FACT S E R V I C E
185 Banks must publish top salaries — almost
Economy shrank less than thought
186 The cold winter took a terrible toll on the old
Earnings by industry show mixed fortunes
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Banks must publish top
salaries — almost
UK banks and other large finance groups, such as
bulding societies, should disclose the number of
their employees who earn more than £1 million a
year, a report has said.
The recommendation is one of 38 in the review of
the corporate governance of banks headed by Sir
David Walker.
The review recommends that: “For FTSE 100-listed
banks and comparable unlisted entities such as
the largest building societies, the remuneration
committee report for the 2010 year of account and
thereafter should disclose in bands the number of
'high end' employees, including executive board
members, whose total expected remuneration in
respect of the reported year is in a range of £1
million to £2.5 million, in a range of £2.5 million to
£5 million and in £5 million bands thereafter and,
within each band, the main elements of salary, cash
bonus, deferred shares, performance-related long-
term awards and pension contribution.
"Such disclosures should be accompanied by an
indication to the extent possible of the areas of
business activity to which these higher bands of
remuneration relate."
LABOUR RESEARCH DEPARTMENT
Published weekly by LRD Publications Ltd, 78 Blackfriars Road, London SE1 8HF. 020 7928 3649 www.lrd.org.uk
187 Employers need advice on quality jobs
Workers are to carry on past retirement age
188 Women at the top hit glass ceiling again
Volume 71, Issue 47, 26 November 2009
The government said it would now move to imple-
ment Walker’s proposals and will include his call
for banks to publish how many staff earn more than
£1 million in its Financial Services Bill.
Rob MacGregor, national officer for the general
union Unite which has a large presence in the
finance sector, said the union "views the Walker
proposals as a step in the right direction, but there
is still a long way to go before we see the changes
in culture and behaviour required in the boardroom
of the banks. Simply tinkering on the edges of this
industry is totally futile".
The move is hardly earth shattering given the broad
pay bands in which pay and benefits have to be
disclosed. And no-one will be any the wiser as to
who the fat cats are, except for directors whose
names are already known.
www.hm-treasury.gov.uk/d/walker_review_261109.pdf
www.unitetheunion.com/news__events/latest_news/unite_reaction_to_walker_repor.
aspx?lang=en-gb
Economy shrank less
than first thought
The UK economy contracted at a slower pace than
originally estimated in the third quarter of the year,
official figures show.
186 Fact Service
Gross domestic product (GDP) in the third quarter
of 209 shrank by 0.3% on the previous quarter, an
improvement on the original estimate from the Of-
fice for National Statistics of a 0.4% fall.
Nevertheless, the UK economy now has posted six
consecutive quarterly falls since the first quarter
of 2008.
On an annual basis, GDP was down by 5.1% on the
third quarter 2008.
Manufacturing output fell by 0.1% in third quarter
on the previous quarter. Substantial increases
in production of motor vehicles were offset by
continued declines in paper and publishing, and
manufacturing of machinery and equipment.
Manufacturing output was down by 10.1% on the
same period 2008.
www.statistics.gov.uk/pdfdir/oie1109.pdf
The cold winter took a
terrible toll on the old
The number of deaths during the coldest three
months of the year was up by almost half on
the previous year to 36,700, sending an extra
10,000 pensioners to early graves, official figures
showed.
The rise in “excess winter mortality” for England
and Wales for the three months to February was
the biggest for years and the highest total in a dec-
ade, sparking fresh calls for ministers to combat
high energy prices.
Dot Gibson, general secretary of the National
Pensioners’ Convention, said: “Since 1997, we
have lost over 260,000 pensioners during the
winter because of cold-related illnesses, yet the
government seems incapable of acting. No other
section of our society is so vulnerable and treated
so badly. Pensioners see rising fuel bills and are
constantly worried about whether or not they can
afford to put their heating on.”
Announcing the latest figures, the Office of Na-
tional Statistics pointed out that seasonal flu last
winter had been “moderate” but temperatures had
been the coldest since 2005. Campaigners said
a 40% spike in the price of gas and electricity to
£1,310 had exacerbated the situation.
Volume 71 Issue 47
As fuel bills have soared over the past six years,
the number of households in “fuel poverty” — de-
fined as having to spend 10% or more of their
income on power and heat — has risen five-fold
to 6.6 million this year.
Britain has a worse record on winter deaths than
colder European states, such as Sweden, Norway
and Finland. Age Concern, the charity for the
elderly, warned that unless heating was made
more affordable, further large-scale deaths would
occur this winter.
“To end this national scandal, the government
must do much more to tackle fuel poverty,” said
Andrew Harrop, its head of policy. According to
Age Concern’s polling, four in 10 pensioners will
not be able to afford to switch on gas and electric-
ity when they want to this winter.
Last winter more than 90% of deaths were pen-
sioners, who are among the least able to afford
heat but the most vulnerable to cold-related dis-
eases, such as flu, hypothermia, bronchitis and
emphysema.
www.independent.co.uk/news/uk/home-news/fuel-bills-blamed-for-50-rise-in-winter-
deaths-1826917.html
Earnings by industry
show mixed fortunes
It may be the finance sector that brought the coun-
try to its knees, but it is workers in manufacturing
and some utilities who have taken the hit over pay,
the latest figures show.
Gross weekly earnings in manufacturing were
down by 0.3% in April 2009 on a year earlier, ac-
cording to the latest Annual Survey of Hours and
Earnings (see last week’s Fact Service for the main
findings). And for electricity and gas industries the
fall was even higher at 11.4%.
On the other hand, in finance and insurance earn-
ings were up by 4.8%.
Agriculture, forestry and fishing posted the biggest
increase of 8.5%. But earnings in the industries
were the second lowest — above only those in ac-
commodation and food service.
The gross weekly earnings for full-time employ-
ees on adult rates whose pay was unaffected by
absence are shown below. The link at the end of
the story will give take the reader to tables where
Volume 71 Issue 47 Fact Service 187

