Low Pay and NWA

national | miscellaneous | news report Friday January 17, 2003 11:14 by Eoin O'M

Sound arguments against low pay at a crucial time.

Those involved in the ongoing national wage agreement talks and those who believe that Partnership still points the way forward for this economy could do worse than read Polly Toynbee's article in this mornings Guardian.

For far too long we have lived under the illusion that national wage agreeements serve the interests of workers, especially those in low pay. A fallacy spouted by the militant wing of the PD's, ISME, is that higher pay would lead to capital and job flight. Drawing from Polly's article this morning, I suggest that the sick and elderly in our hospitals cannot be cared for in south Asia nor can bar and cafe workers simply be moved to north Africa. The point is that successful capitalist economies (damn me if I just contradicted myself) rely on a certain level of economic activity regardless of conditions elsewhere in other economies.

Wage restraint is a red herring for those who believe that competitveness is more important than a more than living wage or that somehow paying more for basic social provision, like refuse charges, through secondary taxes, is good for us. Enough of the low-taxation and low spend model.

Any takers?