End the talks | IMGpapers

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The most powerful tool the ruling class has to prepare its offensive is the TUC-Government talks. These talks both imply that the working class has some interest in helping the Tories out of the economic problems that British ca patalism has created and at the sante time suggest some compromise is possible, even in the present situation. These talks lead complerely away from the urgent task of preparing the inevitable struggle, lE is obvious even to the blind that it is a massive confrontation not a cosy tea room chat which is on the order of the day. These talks must be ended. However the talks are only one of the ways in which what independence the trade unions still have under the law is being destroyed. The the capitalists: 1. To the 'allowable costs" which can be taken into account in making price rises is now to be added deprociation, What this means & that toe increased cost of replacing existing capital equipment will be paid for by the consumer, and new capital investment programmes can be partly financed by raising prices (this could be done in some cases under Phase 2 by getting spocial permission, but it now takes place automaticully). 2. Under Phase 2 a firm would bo forced to absor certain costs: those that don't come within the definition of allowable costa (such as wage rises above pay policy guidelines) and 50% of any increase in wage costs due to rises within pay guidetines (to be financed out of rising productivity). Under Phase 1 a firm will only have to absorb such costs without increas ing their prices so long as they don't cat into profits by more than 10%.

3, Under Phase 2 a company that was making a loss, or carning less than 5%6 profit on its capital, was exempted from cerlain restrictions, such as the requirement to absorb 50% of rising lahour costs out of productivity, Moreover they could tako advanlage of falling costs (o.g. through rising productivity to allow their profits to tise to tie level of 59, Under Phase 3 chie Class says is the law. This is the only way the working class has ever gone forward in its is taken from