HC Deb 17 December 1974 vol 883 cc379-81W
52. Mr. Holland

asked the Secretary of State for Employment if he will name the criteria for pay increases listed in the social contract; and what undertakings have been given to him by the TUC regarding their observance.

Mr. Booth

Paragraph 34 of the TUC report on "Collective Bargaining and the Social Contract", which is as follows34. In summary, the General Council's recommendations to negotiators in the coming period are as follows:

  1. (i) although the groundwork is being laid for increasing consumption and living standards in the future, the scope for real increases in consumption at present is limited, and a central negotiating objective in the coming period will therefore be to ensure that real incomes are maintained;
  2. (ii) this will entail claiming compensation for the rise in the cost of living since the last settlement; taking into account that threshold agreements will already have given some compensation for current price increases :
  3. (iii) an alternative approach would be to negotiate arrangements to keep up with the cost of living during the period of the new agreement;
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  5. (iv) the twelve month interval between major increases should in general continue to apply;
  6. (v) priority should be given to negotiating agreements which will have beneficial effects on unit costs and efficiency, to reforming pay structures, and to improving job security;
  7. (vi) priority should also be given to attaining reasonable minimum standards, including the TUC's low pay target of a £25 minimum basic rate with higher minimum earnings, for a normal week for those aged 18 and over;
  8. (vii) a continuing aim is the elimination of discrimination against particular groups, notably women; improving non-wage benefits such as sick pay and occupational pension schemes; and progress towards four weeks annual holiday;
  9. (viii) full use should be made of the conciliation, arbitration and mediation services of the CAS to help towards a quick solution of disputes.
The General Council will keep the developing situation under review, and will expect unions in difficulties in conforming to the spirit of this policy to inform the General Council of the circumstances and to seek their advice, or to respond to an invitation to discuss the situation with them.

The council's report was overwhelmingly endorsed at the TUC conference in September at which time the low pay target was adjusted to a minimum wage of £30 for a normal week.

Mr. Cockcroft

asked the Secretary of State for Employment if he will provide more information for the public than is at present available, on a regular basis, on the operation of the social contract.

Mr. Booth

Ministers have repeatedly made clear that the social contract covers the whole range of our social and economic policies. This covers such matters as pensions, taxation policy, rents, subsidies, price controls, etc. All these matters are already fully discussed in Parliament and outside.

Mr. Brittan

asked the Secretary of State for Employment what criteria determine whether parties to a wage settlement that is outside the terms of the social contract should be so informed officially by his Department; and how frequently this has been done.

Mr. Booth

My right hon. Friend does not officially inform the parties to a wage settlement that it is inside or outside the terms of the social contract.

Mr. Goodhart

asked the Secretary of State for Employment if he will list all Government publications since March 1974 which contain in full the terms of the social contract.

Mr. Booth

Specific aspects of the social contract have been dealt with in White Papers and other publications issued by individual Departments.

Mr. Goodhart

asked the Secretary of State for Employment if he will list all Government publications since March 1974 which make clear who are the partners to the social contract.

Mr. Booth

Ministers have repeatedly made clear that the social contract applies to all members of the community.

Mr. Bulmer

asked the Secretary of State for Employment whether he will seek to ascertain from the TUC whether any of its members have indicated that they do not intend to consider themselves bound by the social contract.

Mr. Booth

No.

Mr. Bulmer

asked the Secretary of State for Employment whether he will publish that part of the Labour Party manifesto which contains the social contract as a White Paper so that it may be more readily available to negotiators.

Mr. Booth

No.

Mr. Hayhoe

asked the Secretary of State for Employment what representations he has received from the CBI about the social contract; and whether, in consequence, he has any proposals for amendments to the terms agreed between the Labour Party and the TUC.

Mr. Booth

Since March my right hon. Friend has received representations from the CBI on a number of matters covered by the social contract. The Government stand by their commitment to the social contract as set out in their election manifestos.

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