§ 20. Sir C. Osborneasked the Minister of Labour how many workers have their wages and/or salaries tied to the cost of living, and in what industries; since prices are increasing faster than production, if he will take steps to end the position which enables one group of workers to benefit at the expense of others; and if he will make a statement.
§ Mrs. Shirley WilliamsAbout 2 million manual workers. The principal industries are construction, iron and steel manufacture, printing, furniture manufacture, footwear manufacture and hosiery. The White Paper on Prices and Incomes Policy issued in April 1965 stated that less weight should be given to this factor in future in the determination of pay. An agreement reached in November 1965 in the building and civil engineering industries provided for discontinuance of the present cost of living agreements after February 1968.
§ Sir C. OsborneHaving regard to the fact that since October 1964 national productivity has increased by only 1 per cent. and the cost of living has gone up by nearly 10 per cent.—[HON. MEMBERS: "No."]—I am stating the case—is it not grossly unfair that 2 million workers should get this advantage over other workers, and will the hon. Lady try to see that this inflationary factor is taken out of the economy?
§ Mrs. WilliamsWe do not wish people to suffer as a result of an increase in the cost of living, and earnings have kept ahead of increases in the cost of living; but as a proportion of the total wages bill increases over many years, dating back to the 1956 cost of living agreements have been only a very small part of this total, and, as I have already pointed out, in one very large industry they have now been abandoned.