§ 18. Sir C. Osborneasked the Secretary of State for Employment and Productivity how many wages and salaries are tied to the Cost-of-Living Index by industrial agreement; in what trades; and whether these automatic increases will be rejected under the incomes and prices policy.
§ The Under-Secretary of State for Employment and Productivity (Mr. Harold Walker)About 450,000 workers are at present covered by these agreements, the largest numbers being in iron and steel, carpets, footwear, textiles and newspapers. Where the agreement was concluded before 20th March, 1968, increases are not subject to the current policy for employment incomes.
§ Sir C. OsborneIn view of the rapidly increasing cost of living due to devaluation, is it not unfair that any group of workers should be able to contract out 844 of the Government's general policy of prices and incomes?
§ Mr. WalkerThe Government's policy is to ensure that people do not contract out in the fashion suggested by the hon. Gentleman. The White Paper, Cmnd. 3590, says:
Pay increases based on a rise in the cost of living are not due under the criteria, and should not be conceded.The reason for this is that the cost of living rises for us all. It would be wrong if some people, because of a grievance, were able to contract out, as the hon. Gentleman says.