Introduce maximum wage to tackle soaring boardroom pay, says Plaid

Plaid Cymru’s Jonathan Edwards MP has welcome the Swiss referendum on executive pay, claiming that much more has to be done to tackle the growing gulf between the lowest and highest wages in the UK.

The Swiss people will vote on 24th November on whether or not a 1:12 pay ratio should be enshrined in the nation’s constitution.

Mr Edwards, who has long called for greater responsibility within the financial sector, said that the latest figures showing a 14% rise in executive pay in the last 12 months were “scandalous”, particularly given that millions of people are facing real-terms cuts in their wages. According to the TUC, workers in Wales have seen their pay fall by 8% since the financial crisis began in 2007. 

He added that Plaid Cymru were fully committed to a living wage, a maximum wage, and the appointment of company employees on remuneration committees which decided executive salaries to ensure greater transparency and equality.

Mr Edwards said:

“The culture of irresponsibility which dominates the City is completely immoral and must be stopped.

“A 14% rise in the pay packets of FTSE 100 directors – taking their average pay to £3.3m – simply cannot be justified in a time when thousands of households are struggling to cover the costs of daily basics such as food and fuel.

“Plaid Cymru has put forward a variety of proposals that would tackle the growing equality gulf which exists in the UK. We are fully committed to a living wage that would raise living standards, as well as a maximum wage policy to address widening gap between rich and poor.

“We also want to see employees appointed to remuneration committees that decide on chief executive wage packages. This would increase transparency and be a step in the right direction towards making big business work in the interest of the real economy, not the financial elite.

“As we approach the Autumn Statement, it is vital that the Chancellor changes course and takes robust action to tackle the sharp drop in living standards which has happened on his watch.

“While many people will be forced to choose between heating and eating this winter, the people of Wales deserve better than to suffer at the hands of a London Government more interested in serving City fat cats than society’s most vulnerable.”

ENDS

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