Britain Transformed- Unit 1 Flashcards
1
Q
Unit 1- What were some of the factors that resulted in Britain being economically damaged at the end of WWI?
A
- British government did not expect the war to go on for so long, commended a lot of the British resources and wiped out gold reserves and still borrowed heavily(Especially from the US)
- Britain had been cut off from many exports due to German U boats, lead to foreign buyers looking elsewhere. eg. US steel was favoured due to superior quality and price.
- By 1918, 750,000 British men had been lost to the war, who were essential to its economic output.
- 3.25 Billion the total financial cost.
2
Q
Why was Britain in a post war boom?
What caused the end of the boom?
A
- Individuals and businesses had been unable to spend due to the wartime restrictions such as rationing. Therefore, there was a significant investment in the economy, especially bonds.
-Lots of people bought into the London Stock Market, the most in British history. Investment in new shares up by 65 million, now 384 million in 1920. - The boom was ended due to businesses not able to keep up with demand, therefore increasing prices drastically, which lead to less spending. It was also due to the inflation that was caused due to mass spending.
3
Q
When was the recession, how was it caused and what was its effects?
A
When- 1920-21
Recession was followed by the boom and was one of the most severe slump Britain had experienced before 1929.
Caused by loss of export trade- Global economy had been transformed by the war, no longer dominated by Britain. eg. US steel.
Unemployment increased to 12% of adult-working population.
By 1921, 2m workers were unemployed and places like South Wales who had traditional industries were depressed.
Cost of living increased by 25%.
4
Q
What was the other causes of the recession 1919?
A
Under-investment- Hardly any investment in traditional industries.
Industrial relations- In 1919, Lloyd George had paid off British workers to not strike with good pay and generous hours.
Deflation- Gov cut spending by 75% between 1918 and 1920. Due to government wanting to return the value of the pound to pre-war levels they raised interest to 7%. Drained available spending money from the economy.
5
Q
Who was PM 1918-22 and what party did he belong to?
A
David Lloyd George
Liberals
6
Q
Who was PM 1922-23 and what party did he belong to?
A
-Andrew Bonar Law
- Conservatives
7
Q
Who was PM in the years 1923-24 and what party did he belong to?
A
- Stanley Baldwin
- Conservative
8
Q
Who was PM in the year 1924 and what party did he belong to?
A
- Ramsey Macdonald (First time round)
- Labour
9
Q
Who was PM in the years 1924-29 and what party did he belong to?
A
- Stanley Baldwin
- Conservative
10
Q
Who was PM in the years 1929-31 and what party did he belong to?
A
- Ramsey Macdonald(2nd time)
- Labour
11
Q
What was the status of the Liberal Party in 1918?
A
- Liberals were the dominant party previously.
- Believed in free trade and limited government intervention
- However, the decline of the liberals were near due to the representation of the peoples act, the party splitting between David Asquith and Lloyd George and scandals.
12
Q
What was the status of the Labour Party in 1918?
A
- Labour Party was growing and had 1 million members by 1906.
- Supported by trade unions, it battled for workers rights and the representation of the people’s act lead to votes tripling in size to 21 million
13
Q
What was the status of the Conservative Party in 1918?
A
- Conservative Party had been associated with the upper classes in the 19th century.
- After the representation of the peoples act 1918 it meant the Conservatives needed to expand their voter base and started to attract middle classes and even some working classes.
- Lots of votes came from property owning women
14
Q
Why did the liberal party decline?
A
- Lloyd George honours scandal in 1922 tarnished his reputation. Was done discreetly and given to people with criminal convictions. Needed to raise funds for the liberal party.
- George’s business with Turkey led to the Conservative party’s chance to strike. In 1922 the Conservatives decided to leave the coalition at the Carlton Club and led to a disaster election for the liberals.
15
Q
Who were the Prime Ministers from 1918-1931, what party and reason for decline?
A
- 1918-22 David Lloyd George. Liberal/Cons coalition. Fell due to conservatives withdrawal “Carlton Club”
-1922-23 Andrew Bonar Law. Conservative. Retired due to illness. - 1923-24 Stanley Baldwin. Conservative. Lost vote of confidence.
- 1924-1924 Ramsey Macdonald. Labour. Lost election.
- 1924-29 Stanley Baldwin. Lost election.
-1929-31 Ramsey Macdonald. Party division over economic policy. Carried on with national government.
16
Q
All PMs 1931-45, party and reason for decline?
A
- Ramsey Macdonald 1931-35, National Gov, Retired due to ill health.
