Workers in the region up to £4264 worse off per year since Coalition came to power

date: 10^th April 2013

embargo: 00:01 Friday 12 April

Workers in the region up to £4264 worse off per year since Coalition came to power

Northern region needs a future that pays fair,says Northern TUC

Analysis from the Northern TUC 10 Point Plan for A Northern Future that Works manifesto (being launched this weekend 13 and 14 April at Regional Conference) also shows that since the Coalition government was formed the average full-time wage has fallen significantly in real terms across the northern region. In the North east, full-time workers are now on average £1196 worse off per year in real terms than if wages had risen in line with inflation (RPI) under the Coalition. In Cumbria, people are £1872 worse off. (full breakdown of figures by Local Authority below)

This real terms drop in wages represents a combination of the impact of wage freezes, below-inflation pay rises and public sector jobs lost in our region being replaced by lower paid work. Some local authority areas have been hit particularly hard, North Tyneside workers have lost £2912 and Redcar & Cleveland workers have to live with a fall of £4264.

Last week there was media speculation that the Coalition government was considering changing the formula for setting the minimum wages to enable ministers to freeze or even reduce it in future. This would result in a real terms pay cut for just under a million minimum wage workers in the UK. The already widening pay gap would have been further exacerbated by the Government's now defunct proposal of Regional Pay, which would have cost the region millions of pounds more in lost earnings.

As part of the 10 Point Plan the TUC and Trade Unions were at the forefront of the campaign against regional pay and will go on campaigning for wide-spread implementation of the Living Wage to be delivered within and across all parts of the public and private sectors in the northern region. Newcastle City Council has already committed to be a Living Wage employer.

Statistics show that trade union members are likely to earn better wages than their non-unionised counterparts thanks to collective bargaining and negotiating fair wage settlements. Supporting unions to continue their work to be effective in this arena is also a key aspect of delivering a future that works.

Kevin Rowan, Northern TUC Regional Secretary said: 'The north east and Cumbria has suffered disproportionaltely as a direct result of the policies of the current government. Ongoing pay restraint is harming families and communities that were already at the bottom of the income scale. While household incomes continue to fall this region will continue to struggle to come out of recession.

'The government must make high quality, sustainable job creation its number one priority and must ensure that the most vulnerable are protected from absolute poverty by promoting decent pay and raising the national minimum wage.'

NOTES TO EDITORS:

*Weekly wage figures. Wage gap calculated per annum,.

The nominal wage figures show actual cash earnings over time and are taken from the Office National Statistics' NOMIS website at www.nomisweb.co.uk These have then be deflated by inflation (RPI) to turn the cash figures into 2012 prices. This means that the impact of rising prices on cash earnings is fully taken into account between 2010-2012.

- Both hard and electronic copies of the 10 Point Plan for a Northern Future that Works are available upon request.

- Follow the Conference live on Twitter @northerntuc #northernfuture

- Press are welcome to attend. Prior notice preferable.

- Conference runs 10.00am-5.00pm on Saturday and 10.00am -1.00pm on Sunday

- Northern TUC press releases www.tuc.org.uk/northern national releases www.tuc.org.uk and www.twitter.com/tucnews

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports www.tuc.org.uk/pressextranet

- For TUC advice and information on the world of work www.workSMART.org.uk

Media contacts:

Kevin Rowan T: 0191 227 5565 M: 07766250074 E: krowan@tuc.org.uk

Neil Foster T: 0191 227 5554 M: 07787617972 E: nfoster@tuc.org.uk