Wickham's musings from Chalke

One of the constant problems in our society has been inflation, boosted by wage and salary increases, often assisted by trade unions threatening or taking strike action.

A really right-wing solution would be to pass a law requiring everyone to tender their salary each year. Some sections of society are well insulated from the cold winds of market forces, notably the civil service. Many people running small businesses such as building sub-contractors have to tender their work. Their income depends on winning work and making a profit. Why not extend this principle to everyone?

In practice everyone would have guaranteed continuity of employment at the same salary. They would only need to tender if they wanted an increase. This would cause employees to consider their worth to their employer. If they asked for too much he might get someone else from the job market. From the employer’s point of view he would have to consider the disruption caused by employing someone new against the benefits of accepting the tender from an existing employee.

No doubt negotiation would take place but the risk would be more with the employee and inflation reduced. More employees would be prepared to continue at the same salary or a small increase if they thought their employer might get new employees.

There’s no chance of such a law at present of course, it wouldn’t be a vote-winner. However, if inflation returned in force it might have to be considered.