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Works councils: do they offer a solution for the present day industrial problem? Reid, Mary Lillian 1923

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v7 o  j i t - ? *> d  ^ b ft* 4# * ££^7 Tvi^S.do J^ei Jl Works Councils Do they offer a Solut ion for the Present day Industrial Problem? by Mary Lillian Reid. A thesis submitted for the Degree of Master of Arts in the Department of Economies. The University of British Columbia, April. 1923. TABLE Of CONTENTS. Chapter !• Chapter 2. Chapter 3. Chapter 4, Chapter 5 . Chapter 6. Chapter 7 . Chapter 8 . In t rodno t ion . The I n d u s t r i a l Problem. Co-operation. Great B r i t a i n , (a) The Shop Steward Movement. (b) The Whitley Soheme. (o) The Quaker Program. (a) The United S t a t e s . Beginnings. The Packard Plan. The Colorado Plan. The national War Labor Board. (b) Canada . Principles Underlying Works Councils. Benefits and Shortcomings of the Works Council. Works Councils and Organized Labor. Conclusion. Bibliography. fi) Works Gouno11a, Do they offer a so lu t ion for the Present day I n d u s t r i a l Problem? In t roduc t ion . The purpose of t h i s t h e s i s i s to i nves t i ga t e the r e s u l t s being obtained through Works Councils with a view to a sce r t a in ing whether they w i l l serve as a so lu t ion for the present day i n d u s t r i a l problem, which i s b r i e f l y , the e s t a b l i s h i n g of r i gh t r e l a t i o n s between th e employer and the employed. Developments in three count r ies only w i l l be considered, Great B r i t a i n , the United S t a t e s , and Canada. In view of the great i n d u s t r i a l unres t p reva i l ing a t the present time i t i s well worth while experimenting with var ious schemes that may offer r e l i e f , and i f they do not give promise of a complete so lu t ion of the problem they may a t l e a s t provide a foundation fo r future work. I f the found-at ion be well l a i d the p o s s i b i l i t y of future success wi l l be increased . ( i ) This term i s intended to include a l l forms of employee rep resen ta t ion , and di f ferent forms of co-oper-a t ion between employers and employees. a. Zt soom s t o b e th e consensus o f opinio n tha t the solutio n l i e s i n th e r e at oration o f th e persona l element int o Industria l r e l a t i o n s . I t i s sai d ora r and ora r agai n tha t i f onl y th e ol d persona l relat ion e hip eomld b o restore d so tha t employer s an d employe e a ooul d understand each others problems, and point of view , poao o and haimony would r e s u l t . I t i s , I t h ink , generall y acknowledged tha t the workers are i n t e r e s t e d in somethin g beyond hipfrer wa^es and shor t e r hou r s . They hare come to the r e a l i z a t i o n of the faot that they hare not been aocorded t h e i r proper plaoe in s o c i e t y . They demand recogni t ion as human be ings . We reoognize that there are tv/o immediate p a r t i e s to i ndus t ry . Capital ( including management) and Labor, and tha t eaoh must make a cont r ibu t ion i f the purpose of indus t ry , namely Service, i s to be aohieved. The con t r ibu t ion of c a p i t a l includes money, management, machinery, the processes of manufacture, e t o . Labor 's cont r ibu t ion i s the l i f e and s t rength of the worker. I s Labor t o be denied a f a i r re turn on i t s investment? What exact ly i s the C a p i t a l i s t ? He i s a man possessed of human sympathies, human s t r e n g t h , human fallings. And the Laborer, i s he a mere machine to be replaoed by another? He has ecual endowments ?7ith th e 3. o a p i t a l i s t , though i t may be tha t circumstances have prevented the f u l l development of h i s powers to the same extent as those of the o a p i t a l i s t , . I f then o a p i t a l i s t and l a b o r e r are of the same s tu f f how can i t be assumed that they are an tagon i s t i c to each o ther fundamentally. The c a p i t a l i s t suppl ies the mate r ia l s to work wi th , the management to cont ro l condi t ions of work, the l abore r supplies the power to transform those ma te r i a l s i n to f inished p roduc t s . Thus Capi ta l and Labor should be considered complementary - the one cannot work without the o t h e r . But as long as Capital p e r s i s t s in looking upon the worker as a par t of the machinery of production, and Labor p e r s i s t s in regarding the o a p i t a l i s t as a tyrant ready t o drive the wox-ker to the l a s t d i t c h , so long w i l l the i n t e r e s t s of Capi tal and Labor seem an t agon i s t i c , and so long w i l l i n d u s t r i a l unrest p r e v a i l . At one time we had autocracy in government, when the people became fu l ly aware of t h e i r s t reng th they arose and put down the au toc ra t , and es tab l i shed the rule of the people - Democracy. But the au tocra t s t i l l ru les in i ndus t ry . Democracy in government -autocracy in indust ry - are the two compatible - ha rd ly . I t i s often maintained that i f the worker i s well provided for and kept contented, nothing else i s necessary. Judge Gary said when addressing the Pres idents of the subs id ia ry companies of The United S t a t e s Steel Corporation ( Jan . 