Wage repression is a fairly self-explanatory term meaning the deliberate undermining of wages by employers. Wage repression is most often used by private sector employers in order to cut their payroll expenditure, but taken as a whole, the state is actually the largest employer, and is just as capable of repressing wages as the private sector.
The idea that economic efficiency can be increased through the repression of wages is an article of faith for ideological neoliberals. Witness the effects of the current Tory austerity programme on wages, or think back to the 1980s when the collective bargaining rights of millions of workers were attacked by Margerat Thatcher's government.
I say that wage repression is an article of neoliberal faith because (much like a lot of orthodox neoliberal theory) there is actually little actual evidence that wage repression is good for the national economy, and in fact, a lot of evidence that it is actually harmful.
The reason that the subject of wage repression is important now, is that the UK is currently enduring the longest period of wage repression in over a century, in which the average wage has fallen in real terms every single month for three consecutive years (every month since the Tory led government came to power).
anotherangryvoice.blogspot.co.uk/2013/07/what-is-wage-repression-explained.html