§ 12. Dr. Twinnasked the Secretary of State for Employment what advances have been made towards greater competitiveness in British industry, through lower unit labour costs; and what expectations he has that further progress may be expected.
§ Mr. GummerWhile productivity has improved considerably recently, earnings in United Kingdom manufacturing industry are increasing twice as fast as in our major competitors. Unit wage and salary costs in manufacturing in the fourth quarter of 1983 were 2 per cent. higher in the United Kingdom than a year earlier. This compares with a fall of 3 per cent. in Japan and the United State of America; and a fall of 4 per cent. in West Germany. The position will improve only if the level of pay increases is significantly reduced.