§ Mr. Spellerasked the Secretary of State for Employment if he will issue guidance to wages councils considering the next round of pay bargaining regarding the need to moderate the rate of wage increases.
§ Mr. Jim LesterWages councils are independent statutory bodies established under the Wages Council Act 1979 which consolidated earlier legislation. The councils are empowered to fix minimum rates of pay and terms and conditions for workers in the trades and industries they cover. These minima have statutory force. There are 34 councils covering some 2.75 million workers. Each council consists of equal numbers of representatives of employers and workers together176W with three independent members whose function is to preside over negotiations, help the two sides to reach agreement, or, if necessary, exercise a casting vote.
Ministers have no powers to direct any change in a wages council decision properly reached under the statutory procedures.