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Rising prices continue to devalue wages – Usdaw calls for a new deal for workers to tackle the cost of living crisis

Date: 20 September 2023 Retail trade union Usdaw is calling for the Government to address the cost of living crisis, after today’s inflations figures show that wages continue to be devalued by prices rising faster than incomes. The Retail Prices Index (RPI) rate rose from 9% to 9.1%, the Consumer Prices Index (CPI) dipped slightly to 6.7%.
Paddy Lillis – Usdaw General Secretary says: “The Government were too busy last month congratulating themselves on a small dip in inflation, only to see it rise again this month. While they may take small comfort in the CPI rate dipping slightly, Usdaw contends that RPI is a more accurate measure of the price rises experienced by working people. This complacency only adds to their failure to address the crisis in workers’ pay and employment rights that is making the ongoing cost of living emergency much worse.
 
“Skyrocketing prices, particularly on food items, leave too many workers struggling to make ends meet. Food inflation remains painfully high at 13.6% and continues to have a severe impact on low-paid workers struggling to make ends meet. Regular pay, excluding bonuses, rose by 7.8% in May to July compared with a year earlier. That is below today’s RPI rate of inflation of 9.1%, amounting to a real-terms pay cut and continuing a decade or more of unprecedented pay suppression.
 
“Despite growth in regular pay low-paid workers feel no better off, with continuing high inflation, high interest rates and cost pressures that are significantly over and above the headline rate. In fact some prices, such as petrol and diesel, have risen again in recent weeks and food inflation, in particular, continues to put huge pressure on working families.
 
“Short-term support with ongoing cost of living pressures are only sticking plasters and is not enough to help those struggling to make ends meet. Our members need lasting solutions with a new deal for workers. Only Labour is pledged to deliver that new deal within 100 days of coming into government. Only Labour has the policies and ideas that can put the country back on track.”
 
Labour’s New Deal for Workers includes:
  • An end to insecure employment, tackling short hours by giving workers contracts that reflect their normal hours and a ban on exploitative zero-hours contracts.
  • Minimum wage to become a real living wage, with the full rate to be paid to all workers from 18 years old.
  • Introduction of a standalone offence for assaulting a retail worker along with legislation to tackle third-party harassment.
  • Single Enforcement Body to ensure targeted and proactive enforcement of workers’ rights.
  • Action to make apprenticeships accessible to more workers, especially people who are currently disadvantaged in the labour market.
  • Mental health care people need through 8,500 more mental health professionals, along with a plan to clear the Conservatives’ care backlog and build a system in the long-term that can provide care within a month. 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with over 350,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
 
RPI v CPI: Usdaw argues that the Retail Prices Index (RPI) is a better measure of inflationary pressure on low-paid workers because it includes housing costs, like mortgage interest and buildings insurance, along with essentials such as Council Tax, Road Tax and TV Licence. The Consumer Prices Index (CPI) includes some items of no relevance to low-paid workers, such as stockbroker fees and boat maintenance costs. The figures released today, for the 12 months to August 2022 are RPI at 9.1% and CPI at 6.7%.
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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The official website of the Union of Shop, Distributive and Allied Workers