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 repre- sentatives. 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 engi- neering 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