How successfully did the Labour government deal with industrial relations? Flashcards
What did Wilson become convinced of?
That strikes for higher pay were disrupting production, forcing up labour costs, and contributing to inflation and Britain’s poor export performance
That industrial relations needed to be more strongly regulated if the government’s efforts to control prices and wages were to succeed
What did the unions argue?
That the country’s lack of competitiveness should be blamed on employers and government investment policies
That the government’s attempts to limit wage increases unfairly penalised low-paid workers
That the right of unions to bargain should not be restricted by laws
Why was it difficult for Labour to reform relations?
The unions were their traditional allies and financed the party
Their block votes at conferences could often prove decisive in determining party policy
What did the trade unions exercise and why?
Considerable economic power:
The closed shop requiring workers to join a particular union enhanced union bargaining power
Strikes in nationalised industries could disrupt the country
What was Wilson worried about in 1968?
Press criticism of his failure to tame the unions and by the Conservatives’ announcement of a plan to reform industrial relations
In April 1968 what happened?
Wilson asked Barbara Castle to lead the Ministry of Employment and Productivity and reform industrial relations
What happened in January 1969?
Castle’s proposals, called ‘In Place of Strife’ were published
What were the principal proposals?
Employees would have a legal right to join a trade union
The government could order a ballot to be held before a strike
In an unofficial dispute, the government could order a return to work for a 28-day ‘cooling-off’ period
Disputes between unions could be referred to an industrial commission whose decision would be legally binding
There would be financial penalties if the commission was not obeyed
Workers who were unfairly dismissed would be entitled to compensation or to get their jobs back
What did one trade union argue?
That legal sanctions would ‘introduce the taint of criminality into industrial relations’
How many MPs rebelled?
50
What caused Wilson to back down?
Resistance within the party, the TUC, and the Cabinet led by Callaghan
What formula was devised?
The TUC gave a ‘solemn and binding undertaking’ that it would monitor strikes and disputes and offer ‘considered opinion and advice’
What did the failure of ‘In Place of Strife’ convince many of?
That trade unions had too much power and their resistance to change was a major obstacle to economic progress
What happened to the largest and most powerful unions?
Lost members:
The National Union of Railwaymen = fell from 334k in 1960 to 198k in 1970
National Union of Mineworkers = fell from 586k in 1960 to 279k in 1970
What was there an increase in?
The membership of unions representing workers in the expanding public sector of government administration, health, and teaching:
Science and Finance: rose from 25k in 1960 to 222k in 1970
