(5) Trade Union reform and Foreign policy under Wilson's government 1964-70

Trade Union reform
1. Trade unions benefited initially from the Trade Dispute Act passed in 1965.
  1. This however, paved way to significant increase in workers and union strikes - among the most damaging was a six-week strike by the Seamen’s Union with another strike by the dockworkers a year later.
  2. This restored the legal immunity of trade union officials (could no longer be sued by the government for threatening to strike).
  3. Wilson responded positively by passing the Docks and Harbours Act (1966) and the Dock Labour Scheme (1967) respectively.
    1. It reorganised the system of employment in the docks in order to ensure a complete end to casual labour on the docks, effectively giving workers the security of their jobs for life.
2. In May 1966, Wilson declared a 30% pay rise for doctors and dentists which further fuelled union anger as national wages elsewhere were at a steady rise of 3%, similar to the line of inflation.
3. The National Insurance Act 1966
  1. This introduced supplementary earnings-related benefits for short-term sickness and unemployment, had far-reaching distributional consequences by "guaranteeing that insurance benefits rose at the same rate as wages in the late 1960s."
    1. Trade unions were supportive of the advances made in social protection by the Wilson government, which had a considerable impact on the living standards of the lowest quintile of the population
4. Barbara Castle to First Secretary of state
  1. The white paper
    1. She and Wilson worked on the White Paper ‘In Place Of Strife’ which aimed to establish an Industrial Relations Court where ministers would be given power to settle inter-union disputes.
    2. It also proposed to have a 28 day ‘cooling off’ period of conciliation before a strike could be actually carried out.
    3. The White Paper was heavily condemned by the Unions (and Home Secretary James Callaghan) and Ultimately Wilson and Castle had to withdraw all plans.
    4. A final attempt was made by Wilson on 18 June 1969 where he and the TUC met at Number 10 to discuss and come to an agreement that the TUC will ‘monitor strikes and labour disputes’.
Foreign policy
1. Cold war
  1. In June there was the outbreak Arab-Israeli war closed the Suez Canal again, which severally damaged the British trade in the region, it also drove up the price of oil due to restricted supplies.
  2. The communist insurgency inside Malaya was defeated; this meant that more British troops could be withdrawn from the region.
2. Defense Policy
  1. One of the longest running ministers in Wilson’s government (Denis Healey stayed in office for 6 years).
  2. Aimed to reduce defense commitments and expenditure throughout the world due to shrinking economy.
  3. The TSR2 (a British Nuke delivering plane) was scrapped; this showed that Britain’s nuclear commitments were reducing.
  4. Dispute US pressure the British navy would never produce another aircraft carrier and the budget and personnel inside the Territorial Army was also educed.
  5. After the devaluation crisis the reduced budget meant that Healey had to again cut corners wherever he could, this meant that the British F111’s production also had to be stopped.
  6. The annual GDP fell from 6% to 4% by 1971.
  7. Britain completely withdrew from Asia; all Britain’s troops were to leave by 1971.
3. France’s economic policy
  1. De Gaulle again vetoed Britain’s entry to the EEC.
  2. No production quotas or industry targets
  3. ‘Indicative planning’ was where the state directed money into certain industries, regions and products
  4. Meant that the banks invested money into factories and techniques.
  5. The effect of this was that it transformed the war-ravaged country of France into one of the leading industrial powers inside Europe.
  6. Meant that France’s road and rail was one of he most modern in Europe.
  7. The town planning seemed efficient and modern compared to Britain’s messy planning.
  8. The investment into technology meant that in many ways France was superior to Britain.
  9. The top of France’s political system were elite centralists and young technocrats (thanks to their new education system).

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(5) Trade Union reform and Foreign policy under Wilson's government 1964-70

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