Gilman, Mark

A combination of falling unemployment and soaring corporate profit has still not generated demands from UK workers for a round of substantial pay increases. The annual rate of growth of average earnings fell slightly from 4.5% in April 1997 to 4.25% in both May and June, according to the latest /Labour Market Briefing/ (August 1997) from the Trades Union Congress. One reason why average pay may have risen so slowly is that the recent surge in job creation has come mainly in lower-paid positions in shops, hotels and restaurants. Overall figures have also been depressed by continued tight control of public sector pay, which accounts for about 20% of the earnings index. Although commentators note that there have been attitudinal changes - in that managers, union leaders and shopfloor workers generally accept that companies can only fund pay rises they can afford - this is combined with the fact that increased flexibility in the job and pay markets is permitting greater divergence both within and between companies in terms of pay rates. This permits pay negotiators to take more account of the financial performance of individual units. There is also an element of the "fear factor", in that although unemployment figures are falling the proportion of households which experience long-term unemployment is growing. Only skill shortages in certain industries have led to an upward pressure on wages, but having said this, it is generally agreed by employers and trade unionists alike that there is likely to be little change in the general climate of pay and inflation.

In September 1997, four women won what has been described as a landmark victory in achieving equal pay for work of equal value, ensuring that their pay as nursery nurses is the same as men employed by the same county council (Gloucestershire) working as technicians. The women, who care for children with special needs, claimed that their salaries were in breach of the Sex Discrimination Act, arguing that their jobs entailed similar work and qualifications to the male technicians, who were paid up to 25% more than themselves. An industrial tribunal rejected the council's argument that the pay gap was entirely due to extra hours worked. The county council, which employs 860 women as nursery nurses, is to hold an emergency meeting to discuss the implications of the ruling.

Previous UK Governments had considered how best to privatise the public sector Post Office, but following the election of the Labour Government in May 1997, a review of the Post Office and its functions was announced in order to find other ways of bringing about commercial freedom. The Government has ruled out the previous options of privatisation or the breaking up of some of the post office services, but is looking at other ways of achieving what both management and staff are looking for.

Adair Turner, director general of the Confederation of British Industry (CBI) told delegates at the Trades Union Congress (TUC) conference, held on 8-11 September 1997, that the CBI and the TUC should seek joint commitments where possible over a wide range of policy areas, including education and training and European social policy. He said that he did not support the previous Government's proposals for a further round of legislation to limit trade union rights, but equally he did not favour moves by the present Government towards introducing a statutory basis for trade union recognition. The CBI would clearly prefer voluntary agreements, and Mr Turner stated that it did "not think partnership is best fostered when one partner feels that they have been forced to deal with the other".

At the beginning of July 1997, Britain's largest general workers unions, GMB and TGWU, were calling for members in the construction industry to back industrial action on up to 50 "prestige" building sites, including the millennium dome project in London's docklands, Manchester airport and the Channel tunnel.

The Advisory, Conciliation and Arbitration Service published its 1996 annual report on 18 June 1997. Of the over 100,000 individual employment rights cases ACAS dealt with, nearly half of the employees involved were claiming unfair dismissal, but other categories are as follows:

As the debate continues over the need to treat employees as valued assets, the MSF survey of employees, published on 11 July 1997, indicates that within companies there is a very wide divide between management and other staff. The table below shows the extent to which separate, and better, facilities and conditions are provided for senior managers

Members of the finance trade unions BIFU and UNiFI who work at Barclays Bank were balloted in July 1997 over whether to take industrial action. The ballot took place after a consultative ballot concerning the bank's new pay proposals showed overwhelming rejection by staff. Jim Lowe, the BIFU general secretary, said that: "Staff are very angry ... If these proposals go through as they stand, potentially over 25,000 staff face a wage freeze as well as leaving pensions expectations in ruins. We believe this is totally immoral."

The Government announced on 8 July 1997 that it is to end balloting over the check-off system for trade union members, whereby members can have their union subscriptions deducted directly from their wages by the employer, who then passes them on to the union.

After 18 years in the wilderness, being frozen out of influence in the corridors of government by Conservative administrations, trade unions have been informed that they will be offered places on working groups being formed to advise various government departments. The Trades Union Congress (TUC) reports a substantially changed mood in Whitehall and Westminster, after years of unions being systematically excluded from representing their members.