The result is that his company has, by forcing a below inflation pay rise on its workers, but by imposing inflation level price increases on its customers, seriously increased its profits, and so the well-being of those who share them (the shareholders) at cost to its workforce.
In response you will hear all sorts of excuses. These will include things like ‘but pension funds own shares, so this benefits the workers after all’ and ‘but it’s not a lot’ and that those complaining are ‘engaged in class warfare’. But those claims are nonsense.
Pensions funds used to own a lot of shares, but don’t nearly so much these days. And who cares if ‘it’s not a lot’ when it means workers get 5% and shareholders get 20%? Pointing that out is not ‘class warfare’: it is commenting on what’s happening.
As the potato says, economies must add up. If this is happening then and therefore the labour share of GDP must be falling.
The UK labour share of income was 59.8% in Quarter 4 2021, compared with an average of 59.0% pre-coronavirus; on a calendar year basis, the labour share of income ticked up for the fifth consecutive year to reach 60.0%.