Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
From the RMT website:

The ballot of signalling and other operational staff follows the rejection of a pay-and-conditions offer that holds the prospect of a real-terms cut in living standards.

"We told the company quite clearly that the second-year element of their pay offer to operational staff, of RPI plus 0.5 per cent, would not protect our members against costs that are rising way ahead of the official inflation rate," Bob Crow said.

If the Retail Price Index is so clearly behind 'real' inflation, doesn't it benefit employers? They can offer 'inflation-busting' pay deals to their employees, and appear in a good light for doing so, while actually slowly impoverishing their workers. Who controls or defines the RPI, and why is it so out of whack?

Member of the Anti-Fabulousness League since 1987.

by Ephemera on Mon May 12th, 2008 at 12:43:13 PM EST
[ Parent ]
The government, or rather the Bank of England (in collusion with the macro-economic objectives of govt economic policy) sets the RPI.

It has long been a fix, considering that the price of mortgages is specifically excluded. However, it also ignores fuel prices, house prices, community charges, all the items that are significant parts of the average persons monthly bills, all of which are increasing considerably above the official RPI.

so the RPI is a useless indicator of the change in  people's financial needs. But, as you say, employers, including the govt, like it cos it keeps their costs down.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Mon May 12th, 2008 at 12:55:25 PM EST
[ Parent ]

Display:

Occasional Series