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History - Britain > A Changing Political & Economic Environment 1918-1979 > Flashcards

A Changing Political & Economic Environment 1918-1979 Flashcards

1
Q

Britain in 1918

Immediately Post-War

A
  • WWI ended November 1918
  • GB lost 750K+ men, 2.3M wounded
  • GB owed £1B, mostly to USA
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2
Q

Britain in 1918

Political Effects

A
  • Governed by wartie coalition of Liberals & Cons.
  • Led by David Lloyd George
  • No election since 1910 - biggest question was over continuation of coalition
  • New election in December 1918
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3
Q

Britain in 1918

Representation of the People Act

A
  • Passed February 1918
  • Trebled electorate - 7.7M to 21.4M out of 41.6M total population
  • All women over 30 could vote - 8M
  • All men given vote - 6M added
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4
Q

Britain in 1918

Conservatives

A
  • Widened appeal during past century as party of MC & UC
  • 25% of WC voted Cons.
  • Part of wartime coalition formed by Liberal PM Asquith in 1915
  • Electoral success in 1918 & 1922 meant many thought the party could govern alone
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5
Q

Britain in 1918

Liberals

A
  • Deeply Divided
  • DLG was PM and leader of Liberals who supported coalition, but Asquith was still official leader of the party
  • Many thought DLG’s defeat of Asquith was underhanded - led to split between supporters of each
  • Asquith supporters felt DLG’s wing of the party was too close to Conservatives in policy - particularly opposed conscription in war
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6
Q

Britain in 1918

Labour

A
  • Created in late 19thC to represent union interests - received most finance from them
  • Trade unions saw Labour as the means by which workers’ pay & conditions could be improved in Parliament
  • Expected to gain more MPs through growth of electorate
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7
Q

Britain in 1918

1918 Election

A
  • Overwhelming victory for wartime coalition
  • Conservatives & pro-coalition Liberals won 459 seats - 10 other MPs supporting them
  • Largest single opposition party was Labour - 57 MPs
  • New Gov would face significant problems
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8
Q

Britain in 1918

Maintaining Unity

A
  • Cons. held most seats among coalition supporters - 332
  • DLG dependent on Cons. support - could be withdrawn if they wanted to form own gov.
  • Many Cons. disliked DLG’s use of govt. Honours - opnely sold peerages & knighthoods to wealthy supporters to remain in power
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9
Q

Changing Party Fortunes 1918-1931

1922 Election

A

Conservatives won overall majority

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10
Q

Changing Party Fortunes 1918-1931

Labour

A

Won 142 seats & supplanted Liberals as official opposition in 1922 Election

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11
Q

Changing Party Fortunes 1918-1931

Liberals

A
  • 1920s saw dramatic decline in fortunes of liberal
  • Never again took power - marginalised in British politics
  • Supplanted by Labour as voice of WC - especially after ROPA
  • Didn’t recover from split during coalition
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12
Q

Changing Party Fortunes 1918-1931

Conservatives

A
  • Saw themselves as natural party of goc, adjusting to changing circumstances & embracing all groups
  • Motto during 1920s: ‘Safety First’ - exemplified by Standley Baldwin, who offered reassuring presence & gave aura of confidence (eg. during 1926 General Strike)
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13
Q

Changing Party Fortunes 1918-1931

First Labour Administration (Jan-Oct 1924)

A
  • Minority administration needing Liberal support
  • Found it difficult to break with perception that they only represented interests of WC
  • March 1924, London transport strike: PM MacDonald declared state of emergency, was prepared to bring in troops - many unionists felt betrayed
  • Found it difficult to win trust - some conservatives in society thought they were covert revolutionaries
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14
Q

Changing Party Fortunes 1918-1931

The Campbell Affair & The Zinoviev Letter

A
  • Commie Party editor, JR Campbell, accused of incitement to mutiny in an article, but Labour Attorney General withdrew charges - accused by Liberlas of being pro-revolution, withdrew support & Labour Gov resigned
  • Shortly after, Daily Mail published letter allegedly from Russian Commie Zinoviev, advising Commie Part on how to start revolution in GB - hoax, but did irreparable damage to Labour in election campaign
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15
Q

