Productivity was a more serious problem. Lack of maintenance and
capital investment during the war, antiquated machinery, the
understandable physical weariness of a labor force that had been
working at top speed since 1939 all contributed to a relatively low
rate of output per man year in industry compared with the United States.
In 1948 the Labor government took an important step to meet the problem
when it formed the Anglo-American Productivity Council. Its goal was to
increase productivity in Britain through study of manufacturing methods
in the United States. Teams representing management, technicians, and
shop workers went to the United States to study American methods. They
returned to boost British productivity.
The effort did not stop there. An independent body, the British
Productivity Council, was established in 1952 to continue the work.
Represented on it are the British Employers' Confederation, the
Federation of British Industries, the Trades Union Congress, the
Association of British Chambers of Commerce, the National Union of
Manufacturers, and the nationalized industries. Under the aegis of
the Council, Local Productivity Committees have been formed and the
exchange of information and visits between groups from industrial firms
have been encouraged.
The Council is a good example of the British approach to a national
problem in modern times. The nation's difficulties have gradually,
but not entirely, eased the old enmities between some employers and
workers. Aware of the extreme seriousness of the situation, they are
working together to boost productivity, and they are making headway.
Employer-worker consultation is becoming the rule. When the rule is
broken by either side there is trouble.
The increase in productivity has been steady. Taking 1948 as the base
year with a figure of 100, output per man year in industry rose to 105
in 1949. Save for 1952, when there was a slight relapse, the figure has
improved steadily ever since.
Production has shown a corresponding rise. The general index of
industrial production, using 1948 as the base year of 100, rose from
114 in 1952 to 121 in 1953 and then jumped to 136 for 1955. But
production leveled off in 1956. As that year ended, the expectation
was that 1957 would see a new rise in production as the capital
investment of the previous five years began to show results.
Public-domain text, read in full here on John Shaqi.
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