I CONFIDENTIAL PRIME MINISTER I

---

CONFIDENTIAL

PRIME M I N I S T E R

In

p r e p a r a t i o n f o ro u r meeting

I attach

a note

prepared

o n Wednesday e v e n i n g ,

by o f f i c i a l s

C o n g r e s s a n d some t h o u g h t s a b o u t to

industrial

useful

relations

12 S e p t e m b e r ,

c o v e r i n g t h e Trades

t h e p o s s i b l e government

issues i n the future.

I t might

Union

approach



a l s o be

f o r u s t o d i s c u s s J o h n H o s k y n ' s p a p e r o n t h e f o l l o w - u p t o t h e

Trades Union Congress which

h e s e n t me u n d e r c o v e r

of hisletter

of

5 September.

I am c o p y i n g President, State

for

this

t o t h e C h a n c e l l o r o f the Exchequer,

the Secretary o f State f o rIndustry

t h e Lord

and t h e S e c r e t a r y o f

Trade.

jl

September

1979



CONFIDENTIAL

TRADES UNION CONGRESS 1979 AND

FUTURE GOVERNMENT APPROACH TO

INDUSTRIAL



RELATIONS

1. by

This note b r i e f l y

records

some o f t h e m a i n i m p r e s s i o n s

t h e debates and t h e d e c i s i o n s

2.

Above a l l e l s e ,

anxious

i t was e v i d e n t

t o demonstrate a u n i t y

math o f t h e General E l e c t i o n ; of

influence

industrial

action

traditional sion

wage r o u n d . action

3. no

had been w i d e l y

I t was a l s o

had a l i e n a t e d

only

f i l l

t h e vacuum.

i.

evident

With

the largest

that

unions

can p r o v i d e

and s o c i a l

of unity

approaches which might

basis

directed

was made

itself.

of a

social

of this

t h e power

t o enter

secretariat

cannot

were:­

by o u t r i g h t

rejection of

with

them

reasoned

voices t o

alternative

some e x e r c i s e o f

immediate

discussions with the

economic and s o c i a l p o l i c i e s administration

t o form t h e

and by i t s

o f t h e TUC's " C a m p a i g n f o r E c o n o m i c a n d S o c i a l the public

generally

to forestall

in

interests

o f members*

base



M r M u r r a y was a t p a i n s defence

e x p r e s ­

the effects

consequences

t o construct

have c a r r i e d

t o formulate

towards



t h e Labour

T h e r e w e r e no d i s s e n t i n g

o f a programme f o r a l a b o u r

endorsement

from

t o t h e Government's i n d u s t r i a l , economic,

b y t h e movement

Congress decided

come f r o m

was a c h i e v e d

policies.

a n d no a t t e m p t

Labour P a r t y

unionists

u n i o n movement h a s

a n d t h e TUC

the important

unanimous o p p o s i t i o n

(b)

the trade

These t r a d i t i o n a l l y

and

obligation

that



too that

maintenance

the view that

a t present

A ready display

heard

relationship

t h e consequences o f damaging i n d u s t r i a l

was a c c o r d e d

(a)

be

i n t h e a f t e r ­

T h e r e was no p u b l i c

o f the attempted



o n a 5 p e r c e n t w a g e c e i l i n g f o r t h e 1978/79

t h i s as background

energy,

many t r a d e

was

d i s t o r t e d by t h e media.

effective leaders.

that

!

support

o f t h e TUC

a special

the r e i t e r a t i o n o f the claim

to insist

Ready

that

o f t h e Labour Party.

than

i n seeking

the leadership

had been l o s t and c o n s c i o u s

Government had i n e v i t a b l y c o u r t e d action



and seek t o secure a r o l e

f o rt h e f a i l u r e

other

that

conscious

l a s t Winter

support

o f regret

contract,

government

with

taken.

provided

as w e l l

as union

c r i t i c i s m , that

could

be a c c o u n t e d

Advance"



members.

industrial

action

political.