21 , 1919,) "make the Steel Corporation a good place for them (the worker) to work and l i v e . Don't l e t the fami l i es go hungry or cold; give them rslaygrounds and parks and schools and churches, pure water to d r ink , every opportuni ty to keep c lean, p laces of enjoyment, r e s t and r ec rea t i on : t r e a t i n g the whole th ing as a business p ropos i t ion ; drawing the l ine so that you are Just and gene rous and yet a t the same time keeping your pos i t ion and permi t t ing others to keep t h e i r s , r e t a in ing the control and management of your a f f a i r s , keeping the whole thing in your own hands, but never the less with due considerat ion to the r i g h t s and i n t e r e s t s of a l l o t h e r s , who may be affected by your management." In o the r words t r e a t Mm as you would your animals but don ' t give him the opportuni ty to t h i n k . This i s autocracy - mild and benevolent - but nevei ' the-l e s s eppressifeie . The worker demands the r i gh t to th ink , to express himself . Of course I do not wish to imply that a l l workers have reached th i s s t a g e , but the leaders and the more advanced th inkers among the vorfcers have, and what they demand for themselves they deaaand f o r a l l . ( i ) Quoted,Baker, Ray Stannard- "The New I n d u s t r i a l Unrest, Reasons and Remedies", page 19» 6. some worker s har e no t ye t passe d th e s tag e wher e a l l the y wish i n horte r hour s an d l a r g e r pay , bu t wit h th e prope r l eadersh ip an d l n s t r u o t l o n the y ca n b e brough t t o a  f u l l e r r e a l i s a t i o n o f th e th ing s tha t r e a l l y count . he n machinery wa s bein g introduce d i t wa s claime d tha t th e wo ike r woul d b e n e f i t b y havin g mor e tim e t o think , h i s a t t e n t i o n woul d no t alway s b e un i t e d t o h i s work . Bu t the monoton y o f th e wor k whe n s tandardise d wa s s o grea t that th e thinkin g f a c u l t y o f mos t o f th e worker s wa s deadened, an d th e fe w wh o di d thin k di d no t d o s o alon g th e l i n e s the y wer e expecte d t o . H e di d no t beoom e con -tented wit h h i s poni t io n bu t becam e degrade d t o th e plane o f a  machine . Why an d fo r who m I  kno w not , I oar e n o t , 1  as k no t , I a m a  machine. " A oondi t lo n o f mind  t o b e des ired ? I  thin k n o t , desp i t e Judge Gary' s pronouncement * The oonsoieno e o f th e employer , i f h e eve r ha d one, ha s becom e deadene d s o fa r a s h i s employee s ar e oonoerned. H a adopt s t h i s a t t i t u d e , "M y employee s hare n o i n t e r e s t i n ray  b u s i n e s s , a l l the y wan t I s shor te r hours an d greate r wages , withou t l i v i n g anythin g i n re turn . Therefor e t o rroteo t mysel f I  mus t driv e the m 6. to get the most I can ," And he might add, to give the l e a s t . The worker on the o ther hand w i l l say,"He cares nothing fo r me or my i n t e r e s t , a l l he wants i s t o get a l l my l abor for the l e a s t he can, to reiake a machine of me. Therefore to p ro tec t myself I s h a l l have to give as l i t t l e and get a s much as I can ." Thus both p a r t i e s are driven t o extremes. The worker thinks of the huge p r o f i t s the c a p i t a l i s t i s making, while the employer i s t a lk ing about going bankrupt . A mat te r of viewpoint. Unrest , d i scon ten t , hatred grow g rea t e r as the years pass on. When i t I s r ea l i zed tha t service and not p ro f i t s i s the ohief end of indus t ry a new era w i l l dawn. When the c a p i t a l i s t and the worker r e a l i z e that soc ie ty demands a recogni t ion as a par ty to indus t ry , and tha t industry can ex i s t only so long as i t renders servioe to soc ie ty , then we may look for a change of a t t i t u d e . At present both p a r t i e s hold extreme v iews . May i t be that through the in t roduct ion of the Works Council a more moderate view may come to p reva i l ? That as a r e su l t of discussion and consul ta t ion something of order and harmony may be broxight out of the chaos and discord t ha t ex i s t ? I f so , then i.orks Councils w i l l have served t h e i r purpose wel l , i f no t , they wi l l have added one more chapter co the experience of men. 7. Chapter 1. The Industr ial Problem. The fundamental problem we are trying to solve today i s how to eliminate from industr ia l re la t ions the hatred, s t r i f e , and dis trust whioh make for the indust-r ia l unrest , which seems to threaten the very foundations of our industr ial l i f e . Indust r ia l unrest , or res t lessness , in i t se l f , Is not a bad thing, i t may indicate a healthy condition in industry as lack of i t would almost mean stagnation. But conditions today seem to point to something fundamentally wrong in our industr ial system, certain di f f icul t ies which while accentuated by the war and the necessary years of reconstruction following the war, cannot be di rect ly traoed to that catastrophe. True the war meant the almost complete remodelling of industry, more par t icu lar ly in Great Bri ta in . The production of materials of war was then the f i r s t consideration. Every day wants came a f t e r . Countries were l iving on their stored up capi ta l , plants were allowed to deteriorate, especially those less direct ly associated with war work, and in many ways national car: i t a 1 became depleted. I t has been urgent since the war to replenish tha t nationa l oaplta l an d t o maintai n o r increase th e nationa l Income, bu t in so doing the worker's olaims fo r reasonabl e l e i s u r e , an d a n opportun -ity fo r hi m t o kee p himself f i t fo r work should not be sacr i f iced fo r e f f i c i en t production , fo r nationa l prosper i ty ha s i t s foundation In the sooia l wel l -being of a l l c l a s ses in s o c i e t y , "At th e back of the rinergenoy and the Constructive Problems l i e s the h o s t i l i t y between Labour, Management, and Cap i t a l , whioh h a s , in the