NEWS OF THE WEEK
T_ HE special economic committee of the Trades Union Congress, that watchdog of the policy of wage restraint, never barks, much less bites. Instead it emits a low con- tinuous growl, which so far has been surprisingly effective in dissuading the constituent unions from pressing their wage claims to extremes. Only this week the National Union of General and Municipal Workers decided to continue support for the policy of restraint. But such cases are not everyday occurrences. It will be interesting to see what comes of the special economic committee's talks on wage policy, held this week. Many months of negotiation —most of it, in the trade union manner, in secret—went by before a conditional wage-standstill for one year was agreed last January, by a majority so narrow that most unions did not regard it as a firm commitment. Possibly more months will have to pass before the T.U.C. again pronounces on the subject. The annual congress at Brighton in September would be the obvious occasion for a new statement, and if the T.U.C. in fact manages to delay action until then it will be doing something to stave off one of the most serious dangers now threatening the British economy. But if it is to do that it will need all the support it can get from the Government on the one hand and the main unions on the other. The Labour Party cannot keep up its propaganda to The effect that prosperity is steadily growing—propaganda which it obviously regards as essential when a general election is an ever-- present possibility—and at the same time persuade the unions that they ought not to make hay while the sun shines. The T.U.C. cannot keep the unions quiet for ever with exhortation, or with cautious hints about doing something for the lower-paid workers. Once the unions decide to ignore the watch-dog, which in any case has no teeth, the waiting wage-claims will be presented wholesale, and the only defence against them will be a corresponding rise in prices. In other words, rampant inflation will be upon us. Before talking any more about recovery the Labour Party and the Govern- ment had better consider carefully where such talk may lead them.