Changing Party Fortunes 1918-1931

Second Labour Administration (1929-1931)

A
  • Again a minority gov
  • Dominated by economic crisis hwych saw unemployment double & foreign investors lowe confidence in British economy
  • MacDonald entered into coalition with Cons in 1931 - National Government
  • This decision split Labour
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16
Q

The National Government 1931-1945

Policies 1931-1939

A
  • Biggest challenge was to combat economic depression
  • Implemented severe spending cuts and tariffs to protect domestic industry
  • Policy was generally conservative and limited
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17
Q

The National Government 1931-1945

Tariffs

A
  • Import Duties Act 1932 - 10% tariff on most imports
  • Attempts to develop Imperial Preference had only limited success
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18
Q

The National Government 1931-1945

Interest Rates

A
  • Bank rate reduced from 6% to 2%
  • Helped stimulate recovery by reducing interest rates on borrowing
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19
Q

The National Government 1931-1945

Unemployment

A
  • Unemployment Act 1934 - introduced ‘means test’ for those whose Unemployment Insurance had run out
  • Most workers covered by 1920 Unemployment Insurance Act, but benefits only lasted for 15 weeks per year
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20
Q

The National Government 1931-1945

Depressed Areas

A
  • Special Areas Act 1934 - introduced grants to stimulate industrial growth in depressed areas
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21
Q

The National Government 1931-1945

Public Order

A
  • Public Order Act 1936 - banned inflammatory political meetings and the wearing of military style uniforms
  • Passed in the face of threats from extremist groups
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22
Q

The National Government 1931-1945

Rearmament

A
  • Began in late 1930s in the face of the increasingly tense international situation
  • Helped ease economic difficulties of 1930s
  • Some success as unemployment fell, but it wasn’t until the first year of war that it fell below 1M - partly due to conscription
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23
Q

The National Government 1931-1945

Extremist Measures

A
  • Many political extremists favoured more radical measures - to combat Depression & change GB society
  • Communists - calling for Russian-style revolution
  • The Right - many supported fascism
  • 1932 - British Union of Fascist formed by Sir Oswald Mosley - 50k members at peak
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24
Q

The National Government 1931-1945

Wartime Government

A
  • National Government continued
  • Neville Chamberlain, who had tried to appease Hitler, was unsuccessful as war leader
  • Following defeat of British troops in Norway, Churchill became leader
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25
Q

The National Government 1931-1945

Total War

A
  • During war years, gov controlled most aspects of everyday life - whole country on war footing
  • Conscription, centralised economic planning, censorship, rationing
  • Generally accepted as necessary for victory
  • Groundwork set for gov involvement in people’s lives in post-war years
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26
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Post-war consensus

A
  • Main parties generally agreed on political principles, even if disagreeing on detail
  • Continuation of centralised economic planning & involvement of gov in economy
  • Continuation of Welfare State & NHS
  • Goal of full employment & equal opportunities for all
  • Ended in 1970s due to economic problems
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27
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Labour Government 1945-1951

A
  • Controversially nationalised industries such as coal mining, shipbuilding, railways
  • Introduced comprehensive Wlefare State, including NHS in 1948
  • Struggled with economic problems from cost of war
  • Forced to continue with wartime austerity (eg. rationing) - made them unpopular, lost next election
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28
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Conservative Government 1951-1964

A
  • Won 3 elections in this period - country enjoyed period of prosperity as Western Europe recovered from war
  • Growth of ‘affluent society’ - PM Macmillan 1957: ‘most of our people have never had it so good’
  • GB losing credibility as world power - humiliation over Suez in 1956
  • Balance of payments in deficit - pressures on value of sterling
  • Growing numbers of industrial disputes
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29
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Suez Crisis 1956

A
  • British & French invaded Suez Canal zone in Egypt after it had been nationalised by Egyptian ruler Colonel Nasser in 1956 - it was owned by British & French shareholders
  • GB forced to withdraw due to pressure from USA
  • USA opposed invasion because they thought it was imperialist, or wealthy countries acting aggressively towards a weaker country
  • National humiliation for Britain
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30
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Labour Government 1964-1970

