Chronicle: Industrial Relations in the United Kingdom August‐November 1986
| Published date | 01 March 1987 |
| Author | DAVID MARSDEN |
| Date | 01 March 1987 |
| DOI | http://doi.org/10.1111/j.1467-8543.1987.tb00705.x |
Chronicle: Industrial Relations in the
United Kingdom August-November
1986
THE LABOUR MARKET
The Chancellor’s autumn economic statement predicted
3
per cent growth
of
GDP for
1987,
slightly up on the final quarter
of
1986,
with inflation
remaining low, but rising slightly to
3
per cent. Unemployment remained
stubbornly above 3m, with about
41
per cent unemployed for at least a year.
The number
of
vacancies continued to increase slowly, running about
20
per
cent above their level a year ago. The underlying rate
of
increase
of
earnings
remained at
7.5
per cent overall and
7.75
per cent in manufacturing
industries. According to the CBI pay settlements data bank in October, pay
settlements in manufacturing industry had fallen to
5.5
per cent, the lowest
level for three years. Board directors’ basic salaries, according to the
Charterhouse financial services group’s autumn report, continued to rise at
about
10
per cent
a
year. Profit-related cash bonus schemes were an
important element in this. The number
of
industrial disputes remained at a
low level.
GOVERNMENT POLICIES AND ACTIVITIES
ECONOMIC
POLICY
The
Chancellor’s
Economic
Statement
On November
6,
the Chancellor
of
the Exchequer, Mr Nigel Lawson,
announced plans to increase government expenditure on education, social
security, health and housing, adding more than flObn to previous spending
targets over the next two years. f4bn
of
the extra would go to local
authorities, much
of
which would fund higher pay for school teachers.
On October
22,
Mr Robin Leigh-Pemberton, Governor
of
the Bank
of
England, hinted that the Government might abandon Sterling
M3
as its
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