Next Step In U.K. Wages Freeze Due

Press, Volume CVI, Issue 31222, 21 November 1966, Page 13

Next Step In U.K. Wages Freeze Due

(N.Z. P.A -Reuter—Copyright > LONDON, November 20. The British Government is expected to announce this week the second six-month stage of its wages and prices freeze.

Trade unions and industrialists are wondering how far any relaxation will go. The freeze, a six-month standstill followed by six months of “severe restraint” was introduced last July to halt rising prices, reduce domestic spending power, boost overseas trading revenue and help stabilise the £.

Ministers are satisfied that this is being achieved, even though the higher overseas trade revenue has been partly due to freakish factors. Industry and trade unions are. however, becoming increasingly reluctant to abide

by the Government’s stringent economic policy much longer. The government is believed to be planning wage increases for workers whose total earnings are too low for them to maintain a reasonable standard of living. If the Government statement does not go some way towards meeting the views of the unions and employers, the Government will be faced with isolation. There is a fear that if this happens it will inevitably lead to labour troubles of a severity which could make the recent car industry crisis seem like a local dispute.