Yvette Cooper pleads for pay restraint - FT

Mon Jun 16, 2008 7:55am BST
 
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LONDON (Reuters) - Workers risk sparking a 1970s-style wage inflation spiral if they push for "irresponsible" pay rises to offset higher food and fuel bills, a government minister said in an interview published on Monday.

Treasury Chief Secretary Yvette Cooper, who is Chancellor Alistair Darling's deputy, said pay discipline should be imposed in companies at all levels.

"It is important we don't repeat the mistakes of the 1970s and 1980s," she told the Financial Times. "The challenge is to avoid the sort of accelerating wage increases we saw then."

"The important thing at the moment and over the next few months is a disciplined and responsible approach to pay in the public and private sector."

Economists expect figures to be published on Tuesday will show inflation running at over three percent, triggering an explanatory letter from Bank of England Governor Mervyn King to the government.

(Reporting by Keith Weir; editing by Dominic Evans)

 
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