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That "I'm all right, Jack" stance has dealt a mortal blow to the anti-inflation wage policies of Prime Minister James Callaghan. Although his Labor government has close links with the trade unions, Callaghan has had no success in restraining workers' demands for contract settlements that would greatly exceed his 5% wage-ceiling guidelines. The dam began to burst last fall, when Ford Motor Co. workers wrested a 17% raise after a bruising two-month strike. Since then, few unions have been willing to settle for less. The truckers, for example, have spurned a 15% hike proposed...

Author: /time Magazine | Title: BRITAIN: Collapse of a Social Contract' | 2/5/1979 | See Source »

...union negotiations. More than 200,000 workers have been laid off from factories idled by a lack of raw materials and supplies. Almost $2 billion worth of imports and exports are piling up at British ports because of the union blockades. With no power to curtail the flying pickets, Callaghan has gone so far as to en courage Britons to defy them. "Everyone in this country is entitled to cross a picket line if he disagrees with the arguments put to him," said the Prime Minister last week. "I would not hesitate myself to cross a picket line...

Author: /time Magazine | Title: BRITAIN: Collapse of a Social Contract' | 2/5/1979 | See Source »

...Conservatives, led by shadow Prime Minister Margaret Thatcher, have been quick to capitalize on Callaghan's plight. In a brilliant parliamentary performance, Thatcher seemed to be speaking for the British people when she recited the lengthening litany of stoppages, layoffs, shortages and closings. "If that isn't mounting chaos," she cried, "it is difficult to see what...

Author: /time Magazine | Title: BRITAIN: Union Fever | 1/29/1979 | See Source »

...devised a formula that would grant the lower paid manual workers an increase of about 8.5%, even though the raise exceeded his guideline. But it seemed doubtful that the workers would accept the offer. Unless there was an unexpected cooling of Britain's latest bout of union fever, Callaghan's government could be doomed to the same fate that befell the Conservative government of Edward Heath in 1974. Because Heath was unable to settle a strike by the militant mineworkers' union, his party lost its majority in a general election, and he was ultimately forced to resign...

Author: /time Magazine | Title: BRITAIN: Union Fever | 1/29/1979 | See Source »

...most schools, the influx has been welcome. At the University of Southern California, which has the largest foreign enrollment of four-year institutions, the 3,700 outlanders account for 23% of the student body. Says John Callaghan, executive director for International Students and Scholars: "With the predicted decline in domestic enrollment, the slack has to be picked up somewhere if universities are to survive." At Indiana University, where enrollment dropped by nearly 4% this academic year, 1,498 tuition-paying foreign students at Bloomington contributed $1.1 million of that school's $15 million in tuition revenues...

Author: /time Magazine | Title: Education: Foreign Flood | 1/29/1979 | See Source »

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