[Every principled trade unionist and every active Labour…]

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Every principled trade unionist and every active Labour Party supporter will have nothing but derision and disgust for the rotten deal hatched up on Wednesday between Prime Minister Callaghan and Liberal leader Steel.

The 'essence' of the agreement, as Home Secretary Rees put it after the Parliamentary debate, is to "work through the economic policies, especially Phase III"

It is to obtain new allies and buy time for the next stage in the reactionary anti-working class policies of this Labour government, to hold the fort on Phase II while new attacks are being prepared.

SAVE NECKS

This is a deal aimed to save the necks of Callaghan and his rightwing government by going completely behind the back of the working class movement and turning to the junior capitalist Parliamentary party.

It has already been hailed by every enthusiastic wage-cutter and social services destroyer in the Parliamentary Labour Party as part of 'a new alignment in British politics', a further decisive step of the right-wing leadership away from the working class.

Extreme right wing MP John McIntosh declared himself 'delighted' and Reg Prentice found he could change his vote as a result.

strength and determination of the working class, and at the forefront the toolroom workers of British Leyland to protect their standard of living.

HOSTILITY

This determination has spilt over into violent working class hostility to every section of the trade union bureaucracy.

Soon after Scanlon was shouted down and humiliated at the now historic Birmingham meeting on 11 March, he supported the management and the cabinet in theatening to sack the 3,000 toolmakers and was met by a developing national strike in their support.

In area after area AUEW branches, district committees and shop stewards quarterly meetings gathered to pass motions of outright opposition to Scanlon's support for management.

It was increasingly obvious that action in support of the toolroom workers could grow to massive proportions-in complete defiance of the official leadership.

This movement has spurred on the struggle of workers against their union officials. The high pass of bee onese. Tack ones office at Transport House by dockers, women workers from the Yardley's cosmetics factory, and even students.

OWN WAY

These events provided the basis for the Tory decision, following the Parliamentary vote on the cuts last week, to go ahead with a vote of censure against the Labour government, and deal with the working class in their own way.

The Tories clearly decided that since Callaghan in co-operation with the union bureaucracy was showing a diminishing ability to hold back the working class, it was essential for them to take over the reins of power.

Rather than risk a defeat inflicted by the working class, the Tories wanted to do it themselves.

They intend to put millions more out of work, to reduce public spending to the bone, and to bring wages down to the levels of the 1930s. With economic policies like these, enormous and violent repression could not be far This means that a Tory government is likely to return soon with no alternative to Callaghan having been developed in the PLP.

If the fight for a new leadership had been taken up within the Labour Party it would have been guaranteed a response from workers sick of Callaghan's cuts, wage controls and unemployment.

But what did the 'letts' do in the face of this challenge?

From the very start, there was never any question that a single Labour MP, however 'left' his reputation would threaten in any way the Labour government.

And though four ministersShore, Orme, Benn and Scottish Secretary Millan-voted against the deal in the Cabinet, this was not the sign of a fight but of a capitulation to Callaghan.

IGNOMINIOUS Even when the ignominious pact had been concluded, not a single 'left' MP was prepared to come out with decisive condemnation.

Norman Atkinson found it *regrettable. and Eric Heffer said that 'as long as we haven't given too much away, maybe this is a temporary expedient' With friende like thaca mana Michael Foot-he will head the "joint fighting the government need no enemies. The fact is that, as the Workers Socialist League statement printed on the back page points out, the "lefts' should have demanded and themselves set up a new leadership based on socialist policies.

Failing this, they should have voted against the government and for the mobilisation of the working class in defence of jobs, wages and the social services.

The cowardice and lack of alternative provided by the lefts played an essential part in the preparation of the coalition agreement with the Liberals. The union leaders, who were beginning to fear for Phase II, began to hedge their bets against the return of a Tory government.

In the end of course, the TUC leaders thought that the way to hold their members back was to cringe to every coalitionist current.

After the agreement was announced, TUC General Secretary Murray found the 'prospect of keeping a Labour government in power a very agreeable thought' It was these moves within the Parliamentary Labour Party and the TUC that provided the basis. for the coalitionist agreement that temporarily saved the government and its Phase II.

However fragile and temporary the agreements made with the Liberals, it is important to emphasise that the arrangements which have been made, are, as David Steel put it 'unprecedented'. He consultative committee" long way and gave a lot.

For the junior capitalist # arty there will be full consultatio I on all future government po licy, much greater influence on government policy than the Labour Party Conference or any members or supporters in the Labour movement.

The fact remains that the working class has not been bought off or defeated.

There are many more workers who are now moving in the wake of the toolmakers, determined to maintain and improve their living standards. improve their living conditions.

As the developing national strike, after the sacking threat, showed, the working class itself has not yet spoken on this latest treacherous sell-out of their interests. Labour Party members must now demand a recall conference to repudiate the deal with the Liberals and to elect a new leadership to put forward socialist policies.

This will only be successful in alliance with a continued offensive against Phase II of the Social Contract.

The anger and determination that has been shown by the toolmen, the dockers, the hotel workers and many more, must now be mobilised for wage settlements that protect living standards by allowing wages to rise with the cost of living as determined by the workers themselves.

Election campaign or not, it is only through the fight on policies such as these that the interests of the working class can now be Benn - no fight This special edition of Socialist Press has been produced by the Workers Socialist League to meet the needs of the fast developing political situation.

The unofficial coalition between the Labour Party and the Liberals, precipitated by the toolroom workers' strike, demands close study and a full analysis.

In this issue the WSL examines the manoeuvres the Labour Party found necessary to stay in office, and the way that the 'left' MPs, and union bureauCrats capitulated to the shabby deal.

We also examine in depth the political lessons of the toolmakers' strike (Pages 4 and 5) and the way that it has been misinterpreted by left groups, the Communist Party and the capitalist press (Page 6 and 7).

Leyland's role as an international exploiter is examined in depth on Page To put the crisis into perspective the WSL also presents the first of a two part survey of the history of wage controls under the Labour Party and the bureaucratic measures taken to introduce them (Page 3).

Finally (Page 8) we publish the text of a statement put out by the National Committee before the election deal was fixed, calling on the Labour 'lefts' to prepare for an election by putting forward a socialist programme and voting against the government if it

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NamS SPECIAL ISS