Shareholder Bonanza

 

Payouts to shareholders have increased three times faster than workers’ wages since the 2008 financial crash, according to a new analysis that unions claim shows companies can afford to pay higher salaries.

Shareholder handouts, through both dividends and companies buying back their own shares, have soared £440bn above inflation since 2008. 

Meanwhile, wages have fallen, growing £510bn less than inflation. 

The gap has widened since the financial crash. Before the crisis, dividends grew at double the rate of wages.

 The TUC say it is evidence that firms do have the capacity for wage increases if they allow their workers a greater share of the business’s wealth.

The TUC accused ministers of helping to hold down pay for the last decade, cut back the rights of workers, and leave “Victorian-era corporate governance structures untouched”. Public-sector wages have been repeatedly held down below inflation under austerity measures pursued by successive governments. 

“Too many businesses are lining shareholders’ pockets without giving workers a fair deal,” said Frances O’Grady, TUC general secretary. “British companies are being used as cash machines for shareholders..."

Shareholder payouts rose three times faster than UK wages, says TUC | Workers' rights | The Guardian