Eight - Vauxhall and the Luton Economy to the 1950s

Summary

Introduction

Up to 1930 Vauxhall was as vulnerable to the influences within the town as the other new industries and, far from creating initiatives within the Luton economy, was often adversely affected by local pressures. Although Vauxhall had emerged from the First World War as one of the largest single Luton concerns, its size was insufficient to offset the problems which it faced within the local labour market, those of a shortage of skilled workers and high rates of pay. In addition its problems were compounded by the changing state of the national economy from one of boom to slump between 1919 and 1921, and its relative performance in the car market in the 1920s. Its posture was in essence a defensive one in this period.

By contrast after 1930 Vauxhall's growth and profitability gave it the strength to exert considerable influence on the competitive bidding for labour between Luton firms. In order to attract sufficient skilled labour, Vauxhall continually raised its level of pay so that in 1950 the local association of the Engineering Employers’ Federation complained that it was unable to counteract its influence.

Luton and Vauxhall to 1930

The period between 1916 and 1920 was a time of labour shortage due to the war and the post-war boom. Workers were able to make progress in organising themselves and as we have seen in Chapter 5, not only did unionism in Luton reach new peaks, but for the first time even female labour was unionised, though not that employed in the hat trade.

After the abolition of leaving certificates (which prevented employees moving from one firm to another) in 1917, there was considerable enticement between firms by bidding up wages in order to attract labour. Thus inter-firm competition for labour was intense. It was a time of worker offence and employer defence. During this period Vauxhall was continually forced to follow wage rises given by other companies to retain workers.

Attempts were made to control the bidding up of wages by inducing firms to join the local EEF association. In May 1919 Bedford and Luton associations had amalgamated to form a Bedfordshire association, the BEEA.

This had little short term influence due to the differing natures of the two towns. In October 1920 this was acknowledged by the fact that Bedford increased its piecework rates by 2½ per cent and Luton by 4 to 5 per cent.