Fat Cats earn a year's average wage by Friday lunchtime |
Imagine
you only had to work 3 days to get the average wage of a typical full-time
worker in the country. To have all that free time for other pursuits, personal
development and participation in the running of workplaces, the economy and
society - and still earn the current median full-time annual income of
£29,574.
But
here's the critical clarification: we are not talking about a 3-day week on
this annual income; that's a whole other article for another time. We mean 3
days in the entire year of 2019!
Fat
Cat Friday
Last
year it was dubbed Fat Cat Thursday, because the average Chief Executive of the
FTSE 100 top companies could match the entire income of the average worker in
the first three days of 2018. This year it was Fat Cat Friday, 4th January - not
because it took these corporate fat-cats any longer to pile up a year's average
worker's wage, but purely because New Years Day moved by a day.
The
latest report by the High Pay Centre has mind-blowing statistics on the
nauseating inequality at the heart of capitalism. The top bosses in the biggest
100 companies in Britain - the FTSE 100 - awarded themselves an average pay
package of £3.9million last year. That's £1,020 an hour! It's 133 times as much
as the average full-time worker earns.
As
an earlier report (August 2018) from the same source showed, it's an annual
income that workers aged 25 and more, on the government's deliberately misnamed
National Living Wage, would have to work for 386 years to earn! Not a
particularly realistic option, the last time I checked life expectancy
figures!
Galloping
Gap in Incomes
And
contrary to the deceitful rhetoric of the Tories and their ilk, there is no
trend towards greater fairness in pay, nor any tackling of the obscenity of
boardroom greed by an outbreak of shareholders' democracy. Quite the opposite;
the average FTSE 100 CEO had an 11% pay increase compared to the previous year
- at a time when average workers' pay rises hovered around 1.7%. An annual pay
package of £3.9m compared with £3.45m.
And
the gap is galloping ahead between bosses' and workers' pay. In 1998, the
average FTSE 100 chief executive earned 47 times as much as the average
full-time worker. In the past 12 months, it has risen from a differential of
120:1 up to 133:1. Overall, the gap has tripled in the last 20 years, with no
sign of slowing up or narrowing. After all, it's the Remuneration Committees of
these top companies - made up of chief executives and directors of other
companies! - which decide the pay packages.
Talk about nepotism and corruption! It's built into the very DNA of capitalism.
Talk about nepotism and corruption! It's built into the very DNA of capitalism.
That's
why these overlords of capitalist exploitation could've clocked off at 1pm on
Friday 4th January and still go home with the £29,574 it will take the average
full-time worker the whole of the year to earn - if the latter still has a
job!
Morally
Repugnant - Economically Destructive
Not
only is this pay inequality obscene, but there is no justification for it
whatsoever, and it doesn't even make economic sense.
Capitalist
apologists often trot out claims that such salaries are a just reward for 'the
risk takers' at the top of corporations. What risks?
They
hire and fire workers educated by the state, kept well by the NHS, and trained
with the aid of lavish state handouts to companies. The same companies grab
massive state aid for research and development. They rely on state-funded
transport and communications networks to do their daily business, to amass
their private profits with the aid of public subsidies. And then, in pursuit of
even higher profit margins, these capitalist giants operate in the full
knowledge that their pitiful pay rates for the workers who actually produce
their company wealth will be topped up by the likes of Working Tax Credits -
state subsidies to low-paying capitalists, funded by workers' taxes.
Nor
does it make the economy healthier. When a worker gains a modest pay rise, just
about every penny extra is spent - on daily necessities, and in local shops,
cafes, pubs, etc. This helps create or secure other workers' jobs.
In
contrast, the bloated rich gamble on the stock markets to make even more money,
or invest in useless luxuries like yachts, private jets, and works of art that
are often salted away in bank vaults for 'safety', never to be seen nor
appreciated by their owners, let alone wider society.
