HC Deb 22 May 1969 vol 784 cc647-8
26. Mr. Higgins

asked the Secretary of State for Employment and Productivity in how many cases in which productivity agreements have been held to justify increases in wages and salaries in excess of the norms of the National Board for Prices and Incomes, increased payments have been made before productivity has increased; in how many cases additional payments have been made after productivity has increased; and what are the total figures for increases in incomes and productivity in these two circumstances.

15. Earl of Dalkeith

asked the Secretary of State for Employment and Productivity in how many pay settlements during the last 12 months increases in excess of the norm were approved on the grounds of increased future productivity; and in which of these cases the projected increase in productivity has been achieved.

Mr. Harold Walker

Since the present phase of the policy began in March, 1968, my Department has dealt with nearly 2,000 productivity cases of all kinds. Most were negotiated at the local level and, in general, productivity was expected to increase concurrently with pay. The average increase in pay under productivity deals at the national level was 4.2 per cent. In 10 cases the increases exceeded 3½ per cent. per annum and in two of these, part of the increases involved were based on past productivity. More detailed information would have to be specially extracted at a cost disproportionate to its value.

Mr. Higgins

Would not the Minister agree that the fact that many productivity payments have been made before productivity has increased, particularly in the nationalised industries, has been one of the main inflationary pressures in the economy and one of the main reasons why the cost of living index has gone up by 1.4 points today?

Mr. Walker

I cannot accept the conclusion the hon. Gentleman draws. It is true that certain productivity deals are concluded before the benefits are seen, but we and the National Board are absolutely convinced, because of the changes involved, that the productivity increases will come. Certainly within the last 12 months there has been proof of that.

Mr. Scott-Hopkins

Has the attention of the hon. Gentleman been drawn to the road haulage industry where many small agreements have resulted in rises of over 30 per cent. without any comparable increase in productivity?

Mr. Walker

I have answered Questions on this subject in the past. We are looking at some of the agreements and our regional manpower and productivity people are examining carefully the effects of some of these agreements.

Mr. Ogden

Will my right hon. Friend consider referring managers' and directors' salaries to see if their productivity has increased before their salaries increased?

Mr. Walker

The National Board has a reference before it at present to look into salaries of that kind.

Mr. R. Carr

What evidence is there of increased productivity going hand in hand, for example, with increases granted to tally clerks?

Mr. Walker

If the right hon. Gentleman will take the opportunity to go to London Docks, as I do, he will see dramatic changes taking place in operations in the port and will be convinced that this is a bona fide productivity deal. There is not the slightest doubt that figures for the last 12 months prove that there has been a dramatic upsurge in productivity, for part of which we must give credit to the policy.