Sir,– By my count, Mark Paul interviewed five representatives of employers and two consultants who work for employers for his article "Inflation is upending the labour market, so where will it end?" (Business, February 4th). The only interviewee who could be considered to advocate for workers' interests (though is not actually a representative of workers) is an economist at the Nevin Economic Research Institute. Despite referring to some public statements by trade unions, these are presented as part of the problem, and Mark Paul did not ask any representatives of workers for the reasoning behind their calls for wage increases in various sectors. Media commentators must understand: employers do not speak for their workers. Employers' interests in making profit stand in direct opposition to workers' interests in receiving a higher share of business revenues, in the form of wages.
Without downplaying the effect of the pandemic on many business owners, I am confident that any worker interviewed for the article would point immediately to inflation in housing costs running at multiples of wage increases in most sectors, to say nothing of a sudden spike in energy costs, as more than justifying increased wages at this time. These costs disproportionately hit low-paid workers who tend to live in rented accommodation, and for whom these costs represent a higher portion of their income. This means the headline inflation figures cited are misleading, as they do not reflect the cost of living for low-income households. Of course, workers should not need to be at risk of poverty to justifiably demand wage increases. It is entirely possible to see wage increases (yes, even at the expense of profits) as a good thing, simply because they improve the quality of life of workers – who make up a far higher proportion of the population than business owners. – Yours, etc,
ALAN EUSTACE,
Magdalen College,
University of Oxford.