By John Short
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Extra resources for The Urban Arena: Capital, State and Community in Contemporary Britain
Sample text
In order to restructure effectively, companies need a high degree of control over labour. In order to keep costs down and profits up they want wage claims and price increases to be kept low. In Britain, however, industrial capital has not sought to maintain its power over the workforce through incomes policies or through direct control of legal sanctions. Incomes policies can easily become part of a wider strategy of controlling profits, prices and investment strategies, and companies do not want to be in the front line of taking their own workforce to court: so firms have sought to shift the onus oflegal action onto the state.
The aim of the Conservative government which came to power in 1979 was to reinstate the workings of the free market in order to ensure economic vitality. s of state involvement in economy and society. (2) A belief in 'sound money'. The Conservative government's strategy depended on the monetarist thesis that controlling the money supply would squeeze out inflation; the main method was to be an increase in interst rates. Both (1) and (2) could be combined in a concentrated attempt to reduce public expenditure.
Union activity in Britain brought down Heath's Conservative government in 1974 and was instrumental in Callaghan's Labour government losing the 1979 election. But recent years have seen a marked change in the balance of power. Under the social contract between the unions and the Labour government of 1974-9, for example, the labour movement gained a lot. Taken together, the Trade Unions and Labour Relations Act of 1974 and the Employment Protection Act of 1976 gave: e e e e e protection against dismissal increased redundancy payments paid maternity leave union immunity from common law action improved arbitration through the Advisory, Conciliation and Arbitration Service (ACAS).