Wage rates: will they be contained?
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AMONG the topical subjects discussed by the British Association of Removers at last week's Autumn Conference in London were wage rates during the anti-inflationary policy; the usefulness of FEDEMAC—the Common Market organisation of Removers' Associations; and the effect of the Capital Transfer Tax on small family businesses. A major item, dealt with at an extraordinary general meeting, concerned the finances of the Association.
Speaking for the board of management, Mr Gilbert Over proposed that the basic subscription for all members should be increased to £30 with an additional supplement of £10 for members of the Inland and Overseas Groups. There would in future—if members agreed—be a UK vehicle supplement of £10 for operators of a single vehicle rising to £40 for operators of six to seven vehicles.
The maximum subscription payable by any company should not be less than the present maximum of £400 and the officers would have the power to negotiate a higher subscription in line with inflationary costs.
BAR president, Mr John Tarsey, said the board had discussed the Association's impending financial crisis for six hours. There was no wish to cut services provided, though every possible economy was being looked at.
Mr Over said that without a special levy in September BAR would have incurred a loss on the year of £9,000 to £11,000. The board had budgeted for a loss of £6,000 hoping that profits from the Journal and increased membership would enable the books to balance. But the membership drive was less successful than had been hoped. Membership was being maintained or slightly increased, but there were lost members owing to business failures, retirements, mergers and takeovers. The recent levy would bring in £13,600 and it was thought that the proposed new level of subscriptions would leave a surplus of £4000 to £5000 at the end of next year.
One suggestion from the floor in a short debate was from Mr Des Shaw (F. W. Shaw and Sons (Worthing) Ltd). He thought the Association could be run in turn by areas in the country, beginning with Home Counties and South. This, he believed, would save members a lot of travelling costs.
The meeting endorsed the higher subscriptions by 92 to 0 against, with one abstention.
In a brisk debate : "Wage rates under the Government's anti-inflationary policy" when Mr J. G. Boxall and Mr J. A. Luxford, both of the labour relations committee, were principal speakers, a number of members expressed fears of the effect of increased trade union membership on wage rates.
Mr Boxall outlined the main terms of the anti-inflation package, stressing that the TUC was claiming £6 all-round increases for adults whereas the Government said this was a maximum figure. The £6 maximum, said Mr Boxall, would not apply to women, in view of the equal pay legislation. Merit payments should come from within the £6 limit and even pensions adjustments effectively giving increased pay would have to come from within the £6.
Mr Neil McIntosh said that each area of the RHA was forming a "JIC" committee and he wanted BAR to be represented on such committees.
Mr Michael Scott said that a handful of sizeable firms liaised direct with trade unions, but 95 per cent of BAR members did not. He thought an industry-wide wages agreement would be unhelpful to most BAR member firms. What hap pened after the £6 limit ended?
Mr Ken Darvall described from his own company's experience what followed the sacking of a driver, with a subsequent appeal to an industrial tribunal. Trade unions, ne said, noted possible trouble-spots and immediately began a recruitment drive. There was a very rapid increase in trade union penetration of small firms as a result of labour relations legislation.
Mr Michael Scott thought BAR should liaise with the RHA since the £40 drivers' settlement had affected all removers. He feared a union claim next time of £15 for drivers and maybe £25 thereafter.
Mr Luxmore said member firms must take a reasonable line on wages ensuring that staff were not falling too far behind rival firms in the vicinity. He thought the staffs of many small removers were reasonable people and it should be possible to negotiate sensible wage settlements in .present conditions.
What price FEDEMAC?
Mr Gilbert Over, BAR's delegate to FEDEMAC the Common Market group of removers' associations introduced a discussion: "FEDEMAC. What do we get out of it?"
In money terms, said Mr Over, BAR's membership of FEDEMAC cost about £5 of each membership subscription, with a total subscription of about £4,000. Next year the cost would be more, and escalation thereafter was likely. Mr Geoff Pygall thought it would be possible to make representations to the Brussels Community through our own Government.
Mr Len Cox noted that FEDEMAC was seeking to establish standard conditions of carriage in the Common Market and the attitude of Governments and of such bodies as the Office of Fair Trading to the views of FEDE MAC had yet to be determined. Mr Over pointed out that in the Common Market Governments were often at odds with Trade Associations. He thought BAR might regret it if they resigned from a body that could be seen as an insurance policy.
Mr Roy Walker spoke for many members when he declared that FEDEMAC was "a shadow within a shadow ". "Apply muscle where you can ", he said. "If I had £5,000 to spend I'd prefer to buy the services of MPs or others to promote our industry."
Mr John Tarsey said the Board would shortly consider the question of continued membership in FEDEMAC.
Considerable interest was evinced when Mr Richard Rigby, senior training officer, Road Transport Industry Training Board, spoke on "The Capital Transfer Tax ". The new tax was of major significance to small firms, said Mr Rigby, and he advised member companies to take advantage of all the exemptions available.
Great care was necessary in dealing with the " accumulator principle ", said the speaker. Anyone giving money to a number of children, in stages, could find that the tax man would exact a penal sum from, say, the third or fourth beneficiary. If it was desired to apportion the money equally it was a considerable exercise to ensure that inflationary effects and the incidence of tax bore equally fairly on all concerned.
One possible idea, said Mr Rigby, was for a business to be passed from a grandfather to a grandson, to avoid tax having to be paid on transfer between each generation. Everything possible must be done to safeguard a company's assets.
Mr Rigby's advice, in a nutshell, was that businessmen should take great care to consult well qualified accountants and solicitors, ensuring that the two professional advisers employed got on well.