Wage push in U.K.

Press, 30 August 1977, Page 15

Wage push in U.K.

From JOHN ROSS in London rhe ending of two ars of tight wage reaints m Britain on Augt 1 has resulted in a deje of wage claims from » unions, while both the ivernment and the ades Union Congress itch nervously from the ngs. A dramatic revival in ding’s fortunes last :ek resulted in soaring ares — but the recovery 11 be short-lived if ions and employers igre the Government’s 11 to peg rises to about per cent. Fhe list of wage claims ide since the “social atract” ended is formible. and most of them ostantially exceed 10 r cent. Xbout 60,000 coalface ners have already Iged a claim for $237 a ek — an increase of >re than 90 per cent — d other pay demands ige from 45 per cent • 28.000 train drivers to per cent for czr work-

The 19 per cent guide-

line laid down by the Government is described as “a vague dream” by Conservative Partv spokesmen, but the Prime Minister (Mr Callaghan) is adamant that increases of 20 to 30 per cent would lead to hyperinflation, and even higher unemployment than the present 1.5 M.

For its part, the T.U.C., which has emerged during the last two years as a surprisingly moderate influence. has declined to recommend any limit on wage increases, but has insisted that the “12month rule” — which bans any increase within 12 months of the previous rise — should be adhered to by its members.

The T.U.C.’s economic committee has chided the leaders of Britain’s 45,000 Merchant Navy officers for putting forward a claim for an 18 per cent rise within 12 months of their last one.

The Merchant Navy men are not the first, and will not be the last to ignore the 12-month rule, and many of the present

claims breach both the 10 per cent and the 12-month guidelines. Union leaders are thus being openly challenged by their own members who are keen to recoup

what they have lost during the last two years, and are demanding their slice of healthier company profits.

Productivity deals which are self-financing are being pursued by several unions, while others are pressing for better fringe benefits such as increased holidays and a shorter working week.

Phillips and Drew, a London firm of stockbrokers who are often quoted in economic forecasts, say that inflation will continue at its present rate of about 17 per cent well into the 1980 s.

The firm bases its prediction on an average rate of wage increases of 15-17 per cent. The unions are now using the forecast as ammunition, and it appears that the prediction might well become self-fulfilling.