According to the Trade Union Congress (TUC), greenholders have seen payouts of £440 billion more than inflation since 2008, despite wages stagnant.
An analysis by the organization shows that wages have fallen by £510 billion in comparison to inflation, even as dividends to shareholders have increased.
The TUC accused the government of failing to reform the company law to ensure that workers were not harmed by shareholders.
It said payments used to grow at twice the rate of wages before the financial crisis, but have since increased, with dividends now growing at more than three times the rate of wages.
Too many businesses are pocketing shareholders without paying workers a fair deal
TUC Secretary General Frances O’Grady said: “If you work for a living, you should make a decent living. But too many businesses are pocketing shareholders without paying workers a fair deal.
“British companies are being used as cash machines for shareholders – because the boardroom has been given the wrong incentives.
“When you see working people fighting for better wages, they want a fair share of the wealth they have created. But boardrooms are raiding the company’s coffers for shareholders instead of funding for appropriate pay increases and investments.
“We need a government that strikes a fair balance of power between workers and employers – not one that undercuts wages, attacks workers’ rights, and refuses to update Victorian company laws.”
A TUC estimate suggests that if wage growth and dividend growth match inflation since 2008, a cumulative £510 billion would go to higher wages and £440 billion to fewer shareholders.
The organization is calling for seats for workers on company boards as well as stronger wage bargaining rights and a £15 minimum wage “as soon as possible”.
The TUC lays the blame entirely on the government, saying the figures are “being shaped by government policy”.
“The new prime minister has pitted herself against lazy and overpaid UK workers. And she is planning new laws to cut workers’ rights and stop wages,” said Ms. O’Grady.
“If it pulls workers down, it will also pull down the economy. To strengthen our economy, they must stop payments that deprive British industry of the investment we need. ,
Credit: www.standard.co.uk /