Productivity Bargaining

Press, Volume CVIII, Issue 31765, 23 August 1968, Page 12

Productivity Bargaining

The complete translation of the British railway system from steam to diesel or electric locomotion seems, by a fortunate chance, to have coincided with a change for the better in management-staff relations. A warm though restrained welcome has been given an agreement recently concluded- between the Railways Board and the National Union of Railwaymen for wage increases granted, somewhat hopefully, in anticipation of greater efficiency on the part of railwaymen. The agreement, providing among other things for a reduction in the number of grades, is expected to be accepted also by the footplatemen’s union. The negotiations were said to be marked by informality and a complete absence of recrimination; certainly there is a new air of confidence, founded on the results of years of modernisation and the pruning out of uneconomic services, that the railways will soon show a profit instead of carrying over losses from year to year. It is expected to be 1970 before a balance between costs and earnings is reached; but even this year the net deficit may be less than £lom on a turnover of more than £soom.

The emphasis in employer-worker bargaining in British industry generally is now upon improved productivity. When, in July, a preliminary settlement was reached providing for a wage rise of 3 per cent for railwaymen, there were fears that the Government had been a party to the breaching of its stabilisation policy. The full wage increases now approved are expected to average about 4| per cent; but the Railways Board is confident that the added cost will have been recouped by the end of next year. Greater efficiency will involve considerable adjustment within the service. The simplification of gradings will mean less overtime and fewer “ working “ rest days ”, Some men will have to adapt themselves to new jobs. Many—a figure of 5000 has been mentioned—are likely to be dismissed. The union has accepted the need for retrenchment; and the board will be able to retain the best workers available at the higher wage rates agreed on. A change from three shifts of eight hours each to two daily shifts of 10 hours each is expected to save at least £13.3m a year. “Productivity bargaining” is likely to be the feature of industrial negotiations in Britain in the years ahead. Few could have expected it to be accepted so whole-heartedly in the nationalised industries, least of all the railways, long the stronghold of restrictive practices.