A
  • Won 1964 election with a small majoirt of 4
  • Economic problems continued
  • Balance of Payments deficit meant they had to devalue Sterling by 14% in 1967
  • Failed to solve industrial disputes
  • Comprehensive education saw substantial growth
  • Abortion & Homosexuality legalised in 1967
  • Death penalty abolished in 1969
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31
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Conservative Government 1970-1974

A
  • Gov of Ted Heath committed to less state involvement in econmy - more critical of post-war consensus
  • Dominated by economic problems & industrial unrest
  • 3 day week of 1973-1974
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32
Q

Labour Gov - rise of Consensus politics & political challenge 1945-1979

Labour Governments 1974-1979

A
  • Economic problems & industrial unrest continues
  • 1976 - gov began to retrench
  • PWC was over
  • Callaghan Labour gov brought down in ‘Winter of Discontent’ 1978-1979
  • Economic problems were so great that GB was referred to as ‘the sick man of Europe’
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33
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

Recession 1920-1921

A
  • By 1921, 2M workers unemployed
  • Centres of olf industries such as South Wales & Tyneside suffered depression
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34
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

Problems with traditional industries

A
  • GB’s industrial wealth had been built on traditional industries, which were now in trouble
  • Markets were lost during the war and some countries had developed their own industries to meet the scarcity
  • New competitors emerged, which were more cost-effective than British industries (eg. USA, Japan)
  • British industry was outdated and under-invested in, making it uncompetitive
  • By 1937, GB was producing 83K tonnes of steel yearly, compared with 210K tonnes in USA and 125K tonnes in Germany
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35
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

The Geddes Axe

A
  • 1921 - DLG appointed Sir Eric Geddes to implement greater cuts in public expenditure
  • GEddes recommended £87M of cuts - mostly from military budget
  • Health, welfare, and housing budgets cut from £205M in 1920 to £182M in 1922
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36
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

Return to Gold Standard

A
  • Chancellor Churchill returned GB to Gold Standard in 1924
  • Aim was to restore confidence in sterling, but the effect was to overvalue it - by 10%
  • British exports too expensive - trade diminished
  • Britain came off Gold Standard in 1931
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37
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

The May Report 1931

A
  • Set up in July 31 to report on economy forecast that by April 1932, the deficit could be as high as £120<
  • Proposed significant cuts - eg. reductions in salaries of public sector workers & benefits
  • Response to this report led to fall of 2nd Labour gov
  • Nat. Gov. - implemented 10% cuts in salaries across the board
  • Income reductions led to less consumption - impeded economic recovery
38
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

Careful Reform

A
  • Nat Gov of 1930s responded with limited measures - eg. Special Areas Act
  • Most believed economy would eventually right itself
  • By 1934 - some prosperity returnin, particularly in areas of newer industry (eg. Midlands)
  • Prices fell - those in employment enjoyed prosperity
  • Econmic depression was regional - centres of old industry worst hit
39
Q

Response to economic challenges: post-war boom, crisis, recovery 1918-39

New Industries

A
  • Eg. car manufacture & houehold appliances
  • Developing using modern methods of production - assembly line
  • Focused in areas such as South-East and Midlands - most of their domestic market in these areas
40
Q

Creating a Managed Economy 1939-1951

Wartime Economy

A
  • Gov created ministries (eg. Ministires of Supply & Food) to control wartime economy
  • Each given extensive legal powers to intervene and, if necessary, take over the running of essential war industries
41
Q

Creating a Managed Economy 1939-1951

Post-war Austerity 1945-1951

A
  • Continuation of austerity and rationing
  • Needed to pay for war
  • Needed to concentrate domestic production on exports
  • Needed to pay for the development of the Welfare state
41
Q

Creating a Managed Economy 1939-1951

Military Expenditure

A
  • 1939 - significant shortages in military equipment
  • Once industrial and productive structures were in place, there were massive increases
  • 1940 - GB produced 15K aircraft
  • 1944 - GB produced 47K aircraft
  • Produced 6K-8K tanks per year
42
Q

