WHITE PAPER ISSUED IN UNITED KINGDOM

Press, Volume LXXXIII, Issue 25092, 25 January 1947, Page 6

WHITE PAPER ISSUED IN UNITED KINGDOM

EMPLOYER-EMPLOYE# RELATIONS

Following is a summary of the White Paper recently issued m the United Kingdom on economic considerations affecting relations between employers and employees. The statement emphasises, the seriousness of'Britain’s economic position and the need for increased production to tide her over present difficulties and enable workers to continue to enjoy impsoved conditions and social services.

The White Paper is prefaced by the following foreword by Mr George Isaacs, Minister of Labour: “The National Joint Advisory Council has been reconstituted in order that the Government may receive from both sides of industry the best advice and assistance on all matters affecting relations between employers and workers. It consists of 17 representatives of the British Employers’ Confederation and 17 representatives of the Trades Union Congress. Meetings have already been held, at which the Lord President of the Council, the Chancellor of the Exchequer, the President of the Board of Trade, and I have been present “At a meeting on October 30, 1946, the view was generally expressed that an essential condition of our future prosperity and well-being was increased productivity and the most efficient and economic use. of labour. This involved, among other things, an appreciation by workers and management of the changed conditions under which we are now living. There is a prospect for some years to come of a general shortage of labour, so that the fear of unemployment should not be reflected in the outlook of those called upon to secure Increased production. “The democratic of . our industrial relations system entails great responsibility on both sides of industry to work for the interests of the country as a whole, as well as for those of particular industries, and this is specially important in dealing with the very serious problems which confront us at the present time. At the meeting on October 30 the council agreed to* co-operate with the Government in disseminating information as widely as possible about the general economic state of the country, including Questions of combating inflation, balancing our foreign trade and assisting in increasing the labour force available in vital undermanned industries. “The council accordingly requested the Government to make available to industry and the country generally a full statement of the main economic considerations affecting relations between employers and trade unions. This paper has been prepared in response to that request, and is issued in full association with both sides of the National Joint Advisory Council and with their endorsement.”

Increased Production Essential ,The statement begins by emphasising the great need of this country for a considerable sustained increase in the production of goods of all kinds. It details the reasons why Britain’s position is extremely serious, and adds that despite the vicissitudes ‘of the last seven years “since the end of the war this country has proceeded rapidly to establish schemes of social improvements in the way of the housing programme, improved educational system, comprehensive old-age, unemployment, and health insurance systems, and medical apd other services.” The kernel of the economic industrial policy of the British Government is a speedy and substantial increase in the output of products of British industry, coupled with maintenance of quality. The responsibility is not only that of the Government but of management and workers. Extension of consultation between management and workpeople would be advantageous. The biggest problem is the shortage of manpower. “The Country has six years’ arrears, of civilian work to catch up on, in addition to repairing a vast amount of bomb damage and rebuilding of blitzed areas. New houses have to be built, industry has to be modernised and re-equipped, public services have to be brought to a proper standard of efficiency and improved to meet new needs; new schools, hospitals, and many other facilities of a corporate life have to be provided, and, above all, we have to restore an abundant supply of goods and services for the consumer at home, and to meet the needs of export trade. How is all this work to be done? How big is the labour force to do it?”

Shortage of Labour At the end of November last year the total working population was some 20,324,000, or some 570,000 more than mid-1939; but this does not mean that we have sufficient labour. The numbers .accounted for. by the forces and auxiliary services among others increased by 813,000, and the balance was thus decreased by 241,000. Against this must be set the fact that some unemployment is inevitable. At mid--1939 there were 1,270,000 unemployed, while in November last there were only 366,000, and also 345,000 demobilised still unemployed. But the increase was not nearly sufficient. For export work, some 500,000 more are required. Reinforcements from demobilisation this year will be insufficient, while the raising of the school leaving age will mean the loss of 370,000 in the following 12 months. In fact, the prospect is of an overall shortage Tor some years to come. The shortage, however, is not spread

evenly. Some of the most vital indus- - tries are more severely undermanned* than industry as a whole. The statement sets out this position in tabulated form. It shows, for instance, how coalmining manpower is down by 43.000 on the mid-1939 figure, cotton by 88,000, and clothing by 125,000. In addition, we must pay our way abroad. As a result of the war, we have incurred debts and lost half our overseas investments—and their income. We import more than half our food and most of our raw materials. To make up, we must increase exports. At present, though we export more goods than in 1938. we import only 70 per cent of that year’s imports. Yet we cannot even pay for this IoW amount of imports except by using the Canadian and United States loans. In the last jrear there has been a deficit of about £27,000,000 monthly between exports and imports—or £328,000,000 for the year. But the loans give us only a short and we must export still more—ln 75 per cent, more than before the war. Increased Export Trade Required Passing to “costs and prices,” tha statement says it is not enough divert output from home consudsti oa to export “We must keep our customers and find new ones; we must make sure that on price and quality we can sell our goods. Nor is it enouA merely to hold our place. We must 5. crease substantially our share in the world’s export traqe.” The need is for re-equipment, increased mechanisation and co-operation in maintaining pnfc duction at the, highest pitch of efficiency. Subsidies have kept internal prices steady, but in the present financial year they will cost nearly £400,000,000, of which Borpe £364,000,000 is for food. A measure of stability has been achieved, but wages, salaries, and profits have been increasing. Regarding wages, it has now been possible over a wide field of industry to make provision for post-war settlements. After rising considerably, the general index figure of wage rates tras remained virtually stable since last July. The change-over from war to peace so far has been very smootii and the position “reflects the good sense and steadiness of the general body of workers.” Wage rate increases since July, 1945, reckoned in terms of the 1945 wage bill, amount to some £250,000,000. The total increase since the beginning of the war. in terms of the 1939 bill, is some £1,200,000,000. “The and the country desire that these gains should be madb secure and become a permanent advance in real wages. How is this desire to be achieved?” The statement says: “The answer, first and last, is by increasing production. This is the only means by which we can achieve a genuine permanent balance between the volume of purchasing power and the supply of good! available. At present there is too much money chasing after too few goods.” Over £7,000,000,000 of incom< (after income tax has been paid) is. trying to buy some £6,000.000,000 worth of goods and services. But increased production an hour worked is not necessarily in itself enough. What is necessary is increased production per annum, and in this everyone has a part to play. How is this to be done? Home Industries “We must concentrate on Increasing production in those home industries which supply the vital materials required for the necessaries of life. This is not only essential if we are to achieve a standard of life which full employment should ensure, but it is even more urgent in the short run to break the shortage of basic materials which is holding up the whole process of reconversion of civilian life and industry.” The state ment shows why “it is a matter of over-riding importance that essential industries be brought to the necessary strength without delay.” ; Regarding the question of full employment, the statement says, the Government will do all it can to tvert or minimise interruptions due to local unemployment. ,We may also hate to reckon with depressions arising abroad, but “the Government is doing all it can in present international discussions to reduce this danger to a minimum and is preparing measures to counteract it at home should the danger threaten.” The statement says: “The object of all our economic policy and the prime purpose of all our industrial activity is to improve the standard of living of the people. This depends on the output and efficiency of all our industries and essential services.” The Government Will maintain price control and see that no unregulated increase in prices of essential gdods and services occurs. The statement, in conclusion, emphasises once again the great responsibility that rests on both sides of industry.