Speeches, etc.

Margaret Thatcher

Speech to Conservative Trade Unionists

Document type: Speeches, interviews, etc.
Venue: Sherwood Rooms, Nottingham
Source: THCR 2/10/7: speaking text
Editorial comments: The press release (1161/79) was embargoed until 1445. The speaking text has been preferred to the press release because it includes additional material in the form a long opening section, handwritten by MT (see editorial notes in text). She was speaking at the CTU’s Annual Conference.
Importance ranking: Major
Word count: 2075
Themes: Conservatism, Conservative Party (organization), Defence (general), Economic policy - theory and process, Industry, General Elections, Monetary policy, Privatized & state industries, Pay, Public spending & borrowing, Taxation, Trade, Law & order, Trade unions, Trade union law reform

Handwritten notes by MT:

1. Shortly before the General Election we had a CTU rally at Wembley. Believe it played a decisive part in victory.

2. Today here in 3 capacities Citizens of our country to which we owe our first duty, and in which we all believe.

Believe not only for its past—but for its potential in the future.

Believe in its institutions— Parliament of a free people. Rule of law upheld by police and judges respected and honoured throughout the land.

Believe our own way of life is worth defending—strength of a nation's resolve is judged by its willingness to defend itself.

Second as Conservative

We accept that democracy means acceptance of personal responsibility.

That we the people are our country and demands we make on our country are demands we make on ourselves.

It is not enough to take up a public stance on great issues or to be part of a protest movement, or to talk about a new social order.

Whatever we want to achieve, we have to do something about [end p1] it ourselves. Democracy is a form of self-government that can only work through self-discipline, self-exertion and example.

With that in mind, I should like to comment on some of the economic problems of the day.

1. Public expenditure is the curious phrase economists use to describe spending not made by the public but by central and local government. But if the public doesn't spend the money—it certainly provides it. The only money the government have comes from taxpayers and ratepayers—men and women, small and bigger business. But taxes and rates are already too high. Some of you will say that taxation is like shearing sheep—you ought to stop when you get to the skin.

But even the fleece is not enough and governments have to borrow to cover the spending bills. There are times when governments even have to borrow to pay the interest on past borrowings—last year we had to pay out as much in interest as we spent on the entire National Health Service. But as many of us know—less money doesn't always mean lowering standards. Look at the vast growth of government spending over the last 20 years—ask yourselves are we that much better off.

The people have become so accustomed to more and more government spending year after year—they find it hard to accept that it can't go on. [end p2]

The same goes for borrowing from the banks by individuals and by business. The more individuals borrow to pay for consumer goods (and the more companies borrow to pay wages they can't afford) the greater the temptation on governments to [print] the money [illegible word] savings and to match borrowing. That temptation must be resisted at all costs. To print money is to reduce the value of every £ in circulation and hence to start a new round of inflation just when we are struggling with the existing problem. That is the background to the increase to 17%; in the MLR which we announced on Thursday. I wish we could have avoided it—because lower interest rates help business to expand, and young people to buy homes. And I must be frank, interest rates could be lower if governments weren't the last of the big spenders.

It was Colin Clarke who said (and he must have been thinking of our opponents when he said it) “A large part of the effort of modern politicians is devoted to destroying … the sense of responsibility among electors and to spreading the futile and dishonest belief that somehow or other someone else will pay for the good things which electors are encouraged to demand.”

A nation can't go on living beyond its means [illegible word].

There are two ways out of our difficulty

—one is by reducing public spending which we are trying to do. [end p3]

—and the other is by increasing national income.

There is no other alternative.

There is no crock of gold that we can raid.

Second point There is an inescapable link between prosperity and production.

Those countries whose people have a higher standard of living have a higher standard of output.

What does it mean?

Not only working harder night and day—management and workforce.

It means using the latest equipment and machinery properly.

It means welcoming change instead of resisting it.

It means better organisation so that work flows smoothly.

Others do—they are getting results.

Unit wage costs in manufacturing between 1975—first half 1979 rose by TABLE

As a Conservative Government we have reduced tax to increase incentives—although I accept we hope to go further yet. But we have started on this path and we intend to continue. We can give the opportunity, only the people can respond. If we want to improve public services and most of us do—we have to improve output in the private sector.

There is an old American proverb—or if there isn't there [end p4] should be—‘A lot you can share—nothing you can't.’

Third—As well as a change of economic policies, we do need a change of attitudes. A nation that can't put its own house in order cannot command respect. A nations which denies its citizens of the right to own property will soon deny the right to liberty. (Lord Acton—A people averse to the institution of private property is without the first elements of freedom). Thomas Macaulay. An acre in Middlesex is better than a principality in Utopia. These things will take time—but we shall not be deflected from our purpose. Incentives Manage Bargain two illegible words

You are all here as Trade Unionists.

Start of typescript [end p5]

We are a practical people, we judge ideas by their results, and not only ideas, but efforts and institutions. This holds good for the trade unions, separately and collectively, just as it does for all other institutions.

