German history shows we can cap bosses' pay
Thursday 07 March 2013
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EmailDirectors' pay "growing up to seven times faster than the average worker's wage" (M Star March 4) is disgraceful. Frances O'Grady is right when she says "urgent reform of boardroom pay" is urgently needed.
With Germany pre-eminent in Europe it is interesting to remember a few salient facts about its post-war history.
For example in the early 1950s laws were passed setting up co-determination, with workers' representatives sharing in all decision-making, including managers' and workers' pay levels.
Following the decision by European countries, including Spain and Greece, to halve Germany's debt, her "economic miracle" took place, and workers' living standards rose and incomes for the bosses didn't soar.
Even when the 1973 oil crisis led to unemployment rising to 400,000, a strike by the Union of Public Employees resulted in a 11 per cent pay rise.
Miliband needs to include in his manifesto pledges to cap and/or heavily tax excessive incomes and ensure a decent living wage for all.
How can bosses say businesses cannot afford it when they award themselves such obscene amounts?
Bernie Evans
Liverpool
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