Labor Law and Practice in Great Britain. INSTITUTION Bureau of Labor Statistics (DOL), Washington, D.C

DOCUMENT RESUME

ED 080 714 VT 021 004

AUTHOR Douty, H.M.. TITLE Labor Law and Practice in Great Britain. INSTITUTION Bureau of Labor Statistics (DOL), Washington, D.C.. REPORT NO BLS-R-409 PUB DATE 72 NOTE 89p.

EDRS PRICE MF-$0.65 HC-$3.29 DESCRIPTORS *Employment Practices; *Foreign Countries; Human Resources; Industrial Relations; Labor Conditions; Labor Demands; *Labor Economics; *Labor Laws; *Labor Legislation; Labor Market; Management; Manpower Needs IDENTIFIERS *Great Britain

ABSTRACT This 4-part report is one of a series prepared to provide background material for United States businessmen and others employing local workers abroad, trade union and labor specialists, consulting economists, and students..The data used were obtained from personnel in London's Departments of Employment, Health and Social Security, the Commission on Industrial Relations from British trade union officials, persons in the Ministry of Health and Social Services, and the Ministry of Community Relations in Belfast, Northern Ireland. Contained in the report are:(1) an overview of the geographical, political, cultural, social, and economic factors characteristic of the country and its workers as well as its manpower resources, (2)a discussion of governmentally instituted labor laws and their effect on labor, (3)a detailed summary of existing problems in labor management and industrial relations, and (4) a description of existing employment conditions in Great Britain. A selected bibliography, tables, charts, and established labor laws supplement the text. (Author/SN) II , , , aborta.. a d Practice i I I

BLS REPORT 409 U.S. DEPARTMENT OF LABOR Bureau of Labor Statistics Labor Law and Practice in GREAT BRITAIN

B LS REPORT 409 U S DEPARTMENT OF HEALTH EDUCATION A WELFARE NATIONAL INSTITUTE OF U.S: DEPARTMENT OF LABOR EDUCATION THIS DOCUMENT HAS BEEN REPRO J. D. Hodgson, Secretary DUCE() EXACTLY AS RECEIVED FROM THE PERSON OR ORGANIZATION ORIGIN B ureau of Labor Statistics ATING IT POINTS OF VIEW OR OPINIONS Geoffrey H. Moore, Commissioner STATED DO NOT NECESSARILY REPRE SENT OFFICIAL NATIONAL INSTITUTE OF 1972 EDUCATION POSITION OR POLICY Preface

This report is one of a series prepared in the Division of Foreign Labor Conditions, Bureau of Labor Statistics. The series is intended to provide background material for United States businessmen and others who may be employing local workers abroad, trade union and labor specialists, consulting economists, and students. Hopefully, the report also will be useful to persons concerned in more general ways with labor in foreign countries. This broad survey of labor conditions and of labor and social security legislation in Great Britain clearly is not intended to be exhaustive, but rather to provide a general guide. The study waz prepared largely during the first half of 1971 before the passage by Parliament of the Industrial Relations Act, which involves significant changes in the legal framework of the British industrial relations system. A summary of the main provisions of the Industrial Relations Act, 1971, however, has la..,:m incorporated in chapter VAT. Enabling legislation for Britain's entry into the European Economic Community was enacted after the completion of the study. Because of the special constitutional position of Northern Ireland within the United Kingdom, labor conditions in that area are considered briefly in appendix B. . Statistics in some cases A available on!y for the United Kingdom as a whole rather than for Great Britain separately. Northern Ireland, because of its small population and labor force, has comparatively little weight in data that of necessity must be shown for the United Kingdom. The report was prepared by H. M. Douty, formerly Assistant Commis- sioner for Wages and Industrial Relations, Bureau of Labor Statistics, and presently visiting Professor of Industrial and Labor Relations, Cornell University. In gathering information for this report, the author received generous assistance from London officials in the Department of Employment, the Department of Health and Social Security, and the Commission on In- dustrial Relations; from officials in the Ministry of Health and Social Services and the Ministry of Community Relations in Belfast, Northern Ireland; and from British trade union officials and management representatives. Needless to say, they have no responsibility for any errors of fact or interpretation that the study may contain.

In this report, British currency was converted to dollars at the rate of exchange (£1=US$2.40) existing before the new rates of exchange announced on December 19, 1971. The new par of exchange is £1 US$2.60.

ill I

Contents

Pao. Part I. The country and its workers 1 Chapter I. -Geographic, political, and economic factors 1 Geographic setting 1 yolitical history and government _ 1 The national economy______4 Chapter II. Cultural factors 7 7 Ethnic and linguistic groups _ Religion 7 Chapter III. Social factors 8 The nature of the society _ 8 Education and training _ _ 10 14 Living conditions _ Health conditions _ _ 16 Women and children ... 16 Chapter IV. Manpower resources 17 Population and labor supply . 17 National service system 20 Special characteristics of the work force 20

Part II. Government and labor Chapter V. Government Public administration Administrative bodies concerned with labor Participation in international organizations Chapter VI. Legislation affecting labor _

Constitutional guarantees _ _ _ _ Summary of basic labor legimlation Enforcement

Part III. Labor and management _ _ 30 Chapter VII. Labor and management organizations _ 30 Labor organizations 30 International ties . . .. 33 Management organizations, 34 Chapter VIII. Industrial relations 35 Collective bargaining 35 Settlement of disputes 39 Industrial Relations Act, 1911 42 Relations in nonunion enterprises 46

Part IV. Conditions of employment 47 Chapter IX. Employment practices . ------47

iv ContentsContinued

Part IV. Conditions of employmentContinued Records and reports 47 Preemployment inquiries 47 Hiring 48 Notice periods and separations 49 Disciplinary actions 50 Chapter X. Hours of work and premiums 50 Hours of work 50 Nightwork 52 Overtime premium 52 Paid leave . 53 Periodic rest day premium 53 Holiday premium . 53 Chapter XI. Wages and supplemental payments 54 Base pay . 54 Some elements of wage structure 55 The distribution of earnings 56 Average earnings by industry and occupation 57 Supplemental payments 60 Withholdings and deductions 60 Pay changes 61 Travel and transportation expenses 62 Total compensation aid costs 62 Pay period frequency 64 Chapter XII. Health, safety, and workmen's compensation 64 Health and sanitation = _ .. 64 Safety conditions and required precautions 65 Safety inspectorates 66 Accident and occupational disease compensation 66 Chapter XIII. Social insurance, family allowances, and the National Health Service 68 Social insurance 68 National insurance system 69 Family allowances 72 Supplementary benefits 73 National Health Service 74 Other insurance and retirement systems 75

Appendixes: A. Major labor and social security legislation in Great Britain 76 B. Northern Ireland 78 C. United Kingdom Decimal Currency 84

Selected bibliography 85

Tables: 1. Gross national product by industry, selected years, 1960-69 4 2. United Kingdom :Indexes of output at constant factor cost, total economy and manufacturing, 1960-69 5

V ContentsContinued Noe 3. Percent distribution of average weekly household expenditures, 1969 15 4.Great Britain : Home population, 1961 and 1970 _ . 17 5. Great Britain: Age distribution of homepopulation, 1970 17 6.Great Britain : Working population, March 1970 _ _ 18 7.Great Britain :Distribution of employees by industry group, June 1969 18 8. Great Britain: Distribution of employeesby manufacturing industry group, June 1969 19 9. Great Britain: Percentage distribution ofemployment in engineering and related industries by occupational groups,May _ _ 19 1969 _ .. 10. Great Britain : Unemployment rates, 1960-70 19 11.United Kingdom : Number of unions and unionmembership, 30 1960-70 _ 12.United Kingdom: Distribution of trade unionsby size, 1970 31 13. United Kingdom : Ten largest trade unionaffiliates of Trades Union Congress, 1970 31 14.United Kingdom: Work stoppages, 1960-70 39 15.Great Britain :Percentage distribution of full-time workers by normal weekly hours of work, April 1970 51 16. Great Britain : Percentage distribution of full-timeworkers by weekly hours worked, April 1970 ..- _ 51 17. United Kingdom: Average weekly hoursworked by full-time adult manual workers, by industry group, October1970 _ . 52 18. Great Britain: Average gross weeklyearnings for unskilled male workers as a percent of the level for skilledmale work- 56 ers, selected industries, April1970 ______19. Great Britain: Percent distribution of adultfull-time employees by gross weekly earnings, sex, and occupationalcategory, April 1970 56 20. Great Britain : Percent distribution of employeesby gross weekly 57 earnings, April 1970 - - - - - 21. Great Britain : Average weekly and hourly earnings,and average hours worked, full-time blue-collar workers,manufacturing and selected nonmanufacturing industries, October1970 57 22. Great Britain:Gross average weekly earnings, adults paid for full week, selected occupations, April 1970 58 23. Annual pay of top executives in Britishindustry, 1968 59 24. United Kingdom :Indexes of basic wage rates, hours ofwort, earnings, and salaries, 1960-71 61 25. United Kingdom: Indexes of real averageweekly earnings for manual workers, real average salaries, andretail prices, . 62 1960-70 ; 26. Great Britain :Percentage distribution of average labor costs per employee, 1968 63

vi Page 27.Great Britain: Accidents reported under the Factories Act, 1966-70 66 28. Examples of weekly national insurance contributions effective September 20, 1971 69

Chart: Organization of the Department of Employment as of February 1971 25

vii GREAT BRITAIN

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vii PART I. THE COUNTRY AND ITS WORKERS

Chapter I.Geographic, Political, and Economic Factors

Geographic Setting The British climate generally is mild and temperate. During a normal summer, the tem- Great Britain proper, comprising England, perature occasionally rises above 80° F in the Wales, and Scotland is an island lying off the south; winter temperatures below 20° F are northwest coast of Europe. Numerous small is- rare. Over the British Isles as a whole, rainfall lands, chiefly in the Hebrides, Orkneys, and averages over 40 inches annually (not much Shetland groups off the coast of Scotland, are greater than for Washington, D.C.) ; the aver- within its jurisdiction. The Isle of Man in the age for England alone is about 34 inches. The Irish Sea, and the Channel Islands between geographical distribution of annual rainfall is England and France, technically are Crown largely governed by topography and exposure dependencies, but have a large measure of ad- to the Atlantic Ocean, and varies widely in dif- ministrative autonomy, as their ancient legisla- ferent parts of the country. Rain is fairly well tures handle domestic matters. Northern Ire- distributed "lroughout the year. land,whichtogetherwithGreatBritain As of mid-1970, the estimated population of forms the United Kingdom, also has its own Great Britain was 54,187,000. Its population Parliament with power to legislate on most do- density is one of the highest in the world, ap- mestic subjects. proximately 610 persons per square mile. In The geology of Great Britain is exceedingly England and Wales, density is about 840 per- complex. There are roughly two main regions: sons per square mile, and in Goater London Lowland Britain and Highland Britain. In the about 12,600. Demographic characteristics are former are the newer and softer rocks of mid- discussed in some detail in chapter IV. land, southern, and eastern England: Highland Britain comprises Scotland, most of Wales, the Political History and Government ';road central upland known as the Pennines, and the Lake District, and consists mainly of It is peculiarly difficult briefly to describe outcrops of very old rocks in the mountains the British system of government. Nosingle and hilly regions. The high ground is not con- document sets forth basic constitutional princi- tinuous, however, but is interspersed with val ples, and the country has no supreme judicial leys and plains, the top strata of which date authority for their interpretation. The consti- from the carboniferous age. Here the outcrops tution of Britain is formed partly by statute, and shallow seams of coal provided the basis partly by common law, and partly by precepts for the rise of British industry. These have and practices that have acquired status as us- been largely exhausted, and most of the pre- ages or conventions. The rules of the constitu- sent deep coal workings underlie the fertile tion have never been codified ;they can be lowlands. adapted to changing conditions at any time by The Roils are thin and poor over much of the passage of an act of Parliament or by the Highland Britain, and in many areas only the general acceptance of a new convention. valleys and plains are cultivated. In Lowland The continuity of its constitutional tradition Britain, on the other hand, most of the land out- is a distinctive feature of British political life. side of urban areas is farmed. Domestic constitutional upheavals have been

1 singularly lacking. England has not been in- bers (about 1 percent of the total number) to vaded successfully since 1066, and its form of the House. government has not been changed by violent The nonelective House of Lords consists of means since Cromwell's reign in the mid-17th hereditary peers and peeresses;peers and century, the only break in continuity of the peeresses appointed for life under the Life monarchy in over a thousand years. Peerages Act, 1958; and Lords of Appeal in The Sovereign, as head of state and, in law, Ordinary (Law Lords) appointed under the the head of government as well, playsan im- terms of the Appellate Jurisdiction Act of portant role socially and symbolically; for the 1876 to assist the House in the performance of most part, however, the conventions of thecon- its judicial duties. stitution prescribe a purely formal part for the Legislative measures may originate in either Sovereign in the conduct of government. House, except for those dealing with finance or The supreme legislative authority in Britain representation, which are always introduced in is the Sovereign in Parliament; that is, the the Commons. As a rule, bills likely to result in Sovereign and the two Houses of Parliament. political controversy are introduced and de- In law, the supremacy of Parliament is abso- bated in the Commons before being sent to the lute. It can make or unmake any law; negate Lords. Procedures for the consideration of leg- by statute the most firmly establishedconven- islation are similar in both Houses. The Lords tion or usage or convert a convention into bind- cannot veto financial measures or, in practice, ing law ; legalize past illegalities;or make void delay any other Commons bill for more than 6 and punishable what was lawful when done and months. Most legislation applies to Great Brit- thus reverse the decisions of the courts. The ain or to the United Kingdom as a whole, but validity of an act of Parliament that has been separate acts are sometimes passed for Eng- duly passed, legally promulgated, and pub- land and Wales and for Scotland. As pre- lished by the proper authority cannot be dis- viously noted, Northern Ireland typically en- puted in the law courts. In practice, theexer- acts legislation on domestic affairs through its cise by Parliament of its great authority is not own Parliament. arbitrary; its members bear in mind thecom- Executive authority in the British Govern- mon law, the product of centuries, and tend in- ment is exercised by the Prime Minister, who sofar as possible to act in accordance withpre- is appointed by the Crown and who, in prac- cedent and tradition. tice, is the chosen leader of the party command- Majorlegislativepowerresidesinthe ing a majority in the Commons, and by a Cabi- elected House of Commons. A general election net composed of ministers selected by the must be held every 5 years, butmay be held at Prime Minister and appointed by the Crown. more frequent intervals, depending on the elec- Departmental ministers are those in charge of toral strategy of the party inpower or as a con- government departments; other ministers may sequence of an adverse vote on a major policy have few or no departmental duties and thus issue. The House of Commonspresently has are available for such special tasks as the 630 seats. The results of the mostrecent gen- Prime Minister may assign. The government eral election (June 18, 1970)were as follows: departments, which are staffed by civil ser- Party vants, are responsible for giving effect to gov- Members Popular vote ernment policy as determined by Parliament. Conservative 330 13,106,965 They may work through local authorities, stat- Labor 287 12,141,676 Liberal 6 2,109,218 utory boards, or other organizations operating Others 6 906,473 under varying degrees of government control. Speaker 1 The government departmental structure is complex. The work of some departments (e.g., Effectively, as the results of the 1970 elec- the Board of Customs and Excise) covers the tion indicate, Britain has a two-party system. United Kingdom as a whole; other depart- While the once powerful Liberal Party stillre- ments (e.g., the Department of Employment tains appreciable electoral support, its 7.4per- and Productivity) cover Great Britain only; cent of the vote in 1970 returned only 6mem- still others (e.g., the Ministry of Housing and

2 Local Government) may be confined to Eng- have councils. In Scotland, local authorities land. Thus, although the United Kingdom is a number over 400. unitary rather than a Federal state, methods The local authorities run many of the public of government are flexible and are adapted, in services, including local health, sanitation, ed- some measure, to the needs of the constituent ucation, child care, town and country planning, parts of the nation. England and Wales on the fire fighting, and traffic management. They one hand, and Scotland on the other, continue, share in the administration of the police. as before unification, to have different systems Great Britain does not have a complete code of law, different judiciaries, different educa- of criminal and civil law. The sources of Bri- tional systems, different systems of local gov- tish law include legislation and unwritten or ernment, and, for most domestic matters, dif- "common" law.Legislation, which includes ferent government departmenl-s. In Scotland, acts of Parliament and orders, rules, and regu- these departments have headquarters in Edin- lations made by ministers and others under burgh, and are grouped under the Secretary of powers conferred by Parliament, takes prece- State for Scotland, who is a member of the dence over any other form of law. Cabinet. The Welsh Office, under the Secretary In England, common law originated in cus- of State for Wales, who is also a Cabinet Min- toms and traditions reflected by decisions of ister, has considerable responsibility for the the courts. Courts of equity were combined administration of Welsh affairs. with the courts of common law in 1873, and all Government on a local basis has been part of courts now apply both systems. In case of con- the British administrative system for many flict, equity considerations prevail. centuries, and is conducted by local elected au- In Scotland, nonstatutory (or common) law thorities. These authorities must act in accord- is derived from the writings of certain eminent ance with, and within the limits of, powers con- lawyers of the 17th, 18th, and early 19th centuries, and from judicial decisions which have ferred on them by Parliament. They are sub- followed and been developed from the princi- ject in some of their work to a measure of su- ples enunciated in those commentaries. pervision by the central government. They are, Jurisdiction over criminal cases in England nevertheless, independent bodies and discharge and Wales is exercised by magistrates' courts, their responsibilities in their own right. They which try the less serious offenses; courts of appoint and control their own staff, and raise quarter sessions, which try cases involving the revenue through the levy of rates (real estate more serious offenses ; and courts of assize,in- taxes). cluding the Central Criminal Court for Greater Local government organization in England London and the Crown Courts in Liverpool and and Wales (outside of Greater London) con- Manchester, which try the very grave cases or sists of, in the main, county boroughs (mostly those presenting unusual difficulties. The main with populations of over 75,000) and adminis- civil courts are the county courts, and for the trative counties. The latter are divided into more important cases the High Court.The High county districts, which consist of noncounty Court, which is divided into the Chancery Di- boroughs, urban districts, and rural districts. vision, the Probate, Divorce, and Admiralty The rural districts are further divided into Division, and the Queen's Bench Division, parishes. Scotland isdivided into counties, forms part of the Supreme Court of Judica- large and small burghs, and districts. The ture. Its jurisdiction is both original and appel- Greater London area is administered by the late and covers virtually allcivil and some councils of 32 London boroughs and the City of criminal causes. London, and by the Greater London Council. In Scotland, criminal cases based on indict- Each local authority area is administered by ment are tried b:. a judge with a jury, or under its own elected council. All in all, England and summary procedure, without a jury. The court Wales (outside the Greater London area) have structure includes burgh (or police) courts; about 8,900 local authorities, including 7,500 justice of the peace courts; sheriff courts; and parish councils but excluding about 3,300 par- the High Court of Justiciary. ish meetings in parishes not large enough to The main courts of civil jurisdiction in Scot-

3 land are the sheriff courts (which in their civil gress in April 1948. The plan achieved its capacity correspond roughly to the county major purpose of carrying Britain, and West- courts in Englnad and Wales),' and the Court ern Europe generally, over its critical deficit of Session, which is the supreme civil court. years. Britain declined Marshall Plan aid after the end of 1950. The National Economy In an approximate sense, 1950 marked the end of the British reconversion period. By that Britain emerged from World War II with time, the economy had regained a position formidable problems ofreconversiontoa broadly comparable with that which hp.d ex- peacetime economy. Its industrial plant had de- isted at the outbreak of the war. teriorated markedly during the war years; a Thetwodecadesfollowing1950were substantialproportionofitsinvestments marked by substantial changesinthein- abroad had been liquidated ;and it had ac- dustrial, geographiPPL a -ccupational distri- quired, in the course of the war, an external bution of employ ..e, troduction of new debt of staggering dimensions. Exports in the technologies and . acts, and the growth of immediate postwar years could not be expected some industries and the decline of others. Au- to generate sufficient foreign exchange for the tomobile manufacture, petroleum refining, and purchase of the volume of fuel, food,raw ma- chemicals are examples of rapid growth indus- terials, and other supplies needed fora reasona- tries during this period. Growth in steel was bly smooth transition for war to peace. no more than average, and some industries, The major source of the needed supplies was such as textiles, shipbuilding, and coal mining, North America. The "dollar gap" was bridged experienced either absolute or relative decline. temporarily by a long-term loan of US$3.75 Great Britain is highly industrialized. Al- billion extended by the United States, anda most 39 percent of the total number of em- similar loan of Can$1.25 billion by Canada. ployees in June 1970 were engaged in manu- For a vai 'ety of reasons, these creditswere facturing. Slightly more than a quarter (2.3 used at a much more rapid rate than had been million) of the manufacturing employees were anticipated. Fortunately, the imaginative Mar- in engineeringindustries(corresponding shall Plan for European economicrecovery, roughly in the United States to the manufac- formulated in 1947, was apl.roved by the Con- ture of electrical and nonelectrical machinery TABLE1.GROSS NATIONAL PRODUCT BY INDUSTRY,' and scientific instruments 1), and an additional SELECTED YEARS, 1960-69 19 percent were in shipbuilding, vehicles, and lIn million of pounds. at current priced miscellaneous metal goods. Industrial sector 1960 1963 1966 1969 Between 1960 and 1969, gross national prod- (l. tonal product at uct (GNP) increased in current prices from ost 22,817 27,150 32,991 38,601 droperty income £22.8 billion (US$54.7 billion) to £38.6 billion .rom abroad . 231 392 380 Cross domestic product 451 (US$92.6 billion). (See table 1.) The contribu- at factor cost 22,586 26.758 32,611 38.150 tion of manufacturing to GNP declined from Gaoss Domr.sriPRODUCT 36.1 percent in 1960 to 34.6 percent in 1969. Agriculture, forestry, and flushing 812 984 1.083 1,197 The relative contribLtioe of both agriculture Mining and quarrying 687 760 725 678 Manufacturing 8,239 9,117 11,247 13.346 (from 4 percent to 3.1 percent) and mining Construction . .. 1,363 1.727 2,291 Gas, 2,559 electricity, water 617 835 1,073 1.364 and quarrying (from 3 percent to 1.8 percent) Transport _ 1,532 1,766 2.066 2,348 Communication 421 522 702 930 declined significantly;, the share of transport Distributive trades 2,756 Insurance, banking and 3.174 3.752 4,193 and the distributive trades also declined. On finance (including real estate) 686 927 1,025 1,250 the other hand, the relative importance of the Ownership of dwellings 901 1,149 Public administration 1.520 1,991 various service industries increased measura- and defense 1.323 1,551 Public health and 1,965 2,391 bly, as did that of construction and communi- educational services 906 1,184 1,558 1.987 cations. The contribution of public administra- Other services 2.543 3.320 4.024 5,073 Stock appreciation tion to GNP rose moderately from 5.8 percent Residual error 135 202 318 815 165 46 102 342 in 1960 to 6.2 percent in 1969 ; the relative im- The contribution of each industry to gross nat;onal fore providing for &predation and product be- ' Standard Industrial Classification Manual (Office tock appreciation of Statistical Standards, Office of Management and &nowt:: Central Statistical Office,Annual Abstract of Statistics, 1970 (London: H.M. Stationery Office 1970). table 304. Budget, 1967), industry groups 25, 36, and 38.

4 portance of insurance, banking, and finance re- States in the United Kingdom at the end of mained about the same. 1969 was around US$7.2 billion' Most of this The changes in GNP and in gross domestic investment was in petroleum, automobile man- product from 1960 to 1969 shown in table 1 re- ufacture, and in a variety of other, mainly du- flect changes in prices as well as output. Some rable goods, manufacturing industries. Foreign notion of the change in real output in the econ- investors in Britain are allowed to repatriate ( ay as a whole, and in manufacturing sepa- the proceeds of the sale of their investments, rately, can by obtained by adjusting gross do- including any captial gains that may have ac- mestic pr. feprice changes. (See table crued. There is no limitation on the transfer of 2.) Betwet.A'. 4nd 1969, real output in the earned profits and dividends. economy increased by 27.2 percent, or at an av- With respect to trade, preliminary data for erage annual rate of 2.4 percent. The increase 1970 show United States exports to the United in manufacturing output was 31.5 percent, or Kingdom of approximately US$2.5 billion, and at an average annual rate of 2.9 percent. imports of US$2.2 billion.° Year-to-year changes in output varied consid- The economy of Great Britain is mainly one erably. of private enterprise. Most enterprises in man, ufacturing, wholesale and retail distribution, TABLE 2.UNITED KINGDOM: INDEXES OF OUTPUT AT CONSTANT FACTOR COST, TOTAL ECONOMY AND MANUFAC. insurance, banking, and finance, and services TURING, 1960-49 of all kinds are privately owned. The national- Indexes (1963:_-.100) ized sector, however, is by no means negligible. Year AN goods and servicesManufacturing It includes civil aviation, coal mining, much of

1960 - - - - -...... 93.8 95.5 surface transport, gas and electricity, steel, 1941 95.5 95.7 1982 96.8 96.1 and atomic energy, The bankruptcy of Rolls 1968 100.0 101.0 1964 106.8 10 h7 Royce in February 1971 resulted in the nation- 1965 108.6 112.4 1966 110.5 114.2 alization of a number of the divisions of the 1967 112.2 114.2 1968 116.6 121.4 company producing aircraft, marine, andin- 1969 119.8 125.6 dustrial engines deemed essential to Britain's Sonnet:: Central Statistical Office, Annual Abstract of Statistics. 1970 (London: H.M. Sationery Office, 1970), table 305. defense. The Post Office, which also provides telephone and telegraphic service, became a The British economy depends greatly on ex- public corporation in 1969.° The nationalized ternal trade. The value of this trade in 1969 industries are run by quasi-independent corpo- was £15.7 billion (US$37.7 billion), of which rations; their managing boards and staff aii- £8.3 billion represented imports and £7.3 bil- not made up of civil servants; they are, how- lion exports.2 Food, including beverages and to- ever, accountable to Parliament for their ac- bacco, represented more than one-fifth of im- tions in a variety of ways. ports, and raw materials, including petroleum The relative importance of the nationalized andpetroleumproducts,about one-eighth. sector is suggested by the fact that in1969 Manufactured goods accounted for almost ex- public corporations, including the Post Office, actly 50 per cent of the value of all imports. In contributed about 11 percent to GNP. The pri- terms of exports, manufactured goons made up vate corporate sector contributed about 55 per- more than four-fifths of the total. Almost half cent, and the personal sector (unincorporated of the manufactured goods exported consisted enterprises, the self-employed, etc.) about 17.5 of machinery and transport equipment. The United States has important invest- ' See David T. Devlin and George R. Kruer, "The ments in British industry, and trade between International Investment Position of the United States: the two countriesissubstantial. The book Developments in 1969," Survey of Current Business, value of direct investment' by the United October 1970, pp. 21-38. ' Evelyn M. Parrish, "The U.S. Balance of Payments: ' Central Statistical Office, Annual Abstract of Sta- Fourth Quarter and Year 1970," Survey ofCurrent tistics, 1970, tables 264, 267, and 268. Business, March 1971, pp. 31-56. ' Direct investments are those through which private This list of nationalized economic activities isnot investors in one country control, or have an important exhaustive.See BritishInformationServices, Na- voice in the management of, enterprises in another tionalized Industries in Britain (London: H.M. Sta- country. tionery Office, 1988).

5 percent. Another 16 percent was accounted for As Britain enters the 1970's, it is confronted by government (central and local)'. by three major economic issues : In terms of total employment, including the 1. Theexceptionally self-employed, the private sector accounted for sharpinflationary 75.1 percent in 1969; public corporations, in- movement that began in the latter part of the cluding the Post Office, 8.1 percent ; and the 1960's continued into 1971. The trigger mechanism for the present inflationary episode was central and local government authorities, in- the currency devaluation of November 1967, cluding H. M. Forces, 16.7 percent." In 1969, national income (GNP less capital through its effect on import prices, higher indi- consumption) was £34.9 billion. Of this total, rect taxes, restraint on the growth of real in- £27.2 billion, or 77.9 percent, represented incomes, and higher unit labor costs spread over come from employment in the form of wages, stagnant production.11 Beginning in the second salaries, and employers' contributions to public half of 1969, when the effort of the then La- and private insurance and pension funds." In bour Government to restrain the growth of 1960, the proportion of employment income money incomes collapsed, cost elements, partic- was 72.7 percent, indkating a shift during the ularly wages and salaries, began to predomi- 1960's toward wages and salaries in the distri- nate. Between December 1969 and December bution of income. 1970, the index of wage rates for manual worRers advanced almost 14 percent, and the Britain has suffered from a precarious bal- index of retail prices by about 8 percent. The ance of international payments problem during present Conservative Goverment is attempting th entire postwar period. The pound has been to dampen the rate of increase in money wages devalued twice, and repeated efforts to dampen through monetary and Neal policy and, as an domesticdemandforgoodsandservices example to private firms, through a hard line through monetary andfiscal policies,and on wage increases in the public sector." through more direct "incomes" policies, have Control of inflation will preserve at least been made. These "stop-go"policieshave tended to impede capital formation and the some of the advantages for exports and the balance of payments resulting from the 1967 growth of output andproductivity.Itis estimated" that per capita output in the United currency devaluation. During 1970, the balance Kingdom increased at various periods during of payments, in fact, did show considerable the 1960's as follows : strength, even after discounting large short- term capital inflows due to high British inter- Percentage increase in est rates: A marked easing of inflationary pres- output per capita sures alio is necessary to stimulate industrial Period (Annual rates) investment and hence a more rapid rate of 1961-64 2.00 growth in real output. 1965-68 3.00 1969 1.75 2. A second issue relates to reform in the conduct of industrial relations. The Industrial In comparison with most other Europeancoun- Relations Act,1971, whichisdiscussedin tries, these rates of growth inper capita out- Chapter VIII, is calculated to provide a new put are low. In consequence, although the real legal framework for labor-management rela- incomes of the British people have advanced tions. The influence of the new legislation will substantially during the postwar period, the become apparent only over a period of years, gain has not been as great as that experienced and other factors, including the achievement of in Western Europe generally. reasonable price level stability, will contribute significantly to the industrial relations climate. ' CentralStatisticalOffice,National Income and Expenditure (London: H.M. Stationery Office, 1970), " See report of meeting on Jan. 6, 1971, of National table 13. Economic Development Council, at which unions, em- ' Central Statistical Office, National Income, table 13. ployers, and government were represented, in Times ' Ibid., table 1. (London) , Jan. 7, 1971. 'Organization for Economic Cooperation and De- "The most dramatic example was the willingness of velopment, Economic Surveye: United Kingdom (Paris, the government to suffer a postal strike beginning on November 1970). Jan. 19, 1971, and lasting approximately 7 weeks.

6 -.7111111,- ,

the intention 3. Finally, a crucial issueis the integration ernmental activity. In general. of the government is torely more on individual of Britain into the EuropeanEconomic Com- by reducing the Britain and the six initiative and responsibility munity. Negotiators for role of government in the economy.One ele- Common Market countries agreed onterms of ment in this strategy isrevision of the indi- entry on June 23, 1971. Enablinglegislation vidual and corporate tax structureto provide was passed by theUnited Kingdom Parliament greater incentive for work andinvestment. The in the autumn of 1971 overLabour Party and comprehensive health andsocial security sys- trade union opposition.Implementing legisla- tems will be maintained, butcharges will be in- tion must now be considered.Entry is expected creased for those who canafford to pay. The to have far-reaching consequencesfor the dy- nationalized industrial sector maycontract mar- namics of the British economy. ginally. Economic policy in anumber of direc- whether Britain be- The economic perspectives ofthe British tions will be influenced by Government insofar as the public sectoris con- comes a member ofthe Common Market. cerned have been set forth in twodocuments New Policies for Public Spending(London: H.M. dealing with expenditures fordefense, overseas Stationery Office, October 1970,Cmnd. 4515) ;and (London: H.M. aid, the nationalized industries,education, the Public Expenditure 1999-70 to 1974-75 social services, and other areas ofdirect gov- Stationery Office, January 1971,Cmnd. 4578).

Chapter II.Cultural Factors

ness throughoutWales. A Scottish form of Ethnic and Linguistic Groups Gaelic continues to be spokenin a number of Most modern Britons are descendedfrom counties (including islands offthe coast) in the varied ethnic stockspre-Celts, Celts,Romans, west of Scotland. Anglo-Saxons, and Norsethat settled inthe Heavy immigrationoccurredduring the British Isles before the end of the 11th 'cen- 1950's and early 1960'sfrom India, Pakistan, tury. The last successful invaders werethe the West Indies, and Africa.The precise num- Normans, a branch of the Scandinavian Vik- ber of such immigrants is notknown, but a de- ings, who had settled in northern France,in- mographic study commissionedby the Runny- termarried with the French, and assimilated mede Trust estimatedtheir number in 1969 the French language and customs. They con- at 1.5 million, or about 2.9percent of the total quered England in 1066. The relative impor- population of Great Britain.This immigration tance of these various peoples in the ancestry has now been drasticallycurtailed. The Runny- of the present English, Scots, Welsh, andIrish mede Trust study estimates(on the basis of is at best a matter of speculation. assumptions relating to futureimmigration Over most of England and the lowlandsof and natural increase) thatby 1985 the non- Scotland the language that soon came to pre- white population may reachalmost 3 million." dominate was English, largely a blend of An- glo-SaxonandNorman-French.InWales, Religion Cornwall, the highlands of Scotland, and Ire- Britain has complete freedomof religious land, the use of Celtic languages persisted. belief and worship, despitethe existence of es- Even today, Welsh (a form of BritishCeltic) in tablishedchurchesinEnglandand is the first language of a substantialminority Religious freedom wasachieved of the population in Walesabout 26 percent Scotland.I5 at the time of the 1961 census. In 1967,the "Daily Telegraph (London),March 16, 1971. Welsh Language Act affirmed the equal valid- " Under the Welsh Church Actsof 1914 and 1919, the ity of Welsh and English in the administration Church in Wales andMonmouthshire were disestab- of justice and the conduct of governmentbusi- lished as of Mar. 31, 1920.

7 gradually from the 17th century onward. Her- The major "nonconformist" churchesare esy ceased to be a civil offense in 1677; protes- the Methodist, Baptist, Congregational,and tant dissenters were granted freedom of wor- theunestablished presbyterian churches ship in 1688; in 1828, political disabilities were throughout Britain, althoughmany other pro- removed from nonconformists to permit their testant faiths are represented. Theyare distin- appointment to public office; Roman Catholics guished from the established churchesby dis- gained political emancipation in 1829; Jews, tinctive convictions regardingorganization and by an act of 1858, were enabled to become worship. Historically, they have playeda role members of Parliament. Religious tests for in the development of working classconscious- prospective students and academic staff of the ness and leadership. universities of Oxford, Cambridge, and Dur- The Roman Catholic hierarchybecame tem- ham were successively removed in 1854, 1856, porarily extinct in England and Wales during and 1871. the 16th century. It was restoredin 1850. In The Church of England is an established Scotland, the hierarchy became extinctin the church. It repudiated the supremacy of the early part of the 17th century andwas re- Pope at the time of the Reformation in the stored in 1878. 16thcentury, butretainedtheepiscopate, The present Anglo-Jewish community dates creeds, and sacraments. Its form of worship is from 1656. The other major non-Christian embodied in the Book of Common Prayer, communities in Britain are composed of Mus- Which was first compiled in 1549. It is uniquely lims and Buddhists. related to the Sovereign, who must be a mem- There is no uniform method of measuring ber. Church of England archbishops. bishops, the number of adherents to the various and deans are appointed by the Sovereign on churches in Britain. Each church adopts its the advice of the Prime Minister, and all cler- own membership criteria. Questions relating to gymen take the oath of allegiance to the religious belief are not included in population Crown. The church has seats in the House of censuses or other official enumerations. The Lords, and must obtain the consent of Par lia- membership figures given iii the following tab- ti;ent to change its form of worship. The State Ulation for the principal denominations there- makes no direct financial contribution to the fore must be regarded as approximate: expenses of the Church as such, except for Payments to clergy for services conducted in England and Wales: such institutions as the armed forces. Church- Church of England '27,658,000 related schools of any denomination Roman Catholic 4,000,000 may be Methodist 759,000 wholly or partly maintained from public funds. Jewish 450,000 The Church of Scotland, also 'established by Baptist _ _ 281,000 law, has a presbyterian form of government Congregational 187,000 in effect, a hierarchy of courts rather than, as Scotland: in the episcopal form, a hierarchy ofpersons. Church of Scotland 1,200,000 It has complete freedom in all spiritual mat- Roman Catholic ters and the right to appoint its own officers 810,000 ' Number baptized, of whom about 10 million were and to decide all matters of disciple and doc- confirmed. trine. ' Including Scotland and Northern Ireland.