The purpose of trade unionism is to improve living standards, prospects, security and general well being of working people. When we look at the unions today, we ask: have they achieved their own purpose? How have they affected the lives of their members and the nation at large? That is the natural question for trade unionists to ask themselves, their unions, their movement. [end p6]

In post-war Britain, trade unionism has been stronger than ever before, in terms of numbers, influence on government, ability to impose its will in workaday life.

In 1914, there were a million and a half trade unionists.

By 1939 they had grown to nearly four million. Today, there are twelve million, about half of all wage and salary earners.

For decades now, union leaders have been top people. [end p7]

The trade unions have ensured that we in Britain have been pre-occupied with pay and industrial relations: They have never been far from the centre of the political stage. And yet while other countries in the free world have gone ahead, we have stood still or even slipped back.

Those countries owe much of their success to a different attitude on the part of their trade unions, which recognise that wealth must be created before it can be shared and enjoyed; that unions must co-operate in producing wealth rather than struggle to frustrate the workings of the free enterprise economy. [end p8]

Their unions saw new technology, better machinery, greater productivity, more economical manning levels as sources of benefits to working people. Their unions realised that real increases in pay could only be earned by real increases in output. Hence their unions brought benefit to their own members and to the whole community. Some of our unions seem to believe that real benefits can be obtained by struggle rather than by higher output and have ended by struggling against one another.

This conflict is exemplified by the growing number of inter-union battles, with each union trying to gain a monopoly position at the expense of other industries and of the consumer. [end p9]

For example: British Steel would like to import coking coal to make its steel more competitive. Note

But the NUM opposes this saying, “Buy our coking coal, even if it is more expensive” . If British Steel agree, they must, in turn, say to the car manufacturers, “Buy our Steel, even if it is more expensive” . But then British Leyland and the other car manufacturers have to ask the consumer, “Please buy our cars even if they are more expensive” . But we are all consumers and as consumers we all want a choice. We want to buy the best value for money. [end p10]

If foreign cars, or washing machines, are cheaper or better than British, the consumer wants the choice.

The consumer's natural shrewdness breaks the circuit.

Producers want a protected market for their products. That is the union demand. But the same trade unionists, as consumers, want an open market. They cannot both win. But they can both lose. [end p11]

The trade union pioneers believed that they were “united to support not combined to injure.”

Most trade union members still want this to be true.

And yet, it seems a far cry from some of the things we see about us. [end p12]

Conservative Trade Unionists represent a growing number of the workforce. You represent the millions of trade unionists who reject socialism and reject class-conflict. You are dedicated to furthering the essential unity of the British people. You want to improve the quality of life and do more to relieve poverty and hardship by creating the means to do so.

In that sense, you Conservative Trade Unionists, can rightly claim to represent the original ideals and aspirations of trade unionism. You are not something alien, something added, but part of the movement's conscience, helping to restore it to its original purpose. [end p13]

There are millions of trade unionists who think like you. But you have taken the initiative in grappling with our common problems. And grapple you must. There are limits to what Government can or should do; the rest depends on you.

Our stand in favour of the secret ballot, embodied in deliberately modest provisions, symbolises our concern for union democracy. We believe that this will depend largely on the resolve of union members to have their own say in making union policy at all levels. [end p14]

Our belief in the secret ballot stems from our trust in the good sense of the twelve million British people who are members of trade unions. We believe that as unions become more responsive to the wishes of their members, they will become more responsible to the community as a whole.

We do not claim that the postal ballot will of itself usher in union democracy and accountability, or put an end to strikes and militancy. That would be utopian. But ballots will help union rank and file to get the unions they deserve. Ballots will give members a better chance to have their say in the choice of policy and of leaders at all levels. [end p15]

Let us not forget. The left opposes any extension of the secret ballot. For the left, democracy means the mass meeting marshalled by the bully boys. The left knows that the majority are not Marxists and will not support Marxists.

Conversely, for us Conservatives, an extension of trade union democracy is simply a new version of an old Conservative maxim: Trust the people. Trust the rank and file trade unionists. We believe that we should legislate that trust into law. [end p16]

But law alone is not enough. We need responsiveness by unions at all levels to economic realities. The economic facts of life must be brought to bear on union decisions, great and small. Sectional interests have their legitimate place, but they must be subject to wider interests and wider needs.

Your efforts are indispensible to bringing home this wider understanding.

And management too, must do more. The CBI leaders said as much at their Birmingham Conference earlier this month. They recognised that many managements had gone a long way towards abdicating authority and the power to communicate with their own employees. [end p17]

Some managements reach their employees only through the union representatives and shop stewards.

The CBI argued that management should keep all employees informed directly about all matters affecting the well-being of their company.

There are, of course, firms which already do so, and which have always done so. I hope and believe that there will be many more.

You can help encourage this. You can help bring management to a fuller understanding of its responsibilities and of the imperatives of industrial leadership. [end p18]

Conservative trade unionists can do great things because they have no divided loyalties. You are not haunted by the question: “What are we first? Conservatives or trade unionists?”

For to be Conservatives means that we put our country first in all things, before Party and before sectional interests.