CONFIDENTIAL

(c)

The

more m i l i t a n t t o seek

prepared

t o mount d i r e c t

Government's p o l i c i e s been encouraged moderate

they

An

by

a l l means, i n c l u d i n g

the

the

was

rejecting

them b o t h

by

judicial avoided

only

relations

to unions

support

under that

a proposal

could

be

affected

built by

economic the

the proposals

programmes, 7«

Of

Council

settlement industry

the

the

the

role

i s not

new

hours w i l l





for resistance

providing any

judged

unacceptable

General

be

Council

discussions no

with

possibility

a basis

f o r unions

advice

and

on

which

members

a series of motions

c o m p o n e n t s o f an

alternative

o f employment and

of

output

price

the N a t i o n a l

were



in

stabilisation,

publicly­

Enterprise

job creation

Government.

a motion

but be

requiring

to a s s i s t

l o s s o f pay there are

p r o v i d i n g the major

quickly.

2

as

now

the

unions

General

in

a means o f signs

that

more v i g o r o u s l y s o u g h t by

i n the n a t i o n a l engineering spread

unanimously

companies, maintenance o f

3 5 - h o u r week w i t h o u t

i t i s already

would

was

" S o c i a l wage", a s t r e n g t h e n i n g o f

on

members

General

from

investment,

a n a t i o n a l campaign

This

The

provides

policy

growth

s i g n i f i c a n c e was

minimum w o r k i n g and

economic

sectors, higher

urged

to i n i t i a t e

unemployment.

Winter

the



enacted.

a balanced

defence of

t o be

a

on



the

be

t h e r e can

the motion

of multi-national

greater

negotiating

in

of

t h e TUC

withdraw

that

These i n c l u d e d

private

industries, control

and

when

debate

s t r a t e g y , eg

the maintenance

Board,

evident

are

calling

w i t h what might

should

much

i m p l i c a t i o n s and

demands f o r u n i t e d s u p p o r t

p u b l i c and

owned

t h e TUC

i t was

passed unanimously.

and

current legislation.

agreement

I n the major

6.

faced

more



a motion

by

the p r a c t i c a l

on

to unions

decisions

compromise o r

c a m p a i g n and

have

demonstrations,

by

defeated.

legislation,

to

for resistance

S e c r e t a r i e s who

the Government's p r o p o s a l s

the Government, but of

o f mass

though opposed

narrowly

likely

i n circumventing

calling

General



even though

amendment c a l l i n g

and,

very

a publicity

assistance

necessary

by

Communist P a r t y

industrial

On

passed

seconded

already

the

consequences are

successful

attempted.

moved and

action against

outcome o f Congress

i n f l u e n c e s were

Council,

and

the

their

what

of

to

by

and

of

was

5-

i n f l u e n c e s i n t h e movement

difficulty

dispute.

combating

a

reduction

unions

i n t h e way

A concession

in

this of

a

that



CONFIDENTIAL

8.

Congress r e a f f i r m e d i t s o p p o s i t i o n t o any

was

t o be

expected,

including

f i n a n c e pay

increasing

9.

No

increases

cash

specific

limits

pay

Traditionally

t h e TUC

unions,

lished

time

the need

increases

The

RPI

to

judge

pay

was

for

any

The

or

concerned a g a i n s t begin

early major wise

10. op

As and

any

and

a

possible

w i t h each u n i o n

i t s members t o p a r t i c i p a t e .

decision

to give

services

i n the

11.

sympathetic taken

significance

for

pay

support

industrial

action of

soon t o reach

eg



of



e x p e r ­

level

group



with

latter,



o t h e r ­

to

to decide

opposing this

i t provides

devel



of

individually

will

their

they might

to

adopt

demonstration



whether

to

was

jobs

the and

to lead

f o r the

be

the

economies

coming

objectives

prepared





decisions



i n the



to



assessment

determine





is unlikely support

a

pressures

loss of

Unions

3

the

t h e CPSA,to r e s i s t

members.

detailed

the

of

reluctant

some s u c h

prospects

to which

the

that

for industrial

extent

be

together



RPI.

level

instructed

prove

the Congress

the



possible

f o r the

f o r example,

of

and

the

P e r h a p s more s i g n i f i c a n t

NUPE a n d

their

any

on

i n the

success or

was

sure

left

Although

action,

some u n i o n s ,

by

will

t o be

being

to unions

public services.

industrial

I t i s too

months.

the



e s t a b ­

forecast

For

to



grow t o the p o i n t t h a t

instruct

the

t o be

the p o s s i b i l i t y ,

i n prospect

full

left

however

determine

"going-rate".

