Inflation.

[Bobc]

You mean like warehouse workers, shelf stackers at supermarkets, civil servants, anyone on minimum wage, serving staff at restaurants that sort of thing? Even NHS workers eventually got a reasonable increase last year. Seems to me the whole country saw at least 5% over the last 12 months if not significantly more. But then, I tend to pay attention to the news around this sort of thing as I like money ?‍

The thing is, that firstly, most people in the private sector haven't had a pay rise yet, and secondly, 5% doesn't cut it for low-middle earners, where most of the things they spend their money on (energy, fuel, food) have gone up by 20-50%.

I had the discussion with my co-directors only the other day about an across-the-board 5% pay rise for our staff, and to do that we would need to raise our hourly charge rate by 8%. We are in a competitive market, and so we're not sure whether we can even get away with that without losing clients. If we do raise our rates (and other suppliers to that client do too, which is probable), then that company will have to raise its prices to pay its staff another 5% AND raise its prices ANOTHER 5% in order to cover its increased input costs, and so the vicious cycle of inflation takes hold.

We haven't even scraped the surface of what could be coming. Be careful what you wish for.

 

[lustyd]

The thing is, that firstly, most people in the private sector haven't had a pay rise yet

The thing is, you seem to not be keeping abreast of current events. Most people have had pay rises in line with inflation, as I mentioned in my previous post. Perhaps you and your co-directors need to get a move on before you lose your staff who have seen everyone else getting pay rises very publicly.

 

[Momac]

Local increased prices on some items are a supply and demand thing . Not really inflation.

As an example some engine oil I had seen last month was priced 50% higher than a year ago. It eventually sold out at that higher price.
I notice today the same product is back at much the same price as it was a year ago.

 

[lustyd]

Yes I've seen a lot of price gouging during Covid and post Brexit. Unfortunately some of it has stuck at higher prices and some items are no longer easily available in the UK at all. It's a very strange time to live at the moment!

 

[rotrax]

The thing is, that firstly, most people in the private sector haven't had a pay rise yet, and secondly, 5% doesn't cut it for low-middle earners, where most of the things they spend their money on (energy, fuel, food) have gone up by 20-50%.

I had the discussion with my co-directors only the other day about an across-the-board 5% pay rise for our staff, and to do that we would need to raise our hourly charge rate by 8%. We are in a competitive market, and so we're not sure whether we can even get away with that without losing clients. If we do raise our rates (and other suppliers to that client do too, which is probable), then that company will have to raise its prices to pay its staff another 5% AND raise its prices ANOTHER 5% in order to cover its increased input costs, and so the vicious cycle of inflation takes hold.

We haven't even scraped the surface of what could be coming. Be careful what you wish for.

I expect your competitors are having EXACTLY the same situation.

Unless you blink first, it should even out.

You can only play what is in front of you and you can only best guess the future.

If you cannot control it, why worry?

Everybody else is in the same boat and will have to adjust.

 

[bedouin]

Yes, on the second try. Initially it was 1% which caused outrage in a public who were very grateful. It's still not enough, but we live in a democracy and the majority apparently voted for this kind of society.

Ah - so you realise that you were being economical with the truth when saying 1% - you standing for PM

I didn't see any public outrage - any evidence for that statement.

I think the public are mindful of the nurses but in an environment where many have not had a pay rise for years they are perhaps not so happy to have their taxes put up signficantly to fund it when they themselves are facing the same cost of living squeeze.

 

[lustyd]

so you realise that you were being economical with the truth when saying 1%

No, I was being purposefully facetious as the original 1% increase was a complete insult to the people we'd been telling were crucial for a year. I'm sorry that wasn't obvious to you from my post.

 

[bedouin]

No, I was being purposefully facetious as the original 1% increase was a complete insult to the people we'd been telling were crucial for a year. I'm sorry that wasn't obvious to you from my post.

Feel free to insult me in that way any time.

You just don't get it do you? In the real world most people are not getting pay rises - and many are finding their pay has been cut over the last 2 years.

 

[lustyd]

Feel free to insult me in that way any time.

If you took an insult from that it's your prerogative, I didn't intend one.

