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*Wages - a family of four on average earnings was worse off in 1979 than in 1974.<ref name="swo">''Winter of Discontent 1978-9: We struck because Labour betrayed us'' (2002) [http://www.socialistworker.co.uk/art.php?id=11511 Socialist Worker Online]. Retrieved 20 November 2008</ref>  
 
*Wages - a family of four on average earnings was worse off in 1979 than in 1974.<ref name="swo">''Winter of Discontent 1978-9: We struck because Labour betrayed us'' (2002) [http://www.socialistworker.co.uk/art.php?id=11511 Socialist Worker Online]. Retrieved 20 November 2008</ref>  
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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 governement 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" />  
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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>
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==The Ford deal==
 
==The Ford deal==
The strike by the Ford workers was unofficial, and had not been formally sanctioned by the workers' union, the '''Transport and General Workers Union''' (TGWU), however, given the determination of their members not to return to work, and the violence that had marked the previous year's firefighter's strike, the TGWU officially gave its support on 5 October. They demanded a 25% pay increase and a reduction to a 35 hour working week, and negotiations began with the management of Ford. On 22 November they accepted a 17% pay increase, with no reduction in working hours, and returned to work. The government were furious that Ford had breached the pay policy and attempted to impose sanctions on the company, but this was defeated in [[House of Commons (UK)|Parliament]], with Callaghan only narrowly surviving a motion of confidence. Humiliated and further weakened, the government was now powerless to enforce the 5% cap, which would now be challenged by strikes in both the public and private sectors.<ref name="aspden" />
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The strike by the Ford workers was unofficial, and had not been formally sanctioned by the workers' union, the '''Transport and General Workers Union''' (TGWU), however, given the determination of their members not to return to work, and the violence that had marked the previous year's firefighter's strike, the TGWU officially gave its support on 5 October. They demanded a 25% pay increase and a reduction to a 35-hour working week, and negotiations began with the management of Ford. On 22 November they accepted a 17% pay increase, with no reduction in working hours, and returned to work. The government were furious that Ford had breached the pay policy and attempted to impose sanctions on the company, but this was defeated in [[House of Commons (UK)|Parliament]], with Callaghan only narrowly surviving a motion of confidence. Humiliated and further weakened, the government was now powerless to enforce the 5% cap, which would now be challenged by strikes in both the public and private sectors.<ref name="aspden" />
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Unlike the strikes which were to follow, the Ford strike was unique in that the entire workforce withdrew their labour - no picket lines were required. English workers in ancilliary industries assisted the strike by preventing the movement of components both on the motorways and in the docks, and this also enabled the workers to turn the division of labour between [[Europe|European]] states against Ford as the majority of European factories were prevented from operating because of the lack of components or because components destined for English factories were held up. Henry Ford said, "It was the worst strike I have ever seen".<ref name="winter" /> Analysts have concluded that it was this single strike which caused the Labour Government to fall.<ref name="winter" />
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Unlike the strikes which were to follow, the Ford strike was unique in that the entire workforce withdrew their labour - no picket lines were required. English workers in ancillary industries assisted the strike by preventing the movement of components both on the motorways and in the docks, and this also enabled the workers to turn the division of labour between [[Europe|European]] states against Ford as the majority of European factories were prevented from operating because of the lack of components or because components destined for English factories were held up. Henry Ford said, "It was the worst strike I have ever seen".<ref name="winter" /> Analysts have concluded that it was this single strike which caused the Labour Government to fall.<ref name="winter" />
    
==Transport strikes==
 
==Transport strikes==
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