§ 23. Sir C. Osborneasked the First Secretary of State for Economic Affairs how many wage and salary increases have been granted since 26th October, 1964; how many workers were affected; approximately what is the total annual increase; to what extent he estimates these increases will result in rising prices; 241W how many increases in pay are now being demanded; what effect this is having on his price stability policy; and if he will make a statement.
§ Mr. AlbuBetween 26th October and 31st January there were 57 settlements for increases in wages covering some 3,100,000 manual workers. Over two-thirds of these workers were covered by the three year "package deal" for the engineering industry which was signed in December. Because of the complexity of this agreement and the difficulty of knowing its full implications it is not possible to give a firm estimate of the resulting annual increase in wages. 37 claims for wage increases are now outstanding covering about 2,285,000 manual workers. Comparable information for salaried workers is not available, but in the public services there have been seven major settlements for pay increases covering some 420,000 salaried workers and claims covering a further 770,000 workers are outstanding.
I think that there is no doubt that pay increases have continued to outrun the underlying rate of increase in productivity, resulting in continued upward pressure on prices. My right hon. Friend has constantly stressed the need for increases in costs to be absorbed by increases in efficiency wherever possible. The Government is giving top priority to working out, in consultation with management and unions, an effective policy for prices and incomes. But it would be unrealistic to expect to obtain the benefits of such a policy overnight.