The leader of the Trades Union Congress will later say that the “longest wage crunch since Napoleon” has left British families torn apart.
Workers face two decades without real wage growth, Frances O’Grady will tell the TUC conference in Brighton.
Since the 2008 financial crisis, prices have risen faster than wages.
There is a “moral and economic case for making sure people’s wages at least keep up with inflation,” she told the BBC.
“The economy is distorted,” Ms O’Grady told the BBC’s Today program ahead of the conference.
“Shareholder dividends have grown much, much faster while real wages have fallen.
“We need people with money in their pockets to spend in local shops in pubs to keep our high streets open.”
The union confederation estimates that real wages – accounting for rising prices – will not return to 2008 levels until 2028.
This would mean another real loss averaging £4,000 over the next three years as price increases outpace wage growth.
The TUC calculates that the average worker will have lost a total of £24,000 in real income since the 2008 financial crash because wages have not kept pace with inflation.
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Ms O’Grady, who is stepping down as TUC general secretary after nearly a decade, said the government’s policies have caused “mess and damage” that is affecting livelihoods, mortgages and household bills.
Public sector workers were leaving “in droves” because of poor wages, she added.
In her later speech, Ms O’Grady will warn the government against implementing plans that would make it more difficult for unions to organize strikes.
“If ministers cross the street to argue with us, we’ll meet them halfway … we’ll see you in court,” she will say.
There has already been a wave of strike action affecting postal, communications and railway services. Lawyers and dockers also went on strike. Health and education workers vote on measures.
The government has proposed obliging unions to submit salary offers to a member for a vote before calling a strike. It is also intended to ensure that transport companies maintain a minimum level of service during industrial disputes.
New rules allowing employers to hire temporary workers during strikes have already been passed.
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