Editorial: Trade Unions on the Rocks (1946)

Editorial from the October 1946 issue of the Socialist Standard

In a confused welter of argument about unofficial strikes, big and little unions and the "Closed Shop,” what is by far the most fateful aspect of the trade union situation is being disregarded, though it is the underlying trouble of which the others are largely symptoms. What has happened during the war, and still more since the Labour Government came into power, is that the trade unions have increasingly ceased to be independent organisations of the workers in the struggle against the employers over wages and conditions of work, and have become instead organisations for disciplining the workers in the interest of the Government’s wages and production policies. The present Government, having taken over from Churchill the responsibility of administering capitalism, puts at the forefront of its programme an intense drive to find markets abroad for British exporters in competition with the capitalists of other countries. The plan has several features that are related to each other. One is the continuation of “ austerity ” at home so that more goods can be sold abroad. Another is the effort to lower costs of production to a competitive level in the markets of the world, partly by modernising the technical equipment of various backward industries and partly by seeking the co-operation of the workers, through the trade unions, in the campaign to increase production. The third part of the plan was the Government’s belief that by retaining the control of prices for essential goods, clothing, etc., wages would remain more or less unchanged at the level reached at the end of the war. Not wanting to take the very unpopular step of preventing wage increases by making them illegal—as some governments have done—the Government here hoped to keep wage increases in check by appealing to the workers, and particularly by appealing to the Trade Union executives, to moderate their demands. In short, it was regarded by the Government as essential, if British capitalism was to regain its overseas markets, that the trade unions should largely abdicate their proper function of struggling to raise wages in the present favourable situation, and should instead act as a brake on the demands of the workers. That this is a correct reading of the minds of the Ministers is shown by Mr. Dalton’s speech ill the House of Commons on October 23rd, 1945, when introducing his budget. He pointed out that the Government was spending some hundreds of millions of pounds a year subsidising food and other articles in order to keep prices down, then he went on to talk about the effect on wages : —

“It has also helped to restrain any disproportionate increase in wage rates, which, if it had occurred, might have disturbed the whole balance of our economic life, and might have sucked us into the fatal whirlpool of inflation. Here I wish to pay tribute to the steadiness and good sense which the trade unions and their leaders have shown during the war in this regard. . . . Wage rates . . . have climbed steadily all the time, and that has been right; yet there has been no break-away rise, no uncontrolled rise such as we might easily have seen had it not. been for this continuing cooperation between the Government—in this case the Coalition Government—and the trade unions, both recognising that the common interest was best served by this joint effort of the two parties to keep prices and wages on an even keel.”

Mr. Dalton calls it “co-operation” between the Government and the trade unions, but in fact it has been co-operation between the Government and the trade union executives to hold back the natural and correct desire of the workers to struggle for higher wages before unemployment and eventual slump make it impossible to do so.

Mr. G. D. H. Cole, himself a Labour Party supporter and one who approves of this damping-down policy, described it in very appropriate terms in the Observer (8/9/46). He sees that the workers are restive because they feel they no longer control their officials, and feel that the unions are “merely a bureaucratic machine run by the officials for the purpose of keeping them in order.”

Mr. Cole seeks a remedy, but adds:—

"This is not too easy, now that most wage bargains are national in scale, and wage demands have to be squared with the requirements of a national wages policy—as they have in fact, even if the existence of such a policy is disclaimed. The Trade Unions have become, perforce, instruments for disciplining their more unruly members, as well as for representing them; and this sets up a tension that will be cured only by time, as people settle down to the changed conditions.”

Mr. Cole has correctly diagnosed the cause of the present discontent of trade unionists which shows itself in unofficial strikes and efforts to break away from the discipline imposed by the officials on behalf of the Government, but he and the trade union officials who support that policy are quite wrong in their belief that the workers should, or will, go on accepting it. The trade unions must regain their independence and freedom of action or they will become moribund and useless. The unions are not being endangered by the virile independence shown already by some trade unionists; they are being throttled from above by the fatal tie-up with the Government. Their health will tie restored only when the members can again know that they are able to exercise democratic control over union policy and are free, when they deem it wise, to use the only weapon they have under capitalism, the strike.

It is popular in Labour circles to denounce totalitarian regimes under which trade unions are State organs, and strikes are forbidden. Mr. Morgan Phillips, Secretary of the Labour Party, on his return from Russia, wrote about the Russian unions: - 

"I am not sure that the workers’ organisations can be regarded as ‘trade anions' in the British sense that they are free agents to act and speak as their members demand, irrespective of Government stricture. The very fact that strikes are illegal seems to dispose of any pretence to freedom of action as we know it ” (Daily Herald, 21/8/46).

It would not be a bad idea if Mr. Phillips would now take a look at what used to be independent trade unions in this country and observe that, by a less brutal and less obvious process of deterioration, they are heading towards the state of the Russian organisations. It is plain that the unions here will not be rescued from that fate by the Labour Government or by the trade union executives who have been responsible for the present state of things. Salvation will come from the members themselves when they wake up to the fact that Labour government cannot abolish capitalism or the class struggle inseparable from capitalism, and when they regain control of their own organisations for the purpose of defending their interests on the industrial field.

It should be added, however, that while Socialists support sound trade union action they have to point out, too, that trade unions, though necessary and useful organs of working-class resistance, cannot emancipate the working class from capitalism—that can be done only by a Socialist working class politically organised to take control democratically of the machinery of government, for the purpose of abolishing capitalism and introducing Socialism.