§ Mr. Biffen
asked the Secretary of State for Employment and Productivity what is the estimated percentage increase for rates and earnings arising from the recent offer by Perkins Engines Limited to their 5,600 manual employees; what productivity conditions were involved in the offer; and if it conformed to the Government's income policy.
It is estimated that the offer, which has not been accepted by the unions, would have given an average increase of 6.05 per cent. on rates and 6.09 per cent. on earnings. In return the company were asking for a number of productivity concessions designed to improve flexibility of labour; the introduction of work study in areas where it had not previously been applied, and changes in the procedure agreement for processing grievances. At this state the proposals have not been formally referred to my Department under Incomes Policy early warning arrangements, and it is not204W yet possible to say whether Government Incomes Policy requirements are satified.