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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT)

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SECRET

C.P.(49) 42

25TH FEBRUARY, 1949

CABINET

COPY NO. 31

7

WAGE MOVEMENTS IN 1948

Memorandum by the Minister of Labour and National Service

Since my memorandum on wage movements in 1948 (C.P. (49) 28) was prepared there have been a number of developments of major importance which will have widespread consequences. I am accordingly setting these out in this supplementary memorandum so that my colleagues will be aware of them when considering the main memorandum.

2.

When account is taken of these developments, together with other less important wage increases granted and claims made, it is clear that no period of wages stability can now be anticipated. It seems likely that, following the increase in agricultural wages, a further general upward movement of wages during the next six or twelve months should be expected and that the qualified success of the White Paper since February, 1948, will not continue.

3.

Agricultural Wages Increase

The

Following the proposals, of the Agricultural Wages Board for an increase of 4/- in the minimum rate for men the minimum rate for agricultural workers will be 94/- a week. Government's decision as regards agricultural prices will mean that in fact a 4/- increase, (or proportionately higher increases) will be given to farm workers already receiving wages above the statutory minimum rate. The consequences of these increases in agricultural wages will be to increase the pressure generally for higher wages in other industries. It is still the attitude of workers in many other industries that their own wage rates should be substantially higher than the rates in agriculture and they will seek to maintain the relative position they had before this recent increase. In particular the agricultural increases are likely to be followed by claims in a number of rural industries and trades where there has in the past been a close relationship with agriculture, e.g. roadmen, local authority workers, land drainage, etc. The minimum rates in a number of these industries are below the new agricultural minimum rate of 94/- a week, e.g. land drainage 90/-, County Council roadmen 90/-. The County Council roadmen have already submitted a claim for increased wages. In addition a number of industries and services which employ a considerable proportion of workers in rural districts and provide for rural rates in their agreements will be directly affected. The most important in present circumstances is the Railway Service. The minimum rate on the railways in rural areas is at present 91/6d. and the recent increase in agriculture may well be used as an argu- ment when the present claim for an increase of 12/64 a week is belage of 48he Railway Staff National Triage114 of 48 claim is to be heard on 7th and 8th March.) Another service likely

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