Page 352. distributive trades; alternatively, if the retailers, as is alleged, would find it impossible to carry the increased wages, these might lead to large-scale dismissals and consequent unemployment of workers in retail distribution.
8. The foregoing paragraphs set out the arguments in favour of refusing to confirm the proposals. There are, however, equally strong arguments in favour of confirming the proposals.
9. Refusal to confirm the unanimous proposals of a Wages Council is a drastic step which, in my view, should be taken only if the national interest so requires. Wages Councils are the machinery established by Parliament to settle conditions of employment in those trades or industries where voluntary joint machinery is either entirely lacking or is not sufficiently strong for the purpose. There is no doubt that Parliament would expect that, in general, the Minister of Labour would confirm the unanimous proposals of a Wages Council. Moreover, to refuse to confirm might well deal a serious blow at the authority of the statutory wage-regulating machinery as a whole and might impair public confidence in that machinery. Worse still, we should be bringing the Government into the contro- versial field where actual rates of wages are fixed, a situation which we have always been at pains to avoid. Against this it must be admitted that, if it was intended that all proposals submitted by Wages Councils should be automatically applied, it is difficult to see why Parliament should have brought the Minister of Labour into the matter at all; and, indeed, as my colleagues will be aware from this paper, I not infrequently refer proposals back to the Wages Councils both on questions of wages and on other matters.
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10. As regards the merits of the various proposals, Appendix B is a state- ment showing the rates proposed by the different Wages Councils and now under consideration. It will be seen that, with the exception of Retail Bookselling and Stationery, none of the rates for men outside London exceed £5 a week. The rates for men shop assistants in the food trades in London are 92s. at age 21, rising to 102s. at age 24, and for men "other workers" 90s. at age 21, rising to 968. at age 24. In the case of the drapery trades the London rates for men shop assistants are 93s. at age 21, rising to 104s. at age 24, and for men "other workers" 90s. at age 21, rising to 96s. at age 24. I do not regard any of the proposals as providing excessive wages for the workers in question and the present J.I.C. rates were in most cases settled two years ago. The observations of the President of the Board of Trade, to which I have referred in paragraph 6, need, I feel, to be weighed these considerations. For myself I could not subscribe the acceptance of these proposals would be unreasonable; and I cannot agree that the increases proposed are in conflict with the principles set out in the White Paper on Personal Incomes, Costs and Prices. Accordingly I feel that a refusal to confirm the pro- posals on the general economic grounds I have mentioned above would be regarded as discrimination against a particular group of workers.
against the backgased costs of distribution consequent upon
11. I have discussed these problems with representatives of the T.U.C. They have informed me that in their view confirmation of the proposed increases would not prejudice their policy aimed at achieving stability in the wages field. This policy has always envisaged scope for increases in wages below a reasonable level (as did the White Paper) and it is clear from my discussion that the T.U.C. would feel that existing wages in the retail distributive trades are in that category and that the proposed increases would not conflict with the principles of the White Paper. The representatives of the T.U.C. expressed the opinion in fact that, in defending, at Congress at Bridlington in September, the Government's policy and their own support of it, they would be more embarrassed if I refused to confirm these proposals than if I did confirm them.
12. Whichever course we adopt will cause difficulty and will no doubt be severely criticised. Considerations of fairness are, in my view, in favour of con- firmation, and after weighing carefully the general economic arguments I am satisfied that I ought to confirm the proposals, subject to any modifications which the Councils concerned may suggest in those proposals which have been referred back to them.
MinistryPotatgurand National Service, S. W.1, 8th August, 1949.
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