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Social Contract

Volume 886: debated on Wednesday 19 February 1975

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asked the Secretary of State for Employment whether, within the social contract, employers are permitted to vary the amount paid under threshold agreements to their employees and thus to reduce differentials between one grade and another.

The application to particular circumstances of the TUC guidance on collective bargaining and the social contract is primarily a matter for the negotiators concerned. Where there is any doubt the TUC General Council has invited unions to seek its advice. To comply with the guidance, any variation of the amount paid under threshold agreements would have to be taken into account in any increase based on the rise in the cost of living.