HC Deb 24 October 1966 vol 734 cc640-1
50. Mr. Bruce-Gardyne

asked the Minister of Labour what estimate he has made of the impact of the wages standstill on productivity agreements in industry.

Mr. Gunter

One of the features of the standstill policy which the Government have especially regretted has been the temporary hold-up of a number of productivity agreements some of which included provisions of unquestioned value. I do not think, however, that there has been any permanent setback, and I am quite sure that it was essential to the success of the initial phase of the standstill policy as a whole that it should be operated with no exceptions.

Mr. Bruce-Gardyne

That is all very fine, but has the Minister's attention been drawn to a recent case of a firm where a productivity agreement involving the elimination of over-manning of 25 per cent. in one department had to be cancelled because the firm felt obliged to abandon the productivity wage award under the terms of the "freeze"? Is not this precisely what was bound to happen? What sort of contribution does this make to the solution of our underlying problems?

Mr. Gunter

I am sorry, but I did not quite catch the hon. Gentleman's last three sentences; I gathered its intent, however. It is true—and I have said that I regret it—that it was necessary for six months to interfere with real productivity agreements. But I have my doubts about many of them. I have read about the one the hon. Gentleman mentions in the Press, and inquiries are now being made.

Mr. David Steel

Would not the right hon. Gentleman agree to continue productivity agreements already partially implemented in particular factories, for otherwise grave injustice results as between one department and another? Should not such agreements go ahead where success is proved beyond doubt?

Mr. Gunter

I have given close attention to each and every productivity agreement brought to my notice, but the dilemma faced by the Government on 20th July was that between 6 million and 7 million workers had forward commitments, few of them on a productivity bargaining basis. It was extremely difficult to ask that productivity agreements should go forward while others were held back. But productivity bargaining of the right kind which really causes productivity increases must have priority of treatment.