A Changing Political & Economic Environment 1918-1979 Flashcards
Britain in 1918
Immediately Post-War
- WWI ended November 1918
- GB lost 750K+ men, 2.3M wounded
- GB owed £1B, mostly to USA
Britain in 1918
Political Effects
- 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
Britain in 1918
Representation of the People Act
- 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
Britain in 1918
Conservatives
- 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
Britain in 1918
Liberals
- 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
Britain in 1918
Labour
- 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
Britain in 1918
1918 Election
- 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
Britain in 1918
Maintaining Unity
- 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 support - could be withdrawn if they wanted to form own gov.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
Changing Party Fortunes 1918-1931
1922 Election
Conservatives won overall majority
Changing Party Fortunes 1918-1931
Labour
Won 142 seats & supplanted Liberals as official opposition in 1922 Election
Changing Party Fortunes 1918-1931
Liberals
- 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
Changing Party Fortunes 1918-1931
Conservatives
- 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)
Changing Party Fortunes 1918-1931
First Labour Administration (Jan-Oct 1924)
- 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
Changing Party Fortunes 1918-1931
The Campbell Affair & The Zinoviev Letter
- 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
Changing Party Fortunes 1918-1931
Second Labour Administration (1929-1931)
- 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
The National Government 1931-1945
Policies 1931-1939
- Biggest challenge was to combat economic depression
- Implemented severe spending cuts and tariffs to protect domestic industry
- Policy was generally conservative and limited
The National Government 1931-1945
Tariffs
- Import Duties Act 1932 - 10% tariff on most imports
- Attempts to develop Imperial Preference had only limited success
The National Government 1931-1945
Interest Rates
- Bank rate reduced from 6% to 2%
- Helped stimulate recovery by reducing interest rates on borrowing
The National Government 1931-1945
Unemployment
- 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
The National Government 1931-1945
Depressed Areas
- Special Areas Act 1934 - introduced grants to stimulate industrial growth in depressed areas
The National Government 1931-1945
Public Order
- Public Order Act 1936 - banned inflammatory political meetings and the wearing of military style uniforms
- Passed in the face of threats from extremist groups
The National Government 1931-1945
Rearmament
- 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
The National Government 1931-1945
Extremist Measures
- 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
The National Government 1931-1945
Wartime Government
- 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
The National Government 1931-1945
Total War
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Post-war consensus
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Labour Government 1945-1951
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Conservative Government 1951-1964
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Suez Crisis 1956
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Labour Government 1964-1970
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Conservative Government 1970-1974
- 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
Labour Gov - rise of Consensus politics & political challenge 1945-1979
Labour Governments 1974-1979
- 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’
Response to economic challenges: post-war boom, crisis, recovery 1918-39
Recession 1920-1921
- By 1921, 2M workers unemployed
- Centres of olf industries such as South Wales & Tyneside suffered depression
Response to economic challenges: post-war boom, crisis, recovery 1918-39
Problems with traditional industries
- 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
Response to economic challenges: post-war boom, crisis, recovery 1918-39
The Geddes Axe
- 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
Response to economic challenges: post-war boom, crisis, recovery 1918-39
Return to Gold Standard
- 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
Response to economic challenges: post-war boom, crisis, recovery 1918-39
The May Report 1931
- 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
Response to economic challenges: post-war boom, crisis, recovery 1918-39
Careful Reform
- 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
Response to economic challenges: post-war boom, crisis, recovery 1918-39
New Industries
- 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
Creating a Managed Economy 1939-1951
Wartime Economy
- 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
Creating a Managed Economy 1939-1951
Post-war Austerity 1945-1951
- 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
Creating a Managed Economy 1939-1951
Military Expenditure
- 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
Creating a Managed Economy 1939-1951
Debts
- 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
Creating a Managed Economy 1939-1951
Trade Disruption
- Once again, British trade was disrupted/damaged by the war and the devastation it caused
- Trade shrank by 66% in post-war years
Creating a Managed Economy 1939-1951
Britain’s expensive World role
