UK Gov't New Corporate Responsibility Scheme Deficient to Tackle Austerity

The United Kingdom's government has proceeded tackling economic crisis. However, the new measure is not likely to prove its relevance.

LONDON (Sputnik) — The UK government's latest move to force companies to publish pay ratios between their top executives and ordinary workers is not likely to increase the incomes of public work service employees, the United Kingdom's UNISON public service union general secretary, Dave Prentis, told Sputnik.

"Any move that requires private firms to be more transparent on pay is a step forward, but this will not put any more pounds in the pockets of public service staff who have suffered under austerity," Prentis said.

The transparency scheme, announced on Tuesday and planned for implementation next June, will ensure that some 900 corporate entities be required to publish and also explain the pay levels of their top leadership and the wages of the average worker. Under the scheme, companies will also be able to opt out altogether on a "comply or explain" basis, choosing to refrain from publishing their pay data if they can adequately explain their reasons for doing so.

On Tuesday, the UK Trade Union Congress (TUC) also criticized the scheme, saying that after the government had not fulfilled its initial pledge to put workers' representatives on corporate boards, the whole initiative became "little more than a box-ticking exercise." The organization was also concerned that the government's calculations would take the focus off the lowest paid workers.