Big ‘wage push’ in U.K. feared

Press, Volume CXIV, Issue 33479, 9 March 1974, Page 1

Big ‘wage push’ in U.K. feared

P.A Reuter—copyright

LOX DOX. March 8

Fears of a wave of inflationary wage demands alter the coalminers’ spectacular settlement today dampened the relief felt at the ending of the three-day working week in Britain.

A few hours after the miners’ leaders accepted a SlfiOm pay package, the leaders of Britain’s bank workers and London underground train-drivers indicated that they, too, wanted wage increases well outside the previous statutory limits.

One commentator estimates that a total of 3,250,000 British workers are set to push for big pay increases after the miners’ victory.

There were indications, also, that the minority Labour Government’s postelection “honeymoon" period is over. Attacks are coming from former Ministers in the Conservative administration, which lost the election.

Mr Peter Emery, a former Industry Minister, said the miners’ settlement would prove the most inflationary in the history of trade unions. "Brute force" “The use of brute force by strong unions has again proved that they can win at the expense of the moderates and of the country,” he said. Anticipating the approval of the pay deal by Britain’s ) 270,000 miners, the Energy Secretary (Mr Eric Varley) announced yesterday that

■ Britain would return to five-, [day working from midnight' 'tonight. ' He said there was no justification for continuing the [three-day working week im- [ posed on non-essential industry by Mr Heath's Conservative Administration to save fuel. Twelve weeks ; The coal dispute has been [settled in the twelfth week

lof three-day working. But ‘ Britain has been under a state of emergency, and I power supplies have been in ‘doubt for 17 weeks. The i miners began a ban on overItime working in November, land started their strike on! February 10. The three-day working week has cost the nation, about s3loom in lost produc- : tion. I The return to full working delighted the Confederation iof British Industry, but there was a decline in busi-' ness confidence on the Lon-I

■ don Stock Exchange becaus* |of ihv fNM "i cthei infix llionary wage claims. This was despite an offer ijby the Trades Union Congress to exercise wage re- ■ straint in return for volun itary bargaining. ' It is thought the best hop* of preventing the rash of high wage claims and pos sible strikes lies in the unions’ ddsire not to hurt the i electoral prospects of the ; fragile, five-day-old Govern

l menl, which may have to i’face an early election 1 The Right-wing "Daily 'i Telegraph” said today that (the new pay claims were the [first signs that the floodgates ■of wage restraint would be opened under the Labour I Government. But the mass-circulation /’Daily Mirror” said that if ithere was a savage scramble for more money, inflation would take wings, nobody I would benefit, and the Prime Minister (Mr Wilson) would be forced to impose a pay I freeze.