Creating a Managed Economy 1939-1951

Debts

A
  • By the end of WWII - £4B of debt with USA
  • Repayment & mounting interest cost £70M per day
  • Permanent pressure on value of sterling - 30% devlauation in September 1949
  • Value of £1 fell from $4.03 to $2.80
43
Q

Creating a Managed Economy 1939-1951

Trade Disruption

A
  • Once again, British trade was disrupted/damaged by the war and the devastation it caused
  • Trade shrank by 66% in post-war years
44
Q

Creating a Managed Economy 1939-1951

Britain’s expensive World role

A
  • Marshall Aid offered to Western Europe in 1948 to help with recovery
  • GB was a big recipient - up to £2.7B
  • Much of it was used to maintain Britain’s international commitments - eg. Empire, international fight against Communism
  • Britain still saw itself as a global superpower
45
Q

Creating a Managed Economy 1939-1951

Nationalisation

A
  • 1946 Coal Industry Nationalisation Act
  • 1946 Bank of England Act
  • 1947 Transport Act (nationalisation of railways, road haulage, and buses)
  • 1947 Electricty Act (nationalisation of electricity production & national grid)
  • 1948 Gas Act (nationalisation of gas industry)
  • 1949 Iron & Steel Act (nationalisation of iron and steel industry)
46
Q

Creating a Managed Economy 1939-1951

Labour’s Economic Record 1945-1952

A
  • Full employment achieved 1947-1951
  • Britain increased its percentage of world trade from 17% in 1939 to 20% in 1950 - reduced balance of payments degicit
  • Exports grew by 80%
  • Economy grew by 4% each year after 1948
46
Q

The Response to Economic Challenges 1951-1979

1951-1979

A
  • Period of sustained economic growth which lasted until early 70s
  • Some signs of economic problems
  • Under-investment in industry leading to relatively low productivity
  • Continuing trade deficit leading to weaknesses in sterling
  • Inflation
  • Worsening industrial relations
47
Q

The Response to Economic Challenges 1951-1979

Stop-Go

A
  • Periods of high interest and low investment followed by periods of low interest and high investment
  • Risky policy followed by Cons. chancellors
  • Builds inflationary pressure
  • Macmillan’s team of Treasury ministers resigned in 1957 over this - wanted to reduce gov spending, eg on welfare
48
Q

The Response to Economic Challenges 1951-1979

Planning Economic Growth: Conservatives

A
  • 1961 - Cons gov set up 2 organisations to develop planned economy
  • NEDDY: National Economic Development Council - representatives of employers, unions, and gov planned growth
  • NICKY: National Incomes Commission - regulated wage demands
49
Q

The Response to Economic Challenges 1951-1979

Planning Economic Growth: Labour

A
  • 1964-1970: new Department of Economic Affairs creayed
  • Aim was to create a National Plan to guide economic developemnt by encouraging competition between government, employers, and unions
  • Economic growth remained poor, by 1967 plan was dropped
50
Q

The Response to Economic Challenges 1951-1979

Sterling

A
  • Valued too highly, in continuous crisis
  • November 1967 - gov devalued sterling by 14%
  • Improved exports - cheaper
  • Led to greater inflation at home as imports became more expensive
  • By 1968 - inflation up to 18% per annum
51
Q

The Response to Economic Challenges 1951-1979

The 1973 Oil Crisis

A
  • Post-war prosperity largely dependent on cheap fuel
  • OPEC (Organisation of Petroleum Exporting Countries) were the biggest providers - located mainly in Middle East
  • September 1973 - major war broke out between Israel & Arab neighbours
  • OPEC reduced supply of oil and raised prices as a response to perceived Western support for Israel - $2 to $35 per barrel between 1973-19890
52
Q

The Response to Economic Challenges 1951-1979

Effects of the Oil Crisis

A
  • Severe shortages of fuel for industry and petrol for transport
  • Imports more expensive - value of sterling further reduced (£1 = $1.50 - huge budget deficits
  • Inflation grew again to 16% by 1974 despite having fallen in early 70s
53
Q

