Commercial Principles
THE vote of the London garages against ending the strike—for that was what it amounted to —must have come as a disagreeable surprise to those industrial correspondents who have been arguing that the strike was the work of an un- popular minority of agitators. The fact is that the continuance of the stoppage is symptomatic of the trend discussed in the Spectator last week : the trend away from working-class loyalty, away from loyalty to trade unions, towards group soli- darity. If the strike were in a more sensible cause would be possible to admire the way in which men and women who realise the futility of the dispute, and who must be feeling the financial Pinch, none the less elect to stand or fall together (admittedly by only a small majority; but even that was unexpected). The news of their deter- mination was not an unmixed blow to Mr. Frank Cousins; although he had let himself be persuaded that the dispute was doing the trade union move- ment nothing but harm, and suffered a rebuff from the fact that his advice to this effect was not taken by the busmen, there was some balm to his 'Mitred self-esteem in that they conclusively demonstrated that the strike was not a put-up, Cousins-inspired job. In the meantime, the wage increases elsewhere which have been alarming the Chancellor con- tinue—making the determination not to give way to the busmen's demands, on principle, seem almost academic. But the decision to refuse compromise has one advantage, which should not r ghtly be forfeited. 'It has been said over and over again,' Sir John Elliot argued recently, 'that nationalised industries have no guts; that they will have to pay anything because the money is not shareholders' money, because they are not like Private enterprise. This is a public service run here on commercial principles.' Admittedly the phrase 'run on commercial principles' has often been used in the past and turned out to be only a pious aspiration. The only reason, though, why it has meant very little is that the industries were not compelled by governments to stand on their own feet. Indeed they were very often encouraged to give way to wage claims to avoid industrial (and political) trouble. They have had little incentive to fight for their right to be commercial. But this very freedom from the need to stick to commercial principles, which in the past has made them weak, can now make them strong. If London Transport were a commercial concern, determined at all costs to make a profit on the year's trading, a formula would have been found days ago to start the wheels turning again. As things are, though, Sir John could cheerfully contemplate the dispute dragging on for months. The longer it has lasted, in fact, the stronger his hand will be when it comes to cutting the bus system down to size : in making it—eventually—a sounder commercial proposition.
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