pa s t , proved the g rea te s t obstacle both to i n d u s t r i a l e f f ic iency and socia l p rogress , and whioh now threa tens us with a o r i s i s the dangers of which I t I s not easy to exaggera te . " ' ' I t i s , then, in the r e l a t i o n s between the p a r t i e s to industry tha t the root of the t rouble l i e s , and i t i s here t ha t changes i l l have to be made i f condi t ions are to be improved. Our i n d u s t r i a l system today r e s t s on a f a l se b a s i s . Indus t ry cannot be based successful ly on a money b a s i s , tha t is i f we do not regard indust ry merely as a  profit-making machine, the desire of the c a p i t a l i s t to fret as large p r o f i t s as p o s s i b l e , and the existanoe of only a money t i e between the employer and the employee. I f we are to aooept the idea of indu3try aB (1) "Memorandum on the I n d u s t r i a l S i tua t ion a f t e r the War." Carton foundation, London. Harrison & Sons, 1919.ng. 126. t. ex i s t i ng to render service to soc i e ty , and what o the r end i s there for i ndus t ry , then we must r e j e c t that of personal gain and replace i t with the idea of no personal advantage without equivalent s e r v i c e . Industry has been looked upon as a means of ge t t ing as much of t h i s world 's goods as p o s s i b l e , with the l e a s t e f f o r t . In r e a l i t y " i t Is the means v/hereby men combine to produce for themselves and for eaoh o the r the mate r i a l th ings which are necessary for the preserva t ion and enjoyment of l i f e f " f 8 ) We are given as the t e s t s of any i n d u s t r i a l system, " 1 . The success which i t achieves i n supplying the publ ic need for a r t i c l e s of use or beauty; 2 . The opportuni ty I t affords to those engaged in i t to put fo r th what power i s in them, to fee l t h a t they are doing t h e i r b i t . " f2) I t i s not enough tha t the c a p i t a l i s t or employer should be given an opportunity of d isplaying his spec ia l a p t i t u d e s ; the worker a l so has h i s g i f t s which can be used f o r the benefi t of i ndus t ry . Unt i l he i s allowed not only to use these g i f t s , but i s adequately rewarded fo r the contr ibut ion be may make t o industry through t h e i r proper u s e , he I s not being given his due. Labor has come t o know i t s power. I t r e a l i z e s (1) I b id , page 2 1 . (2) I b id , page 21-22. 10, that i t is indispensible to industry and the workers are demanding the right to be recognized as equal par tners , with equal r e spons ib i l i t i e s . Unti l the workers have held out to them the hope of a betterment in the i r condition, whioh involves an improvement in material conditions and in s t a tus , they wi l l continue to s t r ike and to do inefficient work. She s t r ike i s an effective though inefficient weapon. Inefficient in that while i t may se t t l e the immediate diff iculty to the sa t i s fac t -ion of a l l the par t ies i t never, or rare ly , solves the real diff iculty which i s at the root of the d i f f icu l ty . If labor is defeated the workers are sullen and host i le and do the i r work ineff ic ient ly . I t involves hardships and privation for the worker and the material advantages gained are largely offset by the suffering entai led. Discontent often has i t s root in pet ty things which are not attended to in the right way and at the right time and remain to rankle in the worker's mind causing him to be careless about his work, whioh wil l lower production as surely as wil l a oessation of woik* Men wil l not work well i f they are surrounded by an atmosphere charged with discontent and d i s t ru s t . Small things become magnified - mole h i l l s become mountains, and i t takes l i t t l e to cause an open break. l i t In the memorandum on the I n d u s t r i a l s i t u a t i o n a f t e r the war, Issued by the Garton Foundation, are l a i d down to guide us in a so lu t ion of the i n d u s t r i a l problem. "(a) The f i r s t necess i ty of the I n d u s t r i a l S i tua t ion i s g rea te r e f f ic iency of production* In order to meet the d i f f i c u l t i e s crea ted by the war, to make good the l o s s e s of c a p i t a l , and to r a i s e the standard of l i v i n g amongst the mass of our people, we must endeavor to inorease both the volume and the qua l i t y of output* (b) In order tha t t h i s r e s u l t may be obtained with-out detr iment to the soc i a l welfare of the community, i t must be sought for r a t h e r in improved organizat ion and the e l iminat ion of waste and f r i c t i o n than in adding to the s t r a i n on the workers, and must be accompanied by a change of a t t i t u d e and Bpi r i t which wi l l give to industry a worthier and more c l e a r l y recognized place in our na t iona l l i f e . (c) This can only be accomplished if the s ec t i ona l treatment of i n d u s t r i a l quest ions i s replaced by the ac t i ve co-opelat ion of Labour, Management^ and Capital to ra i se the general l e v e l of productive capac i ty , to maintain a high standard of workman-sh ip , and to improve working cond i t ions . (d) I t i s es sen t a i l to the securing of such cooperat ion tha t labour , as a pa r ty to indus t ry , should have a voice in mat ters d i r e c t l y concerning i t s spec ia l i n t e r e s t s , such as r a t e s of pay and condi t ions of employment. I t i s necessary t o c rea te adequate machinery both for securing uni ted act ion in the pu r su i t of common ends and for the ec u i table adjustment of points which involve competing i n t e r e s t s . This machinery must be s u f f i c i e n t l y powerful to enable both sides to accept i t s decis ions with confl dence that any agreement a r r ived at w i l l be genera l ly observed." (1) (1) Memorandum on the I n d u s t r i a l S i tua t ion a f t e r the War, Garton Foundation, pages 137-8. 