Industrial relations, 1951-1990
1951-64
Until the 1950s, the unions had been happy with full employment and their leaders were
essentially moderates
Post-war consensus promotes idea of strong unions & full employment
By 1955 it was estimated that full employment had been achieved, with only 200,000
unemployed
1956 : Left-winger, Frank Cousins, became leader of the TGWU (Transport and General
Workers Union) → one of the most powerful unions
Led fierce union opposition to Gaitskell over Britain’s nuclear weapons
Many Labour left-wingers join the CND
1958 : Frank Cousins leads unsuccessful bus strike against Macmillan government
1959 : Labour Party conference in Blackpool. Gaitskell suggests abolishing Clause IV
(commitment to nationalisation)
Opposition from left wing/union leaders fierce
Backed down without putting it to a vote
Strong Labour divisions - Bevanites wanted large trade unions to have the major voice in the
shaping of party policy
Gaitskell resisted TU domination & left’s drive toward unilateralism
Labour Party conference in Scarborough 1960 : Cousins bitterly opposed Gaitskell’s
leadership of the Labour movement, specifically over nuclear weapons
Gaitskell makes an emotional speech trying to convince the conference to reject UND
Lost the vote in 1960 but succeeded in overturning that result a year later
Cousins had led the unions into taking left-wing positions hostile to the party leadership →
These divisions carried on into the 1970s and 1980s
February 1962 : Macmillan sets up National Economic Development Council (‘Neddy’)→
Attempt to get economic cooperation between government, employers and unions.
Responsible for long-term planning
National Incomes Commission (‘Nicky’) (1962) : Keeps an eye on wages and prices
Trade union reaction to women & immigration :
TUs tended not to support women as they believed it would lower wages
Believed it would be damaging to children
Were unhappy about black people coming in to take jobs, possibly at lower rates of pay
Union leaders lobbied to keep out black workers
1964-70
, Opinion polls in the early 1960s show that nearly 60% of people said they had a favourable
view of unions
1964 : Wilson makes Frank Cousins minister of technology
National Plan drawn up by department of economic affairs under George Brown → By 1955 it
was estimated that full employment had been achieved, with only 200,000 unemployed
Wilson’s stance → Committed to idea that inflation & BoP deficit = major threats to economic
progress
As early as 1963, warned that the party, TUs and employers would have to be more realistic
in their approach to wage demands and settlements
1965 : Prices & Incomes Board to keep down inflation (relies on TUs but angers them)
Ineffective
TWU opposed from early stage to government’s attempts at wage control
After failure of Brown + devaluation, wage control more consistently opposed by TUs
1966 : Sterling crisis (caused in part by long & bitter strike by the National Union of Seamen in
response to prices & incomes policy)
Government defeat the strike but many on the left shocked by Wilson’s critical attitude
towards the strikers
Cousins resigns over the incomes policy - relationship between government and unions
breaking down
1967 : Outbreak of war in the Middle East affects oil supplies; Major national dock strike in
August affects BoP
November - Devaluation & IMF loan → Wilson blames the unions. Said that the government
had begun to surmount the economic problems only to be “blown off course by the seven
week’s seamen's strike”
Set up DEA which created National System of Economic Planning Councils
This established voluntary agreement about wages and prices with industrialists, trade union
leaders and civil servants - secure restraint needed to prevent inflation rising which the
government would then need to stop with controls
TUs unhappy about devaluation
Increasing no. of wildcat strikes
Rejected Wilson’s attempt to lay most of the blame for the financial situation on TUs
1969 : In Place of Strife
Barbara Castle believed strongly in powerful TUs, but believed they needed to act responsibly
Storm of protest from powerful trade union leaders, e.g. Jack Jones, supported by James
Callaghan (Home Secretary) and at least 50 Labour MPs ready to rebel
Callaghan stressed dangers of alienating the TUs, which still provided the bulk of Labour’s
funds
