10 June 2011
Pay gap 'stunting economic growth'
Organisations could be setting themselves up for employment tribunals and grievance cases brought by their workers unless action is taken over pay discrepancies, an expert has suggested.
According to Brendan Barber, general secretary of the Trades Union Congress (TUC), bosses need to be extremely careful so as not to alienate their employees in the aftermath of the global economic downturn.
His comments came after the publication of a report by the Institute for Public Policy Research, which found that 66 per cent of all workers feel the gap between the highest and lowest earners in their organisation is too wide.
Mr Barber explained that this is fostering a burgeoning "them and us" attitude among employees and added it "de-motivates staff and reduces productivity", as well as acting as a "brake on our economic recovery".
Therefore, he called on the government to play its role in ending this trend by altering the country's employment law system.
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Posted by Daniel Stevens