1 2 , I t i s important to note that the f i r s t necess i ty of the i n d u s t r i a l s i t u a t i o n "grea te r eff iolenoy of production" w i l l be met only through the ac t ive cooperation of Labour, Management, and Capi ta l , which wi l l r e s u l t in improved organizat ion and the e l iminat ion of waste and f r i c t i o n . This can be brought about only by recognizing Labour as a par ty to i M u s t r y , and giving i t a voice in a l l matters which d i r e c t l y concern i t . The great obs tac le to the gaining of cooperat-ion i s the question of the s t a t u s of the worker. The development of large sca le production and the consequent concentration of c a p i t a l in the hands of the few has given the c a p i t a l i s t an advantage over the worker. The laborer cannot bargain on equal terms with the employer. The l o s s of one man to a la rge corporat ion may be r e l a t i v e l y small , but the l o s s to t h a t worker through unemployment may be i r r e p a r a b l e . The only e f fec t ive means the worker has of defending hlB claims are the labor union and the s t r i k e , and we have shown the l a t t e r method to be a doubtful good. The foundation of i n d u s t r i a l p rosper i ty i s production. But both i n d u s t r i a l p rosper i ty and production a re subordinate to soc ia l p rogress . A country cannot be counted prosperous i f the mass of i t s people l i ve under oondit ions which make i t impossible for I S . thea * • Urm  deeeat ly , wit h tla a fa r th a goo d thing n « f l i f v a a m i l u  f t r t h i dradgary * 1s t M A play a aaa h • lata * par t l a th e l i r e a a f Ma t M B , and woaaa , tha t i t s aatara , an d th e aonditlon a unde r whia h I t l a dan * abtmld aa t h a degrading * Thoe e employe d 1 B laftaatr y shaald faa l tha t the i r nod e l a aoaathla g worth y o f thai r e f fort , an d thai r ahar a o f th a fiMahe d pradaa t shoul d a a a fa i r raeomnens*. Tha aro x a f th a whal a quaa t Ion l a th a ralatlo a between aaployer a and employed* I t l a assume d h y hot h that tha i r lntereat a ar a a n t a g o n i s t i c , and n a t u r a l l y tha y t l f the i r bes t to mak e the i r assumption t rue* But i n real i ty t h e i r I n t e r e s t s are oonourrent as regards i roduotion, for the amount avai lable for d i s t r i b u t i o n depends upon the amount produced. They are both latereeted l a inerease d e f f ic iency of production whia h meana equal or improved output a t l e s s cost to the employer and 1th l e s s s t r a i n t o th a worker * Their i n t e r e s t s ma y seem an tagon i s t i c as regarda dlatr lhut lo a baoaus e i t l a t a th a lntereat a a f eich to secure as large a  shar e o f th a wealt h produced aa l a paaalhla * But i t i s a l so to the i n t e r e s t a f th a eaployar tha t th a worke r should har e th e l a r g e s t oppartanitlea o f l i f e l a orde r t o permi t h i a t o d a hi a warn* e f f i c i e n t l y . I t la eapeoial l y neoessar y tha t 14. the worker should receive a l iving wage, by that i t i s not meant merely enough for him and his family to subsist on, and that hours of work should not be too long, to lead to over-fatigue. Then i t is to the in te res t s of the worker that the industry in whioh he i s engaged should be prosperous in order that he may have work. So while t h e i r in te res t s in this f ield may be par t ly opposed they are not wholly so. Then i f i t is shown that t h e i r in te res t s are only pa r t i a l ly opposed as regards d is t r ibut ion and are not rea l ly opposed at a l l as regards production, i t wil l be possible to effect a compromise and thus establish the basis for co-operation. I f we study the functions of Capital, Manage-ment, and Labor we will see how interdependent they are , and how impossible i t i s for any one of them to do i t s work properly without the hearty co-operation of the others. Capital is necessary for the erection of plant , for the purchase of raw materials , and for working expenses. Management i s concerned with the dispos-i t ion of the capital supplied, and with the general organization of the business. Labor undertakes to transform the raw materials into the finished product. The functions of these three partners are in te r re la ted , and so long as they are separated by a r t i f i c i a l barriers fr ict ion wil l r e su l t . The f i r s t requisi te in . saaalala* a f tiM  a f fa i r * « f * • > l l l M I I , Ba t a t p i n — U k t r tea  U t i l e a r a a taaalila a a f t M aattra a •jaaBBBB aBBB/a^a r ^ pB B BF a» BBBiB* BBB ; ^ BBBBBBB^BBBaBBBBB j w w  ' * ^ ' " ^ » T ^ " ^ " * ' " a | ^ BBBBBBB j H I alsvat a i r l M U b t r aaa a U  I I M  attaaa t i s >a * aaajtalag •»•» • aa l a  amaiatar a aattl a vasa l ta« A t • • • — • • • aaaata a A M afta a siearaaartlaBat a t a ta a l l l i l l B i l a f t a a M t « l B * i a * a t l N M . l a siaa r t a aria s »Wi t tai a aalr l t a f t i i | i i i l U i ma w ama t a a a  aaaat a « f a t t i ta i a U lasaatsy« fa s N f i m t l M a f laaaatr y aaai , haaaa»* # p N M t l fTCB J v i ta la. Aa r attaaa t t a fars a ahajna a frs a stfasat a l l l laa t t a fallas a aa i paasial a Alaaatsr . •afaaa fra a attaaa t aa j alas s a  aaaa k a a aaaas a sa t i t • • M il i m l i a  faa l la t a f aasaaflatia a a r tam i aalal t a f a t tUaf Baaaa a Barriaa . "Waa t i a I N I I ! l a taa t l a i a t i j ataal l sasjaaia a l taa l f fa r ta « parpas a a f ralstas aat a ik a staaaar i a f pia4aatta a aa 4 ta a Btaaiars a • f ta iaatr la l U f a aa a abaraata r i a a  l is te r l m l . " ( 1 ) U t t e r BBBlerera * Aaaeeietiaa a i M TraA e Dale s e eeal s arias laiaetr r i a eaatraatls a teat  oasi s aa i stasi a Basts* fssa e i t i a a  f lraa r aeaia . Taa p Mt sea t U | H l i i . fa e eol r aa y t o ae»eanlle a tal e l a i a arias . (1) • I B I I J S I B B i a "fa s Xaftaatrla l i l taai ia a afta r aai BET * pas s as * 16. the tw o oppooln g f  notions I t g t t l i r , go t th o employe r u i ttM n a « d U i fo r th o orga n 1 notion « f th e h m a t H t o M l t n t M i th e pooltio n o f th « worker , an d t o gir o th o .vozkcr a ro ioe in the counolls of indus t ry , l o t bi n bor o o por t I n do t • m i n i ng the oonditlomo moto r whlo h h o w i l l work, that b y working toge the r the j wa y mak e i n i n o t r j o worthier th ing , and the p o s i t i o n of the worker o  nobl e one. I f through oooperation the r ight r e l a t i o n s between employer and employed a re es tab l i shed the •Problem of I n d u s t r y ' w i l l solve i t s e l f . IT. Cheater I I . Oa-apsratloa. M«ntloa wa s mad s l a th e preoeedla g chapte r o f ths aeoess l t y fo r oe-operatlo a betwee n th o employe r aa d the oBployoo . I t l a aeoesaar y tha t thar a h a a oonsolousneee o f a  eommo a ai m l a a  oomao n vesture , o r o f a partnership . Bot h employe r an d worke r invss t oomething I n th e industr y i n whio h the y ar e Jointl y engaged. Iareetaea t l a induetr y i s usuall y reoogniee d as affardla g a  righ t t o a  shar e i a aorporat e oontrol . Uatl l th e pr e Beat th e employe r oal y ha a ha d a  roio e l a the oontro l o f industry , bu t th e tim e ha s oom e who a th e wo iker to o i s t o hav e som e par t l a direatla g th e buolaea a fa ahie h h a invest s hi s l i f e . "Partnershi p l a e s sen t ia l l y a  matte r o f s t a t n s . I t doa a ao t Involv e ldeat l ty o r a ladlar l t y o f funatlo a o a th e par t o f th o nartners, o r equalit y o f e i the r service s o r reaarda ; ha t i t doa a impl y eqaalit y a a respeot s th e righ t a f re pre cent at lea i n th e determi m tlo a o f polio y o a natter s of oommo n in teres t . " Co-operation i n oontro l o f industr y doe s ao t aeeeeaarily aaa a oo-operatio n I n ownership . Worker s (1) King , a s . Lyo a MoXeasie , "Industr y aa d Humanity" , Ghapt. I , pg . 869 . 18 . con t ro l i s an e l a s t i c term, i t may mean much or i t may mean l i t t l e . The degree of con t ro l w i l l be determined in grea t par t by the capaci ty of the worker f o r c o n t r o l . I t i s often Maintained, and with a goodly amount of t r u t h , that the worker i s incapable of tak ing pa r t in the d i r ec t ion of i ndus t ry , and tha t he i s unwil l ing t o assume r e s p o n s i b i l i t y . We must, however, make due allowance fo r the faot t ha t lack of experience in l a rge measure accounts for h i s incapac i ty , while freedom from respons-i b i l i t y makes him unwil l ing to accept i t . As the worker gains experience h i s outlook w i l l grow, and as i t grows so w i l l h i s wi l l ingness to accept r e s p o n s i b i l i t y grow. The average working man i s quite capable of thinking , and he w i l l i n s i s t upon th ink ing , whatever h i s employer may say or do. Moreover, he w i l l be influenced, among o the r t h i n g s , by the a t t i t u d e of h i s employer towards him. He w i l l be influenced by working dondi t ions , by the wages he r ece ives , by the p r o f i t s h is employer makes. There may be a great deal of t r u t h in the following s tatement , but I can hardly agree with i t e n t i r e l y ; "Give your workmen good wages, proper wo iking condi t ions , and a production eff ic iency bonus, and he w i l l work h i s hands off. I n c i d e n t a l l y he w i l l 19. refuse to oare whether you make 10$ p r o f i t or 100$." ' What functions and powers can be devolved on t o the workers, and what questions usua l ly considered p r i v a t e can be made subjeots for explanation and consid-e r a t i on? Any scheme of co-operat ion should begin with subjects which a re of common i n t e r e s t , and p a r t i c -u l a r l y those where there i s l i k e l y to be cause for d i spu t e s , wages, working cond i t ions , pieoe r a t e s , hours of work, e t c In p a r t i c i p a t i n g in the cont ro l of industry the workers w i l l have to take r e s p o n s i b i l i t y but they w i l l a l so have to be given a u t h o r i t y . "The permanence of employees' i n t e r e s t in the p lan (of r e p r e s -entat ion) i s l i k e l y t o be in propor t ion to the amount of au thor i ty exerc ised by them, and in proport ion to the amount of au tho r i t y invested in the represen ta t ive bodies (2) orea ted ." Go-operation in the cont ro l of indus t ry w i l l not be poss ib le without consul ta t ion and d iscuss ion , and i t i s often maintained t h a t i t takes too much time to hold jo in t conferences to th resh out d i f f i c u l t i e s . May i t not be t rue that more time i s gained by the absence of disputes than i s l o s t by the presence of discussion? St r ikes are often the r e s u l t of d i s p u t e s . (1) Anderson, R .J . "Cap i ta l , Labor and the Pub l i c" . I n d u s t r i a l Management, February, 1920. (2) Tead and Metcalf, "Personnel Administrat ion", page 416* 2 0 , "The most important s ingle cause of s t r i k e s Is laok of und e r s t an ding between employer and employee, genera