(Bloomberg) --
Unite General Secretary Sharon Graham criticized Andrew Bailey for calling for “restraint” on wage rises amid the U.K.'s cost of living crisis.
“Pay restraint is nothing more than a call for a national pay cut,” Graham said in a statement. “Inflation has not been caused by workers. Why should they be expected to pay for the failures of the energy market and the total shambles of Government policy?”
The Bank of England announced a base rate rise to 0.5% on Feb. 3 in an attempt to head off inflation. Following its decision, Governor Bailey told the BBC's Today program that wage increases to offset rising costs needed to be controlled. “We are looking to see quite clear restraint in the bargaining process. Otherwise it will get out of control. It's not at the moment but it will do.”
In an interview Friday with Bloomberg Television, BOE Chief Economist Huw Pill said the benchmark lending rate in the U.K. will probably rise again in the coming months and a squeeze on living standards is probably unavoidable. “Given the nature of the shock we're facing, real incomes in the U.K. will suffer to some extent.”
“Yet again workers are being asked to pay the price, this time for inflation and the energy crisis,” said Graham. “Why is it that every time there is a crisis, rich men ask ordinary people to pay for it?”
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