Future Rewards on HMS Great Britain. Glen Jenkins, CIPD reward examiner

In 2009, David Cameron said future generations will pay the price for the UK's soaring debt levels. Little did we know what was meant by this until now. The economic crisis is akin to a ship hitting an iceberg at full steam and if I may take the analogy a little further, when ships get into difficulty such as HMS Great Britain and continue to sink in uncharted seas, the cry ‘women and children first’ is likely to be heard. Traditionally this meant that the chivalrous captain would save women and children first from the perils of the deep not to mention the old and infirm. But it seems that in the modern navy this is no longer the case.

The future rewards of the ‘children’ have already been reduced for they are to pay even more for their higher education. Of course, some children have had to be sacrificed and these have had to jump overboard as youth unemployment rises. But, it goes without saying that those who can swim will survive. The future rewards of women will also be worse, with women now having to work longer to receive a pension and pay more for their pensions for same reason yet with little movement in other aspects of market equity. More recently, some have been left with a hole in their pensioned lifeboat both in the boiler room (private sector) where 36% have a pension and now it’s the stewards turn  (public sector) where 80% have a pension. In the eyes of the captain the stewards have too much future rewards causing waves of resistance and raising questions as to whether we are all in the same boat! In short, many on board will have their rewards reduced in the future simply because there is little sign of global warming and the icebergs will not melt fast enough.

What then of the captain and his first mates or those in first class? Well some in first class have already left the ship by helicopter to be landed on some distant shore or other haven and are more the better for it. The first class who remain, only 1% of the ship’s passenger list who own 21% of marketable wealth, have had a personal tax hike of 10% but also seen their fortunes rise in 2011 following the taxpayer-funded bailout. Meanwhile the steerage class (the cheapest accommodation) is 50% of passengers who own just 7% of the wealth (take away the value of their homes and that figure falls to around 1%). Consider too that the proportion of GDP going to such employees in the shape of wages and salaries has declined from around 65% in 1976 to around 55% today. Are then women, children, the aged and particularly those in steerage taking too much of the future economic burden? Add to this that many of the steerage class during rising inflation will be subject to pay freezes or increases in pay below inflation together with the disproportionate burden of taxation through increased VAT and benefit changes and their future rewards look bleak.

Meanwhile some of those at the captain’s table who see fairness at the heart of the evacuation procedure are worried about this. Do they stay with the captain until the ship sinks or hits another iceberg or do they commandeer the executive dinghy and escape?  As for the captain, he has clearly rejected traditional virtues and honour and chosen not to protect women, children and the aged first but the first class or those who can best afford it.