May 2017 - WB&DTUC delegates assisted Midlands TUC touring Wolverhampton and Dudley
January 2016 - Real wages in the West Midlands still worth nearly £2,000 less than in 2008, according to new TUC analysis
Average pay (median) in the West Midlands is still worth £1,981 less in real terms than it was in 2008 – a shortfall of £38 a week or 8.5% – according to new analysis published by the TUC.
The average annual wage in the West Midlands has increased in real terms by £908 from 2014 to 2015 – the first annual increase for several years.
The figures confirm that, despite recent strengthening of real wages, workers in the region still have a long way to go to restore all the earnings they lost following the longest squeeze on wages since records began in the 1850s.
However, current indications suggest that the wage recovery may already be stalling. Monthly data on average weekly earnings from the Office for National Statistics show that wage growth slowed in the second half of 2015.
The TUC warns that the government’s plans to continue to hold back wages in the public sector will be a significant drag on average wage growth. And recent monthly surveys by the employment information service XpertHR suggest that private sector wage settlements remain well below their pre-crisis trend.
The TUC says that while forthcoming increases to the minimum wage have an important role to play in improving wages for some workers, this is not enough. Concerted action from the government is needed to support stronger wage increases for all low and middle-income workers, not just those at the very bottom.
However, the TUC warns that the government’s Trade Union Bill will weaken the power of workers to negotiate a fair share of economic growth through decent pay rises. This could lead to slower wage growth becoming embedded as a longer-term problem, causing trouble not only for workers and their families, but also for businesses that rely on their spending.
Instead of attacking workers and their representatives, the TUC is calling on the government to engage with trade unions on a positive agenda to improve both pay and productivity. This should include stronger collective bargaining rights, modern wage councils to ensure that pay increases follow productivity gains, and worker representation on remuneration committees to bring back a bit of reality to boardroom pay.
TUC Regional Secretary Lee Barron said: “Working people deserve a fair share of the wealth they create. But despite five years of economic growth, the pressure on their living standards has barely let up. The average annual wage in the West Midlands is still worth nearly £2,000 less than it was back in 2008.
“The government must do the right thing for the economy, and the right thing by workers. They should invest more in the skills and infrastructure the UK needs for higher productivity. They should make sure that working people see productivity gains in their pay packets. And they should work positively with trade unions instead of attacking workers and their representatives with the Trade Union Bill.”
Median annual real earnings, all employees West Midlands
Average pay in the West Midlands fell by over £1,000 says TUC in real terms in 2014, according to new analysis published by the TUC to mark the beginning of Fair Pay Fortnight which runs from the 16 February to March 1 2015.
This means that the average full-time employee wage in the West Midlands has fallen in real terms by £2,430 since 2010 – over £45 a week.
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.
While average pay for workers in the West Midlands fell by 8.9 per cent in real terms between 2010 and 2014, pay for FTSE 100 bosses shot up by 26 per cent over the same period, says the TUC.
FTSE 100 chief executives saw their pay increase, on average, by £700,000 in real terms between 2010 and 2014.
The average wage for a FTSE 100 CEO in 2014 was £3,334,000 – 134 times the average annual wage in the West Midlands.
The TUC estimates that it took a FTSE 100 CEO less than two working days, on average, to earn what most full-time workers in the region earn in a year.
The TUC is organising Fair Pay Fortnight to raise awareness about pay inequality and to campaign for a higher minimum wage, greater extension of the living wage and higher pay settlements in the public and private sector.
A number of events and activitiestook place across the West Midlands during the Fortnight: street stalls in Brierley Hill, Halesowen, Worcester and Coventry; Living Wage actions with Birmingham Citizens on February 24th; a CLASS conference in Birmingham on 26th and the Midlands TUC Regional AGM with Frances O’Grady, TUC General Secretary, as guest speaker on February 28th.
TUC Midlands Regional Secretary Lee Barron: “Despite growth returning, 2014 was another miserable year for living standards in the West Midlands with real wages falling by over £1,000 in real terms.
Even though inflation has fallen sharply in recent months, it is still going to take years for people’s earnings just to recover to their pre-recession levels.
It is a different story though for those at the top. Senior City executives have seen a huge boost in their fortunes since the election as their wages have skyrocketed.
This is why we are organising Fair Pay Fortnight, to raise awareness about pay inequality and to call for a sustainable recovery in which everybody shares.”
Changes in the median annual real earnings of full-time employees 2010-2014
Change Since 2010 (£)
Change Since 2010 (per cent)
Change Since 2013 (£)
Change since 2013 (per cent)
Yorkshire and The Humber
Source: Annual Survey of Hours and Earnings, RPI adjusted. All real values are reported are in April 2014 prices, using April RPI: All Items Index values
Changes in FTSE 100 CEOs real earnings 2010-2014
Change Since 2010 (£)
Change since 2010 (per cent)
FTSE 100 Chief Executives
Source: IDS Directors’ Pay Report 2014/15, data from Graph 1.2: CEO and employee median earning trends data 2000 to 2014.
FTSE 100 CE0 pay, compared to median earnings
West Midlands median wage in 2014
How many more times the regional median wage FTSE 100 earned in 20141
Hours it took CEO to earn median wage in region2
Working days it took CEO to earn median wage in region3
1This value is FTSE 100 median annual wage divided by regional full time median annual wage and rounded to the nearest whole number.
2This value assumes a standard working week of 37.5 hours per week for 52 weeks per year. Not taking any leave into account, this comes to 1950 standard working hours per year. The FTSE 100 median hourly wage was therefore estimated at £1,709.74, which is the FTSE 100 median annual wage divided by 1950. Finally, each regional full time median annual wage was then divided by this hourly rate and rounded to the nearest hour.
3This value took the number of hours it would take a FTSE 100 CEO to earn the full-time median annual wage divided by a standard 7.5 hour work day and was rounded to the nearest tenth of a day.
- Fair Pay Fortnight will run between Monday 16 February and Sunday 1 March.
- The Fortnight is part of the TUC’s Britain Needs a Pay Rise campaign and will feature a series of events across England and Wales to raise awareness about low pay, pay inequality and falling living standards. For more information please visit www.fairpayfortnight.org
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @tucnews