l ly due t© the faot t h a t employers and employees do not get (1) together as they could and should." Th e secret of avoiding s t r i k e s l i e s in personal contact and the gaining of an understanding of the opposing opinions and view-p o i n t s . Men have ce r t a in convict ions as to how they should be dea l t wi th , and i f they feel tha t they are being t r e a t e d as i n f e r i o r s and machines there i s almost c e r t a i n to be t r o u b l e . Most men i f given the f ac t s of the case w i l l ac t reasonably. Through round table d iscuss ions and personal t a l k s they can be given the information necessary to help them form an unprejudiced opinion* I f they are kept in the dark as t o the reasons for c e r t a i n ac t ions they are almost ce r t a in to draw wrong conclusions as to the reasons . There i s much to be gained through cooperat ion between employers and employees. The workers are thoroughly acquainted with the machinery with whioh they work and the nrooesses of t h e i r work, and are in a pos i t ion to make suggest ions as t o how ohanges and improvements may be made. They need to be encouraged to make suggest ions , and oan be by being given assurance (1) Interview with John Hays Hammond, by W.3. Stoddard. "Str ikes and How to Avoid Them", I n d u s t r i a l Management, February 1, 1921. 2 1 . tha t any ideaa they may put forward w i l l be considered and i f accepted the o r i g i n a t o r w i l l be rewarded* I f the plan i s not p r a c t i c a b l e and the reasonswhy i t i s not are given the worker w i l l hot fee l that he has been s l i gh t ed ; and he w i l l not be backward about present ing ideas in the f u t u r e . Such cons idera t ion w i l l increase the workers ' respect fo r the management and w i l l a lso increase t h e i r own s e l f r e spec t , r e s u l t s not to be l i g h t l y thought of. There i s much pioneer wosk to be done in c l e a r -ing away the antagonism and stBpicion which i s the r e su l t Of long years of au toc ra t i c control in i n d u s t r y . We must destroy the d i v i n i t y which doth hedge the management of a bus iness , and introduce a l i t t l e more of democratic c o n t r o l . "The hope of the future l i e s in the pe rpe t -uat ion of t h i s s p i r i t , (of cooperation) and unless increas ing ly i t i s made the foundation of the p o l i t i c a l , soc ia l and i n d u s t r i a l l i f e of the world, there w i l l not be permanent peace and goodwill among men e i t h e r na t iona l ly or i n t e r n a t i o n a l l y . Moreover, there i s no problem press ing more urgent ly upon the a t t e n t i o n of the world today than the i n d u s t r i a l problem, none more important, none more d i f f i c u l t of s o l u t i o n . . . . . . . . . . . I t s solut ion can be brought about only by the in t roduct ion of 82. a new sp i r i t into the relationship botween the part ies to industry - the sp i r i t of oo-ot>eration and brother-(1) hood," (1) John D. Rookeftiier, J r . "Co-operation in Industry." International Lnbor Reriew. 23. Chapter III. Great Britain* Having considered the necess i ty for c lo se r co-operat ion between employers and employees l e t us now examine the machinery which has been created to f o s t e r tha t s p i r i t of co-opera t ion , and designed to put into p rac t i ce the theor ies which have been f o m u l a t e d . For the sake of c l ea rnes s , and also because of the d i f ferences in i n d u s t r i a l organizat ion in Great B r i t a in and America, we sha l l consider them s e p a r a t e l y . In Great Britftin about 85$ of the workers are organized into Trade Unions. In America the percentage of t p  ) workers organized i s considerably lower. a ' There i s a l so g rea te r organizat ion on the par t of the employers in Great B r i t a i n . - Any scheme for improving i n d u s t r i a l r e l a t i o n s in Great Br i t a in could not ignore t h i s f a c t . I t accounts for the apnarent disregard of unorganized labor by the Bhi t ley Scheme. (1) A. Rowland Entwhis t le , "Scope, Purpose and Effects of the uTiitley Scheme", I n d u s t r i a l Management, Ju ly , 1920. (2) Aocording to the "American Federation of Labor History, Encyclopedia, Reference Book", issued in 1919, somewhat more than 4,000,000 workers were organized in the United States a t that t i n e . Jus t what percentage t h i s i s of the t o t a l number of workers in the United States I do not know. 24. (a) The Shop Steward Movement. "Organization based upon the workshop i s c lose ly connected with the po l icy of c o n t r o l . Control by workers oyer the workshop neoessa r i ly c a l l s for an organizat ion embracing the workshop, and such organ-i z a t i o n tends r e c i p r o c a l l y t o c a l l i n to being the Policy of Control" , ^ The Shop Stewards Committee was a concrete manifes ta t ion of the idea whioh was l a t e r to find a f u l l e r expression in the Whitley Councils . They formed t h e f i r s t a c t u a l machinery for giving the worker a g r ea t e r share i n t h e control of i n d u s t r y . The number of Shop Stewards p r i o r to 1914 was not l a r g e . They belonged for the most pa r t to the s k i l l e d o rgan iza t ions . Their functions cons is ted mainly i n examining member cards , in safeguarding the indus t ry from encroachments by o ther sec t ions of l abo r , keeping the shop free from non-un ion i s t s , taking up disputes with the foremen, e t c . Two important develop-ments following the outbreak of war contr ibuted g r ea t l y to the growth of the movement. One of these was the change made necessary