Industrial Relations under Conservatives:
Frequency of strikes= union hostility to Industrial Relations Act + Inflation.
Prices rose, workers sought to increase wages to prevent living standards lowering.
Inflation severe-
o 1971- Nixon ended fixed exchange rates which existed since WW2 = devalued $, making exports more
expensive in USA.
o 1972- £ floated freely – value determined by money markets. Poor industrial performance = expensive.
o Worldwide increase in commodity prices- raw materials, food, fuel.
o Heath aimed to stimulate growth by cutting taxes/increase in public spending.
-In 1972 budget = demand for goods/services pushed up prices.
The Miner’s Strike, January to February 1972
Sympathy for dangerous, dirty, poorly paid jobs.
47% pay increase- above gov wage policy.
8% offered National Coal Board.
Jan 1972- 2800k coal miners – STRIKE.
-Gov declared state of emergency + regular power cuts through country.
Feb - gov anxious for settlement+ appointed commission of inquiry = large pay increase.
Successful-
o Miners organised – Yorkshire’s miner leader Scargill – co -ordinated flying pickets.
-Miners armed to persuade others to join/support strike + travel to power stations + fuel deports to prevent
movement of coal by road.
o Violent incidents- Saltley coke deport in Birmingham – 15000 pickets – prevented supplies of fuel from leaving
deport. Ugly confrontations – not damage sympathy.
o Gov poorly organised to cope with strike + severe winter weather meant immediate impact on country’s power
supplies.
Effect on Government-
o Other workers to strike for pay increases.
o Successful strikes added to inflationary pressure.
o Gov looked weak in face of inion hostility.
o Emphasised failure of Industrial Relations Act.
The Oil Price Shock of 1973- 3-day week:
Heath’s U-Turn 1972: Oct 1973- Egypt and Syria vs. Israel – trying
Intention of reducing state intervention in industry to recover land in 1967.
and refused to rescue failing enterprises. Angry at Western support for Israel – cut
Jan 1971 – Rolls Royce faced bankruptcy = back supplies and quadrupled their prices.
nationalised regarded as vital to defence industry.
-Heath not allowed unemployment to increase as price Nov 1973-miners began overtime ban in pay
of reducing gov exp + explains U-turn in policy. claim exceeded gov’s limits.
Heath tried negotiating with leaders = got
Feb 1972- gov granted £35 million to Upper Clyde nowhere.
Shipbuilders – save 3k jobs.
April - Ministry of Industrial Development- aid to 13th Dec – State of Emergency = 3 day
industry in deprived regions of country as part of plan working week beginning 31st Dec.
to stimulate growth. -Electricity provided + businesses on 3 day
weeks.
Failed to secure agreement with unions over wages. -Save petrol = 50 mph speed limit.
Gov established policies in Nov 1972 – regulate both -TV turned off at 10:30pm.
prices/pay increases.
-Destroyed by oil price shock in Oct 1973. Further talks failed = Feb miners voted 81%
in favour of strike.
Frequency of strikes= union hostility to Industrial Relations Act + Inflation.
Prices rose, workers sought to increase wages to prevent living standards lowering.
Inflation severe-
o 1971- Nixon ended fixed exchange rates which existed since WW2 = devalued $, making exports more
expensive in USA.
o 1972- £ floated freely – value determined by money markets. Poor industrial performance = expensive.
o Worldwide increase in commodity prices- raw materials, food, fuel.
o Heath aimed to stimulate growth by cutting taxes/increase in public spending.
-In 1972 budget = demand for goods/services pushed up prices.
The Miner’s Strike, January to February 1972
Sympathy for dangerous, dirty, poorly paid jobs.
47% pay increase- above gov wage policy.
8% offered National Coal Board.
Jan 1972- 2800k coal miners – STRIKE.
-Gov declared state of emergency + regular power cuts through country.
Feb - gov anxious for settlement+ appointed commission of inquiry = large pay increase.
Successful-
o Miners organised – Yorkshire’s miner leader Scargill – co -ordinated flying pickets.
-Miners armed to persuade others to join/support strike + travel to power stations + fuel deports to prevent
movement of coal by road.
o Violent incidents- Saltley coke deport in Birmingham – 15000 pickets – prevented supplies of fuel from leaving
deport. Ugly confrontations – not damage sympathy.
o Gov poorly organised to cope with strike + severe winter weather meant immediate impact on country’s power
supplies.
Effect on Government-
o Other workers to strike for pay increases.
o Successful strikes added to inflationary pressure.
o Gov looked weak in face of inion hostility.
o Emphasised failure of Industrial Relations Act.
The Oil Price Shock of 1973- 3-day week:
Heath’s U-Turn 1972: Oct 1973- Egypt and Syria vs. Israel – trying
Intention of reducing state intervention in industry to recover land in 1967.
and refused to rescue failing enterprises. Angry at Western support for Israel – cut
Jan 1971 – Rolls Royce faced bankruptcy = back supplies and quadrupled their prices.
nationalised regarded as vital to defence industry.
-Heath not allowed unemployment to increase as price Nov 1973-miners began overtime ban in pay
of reducing gov exp + explains U-turn in policy. claim exceeded gov’s limits.
Heath tried negotiating with leaders = got
Feb 1972- gov granted £35 million to Upper Clyde nowhere.
Shipbuilders – save 3k jobs.
April - Ministry of Industrial Development- aid to 13th Dec – State of Emergency = 3 day
industry in deprived regions of country as part of plan working week beginning 31st Dec.
to stimulate growth. -Electricity provided + businesses on 3 day
weeks.
Failed to secure agreement with unions over wages. -Save petrol = 50 mph speed limit.
Gov established policies in Nov 1972 – regulate both -TV turned off at 10:30pm.
prices/pay increases.
-Destroyed by oil price shock in Oct 1973. Further talks failed = Feb miners voted 81%
in favour of strike.
