Wages Councils (Hansard, 1 July 1981)

§ Mr. Waddington

The text of the letter, which my noble Friend sent on 29 July 1980 to the chairman of the two retail wages councils, is as followsAs the Minister responsible for the administration of the Wages Councils Act 1979 I am writing to seek the views and the assistance of the Council on a matter which is frequently put to me in criticism of the operation of the wages council system. This concerns the position of the very small shopkeeper and the part-time workers he employs. It has been represented to me that the Council's awards are not designed with these people's needs sufficiently in mind and that the effect is to reduce opportunities for employment, especially for young people and for women. I am sure the Council would be anxious to maximise employment opportunities in present economic circumstances. The typical case represented to me is the shopkeeper whose establishment is situated away from the competitive labour market of the High Street and who employs at most only a small handful of workers, usually female who would not find employment elsewhere because they are only available for work close to their homes or for limited and often specific hours. The increases in wage rates agreed by the Council are, it is suggested, forcing many such employers to reduce the number of jobs they would otherwise be able to provide. And it is argued that such employees are themselves less concerned with earning the hourly equivalent of full-time workers than with having the opportunity of a job retaining an earnings capacity. I have no doubt that the Council has considered this difficult issue and I would welcome the Council's views on the extent of the problem and whether any special provision could be made which might go some way towards meeting it, particularly in view of the present levels of unemployment. If, as I hope, you will seek the views of the Council at an early occasion, you might think it would be helpful if one of my officials attended to explain the problems further as they have been represented to me. 396W We have a common interest in seeking to respond to criticisms of the operation of wages councils since I am firmly committed to the principle of wages councils. I look forward to the Council's advice as soon as possible.