d) TRADE UNIONS - causes of the General Strike 1926 Flashcards
LONG-TERM CAUSES
Return to the gold standard and its implications
Was decided by Chancellor Winston Churchill.
1918 - Cunliffe Committee was established to return Britain to its financial stability following the economic chaos after WWI.
The Committee recommended that to strenghten the pound to pre-war parity with the dollar, the govt had to maintain a balanced budget.
1925 - pound was set to the level it had been prior to 1914.
This led to shortage of currency and deflation - wages fell and unemployment was exacerbated.
Coal industry hit the most - wages were cut by 10% to keep British products competitive.
LONG-TERM CAUSES
Failure in re-capturing international markets
1921-1926 saw wage reductions
British workers saw on average a fall in wages of £12 million weekly, which failed because wage reductions didn’t even see an increase in British competitiveness.
Unemployment rose to one million - the demand for caol was declining.
LONG-TERM CAUSES
Textile industry dispute resolution
Coal miners were encouraged the government would protect their wages after a dispute in the textile industry was resolved by a government commission recommending that textile wages maintained constant - TUC’s confidence was boosted.
SHORT-TERM CAUSES
Red Friday conflict - what happened?
This happened on July 1925 when coal mine owners attempted to abolish the 1924 minimum wage requirement.
This 1924 requirement would designate profits from 87% of all coal to the miners; wages.
When German coal industry returned, our coal pits faced financial strain and so owners looked at cutting wages by 13% and to increase working hours from 7 to 8.
SHORT-TERM CAUSES
Red Friday conflict - what was the Court of Inquiry?
When the miners rejected the cut of wages by 13% and increase in hours, a court of inquiry was proposed in July 1925.
They said that the coal industry needed to be more efficienct and that wages should be agreed before profits were taken but that owners had to reorganise the industry.
Miners AND owners rejected this and the GCTUC ordered an embargo.
SHORT-TERM CAUSES
Red Friday conflict - how did Baldwin and Churchill want to respond?
PM Baldwin wanted to avoid conflict and use negotiation whilst Chancellor Churchill wanted a display of military and govt strength to show who was in control.
B backed down and offered a 9-month govt subsidy of £23 million to support miners’ wages which avoided the immediacy of a wage reduction.
SHORT-TERM CAUSES
Red Friday conflict - Samuel Commission
Baldwin appointed the Samuel Commission to investigate the coal industry in order to provide a long-term solution for the crisis.
They wanted to avoid coal strikes and be prepared for the threat of the NUR, MFGB, TGWU uniting.
SHORT-TERM CAUSES
Red Friday - how did this impact govt?
IT WAS A SUCCESS FOR THE MINERS - they received wages without punishment.
For right-wingers and conservatives, this was a catastrophe that reflected poorly on Stanley Baldwin.
SHORT-TERM CAUSES
How the govt used the 9 months: Economic League and Organisation for the Maintenance of Supplies
This was the most effective anti-strike measures.
They recruited MC and upper-class volunteers who might work in public service in the case of a strike, to keep the country moving.
By Feb 1926, the govt was ready for any industrial militancy.
SHORT-TERM CAUSES
Turning point - April 1926
Owners locked out miners who refused to accept wage reductions, advocated for by the Samuel Commission Report which said wages should be temporarily reduced while industry was reorganised.
The TUC called on the unions to unite and powers were granted to the GCTUC for conducting the dispute and coordinating strike action.
SHORT-TERM CAUSES
Turning point - May 3rd 1926
May - TUC voted in favour of supporting the miners.
The strike was to begin on May 3rd 1926.
Hard-liner anti-TU conservatives meant that Baldwin was unable to back down and risk repeating Red Friday again.
