Great Britain: The Pause That Depresses

In a valiant attempt to improve Britain's competitive position in world markets, the Conservative government last July declared its intention of keeping pay raises in line with the nation's 2.5% increase in productivity. The Pay Pause, as it was christened, saved British industry the equivalent of one year's round of wage boosts, giving Britain an immediate edge over leading European competitors such as West Germany, which has been hit with a heavy increase in labor costs over the past year.

From the start, however, labor unions and the Labor Party have bitterly opposed the Pay Pause as an "inequitable" policy...

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