in processes of manufacture, the (1) G.D.fi. Cole, "Hecent Developments in the B r i t i s h Labor Movement", Am. Po l . So i . Rev. 1918, page 503. in t roduc t ion of new processes and new machinery and the br inging in of di lutees; the o ther development was the p r a c t i c a l disarmament of the Trade Unions during the War. As time went on g r ea t e r and g rea te r demands were made on the Trade Unions and they were l e s s capable of respond-ing . Consequently any disputes that arose were re fe r red back to t h e i r source - namely, the workshop* The Trade Unions no longer through t h e i r old forms of organizat ion met the needs of the t imes , and the workers f e l t the need of r ep resen ta t ion more in touch with t h e i r immediate gr ievances , and more capable of voicing immediately t h e i r point of view. One of the funotions of the Shop Stewards - the c a l l i n g of shop meetings -proved the bas is of a system of Works Committees in some i n d u s t r i e s . Under the Trade Union the meetings thus ca l led were for union members, but during the war they came to include a l l the workers. The pos i t ion of shop steward was not a p a r t i c u l a r l y important one before 1914, but during the war the shop steward became a man of consecraenoe. Through them a way was opened out of the d i f f i c u l t y . "There i s a de f in i t e form of organizat ion advocated and recognized, i t i s t r u e , but only approximations, more or l e s s remote, in ex i s t ence . 26. Br ie f ly expounded, the s t r u c t u r a l aspects of the movement are as fol lows: The un i t of organizat ion i s the workshop or i n d u s t r i a l group. In each workshop a oommittee of stewards or de legates should be e lec ted as workers and not by t r a d e , e t c . Each workshop committee should e lec t a delegate to the works committee. Al l the workshop committees in a l o c a l i t y should a lso have de legates to a l o c a l council or workers* oommittee, which i s departmentalized according to i ndus t ry . The na t iona l s t ruc tu re would be s imi l a r to the looa l workers* comraittee on a l a r g e r s ca l e , thus giving na t iona l indust ry departments with t h e i r executive committees within a National Worker's Council or „ (1) congress" . The Shop Stewards Movement grew up p r i n c i p a l l y in the Engineering indus t ry . The "Clyde Workers Committee" was the f i r s t organizat ion of t h i s k ind. In 1915 the Clyde Engineers were due to receive an advance in wages. They had f a l l en considerably behind other d i s t r i c t s in the mat ter of wages owing to the fact that they were bound by a three year agreement. Long delayed act ion on the p a r t of t rade union o f f i c i a l s and the employers led to an un -o f f i c i a l s t r i k e . Representat ives • • — I I — -I II . • — ! • m  *  l l l . B I . I M - • * — • l . l l l . l . — I I  I  .  H I • • ! V  » • — • • — -  ' I ' • " W  —  MII I •  IIIIIIIM l l | , M , I  ! • • • I . . . I H I M I I . I . 1 I I I (1) Gleason, Arthur. "What the Workers Want." pages 185 - 6 . 2 7 . e leoted to represent the workers were foimed in to a committee, afterwards known as the "Clyde Workers Committee". The d e l e g a t e s , mostly shop stewards, might be e l ec ted e i t h e r o f f i c i a l l y or u n o f f i c i a l l y , but the committee functioned u n o f f i c i a l l y . Being composed of de lega tes i t r e f l ec t ed the degree and nature of the a c t i v i t y among the workers. The Shop Stewards were recognized by the government, and negot ia ted wi th . But the movement had been for the most par t u n o f f i c i a l , and had no t , except in i s o l a t e d cases , received recogni t ion from the t rade unions concerned, although the t rade unions had been endeavoring to regu la r ize the pos i t ion of the shop steward and to give him a de f in i t e p lace , and de f in i t e functions under t h e i r r u l e s . For a time the "Clyde Workers Committee" remained the only one in ex i s t ance . Then the movement began to spread r a p i d l y . The s t r i k e of 1917 brought many new organizat ions i n to being. A na t iona l conference of Steward Committees was held a t Manchester in August, 1917. A na t iona l committee was se t up to co-ordinate the a c t i v i t i e s of the l oca l unof f ic ia l committees. The a c t i v i t i e s under the cont ro l of the Joint Committee come very close to those desoribed in the 28 . Whitley p roposa l s . The r ep resen ta t ives of the workers meet the employers onoe a month and discuss mat ters Per ta in ing to the welfare of the workers, and methods of inc reas ing and improving ou tput . "The unof f i c i a l committees take the trade union r a t e s , agreements, e t c . as something to be enforoed as a minimum, using these simply as a means to l a r g e r ends . These l a rge r ends, however, are what d i s t ingu i sh them from a l l the o ther committees." They work to increase th6 con t ro l of the workers over the workshop, with the end in view of ge t t i ng a l l the functions of management in to the hands of the woikers. Their organiza t ion i s more f l ex ib l e than that of the o f f i o i a l trade? un ions . "So sum up the p o s i t i o n : the workers ' committee movement i s extending through the B r i t i s h Labor Movement and manifesting i t s e l f in a v a r i e t y of forms and d i r e c t i o n s . I t i s assoc ia ted with de f in i t e r evo lu t -ionary ideas and i s in ten t on abol ishing Capi ta l ism." * 2 ' The Shop Steward Movement was organized to meet the needs of the workers in one p a r t i c u l a r indus t ry , but the p r ino ip le s upon which i t was based were capable of (1) Gleason, Arthur . "What the Workers Want." page 198. (2) Gleason, Arthur. "What the Workers Want." page 199. 