- Stanley Baldwin. National Gov 1935-37. Retired.
- Neville Chamberlin. National gov 1937-40. Resigned.
- Winston Churchill. National gov 1940-45. Lost election.
17
Q
All PMs 1945-79, party and reason for their decline.
A
- Clement Atlee 1945-51, Labour, divided party and social changes.
- Winston Churchill, 1951-55, very passive, old and had lost confidence of Conservative party.
- Anthony Edan 1955-57, Conservative, foreign policy disaster forced him out.
- Harold Macmillan 1957-63, Conservative, due to scandals in his party eg. Profumo and ill health.
- Alec Douglas-Home 1963-64, Conservative, out of touch with voters.
- Harold Wilson, 1964-70, Labour, problems with trade unions and suspicion of being overthrown.
- Edward Heath 1970-74, Conservative, trade union problems.
- Harold Wilson 1974-1976, Labour, ill health and party divide.
- James Callaghan, 1976-79, Labour, Loss to Thatcher and trade union issues.
18
Q
What was Macdonald and the economies situation during his first term?
What was Macdonald’s aim for Labour?
What was the unemployment statistics?
A
- In 1924, Macdonald had criticised Baldwin for lacking effort in bringing unemployment down however Macdonald himself didn’t manage to do this and actually increased unemployment.
- Macdonald didn’t have enough parliamentary votes to introduce radical economic changes such as increase government spending and taxes. However he was reluctant to do so due to him wanting labour to appease all those on the political spectrum and not a party of radical socialist ideas.
- Between 1921 and 1924 unemployment declined by 12% to 6.5% but climbed by 8% during Macdonald’s reign in 1925. However a positive of Macdonald is inflation fell by 15% to under 1%.
19
Q
What was the effect of Churchill’s decision under Baldwin to leave the gold standard?
Why did he reintroduce Britain to the gold standard and when?
What was the exchange rate between the pound and dollar in 1925?
When did the pound leave the gold standard?
A
- The gold standard for the pound mean it was extremely strong Eg. £1=$4.85 in 1925.
- This meant UK exports were extremely expensive and manufacturers struggled.
- Churchill’s reintroduction to the gold standard in 1925 doomed Britain for economic failure.
- He did it for two reasons:
1. The pound was decreasing in value
2. Believed the economy could not flourish if the government just made things easier for manufacturers. - Interest rates had to remain high to make the pound almost 5 times were attractive for investors. It did lead to foreign investors putting money in the banks however it led to less borrowing which discouraged UK businesses from expanding and taking on more workers.
- Bank of England were forced to concede in 1931 and left the gold standard.
20
Q
How was Britain’s depression in 1929-34 caused?
What was the effect on Britain’s trade?
How did this affect unemployment?
A
- Britain’s depression came due to the Wall Street Crash and lasted from 1929-34.
- The US had overtaken Britain as the largest importer of overseas goods and had a profound effect on almost every country in Europe.
- Global trade contracted by 66% over the next 5 years and Britain’s exports fell by 50%.
- The US were worth 1/3 of Britain’s exports and industries such as coal, dock work and ship building suffered.
- Unemployment in Britain increased to 2.5 million in 1930. Increased unemployment led to increasing pressures from the government as tax revenues decreased and dependency on the state increased.
21
Q
What was the Labour government’s response to the depression in 1929?
What happened to the value of the Pound?
A
- Led to debate in the labour government. Minister Snowden argued that unemployment relief should come from taxing the wealthy and corporate profits. However, as UK businesses profits decreased it meant wealthy people were anxious to disclose their wealth.
- John Maynard Keynes suggested public works such as road buildings to create jobs but Snowden refused. This was because he knew bankers in New York and London had little patience for more government spending. The only thing the government continued to spend on was the defence industry.
- During the summer of 1931, there was rumours of the government budget being unbalanced which led to US bankers panic selling the pound which led to devaluation of the pound.
- The government proceeded to cut unemployment assistance by 10%.
-
22
Q
What was the banks problem with Macdonald’s government during 1929-31?
A
- The Labour government struggled to finance its spending and by 1931 came under intense pressure to limit the amount spent on social welfare.
- The banks had huge power over Britain as they held large amounts of the pound, especially the US due to high borrowing from Britain during WWI.
- However, these banks could suffer significantly if the pound decreased in value so high government borrowing and tax scared them as it would devalue the pound.
23
Q
What was The National Government response to the depression?
A
- Implemented public spending cuts which had caused the previous government’s downfall. Eg. Cut public sectors worker pay by 10% and introduced the means test.