General Council

i t i s not

not



campaign t o oppose c u t s in a l l " s o c i a l l y

including The

increase

index,

a

but



justification

settlement

of the

i s thought

c o u l d be

by

last

co-ordinate

w i t h unions

the

remain the

General Council

of action.

not

round.

a c t i o n which might

will

o f the

as

what

action will

such a c t i o n w i l l

already

itself

the

day

i n

costs.

I t i s not

f o r public expenditure,

such a p o s s i b i l i t y

any

guide.

determinants level

meant

critical.

national

for

as

perceived

expenditure,

of

r a t e s have been

be

desirable"

i n

the prospective

extent of i n d u s t r i a l

settlements

policy

s e t t l e m e n t s m u s t be

w h i c h was

s u b s e q u e n t movement

t o be

of i n d u s t r i a l

and

Congress w i l l

w i t h the

the

by

reflect

dismissed

important

coupled

limits

coming pay

minimum b a s i c

standards

to f u l l y

the

the

increases

f o r the

claims

target

d e c i s i o n by

most

t h e RPI,

that

cash



o f r e d u c t i o n s i n manpower

p u b l i c s e r v i c e s and

endorsed

by

as

I n debate however speakers were i n s i s t e n t

living

derisively

that

what m i g h t

although

i n pay

expectations

ienced.

accepts

o f wage r e s t r a i n t ,

provided

t o meet a l l f o r e s e e n

to time.

to defend

for

i n the

t a r g e t s were

constituent from

restraint

I t r e j e c t e d the approach

the p u b l i c sector. to

any

form







CONFIDENTIAL

to The

resist

t h e consequences

rhetoric

unions'

own

but

not

t o prove

t h e TUC,

and

i n a d e q u a t e l y l e d and u n i t e d

o f members'

can w e l l

support

have

policies. fully

o f many i n d i v i d u a l

and m a i n t a i n e d And

and

that

interests.

carefully

t h e TUC

confrontation i s s u e s ahead handled

on w h i c h

i s fearful

t h e movement a n d ,

has y e a r s

of office

or not, rather

weakness

o f t h e TUC

inherent

authority

be d e p l o y e d

Department

against

of

10 S e p t e m b e r

the

Employment 1979



ahead



c l i m a t e has

rather

of battle

The

The

will



t o be



helpful

many d i f f i c u l t

a l l need

which

t o be

establishment

might

prefer

be

released

less

than

that

the

t o await

the

whether acceptable i n

to confrontation. lessens

t o damage a n d



lines f o r

I t recognises

and would

challenges

t o be

more m o d e r a t e

pressures

than

including

Direct

are unlikely

adopted,

Government.



a

demonstrate

o f t h e movement's d i s a r r a y ,

t h a n be p u s h e d

and a b i l i t y



Government's

argument.

change

firmly.

being

increases

action

t h e s e l e c t e d means a r e

t o w i t h s t a n d them.

of the policies

consequences outturn

conscious



little

support,

of the

could thrive.

of the m i l i t a n t

of i t s ability

Government

as

to

members, needs

as a d r a w i n g

militancy

as w e l l

in

confident

trade union

i n securing fundamental

t h e TUC

general

t h e o b j e c t i v e s and

t o be v i e w e d

in

The

public

explained i n reasoned

sensitively

sought

i n

than

worsened.

o r t o i t sl e a d i n g p e r s o n a l i t i e s

and more l i k e l y

has

f o r the implementation

both

by i n d u s t r i a l

t h e r e are evident dangers from

o p p o s i t i o n t o t h e Government,

i n defence

expenditure.

of less significance

be a c h i e v e d

T h i s makes i t t h e more i m p o r t a n t t h a t

secured

to

Nevertheless,

i n which

improved

12. the

cost.

outright

a unity

i s likely

j u d g e m e n t s on what m i g h t

and a t what situation

o f Congress

of the curtailment of public

The

the risk

frustrate

apparent

t h a t i t s

could

come t o



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