Call for pay debate as fat cats 'now obese'

Published on Thursday 28 December 2006 12:58

THE TUC today demanded a national debate on pay after new figures revealed boardroom pay was rising on average at 17 times the employees' rate.

According to the trades union body, a company director now earns 205 for every 100 they received in 2000. But for rank and file employees, the 100 earned in 2000 has risen to just 106.

In his new year message, TUC general secretary Brendan Barber said reward for performance and responsibility may be justified. But he insisted: "There is still an important debate to be had about how big and how justified these extra rewards should be.

The gap between top pay and that enjoyed by the rest of us is getting bigger each year. Plump felines became fat cats some years ago, now they are dangerously obese."

Mr Barber said levels of top pay affected the whole country because they often fed inflation in the property market which affected decisions about interest rates.

He also hit out at soaring levels of executives' perks and bonuses, adding that FTSE-100 directors had "amassed" pensions worth nearly 1 billion between them.

On average, directors can retire at 60 on a final salary pension worth nearly 3 million, rising to almost 5m for some top bosses.

"This is at a time when many have been happy to cut the pensions of their own staff, and been ready to condemn the Government for not cutting the pension built up by public servants," said Mr Barber.