Middlesex University Research Repository An open access repository of Middlesex University research http://eprints.mdx.ac.uk Cowling, Alan George (1977) Studies in a local labour market with special reference to pay and wastage. PhD thesis, Middlesex Polytechnic. [Thesis] This version is available at: https://eprints.mdx.ac.uk/6536/ Copyright: Middlesex University Research Repository makes the University’s research available electronically. Copyright and moral rights to this work are retained by the author and/or other copyright owners unless otherwise stated. The work is supplied on the understanding that any use for commercial gain is strictly forbidden. A copy may be downloaded for personal, non-commercial, research or study without prior permission and without charge. 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See also repository copyright: re-use policy: http://eprints.mdx.ac.uk/policies.html#copy MX 7227323 2 •lini íesex University Librar ; Burroughs idon -'4 ¿TT jr . • STUDIES IN A LOCAL LABOUR MARKET WITH SPECIAL REFERENCE TO PAY AND WA STAGE by Alan George Cowling Submitted for the degree of Doctor of Philosophy to the City University, based on research conducted in the Graduate Business Centre. February 1977 I r SVtv ! L, -M'ERSITY ! LIBRARY Accessi'r. No. Class No. Special Collection TAB LE O F C O N T E N T S Page Abstract 1 Chapter 1 - Introduction 2-8 Chapter 2 - A review of local labour market studies concerning manual workers in manufacturing industry, paying special attention to research findings on the topics of pay, labour wastage, and définition of markets. 9-54 Chapter 3 - Method of Enquiry 55-69 Chapter 4 - Towards a définition of the local labour market- 70 - 107 Chapter 5 - The inter-plant wage structure 108 - 146 Section I - Interplant Range and variation in earnings. 109 - 126 Section II - Interplant pay hierarchy 127 -.131 Section III - The pattern of pay Differentials 132 - 135 Section IV':: - The influence of local employaient conditions on inter plant pay differentials. 136 - 139 Section V - National and local changes in pay and differentials during 1970-75 compared. 139 - 146 Chapter 6 - The internai pay Structure 147 - 164 Chapter 7 - Results of the local labour market labour wastage project. 165 - 191 Section I - Labour Turnover 167 - 180 Section II - Completed length of service 180 - 189 Section III - Discussion 190 - 191 Chapter 8 - Labour turnover, unemployment and inter firm earnings differentials within the context of the local labour market. 192 - 218 Section I - Labour turnover in relation to location employment levels. 195 - 206 Section II - Labour turnover and standard hourly earnings- 207 - 213 Chapter 9 - The accuracy of information concerning inter firm pay differentials heId by workers within the local labour market- Chapter 10 - In Conclusion: a review of the propositions put forward in the first chapter of this dissertation, in the light of the research and discussion presented in subséquent chapters, and a considération of their relevance to the subject áreas of Industrial Relations and personnel Management. Appendices Références LIST OF TABLES AND ILLUSTRATIONS Page 1-1 - Location of Borough of Brent in Greater London 3 3.1 - The 20 Participating Firms 61 3.2 - Average numbers'employed in the 8 manual occupations 1970-74 62 4.1 - Residential location of workers in Plant A -78 4.2 - Residential location of workers in Plant B 79 4.3 - Residential location of workers'in Plant D 80 4.4 - Distance of residence from work in relation to age 85 4.5 - Distance of residence from work in relation to maritai status and sex 86 4-6 - Distance of residence from work in relation to skill 87 4.7 - Distance of residence from work in relation to nationality 89 4.8 - Location of firms featured in pay survey 92 4.9 - Dendogram of socio economie status of residents, N.W. London 95 4.10 - wards in N.W. London in socio economie categories A, B and C 97 4.11 - The locai labour market area for firm A 98 4.12 - Working population, L. Boroughs of Wembley and Willesden lOO 4.13 - London Borough of Brent 101 4.14 - Locai unemployment levels at locai and national levels 102 4.15 - % of recruits moving to jobs within 5 miles of their previous employer (MacKay) 106 5-1 - Inter plant earnings differentials - range Ilo 5.2 - Average pay range for each job 1969-75 113 5.3 - Average pay range ali 8 jobs on 6 dates 1969-75 116 Page 5.4 - Average coefficient of variation for each job 1969-75. 