Opinion – Low wages are ‘return to pre-industrial Britain’, says Bank of England economist | Business | The Guardian – John Gelmini

NHS Job Shop: "Working for Health" i...

NHS Job Shop: “Working for Health” in Kentish Town. Closed. (Photo credit: Wikipedia)

As Dr Alf knows , there are further distortions because when the Government cites unemployment figures it counts 2/3rds of the new jobs being created as “self employment”.

These for the most part are not jobs at all but are Companies House, Cardiff records of people who have been made redundant, fired or decided to register a company in parallel with full time working as “insurance ” for when the axe falls or the pressure gets too much. These so called businesses have mostly never traded, never paid anyone any money but were used by people who had been made redundant to claim “Working Tax Credit” by dint of recycling redundancy payments into a business bank account and then pretending to trade or remaining in start up mode.

The Treasury put a stop to the worst abuses but the Government uses these Companies House registrations to lower the unemployment rate and pretend that this represents “success” in economic management.

Local authorities on the one hand pretend that they are victims of “savage cuts” but to a man refuse to employ interims directly, choosing instead to work through recruiters who have umbrella companies.

This love of using middlemen is not accidental, is very costly and creates the opportunity on an industrial scale for financial irregularity and corruption.

However no-one looks at why this should be or at the bank accounts of those engaged in decisions about which middlemen to appoint.

The NHS is even worse and has 3 procurement organisations plus NHS supplies and chooses to use Big 4 management consultants, strategy houses and ex NHS employees.

At the bottom end, employers are using migrant labour to do unskilled work, work that British workers are unwilling to do, or do fast enough, plus of course illegal workers who will work for as little as £2.50 GBP an hour in the garment or fast food trade.
Many UK workers are lazy and unproductive so employers pay them very little as a result but pay themselves extremely well.

Mrs May as a weak and ineffective leader has failed to deal with executive pay for fat cats which creates a situation in which these low paid workers refuse to be more productive and poor employers refuse to set an example whilst punishing the workers for not working properly.

This creates a Mexican Standoff and drives the trend towards more automation, RPO, machine learning and AI.

The political class do nothing leaving the Guardian and people like Haldane to cry crocodile tears.

John Gelmini

France to reform ‘overly complex’ labour laws next year, PM says | EurActiv

This is an important story from EuActiv, reporting French Prime Minister, Manuel Valls, annoucing that the French government will propose legislation to simplify over-complex labour laws and promote more collective bargaining accords at a sectoral level.

Source: France to reform ‘overly complex’ labour laws next year, PM says | EurActiv

I know France very well and understand the French people  – I also seriously respect their desire to protect the French way of life. I have discussed the French labor system with French friends and am convinced that these proposed reforms will lead to massive strikes in France.

France’s working population is polarized – it’s a bit like Spain before her reforms. On the one hand is the group protected by traditional employment contracts, with rich benefits, early retirement and a 35 hour week – in particular, there is the public sector, where there is no competition like in the UK where the public sector has been mauled by austerity. On the other hand, are the young and those out of work who struggle to get a job – they’re often exposed to what an unemployed French friend described as a ‘scam’, whereby the likes of fast-food outlets take advantage of casual employment contracts.

I really admire France’s desire to respect the French way of life, like not working Sunday and keeping it free for church, the family or sports. On the other hand, the French employment system protects the privileged and is unfair to the young and the disadvantaged.

My personal conclusion is that France’s unions will block the reforms, putting France into confrontation with the rest of Europe, especially Germany.