John Stonehouse – 1969 Speech on the Strike of Overseas Telegraphists

The speech made by John Stonehouse, the then Postmaster General, in the House of Commons on 20 January 1969.

I very much regret that a strike of overseas telegraphists has started as a result of a dispute over pay and productivity.

In accordance with an agreement between the Treasury and the Staff Side of the National Whitley Council, civil servants who had not had a pay increase since 1st January, 1966 were granted a pay increase of 5 per cent. from 1st July, 1968, pending a full revision of their salary scales in the light of pay research.

The Union of Post Office Workers opted out of this agreement. It chose instead to negotiate separately with the Post Office pay claims in respect of the various grades which it represents. It wanted to take account of increased productivity in various spheres of work, and agreements were, in fact, negotiated on this basis for telephonists and postmen.

In the case of overseas telegraph operators, I have made an offer of 5 per cent from 1st July, 1968—equivalent to the central Civil Service pay increase—plus a further 2 per cent. from an early date conditional upon their accepting changes in practice which will increase productivity.

The union refused to accept this offer and counter-claimed a 5 per cent. increase backdated to 1st July, 1968, deferring until next July any discussion on productivity measures. In effect, the union is now seeking to opt back into the Civil Service central pay agreement for O.T.O.s, having secured substantial advantages for the telephonists and postmen by opting out.

The union’s proposal has great disadvantages, because it would mean deferring important improvements in efficiency which we know can be made and substantial improvements in service in a part of the system where service improvement is badly needed. I accordingly rejected the union’s proposal and maintained the offer of 5 per cent. plus 2 per cent., making a total of 7 per cent.

I have had to close down the overseas telegraph message service and the manually operated telex services. The automatic telex services to the principal countries of Europe, New Zealand and parts of the United States and Canada, and the overseas telephone services will continue to operate, but these services are already fully loaded during normal business hours and any substantial increase in use will cause severe delay.

I deplore the damage to the commercial life of the country, and particularly to the export drive, which will result from the strike, and I appeal once again to the union to agree to a reference to arbitration, which is the agreed method of resolving disputes of this kind.

Mr. Carr While thanking the right hon. Gentleman for the full account of the position as it is at the moment, may I ask him to tell the House, in view of the very serious effect of this matter on our foreign trade, what positive steps he proposes to take?

Secondly, will he consider, in conjunction with his right hon. Friend the First Secretary, in the light of this experience, whether the proposals that she has just made in her White Paper would in due course help in a situation of this kind?

Mr. Stonehouse I agree with the right hon. Gentleman about the serious effects of this strike. This is all the more reason why I hope that the union will take note of the appeal which I have made to it during the last few days and which I have repeated today, namely, that it should allow this dispute to go to arbitration, which is the agreed procedure. I shall, of course, consult with my right hon. Friend the First Secretary about any further steps which we can take.

Mr. Mendelson In view of the sense of grievance under which this group of officers is working, which is similar to the feeling which was held by many railway-men when there was a railway dispute earlier, would my right hon. Friend consider finding a solution along the same lines as was found on that occasion; namely, that he should call the two sides together and offer to agree to an interim increase, and that the final increase be left in abeyance until such time as agreement is reached?

Mr. Stonehouse There is an agreed procedure for proceeding to arbitration in the event of a dispute. As the union has been asking to be treated as civil servants, subject to the central pay increase, I believe that it should accept the agreed procedure.

However, we are very willing indeed to grant immediately the pay increase which it has requested, namely, 5 per cent. from last July plus 2 per cent. for agreed productivity measures which would help to improve the service and substantially improve the conditions of service of these employees.

Mr. Bessell Is the right hon. Gentleman aware that this strike is likely to cost the country millions, if not tens of millions, of pounds? In these circumstances, should not he accept the offer of the union of 5 per cent. now and negotiate the question of a productivity agreement later, particularly as this is a matter of genuine national emergency?

Mr. Stonehouse I am sure that the hon. Gentleman would not expect me to say anything today which might worsen the situation and make an agreement less likely. I will, of course, bear in mind what he has said.

I believe that the offer which the Post Office has made to this group of employees—it is in line with agreements that have already been reached with their fellow employees, the postmen and telephonists—is one which, in all wisdom, should be accepted.

Mr. Kitson Would the right hon. Gentleman consider, in the present difficult situation, the possibility of reducing charges during the reduced rate period for international telephone calls?

Mr. Stonehouse I do not believe that that would be a helpful suggestion. As I said, there is spare capacity at off-peak times. I believe that it would be in the best interest of the members of the business community for them to take advantage of that spare capacity. I do not think that it would be in the general interest to reduce rates.

Sir Clive Bossom As this is a most vital service, especially to small exporters, would it be possible for the Armed Services to handle the most urgent traffic and also the most urgent compassionate cases?

Mr. Stonehouse I do not believe that the hon. Gentleman’s second suggestion would be particularly helpful. I am considering ways in which particularly small exporters can be assisted because, as the hon. Gentleman says, they will be particularly affected as a result of this strike.

Mr. Kenneth Lewis Would my right hon. Friend endeavour to persuade Government Departments to limit their use of the overseas service so that industry may maximise its use?

Mr. Stonehouse I will certainly consider that suggestion.