Chapter III.Social Factors

The Nature of the Society valued highly, change is accepted as the product of a democratic political process that itself The present British social system is marked represents adaptation to changing social and by a strong attachment to law, socialorder, economic forces over a long historical period. and individual rights. Although continuityis The British attachment to orderly processes

8 was well illustrated in the debate at the special ary level are not deterred by lack offinancial meetingoftheTradesUnionCongress means. (TUC) 16 on March 18, 1971, on the Govern- The gradations in the British social struc- ment's Industrial Relations Bill then before ture are complex and subtle. A titled aristoc- the Commons. (See chapter VIII.) The ques- racy of birth continues to exist. Probably most tion before the Congress involved the tactics to of its members are engaged in practical affairs, be used in opposing this measure. The mili- and in any case the aristocratic mystique must tants within the trade union movement favored be considerably diluted by the conferring by the use of massive strikes in an effort to force the Sovereign of life peerages and other hon- the government to withdraw the Bill. This use ors, largely for distinguished achievement and of the strike as a political weapon was opposed largely on the advice of the Prime Minister. by the General Council of the TUC and the The strong middle class stems from the mer- Council's tacticalposition(asdescribed in cantile and industrial revolutions of the 18th chapter VIII) was upheld. In the course of the and 19th centuries. As in the United States, debate, Mr. Victor Feather, General Secretary this is a highly complex and ill-defined but ex- of the TUC, observed: "The fact that a law is panding group. It embraces, in its broadest offensive to a particular grouping of people definition, all manner of white-collar occupa- does not entitle that grouping, no matter how tionsin its upper reaches, the more responsi- vast and important it is, deliberately to break ble levels of business management, the profes- the law. Trades unionist are not, either indi- sions, the higher civil service; beyond this, a vidually or collectively, above or outside the vast number of white-collar occupations re- law." 17 quiring varying degrees of education and train- Another characteristic of British society is ing. In remuneration, and increasingly in out- the persistence among all social groups of a look and mode of life, there is overlap between strong sense of individual identitya type of "middle" and "working" classes, the latter de- individualism that stems from a feeling of in- finedin terms of families whose principal dividual worth and dignity. One manifestation breadwinner is engaged in manual work. is the toleration ofand even affection for The British manual worker is the inheritor individual eccentricities. A sense of uniformity of a long tradition of industrial discipline. To a and regimentation, despite the pervasiveness of considerable extent he is the product, as in other countriez, of the conditions and circum- the welfare state, is lacking. stances of the industries in which he works. Social stratification certainly exists within Thus, the attitudes and outlook of coal miners the society. Social divisions are more pro- in Britain, as in the United States, are condi- nounced than in the United States, and upward tioned by life in isolated communities, and by mobility, although increasing, is not as great. the difficulties, dangers, and other characteris- The distance between the districts of Mayfair tics of work inherent in mining. Also differ- and Stepney in London is enormous when mea- ences are associated with theethnic character- sured in social and economic terms. Taxation istics of the English, Scots, and Welsh, and hasnoterasedsubstantialdifferencesin with the amazing number of identifiable eco- wealth and income. Most children of working nomic and social areas within the country. parents continue to go to work at the statutory Britain has a long tradition of craftsma school-leaving age (now 15), but an increasing ship in industry. The craftsman is aslril' proportion remain longer in school and univer- worker, often the product of a long apprentice, sity training is not now foreclosed to the ship; he has pride in his job and tends tobe re- bright boys and girls among them. Indeed, one sistant to technological or other forces that of the responsibilities of the local education threaten to dilute his skill. He has a long union authorities is to see that those students who tradition and a heritage of struggle for im- would profit from education beyond the secon, - proved job conditions and, more generally,for the extension of democratic rights.The semi- "See Chapter VIII for a description of the organiza- skilled worker often has earnings,particularly tion and activities of the TUC. the "Daily Telegraph (London), Mar. 19, 1971. under incentive systems, that are not, on

9 average, much below those of the skilled worker situation but also the remembrance of things in his industry. Wage differentials, as shown in past. Chapter XI, appear to be comparatively nar- row. Technological change, to the extent that it Education and Training has broken downskillrequirements,has broadened the opportunitiesforessentially Great Britain has virtually no illiteracy, al- semiskilled work. though as in any society, degrees of literacy Poitavar labor shortages associate,. th full vary. School attendance is compulsory between emp;oyment and relatively slow growth in the the ages of 5 and 15. In September 1972, the labor supply have resulted in an extension of school-leaving age is scheduled to be raised to opportunities for formal education and training age 16. Most children are educated in state- beyond the secondary school, and a more sys- supported schools, but public schoolsprivate tematic approach to training within industry. schools in U.S. terminologycontinue to play (On the latter, cee chapter IX.) The labor a significant educational role, particularly for market situation has provided entrance to bet- the children of upper income families. ter job opportunities for many workers and Publicly supported primary education began certainly for their children. At the unskilled about a hundred years ago in England and level, shortages have been met in part by Irish Wales with the passage of the Elementary Ed- immigration, an historic source of reserve ucation Act of 1870. The public provision of labor for British industry, and, until restric- secondary education began in England in 1902, tions were imposed, by immigration pVimarily but somewhat earlier in Wales. In Scotland, from India, Pakistan, and the West Indies. the educational system has a long history inde- Even so, labor market pressures have assured pendent of that in England, but today the same relatively large improvements in pay and other general educational policy is found throughout job conditions for those at the bottom of the Great Britain. However, some variations exist skill ladder. between England, Wales, and Scotland. The Conditions for the manual worker in Britain basic legislation that underlies current public have improved enormously compared with 35 policy is the Education Act of 1944, for Eng- years ago. His income, especially if there is land and Wales, and the Education (Scotland) more than one earner in the family, provides a Act of 1962. margin for some of the amenities of life. He Responsibility for educational administra- has reasonable expectations of stable employ- tion is shared by the national and local government, or of alternative employment if he loses ment authorities, and to some extent, by vari- a particular job. And he has a measure of in- ous voluntary organizations. Central govern- come protection, through a comprehensive na- ment responsibility for all aspects of education tional social insurance system and the National in England and Wales (and for universities Health Service, against the major hazards of throughout Great Britain) is lodged with the industrial life. Through his trade union, he has Secretary of State for Education and Science, a voice in determining the conditions under who presides over the Department of Educa- which he works, and protection against unfair tion and Science."' The Department does not ac- treatment on the job. He is less locked into a tually run any schools, engage teachers, or particular status in the social order. prescribe text books or curricula. Its responsi- Nevertheless, social barriers exist and are bilities do include the establishment of mini- reenforced by some factors that are not pre- mum edutational standards; control over phys- sent, at least to the same extent, in the United ical educational plant and of teacher training States. One of these is language, that curious and supply; the setting of standards for the dichotomy between manual (and even lower "The Education Office for Wales, which is part of white-collar) worker dialect or dialects and the Department but located in Cardiff, is responsible the King's English of the established middle for the administration of education in Wales and and upper classes. Feelings of class conscious- Monmouthshire. The Secretary of State for Scotland. acting through the Scottish Education Department, has ness or of class solidarity are still compara- responsibility for the central administration of public tively strong, reflecting realities in the present education in Scotland, except for the universities.

10 qualification of teachers; and the administra- fifth grade in the United States. In Scotland, tion of negotiated salary scales and of a retire- the primary stage typically is from age 5 to 12. ment pension plan for teachers. It plays n role Secondary schools are of several types. In in the provision of central government finan- England and Wales, the "grammar" school cial support for schools; supports educational (broadly geared to the requirements for uni- research; and, through H.M. School Inspec- versity entrance) and the "modern" school tors, is responsible for the inspection (for the (providing a broad general education required content and value of the education provided) by the majority of students who leave school at of all schools, including independent schools, 15) are being replaced increasingly by the administered by localeducation authorities "comprehensive" school, which offers a full throughout the country. range of instruction for all secondary school The local education authorities are responsi- pupils in a district. Technical(vocational) ble for the adequate provision of primaryand schools are found in some districts. The alloca- secondary education in their areas, and forthe tion of children among grammar, modern, and provision of further educationa ,broad term technical schools has typically been based upon that includes full-time or part-timevocational the results of tests taken at about age 11 or nonvocational work intechnical colleges, (known as the "Eleven Plus"). Comprehensive agricultural colleges and institutes, adult edu- schools take pupils without reference to abil- cational classes and institutes, etc. School curity, but their internal organization can provide riculums are under the control of the local edu- for groupings based on student ability and in- cation authorities; considerable responsibility terest. Secondary educationinScotlandis is placed on the schools themselves. Inthis being organized increasingly along comprehen- area, teachers may seek help andadvice from sive lines. H.M. Inspectors of Schools. Educational statistics differ somewhat be- Three types of schools in England and Wales tween England and Wales, on the one hand, are supported by publicfunds: (1) county and Scotland on the other. In England and schools, which are maintained by local educa- Wales, 99.8 percent of the estimated child pop- tion authorities wholly out of public funds ; ulation aged 5 to 14 (7.3 million) were full- (2) voluntary schools, usually provided by a time pupils as of January 1969; 95.4 percent religious denomination 29; and (3) direct-grant were attending publicly supported schools.At schools, a comparatively small group which age 15, the school population as a proportion of are independent of local educationauthorities the school age group falls sharply. In 1969, about 25.3 percent of the group aged 15-19 but receive a grant-in-aid from the Department full-time, mainly in of Education and Science. In Scotland, most of were attending school state-supported schools. The proportionsin the schools are supported from public funds Scotland were similar. provided directly by the education authorities. It has long been customary for the children Funds for schools are derived from rates (local of working class parents to leave school at the real estate taxes) and from central government statutory school-leaving age. During recent grants. years, however, an increasing proportionof In England and Wales, a child enters pri- children aged 15 and over have remained in mary school at age 5 and normally completes school. Thus, in England and Wales the pro- the primary stage at the end of the school year portion of children aged 15 and over " attend- in which his 11th birthday falls. This point ing publicly supported schools increased from corresponds approximately to the end of the 12.6 percent in 1959 to 23 percent in 1969. The School Health Service provides medical - "Over one-third of the 28,500 schools maintained by inspection and arranges, usually in cooperation local education authoritie; in England and Wales a e with the National Health Service, for free voluntary schools, mostly Church of England, buin- medical and dental treatment for all children cluding about 2,400 Roman Catholic schools and some schools of other religious bodies. The local education attending schools maintained by local educa- authority is responsible for the running costs of all tion authorities. Milk is given free to children voluntary schools and for the cost of all building work at some voluntary (so-called "controlled") schools. Percentage of age group 15-19.

11 in primary and special schools (special schools engineering and technology(16.1 percent) ; are those for children suffering physical or language and literature (12.2 percent) ;and mental disabilities), and the Schools Meal Ser- medicine, dentistry, and health (10 percent). vice provides a midday meal at a subsidized British industry has a long tradition of on- price (remitted in case of need) to about 70 the-job training. Historically, apprenticeship percent of the pupils in England and Wales has played an important role in developing and 49 percent in Scotland in education au- trained workers for skilled occupations, al- thorities schools. though the quality of apprenticeship training Extensive facilities exist for further, chiefly has often beencalledin question. During vocational, education for young people who World War II, methods of recruiting and leave secondary school at 15 years or at a later training apprentices and juveniles were inten- age. In England and Wales in the 1968-69 sively discussed, and were made the subject of school year, 7,968 establishments for further a large number of national labor-management education, including 7,235 evening institutes, agreements in the immediate postwar years. were maintained or assisted by local education Organized short-term training programs for authorities or were in receipt of direct grants other than the skilled trades were provided by from the central government. These facilities some large firms, but by few medium-sized or were attended by about 716,000 students aged small enterprises. There were few facilities for 15-17 and approximately 552,000 aged 18-20. off-the-job training. Most of these students were attending on a Concern with industrial trzining, not only part-time basis during the day or in the eve- for manual jobs, but for office, technical, and ning. The part-time day students (aged 15-20) supervisory work as well, became more pro- included more than 600,000 released by em- nounced as the postwar period lengthened. This ployers during working hours. was a response to labor shortages in numerous Almost 250,000 adults in England and Wales types of employment, and to the need for labor were registered for courses organized by uni- force adaptation to the dynamics of change in versity °xtra -mural departments and certain technology, consumer demand, and other forces voluntaIi bodies (e.g., the Workers' Educa- affecting occupational requirements in indus- tional Association) in 1969. try. In 1962, the Government published a Great Britain now has 42 universities: 33 in White Paper on industrial training,22 and this England, one in Wales (which includes four was followed by the Industrial Training Act, university colleges), and 8 in Scotland." Uni- 1964. The general purpose of the Act was to versity facilities and enrollment during recent expand systematic programs of training within years have expanded substantially. Nineteen industry and to improve the quality of train- universities have received their charters since ing. It sought also to secure a better distribu- 1960, and university enrollment more than tion among firms of the costs of training. doubled between the 1958-59 and the 1968-69 The act gave authority to the Secretary of academic years. In the latter year, there were State for Employment to establish by order In- 211,488 full-time students in universities in dustrial Training Boards on an industry basis. Great Britain, including almost 8,000 from By early 1971, 28 boards were in existence; the other Commonwealth countries and about an industries concerned contained more than a equal number from foreign countries. millionestablishments and15,000,000 em- More than four-fifths of the full-time uni- ployees. The industries were as follows: versity students in the 1968-69 academic year Agriculture, horticulture, and forestry were concentrating infive broadfields of Air transport and travel study : science (25.9 percent) ; social, adminis- Banking, insurance, and finance trative, and business studies (19.6 percent) ; Carl... Ceramics, glass, and mineral products " There are a number of other institutions where work Chemical and allied products is of university standard, including two post-graduate business schools supported jointly by industry and the ' Industrial Training: Government Proposals (Lon- Governmentthe Manchester Business School and the don :H.M. Stationery Office, December 1962, Cmnd. London Graduate School of Business Studies. 1862).

12 Clothing and allied products Although the training boards have a consid- Construction erable measure of autonomy, they must work Cotton and allied products within the framework of training programs Construction that have been proposed to and approved by Cotton and allied textiles Distributive the Secretary of State for Employment. Sepa- Electricity supply rate proposals must be submitted for the rais- Engineering ing of levies (see' below) on industry to sup- Food, drink, and tobacco port the training effort. The.Secretary of State Footwear, leather, and fur skin can declare a board in default, and appoint Furniture and timber new members, if he believes it is not working Gas Hotel and catering effectively. Iron and steel The cost of the programs developed by the Knitting, lace, and net industry training boards, which is substantial, Man-made Ober products is financed largely through levies upon the in- Paper and paper products dustries concerned. Each board determines the Petroleum Printing and publishing rate of levy for its own industry, subject to the Road transport approval of the Secretary of State and after Rubber and plastics processing the proposal has been laid before Parliament. Shipbuilding The rates vary considerably among industries, Water supply but average roughly about one percent of pay- Wool, jute, and flax roll. Every employer in industries for which Board members are appointed by the Secre- levies have been approved, unless specifically tary of State after appropriate consultation exempted (typically small firms), is required with the parties concerned. Each board has a to pay the specified levy. For the 1967-68 finan- chairman and in some cases a deputy chair- cial year, the 17 industry training boards then man, an equal number of employer and trade collectingleviesraised about £130 million union members, and a number of professional (US$312 million) ; of this amount, more than educators. Representatives of the Department £125 million was returned or earmarked for of Employment, the Department of Education return by the boards to firms in the form of and Science, and the Scottish Education De- grants for training employees." In addition to partment attend meetings of boards, but have income from levies, the Secretary of State for no vote. A Central Training Council advises Employment has authority to make grants or the Secretary of State on the exercise of his loans to training boards up to a limit of £50 functions under the Act, examines training is- million. sues of major importance, and prepares state- It is believed that the boards, although in ments and memoranda for the guidance of operation for a comparatively short time, have training boards." made positive contributions to job training. Industry training boards have two main du- For example, considerable progress has been ties. The first is to ensure that sufficient train- made in developing flexible schemes of training ing is provided. The second is to issue recom- for craftsmen. In many instances, the period of mendations on such matters as the nature, con- training has been reduced from five to four and tent, and length of training for occupations in in some cases to 3 years. Many programs for their industries. A board can provide its own craft training recommend periods of broadly training courses, or arrange for the provision based training (6 to 12 months) in which the of training by other organizations. The princi- basic skills and knowledge of the craft are ac- pal focus, however, is on training within indus- quired, followed by training, associated educa- try, and boards have the authority to make grants toward the cost of training to individ- " Each board must submit an annual report of its ual employers with approved programs. activities, including an audited statement of accounts. See, for example, Paper and Paper Products Industry "Copies of statements and memoranda released by Training Board, Report and Statemen# ,f Accounts for the Central Training Council are available from the the Year Ended 31st March 1970(London, H.M. Department of Employment. Stationery Office,1970).,

13 tion, and planned experience in the specialist pears to have increased the quantity of train- skills. The Engineering Board pioneered this ing offered. system, which has become known as the modu- The National Government itself has increased lar system. Its general principles have been its direct role in job training in recent years. In adopted by a number of other boards. The Con- early 1971 it operated 55 Government Training struction Board, for example, has grouped a Centers offering instruction in a wide range of number of trades (e.g., the trowel trades) and skilled trades. It has a program of instructor has recommended basic training with asso- training with an annual output of about 3,000 ciated further education for activities common instructors. It offers a variety of courses for to all trades in the group. supervisors in leadership, instruction, improve- Most of the boards support training and re- ment of work methods, and accident preven- training programs for operatives, both for ad- tion. As pointed out in the section on "Hiring" ults and juveniles. The training of office staff (chapter IX), itoperates special vocational has received attention from some boards. In- training and rehabilitation programs for the creasing emphasis has been placed on manage- disabled, and for those who need industrial re- ment and supervisory training, and most boards orientation after recovery from mental or phys- have set up special committees to devise recom- ical illness. mendations in this area. Considerable attention also has been given to the training, largely Living Conditions through educational institutions, of officers and instructors who will be responsible for training Money wages and salaries in Great Britain, programs in individual firms. when converted at the current rate of ex- The program launched by the Industrial change,are markedly lowerthaninthe Training Act has some unique and imaginative United States. (See Chapter XL) The differ- features. It is intended to result in a systematic ence in real incomes, although still substantial, and sustained job training program through- is not as great as money measures would sug- out much of British industry. The first ingest. There are formidable difficulties in mea- dustrial training board was set up in June suring differences in the cost of equivalent 1964, and most boards have been in operation standards of living between two countries." The available evidence indicates that costs, on for only 4 or 5 years. It is estimated as of 1971 the average, are lower in Great Britain, but that about 1.4 million workers, including more not sufficiently so as wholly to offset money than half a million apprentices, are undergoing differences. training at any ore time, an increase of about Information on the ways in which house- 16 percent over the number in 1964 holds in Great Britain allocated their incomes It is no doubt still too soon to make any kind in 1969 is available from a sample survey of of definitive assessment of the value of the in- family expenditures in that year. The 7,008 dustry training boards system. The program households in the sample averaged 2.96 persons has its critics." In the summer of 1970, the Sec- per household. The average weekly family in- retary of State for Employment announced come was £32.47 (US$77.93) before taxes, and that a review of the activities of the boards average expenditures on goods and services would be undertaken, but the results of this were £26.35. The allocation of these expendi- study are not yet available. The program un- tures is shown in summary form in table 3. doubtedly has stimulated fresh thinking on the Although close comparison probably is not problem of job training at all levels,26 and it ap- warranted, the average family in Great Britain clearly spent a smaller proportion of itsin- "See, for example, Dennis Lees and Brian Chiplin, come-12.4 percenton housing than the aver- "The Economics of Industrial Training," Lloyds Bank Review, April 1970, pp. 29-41. " For estimates at various periods, see E. H. Phelps "See the report of a conference of trade union mem- Brown and Margaret H. Browne, A Century of Pay: bers of training boards held on January 16, 1969, in The Course of Pay and Production in France, Germany, Industrial TrainingSince the 1964 Act(London: Sweden, the United Kingdom and the United States, Trades Union Congress, 1969). 1860-1960 (London: Macmillan, 1968).,

14 TABLE3.PERCENT DISTRIBUTION OF AVERAGE WEEKLY major, although fluctuating, role in postwar HOUSEHOLD EXPENDITURES, 1969 housing construction." The capital cost of local Distribution authority housing is met from loans; current Commodity or service ( in percent) expenditure, including loan repayment and in- Total 100 0 terest on loans,is met from rents supple- 124 Housing . _ _ Exchequer Fuel. light, and power 6.6 mented by subsidiesfromthe Food 26.1 Alcohol drink 4.3 and, in some cases, from local taxation. In Tobacco 5.1 1969, almost 367,000 housing units were built Clothing and footwear 8.9 Durable householdgoods 6.3 in Great Britain. About 47 percent of these Other goods - --. 7.2 13.9 Transport and vehicles _ were for local housing authorities, and most Services . 89 Miscellaneous . .3 contained two bedrooms or more, In the selec- Sounen: "Family Expenditure Survey. 1969,"Emp oyment and tion of tenants for council dwellings,local Produrtivito Gazette, November 1970. pp. 1026-1027. authorities must give preference to families age family in the United States. This probably living in overcrowded or unsatisfactory condi- reflects widespread subsidization of public hous- tions. Rents are generally low in comparison ing rents for low-income families, and rent con- with current building costs, and many authori- trol over most privately rented unfurnished ties operate rent-rebate schemes under which dwellings.v On the other hand, Britons spent a tenants with low incomes or large families can somewhat larger proportion of their family in- claim a reduction in the standard rent. comes on food. Proportionately, expenditures By no means all housing, of course, is satis- for transportation were about the same. Ex- factory. During the first decade after the war, penditues on alcoholic beverages and tobacco almost exclusive emphasis was placed on new were relatively much higher in Britain, and on construction to relieve severe shortages. Slum apparelsomewhatgreaterintheUnited clearance programs began in the mid-1950's, States. and about 2.25 million people have been re- In general, the standard of living is high housed since then as the result of these pro- compared with prewar standards, and it is im- grams. It is expected that within the next10 proving. Starchy foods make up a smaller pro- years local housing authorities in GreatBrit- portion of the average diet than formerly. The ain will succeed in eliminating their present consumption of poultry, vegetables, and butter slums, except in some of the older industrial has increased over the past decade. Sweets and cities,suchas Birmingham and Glasgow. confectionery are consumed in relatively large Housing authorities are obligated to see that quantities. Tea remains the national beverage, other accommodation exists or can be provided but the consumption of coffee has increased forpeopledisplaced from slum clearance greatly. areas. The average dwelling unit in Britain has 4.7 In tackling the housing problem, imagina- rooms; virtually all units contain either a bath tive effort has gone into town and country or a s1 ower; and the average number of per- planning. One result has been the creation of a sons per room is 0.6. On the basis of compara- significant number of new towns to encourage tive European statistics, overcrowding in Brit- the transfer of population and industry from ain is lower than in most other countries. congested urban areas.Presently, 22 new England and Wales had 18.5 million dwell- towns have been or are being established in ings and Scotland 1.7 million, about half of England and Wales and 5 in Scotland. Nine of which are owned by their occupiers. Between the new towns in England are in the Southeast 1945 and March 1969, well over 6 million new region, which includes London. houses and flats were built. Most of these were Rent controls, which have been modified a houses, usually of two stories; the remainder number of times during the postwar period, were flats or maisonettes. undoubtedly have had the effect of reducing Public sector or council housing (housing "Most of the housing built in the first decade after built by or for local authorities) has played a the war (to about 1954) was for local housing authorities; thereafter, a shift to construction for private " Rent control legislation was 9nsolidated in the Rent owners occurred, although public housing construction Act, 1968. remained important.

15 the supply of private rental dwellings, and have private study estimates that, for the year end- had some adverse effects on labor mobility. ing June 1968, certified sickness for people in Durable goods consumption has increased employment represented a loss of 3.7 percent markedly during the postwar period as real in- of all working time, and accounted for about 70 comes rose. In 1969, 51 percent of British percent of absenteeism.32 The lost-time percent- households had the use of one or more automo- age would be raised by the addition of short- biles; 63 percent possessed washing machines; term uncertified absence. 60 percent had refrigerators; 91 percent had Great Britain has a well-organized public television sets; and 32 percent either had ex- health service. Industrial health an safety re- clusive use of, or shared, a telephone. ceive marked attention. (See chapter XII.) Medical, dental, and hospital care is available Health Conditions to the entire population through the National Health Service. (See chapter XIII.) The general health of the British population, as gaged by several indicators, is at least Women and Children on par with health in the United States and other countries in the West. The life expec- Women play an active role in all aspects of tancy at birth of males in England and Wales British life. They occupy places in Parliament, is 68.7 years; of females, 74.9 years." Thecor- in Government administration, and, increas- responding figures for Scotland are 67.1 years ingly, in business management. They play a no- and 73.2 years, respectively. In the United table role in education, literature, and the arts. States, life expectancy (1967) was 67 years for Somewhat more than one-fourth of full-time males and 74.2 years for females. university students are women. In 1969, infant mortality (deaths of infants In 1969, women and girls represented 35.8 under 1 year of age per thousand live births) percent of the total working population in was 18 in England and Wales and 21.1 in Scot- Great Britain, and 37.4 percent of the total land. In the United States, the corresponding number of employees. About 59 percent of the figure in 1967 was 22.4. female employees were married. Women and Of the 575,884 natural deaths in Great Brit- girls accounted for 31 percent of the employees ain in 1967, about three-fourths were attrib- in manufacturing; concentrations are great in uted to four broad causes. Arteriosclerotic and clothing and footwear, textiles, food, drink, to- degenerative heart disease was the single most bacco, and in some branches of engineering. important cause (29 percent). Various forms They represented more than half of the em- of cancer constituted the second most impor- ployees in the distributive trades, finance, pro- tant cause (21 percent). Strokes (vascular lei- fessional and scientific services (including edu- sons affecting the central nervous system) and cation), and in miscellaneous services. respiratory ailments accounted for 15 and 11 Married women form the only substantial percent of the deaths, respectively. labor force reserve, and the Government is Of the identifiable infectious diseases, the concerned to red'ice obstacles to the employ- most numerous in 1969 were dysentery (27,419 ment of those who are willing to work. This cases) scarlet fever (17,704 cases), and tuber- interest arises in particular from projections culosis (14,195 cases). of the working populations which, for various In 1969, about one million insured persons demographic reasons, may actually fall during were absent from work owing to sickness." A the first half of the 1970's. (See chapter IV.) This labor market situation should contrib- Using Life Table, 1967-69. ute to the implementation of the Equal Pay " Under thenationalinsurance system,sickness Act, 1970. This act does not come into force benefit is not generally payable for the first 3 days unless the illness lasts for a fortnight. It is normally until December 29, 1975, and is designed to not paid to retired people after age 65 for men and '0 eliminate, discriminationbetween men and for women, except for men between 65 and 70 and women with respect to pay and other terms women between 60 and 65 who are still working and who would have qualified for pension on their own Bureau of Health Economics, Off Sick (T,ondon, insurance if they had retired. 1970).

16 and conditions of employment. This end is to under (1) may be referred to an Industrial be achieved in two main ways: (1) by estab- Tribunal " for decision. lishing the right of the individual woman to The act applies to government as well as pri- equal treatment when she is employed (a) on vate employment, and represents the culmina- work of the same or of a broadly similar nation of a long campaign to secure nondiscrimi- ture to that of men or (b) in a job which, natory conditionsf employment for women. though different from those of men, has been given an equal value under job evaluation; and Child labor does not appear to be a problem (2) by providing for the Industrial Court 31 to in British industry, and the welfare of chil- remove discrimination in collective agreements, dren is a matter not only of familial but of employers' pay structures, and statutory wages broad social concern. The hours of employment orders which contain any provisions applying of women and young persons in industrial specifically to men only or to women only and work are regulated by the Factories Act, 1961. which have been referred to the Court. Any (See chapter X.) disagreement between an employer and an individual woman worker in regard to her rights This term is defined in Chapter VIII.

napter IV.Manpower Resources

Population and Labor Supply TABLE 5.GREAT BRITAIN:AGE DISTRIBUTION OF HOME POPULATION,' 19702 At mid-year 1970, the estimated population Number in thousandsl Total Male Female of Great Britain was 54,187,000. (See table 4.) Age in years Females outnumbered males by about 5 per- NumberPercentNumberPercentNumberPercent 27.859 100.0 cent. Between 1961 and 1970, the population Total- 54,187 100.0 26.328 100.0 Under 15 12.941 23.9 6.636 25.2 6.305 22.6 increased by 2.9 million, or at an average an- 61.8 15-64 . 34,264 63.2 17,035 64.7 17.229 nual rate of substantially less than 1 percent 6i andover 6.982 12.9 2.657 10.1 4,325 15.5 Excluding members of H.M. Forces serving overseas. but includ- (about 0.6 percent). Population growth oc- ing Commonwea th and foreign forces in Great Britain. curred almost entirely in England and Wales; Midyear est mate. Souitiu: Central StatisticalOffice.Monthly Digest of Statistics, the population of Scotland barely held its own. February 1971. table 11. The increase in population during this period lation, therefore, was in the productive age was due largely to natural increase. The excess groups. This proportion differed somewhatfor of immigration over emigration was very small. males and females, separately. The female pop- In 1970, almost 24 percent of the population, ulation contained a significantly higher propor- as table 5 shows, was 14 years of age or tion of persons in the aged 65 and over group, younger (thatis,below theschool-leaving and correspondingly smaller proportions in the age). At the upper end of the age distribution, lower age groups. almost 13 percent of the population was aged 65 The population is highly urbanized; about or over. Roughly about two-thirds of the popu- 78 percent are estimated (in mid-1969) to live in urban districts. More that one-third lived in TABLE 4.GREAT BRITAIN: HOME POPULATION,' 1961 seven"conurbations,"definedasareasof AND 1970 urban development where a number of sepa- Sex composition 1961 1970 rate towns have grown into each other or have Total population 51.284.000 54.167,000 become linked by such factors as common in- Male 24,787.000 26.328,000 dustrial or business interests. By far the larg- Female 26.498.000 27.R 19.000 est of these is Greater London, -vith an esti- Excluding members of H.M. Forces serving overseas. but including Commonwealth and foreign forces in Great Britain. mated population of 7.7 million. The other con- Census of Population Midyear estimate. urbations are, in England, the West Midlands, Souses,: Central StatisticalOffice. Monthly Digest of Statistics. West Yorkshire, South East Lancashire, Mer- FiffirrAry1071. table 10.

17 seyside, and Tyneside; and Central Clydeside in TABLE 7.GREAT BRITAIN: DISTRIBUTION OF EMPLOYEES Scotland. Regionally, almost a third of the BY INDUSTRY GROUP,' JUNE 1969 population of Great Britain is located in Number of employe-es South East, which includes London. Industry group (in thousands)Percent

The working population in March 1970, in- Total - ...... 22,600 100 0 cluding H.M. Forces, numbered 25,145,000. Agriculture, forestry, and fishing 391 L7 Mining and quarrying . 442 2,0 (See table 6.) Slightly more than two-thirds of Manufacturing - 8,741 38 7 Construction _ 1,446 6.4 the labor force were male. Civilian employ- Gas, ,-lectricity, and water . 397 18 Transport and communication 1,152 6.9 ment, at 24,169,000, included 22,425,000 per- Distributive trades . 2,702 12.0 Insurance, banking, finance, and business sons classified as wage earners and salaried services 893 4.0 Professional and scientific services 2,774 1? 3 employees, and 1,744, 000 as employers and Catering, hotels, etc. . 589 2.6 Miscellaneous services _ 1,796 5.7 self-employed.H.M.Forcesaccountedfor National government service 2 518 2.i 374,000,andthewhollyunemployedfor Local government service 820 36 602,000. ' On basis of 1968 Standard Industrial Classification. = Mainly white-collar workers. The total working population declined be- NOTE: Because of rounding, sums of individual items may not eitial tween 1966 and 1969. Because of the effect of total. SOURCE: Central Statistical Agency. Monthly Digest of Statistics. lower birth rates in the early 1950's and of im- February 1971, table 15. ,.iigrationrestrictionsimposedduringthe 1960's, no net growth in the working popula- percent of the employees were engaged in tion is expected between 1967 and the mid- manufacturing. (See table 7.) The distributive 1970's. Indeed, the rise in the school leaving trades and professional and scientific services age in 1972 may result in a smaller working were roughly of equal importance as sources of population in 1973-76 than in 1967. After employment, each with about 12 percent of the 1976, annual growth in the working population total.- Almost 7 percent of the employees were is expected to resume, but at a relatively slow engaged in transport and communication, and rate. over 6 percent in construction. Less than 2 per- As in the United States, women constitute an cent were occupied in agriculture, forestry, and increasing proportion of the working popula- fishing. tion. The increase over the period from June Insightinto the industry composition of 1962 to June 1969 was from 34 percent to 35.8 manufacturing employmentisprovided by percent. Almost three-fifths of the employed table 8. The great importance of the engineer- women and girls were married. ing industries is readily apparent. Mechanical, About 10 percent ofallemployees were instrument,andelectricalengineering,toyoung persons (aged 15-19), and almost 3 per- gether with shipbuilding, vehicles, and metal cent were 65 years of age and over. In 1970, an goods,notelsewhereclassified,employed estimated 750,000 Indians,Pakistanis, and 3,882,800 workers, or 44.4 percent of the man- Negroes were in the working population." ufacturing total.Metal manufacture(basic The continuing industrialimportanceof iron and steel, aluminum, copper, etc.)ac- Britain is reflected by the fact that almost 39 counted for 6.7 percent of the workers in factory employment. Other industry groups with TABLE 6.GREAT BRITAIN : WORKING POPULATION, MARCH 1970' more than 5 percent of manufacturing employment each were food, chemicals, textiles, cloth- Employment category Number (in thousands) ing and footwear, and paper, printing, and Working population 25.145 Males 16,140 publishing. Females 9,004 For manufacturing as a whole, about 26 per- Civil employment 24,169 Employers and self-employed 1,744 cent of the employees in 1969 were engaged in Wave earners and salary employees 22.425 administrative, technical, and clerical occupa- H.M. Forces and Women's Services 374 Unemployed 602 tions. In the engineering and related industries I Not adjusted for seasonal variation. in 1969, the proportion of administrative, tech- SOURCE: Central StatisticalOffice. Monthly Digest of Statisttcs. February 1971, table 11 nical, and clerical personnel, at 29.6 percent, 34Speech by Mr. Paul Bryan, Minister of State for was somewhat higher than for manufacturing Employment, Times (London), September 30, 1970. as a whole. (See table 9.) The proportions of

18 TABLE 8.GREAT BRITAIN: DISTRIBUTION OF EMPLOYEES TABLE 10.GREAT BRITAIN: UNEMPLOYMENT RATES,' BY MANUFACTURING INDUSTRY GROUP,' JUNE 1969 1960-70

Number Percen .ge unemplo yed Industry group 2 (in thousands) Percent Year rotal Males Females Total 8,740.8 100.0 1960 1.6 1.8 1.3 Food, drink, and tobacco 849.6 9.7 1961 1.5 1.7 1.1 Coal and petroleum products 58.0 .7 1962 2.0 2.3 1.4 Chemicals and allied industries 470.4 5.4 1963 2.5 3.0 1.6 Metal manufacture 584.6 6.7 1964 1.6 1.9 1.1 Mechanical engineering 1,180.6 13.5 1965 1.4 1.7 .9 149.6 1.7 1966 .... 1.5 1.9 .9 Instrument engineering 1.3 Electrical engineering ------903.4 10.3 1967 2.4 3.0 Shipbuilding and marine engineering . 189.5 2.2 1968 2.4 3.2 1.1 9.5 2.4 3.3 1.0 Vehicles...... _ ..... 827 2 1969 2.6 3.6 1.0 Metal goods. n e.c. . _ 632.5 7.2 1970 Textiles 696.2 8.0 Leather, leather goods, and fur 56.7 .6 'Includes school leavers and those temporarily stopped. Clothing and footwear 501.3 5.7 Bricks, pottery, glass, etc. 344.9 3.9 SottcE: Department of Employment Gazette, February 1971, tables Timber. furniture, etc. 307.9 3,5 104-106. Paper, printing, and publishing 641.3 7.3 347.1 4.0 Other manufacturing was for 1970. The highest female rate (1.6 per- 20n basis of 1968 Standard Industrial Classification. For estimates of employment for detailed manufactur nu indus- cent) occurred in 1963. The male rate has been tries. see Central Statistical Agency, Annual Abstract of Statistics, 1970. table 135. consiutently above the female rate, reflecting in Nov,: Because of rounding, sums of individual Items may not part the fact that male employment is more equal total SOURCE Central Statistical Agency. Monthly Digest of Statistics. highly concentrated in industries (e.g., manu- February 1971. table 16. facturing, mining, railroading) and occupa- skilled and semiskilled workers were similar tions(e.g., manual) where unemployment is for the group of industries and together repre- more likely to occur. Possibly, jobless males sented 54.9 percent of total employment. The are more likely to register at the employment "other" category-15.7 percent of the total- exchanges, which provide the basic source for presumablyconsistedmainlyofunskilled the unemployment counts. workers. The national unemployment rate conceals During the entire postwar period, labor re- significant regional variations. In 1970, for ex- quirements have pressed heavily on manpower ample, the total unemployment rate varied in resources. This pressure has been reflected in England from 1.6 percent in the important extremely low rates of unemployment during South East region to 4.8 percent in the North- most years in the period. Table 10 shows un- ern region. Scotland (4.3 percent) andWales employment rates, separately for males and fe- (3.9percent)alsohadratessignificantly males, for the years 1960-70. The highest an- higher than the national average. On the other nual rate of total unemployement (2.6 per- hand, rates in East Anglia (2.2 percent) and cent), and for males separately (3.6 percent), the Midlands (2.3 percent) were relatively low. British and United States unemployment TABLE 9.GREAT BRITAIN : PERCENTAGE DISTRIBUTION OF rates are not closely comparable because of dif- EMPLOYMENT IN ENGINEERING AND RELATED INDUSTRIES BY OCCUPATIONAL GROUPS, MAY 1969 ferences in concepts, definitions, and collection methods.35 On balance, British procedure:, com- Percentage of Total employed employmentin- - pared with those in the United States, appear Ad. to yield somewhat lower rates. It has been esti- min- istra- mated, for example. that the British national industry tive,Skilled NumberPer-tech-opera-Semi-Oth- unemployment rate of 2.4 percent for 1969 centnical, tivesskill' em and would have been 3.7 percent if adjusted to clerical United States concepts and procedures." Nev- All industries 3.611 100.0 29.6 27.7 27.2 15.7 1 ertheless, the British unemployment statistics Engineering and electrical goods 2,127 100.0 33.1 26.9 26.2 13.9 (and related statistics on unfilled notified job Shipbuilding and marine engineering - 147 100.0 19.7 53.7 10.2 17.0 Vehicles 803 100.0 28.0 28.4 27.4 16.7 Metal uoods.n.e.c. 534 100.0 20.8 22.5 35.4 21.5 "See Joseph S. Zeisel, "Comparison of British and U.S. Unemployment Rates," Monthly Labor Review, ' Apprentices and others being trained included in occupational vroups shown. May 1962, pp. 489-501. Nom: Because of rounding, sums of individual items may not "ConstanceSorrentino,"Unemployment inthe equal totals. United States and Seven Foreign Countries," Monthly Sorit3: Central Statistical Office. Annual Abstract of Statistics, 1970, table 132. Labor Review, September 1970, pp. 12-23.

