Was Trade Unions To Blame For The Economy In The 1970's Essay

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The trade unions were to blame for the poor condition of Britain's economy in the 1970s. Discuss. For most of the twentieth-century unions profited from increasing membership and recognition, however, throughout the 1970s the British economy was famous for its poor industrial relations. Yet was this to blame for the relative decline of the economy? During this essay, I will show how trade unions exhibited their strength and its effect and how this was a large factor leading to the demise of the British economy, although not the only cause. (More, 295) I will also discuss the effect of other factors; first of all, the poor management of companies using British Leyland as my primary example. Secondly how the legislation and income policy changed …show more content…

By 1978 more than 40% of workers in manufacturing were covered by these (More, 298), this had a significant impact on the economy as the high membership density had a large influence on employers not to provoke strikes. Therefore, without alternatives increased wages at the demand of unions, increased production costs and consequently lowered profits. Although, the partial competitiveness of the British economy meant that wage increases were met by price increases. Creating a cycle of inflation meaning higher wage demands were to follow as too increased membership of unions, more importantly, this drove down Britons international competitiveness (More, …show more content…

They were by no means the only factor but the percentage of workers that had joined them meant they were a formidable opponent, even forcing governments out of power as demonstrated by 1974 election, ‘who governs Britain?'. The government in fear of the unions created weak legislature and created further unrest with unfavourable policies based upon quickly out-dating economic theory. The combination of this including the incompetence of British management, especially British Leyland, meaning that unions had overwhelming control over productivity. Therefore, unions were heavily to blame, but the blame is shared between other

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