Capitalist
Hoarders
Their
habits of hoarding - further illustrated by record low levels of industrial
investment from profits - actually adds to job insecurity. The jobs holocaust
in retail recently - with forecasts of 160,000 further job losses in 2019 - is
in substantial part the result of low pay for millions, who therefore struggle
to spend... a system of low pay designed to fund the profits and privileges of
capitalist owners and their disgustingly over-paid chief executives and
directors.
Demand
Action for Legal Maximum Income
It's
not sufficient to expose and condemn this stinking income inequality. We need
action based on concrete alternatives.
It's
not sufficient for the TUC to criticize chief executives for "taking out
more than they put in", to quote Frances O'Grady. It's necessary for the
trade union and socialist movement to tackle this head on with the demand for a
legally-enforced Maximum Income, tied to a legally-enforced national minimum wage.
For
years, the Scottish Socialist Party has advocated a maximum income based on ten
times the minimum wage. Since its Annual Delegate Meeting last April, that's
the policy of my own union, Usdaw, with its 430,000 members.
As I
said at the Usdaw conference, in successfully proposing this policy of a Legal
Maximum Income initially set at 10 times the national minimum wage:
"Of
course, there will be screams of hell and damnation from on high. Let
them scream blue murder as long as they want. When did that ever stop the trade
union movement from fighting for what is right?
"I
think this is an extremely moderate and modest demand. I could put the case for
4:1 or 5:1 but I am going to be moderate, let's start with 10:1 as a measure to
cut the inequality...
"If
we assume a 35-hour week, a policy I strongly and passionately advocate, a 10:1
differential on the policy of the union for a £10 minimum wage will be
£100-an-hour. That's £3,500 a week. It is £182,000 a year. Who in hell could
object to being limited to that as an income? Who could argue that it is a
disincentive to do a job, however skilled it may be, if you only get £182,000?
By the way, it doesn't even affect a full 1% of the population. The infamous 1%
are those on roughly £150,000 or more. This is setting the ceiling on £182,000
a year.
"We
cannot sit back and wait for social justice off the Tories. We cannot sit back
and wait for a social conscience to erupt in the boardrooms of big business. We
need to argue the case as a union, amongst our own members, inside the TUC,
inside the Labour Party, (we are already convinced in the Scottish Socialist
Party!), convince people of this policy, to then go forward and get it adopted
and implemented."
[quoted from Usdaw
verbatim Report of ADM 2018]
HES workers left reliant on Salvation Army and food-banks |
Two
Planets on Earth
Fat
Cat Friday coincided with yet more inflation-busting train fare increases; 160
workers at Health Environmental Services in Shotts being forced to turn to Salvation Army charity and food
banks for survival after being made redundant, but without any redundancy
payments, and still owed their December wages; child poverty levels rocketing
at their fastest rate in 30 years; and one in every 200 people being identified
as either homeless or in totally inadequate housing.
Two planets here on Earth! If these contrasting fortunes of the capitalist
exploiters and the working class don't make your blood boil in anger, I'd
recommend medical attention.
We
need to use this obscene start to the New Year to redouble our resolve in
battling against poverty and inequality. To popularise the demand for a Legal Maximum Income initially set at 10 times the national minimum wage, as the
inseparable companion to the campaign for an immediate £10-an-hour national
minimum wage for all over 16, without exception.
Organise!
As I
said in the same speech at Usdaw conference last April:
"I
do not claim that our proposition solves everything. Speaking as a socialist
trade unionist, I believe democratic public ownership of the commanding heights
of the economy and the biggest businesses is part of the solution. I do not
just want to see a limitation on the slice of the cake that the tops of
industry get. I want us collectively to own the whole bloody bakery!
However,
this proposition goes one hell of a way towards tackling the inequality. It is
a radical departure from the morally repugnant and economically destructive
inequality that is increasing at the minute."
Take
up the fight for a minimum of £10-an-hour now, immediately, and a maximum
income of £100-an-hour - in your unions, on the streets. Help make advances in
2019 towards equality and socialism in our lifetimes. Demand not only a fairer
share of the cake, but collective ownership of the bakery!
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