19 vacancies) provide much insight into the con- develop new or higher skills. In general, stud- dition of the labor market. ies in the United States have shown that the i degree of labor mobility is related directly to National Service System factors such as age, family responsibility, and education. As of the end of June 1969, H.M. Forces Statistics on the various aspects of labor mo- (including the Women's Services) numbered bility(geographic,industrial,occupational) 380,000. Of this number, 172,000 were in the appear to be lacking in Britain. Certain re- Army; 108,000 in the Royal Air Force; 85,000 gions (Scotland, Wales, and the North, North in the Royal Navy and Royal Marines; and West, and Yorkshire-Humberside regionsir. 14,000 in the Women's Services. Service man- England) have experienced a relative loss of power in 1969 accounted for about 1.5 percent population during the postwar period. Other of the working population. regions (the East and West Midlands, East The strength of the regular Forces is main- Anglia, the South East, and the South West) tained through voluntary enlistment. The reg- have made relative gains. In general, expanding ular Services are backed up by various reserve industries have been able to recruit the addi- and auxiliary forces. For example, the Regular tional labor required, and labor has flowed Reserve of the Royal Air Force consists of into expanding occupations through the normal former full-time officers and airmen, a few of operation of the labor market, including the whom are detailed for specific tasks in emer- work of such labor market institutions as the gency; the remainder have a statutory liability employment exchange system and special em- for recall. The Royal Auxiliary Air Force and ployment and counseling services for youth. the Royal Air Force Volunteer Reserveare lia- The government has several programs cal- ble for part-time training and for recall inan culated to increase labor mobility. One of these emergency. isasystem ofgrants and allowancesto Young recruitstothe noncommissioned workers who are unemployed (or who will be ranks of the regular Services, in addition to "redundant" 3R within 6 months) and who take basic military training, are given the opportu- jobs beyond daily traveling distance of home. nity to qualify by examination for the General Financial assistance for a worker with depen- Certificate of Education at "0"or "Ordinary" dents who settles permanently in a new area level. Passes in various subjects in this exami- includes the cost of the removal of household nation are widely accepted for entry tocourses goods, incidental expenses, dependents' fares, of vocational training. Moreover, trade and and assistance with the sale or purchase of a technical training for Servicepurposes fol- house. Regardless of dependents, a worker who lowed by experienceisrecognized in many takes employment in a new area may be enti- cases by trade unions as a qualification for tled to certain types of assistance, such as free membership by men who have left the Service. fare to the new location and a small settling-in grant. If the worker continues to maintain de- Special Characteristics of the Work Force pendents in the original area, hemay be provided a lodging allowance and partial payment

Adam Smith observed longago that ".. . of fares for visits home. There are, of course, man is, of all sorts of luggage, the most diffi- rules of eligibility for these types of assistance. cult to be transported." 37 Obstacles togeo- The program is administered through theem- graphic mobility, to which Smith had particu- ployment exchanges. lar reference, arise from attachment to family The government within recent years also has and friends, to town or countryside, thecosts acted to stimulate job training within industry of relocation, and lack of informationon job and in government training centers. These pro- opportunities elsewhere. Occupational mobility grnms were described in Chapter III. Such pro- isinhibited by reluctance to relinquishac- grams enhance occupational mobility by prov- quired skills, and by opportunityor capacity to iding broad opportunities for the upgrading

The Wealth of Nations(World Classics edition), I, " Workers are"redundant" who are no longer quali- p.83. fied for or needed in their jobs.

20 and acquisition of skills, and they serve partic- Trust that between 1961 and 1966 Great Brit- ularly to relieve bottlenecks in the supply of ain received at least 675,000 immigrants from workers to skilled jobs, and to essentially new the Irish Republic and 180,000 from Northern occupations created by changes in old or the Ireland.° development of new technologies. During the yearsimmediately preceding The specialYouth Employment Service, 1962, when there was no control over Common- which is operated in most areas through career wealth immigration, there was a compara- offices established by local education authori- tively large influx of Commonwealth citizens ties, helps to steer young people into occupa- from India, Pakistan, the Caribbean, and Af- tions and industries where their capacities rica. As previously noted, it was estimated in over the long-term will be best utilized. The 1970 that about 750,000 nonwhite people were employment exchanges provide indispensable in the working population. Control over Com- intelligence on changing labor requirements for monwealth immigration was first imposed in particular occupations, industries, and areas; 1962 and extended by the Commonwealth Im- they mount special job placement programs in migrants Act, 1968. New legislation on immi- cases of large-scale redundancies; and they can gration was passed late in 1971." suggest the availability of training facilities to As a result of this legislation, the inflow of unemployed workers who might benefit from Commonwealth immigrants available for pro- training programs. In the case of a declining ductive work has been drastically reduced .° industry such as coal mining, where the clos- With respect to employment, a voucher system ing of pits can be anticipated well in advance, for Commonwealth immigration is now used. special programs, including retraining and There are two voucher categories. Category A relocation,have beeninstituted.Inareas vouchers are issued by the Department of Em- where unemployment is relatively high, finan- ployment with references to skilled or unskilled cial inducements exist for firms to locate in jobs on the basis of applications by employers. such areas, thus reducing the need for geo- Category B vouchers are applied for and issued graphic labor mobility; on the other hand, through British High Commissions abroad to such mobility has been encouraged by the de- Commonwealth citizens holding certain quali- velopment of New Towns with housing and fications which are recognized and accepted in other amenities. the United Kingdom. The voucher scheme is All inall, substantial attention has been primarily a device for the numerical control of given to the organization of the labor market immigration. Since June 1969, vouchers have in Great Britain, and to measures designed to not been issued if the vacancy offered could be minimize obstacles to labor mobility that exist filled by suitable local labor. Not more than in all societies. 8,500 employment vouchers a year may be is- The labor supply in Great Britain is obvi- sued to Commonwealth citizens; voucher hold- ously affected by migration into or out of the ers currently are coming to Britain at the rate country. There is an inward movement from of about 4,000 a year. the Irish Republic, where no restrictions on Foreign workers (i.e., workers from coun- entry presently exist, from Northern Ireland, tries outside the Commonwealth) are now a where unemployment is relatively high, from more important source of labor supply, espe- the Commonwealth countries, and from foreign countries. Excluding those from the Irish The place of birth of about 24,000 Irish immigrants Republic, the total flow of migrants into the was not ascertained. See Times (Londtn), February 1, United Kingdom (few of whom went to North- 1971. ern Ireland) was 236,900 in 1968, of whom " The immigration Act of 1971 replaced the Aliens 178,200 were Commonwealth citizens. Outmi- Restriction Act, 1914; the Commonwealth Immigrants Acts, 1962 and 1968; and the Immigration Appeals Act, gration in 1968 totaled 281,000." The popula- 1969, with a single code of permanent legislation on tion inflow from Ireland has been heavy. It has immigration control. been estimated in a study by the Runnymede " The flow of dependents of Commonwealth immigrants already in Britain has continued at a substantial "Central Statistical Office, Annual Abstract of Sta- rate, but the dependent backlog is expected to be cleared tistics, 1970, table 19. by 1972.

21 cially for work in domestic service, nursing, substantially greater in some communities and hotels, and restaurants. A work permit system in neighborhoods within these communities. for aliens, administered by the Department of Racial tensions and the emergence of discrimi- Employment, is used. Permits are issued only natory treatment of nonwhite residents re- in response to specific offers of employment sulted in the passage of the Race Relations and are subject to three general conditions: Act, 1965, which made discrimination unlawful (a) the proposed employment is reasonable on the ground of color, race, ethnic or national and necessary ;(b) adequate efforts have been origin in places of public resort or in the trans- made by the employer to find suitable labor fer of tenancies. Public incitement to racial ha- from among British subjects or foreigners long tred was made a criminal offense. This Act was resident in Britain; and(c)the proposed followed by the Race Relations Act, 1968, wages and conditions of employment are no which was specifically directed to discrimina- less favorabie than those normally accorded tion in employment and in general broadened British employees for similar work in the and extended (e.g., to education) the anti-dis- trade in the district. About 50,000 permits are criminatory clauses of the earlier Act. now issued annually. Alien workers, mostly The Race Relations Act, 1968, with some ex- from European countries, fill some of the gaps ceptions, bans discrimination in hiring, terms created by the control of Commonwealth immi- and conditions of employment, opportunities gration. As already pointed out, immigration for training and promotion, and dismissal. from the Irish Republic is not restricted and Trade unions and employers' organizations are provides an important flow of workers into forbidden to refuse on racial grounds to admit mainly unskilled and semiskilled jobs. a person to membership on like terms as other The tide of nonwhite immigrants into Brit- applicants, or to expel him on other than like ain during the late 1950's and early 1960's terms. He must be accorded the same benefits created problems of racial adjustment. The as other members, and like actions must be total nonwhite population in 1969 has been estimated at 1.5 million in a study by demo- taken onhisbehalf. The1968actalso graphic experts commissioned by the Run- broadened the authority of the Race Relations nymede Trust.{' This number represented only Board, the principal enforcement agency. With about 2.8 percent of the total population of respect to employment discrimination, the act Great Britain in 1969, but the proportion was contains special provisions to take account of voluntary conciliation machinery existing in "See Daily Telegraph (London), March 16, 1971. industry to deal with discrimination disputes.

22 PART II. GOVERNMENT AND LABOR

Chapter V. Government

Public Administration departmental classes, such as the Factory In- spectorate in the Department of Employment As of January 1, 1971, the "nonindustrial" and the Tax Inspectorate of the Board of In- (mainly white-collar) civil service staff of the land Revenue. The Diplomatic Service, which national government numbered 505,600, ex- provides staff for the Foreign Office and for cluding the Post Office." Of this number, embassies and consular posts abroad, has its 113,000 were employed by the Ministry of De- own employment structure. fense; 74,000 by the Department of Health and The members of the administrative classes, Social Security ; and 71,500 by the Board of who number fewer than 4,000, constitute the Inland Revenue. These three agenciesac- elite of the civil service.Historically, they counted for 51 percent of the total. The De- have been recruited mainly from the ancient partment of Employment, where most func- universitiesof Oxford and Cambridge,al- tions relating directly to labor are lodged, had though in recent years the area of recruitment a staff of 31,600. has widened. The executive classes, who consti- In addition, the national government had tute roughly 17 percent of the service, are en- 206,500 employeesclassifiedas "industrial" gaged primarily in managerial activities (e.g., (mainly blue-collar) staff, again excluding the as managers of employment exchanges or as Post Office. Of this number, 70 percent were heads of operating divisions or smaller units at employed by the Ministry of Defense, and most departmental headquarters). Almost a quarter of the remainder by the Department of the En- of the civil service staff is found in the special- vironment, a new agency which includes staff ist classes, and their duties cover the full range from the Ministries of Public Building and of professional work from accountancy to zool- Works, Housing and Local Government, and ogy. The most numerous group is composed of Transport. The "industrial" staff is employed the clerical classes, who account for approxi- in Admiralty dockyards, government arsenals, mately 38 percent of civil service employment. and other enterprises not directly related to Civil servants are recruited mainly by com- public administration. petitiveexamination, and theService has Members of the Home Civil Service (i.e., the achieved an enviable reputation for compet- nonindustrial staff) largely belong to one of six ence,objectivity,anddevotiontoduty. main classesthe administrative, responsible Changes of government do not involve changes for advising Ministers on policy ; the executive, in departmental staff, who continue to operate responsible for the day-to-day conduct of gov- regardless of the party in power. In the exer- ernment business; the specialist, including sci- cise of their duties, civil servants are protected entists, engineers, doctors, lawyers, economists, and other types of professional workers; the by the principle of ministerial responsibility, clerical; the typist and machine operator; and which means that the minister must take the the messenger, which includes office cleaners brunt of criticism for any shortcomings in his and similar workers. There are also specialized department. By the same token, ministerial decisions, which may in fact be taken by the cab- " The Post Office became a public corporation on inet, must be accepted and acted upon by the October 1, 1969. civil servants concerned. In practice. as in any

23 major country where complex policy decisions years. Any employee whose health is perma- must be made, the "higher civil service" un- nently impaired may be retired on medical doubtedly exercises great influence in the for- grounds. There is no fixed age of retirement, mation of public policy. but normally retirement is at age 60. Pay and other conditions of employment in the nonindustrial civil service are determined Administrative Bodies Concerned With Labor through negotiating procedures. The National Whitley Council for the Civil Service, a joint The basic governmental agency dealing with body representing management and employees labor is the Department of Employment.4T The was established in 1919 to provide machinery major area of labor interest outside of the jur- for consultation and negotiation for the civil isdiction of this Depart nent is social security, ,Ir service as a whole. Its functions include "deter- which is administered by the Department of mination of the general principles governing Health and Social Security." A number of conditions of service, e.g., recruitment, hours, other departments or ministries may perform -promotion,discipline,tenure,remuneration special tasksfor example, the Department of and superannuation." With respect to salaries, the Environment has responsibility for the en- the National Council acts directly only on gen- forcement of safety standards in the railway eral claims for pay adjustment ; that is, claims industry. From time to time, independent or affecting the entire service. It does not become quasi-independent agencies may be established directly involved in pay claims affecting indi- to undertake particular duties. Recent exam- vidual grades or classes. Such claims are re- ples are the National Board for Prices and solved essentially through collective bargain- Incomes," established in 1965 as a review and ing, with resort to arbitration in case of fail- investigatory agency under the 1964-69 in- ure to agree. Bargaining is carried on between comes policy of the then Labour Government, the appropriate staff association (union) and andtheIndustrialRelationsCommission, management as represented by the Treasury created in March 1969 to provide assistance in or, for a grade confined to a particular depart- the improvement of "institutions and proce- ment, by officials of thedepartment dures of industrial relations" through investi- concerned." gations and recommendations inparticular The basic principle of civil service salary de- situations." termination is "fair comparison with thecur- The accompanying organization chart shows rent remuneration of outside staffs employed the operation of the Department of Employ- on broadly comparable work, taking account of ment as of February 1, 1971. The Department other conditions of service." 46The standard politically is headed by .a Secretary of State, workweek for office staff is 41 hours in London assisted by a Minister of State, and a Parlia- and 42 hours in the provinces. Lower grades in mentary Under Secretary of State. The civil the service are eligible for overtimepay be- service staff is headed by a Permanent Secre- yond standard hours. Annual leave varies by tary, who is responsible to the Secretary of grade and length of service up toa maximum State for the organization and efficiency of the of 30 working days. Sick leave on fullpay, less Department. The headquarters staff of the De- any national insurance benefit received, may be granted to permanent civil servants for up to 6 " Formerly the Ministry of Labour. In May 1968, the months in any year, and on reducedpay up to a Ministry was renamed the Department of Employment maximum of one year's sick leave inany 4 and Productivity; its present title dates from October 1970. " See H. M. Douty, "Salary Determination for White- For administrative reasons, unemployment insur- Collar Civil Servants in Great Britain," Monthly Labor ance benefit is paid through the employment exchanges Review, November 1960, pp. 1158-1165; and "New of the Department of Employment. Agreement for Review of Salaries of White-Collar Civil "The work of this agt ncy was terminated in 1970. Servants in Great Britain," Monthly Labor Review, References to the Commission are made by the May 1961, pp. 487-488. Secretary of State for Fnloyment. Under the Indus- " Royal Commission on the Civil Service, 1953-55, trial Relations Act, 1971, Commission was placed on Report (London: H.M. Stationery Office, 1955, Cmd. a statutory basis and g, 'a additional responsibilities. 9613), p. 25. (See ch. VIII, Industrial luiations.)

24 Orgaeization of the Department of Employment, February Permanent Secretary 1911 Deputy Secretary Deputy Secretary Deputy Secretary 1 Solicitor I Establishments Director of Accountant General

III 1I 1I !MI 1I 1I iMb iMb Regional office (9)-1/ iMb 1I Chief Inspector Employmentexchanges Government training rehabilitation Industrial Regional finance offices (7).1./ Superintending inspectorsDivisional offices: of factories Specialistbranches Sub-offices I Part-time I (866)2.1/ I Branch I centers (48) Local I units (24)2/ District offices (115) I/ Including Scotland and Wales. (121) Off ices(151) employment off ices (5) agencies (3) Source: Department-2/ ./8023./4422 of of Employment. exchangesthese units areprovideare groupedattached a specialized in to an government area service manapqr training for thoseorganization. centers. seeking professional and executive posts and 42 provide occupational guidance. partment is located in St. James's Square in 4. The Industrial Training Act, 1964, pro- central London and at two other locations vided a new framework for the training of (Watford and Runcorn) in the London metro- workers in industry. The program is decentral- politan area. Regional organization is exten- ized on an industry basis, with the Department sive. of Employment exercising general controls. Some of the major responsibilities of the De- The Department itself operates a Vocational partment have existed for many years ; others Training Scheme to help overcome shortages are more recent in origin. Its principal respon- of skilled workers in industries of national im- sibilities are summarized briefly: portance, and to help disabled persons and oth- 1. In the field of industrial safety, health, ers in special need. Most of the work in this and welfare, the Depai tment is responsible for program is done at government training cen- the administration of the Factories Act, 1961, ters. and the Offices, Shops, Railway Premises Act, 5. The Department compiles basic statistics 1963. In addition to health and safety as such, on employment, unemployment, job vacancies, the Factories Act contains protective provi- job placements, wage rates and earnings, hours sions relating to the employment of women and of work, labor costs, work stoppages, family young persons. H. M. Factory Inspectorate expenditures, and retail prices. These data ap- dates from the Factories Regulation Act of pear, at least in summary form, in the Depart- 1833. ment of Employment Gazette (monthly), and 2. Through an extensive network of local are represented in various publications of the offices, the Department operates the employ- Central Statistical Office. mentexchangeservicefor unemployed The Department issues numerous separate workers or workf.ws seeking alternative em- publications on various aspects of its work. ployment. It also administers the Disabled Per- Some of these are essentially technical ; others sons (Employment) Act, 1944, which involves are designed for broad distribution. Perhaps the placement of disabled persons in suitable special mention should be made of its annual jobs. For those whose handicap is so severe publications on family expenditures and on that they cannot compete under normal work- time rates of wages and hours of work. ing conditions, sheltered employment may be 6. Among other activities of the Department provided. The Department participates in the are those related to the Wages Councils Act, work of the Youth Employment Service, which 1959, including the maintenance of an inspec- operates in most areas through careers offices torate to ensure understanding of and compli- established by local education authorities. ance with Orders issued under the Act; ad- The Department alsoissues employment ministration of the Contracts of Employment vouchers to Commonwealth citizens, work per- Act, 1963; and functions related to the Redun- mits to foreign workers, and administers the dancy Payments Act, 1965. The international provisions against discrimination in employ- activitiesof the Department are described ment contained in the Race Relations Act, briefly in the following section of this chapter. which became operative in November 1968. The Department of Health and Social Secur- 3. The Department plays an active role in ity has responsibility for the administration of industrial relations, and this role will be en- Britain's comprehensive system of social secur- hanced by the Industrial Relations Act, 1971. ity and of the National Health Service. For many years the Department has provided 1. The present contributory national insur- means for conciliation in industrial disputes, ance programs, which came into operation in and, with the consent of both parties, for arbi- 1948, include benefits payable in the event of tration. The Secretary of State, on his own ini- sickness, unemployment, and maternity; old- tiative, may also set up an investigation or for- age pensions ; death grants; and benefits for malinquiry into anindustrialdispute by widows and their children. means of a Court of Inquiry or a Committee of 2. The industrialinjuries scheme (work- Investigation. As previously noted, hemay man's compensation) provides benefits in the refer industrial relations questions to the In- case of injury or death arising out of employ- dustrial Relations Commission. ment.

26 3. The family allowance program, financed sponsible for certain aspects of public health from general revenues, provides an allowance (e.g., health control at seaports and airports). for each dependent child other than the first, regardless of family income. Participation in International Organizations 4. Thesupplementarybenefitsprogram (formerly national assistance)is designed to The Department of Employment is responsi- bring a person's resources up to the standards ble for all relations between the United King- approved by Parliament. Unlike entitlement to dom Government and the International Labor national insurance, the payment of supplemen- Organization. With respect to manpower and tary benefit involves a means test. Social affairs, it provides the link with all over- 5. War pensions (disablement pensions and seas bodies, such as the Council of Europe and pensions to war widows) are also administered the Organization for Economic Cooperation by the Department of Health and Social Secur- and Development. It also provides, through the ity. Overseas Development Administration of the 6. Finally, the Department administers the Foreign and Commonwealth Office, technical NationalHealthServiceforEngland and assistance on manpower and industrial rela- Wales," which provides, subject to certain tions questions to developing countries through chargesandsmallcontributionscollected international or bilateral arrangements, and through the national insurance system, free gives some assistance to Canadian, Australian, medical, dental, and hospital care to all resi- and New Zealand authorities in organizing re- dents of Britain. The Department also is recruitment in Britain for emigration. The Department keeps in touch with trends ' The health services are somewhat differently or- and developments in labor matters in other ganized in Scotland and Northern Ireland. In Scotland, countries mainly through a network of labor the responsible minister is the Secretary of State for attaches in British embassies in various parts Scotland. of the world.

Chapter VI.Legislation Affecting Labor

Constitutional Guarantees employersandemployees thereforeare As explained in chapter I, Britain doesnot viewed as governed primarily by the contracts possess a written constitution, in the sense of a into which the individual employer and em- singledocument.Itsconstitutionconsists, ployee have freely entered. Even if the terms rather, of statutes enacted by Parliament, of are not explicitly stated, a contract isstill the common law, and of usages that haveac- valid and entitles the employer to service and quired the status of operating principles. The the employee to wages or salary according to rights and liberties of citizens, therefore,are the normal practice in the trade or industry. In reflected in statutory andcommon law and in essence, "...the law thus refuses to look usages that have developed over the centuries upon the workers in a factory as one entity. It with respect to freedom of speech, association, dissolves the existing workshop community in and other attributes ofa democratic society. a series of individual contracts, and does not The guarantees are essentially thesame as make its sanctions available to those organs of those in the United States. representation and joint consultation which play such an important role in the life of Summary of Basic Labor Legislation industry." r Under the common law, the right ofa man to choose his employer is regarded " 0. Kahn-Freund, "Legal Framework," inAllan as a funda- Flanders and H. A. Clegg (editors), The System of mental freedom which distinguishesan em- Industrial Relations in Great Britain (Oxford: Basil ployee from a serf. The rights and duties of Blackwell, 1959), p. 50.

27 In fact,the determination of terms and substantial body of protective labor legislation conditions of employment (whichineffect exists. This legislation is not embodied in a sin- constitute the terms of contract between em- gle "code," as it is in some countries, but is ployers and individual employees) now are found in specific statutes enacted at various made largely throughcollective bargaining times. One part of this body of law is aimed at over broad reaches of British industry. Up to the regulation of wages, holidays, and holiday 1971, this development occurred within a very pay in trades or industries where voluntary ne- limited framework of statutory law. Trade un- gotiating machinery is either nonexistent or ions gradually gained freedom from legal disa- ineffective. The statutes presently in force are bilities. the principal act on which their status the Wages Councils Act, 1959; the Agricul- was based for a hundred years being the Trade tural Wages Act, 1948; and the Agricultural Union Act of 1871. Under this act, unions were Wages (Scotland) Act, 1949. no longer illegal at common law on the ground The Factories Act, 1961, sets forth require- of restraint of trade. Subsequent legislation en- ments for industrial health and safety in man- sured the right of peaceful picketing, the se- ufacturing and certain other employments, and curity of union funds, and the right of unions regulates the hours of work of women and to expend money for political purposes. The young personsinsuch employments. The Trade Dispute and Trade Union Act of 1927 Offices,Shops, and Railway Premises Act, (passed as a result of the 1926 general strike) 1963, relates to employee health and safety in placed various restrictions on trade union ac- the types of establishments indicated by its tivity. However, this act was repealed in 1946, title. Specific safety legislation exists for mines and the position which had existed before the and quarries, agriculture, railroads and air act of 1927 was restored. transport, and merchant shipping. The elaborate arrangements for collective Other important legislative measures affect- bargaining that developed in Great Britain ing labor conditions include the Contracts of were based on voluntary agreement. No em- Employment Act, 1963, which provides that ployerinprivate industry was under any written information must be given to em- legal obligation to recognize unions or to bar- ployees of the main terms of their employment, gain collectively." Collective bargaining con- and gives both employers and employees rights tracts as such were not enforceable by law. to minimum periods of notice to terminate em- Strikes or lockouts, whether legal or illegal in ployment ;the Redundance PaymentsAct, other respects, could not be complained of in 1963, which provides for severance pay to em- court as a breach of a collective bargaining ployees who are dismissed because the em- agreement. ployer no longer has need for their services; The Industrial Relations Act of 1971, which theIndustrialTrainingAct,1964,which repeals the Act of 1871 and either repealsor makes provision for job training (largely with- amends certain other industrial relations acts, in industry) of persons over statutory school provides, for the first time, a comprehensive leaving age; and the Equal Pay Act, 1970, framework of law for the conduct of labor- which does not come into force until December, management relations. This break with tradi- 1975. tion helps to explain why the actwas received In addition, a body of legislation relates to with such bitter hostility by the labormove- social insurance against unemployment, sick- ment. The main provisions of thisnew and ness, old age, and industrial accidents; the highly important legislationare outlined in payment of family allowances; the provision of Chapter "III. supplementary benefits to assure the mainte- Aside from industrial relations legislation,a nance of minimum income standards; and for provision of general medical, hospital, and den- ' Public corporations administering nationalized in- tal care. dustries generally were required "to enter into"or "to seek" consultation with appropriate organizatirns with These various forms of legislative protection a view to the establishment of machinery for collective for workers (and in some cases for members of bargaining and joint consultation. the community generally) are considered at

28 various points in the course of this study. For particular matters and (3) follow-up visits to the convenience of readers, a listing of major determine whether matters previously brought statutes is given in appendix A. to the attention of factory management have been corrected. The Factory Inspectorate has Enforcement about 600 inspectors, together with supporting staff. New recruits are selected and trained Reasonable efforts are made in Great Britain carefully. General inspectors are backed up by to familiarize employers and workers with the specialists (e.g., medical). A detailed report is provisions of applicable labor legislation. Em- issued annually on the work of the Inspecto- ployers' federations and trade unions partici- rate. pate in this effort. The aim, of course, is to min- Inspectorates exist for the enforcement of imize violations resulting from ignorance of health and safety standards in other industries, legal requirements. including mining, railroads, agriculture, and Formal enforcement largely involves the use air transport. The Factories Inspectorate, in of inspection procedures. H.M. Factory In- cooperation with local authorities, is responsi- spectorate, for example, which is located in the ble for inspections under the Offices, Shops, Department of Employment, has responsibility and Railway Premises Act. The Wage Regula- for the enforcement of the Factories Act re- tion Orders issued for trades and industries for gard:ng health and safety in industrial em- which Wages Councils have been established ployment and the working hours of women and are enforced through the Department of Em- young persons. The principal duty of inspec- ployment. As of December 31, 1969, 146 wages tors is to visit factories either routinely or in inspectors were employed full-time on visiting response to complaints. An inspector has the employers' premises, making routine inspec- right of entry into a factory and the right to tions,andinvestigatingcomplaints.Over examine any person foundinthe factory, either alone or in the presence of some other 50,000 wages inspections were made in 1969. person. He can require the person examined to In general, the approach to enforcement of sign a declaration. He may institute legal pro- the provisions of protective labor legislation is ceedings against the occupier of the factory or not punitive. Reasonable efforts are made in other person responsible in situations that ap- the case of violations to secure voluntary com- pear to involve a breach of law. Normally, he pliance. With respect to industrial health and will seek to obtain compliance through cooper- safety, marked emphasis is on preventive ac- ation rather than legal action. tivities, and employers are encouraged, where Generally, visits to factories are made with- possible, to exceed minimum standards. But out notice. These visits include: (1) general legal sanctions do exist and are used when nec- inspections to check for compliance throughout essary to secure compliance with statutory re- the factory; (2) special visits to investigate quirements.

29 PART III. LABOR AND MANAGEMENT

Chapter VII.Labor and Management Organizations

Labor Organizations branches, mainly in the Irish Republic, outside of the United Kingdom. Membership in Great Trade unionism plays a highly significant Britain, therefore, was about 10.7 million. This role in British economic and political life. As represented approximately 40 percent of the in the United States, the rise of British trade total labor force; the corresponding figure for unionism represented largely an indigenous the United States (in 1968) was 22.9 percent. working classdevelopment. The movement The proportion of union members to civilian produced its own leaders and its own program. employees (i.e., excluding employers, the self- Historically, it has placed, and continues to employed, and members of H.M. Forces) ex- place, great emphasis on economic action to ceeded 43 percent, again markedly higher than advance the status and well-being of its mem- in the United States. bers through the establishment and elabora- During the 1930's total union membership tion of rules governing the terms and condi- increased by less than half a million, but there tions of employment. Its basic tactic is collec- was a sharp jump of about 700,000 between tive bargaining and, where feasible, control of 1969 and 1970. The number of women members the supply side of the labor market through advanced from 19.8 percent of the total in 1960 measures such as the regulation of apprentice- to 24.6 percent in 1970. Although blue-collar ship. Historically, a basic concern of the move- workers make up the bulk of trade union mem- ment has been freedom from legal impedi- bership, the white-collar component has been ments to the exercise of collective action in the increasing in both absolute and relative terms. economic struggle. One authority estimates that between 1948 and The tradeunion movement hassought 1964 white-collar union membership increased through legislation to secure protection against from 1,964,000 to 2,623,000, a gain of 33.6 per- industrial hazards to safety and health; limita- cent; during the same period, the increase in tion on hours of work for women and children ; blue-collar worker membership was less than 1 minimum wage standards in industries without percent. In the latter year, white-collar workers effective negotiating machinery; a comprehen- accounted for about one-fourth of total union sive system of social security; and the elimination of educational and other barriers to equal- TABLE 11.UNITED KINGDOM: NUMBER OF UNIONS AND ity of economic and social opportunity. Mea- UNION MEMBERSHIP, 1960-70 sures toward these ends have been the monop- Membership (in thousands) oly of no single political party, but politically, Year Number in the present century, the union movement of unions Total Male Female 1960 664 9,835 7.884 1,9M has been closely identified with the Labour 1961 646 9,897 7,905 1.992 1962 626 9.887 7.860 2.027 Party through the affiliation of individual un- 1963 608 7 9,934 7.859 2,075 1964 59 10.079 7,936 2,143 ions. 1965 583 10,181 7.973 2,208 1966 574 10.111 7.890 2.221 The total membership of unions that have 1967 555 9,970 7.724 2,246 1968 533 10.034 7,713 2.321 headquarters in the United Kingdom was 11 1969 509 10,307 7,843 2,464 million at the end of 1970. (See table 11.) 1970' 481 11.000 8.296 2.704 Northern Ireland accounted for 250,000 of this 1 Provisional and subject to revision. Sot:ftra: "Membership in Trade Unions in1970,"F;mployment and total, and about 65,000 members were in Produrtirity Gazette, November 1971.

30 membership." In the United States in 1964the TABLE 12. UNITED KINGDOM: DISTRIBUTION (W TRADE proportion was approximately 15 pereent.55 UNIONS BY SIZE, 1970

The increasing importance of the white-col- Number Membership lar component of British union memoershipre- Number of members of unions (in thousands) flects changes in the composition of,employ- Total 481 11,000 ment, growth in white-collar unionism Less than 500 206 83 (espe- 500 and less than 1,000 50 35 cially in the public service), and 1,000 and less than 2.500 _ 59 99 a sharp de- 2,600 and less than 5.000 50 172 cline of manual worker employment in 5,000 and less than 10,000.. 30 199 a num- 10,000 and less than 15,000 13 155 ber of traditional areas of union strength 15,000 and less than 25,000 . 21 403 (e.g., 25,000 and less than 50,000 . 13 452 mining, railroads). 50,000 and leas than 100,000 . 16 1,111 100,000 and less than 250,000 14 2,188 Union membership is highly concentratedin 250.000 and over 9 6,155 a few unions. (See table 12.) In 1970, 9 unions, Souace: "Membership of Trade Unions in 1970," Employment and each with 250,000 membersor more, accounted Productivity Gazette, November 1971. for 56.0 percent of total union membership;at eluding the adoption by the union of a constitu- the other extreme, the 206 smallest unionsrep- tion incorporating a series of provisions de- resented only 0.3 percent of the membership. signed to assure that union affairs would be The 39 unions with more than 50,000 members conducted in a constitutional manner, and that each contained 85.9 percent of thetotal mem- the rights of its members would be respected. bership. Table 13 shows the membershipas of One requirement was for annual reportson 1970 of the 10 largest unions affiliated withthe membership, income, and expenditures. As Trades Union Congress, which is describedat a shown in Chapter VIII, a new system of regis- later point in this chapter. The number ofun- tration was incorporated in the Industrial Re- ions has been declining steadilyfor many lations Act, 1971. years, primarily through mergers and amalga- In 1969, 328 unions with 8,752,801 members mations. Between 1960 and 1970,as table 11 -85 percent of total union membership-were shows, the number declined from 664to 481, or registered with the Registrar of Friendly Soci- by 27.6 percent, andover the whole period eties. The combined 1969 income of theseun- since World War II the drop has beeneven ions was £45,782,000(US$109,876,800),of sharper. Nevertheless, a substantial numberof which almost 84 percent represented members' very small unions, such as the Amalgamated contributions. Expenditures during the year Union of Sailmakers withfewer than 100 were £43,237,000 (US$103,768,800), of which members, continue to exist along sidethe giant operating expenses amounted to /27,384,000 agglomeration represented by theTransport (US$65,721,160). Many British unions still and General Workers' Union(over 1.5 million maintain one or more beneficialprograms for members). their members, and registered unions in 1969 Under the various Trade UnionActs beginning with the Act of 1871, British unions were TABLE13.UNITED KINGDOM: TEN LARGEST TRADE granted certain benefits, particularlyin the UNION AFFILIATES OF TRADES UNION CONGRESS, 1970 management of union funds and assets,if they Membership registered with the Registrar ofFriendly Soci- Union eties. Registrationwas entirely voluntary, but Total Male Female Transport and General Workers' the great majority of unionmembers in 1969 Union 1,531,607 1,318,083 213,524 Amalgamated Union of Engineer- were found in registered organizations. ing and Foundry Workers 1,131,252 1,006,249 Regis- National Union of General and 125,003 tration involved a number ofrequirements, in- Municipal Workers .. 803,653 583,854 219,799 National and Local Government Officers Association ..... 397,069 251,269 145,800 Electrical, Electronic and Telecom- " George Sayers Bain, Trade UnionGrowth and munication Union/Plumbing Recognition, Royal Commissionon Trade Unions and Trades Union 3 892,401 361,545 40,856 National Union of Mineworkers 297,108 291,071 6,037 Employers' Associations, ResearchPaper No. 6 (Lon- Union of Shop. Distributive, and Allied Workers . . 316,387 158,448 157,941 don: H.M. Stationery Office, 1967),p. 17. National Union of Public "In 1969, the Department ofEmployment discontin- Employees ..... 305,222 132,164 173,058 National Union of Teachers 290,440 78,232 212,208 ued estimates of the industrialdistribution of union Society of Graphical and Allied Trades ...... 285,927 155,549 80,378 membership on the ground that thenumber of unions with mixed industrial membershipwas too great for Represents an amalgamation as of July 1968 of Electrical Trades accurate estimates to be made. Union with the Plumbing Trades Union. SOURCV: Trades Union Congress, Report,, 1970, pp. 701-829.