part-time pay and earnings for men and women
can be accessed. The figure used is the median
or midpoint figure.
Gross weekly earnings by industry — April 2009
Stephen Bevan, managing director of The Work
Foundation said: “Employers grasp the link be-
tween staff wellbeing and how it can affect produc-
tivity. What is missing is how to deliver this.”

£ a week % change The report calls for the government to take the lead
in helping employers do more to improve job qual-
All Employees 488.70 2.0
All Industries and Services 488.70 2.0
ity. In addition, the government should champion
All Production Industries 496.10 0.4 better working conditions; promote best practice;
All Manufacturing 484.90 -0.3 carry out further research; publish case studies
All Service Industries 484.80 2.6 and incentivise employers to experiment with new
Agriculture, forestry, fishing 387.00 8.5
approaches to good jobs.
Mining and quarrying 697.70 7.5
Manufacturing 484.90 -0.3 www.theworkfoundation.com/pressmedia/news/newsarticle.aspx?oItemId=199
Electricity and gas 585.80 -11.4
Water and sewerage 528.40 5.7

Workers are to carry

Construction 529.30 2.4
Wholesale and retail trade 388.30 2.2
Transportation and storage 479.10 1.8
Accommodation/food service
Information/communication
Finance and insurance
298.70
643.50
626.10
0.7
1.4
4.8
on past retirement age
Real estate 462.70 2.4 There has been a dramatic rise in the number of
Professional and scientific 597.80 3.1
Admin and support services 391.00 1.9
older workers who are planning to work beyond
Public administration 547.90 2.7 the state pension age, research from the Chartered
Education 541.60 3.0 Iinstitute of Personnel and Development (CIPD)
Health and social work 473.00 3.2 has revealed.
Arts and recreation 387.80 1.9
Other service activities 424.30 2.3

www.statistics.gov.uk/downloads/theme_labour/ASHE-2009/tab4_1a.xls
Employers need advice
on quality jobs
Employers are committed to improving the qual-
ity of jobs in the UK but lack guidance about how
to achieve it, says new report from employment
consultants, The Work Foundation.
Far from seeing decent quality jobs and commercial
or organisational success as conflicting objectives,
the Work Foundation says that growing numbers of
employers see them as mutually supporting goals.
Employers understood a “good job” to involve: be-
ing valued and appreciated, interest and fulfilment,
job satisfaction, autonomy, decent working condi-
tions, morale and teamwork, effective management,
and staff development
Although over three-quarters (78%) did not mention
pay, 22% cited it as an important feature.
The Employee Outlook survey of 2,000 working
people found that the proportion of people aged
55 and above planning to work beyond the state
pension age has jumped to 71%, compared with
40% in a similar survey two years ago. Stretched
finances are the main reason for the trend with
pension pots, savings and investments, and house
values all being hit by the recession.
An older workforce poses many challenges for
employers, not least that of how to engage a group
who are only still working for financial reasons,
said Charles Cotton, CIPD adviser on reward and
employment conditions.
“With more people planning to work past 65, em-
ployers will have to accommodate older workers
and motivate those who wish they could be else-
where,” said Cotton. And he added: “Employers
need to review how they are helping their em-
ployees save for retirement to get value from their
pension spend.”
While people are planning to work longer, manufac-
turers have called for the retention of the default re-
tirement age of 65, another survey has revealed.

