HC Deb 10 December 1968 vol 775 cc69-70W
Mr. Biffen

asked the Minister of Power what proposals he has received concerning an increase in pay of industrial workers in the electricity supply industry on account of increased productivity; and if he will circulate in the OFFICIAL REPORT the formula whereby this increase in productivity is calculated.

Mr. Freeson

The settlement made for employees covered by the National Joint Industrial Council provides, with effect from 23rd September, 1968, for an increase of 5. 5 per cent. on basic salaries, which is equivalent to 4. 6 per cent. on average earnings. In addition, an existing standard productivity allowance is to be consolidated into basic salaries for certain purposes and the hourly rate used to calculate overtime payments is to be brought more nearly in line with hourly rates derived from basic salaries. It is estimated that the two latter adjustments may add about ½ per cent. to average earnings, depending on the amount of overtime worked.

The increases are related to both actual and prospective improvements in labour productivity, which have been assessed in the way recommended by the National Board for Prices and Incomes in its Report No. 42. The Government have accepted that the settlement is consistent with incomes policy.