English price and wage control decree
United Kingdom legislation
The Ordinance of Labourers 1349 (23 Edw. 3) is often considered to be the start of English labour law.[1] Specifically, it fixed wages and imposed price controls; required all those under the age of 60 to work; prohibited the enticing away of another's servants; and other terms.
Because a great part of the people, and especially of workmen and servants late died of the pestilence, many seeing the necessity of masters, and great scarcity of servants, will not serve unless they may receive excessive wages, and some rather willing to beg in idleness, than by labour to get their living; we, considering the grievous incommodities, which of the lack especially of ploughmen and such labourers may hereafter come, have upon deliberation and treaty with the prelates and the nobles, and learned men assisting us, of their counsel ordained:
Background
The ordinance was issued in response to the 1348−1350 outbreak of the Black Death in England.[2] During this outbreak, an estimated 30−40% of the population died.[3] The decline in population left surviving workers in great demand in the agricultural economy of Britain.[2]
Landowners had to face the choice of raising wages to compete for workers or letting their lands go unused. Wages for labourers rose and translated into inflation across the economy as goods became more expensive to produce. The wealthy elites suffered under the sudden economic shift. Difficulties in hiring labour created frustration. John Gower commented on post-plague labourers: "they are sluggish, they are scarce, and they are grasping. For the very little they do they demand the highest pay."[3] On the other hand, while some workers suffered from increasing prices, others benefited from the higher wages they could command during this period of labour shortage. "The population losses from the plague caused wages to soar to levels that often exceeded those of the early 20th century",[4] peasants and laborers who had previously been tied to the land were suddenly able to demand higher wages and greater freedom.[4] Employers were then forced to compete for their labor or risk having a shortage of labor available to them. This shift in the value of labor was a key factor in the social and economic changes that occurred in Britain in the centuries that followed.
The law was issued by King Edward III of England on 18 June 1349.
The law
The ordinance required several things, including:
- Everyone under 60 must work.
- Employers must not hire excess workers.
- Employers may not pay and workers may not receive wages higher than pre-plague levels.
- Food must be priced reasonably with no excess profit.
- No one, under the pain of imprisonment, was to give any thing to able-bodied beggars 'under the colour of pity or alms'.
Aftermath and repeal
The ordinance has largely been seen as ineffective.[5] Despite the English parliament's attempt to reinforce the ordinance with the Statute of Labourers of 1351, workers continued to command higher wages and the majority of England (those in the labouring class) enjoyed a century of relative prosperity before the ratio of labour to land restored the pre-plague levels of wages and prices. While the economic situation eventually reverted, the plague radically altered the social structure of English society.[2] The sudden loss of life gave more power to the laboring classes. This also helped weaken the landed elites that had to give up power in order to stay relevant both in society and in the economy. Another thing that changed due to this imbalance of power was an increase in worker negotiating power in the British economy. This slowly led to a gradual increase in workers rights.
It was later repealed by the Statute Law Revision Act 1863 and the Statute Law (Ireland) Revision Act 1872.[citation needed]
