WAGE – TWO
Figures are enough to tell the true story of ‘legitimate wage inequality’ created by states from their national income; which has increasingly been a serious issue of modern society.
There is huge variation of wage rate between bosses and workers, community to community, male to female, young to old, rich country to poor country and investors to workers. No uniformity has been applied to determine the wage rate.
CEOs are taking huge amount in the name of bonus from profit.1. Here are published few examples about bonus and disparity- ‘‘the EU was proposing to cap bonuses to 100% of a banker’s annual salary or to 200% if shareholders approve’’2. ‘‘Royal Bank of Scotland to pay £576m staff bonuses despite £8.2bn of losses but boss warns of job losses as part of £6bn cost cutting plan’’3 ‘‘Lloyd’s chief pockets £1.7m bonus, staff share £395m in bonuses despite losses.’’ 4 ‘‘NHS England’s HRD to collect six figure salaries’’ but nurses are working for very low figure.5 The Fair Pay Campus Report, 2012 based on the responses of 113 universities, finds that ‘‘the average pay differential between the highest- and lowest-paid university workers was 18.6:1’’6, where an academia works for pittance.
Governments are competing to increase military expenses rather than competing to increasing minimum wage rate and social benefits, would rather prefer to force itself to get out from welfare state. James Madison says ‘‘War is the parent of armies’’7 Global military expenditure stands at over $1.7 trillion in annual expenditure at current prices for 2012. 8 Footballer are paid sky rocketing payment than an army personal despite having high life risk and bad social life. Similarly minimum highest per hour wage rate of Australia is $17.39 and the lowest rate in Uganda is $0.01 per hour.
Prof Stieglitz writes ‘‘If monopoly power increases, or firms (like banks) develop better methods of exploiting ordinary consumers, it will show up as higher profits and, when capitalized, as an increase in financial wealth.’’9
Figures are enough to tell the true story of ‘legitimate inequality’ created by states from their national income; which has increasingly been a serious issue of modern society. Since globalisation began private sector is considered very powerful. They have their own strong union to protest and lobby the ideas. Labour union is not so decisive against their corporate decisions.