The 1970s annie
Most of the unions’ industrial actions of the period were reactive, either seeking to resist wage or job cuts, or political attacks such as the 1972 Industrial Relations Act. In industry (private and nationalised) most British companies, instead of prioritising research, reinvestment and restructuring, preferred to simply lay off workers, prompting industrial militancy in response.
After Labour was elected in 1974 the unions showed great patience in abiding by the ‘social contract’ with Labour, reining in pay demands in return for an increase in the ‘social wage’ (rent freezes, pension increases etc). As a result inflation began to come down.
But although the unions had contributed to containing inflation, the banks continued to send money abroad, causing a balance of payments crisis and threatening a further rise in inflation. While Phases 1 and 2 of wage restraint were broadly accepted by the trade unions, Phases 3 and 4 were not.
Phase 3 allowed a maximum wage increase of 10 per cent, although inflation was higher. By 1978 inflation had fallen to 10 per cent but the government unwisely chose to go to Phase 4, which limited pay increases to 5 per cent.
This set off the strikes of the ‘winter of discontent’, which were in response to pay increases lower than the rise in the cost of living and large cuts in public services demanded by the International Monetary Fund (IMF) in return for its loan in 1976.
Myth becomes fact
The media greatly exaggerated the size and impact of the strikes to discredit Labour and assist Thatcher. In reality the strikes inconvenienced relatively few and, compared to genuine catastrophes like the collapse of UK manufacturing in the 1980s or the banking crisis of 2008, had no permanent economic impact.
Despite this, the legend of the winter of discontent is now set in stone, impervious even to the admission of Derek Jameson, editor of the Daily Express in 1979, that: " We pulled every dirty trick in the book. We made it look like it was general, universal and eternal, whereas it was in reality scattered, here and there, and no great problem .”
dscross.wordpress.com/2017/07/29/debunking-the-myth-of-the-winter-of-discontent-what-was-1970s-britain-really-like/
I was working in a northern city that winter. There were no piles of rubbish and no unburied bodies.