- Did try to provide relief in The Special Areas Act to help those most impacted.
23
Q
What was The Special Areas Act and when was it?
A
- 1934
- It was an act that identified Tyneside and South Wales. Places that needed government assistance, but only a trickle of investment came to them.
24
What happened to political views during the depression and what was the most famous march and when was it?
- The desperation of workers and their families had led to The British Communist Party establishing the National Unemployed Workers' Movement.
- The movement, which had been boycotted by the Labour Party due to
communist links, had organised a number of marches in protest.
- Most famous march was The Jarrow March in 1936, yet the marchers came back empty handed. Showed how the North East had been neglected by the wealthier South.
25
When was the first labour government and why did the party face backlash at first?
- First government was in 1924 led by Ramsey MacDonald however was a minority government.
- Was seen as increasingly alarming by Conservative newspapers like The Times and feared socialist revolution.
- The party was committed to act moderately to ease fears.
- MacDonald when he took power was forced to make harsh economic decisions that affected the poorest voters and had to manage threat of industrial action.
- MacDonald was criticised by Labour supporters for not being radical enough as they were a minority government however he could not do anything too radical as they relied on liberal support.
26
Why did MacDonald's government collapse and when?
- 1924
- Campbell and Zinoviev Scandel
- It was due to the decision of his government to drop the charges of incitement to mutiny of a socialist newspaper.
- The article published broke the law by demanding that soldiers turn on their superiors which was outrageous at the time.
- This led to backlash from all 3 parties as MacDonald was accused of having secret communist sympathies but it was just an attempt to improve relations with the USSR.
- MacDonald was forced to resign and call an election.
- Daily Mail did everything to thwart the support as they claimed a Russian communist revolutionary Zinoviev to the British communist party had been discovered.
27
How did the Conservatives and Baldwin present themselves after the 1924 election?
- Won the election in 1924 and presented themselves as an alternative to the Labour parties "threat of socialism".
- However, Baldwin presented himself as a moderate politician who could appeal to all classes.
28
What were some examples Churchill's government ministers and what could they do during wartime?
What was the difference with peacetime and wartime in terms of production?
- Ministry of Food, Aircraft production and supply.
- All ministries were given extensive legal powers to intervene and if necessary, take over essential war industries.
- The most fundamental difference between peacetime and wartime economies was the role of market forces.
- In peacetime, production was determined by prices of goods and profits while wartime production levels were decided by the government.
- The managed economy was maintained by the post-war Labour government particularly through the nationalisation of key industries.
29
Why did military expenditure increase so much from 1940?
How much more aircrafts and tanks did Britain produce?
What did military expenditure rise to in terms of percentage of national income?
- In 1940, Britain had been viewed as losing the war, the growth in state intervention resulted in a huge increase in war production and military expenditure.
- Britain produced 32,000 more aircrafts from 1940 to 1944 and from 6,000 to 8,000 tanks per year.
- Military expenditure rose to over 50% of national income by 1941.
30
Who gave Britain considerable economic support during 1939-41 and what was the act in 1939?
- The USA offered Britain considerable economic support between 1939-41 even thought USA was neutral.
- The American Neutrality Act 1939 initially allowed Britain to buy supplies with cash only however by 1940 all of Britain's cash and gold reserves were spent.
31
What act did Churchill organise to help British economic aid?
What were "liberty ships" and why were they important for Britain?
- Churchill organised a credit arrangement, known as the Lend-Lease agreement. America would supply Britain but it would all be paid after the war was over.
- Equally as important were American "Liberty ships" that supplied Britain with oil, coal, timber etc. These gave Britain an economic lifeline as British merchants could not import goods due to German U-Boats.
32
How much debt had Britain accumulated after WWI.
- What was the state of the British economy(Had it expanded or contracted) and what were the factors for this?
- Had accumulated 4 billion of debt and a mounting interest of 70 million every day.
- The economy had been seriously damaged. It had contracted by a quarter and trade had declined by two thirds.
- This was due to German U-boats, countries who previously bought British exports were devastated by the war and US wartime aid had led them to dominate markets eg. Hershey's now competed with Cadburys.
33
What was the Marshall Plan and when was it?
How much did Britain receive and what did they use the funds for?
What were some international commitments Britain were still involved in?
Did Britain invest poorly in its infrastructure?
- The US proposed offering extensive loans to help war ravaged European countries falling to communism.
- Britain were one of the biggest recipients and received 2.7 billion.
- Britain failed to use it for reinvestment in industry but for general repayments domestically and overseas.