Wilson gives in
1951-64
Until the 1950s, the unions had been happy with full employment and their leaders were
essentially moderates
Post-war consensus promotes idea of strong unions & full employment
By 1955 it was estimated that full employment had been achieved, with only 200,000
unemployed
1956 : Left-winger, Frank Cousins, became leader of the TGWU (Transport and General
Workers Union) → one of the most powerful unions
Led fierce union opposition to Gaitskell over Britain’s nuclear weapons
Many Labour left-wingers join the CND
1958 : Frank Cousins leads unsuccessful bus strike against Macmillan government
1959 : Labour Party conference in Blackpool. Gaitskell suggests abolishing Clause IV
(commitment to nationalisation)
Opposition from left wing/union leaders fierce
Backed down without putting it to a vote
Strong Labour divisions - Bevanites wanted large trade unions to have the major voice in the
shaping of party policy
Gaitskell resisted TU domination & left’s drive toward unilateralism
Labour Party conference in Scarborough 1960 : Cousins bitterly opposed Gaitskell’s
leadership of the Labour movement, specifically over nuclear weapons
Gaitskell makes an emotional speech trying to convince the conference to reject UND
Lost the vote in 1960 but succeeded in overturning that result a year later
Cousins had led the unions into taking left-wing positions hostile to the party leadership →
These divisions carried on into the 1970s and 1980s
February 1962 : Macmillan sets up National Economic Development Council (‘Neddy’)→
Attempt to get economic cooperation between government, employers and unions.
Responsible for long-term planning
National Incomes Commission (‘Nicky’) (1962) : Keeps an eye on wages and prices
Trade union reaction to women & immigration :
TUs tended not to support women as they believed it would lower wages
Believed it would be damaging to children
Were unhappy about black people coming in to take jobs, possibly at lower rates of pay
Union leaders lobbied to keep out black workers
1964-70
, Opinion polls in the early 1960s show that nearly 60% of people said they had a favourable
view of unions
1964 : Wilson makes Frank Cousins minister of technology
National Plan drawn up by department of economic affairs under George Brown → By 1955 it
was estimated that full employment had been achieved, with only 200,000 unemployed
Wilson’s stance → Committed to idea that inflation & BoP deficit = major threats to economic
progress
As early as 1963, warned that the party, TUs and employers would have to be more realistic
in their approach to wage demands and settlements
1965 : Prices & Incomes Board to keep down inflation (relies on TUs but angers them)
Ineffective
TWU opposed from early stage to government’s attempts at wage control
After failure of Brown + devaluation, wage control more consistently opposed by TUs
1966 : Sterling crisis (caused in part by long & bitter strike by the National Union of Seamen in
response to prices & incomes policy)
Government defeat the strike but many on the left shocked by Wilson’s critical attitude
towards the strikers
Cousins resigns over the incomes policy - relationship between government and unions
breaking down
1967 : Outbreak of war in the Middle East affects oil supplies; Major national dock strike in
August affects BoP
November - Devaluation & IMF loan → Wilson blames the unions. Said that the government
had begun to surmount the economic problems only to be “blown off course by the seven
week’s seamen's strike”
Set up DEA which created National System of Economic Planning Councils
This established voluntary agreement about wages and prices with industrialists, trade union
leaders and civil servants - secure restraint needed to prevent inflation rising which the
government would then need to stop with controls
TUs unhappy about devaluation
Increasing no. of wildcat strikes
Rejected Wilson’s attempt to lay most of the blame for the financial situation on TUs
1969 : In Place of Strife
Barbara Castle believed strongly in powerful TUs, but believed they needed to act responsibly
Storm of protest from powerful trade union leaders, e.g. Jack Jones, supported by James
Callaghan (Home Secretary) and at least 50 Labour MPs ready to rebel
Callaghan stressed dangers of alienating the TUs, which still provided the bulk of Labour’s
funds
Wilson gives in
