British I. R. -I.R. Environment and Ideology

I‑ Trilateral Bargaining‑ The Impact of Incomes Policies

•The Social Contract

–Explicit understanding between unions and Labour Party prior to and after 1974 election

–Unions promised wage restraint in return for legislative changes in bargaining, social and economic areas

–Labour party offered

–TUC response

–Broke down 1978‑79 “winter of discontent” Helped produce Thatcher victory

•Social Contract dramatically increased effective role of TUC in bargaining in that brief period


	Labour party offered
			Settle coal strike‑which it did outside existing pay guidelines
			Repealed Industrial Relations Act of 1971
			Made income tax more progressive
			Created ACAS and passed Acts of 1974, 75, 76
			Promised to legislate on workers' participation – never did

	TUC response
	Call to hold wages to change in prices

	Broke down 1978‑79 “winter of discontent”
	Helped produce Thatcher victory