Unit 7: Why did the General Strike fail to influence the Conservative government in 1926? Flashcards
Why was coal a long term reason for the failure of the General Strike?
To recapture international markets (1921-6) and mitigate their loss, business owners (especially coal mine owners) cut wages- failed to increase British competitiveness, reduced home demand for products, increased unemployment.
Increased competition from German and American mines which kept international coal prices low- temporarily abated 1923-5 when French seized the Ruhr and American mines went on strike.
Why was the gold standard a long term reason for the failure of the General Strike?
1921-5: stagnant British trade, decline of coal demand, 1 million unemployed- worsened by gold standard return which was decided by Churchill to stabilise the value of the currency and avoid inflation.
1918: Cunliffe Committee on currency and foreign exchange recommended the gold standard return by maintaining a balanced budget, limit the issue of bank notes, and reducing national debt.
1925: Pound value returned to 1914 level, $4.86.
Yet gold standard created deflation causing shortage of currency which caused decreased wages, increased unemployment. Although the Pound was stronger, British export became more expensive causing further wage cuts highlighting how the British economy was too weak to support a strong pound.
Large impact on coal industry- wages cut by 10% to keep British products competitive.
Coal miners thought their wages would be protected by the government following the successful dispute in the textile industry where it was recommended that textile wages remained constant.
Describe the coal conflict of July 1925 (one immediate cause of the General Strike).
Between trade unions, employers and the government.
Under financial pressure in June 1925, coal miners attempted to abolish the 1924 agreement which specified profits on 87% of coal which would constitute miners’ wages and owners take the remaining.
But owners were looking to increase working hours from 7 to 8 hours, cut wages when French pulled out of the Ruhr and German competition returned, causing financial strain- the miners rejected this.
What was Red Friday?
Court enquiry in July reported that for the coal industry to be more efficient, have agreed wages before profits were taken- it needed to be reorganised. This was rejected by miners and owners.
The General Council of the TUC ordered an embargo to halt coal imports in support of the coal strike; Baldwin hoped to receive the coal dispute through negotiation.
Baldwin offered a 9 month government subsidy of £23 million to support coal miners’ wages, avoiding the immediate needs for wage reductions. This was named Red Friday.
Brought government crucial time to organise for future industrial militancy.
Baldwin appointed the Samuel Commission to investigate the coal industry and provide a long term solution for the crisis.
Red Friday was a short term solution, the subsidy encouraged the thought that socialism may replace capitalism, regarded as a catastrophe to right wing politicians as it may encourage revolutionaries, Ramsay MacDonald (leader of Labour Party) worried that socialist agitation would discredit the Labour Party’s growing credentials.
Describe the breakdown of negotiations in 1926.
Red Friday intensified support and opposition to industrial militancy.
The General Council was still in doubt of the long term chance of securing miners’ wages so needed to prepare for industrial action.
During the 9 month respite, the government effectively organised counter-strike measures: stockpiled resources, established local networks of volunteers, established independent organisations for anti-strike action eg Economic League and the Organisation for the Maintenance of Supplies recruited middle and upper class volunteers to work public services during the strike.
In comparison, the TUC was inactive and unions refused to grant power to the General Council to call out a strike and conduct government negotiations.
Lack of trust between unions, especially after Black Friday- TUC position rapidly deteriorated.
Samuel Commission recommended coal industry to be nationalised, the government continue manipulating coal revenues and that wage levels be temporarily reduced whilst industry was organised- rejected the nationalisation of the coal industry.
Proposed the amalgamation of mines and increased research into coal production, advocated for shared profits between owners and miners- everyone rejected the report.
29 April: things escalated when owners locked out miners who refused to accept wage reductions.
Powers finally granted to the General Council for conducting the dispute and coordinating strike action.
Jimmy Thomas provoking OMS poster sparked hostilities as it was rashly distributed.
TUC voted for General Strike to happen on the 3rd May- anti trade union Conservatives and the TUC were unable to back down and repeat Red Friday so General Strike was unavoidable.
