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Average Wage in Scotland Down By £1.9k in Four Years

Research from the Trade Union Congress (TUC) has revealed that the real-value, average wage in Scotland fell by £1,900 in the four years between 2010 and 2014.

Conversely the study found that wage for chief executives in the UK rose, with the average salary of chief executive of a FTSE 100 company making the equivalent of the average annual wage in two days, with their annual salary being 123 times greater than that of the average worker in the UK.

The average wage from the average chief executive was £27,045.


The study from the TUC which revealed the differences in wage came following figures from the Chartered Institute of Personnel and Development (CIPD). The figures showed that 50% of workers received a pay cut or pay freeze in the last year, compared to only 2% of those who obtained a pay rise.

The figures from the TUD led to the CIPD stating that there was a real pay divide between the average worker and a top CEO, with wage disparity creating a “tale of two workforces”.

Experts have warned that such disparity in wages has added £33 billion to the UK deficit, with workers failing to spend and support the local economy.

The average full time wage in Scotland fell by £1,882 between 2010-2014.

Despite the figures, over 100,000 employees received the average living wage last year, a record high since the Living Wage campaign began.

Political Pressure

David Cameron and Labour leader Ed Miliband have urged employers to give workers pay rises, stating that the time is right economically.

Pressure groups and other important voices have all expressed concern regarding wages and the current economic situation. Citizens Advice Scotland spokesman Rob Gowan stated that there were a “significant number” of people who were suffering financially as a result of stagnating wages.

He said “Many of these people who are referred to food banks for example are people who are in work, but they are not earning enough to put food on the table for themselves and their family.

“Others get into debt- which usually makes their situation worse.

“It’s not just low wages that are the problem. We often see cases where a workers wages have been withheld or not paid in full, or sick pay and holiday pay withheld.”

He added: “Zero hour contracts are also a growing problem which can see employees going without a proper income for long periods.”

Peter Kelly, director of a local pressure group, the Glasgow Poverty Alliance said: “This wide inequality in income is bad for business, bad for society and bad for the individual.”

Despite the difference in wages adding to the deficit a government spokesman insisted that the economic plan was working, The Treasury spokesman said: “The government’s long term economic plan is working, halving the deficit as a share of GDP over the Parliament and wages now rising significantly faster than inflation.”

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