Profit-related pay: some reservations. New Directions in economic policy

Abstract

A consensus of sorts would appear to have been reached in the UK that the control of pay is central to the achievement of a return to full employment. This is explicit in the Alliance proposals for a tax-based incomes policy and implicit in the Labour Party's requirement of voluntary cooperation from unions in any future expansionary measures. For the government it has until recently taken the form of deregulating the labour market and leaving the discipline of competition to control pay. More recently they have embarked on a course, charted by Professor Weitzman, to change the ínstitutional basis of the remuneration system it self.