I have detailed many areas where people have had pay rises in the real world. Heck, Amazon were giving £3k joining bonuses to work in their warehouses in addition to raising wages. I don't see how you feel you can speak for "most people" while offering zero evidence yet insist I don't speak for most people while offering plenty.

 

[bedouin]

If you took an insult from that it's your prerogative, I didn't intend one.

No - I didn't take it as an insult. Just saying there are many people outthere - myself included - who would love a 1% pay rise.

 

[jordanbasset]

Some figures here for wage growth for the latest date I can find

Average weekly earnings in Great Britain - Office for National Statistics

• Growth in average total pay (including bonuses) was 4.9% and growth in regular pay (excluding bonuses) was 4.3% among employees in August to October 2021.
• Average total pay growth for the private sector was 5.4% in August to October 2021, while for the public sector, it was 2.7%; all sectors saw growth, with the finance and business services sector seeing the largest growth rate at 7.7%

 

[bedouin]

Is there a gap between public and private sector pay?

The Treasury release said that average earnings in 2020-21 had risen:

• 4.5% in the public sector
• 1.8% in the private sector

 

[lustyd]

No - I didn't take it as an insult. Just saying there are many people outthere - myself included - who would love a 1% pay rise.

Sorry I completely misread what you posted! ?

 

[Graham376]

Yes I've seen a lot of price gouging during Covid and post Brexit. Unfortunately some of it has stuck at higher prices and some items are no longer easily available in the UK at all. It's a very strange time to live at the moment!

Not just the UK, it's a world wide supply problem and in some cases profiteering disguised as a Covid effect. With the way some prices are increasing, far above the published inflation rate and measly 1.3% savings rate, best to buy anything needed now before the price goes up.

 

[Bobc]

The thing is, you seem to not be keeping abreast of current events. Most people have had pay rises in line with inflation, as I mentioned in my previous post. Perhaps you and your co-directors need to get a move on before you lose your staff who have seen everyone else getting pay rises very publicly.

Thank you for your sage advice. Having only been running companies for 30 years, I still have a lot to learn.

 

[rotrax]

Quite right. Every day is a learning day in business.

I got a high level job once by answering in interview the question " What is the key to profitability in business"

I told the interview panel what Sol Reubens told my brother and I when we were kids helping out in the school holidays where Mum worked as a machinist making uniforms for Securicor out of old Met Police uniforms. He was very clear.

" Buy cheap, sell dear, keep the overhead down! " Sage advice.

The area manager later censured me for bad figures. I reminded him of our interview conversation and told him that the overhead was not in my control, but his, and what did he intend to do about it as I was holding my end up on the other two factors.

He muttered under his breath and buggered off, never to bring it up again.

 

[gordmac]

Is there a gap between public and private sector pay?

The Treasury release said that average earnings in 2020-21 had risen:

• 4.5% in the public sector
• 1.8% in the private sector

Interesting article which explains well why looking at average earnings doesn't give an accurate depiction.

 

[Povremeni pomorac]

Again though, oil hasn't "more than doubled since last year" it's pretty much stable aside from the dip in price due to a total lack of demand and oil prices have had no impact on prices in the high street. The fundamental reason things cost more this year is that there are more pounds and dollars by orders of magnitude than there were before. We had to pay for all those eat out to help out meals somehow!

DOn't forget the c£35Bn flushed down the toilet to give Dildo Harding a job and pass on dodgy contracts to tory donors for PPE that was often not fit for purpose.

 

[Povremeni pomorac]

Indeed, but I was responding to a post suggesting that the people spending money aren't getting more to keep up with inflation. I was highlighting that actually the majority already have had inflationary rises, even when they may have thought they were getting a raise for being good at their job.

Yes, on the second try. Initially it was 1% which caused outrage in a public who were very grateful. It's still not enough, but we live in a democracy and the majority apparently voted for this kind of society.

You are so right. I am a very rare animal: a Socialist Sailor.

 

[Povremeni pomorac]

The thing is, you seem to not be keeping abreast of current events. Most people have had pay rises in line with inflation, as I mentioned in my previous post. Perhaps you and your co-directors need to get a move on before you lose your staff who have seen everyone else getting pay rises very publicly.

I get better pay rises in retirement than I did when working in the NHS. I'm sooooo glad I left early. I'm much better off overall.