industrial relations, 1964-69

WWII and the Transformation of Industrial Relations

Wartime Changes

• WWII ended the old cycle of boom and bust and created full employment.

• After 1945, both Labour and Conservatives committed to maintaining full employment, strengthening union bargaining power.

• Unions gained unprecedented influence in government:

  • Ernest Bevin (TGWU) became Minister for Labour (1940).

• Wartime cooperation created a consensus culture that lasted into the 1950s–60s.

Post‑War Consensus

• Unions involved in wage‑setting and industrial policy.

• Union leaders sat on boards of nationalised industries (e.g., Bank of England).

• Governments avoided making industrial relations a party‑political issue.

• Aim: minimise strikes through cooperation.

The Post‑War Dilemma

• Governments hoped unions would voluntarily restrain wage demands.

• Inflation spike in early 1950s ended this.

• Governments faced a choice:

  • Allow wage rises → inflation

  • Impose controls → union anger

• This dilemma shaped industrial relations for decades

Macmillan & Corporatism (1957–63)

Macmillan’s Beliefs

• One‑nation Conservative; committed to full employment and a mixed economy.

• Shaped by memories of 1930s unemployment in Stockton‑on‑Tees.

• Era seen as one of affluence.

• Famous line (1957): “Most of our people have never had it so good.”

Corporatist Experiments (1962)

Macmillan tried to unite labour, management and government to plan economic goals.

NEDDY

• Forum for unions and management to discuss long‑term economic development.

• No legal powers; relied on voluntary cooperation.

NICKY

• Advisory body giving guidance on “reasonable” pay rises.

• Unions largely ignored it due to:

• Member pressure for higher wages

• Rising consumerism in the 1960s

• Desire for improved living standards

Wilson’s First Government (1964–70): Rising Tension

Wilson’s Image

• Presented himself as working‑class, modern, relatable (beer, pipe, mac, Scilly Isles).

• Designed to appeal to unions.

Wildcat Strikes

• Unofficial strikes rose sharply in the 1960s.

• 90% of strikes were unofficial → TUC unable to control members.

• Days lost to strikes averaged 3 million per year; in 1968 rose to 4.7 million (“year of the strike”).

• Public increasingly saw shop stewards as militant and unreasonable.

Causes of Militancy

• Creeping inflation throughout the 1960s.

• Affluence benefited professionals, not many unionised workers.

• Inflation (1967–69) wiped out wage gains → resentment grew

‘In Place of Strife’ (1969)

Why Wilson Acted

• Conservatives (Heath) proposed union reform in 1968.

• Wilson wanted to pre‑empt them.

• Barbara Castle tasked with drafting legislation.

Key Proposals

• Government could order strike ballots before official action.

• 28‑day cooling‑off period for unofficial strikes.

• Legally binding decisions by industrial boards in inter‑union disputes.

• Illegal strikes could lead to fines or imprisonment.

Outcome

• Public supported it; unions opposed it.

• Labour split; James Callaghan opposed it.

• Wilson feared losing leadership → legislation scrapped.

• Union victory weakened Heath’s later attempts at reform