BBC OFF THEIR TROLLEYS

The irony of Tesco profits being hit because workers don't earn enough.

ByHARRY BLACKWOOD

HAVING worked for the BBC for a short time, I can tell you categorically that most BBC journalists don't know their arse from their elbow.

Such is the narrow gene pool that the BBC selects its journos from (think Oxbridge and public school) that it's no surprise that they get the wrong end of the stick when it comes to even the most basic news judgement.

This week there was a classic example of what I'm talking about when Tesco announced its yearly results. The High Street behemoth posted profits of £3.3 billion. Worth pointing out at this juncture that a billion is a thousand million. So, a bunch of glorified corner shops pulled in 3,300 piles of dosh with a million quid in each. Nice work of you can get it.

http://www.bbc.co.uk/news/business-27046105

But the BBC wasn't interested in this massive amount of profit because some highly paid executive had already decided that 'the story' was a six per cent drop in profits. Except it wasn't. If you strip out new store openings, the like for like fall was only 1.4%. Not too shabby in times of austerity, inflation and queues outside food banks.

IS IT WORKING?

It's Friday. It's financial. It's Friday Financial with JULIAN SAYER.

Any healthy economy needs a full and skilled workforce. It benefits employers and more importantly, gives a lot of spending power to a service driven economy.

Five years of austerity and we owe roughly £69,000,000,000 more than we did, while the

average income fell from £24,100 to £23,200, a percentage drop of 3.8%! In the meantime we are being told the economy is recovering and unemployment is coming down. This is true, unemployment has been reduced from its peak of 2.7 million in 2011 (2008-2014) to today's figure of 2.33 million. I could argue about how these figures have been compiled, but in today's article I want highlight the effects of these changes in our economy and then discuss future trends.

New figures from the Office for National Statistics reveal the depths of low pay and the grotesque chasm between a rich one per cent and the other 99% of the country.

Four in five new jobs are in sectors averaging under £16,640 for a 40-hour week. Working full-time on the £6.31 hourly minimum wage would gross just £13,124 in a year, and an explosion of part-time jobs shows millions of workers can’t even earn that pittance. This isn't good for a consumer based economy. Remember, in the UK 78% of our entire GDP is service based, and any fluctuations in our spending habits has huge ramifications.

Then comes the issue of the kind of jobs that are being created? Part time and zero hour contracts have ballooned since the start of this recession. The scale of the use of zero-hours contracts has been revealed after official figures showed that nearly 583,000 employees – more than double the government's estimate – were forced to sign up to the controversial conditions last year. Almost half of zero-hour contract workers have had their shifts cancelled without any notice, according to the first in-depth study of the way more than 1 million people on the controversial contracts are treated.

Two out of five workers on the contracts said they had been informed only hours before starting work that a shift had been cancelled. A further 6% had been told as their shift was about to begin. The study also found that 20% are sometimes or always docked wages or penalised in some way if they are not available for work. These contracts, which allow an employer to hire staff without an obligation to provide any minimum working hours, are used widely in the care industry, hotel and leisure sector and by many retailers. In the last two years public sector organisations have transferred staff to zero-hour rotas.

GUTLESS ED 'MR BEAN' MILIBAND MAY NOT EMBRACE LIVING WAGE

Sir George Bain, credited with devising the UK minimum wage has told the Financial Times that his system of protection for the low paid is outdated

By HARRY BLACKWOOD

WITH impeccable comedy timing, the Manchester United footballer, Wayne Rooney, signed a new contract today that will see him earn £300,000 a week. Yes you read that correctly £300,000 A WEEK for kicking a football.

Now I realise that's not funny. No, what's funny is that on the same day as an oafish footballer was putting pen to paper on a contract that will see him earn over a million quid every month, Sir George Bain - the man credited with coming up with the UK minimum wage - was telling the Financial Times that his system of protection for the poor had run its course.

You bet it's run it's course. It had run its course the day it was introduced because minimum wage was never going to lift people out of poverty. It was only ever going to keep them IN poverty. After 15 years that's EXACTLY what it's achieved.

The same poor bastards that were working all week on minimum wage In 1999 to earn enough just to scrape by are doing precisely that in 2014. Earning £6.31 an hour (the current legal minimum for adults) certainly isn't living. Hell's teeth, it's barely even surviving. That's what millions in the world's sixth richest country are doing - working their backsides off just to exist.

What Sir George failed to properly address in his FT article is how his minimum wage concept has actually failed miserably. What it's done is normalise low wages instead of acting as a benchmark to create a ripple effect and drive wages upwards.

There has been no ripple. There are 1.2 million UK workers who are paid £6.31 (or within 5p of that) and a further 1.4 million who are on within a measly 50p more. Employers think they are gushing philanthropists if they pay a few coppers above what they are legally obliged to.

In total there are five million workers in the UK who are 'low paid' by using the "official yardstick" of two thirds of the typical hourly wage. AND THERE IN A NEAT LITTLE PACKAGE IS THE PROBLEM.