- The end of the war brought a reduction in international commitments but not completely as countries such as Ghana, Malaysia and Kenya were still fighting.
- By 1950, even after the establishment of the NHS, Britain's investment in infrastructure was only 9% as a percentage of GDP compared to other countries like Germany being at 20% and Britain was being overtaken economically.
34
What was the effect of nationalisation for Atlee's government 1945?
What industries did they nationalise?
What were some of the acts that did this?
What was the problem with nationalisation?
- They nationalised industries such as coal, power, railways ship building and banking.
- It was hoped that nationalisation would achieve full employment as nationalised jobs would not be shed during economic downturn.
- Some acts that did thsi was The Coal Industry Nationalisation Act 1946, The Iron and Steel Act 1949 and The Gas Act 1948.
- However, nationalisation cost £2 billion which left little money for important modernisation which led to later economic issues.
35
Did the Labour government 1945-51 achieve its goals and how was the economy effected?
- Labours first priority, full employment was achieved in a four-year period between 1947 and 1951.
- The total unemployment level was below 300,000.
- Britain began to boost its world trade as percentage of world trade dominated by Britain went from 17% to 20%. Exports grew by nearly 80% however it had been so low during the war.
- The economy grew by 4% each year after 1948.
36
Were the Conservatives 1951-64 successful in achieving their aims and what did they do?
What did unemployment levels look like?
- In 1951 the Conservatives took back power through the switch of M/C voters.
- The Conservatives adopted a more left-wing approach and prioritised:
+ A commitment to full employment and quickly adopted Keynesian economics through public-works schemes. Throughout this period, there was no mass unemployment and reached lows of 300,000.
+ A mixed economy. The Conservatives had pledged not to increase nationalisation, but also not to decrease it.
37
What is "stop go" economics and what was its effect for the Conservatives during 1951-64?
Why did the Conservatives have to implement this policy?
- This period was a time of growth in consumerism and spending was constantly increasing.
- The Conservatives relaxed laws around consumer credit and borrowing and had to implement stop go economics.
- Stop Go economics is decreasing interest rates and tax during a recession or slow economic growth and vice versa.
- Damaged the economy because as the economy started to grow it would be limited again which discouraged foreign investment.
38
Why was the British government alarmed and what was Britain's economy looking like compared to other countries during 1951-64?
- Despite the raising living standards, the comparative difference and output performance was alarming for the British government.
- Japan had recovered from the war and had experienced an economic growth of 12% while Britain had only achieved 4% in 1960.
39
What was MacMillan's corporatism and what organisations did he set up and in what year?
- In 1962 he decided to experiment with corporatism. This was uniting labour, management and government economic goals could be achieved. He set up:
- NEDDY(The National Development Council and Office). This was an institution where management and trade unions could discuss the development of the economy and co-operate with one another. Did not offer any legal control over either and the government hoped both would come to a voluntary agreement.
- NICKY(The National Incomes Commission). Its role was to give guidance to employers and unions on what the government considered reasonable price increases however could not enforce any decisions. Unions often ignored NICKY's call for wage restraint as union leaders were mindful that members wanted better pay and living standards. The prosperity of consumerism in the 1960s prevented union members to acknowledge NICKY.
-
40
What were some economic problems the government were facing in 1964?
- Unemployment grew to 878,000, its highest since before the war.
- Increased consumer spending increased demand for foreign goods which caused a balance of payments issue which threatened the value of the pound.
- The government borrowed 714 million from the IMF due to refusal to devalue the pound.
41
What was The Price and Incomes Act and when was it?
- 1966
- Gave the government legal power to limit pay claims.
- Forced a statutory wage freeze for six months to curb inflation.
42
What was the IRC?
What was its most famous merger and when?
- Industrial Reorganisation Corporation, under Wilson's government.
- Promoted efficient practices in industry and offered loans to companies who wanted to implement new efficiency measures.
- Also promoted mergers however most of them ended in failure. The biggest was British Leyland in 1968 and the IMF offered 25 million to fund the merger but failed.
43
When and why did Wilson devalue the pound?
What was the pound devalued to in terms of dollar?
- 1967
- Wilson was forced to admit devaluation would help ease deep seated problems.
- The pound would now be valued at $2.40, a 14% decrease.
- He claimed the British public would be unaffected and Wilson's chancellor, Callaghan resign in protest.
44
What were Heath's economic goals during his reign 1970-74 and how did they conform or differ to Wilson's?
- He intended to reject corporatism and embrace free market ideas.
- One of the first organisations to be axed was IRC.
