Unions have found that bonuses paid to UK bankers, insurance brokers and other financial sector workers have reached record highs and are growing more than six times faster than the average UK salary.
The Trades Union Congress said its analysis shows the city’s pre-financial crash era bumper executive bonuses are back, even as much of the country struggles with rising costs of living which is more than the increment.
An analysis of official data shows that bonuses in the financial and insurance sector grew by 27.9% over the previous year, while the average salary increased by only 4.2% over the same period. Around £6bn in bonuses was paid out to the city in March alone.
Frances O’Grady, Secretary General TUCsaid: “There is no justification in the best of times for such an Obscene City bonus – let alone during a crisis costing lives. Struggling to keep up.
“Workers are at breaking point, badly exposed to rising bills after a decade of stagnant wages and universal credit cuts. Ministers have no hesitation in calling for a moratorium on public sector salaries, but turn a blind eye to the shocking city excesses. It’s time to put bonuses on top – not salaries for everyone else. ,
O’Grady called for a series of measures to rein in the city’s bonuses and raise wages in the economy. These include setting a maximum wage ratio so that the bonus does not exceed 10% of the total salary; Ensuring that bonus schemes are open to all employees on equal terms; and ensuring that employees are included on company pay committees.
Last month, the Institute for Fiscal Studies thinktank found that a return to bumper finance industry payouts meant Top 1% highest paid workers were pulling further away from the rest of the UK workforce In the biggest jump in Citi bonuses and payouts since the 2008 financial crisis.
The TUC analysis showed that the average bonus paid in the finance and insurance sector increased to £4,021 in the first three months of this year, from £3,146 in the same period last year. In contrast, the average monthly salary in the UK increased from £2,315 to £2,413. These figures put Citi Bonus at the highest level since records began, dwarfing the average salary in almost all areas.
In March, the finance and insurance bonus was 2.4 times larger than the average employee’s basic monthly salary. They exceeded the average basic monthly wage in every other sector of the economy, except mining and quarrying.
Research comes as the crisis of cost of living deepens, with The annual rate of inflation is running at 9% And regulator Offgame announced that the energy price limit would be increased by more than £800 in the autumn. This follows a 54% increase in April, and will take the average annual household energy bill up to £2,800.
Real wages in the economy, adjusted for inflation, are £68 less per month than a year ago. The situation is even worse for public sector workers, whose monthly real wages average £131 less.
According to TUC, beyond finance and insurance, other industries are turning to lump-sum payments to recruit more people amid labor shortages, potentially hindering more sustained increases in wages.
Its analysis showed record bonus payments across a range of sectors, including professional, scientific and technical services, real estate, arts and entertainment, administrative and support services, construction, wholesale trade, and housing and food.
TUC is urging the government to tackle the crisis by introducing fair wage agreements in industrial areas, and giving unions access to workplaces to tell workers about the benefits of union membership.
It seeks to immediately raise the minimum wage for all workers, regardless of age, to at least £10 an hour, and has called for a “decent wage increase” for all public service workers. It also reiterated its call Increase in the number of bank holidaysSaying that UK workers have less than people in other countries.