Public sector workers should rein in their pay demands to avoid a repeat of 1970s style hyper-inflation, a Tory Minister has declared.
Simon Clarke, the chief secretary to the Treasury said that workers should not expect big pay rises as that would lead to spiralling inflation and even higher prices for goods.
With inflation already running at ten per cent other key workers are expected to follow striking railway workers in demanding wage rises that keep up with the cost of living.In Scotland, where the SNP government runs most public sector services, the Unite trade union has already recommended rejection of the Scottish Government’s five per cent pay offer to NHS staff.
A GMB ballot has already begun that could see Scottish council workers take strike action unless local government bosses increase pay by more than two per cent.
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