- Heath believed, like Wilson that modern techniques and practices in industry would revive the economy.
- Unlike Wilson, Heath argued it was the role of private businesses to provide modernisation and not to be highly imposed by the state.
45
Why did Heath introduce spending cuts and what were some examples of them?
- Believed that cuts in spending and reducing the tax burden would stimulate economic growth.
- Heath believed that the natural spirit of entrepreneur would result from the cuts.
- Cut free school milk and subsides in council houses.
- He abolished the NBPI which controlled businesses price and incomes.
46
What were some economic problems Heath did not count on?
- Mounting inflation across the world which slowed the economic boom.
- Britain's own problem with inflation, which was at 15%, 18 months into Heath's reign.
- Unemployment rose from 2% to 6% by the early 1970s.
47
When and what did Anthony Barber do to stimulate growth?
What was the outcome and what crisis did it lead to?
How did Barber try to solve this and what did that lead to?
- In 1972, Anthony Barber attempted a dash for growth as he implemented massive tax cuts and forecasts of low borrowing.
- The result was a massive spike in inflation, which was followed soon by the 1973 Oil Crisis.
- Barber tried to cool the economy down with public sector cuts, which led to union unrest and confrontation with the miners.
48
What was the biggest issue for the Labour government 1974-79?
- Inflation
- It hit over 30% by 1975.
- This was partly due to unions refusing to listen to the government asking to hold off on wage increases. This was because inflation led to deteriorating living conditions which could be countered by increasing wages.
- By 1975, Labour Chancellor Healey begun to challenge Labour's commitment to full employment as he believed pumping money into the economy to stimulate employment was pointless.
49
What and when was the IMF Loan?
- 1976
- At this time, confidence in British banks can declined due to mounting inflation and likelihood of strikes.
- This meant the value of the pound slumped and forced the government to take an IMF loan in which the pound had decreased by 20%.
- The IMF loaned Britain a little under 4 billion, but the loan can conditions.
- Britain had to prove it could repay the loan, and forced to agree to 3 billion worth of spending cuts.
50
What were the opposition to the IMF Loan?
- Healey was called a traitor by the left of the party which was led by Tony Benn.
- They argued the welfare state needed to be protected by:
-Using trade barriers to keep out foreign imports.
- Making Britain increasingly more self-sufficient by government investment and nationalisation.
- Withdrawal from the EEC
51
Who was massive on monetarism and what were some features of it?
- Thatcher and Keith Joseph.
- Free market and neo-liberal economics meant:
- A massive reduction in the role of the economy- Privatisation of all state-owned industries
- Deregulation of industries that struggled with excessive bureaucracy.
- Promotion of free trade
52
What were the reasons for industrial change after WWI?
What was the industry dominated by and what were some new developments?
- Industry had not really moved on since Victorian times, it was still overwhelming heavy industry which in the past made Britain wealthy however now it was associated with old machinery, old methods of production, underproduction and an inability to keep up with foreign competitors such as the US.
- There were however, newer industries in the midlands and Southeast. The most notable was motor vehicles, mainly adopted mass production techniques such as the assembly line.
- There was also more light engineering factories producing consumer goods like household items.
53
What was the belief of "Two England's" in terms of industry after WWI?
What industries saw an increase and a decrease in workforce?
- Two England's which differentiated old and new industries.
- Cotton, mining and ship building each lost 1/3 of their workforce.
- Those in the building industry increased workforce by 33% and electrical appliances increase by over 2 and a half times.
- Most people stilled worked in old industries where industrial relations could be a significant problem.
54
What were industrial relations like 1918-21?
What was the situation in terms of days lost to strikes and state of workforce in the years 1919,20 and 21?
- During WWI, Lloyd George negotiated with Trade Unions to keep strikes to a minimum.
- However, there still was strikes and by 1918 armistice there was a massive unrest not just with workers but soldiers and even policemen.
- There had been 32 million days lost to strikes in 1919 but by 1920 there was 25 million due to factories taking on large numbers with good pay.
- By 1921, unemployment soared and workers saw wages slump causing 84 million days lost to strikes.
55
When was the First Miners Strike and what was its effect?
-1921
- The Miners Federation of Great Britain went on strike with over 900,000 members.
- This was because miners had enjoyed government control of mines however when returned pit owners slashed wages, poorer working conditions and longer hours.
- When union leaders refused to accept pay cuts, pit owners locked out their workers on 1 April and the government used the Emergency Powers Act to send troops to South Wales.
56
What and when was Black Friday?
