UK must change direction to avoid stagnation of living standards

The report commissioned by the independent research and policy organisation, the Resolution Foundation was carried out by the Commission on Living Standards, a broad group of trade unionists, employers, economists, and heads of parents’ groups.
Their findings show millions of UK households are heading for a long period of stagnant living standards unless bold steps are taken to ensure that growth over the next decade is shared. The report documents how lower and middle income households are suffering economic stagnation.
The report says collective bargaining agreements and union membership have traditionally protected against inequality but labour rights are now seriously under attack.
“There has been an erosion of regulations and institutions
that used to buttress the negotiating power of workers in
the bottom half of the wage distribution, most centrally
the declining coverage of collective union agreements. This
has tilted the balance of power towards employers and
has done so particularly in service sectors where union
membership is lowest. These sectors now make up a large
and growing share of employment, particularly in low to
middle income households.”
Commission on Living Standards Report 2012
Jennings said, “The race to the bottom is on and it’s the lower and middle income households who are being squeezed. The findings show what we already know: union membership and collective bargaining are buffers to greed and offer a way for the whole of society to benefit from growth. Many of the new jobs in the next 20 years will come in the service sector which UNI represents. As the report points out, it’s these service workers who need to organise if they are not to be picked off by a system that benefits the few at the expense of the many.”
He added, “The report is right to highlight how the erosion of labour rights has led to growing inequality. Chancellor Osborne’s recent proposal for workers’ to sell off labour rights gained over a hundred years for a few hundred pounds is indicative of this UK government’s cynical approach.
Read the full report by clicking on tab related file at top of the page