Maximum Wage to end short term bonus culture

Today Plaid became the first political party to back calls for a maximum wage.

A motion put to the Plaid party Conference in Llandudno will seek to bring about an end to the short term target culture that has contributed heavily to the current economic crisis in Britain.

The maximum wage motion, put forward by Plaid’s Westminster MPs, would ensure a greater balance between the amount paid to high earners and that paid to ordinary staff.

The move also comes following a timely call from the chairman of Goldman Sachs, Lloyd Blankfein, to ban multi-year guaranteed bonuses throughout the banking industry.

Plaid MPs have worked with leading think tank Compass to launch a campaign calling for a High Pay Commission. The establishment of such a body would examine the issues which led to the crisis in the financial sector and relating to excessive pay of executives in public and private companies.

Plaid’s Adam Price MP said:

“The differentials in pay between staff in successful economies such as Sweden are significantly lower than those in the UK and other countries that adhere to the Anglo-American model. It is important in setting out a long term approach to dealing with the recession and stabilising the economy that this imbalance is addressed.

“Passing this motion through Conference today has really highlighted how forward thinking Plaid is. Establishing a High Pay Commission could mean a ground-breaking change in the banking culture and proves that Plaid is in tune with key industry figures and widespread public opinion who are feeling the real impact of the recession bought about by this reckless culture. Gordon Brown’s government is meanwhile playing catch-up and failing to take decisive action to address such unfair practises.

“The motion is designed to tackle the culture of reckless quick fix practices. Instead of bonuses being paid on short term results it will establish the principal of long term development and growth being rewarded.

“Those rewards should also be shared amongst all members of society and not just the privileged few.”

Gavin Hayes, General Secretary of Compass added:

“It is fantastic that Plaid Cymru have adopted a ‘maximum wage’ policy as part of their manifesto. The Compass YouGov polling on attitudes to high pay released earlier this week confirms the public also want tougher action to curb excessive pay - with 63% support for a High Pay Commission which would consider ideas such as a maximum wage.

“It’s also clear that the British people don't just want rhetoric from politicians they demand concrete action, it is therefore a positive step that Plaid Cymru have shown boldness in adopting this policy and it’s high time the other parties caught up.”