Industrial Relations 1974-76

Question 1

What problems did Wilson have to deal with regarding the unions when in power march 1974?

Answer 1

-issues with Ind relations act by Heath that the Pentonville’s undermined
-fed 1974 workers strikes that caused power cuts + started 3 day week etc.

Question 2

What did Heath do while in opposition with the TUs?

Answer 2

-1974 negotiated the social contract with TUC
-this was centred on compromise + not confrontation
-TUs sent clear message gov not looking for confrontations

Question 3

What was the social contract?

Answer 3

-would involve a voluntary pay restraint by TUs
-in return gov repeal Heaths Ind relations act + pay board
-agreement quickly reached with NUM

Question 4

What did this new contract enable Wilson to do?

Answer 4

-allowed Wilson end state of emergency + 3 day week

Question 5

What changes did Wilson make to his cabinet?

Answer 5

• left winger Tony Benn in charge of departments of Ind
  -left winger Michael Foot in charge of department of employment

Question 6

Who was Wilson’s new chancellor and what did he do?

Answer 6

-Dennis Healey the new chancellor
-issues two new budgets in march + July to deal with economic crisis without annoying TUs

Question 7

What would the gov do in return for the wage restrictions under the social contract?

Answer 7

-would step in with improved welfare + benefits
-include policies on rent, housing, redistribution of wealth + investment in Ind

Question 8

What was the success of the new outlook on industrial relations under Wilson?

Answer 8

-1974-76 only just survives but long term it fails under pressure of inflation
-begins collapse 1975 when budget increased tax, cut spending + introduced incomes policy
-but resolved the crisis of winter 1973