Is Fear of Unemployment being Used to Lower Pay?

Is Fear of Unemployment being Used to Lower Pay?

Frances O’Grady, leader of the Trade Union Congress, has suggested that unemployment is being used as part of a government strategy to decrease pay.

A motion at the TUC’s annual conference next week warned that increasing unemployment is a “deliberate policy aim of this government”. O’Grady then went on to suggest there is evidence to suggest that lengthening the benefits queue could possibly be a calculated political move.

“There was certainly a strong view in the 1980s, not just amongst trade unions, but also among a number of intellectuals and commentators, that unemployment was being used as a deliberate measure to keep pay down, and to keep people scared.”

A Department for Work and Pensions spokesperson said:

“To suggest youth unemployment is a deliberate policy is a ridiculous accusation that is, quite frankly, utterly laughable.

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