For every £1 million that is paid to some fat-cat executive you could employ 40 people at £25,000, 50 people at £20,000 or 66.6 at £15,000. If you raise the wage rate from the minimum wage (£6.08) to a living wage (£7.20) it would cost, per person, £1.12 per hour, which is £44.80 for a 40 hour week, or £2329.60 per annum. For every £1 million that is paid to some fat-cat executive 429 people could benefit from an increase from a minimum to a living wage. Now I realise that a living wage is still far from ideal and that any company that is serious about their business would pay more but it would be an improvement on what many have now.
Now I realise that the above is an oversimplification and that the costs of employing people are not directly proportional to their salary but it is accurate enough to highlight how unbalanced and unfair most businesses attitude to wages and staffing are, in that one person’s wage can be so high that it is the equivalent to 40, 50 or several hundred people’s wages put together.
Do bankers, footballers and multi-million pound earning captains of industry et al actually work any harder than the poor soul on minimum wage working as a cleaner care assistant or other equally valuable job? I think we know the answer to that, don’t we?
The minimum wage should be a living wage!
The living wage:
"An idea whose time has come"- David Cameron