31 paid out 110,720,000 (US$25,728,000)in the the employers, and hence to retain and expand form of unemployment, sickness andaccident, their membership. Moreover, they were willing death, old-age. and other benefits. Strikebene- to recruit workers without distinction as to fits, not included in the above figure, amounted type of employment, as indicated by the word to only £1,619,000 ('JS$3,885,600).Miscella- "general," which was often found in their ti- neous expenditures came to£2,696,000. Funds tles. atthe end ofthe yeartotheaccount Today, the structure of British trade union- of all reghiczcd unions t:taled £132,746,000 ism is exceedingly complex. Pure craft unions (US$318,590,000) .56 are few. Some unions, through amalgamations, The present day structure of the tradeunion became multicraft unions, and some of these, movement reflects historical circumstances as like the Amalgamated Union of Engineering well as adaptation to changing industrial con- and Foundry Workers, the second largest ditions. Modern trade unionism in Great Brit- union in the United Kingdom, opened their ain had its origin in local unions of skilled doors to semiskilled and unskilled workers. craftsmen and the combination of they i locals Purely industrial unions are rare; one excep- into district and national organizations. The tion is the National Union of Mineworkers. Amalgamated Society of Engineers, formed in The general laborers' unions that developed in 1851, was the first of the so-called "New Model" unions that dominated the union scene until the 1880's and 1890's merged to form two gen- 1889. These unions exhibited capacity for sur- eral unions. vival and growth. They were based on relatively No clear counterpart to the British "gen- high dues, the provision of death and other eral" union exists in th3 United States. In all benefits to their members, limitation of the num- but a few industries in Britain, at least one of ber of apprentices where possible, mid caution the general unions can be found. The Trans- in the use of the strike to enforce demands on port and General Workers' Union is the product employers. They were "business unio 7 pri- of about 60 amalgamations; it recruits workers marily concerned with gradual improvement in in road transport, docks, chemicals, building, the wages, hours, and other terms of employ- engineering,power,automobile,furniture, ment of their members within the existing eco- flour-milling, and a host of other industries. nomic system. The National Union of General and Municipal During the 1880's, a number of factors, in- Workers recruits mane :1 workers in municipal cluding a severe depression, the emergence on services, hospitals, power, building, quarrying, a small scale of an organizedsocialist move- glass, rubber, road transport, and in a wide ment, a growing awareness of the problems of range of other employments. The Union of the working poor, and the spread of literacy, Shop, Distributive, and Allied Workers, which combined to produce an extension of unionsim might well qualify as a third general union, or- to large numbers of unskilled and semi-skilled ganizes workers in the wholesale and retail workers. In th- process, new union leadership distributive trades, in service industries such emergeu. The ytar 1889 is a landmarkin Bri- as catering and laundering, and in a variety of tish trade union history. Bitter strikes oc- manufacturing industries. All three of these curred on the docks and elsewhere, and general " general" unions now recruit skilled workers laborers' unions sprang up all over the country. This "new unionism" differed from the old and even white-collar employees in some indus- in both tactics and organization. The new un- tries. Structurally, British unions simrly grew, ions tended to have low initiation fees and spreading out from their original organizational dues;unliketheolderunionsofskilled nuclei along whatever lines of development ap- workers, they placed little emphasis on bene- peared appropriate. There has been little cen- ficial activities. They depended more on ag- tral direction, even to the extent, as in the gressive strike tactics to win concessions from United States, of jurisdictional "charters" issued by a central organization. The Trades "Chief Registrar of Friendly Societies, Annual Re- port, Part IV (London: H.M. Stationery Office, 1970). Union Congress, however, joes have a proce-

32 dure for the consideration of interunion dis- movement. Like its counterpart on the manage- putes over membership and other issues." ment si;',. the Confederation of British Indus- At the apex of the British union structure try (CB; the TUC is widely consulted by the stands the Trades Union Congress (TUC), Government and is represented on numerous which celebrated its centenary in 1968.58 Not all officialbodies and advisory committees.It unions are affiliated with the TUC, but the 155 maintains a regular consultative arrangement that were affiliated in 1969 accounted for well with the CBI, and occasionally has embarked over four-fifths of all union members in Great on joint initiatives with that organization. Britain. (The 10 largest affiliated unions are As is the case with the AFL-CIO in this listed in table 13.) In that year, fees paid by country, the TUC has limited formal authority affiliated unions, The principal source of TUC over its affiliated unions. In fact, trade unions income, amounted to 1662,264 (US$1,589,433). do not yield any of their autonomy to the TUC A full congress is held annually, and power upon affiliation, and congress resolutions and exists for the convening of special congresses if policies are not binding upon them. Neverthe- the need arises. Delegates are allotted to each less, the moral authority of the TUC is sub- affiliated union on the basis of its membership, stantial. It has had considerable success over and on controversialissues, where a "card the years in the resolution of interunion dis- vote" is called for, each union delegation casts putes, and more recently it has played an active its entire vote as a bloc. The work of the an- role in the monitoring of union wage claims nual Congress involves discussion of the Re- under one phase of the Labour Government's in- port presented by its General Council, and con- come policy, 1964-69, and in intervention in sideration of motions which seek to determine unofficial strikes as an alternative to legisla- TUC policy for the coming year. tion foreshadowed in a 1969 Labour Govern- Between annual meetings, the work of the ment White Paper (In Place of Strife) Gn in- organization is carried on by its General Coun- dustrial relations. The structure and activities cil of 36 members who are nominated by un- of the TUC were under review in 1970-71, but ions before the annual congress meetings on a the results of the review were not available at trade or industry group basis, but who are the time this monograph was prepared." elected by the vote of the whole congress. The chief executive officer of the TUC, and its prin- International Ties cipal spokesman, is the General Secretary, who is elected by the congress 59 and serves ex officio The TUC participates actively in interna- as a member of the General Council. tional labor affairs. It is represented on the The TUC is a broadly representative body. It General Council of the International Confeder- can present with authority the trade union ation of Free Trade Unions (ICFTU), and par- view on matters of general economic and social ticipates in the work of the ICFTU's European policy as well as on issues of immediate con- Regional Organization. British unions are rep- cern to the institutional life of the trade union resented in the work of various ICFTU trade union secretariats. The TUC helped to form " See Trades Union Congress, Trade Unionism: The the Trade Union Committee for the European Evidence of the Trades Union Congress to the Royal Commission on Trade Unions and Employers' Associa- Free Trade Area, which came into existence on tions(London, 2dedition,1967), pp.167-171 and April 1, 1968. It has representation on the Trade appendix A, pp. 191-196. Union Advisory Committee to the Organization " The-e is also a Scottish Trades Union Congress for Economic Cooperation and Development. It (TUC), formed in 1897, which concerns itself almost is the responsible body on the trade union side entirely with matters of interest to trade unionists in for participation in the work of the Interna- Scotland. National unions may affiliate with respect to their membership in Scotland. The Scottish TUC will tional Labor Organization. It participates in accept affiliations from trades councils also (i.e., federa- the Annual Commonwealth Trade Union Con- tions of local branches of national unions). " The General Secretary is elected in the first in- " See Trades Union Congress: Structure and De- stance, but retains office as long as his work and con- velopment, Interim Report of the TUC General Council duct give satisfaction to the General Council and to the Adopted at the 102d Annual Trades Union Congress, delegates attending the congress. September 1970 (London, 1970).

33 ference. For many years, the TUC and the Steering Committee to exercise "...general AFL-CIO have exchanged fraternal delegates supervision over the initiative, checking prog- to their annual conferences. ress, and recommending ways in which it can be improved." The CBI does not become di- Management Organizations rectly involved in collective bargaining negotiations. The most comprehensive organization repre- Among other general employer or manage- senting British management is the Confedera- ment organizations are the Association of Bri- tion of British Industry. Its charter came into tish Chambers of Commerce (founded 1860), effect on July 30, 1965. The new organization which includes within its membership a num- represented, in effect, a consolidation of three ber of British Chambers of Commerce abroad; broadly basedemployers'associations :the the National Chamber of Trade (founded Federation of British Industries, the National 1897), with numerous affiliates throughout the Association of British Manufacturers, and the British Isles; and the Institute of Directors British Employers' Confederation. Its estab- (chartered 1906). The latter organization has lishment provided industry with an authorita- a membership of more than 43,000 company tive voice on all matters of economic and social directors cutting across all sectors of British policy. It is the counterpart on the manage- industry. Unlike the CBI, these organizations ment side of the Trades Union Congress. are not concerned, except perhaps peripherally, with the industrial relations system. The membership of the CBI consists of trade Many employers' associations in individual and employers' associations; the distinction is industries have as their sole or principal duty that the former are concerned mainly with the conduct of negotiations with the particular commercial and related matters and the latter unions within which workers in their indus- with industrial relations. Its membership also tries are organized, in the settlement of labor- includes individual companies in productive in- management disputes, and with such aspects of dustry and transport in the private sector. As- manpower management as apprenticeship and sociate membership status is provided for the training." In this they differ strikingly from nationalized industries, and companies in in- most national employers' associations in the dustries such as banking and insurance may be- United States. This difference reflects the prev- come "commercial associates." At the time of alence in Britain of industrywide bargaining 62 the Report of the Royal Commission on Trade or, alternatively, the establishment of basic Unions and Employers' Associations (1968), labor conditions through statutory boards on the CBI estimated that the 108 employers' as- which employers are represented. Not all for- sociations in its membership represented com- mal bargaining on the employer side, of course, panies employing more than three-fourths of is conducted through associations. Notably in all workers in the private sector of industry those industries the output of which is con- and transport. trolled by one or a few firms, company bargain- The Confederation plays an extremely im- ing, as in the automobile industry, may be portant role in the formulation of industry found. Since 1945, moreover, the Nationaliza- views on all major issues of economic and so- tion Acts have replaced several employers' as- cial policy. It consults extensively with govern- sociations by single large-scale undertakings ment agencies, provides industry representation with their own negotiating machinery. But in- on numerous advisory bodies, and furnishes many informational and advisory services to " Broadly, British employers' associations fall into its members, including advice on the meaning three categories: (1) those constituted solely for deal- and application of labor legislation. An exam- ing with industrial relations questions; (2) those that, ple of its joint activity with the TUC is the in addition, are concerned with commercial and related statement issued in July 1967 on the impor- matters; and (3)those that confine their activities tance of labor-management efforts to improve exclusively to commercial questions. ' As shown in Chapter VIII, a dual bargaining efficiency in the use of labor and on procedures system exists in much of British industry. Particularly for the achievement of that goal. The state- with respect to wages, industry bargaining is supplement incorporated provisions for a CBITUC mented by bargaining at the plant or company level.

34 dustry bargaining through employer's associa- A substantial proportion of the officials of as- tions or federations is widespread. In the large sociations stated that they made little or no ef- and diverse engineering industry, for example, fort to influence the industrial relations activi- national bargaining has existed since 1898; the ties and decisions of member firms; only about bargains concluded by the Engineering Em- one-fourth of the associations 64 confined their ployers' Federation with the unions concerned activities entirely to industrial relations. now directly affect the basic labor standards in The statutory definition of a trade union more than 4,500 establishments that employ proir to the Industrial Relations Act 1971 cov- over 2,000,000 workers. ered both organizations of workmen and of em- Much less is known about the organization ployers. Employers' associations, having as and operations of employers' associations than their principal object the regulation of in- about trade unions, but two research studies dustrialrelations, accordingly had precisely for the Royal Commission on Trade Unions the same legal status as trade unions of and Employers' Associations have contributed workmen." The 1971 Act distinguishes be- to our knowledge." These studies indicate that tween organizations of workers and of em- associations vary greatly in size in terms both ployers; it defines a trade union as a registered of membership and income; their industrialre- organization of workers and an employers' as- lations activities vary from the provisiones- sociation as a registered organization of em- sentially of forums for their membership to, in ployers. However, the legal status of an organ- most cases, the negotiation of minimum em- ization of employers is still thesame as that of ployment standards at industry level;many an organization of workers; the nature of that operate disputes procedures (a broad termusu- status depends solely on whether or not the or- ally embracing negotiated arrangements for ganization is registered under the 1971 act. the avoidance of work stoppages at both plant and industry level). Virtually all give advice " On the basis of Mr. McCarthy's study; Mr. Munn's on industrial relations to their members; many study which was not as extensive in terms of associa- collect statistics, mainly from their members. tion coverage indicated that the proportion was even smaller. See Royal Commission, Research Papers, 7, pp. 4,101. " V. G. Munns, "The Functions and Organisation of " Before the passage of the 1971 act, employers' Employers' Associations inSelected Industries" and associations were eligible, together with trade unions, W. E. J. McCarthy, "A Survey of Employers' Associa- for registration with the Registrar of Friendly Socie- tion Officials" in Royal Commissionon Trade Unions ties; the benefits of such registration for employers' and Employers' Associations, Research Papers, 7, Em- associations were not great, however, and comparatively ployers' Associations (London: H.M. Stationery Office, few, in fact, registered. The 1971 act created an Office 1967). See also an earlier study by H. A. Clegg, of Chief Registrar of Trade Unions and Employers' "Employers,'inAllan Flanders and H. A. Clegg Associations with significant powers and attached severe (editors), op.cit.,pp. 197-251. disabilities to nonregistration. See Chapter VIII.

Chapter VIII.Industrial Relations

Collective Bargaining Agricultural Wages Boards) have authority to determine basic wages and certain other terms The determination of wages and other conditions of employment for blue-collar workers, of employment. This statutory machinery sup- and increasingly for white-collar workers, is plements the voluntary collective bargaining system.66 largely a function of collective bargainingin Great Britain. This situation isso in the pri- " On statutory wage regulation, see the Ministry of vate sector, the nationalized industries, and in Labour's Industrial Relations Handbook (London: H.M. public employment. For industries inthe pri- Stationery Office, 1961), chapter X; F. J. Bayliss, vate sector where voluntary bargainingar- BritishWages Councils(Oxford:BasilBlackwell, rangements do not exist, or 1962) ; and Royal Commission on Trade Unions and are ineffective, tri- Employers' Associations, 1965-1968, Report (London: partite satutory boards (Wages Councilsand H.M. Stationery Office, 1968), pp. 57-60.

35 The present structure of collective bargaining section of this chapter. At this point, the ing represents the result of a long evolutionary bargaining arrangements as they existed up to process." It was, to an extraordinary extent, a the passage of the Industrial Relations Act are voluntary development. A leading authority on briefly described. British labor law has observed that "There is, The recent (1965-68) Royal Commission on perhaps, no major country in the world in Trade Unions and Employers' Associations 7° which the law has played a less significant role characterized British collective bargaining ar- in the shaping of these relations than in Great rangements as a "two tier" system. In the Britain and in which today the law and the words of the Commission, "Britain has two legal profession have less to do with labour systems of industrial relations. The one is the relations." 6R As seen in chapter VI, various acts formal system embodied in the official institu- of Parliament relating to trade unions largely tions. The other is the informal system created had the effect, up to 1971, of removing legal by the actual behaviour of trade unions and disabilities; they did not impose positive du- employers'associations,of managers, shop ties, responsibilities, or restrictions on either stewards and workers." 71The formal system unions or employers. In consequence, at least in consists largely of the national trade unions the private sector, bargaining arrangements and employers' associations which negotiate developed out of the play of economic and so- agreements on an industry basis; the informal cial forces affecting workers and the unions system largely involves workers, their elected they created and employers and the associa- shop stewards, local union officials, and em- tions they devised." ployer representatives at the local plant or In general, the situation was thus up to company level. Industry bargaining did not develop full- 1971, when Parliament passed, over wide- blown in British industry. By the late 19th spread union opposition, the Industrial Rela- century, agreements between unions and em- tions Act, which received the Royal Assent on ployers were typically by district. Industry- August 5, 1971. This act, for the first time, wide negotiations developed slowly, but were provide a comprehensive framework of law given considerable impetus by the various re- for the conduct of industrial relations. Its imports of the Committee on the Relations be- mediate effect on the industrial relations sys- tween Employers and Employed, the Whitley tem, as the Government concedes, will not be Committee, from the name of its chairman, J. profound, but over a period of time it should H. Whitley, M. P., established by the Govern- induce many changes in the conduct, proce- ment in 1916, and by the growth of trade un- dures, and structure of bargaining institutions. ionism during World War I. From the stand- Probably, a decade will be required for its ef- point of the unions, industry bargaining was a fect to be felt fully, and, in time, it may be mo- promising approach to the establishment of dified on the basis of experience and the winds standard rates of pay for similar jobs through- of political fortune. The major provisions of out industry, an historic union objective docu- the new legislation are outlined in the conclud- mented by the Webbs.72 Other terms of employment also could be standardized. Moreover, it " See E. H. Phelps Brown, The Growth of British Industrial Relations (New York: St. Martin's Press, was believed that industry bargaining would 1969). Although published a decade ago, the Ministry tend to foster union solidarity and the develop- of Labour's Industrial Relations Handbook, parts III ment of common interests among union mem- and IV, contains a valuable account of joint negotiating machinery in private industry and in the nationalized ' The Report of this Commission, the testimony of industries. witnesses before it, and the research studies that it " 0. Kahn-Freund, "Legal Framework." in Flanders commissioned provide great insight into the industrial and Clegg (editors), op. cit., p. 44. relations system as it appeared in the second half of the In the public sector, the administrative organs of the 1960's. nationalized industries generally were required to seek "Royal Commission .,.., Report, p. 12. to establish machinery for collective bargaining and " See Sidney and Beatrice Webb, Industrial Democ- joint consultation. racy (London: Longmans, Green, and Co., 1897).

36 bers. It also had attractions for employers, no- certain benchmark jobs.Most importantly, tablyinrestraining"unfair"competition they specify general rates of pay increase. through the undercutting of employment stan- These increases, however, must then be fac- dards. For example, simultaneous wage in- tored into wage structures at the local level, creases would at least preserve the relative and itis at this point that local bargaining wage cost position of firms, and, if costs rose, plays a critical role. Moreover, the wage struc- all firms could raise prices in coordination. ture of a plant is rarely static; it must be ad- Moregenerally,industrybargainingover ministered to accommodate changes in technol- major issues presumably would inhibit dis- ogy, work arrangements and flows, and other putes over these issues at individual firms. conditions that influence pay. These changes The present scope and nature of industry usually cannot be anticipated in national bar- bargaining needs to be clearly understood. In- gains and must be dealt with at local level. sofar as wages are concerned, industry agree- In addition to basic or minumum rates of ments, with comparatively rare exceptions, do pay, national agreements contain other terms not determine effective rates of paythat is, of employment from which comparatively little the rates actually paid in particular plants or local variation can be expected. These terms companies subject to an agreement. This fact vary among agreements, depending in part on is recognized explicitly in some national agree- the nature of the industry, but in general in- ments. In rubber manufacturing, for example, clude provisions relating to standard hours of the agreement states: "The 4,1'4y wage rates to work, holidays, annual vaction, premium pay be specified in the National Agreement are for overtime, late-shift work, work on Sundays those for minimum weekly wages. There are or holidays, and termination of employment. no separate provisions concerning workers Many agreements contain a guarantee of em- paid by results and their rates, with those of ployment, usually on a weekly basis. Thus, the time workers, and including earnings for skill, engineering agreement provides subject to a responsibility and incentive, will be determined number of conditions, "All hourly rated man- at local level." In a study of selected em- ual workers who have been continuously employers' associations for the Royal Commis- ployed by a federated firm for not less than 4 sion, one authority found only one association, weeks shall be guaranteed employment for 5 the National Federated Electrical Association, days in each normal pay week. In the event of that "... regulates the wage structure for the work not being available for the whole or part industry and does not permit variations from of the 5 days, employees covered by the guar- the wage rates agreed nationally." And it is antee will be assured earnings equivalent to stated in the general preface to the study by their time rate for 40 hours.'"6 The national Munns, and the broader study by McCarthy, agreement in the building industry, reflecting that "...in most industries associations must the special problems in construction, includes continue to allow for local bargaining by shop provisions relating to extra payments for work stewards, even if this results in wide dispari- involving discomfort, inconvenience, or risk, ties between earnings levelsamong member toolallowances,andtravelandlodgings firms and the development of so-called 'wage allowances." Many national agreements also drift'."75 These findings are echoed in the Re- contain a "Procedure Agreement" for the reso- port of the Royal Commission. lution of disputes. Such provisions are dis- However, national bargainsare not unim- cussed in the section of this chapter dealing portant with respect to wages. They do estab- with dispute settlement. lish minimum rates ofpay either for broad In substance, a national agreement incorpor- categories of workers or, as in engineering, for ates a number of basic terms of employment that are observed generally throughout the in- "National Joint Council for the Rubber Manufactur- " EngineeringEmployers'Federation,Foreman's ing Industry, Memorandum of Agreement,January Guide to National Agreements (1971), p. 35. The clause 1971, appendix C, clause 4 (i), p. 37. cited was agreed to in 1964. "Munns (and accompanying study by McCarthy), " National Joint Council for the Building Industry, op. cit., p. 6. National Working Rules for the Building Industry "!bid, p. xi. (1970).

37 dustry concerned. But much is left to local de- scene, and he has been elected by the work termination. Effective (or actual) rates of pay, group he represents. He often must operate in contrast with the minimum rates usually largely on his own authority. As the Report of specified in agreements, typically involve nego- the Royal Commission observes: "Where union tiation at the plant or company level. More- rule books mention shop stewards, and many over, national agreements frequently do not deal of them do not, they generally say something with, or provide only general guidelines to, a about method of appointment, and the body to variety of other problems that arise in day-to- whom the steward is nominally responsible. day work force administration. These include They may mention the duties of recruiting and shiftrotation,the distribution of overtime retaining members, and collecting subscrip- hours, methods of pay, and individual or group tions (dues). If the business of representing grievances over physical working conditions, members is touched on, little is said about it. work assignments, and disciplinary decisions. Most major unions now have Shop Stewards' Considerable scope clearly exists for decision- Handbooks, which set out some of these tasks making at the plant level. at greater length. But when it comes to telling In such decisionmaking, the shop steward the steward what issues he is competent to plays a crucial role from the union side. Fully handle and how he should go about raising to appreciate his role requires comment on them, most handbooks refer the steward to the three aspects of British union organization. industrywide agreement in force in his indus- The first is that typically more than one union try. These in turn are rarely comprehensive. will have representation in a given plant. Mul- Few say much more than the engineering tiunionism is by no means absent in the United agreement, which authorises the steward to States (e.g., in building, printing, railroading), take up questions which the worker or workers but it is endemic in British industry. It reflects directly concerned have been unable to settle the growth of "general" unions, taking in with the foreman." 79 largely the less skilled workers, along side of The number of shop stewards within a given craft or modified craft organizations. The sec- plant or facility is affected not only by factors ond is that local or branch unions are orga- .. such as the size of the undertaking, its depart- nized mostly on an area rather than a plant mental organization, and the occupational com- basis, which means that the membership of a position of the labor force, but also by the ex- given local usually is spread over a number of tent of multiunionism. The latter factor, while plants. The third is that there are compara- placing a premium on interunion cooperation, tively few full-time trade union officials. The may serve also to exacerbate jurisdictional(or Report of the Royal Commission estimates demarcation) disputes and to increase griev- their number at about 3,000 for a total union ances and claims affecting members of more membership of more than 10 million. than one union. It is generally conceded that workshop bar- In contrast, unions have about 175,000 shop gaining has increased in importance in recent stewards in British industry." Shop stewards years. This development was not planned;it represent the worker, to use an old phrase, at grew almost imperceptibly and, for atime, the point of production. Even the local union went largely unnoticed. It is no doubt related or branch is likely to be remote. If the branch to the full employment of the postwar years, has a full-time officer, he cannot easily keep in which tended for two reasons to increase the close touch with small groups of members scat- power of work groups on the shop floor.The tered over perhaps a score or more factories. first reason is that alternative employment The shop steward, on the other hand, is on the seems readily available. The second isthe reluctance of management to risk interruption to "On shop stewards, seee W. E. J. McCarthy and output when increased costs usually can be re- S. R. Parke, Shop Stewards and Workshop Relations, captured through product prices. Indeed, the Royal Commission on Trade Unions and Employers' Associations, Research Papers, 1(London:, H.M. Sta- Royal Commission, took the view that British tionery Office, 1968); and J. F. B. Goodman and T. G. managers augmented the influenceof work Whittingham, Shop Stewards in British Industry (Lon- don: McGraw-Hill, 1969). "Royal Commission .. .,Report. p. 26.

38 groups ". , , by their preference for keeping lockouts. Strikes and lockouts are, in effect, so- many matters out of agreements, by the inade- cial sanctions imposed in an effort to compel quacy of their methods of control over systems agreement. Procedures to minimize such occur- of payments, by their preference for informal- rences are generally developed by governments ity and by their tolerance of custom and and by the parties to collective agreements, but practice." 88 In these circumstances, in the view the existence of the right to strike underlies of the Royal Commission, "...the shop floor collective bargaining as it has evolved in demo- decisions which generally precede unofficial cratic countries." strikes are often taken against the advice of shop stewards. Thus shop stewards are rarely Table 14 shows basic statistics of work stop- agitators pushing workers toward unconstitu- pages due to labor-management disputes in the United Kingdom for the period 1960-70. The tional action...quite commonly they are sup- porters of order exercising a restraining influ- incidence of stoppages generally increased to- ence on their members in conditions which ward the end of the 1960's, and 1970 experi- promote disorder." 81 enced the largest number of working days lost In any event, an analysis of British in- during the 11-year period or, in fact, since the dustrial relations that centers exclusively on great general strike of 1926. In terms of the industrywide bargaining misses an important number of workers involved, however, 1962 ingredient. Local bargaining helps powerfully was the heaviest strike year during the period to determine many terms and conditions of em- covered by the table. Four industry groups- ployment and, of course, the character of la- basic metals, engineering, shipbuilding, and ve- bor-management relations in the setting in hicles-accounted for over two-fifths of the which production actually is carried on. The working days lost in 1970, and for even higher terms of national agreements are readily avail- proportions (e.g., almost four-fifths in 1962) in able. Agreements arrived at locally are much many of the other years for which data are less so, for workplace bargains are frequently shown. The widespread incidence of work stop- informal and unwritten, pages during 1970 is indicated by the number and proportion of working days lost in the "all Settlement of Disputes other" industry category,

Industrial relations disputes may be settled For a brief but excellent statement of the develop- peacefully or they may erupt into strikes or ment of British law in relation to industrial conflict, see Kahn-Freund, in Flanders and Clegg (editors), pp. *Ibid., p. 28. 101-127. See also Royal Commission ..., Report, pp. " Ibid., p. 29. 219-239,242-246.

TABLE14. UNITED KINGDOM : WORK STOPPAGES,'1960-70

Working days lost in stoppages (in thousands) Workers Number of involved Metals. en- Veer stoppages in gineering, Transport beginning stoppages Mining ship- Con. and All in period (in Total and building, atruction communi- other thousands) quarrying and cation vehicles

1960. 2.832 814 3,024 495 1,450 110 636 338 1961 2,686 771 3,046 740 1,464 285 230 327 1962. 2.449 4,420 5,798 808 4,559 222 431 278 1963. . 2,068 590 1,755 326 854 356 72 147 1964 . 2,524 871 2,277 309 1.338 125 312 194 1965 . 2,354 869 2,92.5 413 1,763 135 305 309 1966. . 1,987 530 2,398 118 871 145 1,09 195 1967. . 2,116 731 2,787 108 1.422 201 823 233 1968' 2,378 2,255 4,690 57 3,363 233 559 478 1969. 3,116 1,654 6,846 1,041 3,739 278 786 1,002 1970, 8,888 1,775 10,970 1,091 4,548 237 1,304 3,789 ' Excludes stoppages involving fewer than 10 workers and those lasting less than 1day, except any in which the aggregate number of working days lost exceeded 100. 2 Number of stoppages in 1968 not orecisely comparable with earlier Years because of change in method of reporting and countirur stoPPages in the port transport industry following decimalisation. , Preliminary. Non: Because of rounding, sums of individual items may not equal totals. Souttrz: Department of Employment Gazette, February 1971, table 133. p. 233.

39 Most stoppages are of short duration. In announced its willingness to reinstate the dis- 1969, the duration of stoppages involving two- charged men, if all industrial action (including thirds of the workers was not more than 6 the work-to-rule and overtime ban) was called days. Only about 12 percent of the workers off. This was agreed to on January 29." were involved in stoppages lasting 24 days or The Royal Commission concluded that "Un- more. official strikes are above all the result of the Most British strikes are "unofficial." The inadequate conduct of industrial relations at Department of Employment defines an unoffi- company and plant level. They will persist so cial strike as one "not called or recognized by a long as companies pay inadequate attention to trade union." The definition used by Knowles is their pay structures and personnel policies and similar but perhaps slightly more precise: the methods of negotiation adopted at the "... an unofficial strike is one which is not workplace remainintheir present chaotic recognized by the Executive Committee of a state. They will also persist so long as neither union." 83 Roughly 90 to 95 percent of all strikes employers nor trade unions are willing ade- in Britain are estimated by the Department of quately to recognize, define and control the Employment to be unofficial. An official strike part played by shop stewards in our collective is one called by the responsible officers of the bargaining system...and until the confusion unionorunionsconcerned,usuallyafter which so often surrounds the exercise by man- agreed procedural measures to avoid a stop- agement of its 'rights' has been resolved by the page have been exhausted, and ordinarily in- settlement of clear rules and procedures which volves the payment of strike benefits. In some are accepted as fair and reasonable by all cases, an "unofficial" strike, once underway, concerned." 85 may be declared "official." National collective bargaining agreements Most unofficial strikes originate on the shop do typically incorporate a "Procedure Agree- floor and are called by shop stewards, often ment" designed to provide a mechanism for the with prodding from the men they represent. resolution of dispute, but these appear, on the They involve, for the most part, real or alleged whole, to be cumbersome and inefficient devices grievances and are often "unconstitutional" in for the settlement of disputes at plant or com- the sense that disputes procedures specified in pany level, especially those involving individ- national agreements have not been exhausted. ual workers or small groups of employees. In A more or less typical example of an unofficial the large engineering industry, for example, strike, in this case involving British European the Procedure Agreement for adult manual Airways, may be cited. On January 25, 1971, a workers (there is a separate procedure for ap- maintenance electrician was dismissed at Lon- prentices, boys, and youths) "...lays down don's Heathrow airport engineering base for the procedure to be observed for dealing with refusal, on instructions from his shop steward, questionsraisedby individualworkers, to prepare aircraft engines for dispatch to groups of workers orallworkers inthe Rolls Royce for overhaul. Maintenance work at plant." 86 The agreement, to which 22 unions are the base had fallen behind because of a work- signatories, was last amended in 1955. With to-rule and overtime ban imposed by the union respecttodisputesinvolvingindividual several weeks earlier in connection with a pay workers or groups of workers, the procedure dispute. On the following day, 15 electricians briefly is as follows: the worker (or workers) and 9 fitters refused to undertake work on en- directly concerned shall discuss the question gines designed for overhaul at Rolls Royce. with the appropriate foreman ; if no settlement The were dismissed. At a mass meeting the is reached, the question shall be taken up with same day, the entire engineering staffat Heathrow voted o strike in protest; this ac- the shop manager or head shop foreman by the tion was followed later in the day by similar "Times (London), January 27-30, 1971. action by BEA engineering staff at Manchester " Royal Commission ..., Report, pp. 120 -121., and Glasgow. The airline was shut down. BEA " EngineeringEmployers'Federation,Foreman's Guide to National Agreements (1971), p. 4. The full u K. G. J. C. Knowles, Strikes (Oxford: Basil Black- Procedure Agreement for manual workers is set forth well, 1954), P. 30. on pp. 21-28.

40 appropriate shop steward and the workers (or power to compel the parties to a dispute to one of the workers) directly concerned; failing take part in conciliation. Where national issues settlement, the question, at the request of ei- are involved, assistance in dispute settlement is ther party, may be considered further at a given by headquarters staff of the Department meeting of the plant's Works Committee, cons- of Employment; manpower advisers stationed isting of representatives of management and in each of the Department's regional offices shop stewards; if the issue still has not been also are available for conciliation work. resolved, it may be referred for consideration to machinery set up in the national agreement for 2. Arbitration. The government also provides the avoidance of work stoppages. This is a arbitration facilities, but their use is only with three-step procedure involving (1) a confer- the consent of the parties to a dispute. " ence of the local plant management with full- Broadly, the Secretary of State for Employ- time officials of the employers' association and ment may refer disputes to arbitration by the the trade union or unions concerned; (2) a Industrial Court, °9 to a single arbitrator, or to a local conference between union and employers' board of arbitrators. Arbitration awards are association representatives; and (3) a central not legally binding on the parties, but since conference between representatives of the En- they are the result of a joint application to the gineering Employers' Federation and the Ex- Secretary of State they are almost always ac- ecutive(s) of the union or unions concerned. cepted. The agreement provides that no work stoppage shall occur unless this procedure has been car- 3. Inquiry and Investigation. The Secretary of ried out. State has authority to set up inquiries into in- Specific grievance procedures at plant or dustrial disputes through courts of inquiry or company level, with arbitration as the final committees of investigation." Consent of the step, are largely lacking in British industry." parties is not required to initiate such inquir- The ill-defined authority and responsibilities of ies. Courts of inquiry are primarily means of shop stewards, the lack in many cases of clear informing Parliament and the public of the managerial personnel policies, multiunionism, facts and underlying causes of a dispute, and and the informal nature of many agreements are appointed when no agreed settlement of a reached through local bargaining all contrib- dispute seems possible. Their appointment is ute to unofficial stoppages and other types of reserved for disputes of major importance af- industrial action (go-slow, overtime bans, etc.) fecting the public interest, and hence they are at plant level. used sparingly. A court typically will consist The Government has long had authority to of an independent chairman and equal numbers assist the parties to an industrial dispute to reach a peaceful settlement. Under the Conci- "Compulsory arbitration existed in Britain only dur- liation Act, 1896, and the Industrial Courts Act, ing and shortly after the two world wars. 1919, the Secretary of State for Employment The Industrial Court, whose members are appointed has the power to take action along three main by the Secretary of State for Employment and whose lines. costs are borne by the Exchequer, is a permanent and independent tribunal and is not in any way subject to Government control or influence. It is not a court of 1. Conciliation. In general, the Department of law and its decisions are not legally enforceable. How- Employment does not intervene in a dispute ever, the question of enforcement, in practice, does not until available negotiating machinery has been arise, since arbitration was agreed to by the parties. fully utilized. However, the Secretary of State Once an award is accepted or acted on, it forms a for Employment may take the initiative in of- term or condition of the contract of employment. In the fering conciliation, or he may act on the request Industrial Relations Act, 1971, the Court is renamed the Industrial Arbitration Board. of one or both parties. He does not have the ' A committee of investigation is similar to a court of inquiry. The investigation may be conducted by a " Most disputes procedures except in the nationalized single independent person sitting alone or by a small industries mention arbitration as a final method of committee. It is normally used in cases where the settlement only by agreement of the parties in specific public interest is not so general as to call for a court cases. of inquiry.

41 of employer and worker members from outside a whole industry (e.g., hotel and catering) ; the industry concerned. Persons with knowl- and (4) general questions (e.g., facilities for edge of the subject matter may be requested to shop stewards). furnish information and, where necessary, to In its reports, the Commission makes recom- give evidence under oath. Proceedings are usu- mendations on the issues before it, but the im- ally held in public. The parties may be repre- plementation of these recommendations is a sented by counsel at the discretion of the court, matter for the parties concerned. In its short and the court, if necessary, may sit with asses- existence, the Commission has prepared a num- sors (experts). ber of reports that, as in the case of reports by Although a court of inquiry is not an instru- courts of inquiry, throw considerable light on a ment of conciliation or arbitration, in its re- variety of industrial relations problems in Bri- port, it may make recommendations on which tish industry." settlement of the dispute can be based. The reports of courts and committees of inquiry con- Industrial Relations Act, 1971 stitute a valuable source of information on industrial relations issues and practices." Labor-management relations in many Bri- Recently an additional instrument has been tish companies and even industries are wholly created to assist in the resolution of difficult viable. But widespread problems do exist. They problems in labor-management relations. In are rooted, in part, in the historical develop- March 1969, a Commission on Industrial Rela- ment of trade union organization, employers' tions was established by Royal Warrant." Its associations,andcollectivebargainingar- broad mandate was to examine, on the basis of rangements. In part, they reflect the tyranny of references to it by the Secretary of State for custom in the attachment, for example, to pay Employment, "...the functioning and devel- systems that in some situations have become opment of institutions and procedures for the outmoded. Employers in many instances have conduct of industrial relations between em- failed to develop clear and consistent personnel ployers and their representatives on theone policies, and unions, for the most part, have hand and employees and their representatives not given adequate guidance to, or exercised on the other hand ; to promote improvement in sufficient control over, their shop stewards. such institutions, procedures and relations." " Both unions and employers, at least until re- The Commission has sought to work closely cently, have failed fully to appreciate the ris- with the parties in particular references from ing importance of plant-level bargaining and the Secretary of State, and, by the develop- the erosion that in somemeasure apparently ment of factual information and knowledge of has occurred in the significance of national the attitudes and beliefs of the parties, tose- agreements. The problem of unofficial strikes is cure agreement and change. Its work, which only one manifestation of weakness in the con- has been in the voluntary tradition of British duct of industrial relations. industrial relations, has included references to On a more general level, there is the issue, (1) union recognition cases; (2) industrialre- by no means unique to Britain, of reconciling lations problems within particular companies; collectivebargaining andfullemployment. (3) industrial relations problems throughout This is reflected, but only in part, in the problem of inflation which, whatever the origin of " See, for example, Report of a Court of Inquiry into specific inflationary episodes, inevitably mani- the Dispute Between the British Steel Corporation and fests itself in a struggle among contending Certain of Their Employees (London: H.M. Stationery groups over the division of the real income of Office, 1968, Cmnd. 3754) ; and Report of the Committee of inquiry into Certain Matters Concerning Labour in " See, for example, the following Commission reports Building and Civil Engineering (London: H.M.Sta- published by H.M. Stationery Office; No. 10, The Inter- tionery Office, 1968, Cmnd. 3714). national Harvester Company of Great Britain, Limited "This body is givena statutory basis by the In- (September 1970, Cmnd, 4469) ; No. 11, Hoover, Limited dustrial Relations Act, 1971. (November 1970, Cmnd. 4537) ;No. 12, Medical Re- "See Commissi'n onIndustrialRelations,First search Council (November 1970, Cmnd. 4531) ; and No. General Report, Report No. 9 (London: H.M. Station- 14, Standard Telephones and Cables, Limited (February ery Office, July 1970, Cmnd. 4417). 1971, Comnd. 4598).

42 the community. Indeed, reasonable price level ated unions were urged not to enter into le- stability,which would contribute to other gally binding collective agreements; to refuse forms of social stability, might do more than registration under the act ; and to refuse coop- any other one thing to improve both the climate eration with the new National Industrial Rela- and the conduct of industrial relations 95 tions Court and with the Commission on In- Contemporary concern with the industrial dustrial Relations. Trade unionists were ad- relations system was shown, of course, by the vised to refuse to serve on the Court and the appointment in April 1965, of a Royal Commis- Commission and to withdraw from the em- sion on Trade Unions and Employers' Associa- ployed persons' panel of Industrial Tribunals. tions, and its work over a 3-year period. In As indicated at the beginning of this chap- 1969, the then Labour Government issued a ter, the full effect of the new legislation on the White Paper entitled In Place of Strife." This industrial relations system will not be fully ap- paper was the prelude to a proposed Industrial parent for some years. It does represent an Relations Bill containing penal clauses, which historic break with the "voluntarism" that has waswithdrawnsubsequentlyundertrade characterized the growth of labor-management union pressure." The Conservative Government relations in Britain. Its general rationale, in presented a more farreaching Industrial Rela- the words of the Government's Consultative tions Bill to Parliament on December 1, 1970, Document, is that "Government has a responsi- following the circulation on October 5 of a bility to make clear the standards to which, on Consultative Document for comment by unions, behalf of the country as a whole, it expects the employers, and other interested parties." The conduct of industrial relations to conform, to es- Bill became law on August 5, 1971. tablish safeguards for the individual and the During its course through Parliament, the community, and to provide means for resolving Bill encountered strong opposition from the disputes over the machinery of industrial rela- Labour Party and from the trade unions. Sev- tions and the behaviour of the parties to it. eral 1-day demonstration strikes were staged; The proposed Industrial Relations Act will be these did not receive the support of the Trades the Government's main instrument in achiev- Union Congress or of most British unions, ing these objectives." 010 however. The delegates to a special TUC Con- The act certainly will modify, but in no gress on March 18, 1971, defeated a proposal sense destroy, the institutions and conduct of for the use of protest strikes against the collective bargaining and joint consultation. impending legislation. Instead, a series of pro- Basic terms and conditions of employment will posals essentially for noncooperation in the im- continue to be determined largely through the plementation of the provisions of the measure collective bargaining process. With respect to (which the Congress assumed would in fact be- some employment terms, the legal rights of come law) were adopted." For example, affili- employees are extended (e.g., unfair dismissal). Opinion differs as to the effectiveness of See the perceptive paper by Alan Fox and Allan the TUC's present position with respect to the Flanders, "The Reform of Collective Bargaining: From act. Donovan to Durkeim, British Journal of Industrial Relations, July 1962, pp. 151-180. The Industrial Relations Act (I.R.A.) is de- " In Place of Strife: A Policy for Industrial Rela- tailed and comprehensive and runs (with the tions (London: H.H. Stationery Office, January 1969, schedules attached to it) to about 140 printed Comnd, 3888). pages. The brief summary in this chapter is " The position of the Trades Union Congress is stated designed only to indicate its major provisions. inits report, Industrial Relations: Prograr me for Action (London, 1969), adopted at a special TUC General Principles (I.R.A. Part I, Section 1). Congress on June 5, 1969. "The general perspective of the Conservative Party The act is designed to promote (a) collective on industrial relations reform was indicated in a 1968 policy statement, Fair Deal at Work. forth on pp. 40-42. For a detailed report of the debate, " See Trades Union Congress, General Council's Re- see Daily Telegraph (London) and Times (London), port to a Special Congress on the Industrial Relations March 19, 1971., Bill (London, 1971). The seven recommendations of the " Department of Employment, Industrial Relations General Council, all of which were adopted, are set Bill: Consultative Document (London, 1970), P. 1.

