Wage freezes will only make downturn worse, says TUC

http://www.tuc.org.uk/newsroom/tuc-16162-f0.cfm

Commenting on inflation figures released today (Tuesday) TUC General Secretary Brendan Barber said: 'This is not good news. If we get stuck in a deflationary spiral then the recession will be longer and deeper.
'While many workers in companies hit hard by the recession have agreed modest or even zero increases in pay to save jobs, a generalised wage freeze across the economy will make the downturn worse not better.
'The cost of living is only one factor in wage negotiations, and only those with tracker mortgages have really seen a big impact on their household finances - as the difference between RPI and CPI shows.
'The last thing our precarious economy needs would be a further collapse in consumer confidence caused by a standstill in household budgets.
'Calls for a freeze in public sector pay are particularly unjustified. Public sector pay has fallen behind in recent years, and the modest increases in the pipeline will not make up this difference. Tearing up agreements reached after hard negotiation would be bad faith and hit morale.'