- 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
Creating a Managed Economy 1939-1951
Nationalisation
- 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)
Creating a Managed Economy 1939-1951
Labour’s Economic Record 1945-1952
- 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
The Response to Economic Challenges 1951-1979
1951-1979
- 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
The Response to Economic Challenges 1951-1979
Stop-Go
- 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
The Response to Economic Challenges 1951-1979
Planning Economic Growth: Conservatives
- 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
The Response to Economic Challenges 1951-1979
Planning Economic Growth: Labour
- 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
The Response to Economic Challenges 1951-1979
Sterling
- 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
The Response to Economic Challenges 1951-1979
The 1973 Oil Crisis
- 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
The Response to Economic Challenges 1951-1979
Effects of the Oil Crisis
- 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
The Response to Economic Challenges 1951-1979
IMF loan 1976
- 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)
Change and Challenge in the Workplace 1918-1939
Reasons for & Consequences of Industrial change
- 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
Change and Challenge in the Workplace 1918-1939
New Industries
- 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
Change and Challenge in the Workplace 1918-1939
Changing Industrial Relations 1918-1939
- Industrial relations in old relations often poort
- Millions of days lost to strikes during immediate post-war period
Change and Challenge in the Workplace 1918-1939
Industrial relations 1918-1921
- 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
Change and Challenge in the Workplace 1918-1939
Reasons for Miners’ Strike 1921
- 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
Change and Challenge in the Workplace 1918-1939
The Triple Alliance
- 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
Change and Challenge in the Workplace 1918-1939
Black Friday
- 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
Change and Challenge in the Workplace 1918-1939
The General Strike 1926: Causes
- 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
Change and Challenge in the Workplace 1918-1939
The General Strike 1926
- 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
Change and Challenge in the Workplace 1918-1939
Government Responses to the General Strike 1926
- 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
Change and Challenge in the Workplace 1918-1939
Consequences of the General Strike 1926
- 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
Change and Challenge in the Workplace 1918-1939
Reasons for changing industrial relations 1921-39
- 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
Changing Work Opportunities & Conditions 1939-1979
WWII
- 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)
Changing Work Opportunities & Conditions 1939-1979
Wartime Employment
- 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
Changing Work Opportunities & Conditions 1939-1979
Bevin Boys
- 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
Changing Work Opportunities & Conditions 1939-1979
Full Employment in the 1950s & 1960s
- 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
Changing Work Opportunities & Conditions 1939-1979
Working Conditions
- Low unemployment had direct impact on industrial relations
- Employers had to offer attractive wages & working conditions to maintain workforce
Changing Work Opportunities & Conditions 1939-1979
Employment Opportunities
- 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
Changing Work Opportunities & Conditions 1939-1979
Growth of Unemployment in 1970s
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
War Years 1939-1945 - Wartime Strikes
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
Industrial Relations in the 1950s & 1960s
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
Reasons for increase in Industrial tensions in 1960s
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
Local Strikes
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
The Labour Party
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
‘In Place of Strife’
- 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
Industrial Relations 1939-1979, & reasons for breakdown in 1960s
Impact of ‘In Place of Strife’
- 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
Industrial Relations in the 1970s
1971 Industrial Relations Act
- 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
Industrial Relations in the 1970s
Inflation & Productivity
- 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
Industrial Relations in the 1970s
National Union of Miners and the Miners’ Strikes
- 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
Industrial Relations in the 1970s
Labour Government 1974-1979
- 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
Industrial Relations in the 1970s
End of the Social Contract
- 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
Industrial Relations in the 1970s
Winter of Discontent
- 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
Industrial Relations in the 1970s
Impact of the Winter of Discontent
- 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
Industrial Relations in the 1970s
Post-war industrial unrest to 1979
- 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
