More Pay Curbs by Callaghan

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As the huge economic crisis of British capitalism continued to escalate during the last fortnight, it has become clear that a further package of spending cuts, coupled to prolonged wage controls are being lined up by the Labour government.

News of the crisis came thick and fast as each day piled up additional statistics and details of the attacks in store for the working class.

Un Monday I8th October it was revealed that the growth in the money supply (printing of additional paper currency), is running now at 27% per annum -more than double Healey's projected figure of 12%, and massively stoking up inflation, which already stands at 15%.

STAGNANT

Next day the publication of retail sales figures showed that they had remained stagnant for the last three months - and are now running at a lower level than they were two years ago.

At the same time both British and German motor manufacturers launched a concerted campaign to the Common Market to cut down on 'cheap' cars imported from Eastern Europe.

The British Communist Party, which has vociferously demanded curbs on car imports from Japan and Germany was thus put in an acutely embarassing position.

On Wednesday October. 20th the pressure for protection of the European shipbuilding industry against 'foreign' competition was stepped up with an EEC move to cut imports from Japan.

In part of the publicity for this move the Chief Executive designate of the new nationalised board of British Shipbuilders, J. Graham Day, announced thát the whole shipbuilding industry here was close to collapse.

By Monday 25th October, figures were emerging on the scale of spending cuts contained in the implementation of present policies over the next year.

Some 34% of local authority spending will need to be axed -from services already cut to the bone in every area. This will mean an inevitable loss of jobs.

On that same day the pound crashed through the floor of the foreign exchange markets, plumbing a new record low value. MORE INFORMATION Socialist League.

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Address Callaghan's response was immediate. That evening, speaking at the opening of a new headquarters for the Post Office Engineers Union he stated that a further period of wage restraint was now "essential"

This statement, made while the value of the wage packet took a record blow as a result of the crisis of British capitalsm, was in general covered over by the Tory press, whose owners were looking even more drastic and dramatic measures to attack the working class.

But in case anyone thought the wholesale onslaught on jobs and living standards might force the union leaders into any kind of militant • stance, Jack Jones confirmed his continued alliance witle the employers in derence o Briish capitalism, stating *There is no question that the pound is undervalued and the message that Britain must give to the world is that we are a united nation determined to win through."

REACTIONARY

This line is of course completely reactionary. To suggest there is any unity of interest between the 1½ million unemployed or the countless millions facing speed-up and wine citated banker d Tane capitalists of the CBI with whom Jones and Callaghan collaborate each day, is a complete deception.

yet what clearly dominates his tal ob a tnited nation is ith fear of the growing resistance within the working class to the ALEI LEAG Callaghan 4½% deal and the reactionary leaders who have foisted it upon them.

Trepidation at the response of workers in the coming months seems also to have caused both Whitehall and TUC bureaucrats to remain unenthusiastic about the puny 13,000 drop in unemployment in the seasonally adjusted figures.

They know only too well that this temporary drop is in no way an indication of the future, when the forecast is nearer to two million jobless than one, at least until 1979.

LOBBY

Fears of a hostile and militant working class also lie behind the 13-6 vote decision of the Labour Party National Executive Committee to support the November 17th lobby of Parliament in opposition to cuts in public spending.

Neither the fact that the government has no intention of paying any attention to the NEC vote nor the fact that the 'lefts' on the NEC have no intention of leading any serious light against the cuts in public expenditure, as demonstrated by their pitiful performance at the Labour Party Conference last month, prevented the pound from sliding a further 1½ cents the same afternoon.

On October 30th, amid the news that rail fares are to rise by another staggering 122% - clearly as a prelude to further cutbacks in service, the Cabinet met to discuss a new package of spending cuts for late November (after the by-election results are counted).

Rumour had it that three unlikely bedfellows were opposing the cuts - faded 'lefts' Foot and Benn, together with right-winger Anthony Crosland. Crosland's position threatens to cause Callaghan embarassment, since there is no credible way in which he can be branded as 'extreme' or "left wing' for opposing a package of measures which will incur the hostility of the vast majority of Labour supporters.

As the crisis lurches on from day to day the complete economic and political impasse of the Labour government is exposed more and more clearly.

Every new statistic only confirms the impossibility of reforms - and the need for the struggle uncompromisingly to defend jobs and working class living standards, paving the way in the process for the ousting of the present Labour and trade union leaders and the building of a new leadership prepared to struggle for socialism. FULL ALL SALALYOS, UNLI the TUC and the Labour government have little respect for the niceties of the social contract. They accept the profits bonus provided by the wage-cutting 42% deal, but on closures move with complete disregard for the bureaucracy.

This has left leaders like Jack Jones floundering, seeking a face-saving way of heading off working class resistance.

The Times showed this clearly, pointing out that Jones is:

«Concerned because clearly he Knows only too well that this sort of shattering blow to a highly sensitive area like the North West can be used by militants in his own union and elsewhere to grease the skids under the social contract that he is so vigorously trying to preserve."

CONDEMNATION

Indeed the Courtaulds closures are a crushing condemnation of the social contract. They indicate that, regardless of the level of speed-up and wage-cutting agreed to by the union bureaucracy on behalf of their members, there is no escaping the axe of capitalist rationalisation.

The only defence of jobs lies in a rejection of the 'profit and loss' line of argument put by the employers and by TÜC leaders alike, and the mobilisation of the full strength of the working class itself independent struggle starting with the occupation of factories threatened with closure. This step has already been discussed in Skelmersdale, where an action committee has been elected.

The occupations must call on the support of other workers in the combine and put forward the demand that Courtaulds be forced to open their books to elected X:.....cont a trom lage l.

This will expose to the workers movement the real financial position and manipulations, the hidden deals and the future intentions of Courtaulds management and provide the case for the nationalisation of the massively subsidised Courtaulds_ combine, compensating only small savers.

At the same time the insight the opening of the books would provide into the marketing and production techniques in textiles will provide the basis of a workers' plan of expanded and improved production in the longer tern, to use to the full the productive resources held back by the capitalist's lust for profit in a period of slump.

Until such a workers' plan can be implemented the work available must be shared, at no loss of pay, among the whole workforce 1n each factory, with no redundancies.

Union bureaucrats and Labour ministers, attempting to argue 4,000 workers out of their factories and • onto the dole queues, will argue such a programme is 'unachievable' . But what is certainly unachievable is full employment, improved living standards or secute working conditions unless such a fight is taken up.

'LEADERS'

Those leaders' of the working class who dodge this fight are simply paving the way for defeat and demoralisation of the working class and the downfall of the Labour government.

They must be replaced by a new leadership which will develop the fighting capacity and indep-. endence of the working class.

• This is the lesson the Courtaulds closure holds for every • worker.

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PHOTO: Chris Davies, Report Renor

trade union committees at plant, division and combine level.