John Stonehouse – 1975 Speech on Industry and Trade Unions

The speech made by John Stonehouse, the then Labour MP for Walsall North, in the House of Commons on 20 November 1975.

I do not know any-thing about the Maidstone plant. I am happy to concede the point as the hon. Gentleman, who represents the area, is so well informed about the Maidstone situation.

We have also had a depressing situation at British Leyland which has resulted in the company having to be bailed out at enormous expense. On the news today there was the announcement that 2,000 workers producing Jaguars, cars which sell extremely well abroad and which are in great demand, have been laid off because of yet another dispute. It does not seem that the lessons are being learnt. I wonder when the Government will speak out frankly on this issue which has been so undermining the performance of British industry.

Last week we had yet another illustration of the deplorable effect of strikes—namely, the dispute at the Daily Express. Of course we do not read very much about that sort of dispute in the newspapers, because there is an undertaking in the newspaper industry not to refer overmuch to the overmanning problems and the restrictive practices that they have to suffer. We only hear about such matters indirectly.

I understand that 96 maintenance engineers at the Daily Express were dismissed, many of them being superfluous to requirements. Their reply was not only to put a pistol to the head of their employer in the way that Mr. Riccardo was putting a pistol at the Prime Minister’s head, but to bring out all the engineers of all the other newspapers, who also put their employers against the wall with machine guns at their heads. It was that sort of threat that made the employers collapse. Yet another victory was secured for a minority within a minority.

That sort of action is not trade unionism: it is a Mafia tactic, a protection-racket tactic. There is too much of that sort of action in British industry and someone some day must say something about it. I believe that the trade unions have developed too much power and that they abuse their power. They do not act in the best long-term interests of their members. Further, they do not act in the best interests of the community. Very often they act irresponsibly.

Faced with that situation, what action do the Government take? Instead of dealing with the problem of the growth of trade union feudalism within our industrial economy, a feudalism which is partly, if not mainly, responsible for our depressing experience in productivity compared with other industrial States, they announce that they will reintroduce legislation to remove the remaining unsatisfactory features of the Industrial Relations Act 1971. They will waste parliamentary time going through all that again when they could have had a Bill enacted last Session with only one serious point excluded from it from the Government’s point of view. What was that point? It was the provision that sought to establish a closed shop for journalists. When we are faced with the immense problem of trade union feudalism, why is it that we have the Government wasting time on a proposal to reintroduce legislation for that purpose?

We also have proposals for industrial democracy, with which I agree. However, I hope that that does not mean syndicalism. In many areas in which industrial democracy is applied I believe that there is an attempt by those concerned not to run a viable industry, but to hold others to ransom.

Regrettably, there are signs of that happening within the Post Office, an industry which I knew quite well a few years ago. At that time we came up against many overmanning techniques by the trade unions. Even today restrictive practices are still preventing the implementation of new ideas and the use of new machinery. I believe that industrial democracy must mean a greater sense of responsibility on the part of workers and those who participate rather than the impression being given that through this technique they will be able to hold on to restrictive practices which are clearly anathema to the progressive improvement of Britain’s economy.

Reference is made in the Gracious Speech to the Post Office banking system. It is important that the Ministers responsible should come clean about the real cost of Giro. During the period when I was the Minister responsible it was my job to take over the Giro proposals which had already been agreed by my colleagues. It was my task to implement the new service. I did so at the time with some misgivings, and I look back with some dismay on what was done at that time and since. Giro has already cost the taxpayer over £30 million. It is a wasteful system. Even today it is wasting money, because it under-estimates the real cost of the service. In particular, it depends so much on the postal services and there is no accurate costing of the postal factor involved. That disguises the true cost of the Giro service.

In introducing the Gracious Speech, the Government have taken on more than they can handle during the next year. I believe that the devolution proposals will need a great deal more consideration than even the Government have imagined. I hope that they will turn their attention away from shibboleths and diversions to tackle at least two of the most serious problems that need to be dealt with if we are to get out of our crisis.