The Response to Economic Challenges 1951-1979

IMF loan 1976

A
  • Deficit continued & exchange rate collapsed from high of £1=$2.41 in March 1975 to $1.63 by October 1976
  • November 1976: gov had to apply to International Monetary Fund for £3B loan
  • Condition was deflationary measures - including reductions in gov spending (7% by 1978)
54
Q

Change and Challenge in the Workplace 1918-1939

Reasons for & Consequences of Industrial change

A
  • Inter-war years saw considerable challenges for old established industries
  • Consequences saw continued depression in these industries and industrial unrest (esp. during 1920s)
  • 1930s largely saw continued decline - conditions improved as Britain moved towards war production in latter years of decade
55
Q

Change and Challenge in the Workplace 1918-1939

New Industries

A
  • Car production & light engineering, which employed modern techniques, saw success
  • Tended to concentrate on production of consumer goods for home market
  • # of telephones increased by from 1M to 3M 1922-1938
  • Car industry moved from 8th to 4th place among British industries in terms of value of net output 1924-1935
  • Also enjoyed more favourable industrial relations as unionism was not entrenched in them
56
Q

Change and Challenge in the Workplace 1918-1939

Changing Industrial Relations 1918-1939

A
  • Industrial relations in old relations often poort
  • Millions of days lost to strikes during immediate post-war period
57
Q

Change and Challenge in the Workplace 1918-1939

Industrial relations 1918-1921

A
  • 1918, following armistice: enormous wave of unrest as workers, soldiers, and police went on strike
  • 1919: 32M days lost to strikes
  • Many feare political motivation for strikes - seeking revolution with Russian model
  • Most were about fair pay and working conditions
58
Q

Change and Challenge in the Workplace 1918-1939

Reasons for Miners’ Strike 1921

A
  • Wartime gov control of coal mines ended in March 1921
  • Mines returned to private industry
  • Wages cut, hours lengthened to compete with foreign coal imports
59
Q

Change and Challenge in the Workplace 1918-1939

The Triple Alliance

A
  • Mines Federation of Great Britain (MFGB)
  • National Transport Workers Federation (NTWF - representing dock workers)
  • National Union of Railwaymen (NUR)
  • Formed to protest wages in their industries
  • When MFGB refused to accept pay cuts, mine owners locked out their workers on 1 April
60
Q

Change and Challenge in the Workplace 1918-1939

Black Friday

A
  • Friday 15 April
  • NUR & NTWF decided against striking in support of miners
  • Miners’ strike of 15 April to 28 June was defeated
  • Forced to accept wage cuts that left their pay 20% lower than in 1914
  • Learned that they could not fight gov alone, bitterly resented collapse of Triple Alliance
61
Q

Change and Challenge in the Workplace 1918-1939

The General Strike 1926: Causes

A
  • Crisis in coal mining reasserted itself in June 1925
  • Significant fall in coal prices - coal owners announced pay cuts and increased hours
  • To avoid industrial action, gov offered temporary subsidy to make up wages while Royal Commission was set up to deliver long-term solution to problems in industry
  • The Samuel Commission reported in March 1926 - recommended 13.5% pay cut for miners & withdrawal of subsidies
62
Q

Change and Challenge in the Workplace 1918-1939

The General Strike 1926

A
  • 1 May 1926 - 1M miners across Britain lolcked out for refusing to accept new lower wages
  • TUC announced General Strike beginning 4 May
  • Many Cons. saw this as plan to overthrow the state
63
Q

Change and Challenge in the Workplace 1918-1939

Government Responses to the General Strike 1926

A
  • Established its case through its newspaper, The British Gazette, and BBC broadcast radio messages in support of its position
  • Gov supported Organisation for the Maintenance of Supplies - founded to keep services running
  • Mainly volunteer members - manned buses, trains, telephone exchanges during strike
64
Q

