CAB129-37 — Page 698

Page 698

350

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

SECRET

C.P.(49) 238

22ND NOVEMBER, 1949

CABINET

COPY NO.31

RETAIL TRADE WAGES

Memorandum by the Minister of Labour and National Service

of

In C.P.(49) 173 of 8th August I submitted to the Cabinet the question of approving the wages regulation proposals the eight Wagos Councils for the retail distributive trades. Originally, at their meeting on 12th August (C.M.(49) 52nd Conclusions, Minute 1), the Cabinet decided that these proposals should not be confirmed and invited me to bring before them any revised proposals that might be submitted in future. Subsequently, at their meeting on 29th August (C.M. (49) 53rd Conclusions, Minute 2), the Cabinet reversed their earlier decision and authorised me to approve the proposals at intervals over the next few weeks. Following this revised decision, I made Wages Regulation Orders to give effect to the proposals of six of the Wages Councils..

The Retail Drapery, Outfitting and Footwear Trades ages Council (Great Britain), one of the two outstanding, have now re-submitted their proposals without change in the rates. The employers' side, however, made strong representations that the cut in retailers' margins recently imposed by the President of the Board of Trade made it impossible for them to agree any increase of wages involved in the proposals. In the circumstances I thought it necessary to see separately all three olements of the Wages Council, the employers' side, the Trade Union side and the independent members.

2.

3.

At these discussions, the employers' representatives Opposed confirmation of the rates proposed, while the workers' representatives equally pressed for confirmation. The Chairman, on behalf of the independent members, represented to me that the two sides of the Council had agreed the rates in June and the independent members felt that they were reasonable having regard to changes in the cost of living. Further, the ratos were comparable with those fixed for other retail trados, and the indo- pendent members felt that all the Wages Councils should be dealt with on a comparable basis and that it would be unreasonable to approve all but this one. (There would in fact be two, as explained below.) The independent members felt that the implementation of the proposals would not cause serious

isturbance to the machinery of distribution, and that, on the other hand, in view of the comparable rates being paid in other retail trades, there would be disturbance if the proposals were not confirmed.

4.

Having heard the views of the two sides and having regard particularly to the views expressed by the independent members, I am in no doubt that in normal circumstances this would be

question resus, However, whether the Cabinet 208 608 of 197

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