How much was pay cut?
- 1921
- The miners attempt to go on strike was sabotaged as the "Triple alliance" of Miners, railway workers and dock workers abandoned them.
- The miner leaders had made a crucial mistake in not including them in decision making which made them reluctant to strike and consequences of their workers.
- Miners were forced to accept a 20% cut in wages.
- The decision to stay in the Gold Standard by Baldwin led to miners profits depleting
57
What happened at The General Strike and when was it?
- 1926
- Government feared a general strike, so paid mine owners a subsidy to keep wages stable till 1926.
- The mine owners knowing subsidies were coming to an end told miners they had to accept cuts.
- 1 million miners were locked out of their work for refusing to accept the 13.5% cuts.
58
What was the governments response to The General Strike?
What was the effect on the mining industry?
- Government were prepared for the strike and created its own propaganda paper "The British Gazette" and used the BBC to promote government position.
- The Labour government distanced itself from the TUC and only authorised those with common interests of the miners.
- The Organisation for the Maintenance of Supplies, a group of volunteers picked up the work the strikers refused to do.
- The mining industry lost 30% of its jobs as Baldwin could not guarantee jobs.
- A new Trade Disputes Act 1927 prevented sympathetic strikes.
59
What was the effect of the depression on Trade Unions?
- Union activity significantly weakened by the aftermath of The General Strike.
- Mass unemployment led to depleted revenues and membership declined by almost half to 4.5 million in 1932.
60
What was the effect of WWII on changing employment opportunities?
- The movement to war production brought full employment and employed large numbers of women.
- By 1944, 33% of the civilian population were involved in war work, including 7 million women.
- Not only did unemployment disappear, but the working conditions, wages and benefits that unions could improve increased from the 1930s.
61
Who was Ernest Bevin and what was "Bevin Boys"?
- Ernest Bevin was the Minister of Labour during WWII.
- One controversial policy was that 10% of young men would be used for the mines rather than the armed forces. The mines had lost 36,000 of its workforce was replaced by "Bevin Boys".
- Wages increased but so did hours.
62
How committed were governments after 1940 to unemployment?
How much did unemployment rise too between 1948 and 1970?
Why did employees have power and what did firms need to do?
- Between the 1940s and 70s both parties maintained a commitment to full employment.
- Unemployment rose to only 2% in only 8 years between 1948 and 1970.
- Employers needed to keep skilled workers and had to use attractive wages to do this.
- With little worry of unemployment, workers would often become idle and more likely to leave their job.
- For this reason, employers offered benefits to employees such as cheaper canteen food.
63
How many people worked directly for motor vehicles in factories?
What was the problem with the work and what did employers do to fix this?
What was the shift in employment status and what happened to Labour's main priority?
- By 1956, over 100,000 worked in directly for motor vehicles.
- The problem was the tedious work in factories. Employees were often doing repetitive work and was hard to motivate.
- The only way to improve it was pay as it doubled for men from £8.30 a week in 1951 to 15.35 a decade later.
- People could now buy more with their money, as mass production and technology.
- As full employment as a priority faded in 1972, unemployment rose to 1 million and faced the new reality of joblessness.
- By 1976, Labour concorded that the opportunities presented during and after WWII had faded and was no longer possible.
65
How was industrial relations during the war years?
Who was the main man during this period?
What did he introduce?
Were workers prospering?
- In 1940, due to Labour's growing support Churchill formed the national government.
- From a trade union perspective, Ernest Bevin was the most important new member and through the Emergency Defence Act 1939 he had almost complete control over the British workforce. He was seen as a safe and respected member.
- He fostered joint production between businesses to improve efficiency and offered piece rate to more efficient workers.
- Skilled workers and union shop stewards became powerful due to shortage in labour and demand for quality work.
66
Who was Ernest Bevin?
- Was a W/C Labour politician and trade unionist. He was on the right of the labour party and was suspicious of communism.
67
Were the war years completely in harmony in terms of industrial relations?
What Act was introduced?
- The war created long antisocial hours, lack of recognition and changeable pay which led to numerous strikes.
- In 1940, the government introduced Defence Regulations 58AA banning strikes and lockouts.
68
Why did the miners go on strike during wartime and when?
How many strikes were there during wartime?
When did the Welsh Miners go on strike and what did they realise?
- In 1942, miners went on strike in Kent illegally.
- The government took over the mines and prosecuted 1050 miners. The other miners in pits stopped too, forcing the Home Secretary to drop the charges and increase wages.