Change and Challenge in the Workplace 1918-1939

Consequences of the General Strike 1926

A
  • Strike collapsed because TUC could not countenance a protracted strike over which they may lose control
  • Union members began to return to work
  • Wages for miners slashed, Industry lost 30% of its jobs
  • Catastrophic failure for miners
  • Trades Disputes Act 1927 - prevented sympathy strikes & mass picketing
65
Q

Change and Challenge in the Workplace 1918-1939

Reasons for changing industrial relations 1921-39

A
  • Union activity throuhgout 30s was significantly weakened by aftermath of General Strike
  • Great Depression resulted in mass unemployment
  • Union revenues depleted
  • Membership of Unions declined from height of 8M in 1922 to 4.5M in 1932
66
Q

Changing Work Opportunities & Conditions 1939-1979

WWII

A
  • Movement to war production - full employment by 1941
  • Many women entered work in factories and jobs previously designated for men
  • Factories underused in the 1930s switched to building weapons & munitions
  • 1944: 33% of civillian population involved in war work (over7M women)
67
Q

Changing Work Opportunities & Conditions 1939-1979

Wartime Employment

A
  • Minister of Labour Ernest Bevin issued Essential Work Order in March 1941
  • Tied people to jobs considered essential for war effort - made dismissal difficult
  • Shortage of skilled workers - eg. in engineering & shipbilding
  • September 1939: Control of Employment Act - allowed semi-skilled workers to do skilled jobs
  • Skilled workers in essential war industries exempt from conscription
68
Q

Changing Work Opportunities & Conditions 1939-1979

Bevin Boys

A
  • Controversial policy
  • Began in December 1943
  • Conscripted 10% of young men into coal mines instead of military
  • Many of those conscripted resented this alternative to armed forces
69
Q

Changing Work Opportunities & Conditions 1939-1979

Full Employment in the 1950s & 1960s

A
  • 1940s-1970s: Both Labour & Cons. maintained commitment to full employment
  • In part possible due to favourable economic conditions in 1950s & 1960s
  • Unemployment rose to above 2% in only 8 of the years 1948-19790
70
Q
A
71
Q

Changing Work Opportunities & Conditions 1939-1979

Working Conditions

A
  • Low unemployment had direct impact on industrial relations
  • Employers had to offer attractive wages & working conditions to maintain workforce
72
Q

Changing Work Opportunities & Conditions 1939-1979

Employment Opportunities

A
  • Better education, buoyant economy = more employment choice
  • Tech developed = more opportunities, eg. in electronics, light engineering, consumer goods
  • More managers required
  • Growth in service sector, tourism, shops, restaurants
73
Q

Changing Work Opportunities & Conditions 1939-1979

Growth of Unemployment in 1970s

A
  • Industrial problems developed - unemployment rose to 1M by 1972
  • Decline in heavy industry = unemployment more acute in industrial areas (North, South Wales, Midlands, Scotland)
  • Eg. West Midlands industry geared to motor vehicle production & components - problems in car production could have massive knock-on effects
  • Firms involved in high technology (esp. computer manufacture) were largely immune to economic downturns
  • By 1976, Labour gov abandoned commitment to full employment, accepted market forces would have greater role in determining employment levels
74
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

War Years 1939-1945 - Wartime Strikes

A
  • WWII created many problems in working conditions - long hours, difficult conditions
  • Despite agreements to minimise industrial disruption, there were many strikes and protests over wages and conditions
  • Coal Mines, Spring 1944: 100K Welsh miners on unofficial strike for better wages
75
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

Industrial Relations in the 1950s & 1960s

A
  • Inustrial tensions maunted, although Cons govs. didn’t see them as a priority
  • Attempted to get unions to practise voluntary restrains in pay claims
  • Did not involve themselves directly in most private sector disputes
76
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

Reasons for increase in Industrial tensions in 1960s

A
  • Much work (esp. in heavy industry) was hard & tedious - not much needed to cause dispute (tea break length was sufficient)
  • Work rules/disputes between unions could lead to larger disputes - Many unions had Demarcation rules - rival union members couldn’t do jobs allocated for others
  • Distrust between management & workers: cooperation in strategic planning/production was rare - often had different canteens for management & workers
77
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

