Falling wages: The reality of an economy not working for all

Llanelli AM Keith Davies says the cost of living crisis is not over as new figures released today, show that wages for local workers continue to fall.

At the start of Fair Pay Fortnight (which runs from February 16th – March 1st), new figures produced by the TUC show that the average full time employee wage in Wales has fallen by over £40 per week since 2010. In stark contrast, wages for high level executives rose by over 26%.

Keith Davies AM said:

“We are facing a make or break situation for many families. The limited effect of falling inflation will do little to counter the sustained attack on wages since the last general election. Independent reports by the Joseph Rowntree Foundation and others demonstrate that the economy isn’t working for everyone with the poorest hit hardest.

“In fact, those watching the pennies will know that petrol and diesel prices are already starting to creep back up. The drop in oil prices still hasn’t shown in gas or electricity bills because the UK government won’t stand up to the energy companies. We need that intervention here because energy prices in Wales are the higher than the UK average.”

The TUC says that UK workers have endured the longest real wage squeeze since records began in the 1850s and that even with inflation falling sharply in recent months at current rates of progress it will still take years for wages to recover to their pre-recession levels.

Keith Davies AM continued:

“Labour has promised to increase the minimum wage to over £8 per hour if elected in May, a clear commitment to making work pay and the Welsh NHS and Labour-led Carmarthenshire Council has committed to introducing a living wage to support those at the bottom of the pay scale.”