- Younger miners(Bevin Boys) often went on strikes due to the lower pay they received compared to older miners and overall there was 514 strikes between 1939-44.
- In Spring 1944, 100,000 Welsh Miners went on strike which led to an increase from £5 a day to £6.10. Showed that wartime had presented opportunities for better conditions.
69
What were industrial relations like during 1945-51 and what was the state of trade unions?
- After the war, many trade unionists found themselves in government bodies which meant they had more access to decision making in which they had never had in their history and views were heard.
- In 1939, 12 unionists sat on government bodies but by 1949 there sat 60.
- Labour repealed The Trade Disputes Act 1927 imposed after the general strike.
70
What was the Industrial Charter and when?
- 1947
- Conservatives carried out a review of their policies.
- It was a clear indication that the party recognised that growing union membership desired a welfare state and fair treatment at work.
- The charter expressed a desire by the party to see large unions democratically represented the will of their members.
- It ultimately took a more paternalistic approach to running businesses and caring for workers thoughts and feelings to prevent strike action.
71
What were industrial relations like during 1951-64?
What were the issues with trade union leadership?
- Went from under 9,300,000 in 1955 to almost 10,000,000 by 1965.
- The difference in lifestyles form trade union members such as Vic Feather and Len Murray, who lived affluent, comfortable lives though they did work long hours for the better of their members.
- Another difference was expectations. Men like Feather and Murray had started their careers in the 30s through the depression and were not affected by consumer materialism while younger members wanted to partake in the consumer boom and wanted wage rises.
- This meant aspirations were similar to shop stewards which led to a much more aggressive and confrontational trade union in the 60s and 70s.
72
What happened to trade unions and strike action in the 1950s and 60s?
- Unions were organised bodies with leaders, electoral system and members voting on issues and went on mostly official strikes.
- By the 1960s, the number of official and unofficial(known as wildcat) strikes were rising and by 1970, 10 million working days were lost to strike action.
- Walkouts could happen without aligning with the unions goals.
73
Why were example of deuteriation of industrial relations during 1951-64?
Why was there so much resentment between TUC and Middle class and Conservatives?
- Relations between TUC and Conservatives deteriorated due to strikes rising to 2,521 involving over 1.1 million workers.
- The unions often blamed the middle class observers and newspapers such as The Times and Britain's relatively weak economic performance.
- Trade unions became a convenient excuse for deeper economic issues and were resented by the middle class as they believed they were obstructive and too powerful.
74
What was "I'm Alright Jack" and when was it?
- 1959
- Was the most successful movie of the year even watched by the Queen and PM MacMillan.
- It satirised British industrial relations and portrayed the shop steward played by Peter Sellers as an incompetent bully.
- The fact the film was so popular suggests it was relatable to workers.
75
What were industrial relations like during 1964-69?
- In 1964, thirteen years of Conservative rule was wiped away.
- Harold Wilson aimed to improve industrial relations
- Wilson's image of beer drinking and pipe smoking was there to be popular for unions but by the end of the decade he was proposing legislation that would curb union power more than any other Labour government.
75
What were wildcat strikes and when did they happen?
How many working days were lost?
- Throughout the 1960s
- Unofficial strikes that were increasing steadily
- Wilson was reluctant to intervene but the image of the shop steward started to become more and more accepted.
- It was a serious political problem for Labour as they wanted to keep good industrial relations.
- The TUC was unable to keep control of their members as 90% of total strikes were unofficial.
- An average of 3 million working days were lost each year to strikes throughout the 1960s but in 1968 it leapt to 4.7 million.
76
What was The Girling Brake strike and when?
- 1968
- It was a wildcat strike began at the Girling Brake company due to another worker using an oil pump.
- The strike stopped the manufacture of brakes in the car industry temporarily and had to lay off 5,000 workers and businesses losing millions of pounds of orders.
77
What were some of the causes of militancy?
- It was less to do with men satirised by "I'm Alright Jack" in 1949 but it was more the creeping inflation throughout the 1960s.
- The growth in affluence only benefited those who had constant inflation pay increases such as the miners.
- The prosperity of the 1950s and early 1960s were sliding away and it seemed to be going in reverse.
78
What was "In Place of Strife" and when?
- 1969
- The Conservatives led by Heath had offered union reform in 1968 so Wilson knew he needed to act and stole their thunder.
- Barbara Castle was tasked with the job in preventing wildcat strikes and limiting union power. She proposed a white paper called "In Place of Strife" which proposed:
- The government could order a strike ballot before official industrial action took place if deemed to threaten the economy. Castle knew that the majority of workers would prefer to remain at work and would reduce the power of union bosses.