Local Strikes

A
  • Industrial disputes proliferated often at local level
  • Local shop stewards called unofficial (wildcat) strikes - often by show of hands
  • 1960: over 3M working days lost to strikes
  • 10M by 1970
  • 94% of strikes outside of coal industry 1969-1973 were wildcat strikes
78
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

The Labour Party

A
  • Traditionally had strong relationship with unions - largely funded it
  • Union movement didn’t always work in harmony with it
  • Wilson years (1964-70): damaging, extensive seamen’s strike in 1966 - led to collapse in value of sterling
  • Dockers’ strike Autumn 1967 - halted loading and transportation of exports
  • Trade deficit doubled between September & October 1967
79
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

‘In Place of Strife’

A
  • White Paper, 1969
  • Advocated restrictions on the right to strike - proper ballot should be held, instead of show of hands, should be a 60-day cooling off period to give time for settlement to be reached
  • Employers would have to honour agreements and agree to consult with unions about changes in working practices
80
Q

Industrial Relations 1939-1979, & reasons for breakdown in 1960s

Impact of ‘In Place of Strife’

A
  • Split the government - Home Secretary Callaghan particularly opposed it
  • Unions refused to co-operate and even threatened to cut funding to Labour if proposals went ahead
  • Proposals abandoned - absence of any policy on Labour relations was a determining factor in Labour’s electoral defeat in 1970
81
Q

Industrial Relations in the 1970s

1971 Industrial Relations Act

A
  • Designed to be strong response to growing problem of industrial action
  • Deeply resented by union movement - refused to register or acknowledge the Act
  • National Industrial Relations Court set up to judge validity of any strike
  • Unions had to register and could face fines if any industrial action was felt to be unwarranted
  • Dropped as a failure in 1974
82
Q

Industrial Relations in the 1970s

Inflation & Productivity

A
  • 1970-1974: inflation averaged 9%, pay increases averaged 14%, and productivity only rose by 5%
  • Workers being paid more to produce comparatively less
  • More money in economy = prices rose = inflation fuelled
83
Q

Industrial Relations in the 1970s

National Union of Miners and the Miners’ Strikes

A
  • 1972 strike against pit closures and higher pay
  • Involved successful tactics such as flying pickets and mass rallies to blockade coal distribution centres
  • 1973: miners won their battle - 21% pay increase
  • Returned in 1974 with further pay demand
84
Q

Industrial Relations in the 1970s

Labour Government 1974-1979

A
  • Principal policy to combat inflation was the social contract
  • Repealed 1971 Industrial Relations Act
  • Ended statutory wage & rpice controls
  • Expanded welfare provision and nationalisation in return for wage restraints in pay claims
  • Number of days lost to strikes fell from 6M in 1975 to just over 3M by 1976
  • Social contract restricted pay claims and held until 1978
85
Q

Industrial Relations in the 1970s

End of the Social Contract

A
  • Jack Jones, leader of Transport & Genreal Workers Union, retired in 1978
  • Replaced by Moss Evans, who was less supportive of social contract
  • Ford workers granted 17% pay rise in autumn 1978
86
Q

Industrial Relations in the 1970s

Winter of Discontent

A
  • Lorry drivers struck for significant pay increases - brought transport network to a halt before accepting 20% increases
  • Low-paid public sector workers went on strike
  • Hospital workers also on strike
  • Liverpool gravediggers also on strike
87
Q

Industrial Relations in the 1970s

Impact of the Winter of Discontent

A
  • Labour’s special relationship with unions had broken down
  • Callaghan had delayed calling election in autumn 1978 - didn’t forsee crisis
  • When he did call election, Conservatives won with majority of 43
88
Q

Industrial Relations in the 1970s

Post-war industrial unrest to 1979

A
  • Many felt employers should’ve done more to improve working conditions and consult workers on practices and strategies
  • Unions learned effective tactics - neither employers nor governments developed strategies to defeat them
  • Unemployment, although rising, remained low
  • Overreliance on Britain’s traditional, highly unionised industries

History - Britain (5 decks)

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