§ Q47. Mr. Arthur Lewis
asked the Prime Minister whether, in the light of the fact that during the past year the average company executive has had pay increases of 22 per cent. taking his average pay above £10,000 per annum and a company car and bonuses worth about a month's additional salary, she will include, in her appeal for workers to restrict their wage demands, an appeal to these higher-paid workers also to restrict their incomes.419W
§ The Prime Minister
The faster those involved in pay negotiations adjust their expectations to the permitted increase in the money supply, the more the reduction in the rate of inflation will take place without bankruptcies, loss of output and increased unemployment.
This means that pay increases must reflect performance in all areas of the economy, and at all levels. But it is important to restore and maintain adequate differentials to reward properly the exercise of responsibility and initiative. It is up to individual organisations to ensure the right balance.