Posts Tagged ‘Santander’

12 Per Cent of Workers’ Income Now Eaten Up by Job Costs

September 28, 2013

According to this item on yesterday’s MSN News, http://money.uk.msn.com/news/workers-spend-12percent-on-job-costs, workers are now spending up to 12 per cent of their annual income on job costs, such as commuting to work, child care, work clothes and computer equipment. These cost the average full-time employee £2,681 per year. The report notes that although wages have risen by 1.4 per cent, the cost of working has increased by ten per cent. The report comes from a survey of about 2,000 people for Santander’s cards department. The chief executive of Santander’s cards department, Alan Mathewson said: “Earning a living can be an expensive task, particularly against a backdrop of rising living costs. The price of going to work has increased significantly since last year but average salaries have not and, as a result, workers are considerably worse off.’

With companies increasing trying to cut down on costs by turning to workfare and internships to recruit unpaid labour, employees are having to bear the costs of their own employment. In the case of unpaid internships, they are effectively having to pay for the privilege of having a job. This also partly explains why the government is so keen to cut benefits to the unemployed on the grounds that they should not be better off than the poor souls fortunate enough to be working. In the current jobs market, where having a job may effectively mean a reduction in salary in real terms due to inflation and rising job costs, or indeed are forced to pay for the privilege of working as an unpaid intern or volunteer, many people would feel that they are effectively being penalised for working to the point where they may wonder why they bothered taking the job at all. In order to keep the supply of low or unpaid labour going, the Coalition is forced to cut benefits to the unemployed as far as possible and beyond. The reduction in unemployment benefits and the shabby treatment of those out of work is directly connected and part of the same employment strategy that sees the salaries of those in work reduced, and their conditions of employment lowered. And all the while the Tories announce loudly that in penalising the unemployed, they are somehow preserving the dignity and morale of the aspirational employees, who don’t want to go to work while others in their street still have their curtains closed. The real benefit of these policies isn’t to the employees, but to the Tories’ immensely wealth paymasters in Tesco, ASDA, News International and the like. For their company executives, it is, as Private Eye would say, very much a case of ‘trebles all round’.

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