116 5.5 - Average coefficient of variation for 8 jobs on 6 occasions 1969-75. 116 5.6 - Proportion of firms with médian standard hourly earnings. which lie within 10% of the sample mean. 118 5.7 - % of firms paying médian standard hourly rates lying within % of sample mean for each job, included within the 6 pay surveys. 118 5.8 - % of jobs paying within 10% of job sample mean on occasion of each pay survey. 118 5.9 - Ranges reported by Robinson- 121 5.10 - A comparison of findings by MacKay and N.W. London survey. 121 5.11 - Average rnak order number of "pay leaders'. 127 5-12 - Average rank order number of 'pay laggards *. 128 5.13 - Rank order corrélation of standard earnings. 129 5.14 - Relative change in differentials between 8 jobs 1969-75. 133 5.16 - Relationship between local unemployment and the spread of earnings. 137 5.17 - Index of average médian standard hourly earnings 1970-75. 141 5-18 - National médian gross" hourly earnings, full-time manual workers, November 1975. 142 5.19 - Change in differentials, average hourly earnings of selected manual occupations at the national level. 142 6.1 - Médian Standard Hourly Earnings, firms participating in both 1970 and 1975. 149 6.2 - Intra-firm standard hourly earnings, ranges analysed by occupation 1970 and 1975. 152 6.3 - Method of payment to manual workers in 10 firms sub sample. 155 6.4 - Internai pay relativities in Robinson.'.s L.L.M.2. 159 page 6-5 - Average earnings of toolmakers, fitters, and semi-skilled process workers relative to labourers. 160 7.1 - Labour turnover - League table of 8 manual jobs. 169 7.2 - A comparison of the labour turnover of male and female process workers 1970-74, aggregated data. 173 7.3 - A comparison of the labour turnover of male and female process workers 1970-74, separated data. 174 7.4 - Labour turnover in 1974 for 9 firms- 176 7.5 - A comparison of male and female process workers. 177 7.6 — Completed length of service 1974, analysed by job. 182 7.7 - Completed length of service 1974, aggregated data. 185 7-8 - Leavers 1974 plotted on log paper. 187 7.9 - C.L.S. firm A, 1970-74- 188 7.10 - C.L.S. firm G, 1970-74. 189 8.1 - Registered unemployed, Hendon, Wembley and Willesden- 197 8.2 - Unemployed and notified job vacancies in L.L.M. 198 8.3 - Male unemployed and labour turnover male process workers. 199 8.4 - Female unemployed and labour turnover female process workers- 200 8.5 - Separation rates and local unemployment levels. 201 8.6 - Correlation between pay and separation rate 1970-74. 208 Method I 208 8.7 - Method II 209 8.8 - Reasons given for leaving, manual workers, firm B, 1974. 217 9-1 - A comparison of the rank order in the hourly earnings of female production workers in 5 firms in N.W. London and the perception of the rank order established by survey. A C K N O W L E D G E M E N T S For help and encouragement given by my research supervisor, Sydney Kessler. For support provided by the Dean and colleagues at the Resource centre for Management and Business Studies at Middlesex Polytechnic, and the late Arthur Syme. For the patience of wife and family, and a promise that the house will now be painted. For information provided by personnel managers in the N.W. London Area and the Department of Employaient... For secretarial assistance provided by Angela Baird. Powers of discrétion are granted to the University Librarian to allow the thesis to be copies in whole or in part without référence to the author, in accordance with University régulations. This permission covers only single copies made for study purposes, subject to normal conditions of acknowledgement. ABSTRACT Research was carried out into the structure of inter and intra plant standard weekly earnings and the labour wastage of workers in eight manual occupations employed by a sample of 20 manufacturing plants located in North West London covering the period Autumn 1969 to Spring 1975. Information on travel to work patterns and the accuracy of information concerning pay rates within the local labour market area was also investigated.