, stupid nurses' unions, who have locked their members into a 3-year, 8% deal. OH DEAR!
Pay rises, along with price rises of goods and services are both consequences of inflation of the money supply. Or, alternatively, they are both consequences of deflation of supply of goods and services. Either way, to put prices up and/or demand higher wages is a perfectly rational response.

This is really worrying because that can lock you into an infaltionary spiral as we saw in the 70's. Of course easier to sack and hire people and to outsource. Plus of course if firms start to get strike hassle will simply move production else where were people are more willing to take a cut in living standards.
mmmmm Worry worry worry!

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