PM call to firms on oil price falls

Published: Saturday 17th January 2015 by The News Editor

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Companies should pass on the benefits of falling oil prices to their staff, David Cameron has said.

The Prime Minister said plummeting costs were a real boost for many businesses and workers should reap the rewards.

Flourishing firms should also pay staff the living wage, currently set at £7.85, said Mr Cameron, who has made a two-day visit to the US for talks with President Omaba, and was speaking in Washington.

Global oil prices have dropped dramatically over the last seven months amid falling demand in economically struggling countries and increased production in the United States.

Asked whether he would encourage firms to pass on some of the windfall profits from falling oil prices in higher wages, Mr Cameron told reporters: “Obviously I want to see companies’ success passed through in terms of wage increases.

“It has to be done in a way that’s affordable, and in a way that companies can continue to grow, we need to see productivity increase.

“Companies that can afford to pay the living wage should. It’s good and helps to reduce the welfare bill.”

Pressed on whether firms should share the oil dividend with their workers, he said: “Falling oil prices is going to benefit a lot of businesses and a lot of countries and we want to see those benefits passed through in all the ways they can be.”

Published: Saturday 17th January 2015 by The News Editor

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