Small pay rises, big tax cuts - labour market boss
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Confederation of Finnish Industries (EK) CEO Leif Fagernas still considers very moderate pay rises and cnsiderable tax cuts the best labour market solution for employment, competitiveness and buying power.
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The push-and-pull over the 2009 federal pay raise is underway.
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House Democrats plan to vote next week on a package of small-business tax breaks that could ease the way for final congressional action on legislation to raise the minimum wage.
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The first minimum wage increase in 10 years takes effect Tuesday, to $5.85 from $5.15 an hour, with two more steps over the next two years taking base pay for millions of workers to $7.25.
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Liberal Democrats propose slashing basic rate of income tax in radical repositioning move.
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The German trade union IG Metall said that it would demand a pay increase of 6.5 percent in wage talks expected to begin soon, setting the stage for a clash with employers. âThe metal and engineering industries can easily cope with and finance an increase of 6.5 percent,â IG Metallâs head, JÃ¼rgen Peters, left, said in a statement issued after a union board meeting. âItâs the employersâ turn in 2007.â Mr. Peters said IG Metall was expecting productivity gains of 1.8 percent for the economy as a whole and inflation of 2.3 percent this year, matching the government estimate. Productivity in the engineering and metal industries, however, was expected to rise more strongly, by 4.5 percent to 5.5 percent. Dieter Hundt, head of the Confederation of German Employersâ Associations, said in a statement that a 6.5 percent wage increase would hurt the economy and undermine recovery of the sector, which led to the creation of 30,000 jobs last year.
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Goldman Sachs is to pay its staff more than Â£8bn in salaries, benefits and Christmas bonuses this year.
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The Treasury says its below-inflation public sector pay rises are fair, but unions threaten industrial action.
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Chancellor to scrap elements of a new tax on high-earning foreign workers
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The Senate voted overwhelmingly today to increase the federal minimum wage for the first time in nearly a decade, but added tax breaks for small businesses that are unacceptable to House leaders, preventing Democrats from claiming a quick victory on one of their top legislative priorities.
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Three new wage levels are introduced for different age groups as part of the government's programme of minimum pay  rates.
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Teachers in England and Wales will get pay rises above the 2% set by Prime Minister Gordon Brown.
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Sometimes it is small provisions that trip up big bills.
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The minimum wage rate has increased, but many people in the UK do not get the right amount for their work.
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The highest earners should pay more tax - with the cash used to reduce child poverty, says UK trade union leader.
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There are ways to secure higher pay even when all other employees receive the same annual increase, says Sue Shellenbarger. Plus, more on work and family.
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The chairman of the House taxwriting committee said Tuesday he would be willing to link tax breaks for small business to a hike in the minimum wage but that the $8 billion tax package adopted by the Senate was unacceptable.