43 bargaining freely and responsibly conducted ; gaily binding, unless there is an express provi- (b) orderly nrocedures in industry for the sion to the contrary in the agreement. peaceful settlement of disputes by negotiation, Where a procedure agreement is nonexistent conciliation, or arbitration, with due regard to or defective, the Secretary of State for Em- the general interests of the community; (c) ployment or one of the parties concerned may free association of workers in independent requesttheNationalIndustrialRelations trade unions and of employers in employers' Court to refer the case to the Commission on associations; and (d) freedom and security for Industrial Relations. The Commission will at- workers,protected by adequate safeguards tempt to work out an agreed procedure, but if against unfair industrial practices, whether on this is impossible, its recommendations may be the part of employers or others. made legally binding by the Court. The Secretary of State for Employment, by Code of Practice (I.R.A. Part I, Sections 2-4). regulation, may require employers to provide Within 1 year from the date of the passage of him with the particulars of procedure agree- the act, the Secretary of State for Employment ments to which they are party or which they is required to draft, and present to Parliament, observe. a code of practice for the guidance of those Reference also can be made by the Court to who manage industrialrelations,including the Commission in union disputes over bar- guides to the disclosure by employers of infor- gaining rights for specified groups of em- mation essential to collective bargaining, and ployees. The employer, or the recommended the establishment and maintenance of effective bargaining agent (a union or a panel of two or means of negotiation, consultation, and com- more unions) then can apply to the Industrial munication at all levels between management Relations Court to make the Commission's rec- and workers. ommendations on sole bargaining rights enforceable. The Court will grant the application Rights of Employees (I.R.A. Part II, Sections if the recommendations are favored by the em- 5-33). The worker has a statutory right to be- ployees concerned, as evidenced by a majority long or not to belong to a trade union, and it is of those voting in a secret ballot. It would then an unfair industrial practice for an employer be an unfair practice for the employer to re- or a union to interfere with the previous exer- fuse to negotiate with the bargaining agent, or cise of this right. The pre-entry closed shop to negotiate with any other organization with (i.e., where union membership is a condition of respect to the employees in the bargaining employment) is banned, but under closely de- unit. fined circumstances a postentry closed shop 101 Employers are required A, tl:sclose informa- may be permitted. However, unions and em- tion to trade union representatives which is es- ployers may enter into agency shop agree- sential in the conduct of collective bargaining, ments. The worker is given statutory safe- and large employers may be required by the guards against unfair dismissal,withIn- Secretary of State for Employment to disclose dustrial Tribunals having power to recommend specified information annually to their em- reinstatement or award compensation. (See In- ployees. dustrial Relations Courts in this section.) Provisions in the Contracts of Employment Registration and Conduct of Trade Unions and Act, 1963, with respect to notice of termination Employers' Associations(I.R.A.Part IV). of employment are liberalized, and the inclu- The act mvides for the appointment of a sion of certain items in written statements of Chief Registrar of Trade Unions and Em- employment contract terms is specified. ployers' Associations, who in turn has authority to appoint a number of assistant registrars. Collective Bargaining (I.R.A. Part III). The It defines a trade union and an employers' asso- act makes collective bargaining agreements le- ciation as a workers' or employers' organization, respectively, concerned principally with ' See Industrial Relations Act 1971, sections 17 and industrial relations and registered with the 18, and schedule 1. new Registrar.

44 material The main responsibilities of the ChiefRegis- the original dispute and is not giving trar are to ensure that the rulesof trade un- support to any party to the dispute. ions and employers' associationsconform to certain standards and are observed.Guiding Industrial Relations Courts (I. R. A.Part VI, principles for the conduct oforganizations of Section 99-119). The Act establishes a new sys- workers and employers are incorporatedin the tem of industrial relations courts.The apex of act. Conditions for registration arethat the or- the new court systemisthe National In- ganization is independent and has powerto dustrial Relations Court, consisting ofpresid- alter its own rules and control its propertyand ing judges nominated by the LordChancellor funds. The Registrar has the powerto initiate and the Lord President of the Court ofSession inquiries and investigate complaints concern- from the higher judiciary, and laymembers ing the conduct of registeredorganizations, with special knowledge or experienceof in- and to take unresolved cases tothe National dustrial relations appointed by Her Majesty on Industrial Relations Court foradjudication.'" the joint recommendation of the LordChancel- lor and the Secretary of State forEmploy- (I.R.A. Part ment. On a point of law only, thereis a right Other Unfair Industrial Practices the V). It is an unfair industrialpractice for any- of appeal from decisions of the Court to one, other than a registeredtrade union or em- Court of Appeals or, in Scotland, to theCourt ployers' association, or a personacting within of Session. the scope of his authority on behalfof such an The Court hears and adjudicates complaints organization, to induce or threaten toinduce of unfair industrial practices under theact. It another person, in the furtherance of anin- can award compensation andib....e restraining dustrial dispute, to break a contract towhich orders. In appropriate cases, it canauthorize the presentation of a claim to the Industrial he is a party. Arbitration Board. The Court may hear ap- It is an unfair industrial practice for anyone In- in furtherance of an industrial disputeto call peals onquestions of law from decisions of or threaten to ca;i astrike, any irregular industrial Tribunals. dustrial action (e.g., an overtime ban), or a Industrial Tribunals were first established under the Industrial Training Act, 1964, and lockout, for the purpose of aiding andabetting to industrial prac- their jurisdiction was subsequently extended anyone carrying on an unfair claims arising under other legislation (e.g.,the tice specified in the act. Redumdancy Payments Act). Their jurisdic- It is an unfair industrial practice for any- tion is further extended by the IndustrialRela- one, in contemplation orfurtherance of an in- tions Act, in general, to claims by individuals dustrial dispute, to take or threaten to take ac- of unfair industrial relations practices(e.g., tion to induce a breach of contract, or to inter- unfair dismissal by an employer or denialby a fere with the performance of that contract, union of the right of a member to participate against any other person who is not a party to fully in union activities). IndustrialTribunals have power to award compensation andto 1' Only registered trade unions and employers, associ- make orders determining the rights of anindi- ations are recognized as such. An unregisteredunion, have no au- although it will contioLe to enjoy protection from pro- vidual or of an organization. They ceedings for criminal or civil conspiracy, is not afforded thority to issue restraining orders. The exist- benefits incorporated in the act. For example, it will ing Industrial Court, which was set upunder not be able to enter a claim forrecognition before the the Industrial Courts Act, 1919, is renamedthe NationalIndustrialRelations Court or operate an Industrial Arbitration Board. It willcontinue agency shop. It is an unfair industrialaction for an to deal with claims under the Termsand Con- unregistered union to induce (or threaten to induce) also will workers, in the course of an industrialdispute, to ditions of Employment Act, 1959, and break their contracts of employment. Other disabilities be responsible for the arbitration ofclaims re- attach to nonregistration. The TUC, in its programof ferred to it by a registered trade union,under noncooperation, has stated that it will "advise" affiliated the authority of the new NationalIndustrial unions not to become registered under the act.The Relations Court, in cases where the employer however, long-runconsequences of nonregistration, had failed to disclose to the unioninformation could be severe.

45 essential to collective bargaining or to comply Relations in Nonunion Enterprises with a requirement to negotiate with it. Commission on Industrial Relations (I. R. A. Labor-management relations in nonunionen- Part VI, Sections 120-123). The act gives statu- terprises are not subject to any general legal tory status to the Commission on Industrial requirements with respect to procedures for Relations, which was originally set handling internal grievances or other industrial up in relations matters. Such establishments March 1969. Its chairman and membersare ap- are sub- pointed by the Secretary of State for Employ- ject, of course. to inspection for compliance with health and safety standards, protective ment, and the Secretary (either aloneor with other Ministers) will continue to refer to it for legislation for women and young persons, and, investigation and recommendations industrial where appropriate, for compliance with the de- relations questions either of terminations of Wages Councils or Agricultural a general charac- Wages Boards. ter or ;elating to a particular industryor undertaking. Other cases may be referred to the Allegedfailures by employers to comply Commission by th3 National Industrial Rela- with the provisions of the Redundancy Pay- tions Court. Its annual report to the Secretary ments Act or the Contracts of Employment Act of State shall include a general review of the (see chapter IX) may be taken by workers be- development of collective bargaining in Brit- fore Industrial Tribunals. ain, with emphasis on problems thatappear to Under section 8 of the Terms and Conditions be of special importance. of Employment Act, 1959, representativeor- ganizations of workers or employers have the Emergency Procedures (I. R. A. Part VIII). right to invoke, through the Secretary of State The act empowers the Secretary of State for for Employment, the adjudication of the In- Employment to apply the National Industrial dustrial Arbitration Board (formerly the In- Relations Court for an order restraining any dustrial Court) in cases where, in the view of strike, irregular industrial action shortof a strike, or a lockout which has begunor is likely the petitioning organization, an employer is to begin if in his judgment the actionhas not observing the terms and conditions of em- caused or would cause an interruption in the ployment that have been established through supply of good or services of sucha nature as collective agreement for the industry in which (a) to be gravely injurious to the nationalecon- he is engaged. An award by the Board is le- omy, to imperil national security, or to create gally binding and has the effect ofan implied serious ri.s:{ of public disorder ;or (b) to en- term of the contract of employment. The claim danger the lives of a substantial number of /oust be made by a "rep-0 tentative" organiza- persons or expose them to serious risk of dis- tion and not by the workers directly concerned. ease or personal injury. The order would apply Apparently, in practice, this provision has been for a period up to 60 days during which time little used. Indeed, it is probable that, particu- settlement of the dispute would be sought. larly under cslitions of high-level employ- The Secretary of State also may apply to the ment, unorganized employers will tend to ob- National Industrial Relations Court foran serve the standards of wages (which are often order for a secret ballot of workers to be taken minimum) and other terms of employment set in a strike or impending strike that appeared forth in national collective agreements for their to threaten the national healthor safety. industries.

46 ' PART IV. CONDITIONS OF EMPLOYMENT

Chapter IX. Employment Practices

Records and Reports The Industrial Relations Act, 1971, further requires the employer in his written statement There are no general legal requirements for to give the employee more detailed information the maintenance of personnel records for indi- about his entitlement to holidays and holiday vidual employees. The form and content of pay; information on his right to choose whether such records are within the discretion of the to belong to a trade union, including, where employer. However, due regard must be paid to appropriate, the conditions of an agency shop recordkeeping that permits compliance with such legal obligations as income tax deduction, agreement; and on the procedure available to the payment of social security contributions, the employee when he has a grievance about his severance payments to redundant employees, employment, specifying the person to whom he or that facilitates, as in the case of wage stan- should first apply to invoke the procedure. dards established by statutory boards, inspec- In the event of a change in employment tions for compliance. In some instances, pre- terms, an employer within 1 month must in- scribed forms must be used, as in the reporting form the employee of the nature of the change. of job inquiries. Virtually all employees working more than Under the Contracts of Employment Act, the specified minimum hours are covered by 1963, an employer is required to provide an the requirements of the act for written partic- employee whose hours of employment are nor- ulars of their terms of employment. The prin- mally not less than 21 weekly with a written cipal exceptions are registered dock workers statement of his terms of employment. This engaged in dock employment, merchant sea- statement must be furnished not later than 13 men, fishermen, Crown servants, and the im- weeks after the beginning of the period of employment. It must identify the parties to the mediate relatives of an employer. agreement, specify the date when employment began, and indicate the terms of employment Preemployment Inquiries (as of a specified date not more than 1 week before the statement is furnished) with regard Verification of the previous experience, edu- to: cation, and other qualifications of job applicants is a responsibility of employers. The Em- a.the scale of rate of remuneration, or the method ployment Exchange Service does not perform of calculating remuneration; this duty with respect to workers referred in b.the intervals at which remuneration is paid; response to employer job orders. Employment c.any terms and conditions relating to hours of .Exchange records do contain considerable in- work; formation (e.g., apprenticeship, immigrant sta- d. any terms and conditions relating to holidays and holiday pay; incapacity for work due to tus, previous employment) concerning appli- sickness or injury, including any provisions for cants seeking work, but this information is sick pay; and pensions and pension schemes; used only for referral purposes. It is not known e.period of notice for the termination of contract to what extent private employment agencies employment. attempt to secure character or other references

47 for job applicants or, to the extent that they the service is provided directly by the Depart- do, whether they make such information avail- ment. Its main responsibilities are to provide able to prospective employers. Inmany cases, young people and their parents with informa- of course, workers secure jobson their own tion on careers, employment, and further edu- initiative. cation; to give career guidance toyoung peo- Employees in the Civil Service and in the ple in their later years at school; to helpyoung private sector, who are engaged in work ofa people find suitable employment and employers confidential or restricted nature,are required suitable workers ; and to follow theprogress of under the Official Secrets Act to signa state- young people in employment and give them fur- ment that they will not reveal withoutproper ther help. authorization any restricted information dur- In March 1966, an occupational guidance ing or after their period of employment. service for adults was launched, and staff for this purpose now exists in a number ofex- Hiring changes. The exchanges also are concerned with recruitment for vocational training in Hiring by employers in Great Britain is done government training centers, where free train- throug''he Employment Exchange Service, ing presently is given in about 45 skilled private employment agencies,or from among trades. Industrial rehabilitation services, in- direct applicants. tended primarily for people who need help to The British national system of publicem- adapt themselves mentally and physically to ployment offices dates from the Labor Ex- resumption of work after completion of medi- changes Act, 1909. The primary responsibility cal treatment, are provided at 23 Industrial of the Employment Exchange Serviceis to Rehabilitation Units throughout the country. place people in suitable jobs andto fill va- Under the Disabled Persons (Employment) cancies notified by employers.703The Service is Acts of 1944 and 1958, employers of 20 ormore intended not only for the unemployedbut also workers have a statutory obligation to employ forthose employedpersons who wish to a quota of disabled persons (the standard quota change johs. Employers and employeesare free is presently 3 percent). The Employment Ex- to use private employment agencies,direct re- change Service provides for the vocational cruitment, or job search. training and industrial rehabilitation of disa- All but the smallest towns haveemployment bled persons ; maintains a special register of exchanges, and large cities havemore than disabledpersons seeking employment; and one. In all, more than 1,000 offices, including seeks to place such persons in suitable jobs. suboffices, are in operation. All exchangesmain- Sheltered workshop employment is provided tain registers of situations vacantand wanted for the severely disabled. Permitsare issued in routine white-collaras well as manual em- also through the Service for the Employment ployments, and over 40 of the largerexchanges of Foreign Workers.I04 maintain registers for senior postsin industry, The Employment Exchange Service made cornmeroe, and the professions. In several of the 1,877,000 job placements in 1969. The propor- larger cities, special offices exist forhotel and tion of total placements made through the Ser- catering workers, and thereare special place- vice is not known with any precision. Thepro- ment and advisory services fornurses and al- portion undoubtedly is greater for mantic] jobs, lied health staff. especially the less skilled.Private agencies The Youth Employment Service,largely fi- are very active in the field of white-collar place- nanced and in part directed by theDepartment ment, especially for typists, secretaries, and of Employment, is concerned withthe employ- clerical personnel generally. Direct recruitment ment problems of young people. Itoperates in most areas through offices establishedby local " The Employment Exchange Service performsa education authorities ; in the remaining number of other duties, including, on behalf of the De- areas, partment of Health and Social Security, all local work in connectio 1with unemployment benefit,including '"' In many areas, the local education authoritiesare adjudication of claims by staff appointed as insurance primarily responsible for finding suitable employment officers, payment of benefits, and reference of certain for young people under age 18. cases to local tribunals.

48 by employers through newspaper advertise- terminated for reasons other than misconduct, ments and other means is extensive. is entitled to a week's notice or, at the option A worker seeking a job normally will have of the employer, pay in lieu thereof. After 2 identification in the form of a national insur- years of employment, the period ofnotice by ance number. Hiring standards (aptitude tests, the employer is controlled by the Contracts of physical examinations, etc.) are matters for Employment Act. The employee must give a employer determination,exceptthat young week's notice of intention to quit after employ- persons under age 18 must have medical certif- ment of 4 pay weeks or more.105 Somewhat sim- icates of fitness for work in factories and some ilar provisions are found in the national agree- other employments. ment for the chemical and allied industries.306 Under the Redundancy Payments Act, 1965 Notice Periods and Separations and 1969, an employee under specified conditions is entitled to severance pay if his dismissal Under the Contracts of Employment Act, resulted from the fact (1) that his employer 1963, as amended by the Industrial Relations ceased to carry on the business, or ceased to Act, 1971, a minimum period of notice must be carry it on in the place where the employee was given by an employer to terminate the contract engaged; or (2) the requirements of thebusi- of employment of an employee who has been ness for work of aparticular kind ceased or employed continuously for 13 weeks or more. diminshed. Employees are not eligible for pay- The notice periods specified are: ments if they have less than 104 weeks of continuous service with their employer,normally Length of employment Notice required work less than 21 hours a week, or if their ser- Less than 2 years 1 week (60th 2 but less than 5 years 2 weeks vice ends or after their 65th birthday 5 but less than 10 years 4 weeks for women). A few categories of workers (e.g., 10 but less Ilan 15 years 6 weeks registered dockworkers engaged in dock work) 15 years or n.)re 8 weeks are not covered by the acts.Under certain conditions, an otherwise eligible employee who re- For the purposes of the act, a contract may fuses alternative work with his employer is not be expressed or implied, oral or written, and entitled to severance pay. for either service or apprenticeship. The act The amount of payment depends on an em- applies virtually toallemployeesin Great ployee's rate of pay, years of service, and age. Britain (that have at least 13 weeks of service Complete years of service normally will count with a particular employer and continuous ser- for payment as follows: for each year of em- vice thereafter), except for certain categories ployment between ages 18 and 21 inclusive, of employees under the Dock Workeis (Regu- half a week's pay; between ages 22 and 40 in- lation of Employment) Act, 1946, and the Mer- clusive, one week's pay ; between ages 41 and chant Shipping Act, 1894. The provision that 64 (59 for women) inclusive, one and a half an employee must have been employed for at week's pay. least 13 weeks before entitlement to notice has schemeis the effect of excluding many workers in short- The"redundancy"payments term jobs (e.g., in construction). financed by employers who make weekly con- The act also requires that an employee must tributions (6p for employed men and 3p for give his employer at least 1 week's notice of employed women) to the Redundancy Fund. Mese payments are collected with the flat -rate his intention to quit if he has been working for contributions. Any em- the employer for 13 weeks or more. nationalinsurance Collective agreements may provide for notice ployer who makes a "redundancy" payment as on terms more favorable than those legally re- required by the act may claim a rebate from quired. Thus, the national agreement between the Fund to cover a portion of the payment. the Engineering Employers' Federation and '" EngineeringEmployers'Federation,Foreman's the Confederation of Shipbuilding and Engi- Guide to National Agreements (1971), P. 5. neering Unions provides that a worker who " Chemical and Allied Industries, Joint Industrial has been employed continuously for not less Council, Constitution and Schedule of Wage Rates and than 4 pay weeks, and whose employment is Working Conditions (May 1970), appendix D, pp. 31-32.

49 During the 3-month period April 1June 30, Some national agreements dealexplicitly 1970, payments under the act amounted to with disciplinary problems. In rubbermanu- £19,792,000 (US$47,500,800) of which £10,897,000 was borne by the Fund and facturing, for example, provision is made for £8,895,000 was paid directly by employers. warnings to employees of shortcomings incon- Payments were made to 75,415 employees, in- duct or job performance before disciplinaryac- cluding 515 in government departments. tion; decisions on suspensionor dismissal are made by the personnelmanager after consultation with the employee and his Disciplinary Actions representative. The employee has the right to appealthrough The maintenance of discipline isa manage- conciliation machinery, which containsa num- ment responsibility, but its exercise in particu- ber ofsteps,established by thenational lar cases may be challenged by the unioncon- agreement.1°7 cerned. In general, well-defined grievancepro- In practice, most disciplinary disputesap- cedures to handle disciplinary cases (and other pear to be resolved at the local level through disputes arising under existing collective bar- relatively informal procedures. However, the gaining agreements) are not widespread at the general absence of clear-cut machineryfor the plant or company level in British industry. As expeditious settlement of such disputes (and of shown in Chapter VIII, national agreements do other disputes arising under the terms ofagree- typically contain a "Procedure Agreement"designed to provide mechanisms for the resolu- ments) contributes to the problem of unofficial strikes discussed in Chapter VIII. tion of disputes, but on the whole, theseappear to be cumbersome avenues for the settlement National Joint Council for the Rubber Manufactur- of disciplinary (or other) questions involving ing Industry, Memorandum of Agreement (January individual workmen or smallgroups. 1971), appendix B, pp. 32-33.

Chapter X. Hours of Work andPremiums

Hours of Work to be no Sunday work; and that the maximum With few exceptions, there is period of work without a break is to be 4 1/2 no legal regu- hours. Overtime is limited to 6 hours weekly lation of hours of work formen in Great Brit- ain. The exceptions and 100 hours in any calendaryear, and is not relateto seamen; to to be worked in more than 25 weeks. workers in the baking, coal mining, and road Power to grant exemptions to these limita- haulage (trucking) industries;and to workers in automatic sheet glass factories. tions on the hours of work, includingnight work, of women and youngpersons is lodged Legal limitation on the hoursof work of with the Secretary of Ctate for Employment. women and young persons in factories, on the Special Exemption Orders currenton Septem- other hand, dates from 1833. Themajor statute today is the Factories .Act, 1961.1" ber 30, 1970, applied to 182,378women and Its prin- young persons,'" of whom 91 percentwere cipal provisions with respect tohours are that women. The nature of the exemptions included women and young persons (over the school- work in excess of the limitations with respect leaving age of 15 but under18) employed in to daily hours or overtime, night-shift work, factories are not to workmore than 9 hours in and work on Saturday afternoons any day or 48 hours in any week; that working or Sundays. The normal or standard hours of work for hours are to be between 7a.m. and 6 p.m. (7 a.m. and 1 p.m. on Saturdays); that there is " This number represents the rum of the numbers given by employers in their applications for exemptions. " Other statutes are the Employmentof Women, The actual number may vary from time to time. See Young Persons and Children Act, 1920; and the .Hours Employment and Productivity Gazette, October 1970, of Employment (Convention) Act,1936. p. 885.

50 TABLE 16.GREAT BRITAIN: PERCENTAGE DISTRIBUTION most manual workers and for substantial num- WORKED, APRIL bers of white-collar workers are fixed by col- OF FULL-TIME WORKERS BY WEEKLY HOURS 1970 lective bargaining agreements or by Wages Re- gulation Orders for those industries for which Percentage distribution of- Male Female Wages Councils(andAgricultural Wages Weekly Males Girls hours Non- under Non- und18 er Boards) have been established. During the worked Manualmanual 21 Manualmanual 1960's, a widespread movement for reduction Total.. 100.0 100.0 100.0 100.0 100.0 100.0 in the length of the normal work week oc- Not more than 35 5.6 14.2 9.2 22.9 24.4 16.1 curred. In consequence, normal weekly hours More than 35 but not more for manual workers declined by about 8 per- than 39 6.9 47.8 18.4 15.5 49.6 38.1 latter More than 39 cent between 1960 and 1970.110 In the but not more than 40 . 22.4 14.5 29.2 39.5 9.4 27.6 year, standard weekly hours,exclusive of More than 10 65.1 23.5 43.2 22.1 16.6 19.2 mealtime, were typically 40 in manufacturing, Sottacw.: "New Earnings Survey. 1970:Part 4, Department of worked in either 5 or 6 days. In coal mining, Employment Gazette. February 1971, table 102. p. 145. the normal working week consisted of 5 succes- the youths sive shifts of 7 1/4 hours for underground and 38 hours. About 87 percent of and boys, both blue- and white-collaremployed workers and 5 successive shifts of 8 1/4 hours 40 or for surface workers. The standard work week full time had normal weekly hours of less. for a substantial proportion of white-collar For most women (65.6 percent) employed workers was less than 40 hours. full time in blue-collar jobs, normalweekly Table 15 contains distributions of full-time substantial employees by normal weekly hours in April hours were between 39 and 40; a for proportion(27.3percent)enjoyed shorter 1970. The distributions differ materially hours standards. More thanthree-fourths of male blue-collar and white collars workers. Al- the women in white-collar jobs had standard most 79 percent of the full-time blue-collar of men had normal hours of 39 to40 (most of weekly hours of less than 40. In the case girls under 18, for whom separate data bytype these were undoubtedly at exactly 40 hours). had On the other hand, about 70 percent of the men of work are not presented, almost half white-collar employments had standard standard hours below 40, and an additional in two-fifths were at the 40-hour level. weekly hours of 39 or less. There was a large workers concentration-about 48 percent)-between 36 A 5-day week is standard for most in Great Britain. In 1968, more thanfour-fifths both TABLE 15.GREAT BRITAIN: PERCENTAGE DISTRIBUTION of the employees, male and female, in OF FULL-TIME WORKERS BY NORMAL WEEKLY HOURS OF manual and nonmanual jobs, were on thisstan- WORK, APRIL 1970k dard. Most of the remainder were on a 51/2- day week. Percentage distribution of- Particularly for male manual workers, the Youths Male and Female distribution of employees by actual weekly Normal boys Girls weekly Blue- White.under Blue- White-under hours differ markedly from the distribution hours collar collar 21 collar collar 18 relating to normal hours. (See table 16.)Al- Total .. 100.0 100.0 100.0 100.0 100.0 100.0 though less than 11 percent of such workers Not more than 35 1.1 16.3 4.4 14.1 26.9 12.2 had standard hours in excess of40 a week in More than 35 but not more April 1970, almost two-thirds actuallyworked 13.2 50.2 36.7 than 39 - 9.6 54.6 18.3 More than 39 more than 40 hours. Aprimary reason for the but not more than 40 78.7 19.4 64.5 65.6 9.7 39.8 significant divergence between normal and ac- More than 40 .. 10.7 9.6 12.8 7.2 13.1 11.5 tual hours for male manual workers, asshown As defined in the source of this table, "Normal basic hours means for the number of hours. excluding main meal breaks, and also a I over- in Chapter XI, is the extent to which pay time, which the employee was expected to work in a normal week." overtime work has become a regular partof Note: Because of rounding, sums of individual items may not equal total.. the pay packet. This factor is oflimited impor- Smut: "New Earnings Survey, 1970" Part 4. Department of jobs and for Employment Gazette, February 1971, table 101. p. 145. tance for men in nonmanual women generally. of hours actually Information on average weekly hours ac- 1' The decline in average number is worked was not as great. tually worked by adult manual workers

51 available for October 1970 for a variety of in- vehicles. There appears to have been a continu- dustries for the United Kingdom. Summary ing growth in shift work since the mid-1950's. data for men and women working full time are Shift work is a matter for collective bar- shown in table 17. For each industry group, gaining, Union attitudes vary, but ". .. most the average for men was substantially greater unions recognize the need for shiftwork in cap- than the average for women. In manufactur- ital intensive industries or in public utilities ing, the difference was 7.2 hours (44.9 hours where a 24-hour service is required, and are for men compared with 37.7 hours for women). prepared to accept its operation provided pre- Men in three industry groups (mining and mium rates which they regard as satisfactory quarrying,exceptcoal;construction ;and are paid. Some are opposed to shiftwork in transport and communication) had higher av- principle, and it is their stated policy to keep it erage hours than in manufacturing. In only to a minimum. But in practice the majority are one industry (transport and communication) pragmatic intheir approach, and are con- did the average hours of women exceed 40. cerned with negotiating the best possible terms TABLE17. UNITED KINGDOM: AVERAGE WEEKLY HOURS for their members." 112 WORKED BY FULL-TIME ADULT MANUAL WORKERS,' BY INDUSTRY GROUP, OCTOBER1970 Overtime Premium Average weekly hours worked Premium rates for overtime work typically Industry group= Malt Female are established through collective bargaining. Manufacturing .... . 44.9 37.7 Mining and quarrying (except coal) 51.8 37.6 Construction A variety of practices are reflected in the . 47.5 38.1 Gas. electricity. and water 44.0 36.1 terms of national agreements. Overtime rates Transport and communication 49.2 42.8 Miscellaneous services 44.4 38.5 Public administration in some agreements are based on weekly rather 43.7 39.7 than daily hours. Graduated rates are common. l Men 21 years and over women 18 years and over = PM Standard industrial Classification. For example, in the engineering industry 1 1/3 Sawn: Department of Employment Gazette,, February 1971. table the regular rate is paid to day workers for the 122. pp. 219-210. first 2 hours of overtime, and 1 1/2 there- Nightwork after."' In the manufacture of surgical instru- As indicated in the preceding section, there ments, the specified rates are 1 1/3 for the first are, with few exceptions, no legal restrictions 2 hours of daily overtime; 1 1/2 for the third on the hours of work of men, including night and fourth hours; and double time thereafter. work. On the other hand, night work is forbid- An analysis of overtime provisions in effect den for women and young persons in manufac- as of April 1970 in 88 agreements showed the turing and certain other employments covered following rates for the first hour of daily over- by the Factories Act. The Secretary of State time for Monday through Friday: 11/4 (36 for Employment may grant exemptions to this agreements) ; 1 1/3 (25 agreements); 1 2/5 (2 prohibition. As of September 30, 1970, night- agreements); and 1 1/2 (25 agreements). For shift exemptions applied to 20,373women (18 the third hour of overtime, 82 agreements years and over) and to 1,437 boys over 16 but specified time and one-half. Rates for overtime under 18 years. hours for day workers on Saturday tend to be It has been estimated that in 1968about 25 higher than for the Monday-Friday period."' percent of the adult workers engaged full time inblue-collar work were employedon late 1" National Board for Prices and Incomes, Report No. 161, p. 74. shifts in manufacturing, and about 19 percent "' The term "engineering industry" as used in Great in nonmanufacturing industries."' Thepropor- Britain, refers to four major manufacturing groups: tion of night-shift workers was particularly (1) machinery (except electrical), (2) electrical ma- highinmetalmanufacture,mining and chinery,(3)instruments and related products, and quarrying, transport and communication, and (4) transportation equipment. 1" National Board for Price and Incomes, Report No. 1" National Board for Prices and Incomes, Report No. 161, p. 98. The basic source for data on premium rates 161, Hours of Work. Overtime and Shiftwarking (Lon- of pay is the annual publication of the Department of don: H.M. Stationery Office. December 1970, Cmnd. Employment on Time Rates of Wages and Hours of 4554), table W, p. 65. Work. The most recent issue relates to April 1, 1971.

52 Overtime ratesfor night workers may be paid vacation. The length of servicequalifying higher than for day workers. a worker for a fullvacation is typically 1 year As with overtime, practice with respect to of continuous employment; workershaving premium rates for late shift work varies con- less than the full qualifying period are often siderably. The premium may be stated as a entitled to a shorter vacation or, if a full vaca- fixed supplement or as a percentage addition to tion is granted, to less than the full amount of the hourly rate. In some agreements, a paid holiday pay. meal break also is specified for late-shift work- Collective agreements often deal with the ers in addition to the shift premium. The size calculation of vacation pay, which may present of the premium, whether in fixed or percentage particular problems where wage incentive sys- terms, is by no means uniform among agree- tems are used, and with other matters, such as ments. The rates laid down in at least some vacation allowances for workers who leave national agreements are considered by the par- their employment before they have taken their ties to be minimums, and may be exceeded as vacation. Similarly, the Wages Regulation Or- Agricultural a consequence of negotiations at companylevel. dersof Wages Councils and Wages Boards set forth in some detail the conditions that surround entitlement to paid 'vaca- Paid Leave tions. A third form of paid leave widely foundin British industry is represented by occupational In British terminology, "holiday" refers not sick pay schemes; i.e., pay for time lost be- only to specific days set aside by law or custom cause of illness. These plans areadditional or as nonwork days, but also to annual vacations. complementary to sickness benefit under the Nearly all workers in Great Britain are enti- national insurance system. Their coverage is tled to either five or six statutory or public hol- more extensive for white-collar thanfor man- idays with pay. In England and Wales, these ual workers, but even for the latter category holidays are Good Friday and Christmas, and 62.9 percent of the male workers and 48.8 per- four bank holidays as follows: Easter Mon- cent of the female workers were covered asof day; last Monday in May or first in June; last April 1970., Monday in August or first in September; and thefirst weekday after Christmas (Boxing Day). In Scotland, three bank holidays typi- Periodic Rest Day Premium cally are observed. The timing of holidays may As previously noted, the Factories Act for- be varied by local agreement, and in some cases bids the employment of women and young per- additional days may be provided. Pay for stat- sons on Saturday afternoon andSunday, except utory holidays is usually dependent on attend- under Special Exemption Orders issued by the ance on the day preceding and the day follow- Secretary of State for Employment. Thereis ing the holiday, unless the cause of absence no restriction on Sunday workfor men. was beyond the worker's control. Sunday is observed typically as a day of rest, Annual holidays(vacations)spread very and work on Sunday, at least when not part of rapidly after World War II for manual and a regularly scheduledworkweek,isusually lower paid white-collar workers. Entitlement compensated at twice the regular rate of pay.. to paid vacations is established through collective bargaining, the determinations of statu- Holiday Premium tory wage boards, or employer personnel policy. Premium pay for work on statutory holidays Most workers, after a qualifying period of is a matter for collective agreement or em- service, are entitled to a paid vacation of 2 ployer personnel policy. There is no uniform weeks, and in some cases to longer annual holi- policy, and the premium pay arrangements are days. Almost all collective bargaining agree- sometimes complicated. In engineering, for ex- ments specify the conditions, such as length of ample, where eight holidays are provided, dou- service and attendance at work, that must be bletime is paid for work on 2 specified days; fulfilled before a worker becomes entitled to a daytime rate and a half for day-shift workers

53 for hours worked on four holidays; "5 daytime night-shift workers on four holidays. These rate and two-thirds for hours worked by premiums do not apply to work on the two additional holidays. In rubber manufacturing, '"In the unuAual case of a dayworker working through midnight of one holiday into another holiday, the national agreement provides for fixed al- double the daytime rate is paid for the hours worked lowances, graduated by age, for work on six after midnight until day-shift working time. holidays.

Chapter XI. Wages and Supplemental Payments

Base Pay chinery exists for the national health services, teachers,the manual and nonmanual em- Basic (or minimum) rates of pay for manual ployees of local authorities, and for other seg- workers in private industry are determined ments of public employment."' largely through industrywide collective bar- Wage and salary determinationin Great gaining, or, in some situations, bargaining at Britain involves the use of a widespread and the company level. For industries or segments complex system of bargaining arrangements. of industries for which adequate voluntary ne- This system, as suggested in Chapter VIII, has gotiating machinery does not exist, minimum developed over many years; it represents, in rates of pay are fixed by Wages Councils, which part, an explicit expression of public policy to are statutory bodies continued or established the effect that employees, through representa- under the Wages Councils Act of 1959.m Over tive organizations, should have a voice in the 50 such councils, covering approximately 3.5 fixing of pay and other conditions of employ- million workers, are presently in existence, ment. This attitudeisperhaps seen most mainly in retaildistribution, catering, road clearly in the case of the wages councils. It has haulage, and the smaller manufacturing indus- been stated that "...the great strength of the tries. In agriculture, basic pay rates are deter- Wages Council system is that it does not sepa- mined by statutory boards under the Agricul- rate the statutory regulation of wages from tural Wages Act, 1948, and the Agricultural the system of voluntary collective bargain- Wages (Scotland) Act, 1949. ing." "8 In the nationalized industries, wages are de- However, for large numbers of employees, termined also through joint negotiating ma- notably white-collar workers in routine occu- chinery. The precise nature of this machinery pations in private industry and employees in differs somewhat from industry to industry, professional, administrative, and technical po- reflecting organizational differences among in- sitions, pay is determined by employer person- dustries and differences in collective bargain- nel policy. But the widespread incidence of ing arrangements that had existed beforena- collective bargaining and of statutory pay de- tionalization. termination, at least for basic rates of wages, Pay in the public services at the level of undoubtedly exertspowerful influence on the both the local authorities and the National pay policies of firms in the nonunion segment Government typically is determined through of the labor market. joint negotiating machinery also. This machin- Industrywide bargaining in Great Britain, ery for nonindustrial civil servants of the Na- particularly in the industrial sector, does not tional Government was described briefly in result in uniform pay scales among firms and Chapter V. Additionally, joint negotiatingma- establishments. As stressed in Chapter VIII,

"" This act consolidated the provisions of the Wages "' The Ministry of Labour'sIndustrial Relations Councils Acts of 1945 and 1948, and the Terms and Handbook(1961), chapters III, IV, V, and X, provides Conditions of Employment Act, 1959, insofar as it considerable detail, much of which is still of current related to wages councils. Councils may be abolished value, on negotiating machinery in private and public for industries which develop adequate voluntarynego- employment and on statutory wage regulation. tiating machinery and a number have been abolished. Bayliss, p. 150.

