Labour Management Of Industrial Relations

Question 1

How did Wilson take a realistic view to the unions ?

Answer 1

Wilson became convinced to modernise economic that the :
- strikes for higher pay, many unofficial, disrupted production causing lower export rate and increased labour cost
- industrial relations would need to have tighter regulations placed on it

Question 2

What was the dilemma for Labour and their industrial relations ?

Answer 2

Wilson’s view was realistic however Labour had a fundamental connection to the unions as a traditional ally and in the 1960s Unions had provided much of the funding for Labour Party campaigns

Question 3

What do many economists argue about the unions interference in Britain’s economy ?

Answer 3

• in times of inflation unions threatens strike action for higher wage which worsens inflation
• unions resisted attempts at wage restraint
• high labour costs lead to goods being more expensive and contributed to the balance of payments deficit
• high labour costs reduced amount of profit that employers could invest in R&D, new machinery and plants

Question 4

What did the trade unions argue against Wilson’s view ?

Answer 4

• country’s lack of competitiveness should be blamed on employers and government policies nor employees
• Gov attempt to limit wage unfairly penalised low paid workers
• right of unions to bargain freely with their employers shouldn’t be restricted by laws and not by the party of the working class

Question 5

How did unions hold considerable economic power?

Answer 5

• The closed shop requiring workers to join a particular union enhanced union bargaining power
• strikes in nationalised industries could cause disruption throughout the country

Question 6

When and what worsens relations between Labour and the unions significantly ?

Answer 6

‘In place of strife’ 1969
- white paper publication set out boundaries in an attempt to prevent future strikes
- controversial because: limited the right to strike with members having to ballot and only a clear majority made it legal
- It did place restrictions on employers who had to consult unions before major decisions and hold to agreements but this was seen as a poor attempt to make the restrictions palatable

Question 7

When put before cabinet by Barbara Castle, what was the reaction ?

Answer 7

Caused an immediate deep division within the party
- argued to be undermining the principles they should protect
- 50 Labour MPs rebelled and a union leader described it as introducing ‘a taint of criminality’ into industrial relations

Question 8

What was the effect of in place of strife ?

Answer 8

Led to Labours fall from power in 1970
- convinced those agaisnt the Union they had too much power and would prevent any economic progress
- convinced some union members Labour was not holding to promises however traditional unions shrunk in size with National Union of Mineworkers shrinking from 586k to 279k members between 1960-1970