- Workers in unofficial strikes led by militant shop stewards could be ordered back to work for 28 days for a "cooling off" period.
- When unions fought one another in the workplace the dispute would go to an industrial board to decide.
- A strike that broke these rules could be declared illegal and the unions could face stiff fines and members could be imprisoned.
79
What were industrial relations like 1970-74(Simple summary)?
- Wilson with the Industrial Relations Act 1971 attempted to introduce the measures Castle had proposed however in a time of soaring inflation it proved ineffective as the TUC refused to comply.
- Illegal striking shop stewards could go to prison but it was the miners that brought Wilson down.
80
What were the causes of the miners strike 1972?
- Miners were constantly underpaid and undervalued throughout the 1960s; their wages were 3% lower than other manufacturing industries and the expectations of nationalisation had not been fulfilled.
- In a time of improved living standards, cars, holidays etc the miners felt excluded from the nations prosperity. Ricing prices deuterated miners living standards.
- Throughout the 1960s the coal industry had shrunk and 400 pits and 420,000 miners had been laid off.
- However in 1970 the union voted for a 33% pay increase which would make the miners wage go on par with other industrial relations. Just over 50% decided to go on strike but they needed 2/3.
- The Strike began in 1972.
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81
What were "flying pickets" and who was the union member that led it?
What it successful?
- Arthur Scargill
- He developed a new tactic of "flying pickets" using a group of 1,000 miners to blockade power stations and coal depots. In 1972 this reduced electricity by 25%.
- Scargill had 40,000 miners picketing 500 separate sites across the country and Heath feared direct confrontation would lead to death and violence.
- Unlike the Baldwin government in 1926, Heath had no available resources to beat it which led to a huge 27% pay increase.
82
Why was there more of a reliance on miners in 1973?
What did the strikes lead to across Britain?
What was Heath's slogan and what was he proposing to voters?
- The Oil Crisis of 1973 meant reliance on coal had increased so members saw a way to capitalise on this.
- The strikes led to power cuts where the government had to declare a state of emergency and a 3 day working week from Jan-March 1974.
- In 1974, Heath went to the polls with the slogan "Who Governs Britain?" asking voters to back to him against the unions.
83
What were industrial relations like in 1974-79?
- The new Labour government repealed Heath's industrial Relations Acts and negotiated a new policy with the unions called "The Social Contract".
- It was created as a voluntary code to prevent the need for formal incomes policy but was assumed that union leaders could persuade their members to accept pay restraint.
- Union bosses were becoming less influential and it was difficult to ask members only for a 6% increase during a time of 27% inflation.
- In 1975, the TUC agreed to pay increases of £6 a week to workers earning less than £8,500 but later did not comply ending the social contract.
- Due to ill health, Heath stepped down and Callaghan succeeded him and the next general election seemed good as the trade unions complied.
84
What was "The Winter of Discontent" and when?
- 1978
- Callaghan made tackling inflation a much more serious priority than previous labour governments.
- Dennis Healey(Callaghan's chancellor) believed the social contact had run its course and believed free bargaining should be introduced but warned of greedy trade unions.
- The following year he was forced to backtrack due to soaring inflation and enforced a strict 5% pay increase for low-paid workers which led to continuous strike action in the winter which the government were powerless to prevent.
85
What were Ford's pay negotiations and when?
- Ford attempted to enforce the governments pay policy in response to 15,000 auto workers going on strike previously.
- Ford offered a pay rise of 17% which incurred government penalties bit also showed the social contract was unenforceable.
86
What was the Haulage Strike?
- The government had no way of enforcing pay restraint and the unions seized the opportunity for pay increases.
- Lorry drivers wanted a 40% wage increase which Callaghan did not accept which led to the blockade of petrol stations and the coldest winter in decades.
87
What was the Public Sector Strike and when?
- Britain's public sector were next.
- In 1979, millions of low paid public sector workers went on strike such as The National Union of Public Employees.
- Public sector unions began to lose control of their members who declared strikes in vital areas such as 999 employees.
- It was reported cancer patients had to use the London Underground to get to hospitals.
- The Government offered a 11% increase for those in the public sector, they attempted to negotiate with unions, but realised they lost control of their members.
88
What were the shifting public attitudes in the late 1970s towards trade unions?
- The main consequence of the winter of discontent was a dramatic shift in public attitudes against the the TUC.
- In 1969, 60% of people had a positive view on trade unions while by 1979 only 20% did.
- This paved the way for Thatcher.