54 such bargaining involves, in e:,sence, the estab- premium rates for overtime, late-shift, or holi- lishment of minimum rates of pay, with re- day work.'2° gard somehow to the varying capacities-to-pay Certain aspects of the British wage struc- of firms within the industry concerned. In the ture do not have close counterparts in the engineering industry, for example, the national United States. First is the widespread use of agreement basically sets minimum time rates wage rate progressions for young workers in for two occupational groups: unskilled labor- other than apprenticeable trades. These rate ers and skilled fitters."9 This agreement then progressions reflect both collective bargaining must be applied at the level of the establish- practice and wage determination under statu- ment or firm to the rates actually being paid tory boards. There tend to be separate sched- for these benchmark jobs, to rates for other ules for boys and girls. Yuth rates commonly jobs in the occupational hierarchy, to incentive begin at age 15 at about 30 percent of adult rates, and to other elements of wage structure. rates and reach the adult wage at age 21 for As in the United States, the actual structure of men and 18 for women.'" time rates (and of earned rates under incentive A second difference, particularly for manual systems) can vary substantially among firms workers, is the regular and systematic use of within an industry, despite the existence of in- overtime in British industry. In a 1968 survey dustrywide bargaining. covering a broad spectrum of industry, 65 percent of the establishments reported that over- Some Elements of Wage Structure time was worked regularly; about 70 percent of the male manual workers were on overtime The structure of wages (whether for a firm, schedules. The proportion of such workers on an industry, or the economy as a whole) can be overtime tended to vary with age, reaching a viewed as a series of wage rates or pay levels maximum in the 30-39 age bracket, and with designed to compensate workers for the vary- the level of straight-time earnings, reaching a ing skills and abilities required in the produc- maximum (in 1968) in the range of 35-45 tive process. Wage rates usually although not pence an hour (US$0.84 to US$1.08).122 The in- invariably, are fixed with reference to jobs or cidence of overtime work is low for women tasks rather- than to individual employees as workers in manual jobs, and for both men and such. This practice is true in British industry, women in white-collar employments. except r ltably for the widespread practice, as A third factor relates to wage differentials explained below, of special rates for young em- by skill. On the whole, skill margins in British ployees. The notion of "structure" also has di- industry appear to be narrower than in the mensional aspects. The significant dimension in United States. For the 12 industries shown in the case of wages is the number of proportion table 18, the difference between the level of of workers at each rate in the scale. earnings for full-time adult male unskilled and In addition to wage rates by job (or by labor skilled workers ranged in 1970 from about 13 grade in evaluation systems), a variety of to 25 percent; the margin in 6 of these indus- other rates frequently are found in wage struc- tries was 17 percent or less. turesfor example, special rates for inexperi- enced, handicapped, or superannuated workers. "° Pay for time not worked (holidays, vacations, sickness) and employer contributions to insurance and Various types of guaranteed rates are often es- pension plans, while representing part of employee tablished in connection with incentive wage compensation, are nut reflected directly in the structure systems. In most firms, moreover, certain gen- of wages. eral wage policies or practices contribute to the "' See John W. Piercey, "Youth Wage Rates Schemes structure of wages. Such policies may include in Western Europe and Canada and Their Effect on Youth Employment," in U.S. Department of Labor, 1" Basic rates for a few other jobs (e.g., molders) at Bureau of Labor Statistics, Youth Employment and national or district level may also be specified in na- Minimum Wages, BLS Bulletin 1657 (Washington: tional agreements between the Engineering Employers' Government Printing Office, 1870). Federation and the Confederation of Shipbuilding and 1" National Board for Prices and Incomes, Report No. Engineering Unions. 161, pp. 18,25-26.

55 TABLE18.GREAT BRITAIN AVERAGE GROSS WEEKLY 72 percent of the women. At the upper end of EARNINGS FOR UNSKILLED MALE WORKERS' AS I PERCENT the distributions, 29.4 percent of the men or THE LEVEL FOR SKILLED MALE WORKERS,' SELECTED earned £30 (US$72) or more, compared with INDUSTRIES, APRIT.1970 less than 0.5 percent of the women. These Gross average weekly earnings for unskilled sharp differences between the weekly earnings Industry male workers as percentage of average for skilled of men and women working full time in blue- male workers collar jobs reflect a host of factors, including, Manufacturing Food, drink, and tobacco 86.9 most importantly, differences in the industrial Chemicals and allied industries 86.0 Vehicles 86.8 and occupational composition of employment. Mechanical engineering 71.8 Electrical engineering 77.8 In nonmanual or white-collar occupations, Textiles . 7'1.3 the average adult male had weekly earnings of Bricks, pottery. glass, cement 86.0 Timber and furniture 80.1 £35.8(US$85.92),aboutone-third Paper, ponting, and publishing 79.3 greater Construction 84.8 than the average for males in manual jobs. Gas. electricity. and water 83.2 Transport and communication (2) Less than 2 percent earned under £15 and al- I Men employed full-time aged 21 and over. most 55 percent had earnings of £30 or more. Not available. Stu mm: Computed from "New Earnings Survey, 1970," Part 2, Weekly earnings of at least £50 (US$120) EmPlotiment and Productivity Gazette. December 1970. table 40, pp. were received by 13.5 percent of the male 1131-1136. white-collar workers; the corresponding per- The Distribution of Earnings centage for blue-collar males was 1.5. As in the case of men, the average weekly earnings of The broadcast view of the structure of wages adult women in white-collar occupations ex- and salaries in Great Britain may be derived ceeded the average for women in blue-collar from a comprehensive sample survey of earn- jobs by about one-third. At the lower end of ings as of April 1970. Some summary results the distribution, 43.5 percent of the women in of this survey relating to gross weekly earn- white-collar employment, compared with 72 ings for full-time adult employees are shown in percent in blue-collar jobs, earned less than table 19. Distributions are shown separately £15; at the upper end, 7.8 percent earned £30 for men and women in manual and nonmanual or more. The proportion of women in blue-col- occupations. In the manual or blue-collar occu- lar occupations earning at least £30 was negli- pations, average weekly earnings for men were gible. £26.80(US$64,43)and for women £13.40 Data also are available on the distribution of (US$32.16). Only 3.7percent of the men youths and boys and of girls working full-time earned less than £15 (US$36), compared with by weekly earnings. These and other distributions, undifferentiated by type of work, are TABLE19.GREAT BRITAIN: PERCENT DISTRIBUTION OF shown in table 20. As would be expected, young ADULT FULL-TIME EMPLOYEES' BY GROSS WEEKLY EARN- INGS, SEX, AND OCCUPATIONAL. CATEGORY, APRIL1970 workers are concentrated heavily at the lower end of the distributions. Nearly two-thirds of Male Female the youths and boys, and 97.5 percent of the Non- Non- Gross oeekly Manual manual Manual manual girls, earned less than £15 weekly in April earnings ocjitt,,P,4s octznp:- OCCUPIS (in pounds) tions 1970.Their average weekly earnings were

Total 100.0 100.0 100.0 100.0 £14.10 (US$33.84) and £8.40 (US$20.16), re-

Average earnings 26 8 33.8 13.4 17.8 spectively..

Under 0.3 0.1 In summary, the effective range in weekly 1 and under 10 .3 .2 18.6 8.3 10 and under 11 3 1 1.7 13 1 31.1 earnings for adult men, employed full time in 11 and under 20 17.8 9 7 21.1 29.2 20 and under 27 25 6 16.1 49 11.0 blue-collar jobs in April 1970, was between £15 27 and under 30 23.5 17.4 1.1 0.2 30 and under 31 14.8 11.9 .2 3 (US$36) and £4C (US$96). The earnings of al- 33 and under 0 7.9 11 9 .1 2.2 40 and tinder 41 3 4 8.0 8 most90percentofthemaleblue-collar 17, and under 50 1.8 1.6 .6 10 and over 1 5 13.1 .7 workers fell within this range. Of the men in ' Excluding those who received no pay in pay period,received only holiday/sick pay, or whose pay was affected by absence white-collar jobs, 71 percent fell within the Non : Because of rounding, stuns of individual items may not same range, but with most of the others (27.1 equal totals. Souttet.Computed from "New Earnings Survey, 1970,.. Employ. percent) at higher levels in the distribution. awn, and Praductivitit Ga:rttr, November 1970. tablet) 3 and 4, pp. 977-.978, The weekly earnings of most women employed

56 TABLE 20.GREAT BRITAIN z PERCENT DISTRIBUTION OF Average Earnings by Industry and Occupation EMPLOYEES' BY GROSS WEEKLY EARNINGS, APRIL 1970

Employed Emp oyed In table 21, data on average hourly and full time part time weekly earnings and average hours worked as Gross weekly All Youths earnings em- Wo- and Wo- of October 1970 are presented separately for (in pounds) ployeesMen men boysGirlsMen men adult men and women working full time in Total 100.0 100.0 100.0100 0100.0100.0100.0 blue-collar jobs by broad manufacturing indus- Average earnings 22.8 30.0 16.3 14.1 8.4 11.1 6.8 try group and for selected nonmanufacturing Under 5 3.8 (2) (2) 0.8 3.3 19.6 31.3 industries.'25 1 and under 10 12.5 (2) 11.8 28.7 74.8 57.3 55.1 10 and under 15 14.6 2.8 41.1 34.0 19.4 7.5 10.8 15 and under 20 16.0 14.6 26.6 21.5 2.1 3.6 1.9 For all of the industries covered, the average 20 and under 25 1.5.8 22.3 10.5 8.8 (2) 2.3 (2) 25 and under 80 13.5 21.2 4.6 4.0 (2) 2.2 (2) weekly earnings of adult men working in full- 30 and under 35 9.1 15.2 2.4 1.3 (2) 1.5 (2) 35 and under 40 5.8 9,3 1.5 .6 (3) 1.2 (2) timeinblue-collar occupations were £28.05 40 and under 45 3.2 5.3 .6 (2) 1.4 (2) 45 and under 50 1.9 3.2 (2) (3) .9 (s) (US$67.20);in manufacturing, the average 50 and over 3.5 5.8 (2) (3) (3) 2.4 (2) was £28.90 (US$69.36). For adult women, av- Excluding those who received no pay 'n pay period, received only erage weekly earnings, at £14 (US$33.60) both holiday/sick pay, or whose pay was affected by absence. 2 Less than 0.5 percent. for all industries and for manufacturing sepa- Non::: Because of rounding, sums of individual items may not rately, was about one-half the male level. This equal totals. difference reflects in part a significant differ- SOuiut: Computed from "New Earnings Survey. 1970" EmPleit- meat and Productivity Gazette. November 1970. table 2, p. 976. ence in average hours worked per week. In the case of men, the average was 45.7 hours in all full time in blue-collar jobs(93.1 percent) industries and 44.9 in manufacturing, substan- were within the range of £5 (US$12) to £20 tially above standard or normal hours (typi- (US$48). The earnings of 72.6 percent of the cally 40 per week). On the other hand. compar- women inwhite-collar occupations alsofell atively little overtime was worked by women, within this range, but with almost all of the whose average hours were below 38 for all in- others at higher points in the distribution. The dustries combined and for manufacturing. In weekly earnings of more than four-fifths of the youths and 'toys employed full time, and of al- 1" For more extensive industry detail, see Department most all ox the girls, were below £20. of Employment Gazette,February 1971,

TABLE 21. (TREAT BRITAIN: AVERAGE WEEKLY AND HOURLY EARNINGS, AND AVERAGE HOURS WORKED, FILL -TIME BLUE-COLLAR WORKERS. MANUFACTURING AND SELECTED NONMANUFACTURING INDUSTRIES, OCTOBER 1970

Men (21 years and over) Women (18 years and over) A%erage Average Average Average industry' weekly Average hourly weekly Average hourly earnings hours earnings earnings hours earnings (pounds) worked (pounds) (pounds) worked (pounds) All industries covered 28.05 45 7 0.610 14.00 37 9 0.370 All manufacturing 28.90 44.9 .641 14.00 37.7 .370 Food, drink, and tobacco 28.00 46.8 .600 14.3; 38.1 .370 Coal and petroleum products 30.80 44.0 .700 15.30 39,2 .390 Chemicals and allied industries 29.02 44.9 .630 14.30 38.7 .370 Metal manufacture 30.00 41 1 661 13.63 37.4 .363 Mechanical engineering 28.45 44.9 .635 15.30 38.1 .105 Instrument engineering 26,75 44.1 .610 14.15 38.2 380 Electrical engineering 27.70 44.4 .625 14.53 37.7 .390 370 Shipbuilding and marine engineering 29.60 45.3 . .655 14.15 38.4 Vehicles 32.45 42.4 .763 17.05 37.9 .450 Metal goods, n.e c. 27.80 15.2 .615 13 35 37.4 360 Textiles 25 30 44.7 563 13.40 37.3 ,360 Leather, leather (lods. and fur 24.25 45,0 .140 12.10 37.3 321 Clothing and footwear 21.10 41.5 .585 13.1; 37.2 .355 Pricks, pottery. glass, cement, etc. 28.70 16,9 .610 13 90 34.4 .375 Timber, furniture. etc. 26 05 43.6 .310 14.45 37,4 .390 Paper, printing, and publishing 33.70 45.3 .745 15.30 38.9 .100 Other manufacturing 28.60 45,5 630 13.25 37,0 .330 Mining and quarrying (except coal) 28.85 31,8 .360 13.05 37.6 .343 Construction 26.85 17.1 .565 12.93 38,1 .340 Gas, electricity, and water 26,00 44.0 .390 14.45 36 1 .400 Transport and communication' 20.70 49 2 605 19 30 42.8 .450 23.90 44.0 .340 11,60 38.3 .300 Miscellaneous services 2 .300 Public administration 21,60 43.7 .495 15 10 39.7 1968 Standard Industrial Classification. 2 Except railm aye and London Transport. Laundries and dry cleaners, motor repairers and garages, and repair of bents and shoes SOURCE'. Department of F:mrloyment Gazette, Febtuary 1971. table 122. pp. 218-219,

57 terms of hourly earnings, men averaged 61 A simple measure of the relative dispersion of pence (US$1.46)inallindustries and 64.5 earnings is obtained by dividing the interquar- pence (US$1.55) in manufacturing. The corre- tile range by the median and multiplying by sponding hourly average for women was 37 100. These values are also shown in table 22. pence (US$0.89) in both industry groupings. Three professional engineering occupations Because of the difference in average hours are shownintable22. Average (median) worked, the difference in the level of earnings weekly earnings ranged from £36.8 (US$88.32) between men and women was less on an hourly for electrical engineers to £40.1 (US$96.24) for basis (about 40 percent) than on a weekly civil engineers. Draughtsmen had averageearn- basis (about 50 percent). These wide differ- ings of £31 (US$74.40). ences in earnings between men and women are Secondary schoolteachersandsolicitors markedly affected by differences in the indus- (lawyers) had virtually identicalaverage earn- trial and occupational composition of employ- ings, but the dispersion of earningswas twice ment. as great for the latter occupation. The disper- The level of hourly earnings for men within manufacturing industry groups ranged from TABLE 22.GREAT BRITAIN GROSS AVERAGE WEEKLY EARNINGS, ADULTS PAID FORF1'1,I,WEER, SELECTED 54 pence (US$1.30) in leather, leather goods, OCCUPATIONS, APRIL 1970 and fur to 76.5 pence (US$1.84) in vehicles. For women, the range was from 32.5 pence In pounds Relative (US$0.78) in leather, leather goods, and fur to Occupational group and sex Lower Upperdispersion' quartileMedian =quartile 40 pence (US$0.96) in paper, printing, and Professional and technical : publishing. The level of hourly earnings for MALE Engineer-civil, struc- men employed in blue-collar jobs in nonmanu- tural. or municipal 32.4 40.1 49.6 42.9 Engineer-electrical or facturing industries was lowest in public ad- electronic . 30.0 36.8 41.0 40.8 Engineer-mechanical 29.1 37.1 46.2 46.1 ministration (49.5 pence or US$1.19) and high- Draughtsman . . 26.8 31,0 35.9 29.4 Systems analyst, com- est in transport and communication (59 pence puter programmer 28.9 35.2 43.6 41.8 School teacher-sec- or US$1.42). Male construction workers in ondary schools 28.8 36.3 41.8 35.8 Accountant . 29.4 40.1 32.2 36.9 Britain had average hourly earnings (56.5 Solicitor (lawyer) . 24.7 36.3 57.5 89.9 FEMALE pence or US$1.36) that were lower than the Nursing matron, sister 24.2 26.7 29.7 20.6 Office clerical: averages for male workers in many other in- MAI E Clerk, senior 24.4 29.5 35.6 38 0 dustries shown in table 21, despite the fact that Clerk, intermediate 19.9 23.2 27.1 31.0 Clerk, junior 16.6 19.3 23.1 33.7 average hours worked in construction fell below FIN A I I. Clerk, senior 14.3 17.3 22.4 46.3 only mining and quarrying and transport and Clerk, intermediate 13.1 16.0 20.0 43.1 Clerk, junior . . 11.5 14.2 16.8 37.3 communication. For women in nonmanufactur- Secretary-shorthand ing industries, the level of hourly earnings Mist . 14.2 17.2 20.2 34.9 Copy/auto typist 12.0 14.2 16.7 33.1 ranged from 30 pence (US$0.72) in miscellan- Blue-collar : MALE eous service to 45 pence (US$1.08) in trans- Railway engine driver 24.1 27.4 33.8 nA Docker, stevedore 29.9 36.0 44.1 39.4 port and communication. Bricklayer 20.9 24.3 28.5 31.3 Carpenter and Joiner 21.1 24.7 29.7 34.8 Table 22 contains data on weekly earnings in Plumber, pipe fitter 22.3 23.9 30.3 30.9 Electrician, building, and selected occupations of adults paid for a full- wiring.. . 22.8 26.8 33.3 39.2 Fitter, production 24.9 29.0 34.0 81.4 time week in April 1970. The data were de- Fitter- -toolroom. tool and diemaker 27.0 31.4 36.8 31.2 rived from the comprehensive earnings survey, Assembler, skilled 23.4 27.9 34.4 39.4 Assembler, semiskilled 22.2 26.9 33.3 41.3 of which use was made in the preceding section Machine tool operator. skilled. . 26.2 30.2 35.5 30.8 of this chapter. Employers in the survey sam- Machine tool operator. semiskilled 22.0 26.0 30.0 30.8 ple were provided with a list of 189 occupa- Laborer, unskilled build inc or engineering 19 0 22.7 27.7 38.3 tions or occupational groups and were requested Coal miner, underground . 23.7 27.1 29.9 22.9 Compositor, typesetter 26.3 31.2 39.8 43.3 to identify workers falling within the job des- FF.M AI E Assembler, semiskilled 12.3 14.4 16 1 23.0 ignations and to provide brief descriptions of ..- their main duties. Guidance was provided for Men aged 21 and over : women aged 18 and over. The median defines the midpoint of the totaldistribution of classification by skill level. workers by earnings: the lower and upper quartiles show the range within which the middle 50 percent of the workers fall. The wage or salary measures used in table interquartile range divided by median times 100. 22 are the median and the interquartile Warr: "New Earnings Survey, 1970," Part 2, Employmentand ranges. Productivity Gazette, December 1970, table 30. pp. 1111 -1113.

58 sion of earnings for accountants, who averaged more than half the level for males in this job £40.1 (US$96.24), was also relatively wide. classification. Average earnings in a comparatively new oc- In agriculture, for the year ending March cupational complexsystems analysts and com- 31, 1970, the weekly earnings of men averaged puter programmerswere £35.2 (US$84.48), £17.55 ($42.10), including payment in kind. not much below the level for two of the profes- Weekly hours of work averaged 48.4. Youths sional engineer groups and for teachers and averaged £10.29 ($24.69) weekly ; their aver- solicitors. Nurses, the only woman's occupation age hours were 47.2. The average weekly earn- includedinthe professional and technical ings of women employed in agricultural work group, averaged £26.7 (US$64.08). was only slightly above the level for youths, Among office occupations, average weekly but their hours of work (43.3) were signifi- salaries varied significantly among men and cantly shorter.'" women in the three grades of clerks for which Limited data for 1968 are available on the data were compiled; the relative dispersion salaries of top executives in British industry.'" rates were somewhat greater for the women These data, for main company board members employees. The average salary of secretaries and for senior executives, are summarized in (/17.2 or US$41.28) was almost identical with table 23; the data for private nonfinancial com- that for female senior clerks. Routine typists panies are broken into three size groups. For averaged £14.2 (US$34.08). the largest companies in the private sector, Among the male blue-collar occupations, un- main boardmembersaveraged £18,760 skilled building or engineering laborers had (US$45,024) annually, and senior executives average weekly earnings of £22.7 (US$54.48). £9,790 (US$23,496). Top salaries in the na- Tool and diemakers averaged £31.4 (US$75.36), tionalized industries were substantially below and skilled machine tool operators only slightly those in the largest and intermediate-sized lower. Stevedores had the highest average earn- firms in the private sector, and, for main board ings (/36 or US$86.40) of any of the male members, even below those in the smallest-sized blue-collar occupations shown in table 22. Aver- private sector group. age earnings for the four building trades occupations shown were not markedly dissimilar I" "Agricultural Workers in Great Britain: Earnings and fell below earnings levels for skilled work- and Hours," Employment and Productivity Gazette, ers in production jobs. For most of the male October 1970, pp. 886-887. blue-collar jobs dispersion rates did not differ " The survey on which the salary data are based also developed information on bonuses; pension schemes; greatly. Women in semiskilled assembly work fringe benefits such as car and free or assisted housing; theonlyblue-collaroccupation shown for and vacation arrangements. (See reference at end of womenaveraged £14.4 (US$34.56), not much table 23.)

TABLE 23.ANNUAL PAY' OF TOP EXECUTIVES IN BRITISH INDUSTRY,1968

Iln pounds)

Sector of industry Nation- Private Type of executive alized. and salary measure Nation. excluding: Financial sliced BSritish Total Group A Group 13 Group C teel Main board members: Mean 10.540 8.860 18.760 15.650 12.380 13,310 13.170 Median .. 9,290 8,910 16,480 14,720 11.590 12.210 12.170 Upper quartile 12.220 9.940 24;130 18.380 15.090 16.150 15.870 Lower quartile 8,080 7,890 12.810 12,340 9.050 9.700 9.650 Senior executive:2 Mean 6,880 6,270 9.790 8,040 6,470 6,940 7.800 Median 6.520 6,330 9.090 7.910 6,240 6,650 7.320 Upper quartile 7,480 7.190 11,800 9.490 7.740 8.520 9,780 Lower quartile 3,550 5.470 7,41U 6.450 5,080 5.320 5,550

1 Pay includes srtary. director's fees. and bonuses. 2 Sample of execu ives in senior positions in the firms in the survey sample. SotincH: National Board for Prices and Incomes, Report No. 107. Nat:onalizedbutuetrier. Top Salaries in the Prn'ate Sector(London: H.M. Stationery Office. March 1969. Cmnd. 3970), p. 6.

59 Supplemental Payments British social insurance system, for which employers bear part of the cost, is described in In addition to direct money wages that re- chapter XIII. In addition, many workers are flect time rates of pay or earned rates 12 under covered by private plans for one or more bene- incentive pay systems, the compensation of the fits. For example, private pension plans in British worker consists also of various types of Britain, as in the United States, have grown supplementary payments or benefits. Many of rapidly during the postwar period. It was esti- these are discussed in other chapters of this mated that at the end of 1967 over 12 million study, and some notion of the relative impor- employees in the private and public industrial tance of various components of pay is given in sectors were members, in British terminology, the section of the present chapter entitled of occupational pension schemes. Contributions "Total Labor Compensation and Costs." into pension plan funds in 1967, including em- Briefly, supplementary payments are pro- ployee payments to contributory plans, were vided in part through legislation (e.g., various estimated at £1,265 million.127 A more recent forms of social insurance), and in part through estimate of private pension plan coverage collective bargaining, the decisions of statutory about 10 millionis lower but stillvery sub- wage boards, or by employer personnel action. stantial.'28 About 70 percent of all employees They may be grouped broadly unr'er three were covered by sick pay schemes as of April headings. The first consists of premiumpay 1970.'29 for work on other than "normal" or "standard" Although not strictly a supplement to wages hours, such as overtime, late shifts, or public arising out of employment (as is thecase in holidays, or for tasks that are especially heavy, theUnitedStateswithemployer-financed disagreeable, or dangerous. Premium payments, health insurance plans), comprehensiveme when earned, serve directly to increasemoney cal,hospital, and dentalcare for British wages. Their amount, asvnically in the case workers and theil. families is financed about of overtime, often is directly :elated to straight- 85 percent from general government time rates or earnings. Premiumpay is re- revenues.' " flected i' the data on the earnings of blue- and white-collar workers set forth in the preceding Withholdings and Deductions section. A second category embraces payments for Two principal deductions are made from time not worked, most importantly for public wages and salaries. The first is the flat-rate holidays and annual vacatio:-1. The incidence employee contribution to the National Insur- of these forms of paid leavewas described ance System, including the employee contribu- briefly in chapter X. One issue that has arisen tion to industrial injuries insurance and the in some cases is whether holiday and vacation National Health Service. This amounts to as of pay should be computed on the basis of actual September 1971 a flat-rate contribution of 88 earning, or on the basis of minimumor guar- pence (US$2.11) weekly for employed men anteed rates of pay specified in collective bar- (aged 18 to 70) contracted out of the graduated gaining agreements or statutory orders. Other forms of pay for time not worked. include sick Times (I ondon) , December 2. 1469 special renort leave pay and pay for time spent in approved on "Pensions." schemes of off-the-job training. Payment for It wis estimated ds of April 1970,, that 44.2 percent time not worked, as in thecase of premium of all employees in British industry were covered by occupational pension schemes. The computation was pay, appears as a direct item of payroll ex- made from separate estimates for males and females in pense. "New Earnings Survey; 1970," Part 4, Department of A third category of suppiementarypayments Employment Gazette, February 1971, table 110, p. 155. results from both public and private plans for Applying this percentage to the estimated number of the protection of workers against themajor employees in March 1970. yields an estimate of 10 million employees covered by pension plans. azards of ecor.omic life. The comprehensive '' Computed from ibid. The remaining 15 percent of Ndt.ionalHealth Straight-time earnings under incentive systems Service financing is from employee contributions and divided by hours worked. charges for certain services.

60 pension scheme. Such men pay an additional For the period 1960-71 table 24 shows in- graduated contribution ranging up to £1.47 dexes for manual workers of hourly and (US$3.53) weekly. Slightly higher flat-rate con- weekly wage rates and normal hours of work, tributions but lower graduated contributions which largely reflect the res:ilts of industry- are paid by employed men contracted out of the wide bargaining and statutory wage orders graduated pension scheme. Flat-rate contribu- under the Wages Councils Act and the Agricul- tions are not payable unless earnings exceed £5 tural Wages Acts. Indexes to 1970 are also weekly. Lower rates of contribution are payable shown of average hourly and weekly earnings by employed women and young persons. No and of average hours worked for manual graduated contributions are payable when earn- workers, and of average salaries for white-col- ings are less than £9 (US$21.60) weekly. lar employees. The coverage of these various Income tax also isdeducted from wages series is explained in the notes to table 24. under a pay as you earn system. Income tax li- The basic hourly wage rates of blue-collar ability varies with size and source of income workers increased by 100.4 percent between and family responsibilities. For the 1969-70 tax 1960 and 1971, or at an average annual rate of year, married couples who had two children 6.5 percent. The increase in basic weekly rates under 11 years of age paid no tax on earned was not as great (84.4 percent, for an average income of £700 (US$1,680) or less, and a tax annual rate of 5.7 percent) because of a decline of £380 (US$912) on an earned income of in normal weekly hours. The decline in hours £2,000 (US$4,800). Payroll deductions for pur- amounted to about 8 percent and occurred, for poses other than social insurance and income the most part, during the early years of the pe- tax are not widespread. Union dues are not riod. The decline in actual hours worked was subject to checkoff arrangements. considerably less pronounced than in normal hours, except during the recession year 1971, Pay t..hanges reflecting substantial overtime working. Data on average actual earnings for blue- Changes in pay arise broadly in two ways: collar workers and average salaries for white- (1) through general changes incorporated in collar workers were not available, at the time collective agreements and statutory wage or- of writing, for 1971. For the period 1960-70, ders, or made effective by employer personnel the earnings of blue-collar workers increased action; and (2) through changes that arise in more sharply than basic wages on both an the administration of wages at the plant or hourly and weekly basis. This increase reflects company level. factors, other than changes inbasic wage

TABLE24.UNITED KINGDOM: INDEXES OF BASIC WAGE RATES, HOURS OF WORK, EARNINGS, ANDSALARIES, 1960-71

11960-1001

All manual workers' Veal Basic w.eekly Basic hourly Normal Average Average Average A%eroge rates of rates of weekly hours weekly hourly salary %%ages: wages' hours, worked' earnings' earnings I earnings'

1960 100 0 100 0 100.0 100.0 100.0 100.0 100.0 1961 104.1 106.3 97.9 98.9 106.1 107.1 104.9 1962 108 0 111.2 97.0 98.0 109.8 112.0 110.7 1963 111.9 115.4 96.9 98.2 114.5 116.7 116.8 1964 117.1 121.3 05.5 99.1 124.4 125.4 123.3 1965 122.2 129.0 94.8 98.0 134.4 137.1 133.7 1966 128.0 137.7 93.0 95.9 142.2 148.1 139 5 1967 132.7 143.2 92.8 95,9 147.8 154.0 146.0 1968 141.6 152.9 92.6 96.3 160.0 165.9 155.1 1969 149.0 161.2 92.4 96.7, 172.7, 178.1 167.1 1970 163.8 177.6 92.1 91.9 199.2 209.; 188 6 1971 184.4 200 4 91.9 The indexes of bask rates of wages and of normal weekly hours Beginning October 1967. includes dockworkers and postmen. Fm relate to manual workers in al industries and services, but those for 1960-69, the Indexes are based on survey data collected kir April %tut averit,_:^ earnings and average hours worked relate toft broad but October of eack year: for 1970, the data relate only to October mole restrictedlistofindustries:manufacturing: mining and *Compiled annually in October. Covers mftnuf.ring mining and oust vying (eicept coal) ; construction :gas, electricity, andwater: quarrying: construction, gas. electricity. and .;British Rail ttaosport and communication (except railways and London Trans- London Transport (from 106;1) . British Road Serv.ceN (from 1966) . port) miscellaneous services: and public administration. British Transport Docks: British Waterways; air tmtiquo.t .insur- The indexes of basic wage rates and normal hours are based on ance and banking: education (teachers) National health service:, minimum entitlements(i.e.. basic rates of wages, standard rates, and National and Local Government minimum guaranteesor minimum earningslevels),which are genet ally the outcome of centrally determined arrangements, usually SOUR( F Departmentof m ployment e. February1971. national collective agreements or statutory wages regulation orders. table 129. p. 236. Indexes are converted to 1960 base

61 rates, that affect earnings at the establishment Travel and Transportation Expenses level. A recent study listed nA fewer than 15 such factors."' Probably the major factors in As in other countries, British employers com- the British situation during this period were pensate employees for travel and transporta- (1) higher rates of pay for particular groups tion expenses incurred in the performance of of workers negotiated at plant or company duty. Details are not available; but employer level ;(2) an upward drift in incentive earn- costs for subsidized transport of employees in ings; and (3) substantial overtime worked at 1968 averaged 0.9 percent of labor costs in the premium rates. These factors, and others of construction industry and 0.1 percent in manu- lesser importance, are separate from wage facturing industries, according to estimates changes for individual workers for merit re- published by the Department of Employment. views, promotions, and increments to young workers, which may not affect, depending on Total Compensation and Costs the nature of labor turnover, the general level of earnine. at all. The most recent survey of labor costs in The final column in table 24 shows an index Great Britain relates to 1968. It covered manu- of average salaries for white-collar workers. facturing and a number of nonmanufacturing Salaries increased by 88.6 percent between industry divisions. The data on employer ex- 1960 and 1970, more rapidly than basicwage penditures relate to both full- and part-time rates for blie-collar workers but less rapidly blue-collar and white-collar workers, including than earnings. administrative and technical staff. Table 25 provides some sense of themove- Summary data based on this survey are ment of real as distinguished frommoney shown in table 26. In manufacturing, average earnings for the period 1960-70. For blue-col- expenditures per employee in 1968 were £1,133 lar workers, average weekly earnings in terms (US$2,719),orapproximately 58pence of purchasing power advanced by 36.0 percent, (US$1.40) an hour. Almost 84 percent of total or at an average annual rate of 3.1 percent.132 labor expenditures were paid out in the form The average salaries of white-collar workers of direct wages and salaries, including pre- rose 28.7 percent in real terms, or at an aver- mium pay for overtime, late-shift work, and age annual rate of 2.6 percent. other purposes; the remaining expenditures were for legally required and discretionary TABLE 25.UNITED KINGDOM:, INDEXES OF REAL AVER- "fringe benefits." 133 Of the fringe benefit com- ALI" WEEKLY EARNINGS FOR MANUAL WORKERS, REAL AV- ponents of total cost, the major items were pay ERAGE SALARIES,, AND RETAIL PRICES, 1960-70 for public holidays, vacations, sick leave, and 11960-1001 attendance at training classes (7.4 percent) ; Real average the employer share of national insurance con- weekly earnings. Year Retail micea Hue-collar Real average tributions (4.4 percent) ; and expenditures for corkers salaries privatesocialwelfare (e.g., pension)plans 1960 100.0 100.0 100.0 1961 103 3 102.7 101.5 (3.2 percent). 1962 106.1 103.5 104.3 1963 108.2 105.9 108.0 The relative importance of the components 1964 111.7 111.4 1965 110.4 117.1 114.9 114.3 of labor cost varied considerably among Indus- 1966 121.7, 116.9 1967 114.7 124.7 118.6 117.2 1968 130.6 122.6 "' Disregardingthe selective employment tax, which 1969 118.9 137.6 125.4 121.4 was negative in the case of manufacturing and mining, 1970 146.5 136.0 128.8 but neutral or positive for the other industry groups Sootier,: The indees of real earnings and salarieswere obtained shown. The SET was imposed by the 1966 Finance Act by dividing the appropriate *ndees in table 24 by the Index of retailprices(allItems)from the Department of Employment to encourage economy in the use of labor in the seivice Gazette. January 1972. To derive an index of retailprices for the industries. Employers in certain industries, including whole period 1960-70. indexes with two differentbases (January 1956 and January 1962) mere spliced. manufacturing, mining and agriculture, have the tax refunded; employers in manufacturing in development "' DerekRobinson, Wage Drift, Fringe Benefits, and areas receive a refund of the tax plus an additional Manpower Distribution(Paris:: Organization for Eco- amount. In his budget message of Mar. 30, 1971, the nomic Cooperation and Development, 1968),pp. 32-39. Chancellor of the Exchequer announced reduction of '"The advance inreal hourly earnings was 43.1 SET by half (as of July 5, 1971) and its eventual per-,nt. abolition.

62 TABLE 26. GREAT BRITAIN: PERCENTAGE DISTRIBUTION OF AVERAGE LABOR COSTS PER EMPLOYEE, 1968

Percentage of total expenditures in Nonmanufacturing industries Nonin Expenditure categories Mining Gas. Trans- Insur- dustrial Manu- and Con- elec. portation ance ci% ii facturing struc- tricity,, and and service and Inarrig tion and communi- banking authori- water cation 2 ties

Total 100.0 100.0 100.0 100.0 I 100.0 100.0 100.0 Wages and salaries, including premium pay 83.9 74.2 82.5 76.6 77.7 66.5 76.5 Pay for holidays, sickness, and attendance at training classes 7.4 8.6 5.2 10.5 10.0 9.2 11.1 Statutory national insurance 4.0 contributions .. - - - 4.4 3.8 4.2 3.8 3.8 3.2 Selective employmenttax (net)* -1.5 -.2 43 3.8 .1 Provision for redundancy (net)' .4 1.0 .2 .1 .6 .1 .1 Private social welfare payments 3.2 5.7 1.4 63 5.9 12.4 6.9 .9 .7 .4 .6 Training' - .8 .2 .3 Payments in kind. subsidized services' and other labor costs 1.5 1 6.7 1.9 1.3 1.4 4.4 1.6 Average expenditure per employee: Pound per year 1,132.9 1,256.9 1,359.6 1,296.0 I 1,304.6 1,424.5 997.0 Pound per hour . 0.585 0.740 0.610 0.665 0.660 0.840 0.640 Including ancillary activities of N,.tional Coal Board. 2 Only part of Standard Industrial Classification Order XIX includedi.e.. railways road passenger transport. port and inland water transport: air transport (nationalized part only) : and postal services sad telecommunications. Includes (1) nonindustrial civil service (the General Post Office is excluded from this heading but included under Transport andCom- munication, except for Post Office Savings Bank, which is included under Insurance Banking) :(2) local authority employment, except teachers. police. and fire service. Local authority employees norking in construction, transport, and water supplydepartments are excluded from this group. but included under appropriate industries. * Net cost after allowing for refunds. premiums, and regional payments. Statutory contributions made under Redundancy Payments Act /gut statutory and voluntary payments to "redundant"employees Ira* re- batev received under Redundancy Payments Act. Includes levies paid to and grants received from industrial training boards. The %ages and salaries of persons administeringthese services and of trainees attending vocational training classes are included under "Pay for holidays, sickness, and attendance at trainingclasses" in the table above. 'Includes concessionary coal. NOTE: Because of rounding, sums of individual items may not equal totals. SOURCE: Adapted from "Labour Costa in Great Britain. 1968", Employmentand ProductivityGazette, August 1970, table 4, pp. 660-661. See also the article on "Analysis of MainCategoriesof Labour Costs" in the October 1970 issue of the same journal. try groups. In mining and quarrying, for ex- from general government revenues); and the ample, where the average expenditure per em- relevant data relate to different years. Nev- ployee amounted to £1,257 (US$3,016), pay- ertheless, the correspondence in the relative ments in kind and miscellaneous costs repre- (not absolute) importance of major items of sented 6.7 percent of the total, compared with expenditure is fairly close for some broad in- less than 2 percent in all other industries ex- dustry groups, but considerably less close for cept insurance and banking. This difference others. Two examples will suffice. largely reflects the cost of coal made available In U.S. manufacturing in 1966, straight-time to mining employees. The relative importance and premium pay accounted for 82 percent of of expenditures for private welfare plans was total compensation; the corresponding figure far greater in insurance and banking than in for Great Britain was about 84 percent in 1968. any of the other industries for which data are Paid leave in manufacturing in the United shown. On the other hand, relative expendi- States represented 6.3 percent of compensa- tures on holiday and sick pay were markedly tion; in Great Britain, 7.4 percent. The figures lower in construction than in the other indus- for legally required insurance programs were tries. These variations reflect differences in 4.9 percent in the United States and 4.4 per- compensation practices and affect, of course, cent in Great Britain. For private welfare the proportions of total costs represented by plans, including "redundancy" payments, the direct wages or salaries. percentages were 5.9 and 3.6 for the United A precise comparison between the relative importance of the components of total labor States and Great Britain, respectively."4 compensation in Great Britain and the United '" Data for the United States are from U.S. Depart- States is not possible. The employer expendi- ment of Labor, Bureau of Labor Statistics,Employee ture categories do not correspond exactly ; Compensation in the Private Nonfarm Economy, 1966, practices differ in the two countries (e.g., in BLSBulletin 1627 (Washington: Government Printing Britain health insurance is financed largely Office, 1969).

