Labour pay proposal draws disbelief
PROPOSALS being considered by Labour to let companies’ customers vote on bosses’ pay risk handing large firms even more power to dominate their supply chains, business leaders have warned.
While the report explains how loyalty schemes and bank accounts could be used to allocate votes to consumers, it does not address how the scheme would work for those selling to other businesses. The proposal creates the prospect that large supermarkets or construction giants could hold sway over votes concerning their smaller suppliers, worsening an imbalance of power.
Edwin Morgan of the Institute of Directors said: “This eye-catching proposal becomes more eye-watering the more you think about it. Surely they can’t be suggesting that business cus- tomers would get to vote on the pay of their suppliers? Consumers already have the most powerful vote of all, their cash, and if they can’t leave for whatever reason, the problem is much deeper than pay.”
The University of Sheffield’s Prem Sikka, who led the team of academics who compiled the report, said it would be up to a government to decide whether voting should be restricted to individual consumers.