The governor of the Bank of England has advised workers to “think and consider” asking for salary raises since they risk fueling inflation.
Andrew Bailey, speaking before the Treasury Select Committee, said there was a “societal debate” about whether people should strive for pay increases.
Bailey, who makes £575,000 per year, said he had turned down a wage increase. “My view — and I was questioned about this the other day — I do believe that people, particularly those on higher wages, should think and consider on asking for large wage rises,” he said.
“It’s a societal question. I’m not preaching about this. I was asked if I’ve taken a pay rise myself this year and I said no, I’ve asked the bank not to give me one. I felt that was the right thing for me personally. “It’s a societal issue.” This is not something I’m preaching about. I was asked if I had received a wage rise this year, and I replied that I had requested that the bank not do so. “But everyone must make their own decision.” It’s not my place to advise others what they should do.”
Pay increases, according to David Ramsden, the Bank’s deputy governor for markets and banks, risk “embedding” inflation in the economy. He stated, “Whether in wage bargaining, but equally vital in firm pricing.” “We must prevent the inflation mentality that is beginning to take hold.”
However, a trade union leader has stated that the Bank of England governor should not “lecture” workers. “Yet again, workers are being asked to pay the price, this time for inflation and the energy crisis,” Unite national secretary Sharon Graham said. Why should they be held responsible for the energy market’s failures and the government’s absolute shambles? The governor of the Bank of England does not need to lecture workers on salary restrictions. Why is it that whenever there is a crisis, wealthy people demand that ordinary people pay for it?
“Enough is enough, we will be demanding that employers who can pay, do pay. Let’s be clear, pay restraint is nothing more than a call for a national pay cut.”
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