63 In banking, on the other hand, straight-time Differences in the absolute levels of labor and premium pay represented 77.4 percent of compensation between countries cannot be used total compensation in the United States in directly to measure differences in either living 1967; the corresponding 1968 figure for a standards or labor costs per unit of output for somewhat broader industry category (insur- equivalent goods or services. For these pur- ance and banking) in Great Britain was only poses, data are needed on international differ- 66.5 percent. The difference reflects the fact ences in living costs and labor productivity. that substantially higher proportions of total compensation in Great Britain were accounted Pay Period Frequency for by paid leave, private welfare plans, and subsidized services.'" Blue-collar workers, and white-collar employees in routine positions, typically are paid "' Data for the United States are from U.S. Depart- ment of Labor, Bureau of Labor Statistics,Employee weekly ; higher level professional and adminis- Compensation and Payroll Hours: Banks, 1967(BLS trative workers usually are paid fortnightly Report 362. 1969). (every 2 weeks) or monthly.

Chapter XII. Industrial Health, Safety, and Workmen's Compensation Health and Sanitation The Factories Act covers not only manufacturing establishments but also docks, ware- Standards of industrial health, sanitation, houses, electrical stations and substations, ship and safety are set forth in various legislative repair yards, building construction and civil acts and in regulations and orders issued under engineering work shops, and certain other types the authority of these acts.'" The principal of premises. In 1969, 203,472 factories, 1,656 acts are the Factories Act, 1961, and the docks, wharves, and quays, 3,359 warehouses, Offices, Shops, and Railway Premises Act, 1963, and an unspecified number of construction sites both of which consolidated or replaced earlier were stated to be subject to the act.138 About legislation. The Mines and Quarries Act, 1954, 700,000 premises are subject to the Offices, established the basic modern 'principlesof Shops and Railway Premises Act. health, safety, and welfare for these indus- With specific 1eference to health and sanita- tries, and left details to be dealt with in statutory Igulations. Two statutes relate to agri- tion, the Factories Act contains provisions re- cultural health and safety :the Agriculture lating to the cleanliness of factories; over- (Poisonous Substances) Act, 1953, and the Ag- crowding; temperature; ventilation; lighting; riculture (Safety, Health and Welfare Provi- floor drainage; sanitary accommodations; eat- sions) Act, 1956. Specialized legislation relates ing and drinking in workrooms where poison- to rail, road, and air transport, and to mer- ous substances are so used as to give rise to dust or fumes; work in underground rooms; chant ;hipping."' lifting of excessive weights; the employment Authoritative manuals on industrial health and of women or young persons in lead processes or safety., including laws, regulations, and leading court in cleaning workrooms where these processes ci.(isions.are Redgrare's Factories Act(London: But- terworth and Co.. 19661 ; andRedgrave's Offices and are carried on; and the reporting of a broad Shops(London:. Butterworth and Co., 1965). The latter range of cases involving industrial poisoning manual also covers agriculture and railway transporta- or disease. Similarly, the Offices, Shops and tion. Railway Premises Act deals with the same con- " A Committee of Inquiry on Safety and Health at Work, under the chairmanship of Lord Robens, was ditions, where appropriate, and contains addi- establishedby the Government in 1970 to make a com- tional provisions, such asseating arrange- prehensive review of existing health and safety legislation and of the nature and extent of voluntary action. 1" H.M. Chief Inspector of Factories,Annual Report, The report of the committee is not expected for some 1969 (London: H.M. Stationery Office,1970, Cmnd. time. 4461).

64 ments, that are of particular relevance in shops ments reflect Britain's long experience as a and offices. major industrial nation, and are enforced by No young person under the age of 18 may re- various inspectorates. main in employment in a factory, or on a dock Briefly, with respect to safety, the Factories or building operation, after a period of 14 days Act contains detailed provisions dealing with : unless he or she has been medically examined the fencing of every part of transmission ma- by an appointed factory doctor and given a chinery and every dangerous part of other ma- certificate of fitness for that employment. Such chinery, and all parts of electric generators, certificate must be renewed every 12 months, motors, rotary converters and flywheels di- or earlier if the doctor so directs. Additionally, rectly connected to them, and with the fencing boys between the ages of 16 and 18 employed of fixed vessels, pits, etc., containing corrosive in certain industries or processes in shift sys- or poisonous liquids; devices for the prompt tems involving nightwork are required to un- cutting off of power from transmission ma- dergo further examination before the expira- chinery, the cleaning of machineii; hoists or tion of the first 3 months of such employment lifts; chains, ropes, and lifting tackle used for and every 6 months thereafter. People em- raising or lowering goods or persons; the con- ployed in certain hazardous occupations, re- struction and use of cranes and other lifting gardless of age, also are required to undergo machines; the construction and maintenance of periodic medical examination by an appointed floors,steps,stairs,ladders,passages, and factory doctor. In addition, such doctors, of gangways; safe means of access to place of whom there are about 2,300, are required to in- work; protection of eyes; the construction and vestigate cases of notifiable industrial diseases maintenance of steam boilers and receivers, and gassing accidents. and air receivers; and fire hazards. Special The Factory Inspectorate, discussed in a fol- precautions are laid down for work in confined lowing section, operates an industrial hygiene spaces where men are liable to be overcome by service to carry out tests of the factory envi- dangerous fumes ; against explosions for certain ronment and workers and to advise employers processes; and for welding or soldering of con- of any remedial or precautionary measures tainers which hold or have held any explosive that may be necessary. The Inspectorate has of flammable substance. its own laboratories and technical staff, includ- The Offices, Shops and Railway Premises ingmedical, chemical,andengineering Act sets standards for floors, passages, and branches. In addition, industrial hygiene ser- stairs; the fencing of dangerous parts of ma- vices are provided on a fee basis by a number chinery; precautions against fire; and provi- of organizations(e.g., the Occupational Hy- sions with respect to other hazards likely to be giene Unit t+ the University of Manchester), encountered in shops and offices. Specialized and many large firms provide these services legislation for certain industries (e.g., mining, from their own resources. agriculture) covers safety requirements in these The Government encourages voluntary prov- employments. ision by erpro.oyers of industrial health ser- Accident prevention is stressed widely as a vices, and many large and medium-sized firms supplement to statutory regulations. The Fac- have appointed physicians or industrial nurses tory Inspectorate, for example, issues numer- for the supervision of the health of their em- ous technical brochures stressingpreventive ployees. It is estimated that about 5,000 facto- measures (e.g., on industriallead poisoning, ries have the services of either a full- or part- methyl bromide, dust control, lifting and carry- time physician. In a few industrial areas, num- ing, and the use of abrasive wheels). It main- bers of small firms have combined to operate Cen- industrial medical services. t tins an Industrial Health and Training ter in London with a changing displayof meth- Safety Conditions and Required Precautions ods, arrangements, and appliances for ensuring the occupational safety and healthofin- Lef_islation relating to safe'at work is industrial workers. It encourages theappoint- corporated in the acts listed i., the first para- ment of plant safety officers and theformation graph of the preceding section. Safety require- of works safety committees. Training coursesin

65 safety are organized by the Government and by spectorate has a long history ;it enjoys also a private organizations. Many employers' asso- notable tradition. Its reports have contributed ciations are concerned with the promotion of greatly to knowledge of the labor conditions safety at work and provide information and that attended the growth of industrialism in advisory services to their members. A top-level England during the 19th century. Perhaps its Industrial Safety Advisory Council, chaired by most unexpected tribute was from Karl Marx, the Secretary of State for Employment, con- who, in the preface to the first edition of Capi- sists of representatives of the Department of tal (1867), lamented the absence in other Eu- Employment, Trades Union Congress, Confed- ropean countries of ". .,. men ascompetent, as eration of British Industry, and the national- free from partisanship and respect of persons ized industries. as are the English factory inspectors.. ." 130 Despite carefully devised safety standards, The Factory Inspectorate is responsible not strong inspection services, and extensive educa- only for inspections under the Factories Act tional efforts, accidents at work will occur. but also for inspectional activity under the Table 27 shows the number of notified acci- Offices, Shops and Railway Premises Act. Much dents in three industrial sectors covered by the of the latter, however, has been delegated to Factories Act for the years 1966-70. The total the local authorities under the general super- number of accidents rose between 1966 and vision of the Inspectorate, which directly in- 1969; the number declined in 1970 but remained spects offices in manufacturing 1.nd in local and about 3 percent above the 1966 level. Taking national government. In 1970, the factory in- the period as a whole, the increase in accidents spectorate had a staff of about 600 inspectors. in 1970 compared with the number in 1966 oc- The agency operates through a district organ- curred entirely in manufacturing; in construc- ization, the districts being grouped into 11 tion and in docks and inland warehouses, the divisions. It already has been noted that the In- number of accidents declined significantly. The spectorate has a number of technical branches total number of fatalities in the three sectors which provide expert support to the underlying combined was 701 in 1966 and 569 in 1970. inspectional act:vity. Inspectors are selected carefully, undergo extensive training, and ex- TABLE 27.GREAT BRITAIN: ACCIDENTS REPORTED UNDER ercise substantial responsibility, including the THE FACTORIES ACT, 1966-70 authority, where necessary, to institute legal proceedings. Industrial sector 1966 1067 1948 1969 1970 Total: A number of smaller safety inspectorates Number 296.610 304.016 312.430 322,390 304.794 exist under different governmental agencies, Index 100.0 102.5 105.3 108.7 102.8 Factory processes: including the Mines and Quarries Inspectorate Number 241.051 247.058 254.454 266.857 256.007 Index 100.0 102.5 105.6 110.7 106.2 (Ministry of Power) ;Railway Employment Construction . Inspectorate (Ministry of Transport) ; and the Number 46.607 16.475 46.569 44.170 39.922 Index 100 0 99.7 990 95.6 857 Agricultural Inspectorate. The Board of Trade Docks and inland is responsible for administering the Merchant %, *rehouses: Number 9.952 10.483 11.407 10.963 8.865 Shipping Acts and the provisions regulating Index 100.0 105.3 114.6 110.2 89.0 safety in air transport. SOVRCE. H.M. Chief Inspector of Factories. Annual Report. MO ( H.M. Stationery Office. 1970. Cmnd. 4461) for 1966 -69: for 1970. Department of Employment Ga.rette, June. September. and Decem- ber. 1970. and February 1971. Accident and Occupational Disease Compensation Safety Inspectorates The basic legislation relating to compensa- Responsibility for safety inspection isdi- tion for industrial accidents and prescribed oc- vided among a number of agencies. The oldest cupational diseases is the National Insurance and largest is H.M. Factory Inspectorate. It (Industrial Injuries) Act, 1965, which consoli- dates from the Factories Regulation Act of dated a similar act of 1946 and subsequent 1833, which covered only textilemills, but amending legislation. The Chancellor's budget which provided for the appointment by the message of March 30, 1971, and a subsequent Crown of four Inspectors of Factories who were given substantial powers. Thus, the In- "'Capital (Kerr edition), I, p. 15.

06 White Paper,"" proposed higher benefits for are made. Increases of disablementbenefit are workers experiencing accidents at work (and payable in certain circumstances to those with in social security benefits generally) and some severe disablement or particulardifficulties. changes in contributions. These changes be- Examples are unemployability supplement at a came effective September 20, 1971, and theil- weekly rate of £6; constant attendance allow- lustrative benefit and contribution rates given ance up to £4 weekly (higher inexceptionally in this and the following chapter reflect these severe cases) ; a special hardship allowance up changes. to £4 a week to a person who is unfit to return Standard weekly contributions for work- to his regular job or work of an equivalent men's compensation must be paid by and for standard; and a hospital treatment allowance all employed persons. An adult male employee during treatment as an in-patient for the in- now contributes 5 pence (US$0.12) weeklyand jury or disease. his employer 6 pence (US$0.1.44). Lower rates Allowances for dependents are payable with apply to women and young persons. The aggre- unemployability supplement and hospital treat- gate insurance contributions are supplemented ment allowance. Lower bash: rates of disable- from general revenues. ment benefit (with increases in some circum- Injury benefit is payable during a period of stances) are payable to boys and girls under 18 not more than 26 weeks from the date of an in- without dependents. The industrial disablement dustrial accident or the development of a pre- pensioner who satisfies the national insurance scribed disease while a person is incapacitated contribution conditions can normally receive for work. The basic rate (from September 20, also unemployment benefit, sickness benefit, or 1971) is £8.75 (US$21) a week, and lower retirement pension in full, but not if he is re- rates for boys and girls under 18 without de- ceiving an unemployability supplement. pendents. Additions to the basic benefit are If the industrial injury results in death, payable for dependentsM.70 for a dependent provision is made for an initial widow's allow- wife, £1.85 for the first or only child, 95 pence ance for 26 weeks (and additional allowances for the second child, and 85 pence for each sub- for dependent children), followed by a pension, sequent child. Thus, the total weekly benefit the amount varying accordingtocircum- for a family of four (man, dependent wife, and stances. If a widow remarries, her pension two dependent children) is £15.25 (US$36.60). ceases, but she receives a remarriage gratuity Afterentitlementtoinjurybenefithas equal to 1 year's pension. Allowances for the ceased, an industrial disablement pension (or care of dependent children can be paid to in some cases, a lump sum) is payable if loss of adults other than the widow. physical or mental capacity occurs.'4' Disable- An alternative to compensation for industrial injury under the national insurance sys- ment benefitconsists normally of a basic amount to which may be added one or more tem is personal legal action. The injured person may seek legal redress by claiming damages in supplementary payments according to individual circumstances. The basic pension is based the courts. Claims may be based either on alleged employer negligence or the breach of a on a medical assessment of the worker's loss of statutory duty to protect unemployed persons. faculty as a result of the industrial injury. An To guard against damages arising from such assessment of 100 percent carries a monthly suits, employers typically have insured against pensionof£10(US$24).Proportionately smaller pensions are paid for assessments of theliability, and the Employers' Liability (Compulsory Insuranc.0 Act, 1969, made such less than 100 percent; for assessments of less than 20 percent, lump-sum payments usually insurance, with certaii, exceptions, mandatory. Another measure in 1969, the Employers' Li- 1" Department of Health and Social Security. The ability (Defective Equipment) Act, extended 1.'t71 Increases and Other Changes in Social Security employer liability for injury suffered by an Benefits tH.M. Stationery Office, April 1971. Cmnd. employee from defective equipment to situa- 49521. tions in which the defect could be attributable I" The basic disablement pension award is not affected by earning capacity and may he paid to a person who wholly or in part to the fault of a third remains at work or who has returned to work. party.

67 Chapter XIII. Social Insurance, Family Allowances, and the National Health Service Social Insurance vent recurrence of the large-scale unemployment and the desperate insecurities of the in- On June 10, 1941, an announcement was terwar years. The Beveridge proposals them- made in the House of Commons of the appoint- selves were couched in realistic rather than ment of an Interdepartmental Committee on utopian terms. Thus, the relation between in- Social Insurance and Allied Services under the come redistribution and the elimination of chairmanship of Lord (then Sir William) Bev- want was not viewed primarily in terms of fac- eridge. The members of the Committee, other tor shares (wages and salaries, profits, inter- than its chairman, were civil servants, who est, and rent). Indeed, the report emphasized acted as advisers and assessors on technical that "...better distribution of purchasing and administrative matters within their partic- power is required among wage earners them- ular competence. The Committee's terms of selves, as between times of earning and not reference were: "To undertake, with special earning, and between times of heavy family re- reference to the interrelation of the schemes, a sponsibilities and of light or no family respon- survey of the existing national schemes of so- sibilities. Both social insurance and children's ciai insurance and allied services, including allowances are primarily methods of redistri- workmen's compensation, and to make recom- buting wealth...Properly designed, con- mendations." The report of the Committee, trolled and financed, [social insurance] need made in the name of its chairman, was submit- have no depressing effect on incentive." "' ted on November 20, 1942.142 What Beveridge proposed was, in effect, a The aim of the Beveridge Report was to pro- unified system of social insurance with univer- vide a plan for the abolition of want. To this sal coverage, and, in addition, a plan of na- end, the report proposed "...as its main tional assistance for those whose income needs, method compulsory social insurance, with na- for one reason or another, could not be met tional assistance and voluntary insurance as through the social insurance system. This sec- subsidiary methods. It assumes allowances for tion deals only with social insurance. Subse- dependent children, as part of its background. quent sections of this chapter consider national The plan assumes also establishment of com- assistance (now termed supplementary bene- prehensive health and rehabilitation services fits),family allowances, and theNational and maintenance of employment, that is to say Health Service. Social provision for "redun- avoidance of mass unemployment, as necessary dancy" payments (separation pay) was de- conditions of success in social insurance." 143 scribed in chapter IX, and compensation for Unlike the work of most governmental com- industrial injuries in chapter XII. Taken to- missions, the Beveridge Report had profound gether, these various programs provide at least minimum protection against loss of income influence on the course of social development. trom the major hazards of modern economic It was issued, as it turned out, at the proper life. conjuncture of events. The great depression of the 1930's had produced, through Keynes and The present unified national insurance sys- others, a revolution in ideas on the manage- tem came into operation on July 5, 1948. The ment of the economy and of the role of govern- National Insurance Act, 1965, which consoli- ment in the economic process. World War II dated the initial and subsequent amending leg- produced broad consensus on the need to pre- islation, forms the legal basis for the present program. " Sir William Beveridge, Social Insurance and Allied The structure of the program and conditions St tykes 111.M. Stationery Office, 1942, Cmnd. 6404. An for eligibility have not altered greatly since American edition of the report was published by the the unified system began. Of course, numerous Macmillan Company, New York, 1942). "' Beveridge, Social Insurance, p. 8. 1" Beveridge, p. 167.

68 changes have been made in benefit rates, allow- TABLE28.ExssiFLEs OF WEEKLYNATIONAL INSURANCE ances, and grants to compensate for increases CONTRIBUTIONS' EFFECTIVE SEPTEMBER20, 1971 in the cost of living and to improve the real In pounds value of the benefits provided. The flat-rate Emp oyed terson nployer rategot Y benefit system was modified inApril 1961, FlatGrad- Flat Grad- when graduated old-age pension arrangements TotalrateuatedTotal I ate uated Employed man not con- were inaugurated, and the same principle was tracted out of graduated extended in October 1966, to provide earnings- part of pension scheme: Earnings i10 0.94 0.88 0.06 0.947 0 887 0.0h related supplements to flat-rate unemployment 20 1.42 0.88 0.54 1 427 0.887 0.14 30 1.83 0.88 0.97 1.857 0.887 0.97 and sickness benefits and to widow's allow- 41 2.35 0.88 1.47 2.337 0.887 1.47 Contracted out: ances. `,"0 Earnings £20 1.15 1.00 0.11 1.137 1.007 0.15 42 2.08 1.00 1.08 2 087 1.007 1.08 Employed %%omen 3 not National Insurance System contracted out: Earnings 110 0.81 0.73 0.06 0.832 0.771 0.04 20 1.29 0.73 0.54 1.311 0.771 0.54 30 1.72 0.75 0.97 1.741 0.771 0.07 Coverage and Financing. Coverage under the 42 2.22 0.75 1.47 2.241 0.771 1.47 Contracted out : national insurance system is universal. Every Earnings f20 0.98 0.83 0.13 1.001 0M51 0.13 person of working age-i.e., between school- 42 1.91 0.83 1.08 1.931 e.851 1.08 Including workmen's compensation and NationalServicecon- leaving age (now 15) and retirement at or tributions. 2 Excluding Redundancy Fund contribution and Selective Employ- after the minimum pension age (65 for men, 60 ment tax. each of which is payable only by the employer and neither of which is properly a national insurance contribution. for women)-is legally bound, regardless of 3 Including married women not "opted out." income, to take part in the program. Sotxta:: Department of Health and Social Security.The 1971 In- creases and Other Chmngu in Social Security Benefits(London: H.R. The insurable populationisdivided into Stationery Office. April 1971. Cmnd. 4652). appendix V. p. IR. three classes: Table 28 shows examples of rates of social Class 1.Employed persons. Most people who work for wages or salaries under a contract of insurance contributions separately for employed service or paid apprenticeship. men and women at various earnings levelsef- Class 2.Self-employed persons. Mainly those in fective September 20, 1971. Flat-rate contribu- business on their own account and others who tion is lower for women than for men. It is are working for gain but not under a contract of also lower for both men and women whose na- service. tional insurance card is marked "Special" - Class :I.Nonemployed persons. that is, employed persons over 65 (60 for People in each of these classes pay a weekly women) who are treated as retired, and for flat-rate contribution to the insurance system. certain married women and widows. Graduated The rate differs for each class, and within each contributions are payable on that part of class for men, women, boys, and girls. The weekly pay which lies between £10 and £42, total amount of the weekly flat-rate contribu- the amount of the contribution depending on tion includes, in addition to a contribution to whether the employee has been "contracted the national insurance system, a contribution out" of the graduated part of the pension to the National Health Service. For those in scheme."F Married women, whether employed class 1, it also includes a contribution to work- or not. may "opt out"; that is, they may choose men's compensation. For employed persons either to pay flat-rate contributions themselves (class 1), employers as well as employees con- or rely on their husband's insurance which tribute. The employer's part of the class 1 con- covers them for maternity grant, retirement tribution includes, in the case of adults, a con- pension (at a lower standard rate), widow's tribution to the "redundancy" payments pro- benefit, and death grant. An employed married gram (see chapter IX), which is not properly part of the social insurance system. This item Act of 1966 to encourage economy in the use of labor in the service industries, and is scheduled for abolition by is omitted from the contribution rates shown the present government. The tax is collected through the in table 28, together with the selective employ- national insurance system as a matter of convenience. ment tax paid by employers." IN An employer can contract employee out if he satisfies the Registrar of Nonparticipating Employments '' As explained in chapter XI, footnote133, the that the employees are covered by an adequate private selective employment tax was imposed by the Finance pension scheme.

69 woman must pay industrial contributions for In addition, employed persons are eligible for workmen's compensation and graduated contri- compensation in case of industrial injury. The butions. main types of benefits are discussed briefly in As table 28 indicates, the weekly flat-rate the following sections. contribution by an adult male employee who has not contracted out of the graduated pen- Unemployment benefit. Unemployment benefit sion scheme is 88 pence (US$2.11). The em- is administered through the Employment Ex- ployer's contributionis slightly higher. The change System. Effective September 20, 1971, graduated contribution of both employee and the standard weekly flat-rate unemployment employer is equal at each earnings level. An benefit for a single person over 18 years of age employee not contracted out and earning £30 was £6, plus £3.70 for an adult dependent, weekly pays a total social insurance contribu- £1.85 for the first dependent child, 95 pence for tion of £1.85 (US$4.44). His employer would the second child, and 85 pence for the third pay only a fraction of a penny more. The flat- and each additional child. Thus, the weekly rate contribution for men who have contracted flat-rate benefit for a family of four (husband, out is somewhat higher, but the graduated con- dependent wife, and two dependent children) tribution is lower. Table 28 also shows contri- was £12.50 (US$30). bution rates for employed adult women.17 For an insured married woman over 18 Payments into the national insurance fund years of age, the weekly flat-rate benefit was are supplemented by grants from the central £4.20 (US$10.08). However, she may be paid government. In 1969, total receipts, including at the standard rate under certain circum- government grants of £368 million (US$883 stances (e.g., if she is maintaining an invalid million),were£2.442million (US$5,860 husband). million). "' Principal expenditures were for re- The weekly unemployment benefitfor a tirement pensions, £1,609 million (US$3,861 young person under 18 was £3.30 (US$7.92). If million) ; sickness benefit,£369 million he is entitled to an increase for an adult depen- (US$886 million) ; widow's benefits and guard- dent or for a child, he is paid the adult rate. ians' allowances, £161 million (US$386 mil- Two contribution conditions must be satis- lion) ; and unemployment benefit, £131 million fied for the receipt of unemployment benefit. (US$314 million). First, the employee must have paid at least 26 The following benefits are available under class 1 flat-rate contributions since he became the main national insurance scheme for the insured. Second, to get benefit at the standard three classes of covered persons: rate during a benefit year, he must have paid or been credited with at least 50 class 1 flat- Unemployment benefit'" ''' rate contributions in the previous contribution Sickness benefit ''" year. If fewer than 50 but at least 26 contribu- Matrnity allowance ''' Maternity grant tions have been paid or credited during the Widow's allowance contribution year, benefit is paid at a reduced Widowed mother's allowance rate. The benefit year starts 5 months after the Widow's pension end of the contribution year. Guardian's allowance Flat-rate unemployment benefit is payable Child's special allowance Retirement pension for up to 312 days (that is, 1 work year, not Death grant counting Sundays) in any period of interruption of employment."' Once a worker's benefit '" The total weekly fiat-rate social insurance contri- has run out, he cannot get it back until he has bution for self-employed men is f1.50 and for women returned to work and has paid at least 13 more f1.25. Fur nonemployed persons, a small group, the class 1 flat-rate contributions. Benefit usually adult male contribution is £1.20 and the adult female contribution 94 pence. is not paid for the first 3 days of a short spell "' CentralStatisticalOffice,National Income and of unemployment, for isolated days of unem- Expenditures (London: H.M. Stationery Office, 1970), table 40, p. 47. " Spells of unemployment not separated by more 1" Not available to self-employed persons. than 13 weeks count as one period of interruption of " Not available to nonemployed persons. employment.

70 ployment, or for days on which the employee work and paid contributions for 13 weeks as would not normally work. an employed or self-employed person.Flat-rate A claimant for flat-rate unemployment bene- benefit usually is not paid for the first 3 days fit may be disqualified for a period up to 6 of a short spell of sickness, or for isolated days weeks if he (a) leaves a job without just cause of sickness. Earnings-related sickness benefit or loses it through his own fault; (b)refuses is the same as for unemployment be.,efit. The without good cause a suitable job or training payment of sickness benefit is contingent upon when offered; or (c) fails to take reasonable transmittal to the local Social Security Office steps to get a suitable job when he is told about of a medical certificate testifying to the inca- one. He is disqualified also, if his unemploy- pacity of the claimant for work. ment results from participation in strike action at his place of employment. However, the-fam- Retirement pensions. The minimum age for ily of a disqualified striker is entitled, on the the receipt of a retirement pension is 65 for a basis of need, to receive state welfare benefits. man and 60 for a woman. Up to age 70for a An earnings-related supplement to unem- man and 65 for a woman, the receipt of a pen- ployment benefit is payable to a person over sion depends on retirement from regular work. age 18 and under minimum pension age who is Over those ages a pension can be paid whether entitled to a flat-rate unemployment benefit the pensioner has retired or not. A married and who had reckonable earnings 152 of at least woman who relies on her husband's contribu- £450 (US$1,080) in the relevant income tax tions for flat-rate pension purposes can receive year, normally the last complete income tax a pension when she retires (that is, at age 60if year. The amount of the supplement is scaled she does little or no paid work), but only if her according to average weekly earnings in the husband is already a retirement pensioner; range of £10 to £42. The supplement is payable otherwise, she cannot qualify until he retires for up to 26 weeks, but is not payable for the or reaches age 70. first 12 days of unemployment. When employ- "Retirement" does not necessarily mean the ment has not been terminated (e.g., as in the complete relinquishment of paid employment. case of lay-off) the supplement is not payable Under an "earnings rule," a person will be for the first 6 days (excluding Sundays and treated as retired if his net weekly earnings holidays). These 6 days are in addition to the are notexpectedto be more than £9.50 initial 12 days for which the supplement is not (US$22.80), or are expected to exceed that payable. amount only occasionally. Earnings in excess Sickness benefit. The standard rates of flat- of the stated amount involve a reduction in rate sickness benefit, including increases for pension. Other earnings exceptions are decided dependents, are the same as for unemployment on a case by case basis. The earnings rule does benefit. The contribution conditions are also not apply at age 70 (65 for women). the same, except that class 2 as well as class 1 The standard flat-rate pension for those who contributions will be counted. retire at minimum pension age is £6 weekly. A Once a claimant has paid 156 class 1 or class man's pension can be increased if he has a de- 2 flat-rate contributions, and provided he has pendent wife who is not qualified for a pension paid or been credited with 50 contributions in in her own right, and by additional amounts if the previous contribution year, he can get, if he has or is responsible for dependent children. he qualifies medically, flat-rate sickness benefit Thus, the minimum weekly pension for a mar- for an unlimited period. Until he has paid 156 ried couple is £9.70 (US$23.28). Incremental flat-rate contributions, he cannot get flat-rate additions to pension can be earned by work benefit for more than 312 working days. At the after age 65 for a man or 60 for a woman up to expiration of this period, he cannot get flat- ages 70 and 65, respectively.15' Finally pensions rate benefit again until he has been back at will be increased to the extent that claimants

Reckonable earnings are those on which income "' For every 9 flat-rate contributions paid for weeks tax is assessable under Schedule B (income from em- of employment or self-employment between ages 65 (60 ployment or pensions) and is nayable through the pay for women) and 70 (65 for women) the flat-rate pen- as you earn systurn. sion will be increased by 6 pence.

71 have earned "units" of graduated pension. since for widows with dependent children after the the graduated part of the pension scheme began 26-week allowance period (£6 weekly, and in- in April 1961.'54 The receipt of a private pen- creases for dependent children) ; 136 a widow's sion does not affect a claimant's rights under pension at the standard weekly rate of /6 if the state system. (1) the widow was 50 years of age or over Two contribution conditions are required to when her husband died and had been married qualify for a pension. One is that normally the for 3 years or more, or (2) if, after the expira- claimant must have paid at least 156 flat-rate tion of the widowed mother's allowance, she is contributions of any class; the second is that, then over 50 years old and 3 years have for a pension at the standard rate, an average elapsedsincethedateof hermarriage. of 50 flat-rate contributions must have been Widow's benefit stops if the widow remarries. paid or credited over a specified period. If the Retirement pension usually is paid instead of yearly average is below 50, but at least 13, pen- widow's pension to widows who are 60 or over sion at a reduced rate is paid.155 when widowed. Other widows qualify for re- Retirement pensions are administered by the tirement pension on their own insurance when Department of Health and Social Security. they retire on or after reaching age 60. There were almost 7 million retirement pen- A guardian's allowance of £2.95 weekly is sioners in Great Britain at the end of 1968. In paid to a person who takes into his family a that year, about 32 percent of the awards made child whose parents are dead. Also, a special to men pensioners and 24 percent to women allowance is available to a woman whose mar- qualifying on their own insurance includedan riage has been dissolved or annulled, if on the increment because of deferred retirement. death of her former husband she has a child towards whose support he was contributing or Other social insurance benefits. Various other had been liable to contribute. benefits are available under the national insur- Finally, a death grant, at a standard rate of ance system. These include maternity benefits, £30 for an adult and a smaller sum for a child, which are of two kinds. A maternity grant is payable on the death of an insured person, (125) is payable for all confinements, provided or of the wife, husband, or child of an insured either the mother or her husband satisfiescer- person. tain contribution conditions. A maternity allowance is payable at the standard rate of £6 Family Allowances weekly for 18 weeks to women, who normally are working and are themselves paying na- A universal system of family allowances was adopted in 1945; the legal basis for present ar- tional insurance contributions. (Benefits begin 11 weeks before the expected week of confine- rangements is provided by the Family Allow- ment and ending after the 6th week following ances Act, 1965, which consolidated earlier leg- the expected week, or the actual confinement, islation. The purpose of family allowances is to if this is later.) increase the incomes of families with more than one dependent child. At present, an allow- Various benefits are provided for widows, in- ance of 90 pence (US$2.16) a week is paid for cluding a widow's allowance (a standard flat- the second child in the family, and £1 for each rate allowance of £8.40 a week, and increases child after the second. The allowances are paid for dependent children, for the first 26 weeks tofamilies regardless of income, and are of widowhood) ; a widowed mother'sallowance financed from general tax revenues. Since al- '" The cost of the "unit" is higher for lowances must be included in statements of in- women because come for income tax purposes, their benefit is they can qualify for pension 5 years earlier thanmen. Since those who have "contracted out" of the graduated greatest for low-income families who pay lit- scheme nonetheless make contributions, butat a lower tle or no tax. rate than those who have not contracted out, theymay qualify for some graduated pension. (See table28.) 1" A widow whose son or daughter has left school and 1" For married women claiming pensionon their own does not qualify as a dependent child, but is still undee insurance, an additional condition is that they have paid the age of 19 and living with her, can also get a or been credited with a substantial number of flat-rate widowed mother's allowance, but without increases for contributions since marriage. children.

