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Unions21 press release- Embargoed 0001 Monday 14th September 2015
Research from the New Economics Foundation and the University of Greenwich has revealed that restoring union density to the levels seen in the early 1980s would add up to £27.2bn to current UK GDP.
The document: Trade unions, Working for the economy – will be launched at a Unions21 fringe meeting at the annual Trade Union Congress on Monday 14th September at 1230 in Brighton.
Key findings:
For every 1% reduction in the share of national income going to wages, UK
national income – measured by GDP – is reduced by 0.13%, or £2.21bn at current values. Wage share has declined from its 1975 peak of 76% to an historic low of 67% today; this has had a direct impact on national income.
The decline in union authority, as indicated in falling membership, has driven the falling wage share. Union density in the UK has halved (from 49.9% in 1981 to 25.4% in 2013)
Declining union presence has, as a result, fed directly into lower growth overall.
The evidence we present suggests that the decline in union density, from its peak in 1975 to today, has reduced UK GDP by up to 1.6% – a significant and permanent loss.
For every 1% reduction in the share of national income going to wages, UK
national income – measured by GDP – is reduced by 0.13%, or £2.21bn at current values. Wage share has declined from its 1975 peak of 76% to an historic low of 67% today; this has had a direct impact on national income.
The decline in union authority, as indicated in falling membership, has driven the falling wage share. Union density in the UK has halved (from 49.9% in 1981 to 25.4% in 2013)
Declining union presence has, as a result, fed directly into lower growth overall.
The evidence we present suggests that the decline in union density, from its peak in 1975 to today, has reduced UK GDP by up to 1.6% – a significant and permanent loss.
Commenting, Sue Ferns Chair of Unions21 said:
“This study gives academic weight what we as trade unionists already know – unions contribute to the economy. Unions not only make our country a fairer place to work but also more prosperous. With fewer trade union members, less and less of the country’s wealth will go via pay packets into our businesses. Every attack on unions is an attack on GDP. The lost £27billion is shocking – it would pay for the capital investment needed to ensure that there are enough school places to meet the rising numbers of children in England and build 100,000 extra homes’.
Background:
-Unions21 is a trade union network, some members of which funded the research. Find out more about Unions21 at www.unions21.org.uk
-The new report, Working for the economy: the economic case for trade unions, will be published on Monday 14 September 2015. Request a full copy by e-mailing press@neweconomics.org.
