I'd have a bigger problem with the term competitive. In the UK there is this idea of a living wage, which is essentially enough to live comfortable on. In most of the country its around 7.20 pounds and hour and in London its just over 9. When I say decent wages I mean the living wage. What is competitive is harder to explain. Wages in companies can be held back by "stickiness" which can lead to a situation in which workers are overpaid relative to their productivity which means that what workers are paid isn't always determined by supply or demand.