72 For family allowance purposes, a childis de- a woman), and of asupplementary allowance fined as one under the statutoryminimum for others. The benefit is the amount bywhich school-leaving age of 15 or for any further pe- a person's requirementsexceed his available dur- resources, both beingdefined by the appro- riod between then ar4 his 19th birthday is ing which he is receiving full-timeinstruction priate rules. The calculation of requirements based on different amounts for single persons in an educational institution, or is an appren- rent. tice. There are special rules forchildren who, and family groups, with an addition for because of mental or physical illness, arenei- Special higher amour.',s are available forblind and for people; for the elderly and most otherlong- ther at school nor capable of working, (a so-called children who are not living with theirparents. term cases, a special addition Claims for family allowances are decidedby long-term addition) is made. independent statutory authoritiesappointed Toillustrate:the weekly supplementary under the National Insurance Acts forthis benefit level for a husband and wife pensioner purpose. Rights of appealexist. As of March household is presently £9.45 (US$22.68) plus 31, 1970, over 4 million familiescontaining rent. The long-term addition of 50 pence,to more than 11 millionchildren were in receipt which most pensioners would be entitled, would of family allowances.'" raise this level to £9.95 (US$23.88).If resources, as calculated underthe act, fall below Supplementary Benefits this level, the difference would be paid as supplementary benefit. Thus, in effect an annual The Supplementary Benefits Schemeis de- income of £517.40 (US$1,241.76) plus rent is signed to bring a person's income or resources guaranteed a married couple pensioner house- up to a level approved byParliament. The level hold. In certain circumstances, an additional consists of a basic rate to which anaddition benefit may be paid. In the case of a single pen- may be made for rent.Other increases may be sioner household,histotalweekly income made for certain necessary additional expen- would be made up to at least £6.30,including ses. This program,which replaced the Na- the long-term addition plus rent. tional Assistance Scheme in November 1966,is Claimantsforsupplementaryallowance administered by a Supplementary Benefits (those below pension age) include the sick, dis- Commission within the Department of Health abled, unemployed, and mothers left with the and Social Security. Its legal basis is theMin- care of young children. Paymentgenerally is istry of Social Security Act, 1966. limited to 4 weeks in the case of unskilled sin- Supplementary benefits provide, in effect, gle men under the age of 45 who are fit for guaranteed minimum incomes fordifferent work and where work is available in the local- types of claimants. Entitlement to supplemen- ity. Claims from all healthy unemployed men tary benefits, unlike benefits payable underthe and women under the age of 45 are reviewed national insurance program, involves a means after 3 months. Able-bodied men ofworking test. The relevant legislation incorporatesrules age generally must register forwork at an em- for deciding how much of a claimant'scapital ployment exchange; their allowance thenis and various forms of income can bedisre- paid at the exchange. In other cases, the sup- garded in making the comparison between re- plementary allowance is paid weekly through a sources and requirements. post office. Every person aged 16 or over who is not in In November 1970, supplementdrybenefits full-time employment and whose resources, as were being paid in2,738,000 cases. Almost 70 calculatedin accordance with the act,fall percent of the payments were to personsover short of his requirements is entitled to a sup- pension age. Those under pension agereceiving plementary benefit. The benefit takes the form supplementary allowances includedsick and of a supplementary pension for those over stat- disabled persons, unemployed persons,widows utory retirement age (65 for a man and 60for receiving widow's pension or benefit,and several other categories of claimants.There is a The number of children includes the elder or eldest right of appeal against all decisions onclaims child, for whom no allowance is payable, but excludes Tribunals. children over the age limit. to Supplementary Benefit Appeal

73 The Supplementary Benefits Commission is service is financed largely from general tax responsible for the administration of reception revenues. As previously noted, however, small centers and reestablishment centers. Reception health service contributions are collected under centers provide accommodation for unsettled, the National Insurance Scheme, and thereare homeless people, and attempt to integrate them charges for certain items. As of April 1. 1971, into the community. This means finding suit- the fiat-rate prescription charge, for example, able living quarters and, when they are fit for was 20 pence (US$0.48), except for elastic ho- work, suitable employment. The reestablish- siery,forwhichcharges were somewhat ment centers provide instruction or training higher, Charges are made for wigs. For eental calculated to fit people for entry or reentry treatment, patients pay about half the cost, into employment. In the main, they cater to subject to a ceiling of £10. The initial examina- men receiving supplementary allowances who tion and repairs to denturesare free, but a have been unemployed continuously for long charge of £7 is made for full dentures. Sight periods and who have, in consequence, lost the testing is free, but charges are made for lenses. habit of work. They do not attempt to teach There are various income-related and otherex- specific trades or skills, which is a responsibil- emptions to these charges, and it is fair tosay ity of the Department of En.ployment. Incoop- that no one is denied medical care because of eration with that Department, the centers do lack of resources. attempt to find each man suitable employment The backbone of the Health Service, ina eventually. sense, is formed by the general practitioners, who numbered about 22,700 in Great Britain in National Health Service 1969. Patients may choose their doctor, and may change doctors with a minimum of for- The National Health Service Act, 1946,pro- mality. Doctors similarly may acceptor refuse -ided for the establishment in England and patients, but they have a general obligation to Wales of "a comprehensive health service, de- provide emergency treatment where necessary. signed to secure improvement in the physical The maximum number of patients thata doc- and mental health of the people... and the tor may accept under the Health Service is prevent;nn, diagnosis and treatment of illness." 3,500; in 1969, the average number of patients The National Health Service- (Scotland) Act per doctor was about 2,500 in England and was passed in 1947. Both acts came into effect Wales and about 2,100 in Scotland. A doctor in 1948. The two acts are similar, -hough participating in the Health Servicemay accept they are administered differently. paying patients if he cares to do so. The Health Service makes free medical, hos- The general practitioner has complete clini- pital, and dental care available to all residents cal freeckm in the treatment of his patients. In of Great Biltain, except for a small contribu- difficul. cases, he may refer patients to special- tion payable under the national insurancesys- ists and hospitals for diagnosis and treatment. tem and small charges for some items. I.: but The general practitioner service ,is almost al- a small proportion of the population use the ways operated from the doctors' own offices service, and an overwhelming proportion ofthe (surgeries), to which patients go for advice members of the medical and allied professions and treatment unless home visitsare required. participates. Family doctors frequently practice in partner- Expenditures for the National Health Ser- ship and group practice is increasing. vice for the year ended March 31, 1970,were Doctors in general practice are remunerated ,,;.imatedat 11,763 (US$4,231 mil- partly on the basis of capitation fees paidac- lion), of which £1,705 million representedex- cording to the number of patients on a doctor's penditures by the central government.'"The list. A higher fee is paid for each patient age 65 and over, and additional payments are made '" Cent, al Statistical Office, Annual Abstract ci Sia- tistics, 1970, table 52, p. 58. Government expenditures, fur a variety of specific E.-:vices and conditions includingcapitalexpenditures, were .21,861million -.f practice (e.g., for practicing in an area that (ibid., table 91), or about 9.8 percent of gross national has been short of doctors for several years, for product. practicing in a group, for seniority, for visits

74 to patients at night, for maternity semices, among four broad groups ofpeople: mothers etc.). The average family doctor earnsbetween and young children ; the elderly ; thementally £4,500 and £5.000 (USS10,800 and US$12,000 disordered ;and the physically handicapped. They also offer services to the ill andconvales- an n ually. homeless. Backing up the general practitioner arehos- cent at home, and to the temporarily pital and specialist services thatprovide all In England and Wales, local authorities are re- forms of hospital care and treatment.In 1969, sponsible for the ambulance service. CoordinatedcloselywiththeNational 525,000 staffed hospital beds were available ; the the average daily occupancy rate wasabout 83 Health Service, but independent of it, is School Health Service through which every percent. Upwr,i-d of 600,000 persons were on is hospital waiting lists as of the end ofDecember child attending a publicly maintained school given a number of general medical anddental 1969. all examinations during his school career, and The dental service provides patients with to be forms of treatment necessary for dentalfit- such other examinations as are found ness. As in the familydoctor service, there is necessary or advisable. complete freedom of choice by patients ofden- tists and by dentists of patients. Unlike the Other Insurance and Retirement Systems medical service, patients are not required to Thediscussionofsupplementarywage register with dentists, the normal practice that private being to visit a dentist's office by appointment. payments in chapter XI indicated their own pension plans (occupational pensionschemes Dentists providing treatment in least in offices are paid on a prescribed scale of fees. in British terminology) financed at Treatment also may be carried out at dental part by employers now cover asignificant seg- hospitals as part of the hospital service. As pre- mentmore than two-fifths--ofemployment viously noted, charges are made for dentures, in Great Britain. As we have seen,employees may be contracted out ofthe graduated portion although not for their repair. Certain treat- arrangement if ments and procedures require the approvalof of the social security pension they are covered by an appropriateprivate the Dental Estimates Board composed mainly large num- lf dental practitioners. Eye services,including plan. In view of the comparatively ber of old-age pensioners who needsupplemen- spectacles, also are available under the Na- private tional Health Service. tary benefit payments, the growth of Everyone receiving treatment under the plans, and the introduction in 1961of earnings-related supplements to the Stateold-age family doctor service is entitled to drugs, medi- desirable de- cines, and certain appliances prescribed byhis pension system, represent highly physician. As noted earlier, there normally is a velopments. flat-rate charge to the patient for prescrip- Medical and hospitalization insuranceplans, which constitute an important "fringebenefit" tions. Chemists (pharmacists) dispensing pre- in scriptions under the National Health Service inAmericanindustry,are unnecessa:y comprehensive are paid the cost of theingredients of each-a- Great Britain in view of the scription, a percentage of cost designed to health care provided for largely outof general allowance, and a government revenues. cover overhead, a container income loss professional fee. Two other provisions against Service that are not in any strict senseinsurance iv-. In addition to the National Health point. One proper, the health and ielfare servicesof local rangements deserve mention at this is the legal provision for severance payunder authorities play an imi,ortant role in promot- 1965 and ing the physical well-being of people inthe the Redundancy Payments Acts of 1969. (See chapter IX.) The otheris the wide- communitiestheyserve.Localauthorities in British often work in cooperation with voluntary organ- spread existence of paid sick leave lend industry, which clearly provides avaluable izations to which they may make grants, the na- premises, or give help in other ways. supplement to sickness insurance under The work of the local authorities ismainly tional insurance system.

75 Appendix A. Major Labor and Social SecurityLegislation in Great Britain '

Industrial Relations Conspiracy and Protection of Property Act, 1875 Conciliation Act, 1896 Trade Union Act, 1913 Industrial Courts Act, 1919 Industrial Relations Act, 1971 2

Wage Regulation Agricultural Wages Act, 1948 Agricultural Wages (Scotland) Act, 1949 Wages Councils Act, 1959 Sereranee Pay Redundancy Payments Acts, 1965 and 1969 Wage Payment Truck Acts, 1831 to 1940 Payment of Wages Act, 1960 Equal Pay for Women Equal Pay Act, 1970 Industrial Health and Safety Railway Employment (Prevention of Accidents) Act, 1900 Agriculture (Poisonous Substances) Act, 1952 Mines and Quarries Act, 1954 Agriculture (Safety, Health and Welfare Provisions) Act, 1956 Factories Act, 1961 Offices, Shops and Railway Premises Act, 1963

Hours of Work for Women and Young Persons in IndustrialEmployment Factories Act, 1961 4 Employment Exchanges, Youth Employment Service, and Job Training Employment and Training Act, 1948 Disabled Persons (Employment) Acts, 1944 and 1958 Industrial Training Act, 1964

' Complete listings can be supplied by the Department of Employmr , for labor legislation and by the Depart- ment of Health and Social Security for social securitsupplementary benefits, family allowances, and health care legislation. Yl'' ' The Industrial Relations Act, 1971, repealed certainearlier industrial relations acts either wholly or in part. Acts wholly repealed are not listed.

76 Terms of Employment and Termination Notices Terms and Conditions of Employment Act, 1959 Contracts of Employment Act, 1963

Racial Discrimination in Employment Race Relations Act, 1968

National Insurance, Supplementary Benefits, andFamily Allowances 1 National Insurance Act, 1965 National Insurance (Industrial Injuries) Act, 1965 Family Allowances Act, 1965 National Insurance Act, 1966 Ministry of Social Security Act, 1966

General Medical, Hospital and rental Care' National Health Service t3cotland) Act, 1947 National Health Service Act, 1946

' Only the most basic social security and health service acts arelisted; acts primarily for the purposes of increasing benefits, contributions, or charges are not listed.

77 Appendix B. Northern Ireland

The Constitutional Position Northern Ireland, who has responsibilityfor Northern Ireland, consisting of six industrial relations, declared that "No decision countries on the introduction of any legislative proposals with an area of 5,452square miles and an esti- in this field has been taken by theNorthern mated population (mid-1970) of1,524,000, oc- Ireland Government." cupiesaparticularconstitutional position In general, most labor and socialsecurity within the United Kingdom. TheGovernment of Ireland Act, 1920, provided legislation in Northern Ireland is similarto, a constitution but not necessarily identical with,that for for Northern Ireland which, whilepreserving Great Britain. It is not practicable in this the supreme authority of theUnited Kingdom Parliament, gave Northern Ireland study to attempt to compare the two bodiesof its own leg- legislation. This appendix attempts simplyto islature and executive to deal withdomestic affairs. On March 24, 1972, the provide a brief introduction to labor andso- British Prime cial conditions in Northern Ireland.2 Minister, in view of theescalating civil strife in Northern Ireland, announcedto Parliament that home rule would be suspendedfor at least Government and Politics a year, and that Northern Ireland would be The Government of Northern Ireland, before ruled directly from London.Implementing legislation was passed several the assumption of direct rule from Westmins- days later, and a ter, consisted of a House of Commons of 52 Secretary of State for NorthernIreland was appointed. members last elected in 1969, and ofa Senate of 25 members. In the Commons, 34 seats Under Ulster home rule,most legislation were enacted by the United Kingdom held by the Unionist Party, which generally Parliament, in represents the Protestant majority, and 5 addi- which Northern Ireland has12 out of 625 seats, did not apply to Northern tional seats by the Independent and Protestant Ireland. The Redun- Unionist parties. The remaining 13 seats dancy Payments Act, 1965,for instance, prov- were ides that "If legislation is divided among four parties andan independent passed for purposes member. similar to the purposesof this Act by the Par- liament of Northern Ireland, Government administration was headed by a the Minister may, Prime Minister. There were seven ministries, with the consent of theTreasury, make recip- rocalarrangementswith which presumably will continue to function theappropriate under direct London rule. Responsibility for Northern Irish authority forco-ordinating the- provisions of this Act with the labor affairs is lodged in the Department of corresponding Labour Affairs, which is part of the Ministry provisions of the Northern Irishlegislation, so as to secure that they operate, to such of Health and Social Services. The Department an ex- is headed by a deputy secretary, who reports to tent as may be provided bythe arrangements, as a single system." ' the Ministry's permanent secretary, and two assistant secretaries. The major work of the Similarly,theIndustrialRelationsAct. 1971, does not apply to NorthernIreland. In a ' The Gr.iernment of Northern Ireland, Economic statement on December 2, 1970,the day after Section, issues a semi-annual Digest of Statistics (Bel- the bill was introduced atWestminster, the fast: H.M. Stationery Office), which is of great impor- Minister of Health andSocial Services for tance in the study of economic and social conditions. Considerable data separately for Northern Ireland appear in the United Kingdom Monthly Digest of Sta- ' Redundancy Payments Act,1965, section 58(1). tistics and in the Annual Abstract of Statistics.

78 Department relates to employment services, in- tivelylargeragriculturalcomponent than cluding the employment exchange system and Great Britain. As of March 1970, about 9.6 job training, factory inspection, conciliation of percent of the civilian working population, in- industrial disputes, wages councils, and redun- cluding employers and the self-employed, was dancy payments. The Ministry additionally is engaged in agriculture, forestry, and fishing. responsible for the administration of social se- Manufacturing occupied 34 percent. Within curity, national assistance, and the health ser- manufacturing, the principal industries were vices for Northern Ireland. The family allow- textiles, various engineering E :d metalwork- ances schemes of Great Britain andNorthern ing industries, food, drink, and tobacco, and Ireland operate as a single system. Workmen's clothing and footwear. Aside from manufac- compensation legislation in Northern Ireland turing, professional and scientific services, in- is similar to that in Great Britain. cluding education, accounted for the largest The population of Northern Ireland is ap- single sector of the working population, almost proximately two-thirds Protestant and one- 13 percent. third Roman Catholic. Politically, the most ur- The Government is vitally concerned to at- gent problem is to reconcile, in this pleasant tract outside capital investment as a means of land, grave differences between these two reli- reducing the relatively high level of unemploy- gious communities. These differences erupted ment and raising the living standards of the in violence in Londonderry in October 1968. Ulster people. At the beginning of 1971, over- The differences have social and economic as seas investment amounted to morethan £200 well as religious roots. The extremists, both million. Employment in overseas firms was Catholic and Protestant, appear to represent 34,000, including 23,000 in plants of American small fractions of the respective populations, firms. Financial incentives for new investment and it is reported that communal differences are more generous for In existing and new have not resulted in serious problems on the industry than those obtainable elsewhere in shop floor. the United Kingdom. As recently announced by The Government, before March 1972, had the Ministry of commerce, the present pro- taken a number of steps in an effort to ease gram includes grants of 20 percent onexpendi- tensions. A Ministry of Community Relations ture on new plant and machinery and S5 per- was established in March 1969,with two broad cent on new buildings. Expenditure net of responsibilities: (1) to formulate and sponsor grant enjoys the increased tax allowance now policies for the improvement of community relations in Northern Ireland; and (2) to assist applying in development areas in Britain and in the administration of the public services includes free depreciation for new industrial (e.g., public housing) so as to improve com- plant and machinery. Even more favorable munity relations.3The Electoral Law Act, terms are available for new projects that offer 1969, provided for one-man, one-vote in local worthwhile expansion in employment oppor- council electioris, the principle always applied tunities. During the 6 years 1964 to 1969. al- in Parliamentary elections. A Parliamentary most 29,000 new jobs -were provided by Gov- Commissioner (or Ombudsman) has been in ernment-sponsored industry in the manufac- office since June 1969, and a Commissioner for turing sector. Complaints (a local Ombudsman) since Decem- An English observer concluded in early1971 ber 1969. The duty of the latter official is to with reference to the experience of foreign deal with grievances against local councils and firms in Ulster that "So far, despite the trou- other public bodies. Both Commissioners are bles; most foreign companies are well satisfied. independent of the Government. They find their work people friendly, coopera- tive and intelligent, and their unions on the The Economy whole constructive ...Investors in Northern Ireland face some marginal disadvantages in The economy of Northern Ireland has a rela- that they often incur additional transport costs for new materials, components and exports ' See statement on "Ministry of Community Relations: Functions" (Belfast, February 18,1371). ... Yet they enjoy substantialoffsetting

79 advantages."' Another analysis held that Uls- schools, including nursery schools, and about ter geographically ".. .is out on a limb and 133,000 in secondary schools. Special schools its economy is too: it is thereby less likely to for handicapped children had an enrollment get those massive pieces of investment in the slightly in excess of 2,000. Pupil-teacher ratios spanking newtechnologicalindustriesfor were relatively low : 29 :1 in primary schools, which other slow-growing regions in Britain about 19:1 in secondary schools. and 11:1 in are clamouring ...its immediate need is to at- special schools. tract labour-intensive plants, first to lap up the As in Great Britain, the legal school-leaving pool of unemployment and second to get rid of age is presently 15 years and is scheduled to the underemployment of its women workers."5 rise to 16 in 1972. It is estimated that about 44 Perspectives on economic and social develop- percent of the students now leave school at the ment in Northern Ireland during the 5 years minimum school-leaving age; an additional 17 from 1970 are contained in a paper recently is- percent continue at least to age 16. The re- sued by the Government., mainder enter institutions of further education Gross national product in Northern Ireland (e.g., technical colleges or institutes), teacher in 1368 (the most recent year for which data training colleges (about 5 percent), and uni- are available) was £696 million (US$1.7 bil- versities (about 8 percent). lion). Manufacturing accounted for 35.5 per- Queen's University in Belfast has more than cent ot GNP. Gross domestic product at con- 6,000 students, and the new University of Uls- stant prices (a rough measure of real output ter in Coleraine over 1,300. for the economy as a whole) increased 22 per- Life expectation at birth in Northern Ireland cent betwee.i 1963 and 1968. Personal income is 68.3 years for males and 73.7 years for for the fiscal year 1968-69, augmented by cur- females,7 about on the level with Great Britain. rent grants from public authorities, was £736 Infant mortality (deaths of infants tinder 1 year million (US$1.77 billion), of which 62 percent of age per 1,000 live births) was 24 in 1969, represented income from employment. Self-em- compared with 18 in England and Wales and ployment income accounted for about 12 per- 21.1 in Scotland. Since the turn of the century, cent of the total, and rent, dividends, and inter- the expectation of life at birth has increased by est for approximately 11 percent. The remain- about 50 percent, and dramatic reductions have der (16 percent) represented public authority been achieved in infant and maternal mortality. grants, national insurance benefits, family al- The birth rate in Northern Ireland is presently lowances, assistance grants, war pensions, and the highest in the United Kingdom. other types of payments. As in Great Britain, Northern Ireland maintains a comprehensive system of medical, hos- Education, Health, and Housing pital, and dental care financed largely from general government revenues. As of early In Northern Ireland, both county schools, managed by local education. authorities, and 1970, medical doctors on the health service list voluntary schools, usually under clerical man- numbered 749 and dentists 331. More than agement, are aided by Government grants. For 17,500 hospital beds were available. the school year 1969-70, there were, 1,568 A sample survey of family expendittres was grant-aided schools (primary, secondary, and made in1968.8The average household in special) in Northern Ireland, of which 805, Northern Ireland contained 3.57 persons, com- slightly more than half, were under theman- pared with 2.96 persons in a similar survey in agement of local education authorities. Almost Great Britain in 1969. There were, on the 209,000 children were enrolledin primary average, 1.41 persons working per family. Average weekly household expenditures on ' John Cockcroft, "Ulster's Industrial Conundrum," Pally Telegraph (London), March 5, 1971. gFads and services (excluding payments for See article "Stumbling Along" in the special section taxes, national insurance, other types of pen- on "Ulster: A Survey" in The Economist, May 29, 1971. Government of Northern Ireland, Northern Ireland Based on Life Table, 1967-69. DevelopmentProgramme,1970-75(Belfast:H.M. *Government of Northern Ireland, Digest of Sta- Stationery Office, Julie 1970, Cmnd. 547). tistics, September 1970, table 111.

80 the wholly sionor insurance contributions,mortgages. 12.5 percent of the labor force, and etc.) were £25.03. Of this total. 27.9 percent unemployed almost 6 percent. Thedistribution the labor force was spent for food and only 8.7 percentfor of the employed segment of provides a broad housing, excluding. however, mortgages and among major industry groups other payments for purchase or alteration of view of the pattern of economicactivity. UnemploymentinUlster, compared with dwellings, but including "notional" rents for high for owner-occupiers and households living rent- Great Britain, has been persistently effects of the de- free. Other major expenditure categories were many years. The employment Northern Ire- transport and vehicles (14.0 percent) ; clothing clining importance of traditional and ship- (11.9percent) ;durable house- land industries-agriculture, linen, and footwear erased hold goods (7.6 percent) ; and fuel. light, and building-have been mitigated but not by the growth of employment inother indus- power (6.2 percent). in Northern With respect to housing, 188,869 new homes tries. The unemployment rate 'A period up Ireland in 1969 was 7.3 percent, comparedwith were completed during the postwar the rates to January 31. 1971, about 37 percent directly 2.4 percent in Great Britain; in 1970, is were 7 percent and 2.6 percent,respectively. by local authorities. Private-sector housing is markedly stimulated by a subsidy scheme confined to The rate for males inUlster 1969 the respec- Northern Ireland. More than 700,000 people, higher than for females-in almost half the poulation, are now living in tivepercentages were 9.1 and 4.4.Relatively high unemployment probably contributesto postwar homes, The Government's develop- Ireland. It ment program contemplates the completion of communal difficulties in Northern explains the determined effort of theGovern- about 15,000 additional homes annually during at the the period 1970-75, and signint_ant progress on ment to attract outside investment and, behind the outmi- slum clearance and redevelopment same time, the motive power gration of population, primarily to GreatBrit- ain. Population. Labor Force. Employment. In manufacturing as a whole, maleblue-col- and Earnings lar workers aged 21 and over had average Octo- The following tabulation shows the esti- weekly earnings of £20.90 (US$50.16) in mated population of Northern Ireland as of NORTHERN IRF,LAND1DISTRIBUTION OF THE WORKING mid-1970 and summary figures onits age POPPLATI9N, MARCH1970 distribution.' About 30 percent of thepopula- Number tion was 14 years of age or younger, compared Lah.,r force catevory in thousands) Total ,orhing population Vol4.9 with slightly less than 24 percent in Great Males 214.0 ...-Fst1791c4 204.9 Britain. Less than 11 percent of the population 3..S Registered wholly unemployed 2! was aged 65 and over; the correspondingfigure Males Ftinales for Great Britain was almost 13 percent. Only 74.. Employers and self-employed 71.0 roles 3.9 59.3 percent of population was in the produc- Females 188.5 tive age groups between 15 and 64 years, com- Total employees in employmelt 295.2 Males pared with 63.2 percent in Great Britain. Females 193.3 Labor force in civil employment' 583.4 Total Mole Fondle Agriculture. forestry. and fishing 54.2 Mining and quarrying 3,1 (In thousands) Manufacturing 188.5 Construction 33.0 1,524 745 779 8.1 Al! ages Gas. electricity and water 24.5 457 235 222 Trarsport and communication 55 0-14 IS,stribut:ye trades 15-64 904 443 461 Insurance. banking, fimmer. and business 11.0 163 67 96 seryi"es 72.7 65 and over Professional and scientific services 41.3 Misrellaneous servic:s 39.7 Thetotal labor force as of March 1970 (see Puldie administration and defense accompanying table), numbered 598,900, of Including prisons temporarily laid off. q(vtifill::Government of Northern Ireland.Ingest of Notate.. whom almost two-thirds were males. Em- Septemher 1070. thole 7. ployers and self-employed persons constituted " Numbered registered atemployment exchanges total num- 'Central Statistical Office (U.K.). Monthly !live of expressed as a percentage of the estimated Statistics, February 1971, tables 10 and 11. ber of employees.

81 ber 1969, the most recent date for which such ing at a Government Training Center. Alterna- data are available. Hours worked averaged tively, i. may recruit supervisors and instruc- 44.2 a weeek. The level of weekly earnings for tors in advance and train them in the parent male factory workers was exceeded, among plant, so that a program of operative training those industry groups for which data are avail- can be launched as soon as the company sets up able, only by workers in transport and com- in Northern Ireland. It may recruit in advance munications, who averaged £22.89 for an aver- a substantial nucleus of its work force at all age work week of 49 hours. In terms of aver- levels and take them for training to the parent age hourly earnings, the level for adult males factory. The Ministry contributes heavily to in factory employment was higher than for the cost of all or any of these operations and any other group. The average weekly earnings assists actively with recruitment and with in manufacturing of women aged 18 and over technical advice on training. in blue-collar jobs was about half that of men, Government Training Centers are located in reflecting factors such as differences in occupa- a number of communities and additional cen- tionalcompositionand probably,although ters are planned. About one-third of the places hours data for women are not published, dif- are occupied by adults and the remainder by ferences in average working hours. apprentices. Heavy emphasisisplacedon Money wages have risen substantially in training for engineering and related trades and Northern Ireland in recent years. For adult for the construction crafts. Boys in the appren- male blue-collar workers in manufacturing, ticeship program normally are given a year of the increase from October 1960 to October basic training at the Government Center be- 1969 was 73.5 percent. There is no index of re- fore being placed with individual firms, where tail prices specifically for Northern Ireland. If their period of trainng counts as part of their prices rose in line with those for the United apprenticeship. Over the past 6 years, practi- Kingdom es a whole, the indicated advance in cally all of the boys completing their basic real earnings was in the neighborhood of 25 training havve been placed in industry. percent. Wage advances for women appear to Government financial and technical assist- have been relatively in line with those for men. ance is also available for training on em- The average weekly earnings of male admin- ployers' premises. In essence, the scheme prov- istrative, technical, and clerical employees in ides for basic weekly training grants for adults manufacturing averaged 128.06 (US$67.34) in for approved training periods ranging from 2 October 1969; the corresponding average for to 52 weeks. Ministry instructors may be sec- females was 112.77 (US$30.64). onded to firms where necessary, and there are other features to the program. Job Training As of March 1971, nine Industry Training Boards had been established in Northern Ire- Northern Ireland has a vigorous program of land similar to those in Great Britain. (See job training. The Department of Labour Af- Chapter IX.) The Boards have at their disposal fairs in the Ministry of Health and Social Ser- the mechanism of levy and grant, but they vices is directly responsible for training some have deferred introduction of the levy system 3,000 youths and adults each year in a wide va- pending surveys of training needs and the com- riety of industrial skills, and paysa large pletion of pilot projects. share of the cost of training by industry ofa further 5,000 annually." Unionism and InLastrial Relations Particular attention is paid to the training needs of new industry, and the Ministry works In Northern Ireland, members of unions directly with new firms to ensure that the set- with headquartersin the United Kingdom tling-in period is as smoothas possible. A new numbered 243,000 in 1969, or about 46.6 per- firm may recruit workers in advance for train- cent of all wage and salaried workers, including the unemployed. " The Ministry issued on Mar. 1, 1971, a useful col- Over the period 1960-69, the number of lection of 12 short papers on "Manpower and Indpstrial workers involved in work stoppages averaged Training Arrangements in Northern Ireland." about 32,000 annually. The range during this

82 10-year period was from 12,500 workers in differences were ironed out without interrup- 1963 to 72,600 in 1962. The total loss in work- tion to production. ing days averaged 91,300 annually. On the av- The Government is keenly concerned with erage,therefore,each worker actually on the maintenance of industrial peace, and its strike during this decade lost less than 3 work- conciliation services are readily available to ing days annually. Clearly most strikes were of the parties when labor-management difficulties short duration and most labor-management arise.

83 Appendix C.United Kingdom Decimal Currency

On February 15, 1971, Britain changed its pence equals one pound. currency from pounds, shillings, and pence The officially announced conversion from the (Ss. d.)to a decimal system of pounds and old to the new currency of amounts of less pence. The value of the pound in terms of than one pound is shown in the accompanying United States currency remained at US$2.40. table. Monetary values in the present studyare Under the old system, 20 shillings, 12 pence to expressed in the new currency. Conversion to the shilling. or 240 pence in all, equalled one the new currency of statistics published in £s. pound. Under the new decimal system. 100 d. can be made readily by use of the table.

CoN% ERSloN IltoM(I ,D To NEWRitMsHCURRENCY OFAM01',.:Ts l'SDERONE POUND

Old )14 N. % N..' Old Ne Old N., OldN. 1 /Id Nt% % (04Nt OHN,1, OM N.11 OldNe, isd 1%.1 SP .41 I4I fp ip /9 VAf). IA fp CA fp fA fp 14.1 IP fA fp ------2, / 20 10 6/ 30 s, 10 10/ 10 2' 60 14/ 70 16/ 80 18/ 90 I ti 2/1 1014 'I 20% co 30% sil40% loll 70% 2,1 6(1% 14/1 70% 16/1 80% 18/1 , 1 9014 2/2 11 '2 21 4,2 31 8/2 II 10/2 1 212 61 14/2 71 16/2 81 18/2 91 72 I 2/3II ,3 21 611 31 6/3 41 14/3 71 2/16, 14/3 71 16/3 81 18/391 I 2% 2/1 11% /1 21% 6/4 31% 8/2111 10/4 711.4 2/2 611,6 14/471% 16/4 8114 18/49114 ; 22 2,1 12 6/:,32 8/:.42 In /7 7,2 2,1 62 14/1 72 16/:, 82 18/:. 92 /4 2214 4/4 6 2% 2/6 12% 32% 8/64214 10/4 7,2% 2/662% 14/6 72% 16/682% 18/6 92% 7 1 2/7 13 /7 "3 G'7 33 S/7 43 10/7 53 2/763 14/7 73 16/7 83 1677 93 8 3% 2/8 13% /8 /04 6/8 3314 8/8 43% 14/8 73% 2/863% 14/87314 16/8 831 1 4 9114 0 I 2/9 11 4$ 21 6/4 31 8/!) 44 10/9 74 2/4 64 14/9 74 16/9 84 I , 94 10 1 2/1014 /102. 6/10 31 8/1044 10/107,1 2/1064 14/1074 16/1084 10/1094 II 4% 2/1114% /1124% 6/11 34% 8/114414 10/11111,5 2/1164% 14/117414 16/118414 18/119414

. 3/ 15 3:. II 7, 9/- 47 11/ 3/ 6:, 17/- 77, 17/-- 87, 19/ 95 /1 514 3/1 Inly 7/1 2314 7/1 3".14 9/1 4115 11/I 7,'4 3/1 67,1/2 15/1 ny, 17/1 87.% 10/19:44 /2 6 3/2 16 7/226 7/2 36 9/2 46 11/2 16 3/2 66 17/2 76 17 286 19/2 96 ,3 6 3/3 14 26 3/1 7/3 :36 9/3 46 11/3 56 3/3 66 15/3 76 17/3 $6 19/396 /4 6% 3/4 1614 7/4 26% 7/4 6% 9/446% 11/4 1614 3/4 661,6 15/4 76% 17/4 86% 19/49614 /5 7 3/7 17 7/7 27 7/7 37 9/5 47 11/I 77 3/; 67 17/7 77 17/S 87 19/7. 97

/6 714 3/6 17% 5/627% 7/6 37% 4/64714 11/6 571 3/467% 11/6 77% 17/6 8714 19/697% 18 /7 /7 8 3/7 28 7/7 38 9/7 48 11/7 ',8 3/1 68 17/7 78 17/7 88 19/7 98 /8 8% 3/8 IQ% 5/8514 7/6 381,1 9/34814 11/8 7(4% 31868% 15/8 781,4 17/8 88% 1"/8 9814 /9 9 3/9 19 1/929 7/9 39 9/949 11/9 19 3/969 15/9 79 17/959 19/4 99 /10 9 3/1019 7/1024 7/10 39 9/1049 11/147" 3/1069 17/1070 17/10(4' 19/1099 7/11 /1! 91 3/11134% 7/1129'4 39% 9/1119% II/II1914 , 3/116916 15/117414 17/118914 19/119914

84 Selected Bibliography

Official Reports and Periodicals

Central Office of Information, Britain 1970: Official Hanabook (1970). , Social Security in Britain(1970). , Social Services in Britain(1969). Health Serrires in Britain(1968). , Education in Britain (1966). ,Industry in Britain: Organisation and Production (1967), ,Nationalised Industries in Britain (1968). ,Industrial Training in Britain (1967). , Labour Relations and Conditions of Work in Britain (1967). , Trade Unionsin Britain (1969). Central Statistical Office1/oitthly Digest of Statistics. ,Economic Trends (monthly). ,Annual Abstract of Statistics (1970). ,National Income and Expenditure (1970). Commission on Industrial Relations, Report No. 9, First General Report (1970, Cmnd. 4417). Department of Employment, Department of Employment Gazette (monthly). , Time Rates of Wages and Hours of Work (annual). ,Family Expenditure Survey (annual). ,Report, H.M. Chief Inspector of Factories (annual). ,Industrial Relations Handbook (1961), ,A National Minimum Wage: An Inquiry (1969)., National Board for Prices and Incomes, Report No. 36, Productivity Agreements (1967, Cmnd. 3311j. ,Report No. 65, Payment by Results Systems (1968, Cmnd. 3627). , Report No. 83, Job Evaluation (1968, Cmnd. 3772). , Report No. 107, Top Salaries in the Private Sector and Nationalised In- dustries (1969, Cmnd. 3970). ,Report No. 132, Salary Structures (1969, Cmnd. 4187). , Report No. 161, Hours of Work, Overtime and Shiftworking (1970, Cmnd. 4554). Royal Commission on Trade Unions and Employers' Associations,1965-1968, Report (1968, Cmnd. 3623). ,Research Papers: No. 1, The Role of Shop Stewards in British Industrial Relations. No. 5, Trade Union Structure and Government, No. 6, Trade Union owth and Recognition. No. 7, Employers' Associations. No. 10, Shop Stewards and Workshop Relations.

' All of the publications listed in this section may be obtained through 11.M. Stationery Of- fice, London, or British Information Services, New York.

85 Books and Articles

Allen, G. C. British Industries and Their Organization. London: Longmans, 4th edition, 1959. Atkinson, A. B. Poverty in Britain and the ReformofSocial Security. Cambridge: Cambridge University Press, 1970. Bain, George Sayer. The Growth of White-CollarUnionism. London : Oxford Uni- versity Press, 1970. Bayliss, Frederic Joseph. British Wages Councils.Oxford : Basil Blackwell, 1962. Brown, E. H. Phelps. The Growth of British IndustrialRelations. London : Macmil- lan, 1959. ,with Browne, Margaret H., A Century of Pay:the Course of Pay and Pro- duction in France, Germany, Sweden, the United Kingdomand the United States, 1860-4960. London : Macmillan, 1968. ,"Wage Drift," Economica, November 1962. Caves, Richard E., and Associates. Britain's EconomicProspects. Washington, D.C. : Brookings Institution, 1968. Flanders, Allan, and Clegg, H. A., editors. TheSystem of Industrial Relations in Great Britain. Oxford: Basil Blackwell, 1954. Flanders, Allan, editor. Readings: CollectiveBargaining. Harmondsworth, Middle- sex, England : Penguin Books, 1969. Fox, Alan, and Flanders, Allan. "The Reformof Collective Bargaining: From Don- ovan to Durkheim," British Journal of Industrial Relations, July 1969. Goodman, J. F. B., and Whittingham, T. G.Shop Stewards ;,n British Industry.. London : McGraw-Hill, 1969. Lovell, J., and Roberts, B. C., A Short History ofthe TUC. London :Macmillan, 1968. McCarthy, W. E. J., "The Nature of Britain's StrikeProblem," British Journal of Industrial Relations, July 1970. Organization for Economic Cooperation and Development,Manpower Policy in the United Kingdom. Paris, 1970. Pelling, Henry. A History of British Trade Unionism.London: Macmillan, 1963. Pollard, Sidney. The Development of the BritishEconomy. London: Edward Arn- old, 2nd edition, 1969. Raynor, John. The Middle Class. London: Longmans, Green, 1969. Robinson, Derek. Wage Drift, Fringe Benefits andManpower Distribution. Paris : Organization for Economic Cooperation andDevelopment, 1968. Rose, E. J. B., and Associates. Colour and Citizenship: AReport on British Race Relations. London :Oxford University Press, 1969. Routh, Guy. Occupation and Pay in Great Britain,1906-60.Cambridge: Cam- bridge University Press, 1965. Thomson, David. England in the Twentieth Century,1914 -68.Harmondsworth, Middlesex, England : Penguin Books, 1965. Trades Union Congress. The History of the TUC,1868-1968.London : TUC/Ham- lyn, 1968. E conom;Veview, 1971. London, 1971. , Tn.:, 7: Congress: Structure and Development. London, 1970. Wedderburn, The Worker and the Law. Harmondsworth, Middlesex, Eng- land : Peng,. Juks, 1965.

86 Wigham, Eric L. Trade Unions, 2d edition. London:. Oxford University Press, 1968. Zweig, Ferdynand. The British Worker. Harmondaworth, Middlesex, England: Penguin Books, 1952.

87 The Division of Foreign Labor Conditions has also issued- Labor Law and Practice In:

Report number 'nth, Price 157 Afghanistan (1969) $0.35 344 Argentina (1968) .65 328 Australia (1967) .45 241 Austria (1963) .40 372 Belgium (1970) 1.00 218 Bolivia (1962) 337 Botswana (1968) 309 Brazil (1967) ..:, 264 Burma (1964) .40 227 Ceylon (1962) .35 339 Chile (1968) .70 217 Colombia (1962) .35 220 Costa Rica (1962) .30 343 Dominican Republic (1968) .50 242 Ecuador (1963) .35 280 El Salvador (1964) .30 298 Ethiopia (1966) .40 325 Greece (1968) ,--: .70 223 Guatemala (1962) .25 324 Guyana (1967) .35 244 Haiti (1963) .40 189 Honduras (1961) .30 371 Iceland (1970) .50 303 India (1966).. .50 336 Indonesia (1968) .50 276 Iran (1964) .40 221 Iraq (1962) _ .30 315 Israel (1967) .60 320 Jamaica (1967) .40 376 Japan (1970) .65 322 Jordan (1967) .45 361 Korea (1969) .50 381 Laos (1970) .60 304 Lebanon (1966) .50 297 Libya (1966). .35 274 Malaysia and Singapore (1965) .55 240 Mexico (1963) . .45 282 Morocco (1964) .45 258 New Guinea (1964) .50 321 New Zealand (1967) .60 265 Nicaragua (1964) .50 387 Norway (1971) 1.00 271 Pakistan (1964) .45 356 Panama (1970) .65 338 Peru (1968)__ .75 253 Philippines (1972) _ (in process) 269 Saudi Arabia (1964) .35 289 Spain (1965) .50

88 Report number Mt Price 285 Sweden (1964) .40 268 Taiwan (1964)__ .45 267 Thailand (1964) .40 319 Trinidad and Tobago (1967) .40 382 Trust Territory of the Pacific Is lai,ds (1970) . .40 294 Tunisia (1965) .40 239 Turkey (1963) .45 275 United Arab Republic (1965) .50 270 U.S.S.R. (1964) .50 392 Uruguay (1971) _____ . 1.00 386 Venezuela (1972) .70 327 Viet-Nam, South (1968) .40 250 Yugoslavia (1963) .70 393 Zaire, Republic of 1.00