Qdrop
05-11-2005, 08:49 AM
http://news.ft.com/cms/s/c903949a-c176-11d9-943f-00000e2511c8,s01=2.html
Balance of power shifts to the employers
By Christopher Swann in Washington
The last time Miguel had a pay rise that kept pace with cost of living, Bill Clinton was in the White House, the Spice Girls were still together and investors were in love with internet stocks.
Since then, the hotel banquet server has been forced to give up a two-bedroom apartment and now shares one bedroom with his wife and two children.
“It has been harder and harder to get pay rises out of the company even though profits are good,” he complains. Over the past year the problem of stagnant wages has not been confined solely to those working for companies that are heavily exposed to foreign competition. With wages across the nation failing to keep pace with inflation, an increasing number of workers are justified in feeling that they have been treading water, or worse.
For most economists, this suggests that there is more slack in the labour market than the 5.2 per cent unemployment rate would suggest. Others say globalisation and lower levels of unionisation may have led to a longer-term shift in the balance of power between workers and employers....
Balance of power shifts to the employers
By Christopher Swann in Washington
The last time Miguel had a pay rise that kept pace with cost of living, Bill Clinton was in the White House, the Spice Girls were still together and investors were in love with internet stocks.
Since then, the hotel banquet server has been forced to give up a two-bedroom apartment and now shares one bedroom with his wife and two children.
“It has been harder and harder to get pay rises out of the company even though profits are good,” he complains. Over the past year the problem of stagnant wages has not been confined solely to those working for companies that are heavily exposed to foreign competition. With wages across the nation failing to keep pace with inflation, an increasing number of workers are justified in feeling that they have been treading water, or worse.
For most economists, this suggests that there is more slack in the labour market than the 5.2 per cent unemployment rate would suggest. Others say globalisation and lower levels of unionisation may have led to a longer-term shift in the balance of power between workers and employers....