Poor quality of jobs was seen as being part of an un-
derlying explanation for many persistent workforce
issues they faced including sickness absence,
retention, poor motivation levels and difficulties
hiring the right people.
The study of nearly 500 employers showed two-
thirds (65%) back the retention of the default retire-
ment age of 65, the support slightly higher among
large and medium-sized companies than in small
firms, according to The Consulting Employment
188
Survey 2009 published by manufacturers’ organisa-
tion EEF and CPH Consulting.
The survey also showed that most requests by
employees to postpone their retirement had been
accepted by employers (84%).
In addition, just under half (47%) of employees who
had reached age 65 in the past year had asked to
postpone their retirement and continue working.
David Yeandle, head of employment policy at the
EEF said: “Manufacturers clearly want to retain a
default retirement age that is linked to state pen-
sion age.
“Experience shows that the right for employees to
request to continue working after 65 is enabling
employers and employees to find mutually accept-
able outcomes. This should be taken into account
by the government in its evidence-based review of
the default retirement age of 65.”
www.peoplemanagement.co.uk/pm/articles/2009/11/majority-of-older-workers-now-
plan-to-work-past-65.htm
www.personneltoday.com/articles/2009/11/18/53038/default-retirement-age-should-
stay-according-to-majority-of-manufacturers.html
Women at the top hit
glass ceiling again
A rise in the proportion of female directors at top
UK companies is one of the few positives that can
be taken from an annual study by Cranfield Univer-
sity School of Management.
Now in its eleventh year, the 2009 Female FTSE
Board Report found that the number of director-
ships held by women, at 131, is exactly the same
as in 2008. But because of an overall decline in
the number of directors in FTSE 100 companies
the proportion of female held directorships rose
to 12.2% from 11.7%.
The number of women executive directorships has
stalled at 17, but the proportion rose to 5.2% from
4.8%, while the number of part-time, non-executive
directorships is unchanged at 114, but again the
proportion rose — to 15.2% from 14.9%.
Ruth Sealy, one of the reports co-authors, said she
was “very disappointed” by the slow pace of change.
The proportion of female directors in the FTSE 100
is just five percentage points higher than in 1999.
There are other discouraging signs of progress
Fact Service Volume 71 Issue 47
being stalled at best. Firstly, the number of women
holding FTSE 100 directorships is steady at 113
after years of growth.
Companies with female executive directors num-
bered 15 in 2009 against 16 the year before. And
there is an overall decline in the number of compa-
nies with women on boards from 78 to 75 this year.
Also down from 39 to 37 is the number of compa-
nies with multiple female directors. And the list
of shame of companies where there is no women
director grew longer – 25 or one in four FTSE 100
companies have exclusively male boards in 2009
against 22 the year before.
One of the few positive findings for equality cam-
paigners in the Cranfield report was that there
are 2,281 women — up from 1,877 last year — on the
boards, executive committees and senior teams
of all listed companies in the FTSE indices. That
meant there was “a huge and growing pipeline of
female talent available to the FTSE 100 boards”,
said the report.
Four women are at present chief executives of
FTSE 100 companies — Angela Ahrendts at luxury
clothes group Burberry, Cynthia Carroll at mining
multinational Anglo American, Katherine Garrett-
Cox at investment trust Alliance Trust and Dame
Marjorie Scardino at media group Pearson.
And they are to be joined by Alison Cooper, chief
operating officer at Imperial Tobacco, is to take on
the chief executive's job next year.
In addition, there are also three women who chair
FTSE 100 companies — Alison Carnwath at property
group Land Securities, Baroness Hogg at private
equity group 3i and Lesley Knox at Alliance Trust.
Joint top of the women directors league table, with
three women board members out of seven, are
Alliance Trust, and Burberry. The drinks group
Diageo comes third and is the only company with
four women board members (out of an 11-strong
boardroom).
The study found that, out of 14 new FTSE 100 women
directors, only one is British. “There is a problem
still in the perception that somehow foreign women
are better,” said Sealy.
www.cranfieldknowledgeinterchange.com/kihtml/topic/The%20Economic%20Down
turn/0028/Report.pdf
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