TNAG-0651-FCO40-799-Interests-of-UK-Labour-Party-and-trade-unions-in-labour-affa-1977 — Page 23

CONFIDENTIAL

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After some heart searching it has been decided to put our restructuring proposals into effect, to pay the new rates at once to those who resume work and at the same time announce an independent board of inquiry into the fairness of the award. Professor Willoughby has agreed to undertake the inquiry and we shall be prepared to amend the award if its findings convince Finance Committee that this is justifiable.

5.

We are convinced that we could not act more fairly than this in the absence of any laid down procedures, agreed with the Staff Side, for the handling of disputes within the Civil Service. However, there are likely to be a number of residual problems on which we need your advice.

6. It is possible that some of those officers who are already taking industrial action may refuse to resume their full duties until the inquiry is complete in which case we shall simply continue to pay them at the old rates. However, there is also the possibility that the members of some staff associations, or some individuals, may continue industrial action after the final decision on the award has been taken. If they do, we feel we would have no alternative but to take disciplinary action against them under CR 57 with a view to dismissal. The misconduct alleged would be failure to obey lawful orders. Would you please confirm that in these circumstances you would consider it appropriate to use CR 57 in this way and for this purpose?

7.

Arising out of our experience with this dispute, it is also clear that we need the power to suspend without pay officers who, in pursuance of a trade dispute, effectively cease to perform all or part of their normal duties and are hence in breach of contract. We have a CSR 610 (a copy of which is attached) which on the face of it enables us to withhold salary from officers who perform their duties only partially but this has

FLAGS BOC already been the subject of an unsuccessful court action

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دریا و کمال حقا

CHILIL21

HILL 2127/548/23 HILLL016/5

arising from the Demarcators' dispute on which Alan Scott reported in his telegrams Nos 1075 and 1301 of 12th April and 3rd May 1976 to Lawrence O'Keefe and 2in paragraph 15 of his quarterly report forwarded to you under cover of his letter of 11th February 1977. The effect of the court case is that we can no longer use CSR 610 without incurring the risk of another unsuccessful court action and appearing to act in defiance of the Supreme Court. We are left, therefore, with a situation in which civil servants can continue indefinitely to receive full pay for doing no work,

/which...

CONFIDENTIAL