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Unread 17 Jul 2008, 11:47   #7
Tietäjä
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Location: Finland
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Re: Council strike, inflation and living cost

Quote:
Originally Posted by G.K Zhukov View Post
Isnt getting 2.45% wage rise when inflation is above 3% a pay cut?
It's a nominal pay rise. One of the reasons why a degree of inflation could be claimed to be useful to an economy is the fact that it brings real flexibility through nominal illusion. Technically, yes, if inflation's above your pay rise level, it's a cut, but most people don't think about it like that. People would be far more pissed off if the inflation was zero and they'd take a 0.55% down instead. Is it the same thing? Arguably. People occasionally take pay cuts without realizing they're actually taking pay cuts - they might be thinking they're in fact getting pay rises.

And some of the time the continuous pressure to request pay rises with no actual real background for it - no increased productivity per labour - eventually excerts upwards pressure on price development.

Quote:
Originally Posted by furball
The public sector is a cushy place to work in and Labour have turned it (in particular local government) into a gravy train for those not good enough to get to managerial level in the private sector.

Of course there are exceptions and some areas of the public sector are underpaid in comparison to others that are overpaid
It might be that the situation there is a bit alike to how it's here. Public sector is somewhat underpaid (in compared to private sector), but one could argue that it's not so on terms broader than just simple pay roll numbers. Essentially, through lower wages, people in public sectors are paying a premium for the "cushy place to work".


Would it be possible for you or kal to answer my enquiry? It's in your private message box.
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