Shocks & Stares » Pay http://blogs.hillandknowlton.com/shocksandstares H&K\'s Financial & Professional Services Team Blog Tue, 19 Mar 2013 08:00:56 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 FPS’ Friday Fiver http://blogs.hillandknowlton.com/shocksandstares/2011/09/fps-friday-fiver-18/ http://blogs.hillandknowlton.com/shocksandstares/2011/09/fps-friday-fiver-18/#comments Fri, 02 Sep 2011 17:32:25 +0000 David Chambers http://blogs.hillandknowlton.com/shocksandstares/?p=267 Hello All! A little late this week, and we apologise for that, but as it’s now officially the end of summer that means it’s the start of the business season and we’ve all been a little flat out here at H&K Towers. Still, we wouldn’t want to miss out on reporting another busy week in the world of financial and professional services. And what a week it’s been. Thanks to our contributors this week: Ed, Ross, Clare and Rachel.

Turn that frown upside down…At the end of a pretty crazy August, there have been some fairly gut-wrenching figures this week from the Markit/CIPS Purchasing Managers Index (one of our clients). Declines in manufacturing output prompted fresh talk of double-dip recession, construction continued to be weighed down by weak confidence in the housing market, and all eyes are now on the all-important Services PMI which comes out on Monday.

Happy faces are hard to come by in the UK at the moment. But are we talking ourselves down too much?

Worrying indeed, but could it be that the UK economy is going through stage four of what could be termed ‘post financial crisis bereavement’ (PFCB)? According to one description, this involves ‘a feeling of listlessness and tiredness’ and possibly ‘wandering around in a daze.’

Well it certainly does feel like that sometimes but if the theory holds at least this is the final stage before acceptance sets in and the economy ‘regains its energy and goals for the future.’  It may just be the time for a bit of Vince Cable style positive thinking.

Breaking News – Football clubs spend less…The last minute wheeler-dealing of transfer deadline day was interesting for many reasons. But it’s the debate it has started about financial fair play which poses the biggest question for the future of the beautiful game. We’ve commented before on the ownership of football clubs, particularly in the immediate future. The onset of the Financial Fair Play from UEFA, requiring elite clubs to record a maximum debt of £39.5m over a three year period, may also have implications.

Fernando Torres may be the last £50m player we see for a while

Michel Platini, champion of these new regulations, would argue otherwise, but the financial future of football could go one of two ways. Clubs will either find loopholes in the rules and splash out enormous sums of money for overpriced talent. Or the rules will re-establish a sense of financial realism and build a future for football based on financial sustainability. The more prudent approach from England’s top clubs in the latest transfer window is a hopeful start. Ultimately however, the path football decides to take will come down to UEFA’s refereeing of the clubs who fall foul.

Women and Pay – the fight goes on…All things being well, Clare’s imaginary great granddaughter will be assured a pay packet that is on a par with her male counterparts, according to research published by the Chartered Management Institute this week. Some might call that progress. But we don’t.

There still aren't enough women in boardrooms (Image: Able & How)

It is forty one years since the Equal Pay Act. The Act prohibits employers from favouring one sex over the other in terms of pay and conditions. Whilst some things have improved in the past four decades, many others have not. Men still earn, on average, nearly a third more than women doing the same job. This, quite frankly, is ridiculous.

Over the past couple of months, the issue of women in the workplace has been an ongoing topic, particularly following Lord Davies’ inquiry into the dominance of men in company boardrooms. Whilst we think it is great this topic is being addressed, why is it employers still think that they can treat 50% of their workforce in such a manner? And the conclusion Clare has come to is this: they can, because they can get away with it. Is there another Act in British history that has been allowed to be so flagrantly ignored?

What then is the answer? Implementation! Transparency! Mobilisation! Anyone want to join the revolution? Please note – it might take us another 98 years to get anywhere near what we want…

Britain’s place in Europe…Ross wrote two weeks ago about the detrimental impact politics and politicians are having on the global economy and investor confidence. He was particularly critical of Angela Merkel as she seemed to be avoiding the glaringly obvious: Germany has to underwrite the debts of those struggling in the Eurozone and be prepared to commit much more to the European Financial Stability Facility (EFSF) for it to be taken seriously.

Credit where credit is due, Chancellor Merkel seems to be winning over enough parliamentarians in order to squeeze a bill through the Bundestag that will give German parliamentarians more of a say on the EFSF. By giving the Bundestag more of a say on future aid packages Ms Merkel is hoping to bridge the domestic and international problem she faces by merging the two. She is currently having to overcome domestic political pressures as the German electorate resent the fact that they should have to pay for the problems of others in distance places like Greece.

Should the Bundestag gain these powers, Germany’s economic dominance in Europe is likely to sore further. On the one hand, this may finally be the security the Eurozone needs, but on the other it may push the UK even further to the periphery. So far the UK Prime Minister David Cameron has kept the UK out of the Eurozone crisis, but by doing so Germany may be able to cement its position as the true leader of Europe.

Good Week/Bad Week…Two sides of the banking coin this week. For Vince Cable, champion bank-basher, scorned scourge of Rupert Murdoch, and Parliamentary stand-up it wasn’t a particularly good week. He’s been banging the drum on banking reform for several months now, but it seems as though the Independent Banking Commission’s recommendations are firmly on route to the long grass.

On the flip side, for bankers, and particularly those with both retail and investment arms, it was a relatively good week for the very same reason. Their lobbying effort has been long, hard and expensive, but with the likes of the CBI and BCC now on-board, it looks like it might be paying off. It wasn’t all good for the banks this week though – Alastair Darling’s forthcoming book launch looks set to drag them through the muddy playing fields again in a few weeks time.

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