Changes

The Trade Unions Congress (TUC), an umbrella organisation of Britain's trade unions, had become "tied" to the government following the adoption of the [[Social Contract]],<ref>''The agreement was known colloquially among rank and file union members however as the "Social Con Trick".</ref> a bipartite arrangement between the government and the trade union movement. "The package was an attempt to control inflation through regulation of prices, provide growth of employment through industrial strategy and improve the social wage by redistributive fiscal policies and changes in patterns of public expenditure, and was to include a programme of employment law involving the repeal of the Industrial Relations Act 1971 , introduction of new statutory protections for employees and rights for trade unions and legislation on industrial democracy . The unions in return were to co-operate in restraining wages."<ref name="emire">''Social Contract'' (2007) [http://www.eurofound.europa.eu/emire/UNITED%20KINGDOM/SOCIALCONTRACT-EN.htm European Foundation for the Improvement of Living and Working Conditions]. Retrieved 20 November 2008.</ref> Although the government failed to deliver its side of the bargain, the TUC insisted on upholding theirs, even to the detriment of its member unions: in 1976 the Seamen's Union proposed strike action over a delayed pay award. The general secretary of the TUC, Len Murray, told them, "By god, we'll make sure no union supports you. We'll cripple you."<ref name="swo" /> A further three major strikes by groups of skilled workers in 1977 collapsed after the TUC instructed other workers to cross the picket lines.<ref name="swo" />  

The Trade Unions Congress (TUC), an umbrella organisation of Britain's trade unions, had become "tied" to the government following the adoption of the [[Social Contract]],<ref>''The agreement was known colloquially among rank and file union members however as the "Social Con Trick".</ref> a bipartite arrangement between the government and the trade union movement. "The package was an attempt to control inflation through regulation of prices, provide growth of employment through industrial strategy and improve the social wage by redistributive fiscal policies and changes in patterns of public expenditure, and was to include a programme of employment law involving the repeal of the Industrial Relations Act 1971 , introduction of new statutory protections for employees and rights for trade unions and legislation on industrial democracy . The unions in return were to co-operate in restraining wages."<ref name="emire">''Social Contract'' (2007) [http://www.eurofound.europa.eu/emire/UNITED%20KINGDOM/SOCIALCONTRACT-EN.htm European Foundation for the Improvement of Living and Working Conditions]. Retrieved 20 November 2008.</ref> Although the government failed to deliver its side of the bargain, the TUC insisted on upholding theirs, even to the detriment of its member unions: in 1976 the Seamen's Union proposed strike action over a delayed pay award. The general secretary of the TUC, Len Murray, told them, "By god, we'll make sure no union supports you. We'll cripple you."<ref name="swo" /> A further three major strikes by groups of skilled workers in 1977 collapsed after the TUC instructed other workers to cross the picket lines.<ref name="swo" />  

The "discontent" of British workers continued to build for several years; [[inflation]] had reached 26.9% in August 1975, and the incumbent [[Labour Party|Labour]] government under [[Prime Minister]] [[Harold Wilson]] introduced a "cap" on pay increases for workers at limits set by the government, and far below the rate of inflation. For workers earning under £8,500 ($17,000) a year the maximum pay increase could not exceed £6 ($12) per week. By 1978, inflation had almost halved, but the government refused to remove the caps, fixing the maximum pay increase at 5%. However, at the end of 1977, [[firefighter]]s had gone on strike and, despite being forced back to work (the strike had ended violently, with the firefighters even attacking their own Union officials whom they felt had betrayed them), achieved a 10% increase, followed in early 1978 by further concessions from the government, giving them an increase in real terms of 20%. Furthermore, their salaries became index linked against inflation, a privilege which had previously only been accorded to the Army Chiefs, police and judges, as a compensation for not being allowed to strike. The firefighters had however still retained the right to strike. Told that ''their'' rises would still be capped at 5% the remainder of the already disgruntled workforce took notice of how the firefighters had been successful in  "defeat" and began to see how weak the government had become when challenged by direct action.<ref name="winter">''The Winter of Discontent'' "History and Class Consciousness in the U.K." (2002) [http://web.onetel.net.uk/~davewalton/archive/local/winterofdiscontent.html Revolt Against an Age of Plenty]. Accessed 1 February 2008</ref>

The "discontent" of British workers continued to build for several years; [[inflation]] had reached 26.9% in August 1975, and the incumbent [[Labour Party|Labour]] government under [[Prime Minister]] [[Harold Wilson]] introduced a "cap" on pay increases for workers at limits set by the government, and far below the rate of inflation. For workers earning under £8,500 ($17,000) a year the maximum pay increase could not exceed £6 ($12) per week. By 1978, inflation had almost halved, but the government refused to remove the caps, fixing the maximum pay increase at 5%. However, at the end of 1977, [[firefighter]]s had gone on strike and, despite being forced back to work (the strike had ended violently, with the firefighters even attacking their own Union officials whom they felt had betrayed them), achieved a 10% increase, followed in early 1978 by further concessions from the government, giving them an increase in real terms of 20%. Furthermore, their salaries became index linked against inflation, a privilege which had previously only been accorded to the Army Chiefs, police and judges, as a compensation for not being allowed to strike. The firefighters had however still retained the right to strike. Told that ''their'' rises would still be capped at 5% the remainder of the already disgruntled workforce took notice of how the firefighters had been successful in  "defeat" and began to see how weak the government had become when challenged by [[direct action]].<ref name="winter">''The Winter of Discontent'' "History and Class Consciousness in the U.K." (2002) [http://web.onetel.net.uk/~davewalton/archive/local/winterofdiscontent.html Revolt Against an Age of Plenty]. Accessed 1 February 2008</ref>

In April 1976, Wilson had been replaced as Prime Minister by Labour's [[James Callaghan]], and it was widely expected that he would call for a general election and the removal of the wage caps in September 1978 following the TUC conference. Instead, he announced that there would be no general election and that the cap would remain for at least another year to allow the economy to stabilise. The same month, a pay increase for workers at [[Ford Motor Company]] was set by the company within the allotted 5% designated by the government but was rejected by the workers. A strike began when 15,000 Ford workers walked off the job on September 22 and by September 26 had been joined by 57,000 others, leaving 23 Ford factories unmanned.<ref name="aspden">'''Aspden, Alex''' ''1978-1979: Winter of Discontent'' (2007) [http://libcom.org/history/1978-1979-winter-of-discontent Libcom.org]. Retrieved 1 February 2008</ref>

In April 1976, Wilson had been replaced as Prime Minister by Labour's [[James Callaghan]], and it was widely expected that he would call for a general election and the removal of the wage caps in September 1978 following the TUC conference. Instead, he announced that there would be no general election and that the cap would remain for at least another year to allow the economy to stabilise. The same month, a pay increase for workers at [[Ford Motor Company]] was set by the company within the allotted 5% designated by the government but was rejected by the workers. A strike began when 15,000 Ford workers walked off the job on September 22 and by September 26 had been joined by 57,000 others, leaving 23 Ford factories unmanned.<ref name="aspden">'''Aspden, Alex''' ''1978-1979: Winter of Discontent'' (2007) [http://libcom.org/history/1978-1979-winter-of-discontent Libcom.org]. Retrieved 1 February 2008</ref>