2 9 . universa l a p p l i c a t i o n . I t was an improvisation and suffered from a l l the weaknesses such improvised organ-i z a t i o n s usual ly have. I t i s , however, a v i t a l movement, and has served i t s purpose w e l l . I t w i l l i n a l l p r o b a b i l i t y cont inue, i f not in i t s present form, at l e a s t in some form not e s s e n t i a l l y d i f f e r e n t . ^hen i t has beoome a par t of o f f i c i a l unionism i t w i l l con t r ibu te a more democratic charac ter to that unionism. "The Shop Steward Movement may have come in to being in consequence of some immediate grievance, often of a qui te minor oharaoter : but every such movement, and indeed every rank and f i l e movement, whatever the form i t t akes , as soon as i t ge ts down t o a r e f l e c t i o n upon i t s p o s i t i o n , adopts a policy which places con t ro l in the forefront of I t s deimnds." ' * ' The Shop Steward ^Movement and o f f i c i a l Trade Unionism w i l l in a l l p robab i l i ty work toge ther . In any case the ideas associa ted with the workshop committee have come to s t a y . (b) The Whitley Scheme. The Sub-Commit tee on Relations between employers and employees, of which the Right-Hon. J.H, (1) G.D.H. Cole. "Recent Developments in the Br i t i sh Labor Movement," Am. Pol . S c i . Rev. 1918. 3 0 . Whitley was chairman, was asked: " 1 , To make and consider suggest ions for securing a permanent improvement in the r e l a t i o n s between employers and workmen. 3« To recommend means for securing that i n d u s t r i a l condi t ions a f fec t ing the r e l a t i o n s between employers and workmen sha l l be sys temat ica l ly reviewed by those concerned, with a view to improving condi t ions in the f u t u r e . " (1) This Committee issued an Inter im Report, March 8, 1917, In t h i s f irBt report the Committee dea l t only with the problem of how to secure permanently improved r e l a t i o n s between employers and employed in the main i n d u s t r i e s in which there ex i s t ed represen ta t ive organizat ions on both sides* I t was f e l t that condit ions presented a good opportunity to perpetuate the co-operation between employer and employed brought about by the war. The committee did not h e s i t a t e to express the opinion tha t "any proposals put forward should offer to workpeople the means of obta ining improved condi t ions of employment and a higher standard of comfort genera l ly , and involve the enlistment of t h e i r ac t ive and continuous co-operat ion in the promotion of i ndus t ry . " The committee recommended that the Government "should propose without delay to the var ious associa t ions of employers and employed the formation of Jo in t Standing ( l ) Inter im Report of Committee, page 8 . 3 1 . I n d u s t r i a l Councils in the seve ra l i n d u s t r i e s where they do not a l ready e x i s t , composed of r ep resen ta t ives of employers and employed, regard being paid t o the various sec t ions of the Indus t ry and the var ious c lasses of labour engaged." J But the oommittee did not consider tha t the work of organizat ion of any industry would be completed with the establishment of na t iona l I n d u s t r i a l Councils only. " I t i s not enough to secure co-operat ion at the cent re between the na t iona l o rganiza t ions ; i t i s equally necessary to e n l i s t the a c t i v i t y and support of the employers and employed in the d i s t r i c t and in individual establishments* The National I n d u s t r i a l Councils should not be regarded as complete in i t s e l f ; what i s needed i s a t r i p l e organizat ion - in the workshops, the d i s t r i c t s , and n a t i o n a l l y . Moreover, i t i s e s s e n t i a l t ha t the organizat ion a t each of these three stages should proceed on a oommon p r i n c i p l e , and tha t the grea tes t measure of common ac t ion between them should (2) be secured." ' With t h i s im view the oommittee recommended that the following proposals be l a i d before the National I ndus t r i a l Counci ls : -(1) Inter im Renort, page 9. (2) Inter im Report. 32. (a) Tha t District Councils, representative of the Trade Unions, and of the Employers' Associations in the industry, should be created, or developed out of the existing machinery for negotiation in the various trades. (b) That Works Committees, r epresen ta t ive of the management and of the workers employed, should be i n s t i t u t e d in p a r t i c u l a r '.vorks t o act in close co-operat ion with the d i s t r i c t and na t iona l machinery." (1) In order to gain the necessary support of the t rade union and Employers' As.uuOiations i t was considered important t ha t the design f o r these committees should be a mat ter f o r agreement between these bodies . "The object i s to secure oo-operation by grant ing to work-people a g rea t e r share in the considerat ion of mat ters a f fec t ing t h e i r indus t ry and t h i s can only be achieved i 2 ) by keeping employers and workpeople in constant touch.rf While admitt ing that the respect ive functions of works committees, d i s t r i c t counci l s , and na t iona l counci ls would have to be determined in aooordanoe with condit ions which had grovn up in eaoh indus t ry , the Committee mentioned the following questions which, i t thought, might be dea l t with by the National Council or a l loca ted by i t to the subsidiary counc i l s . 1 . The b e t t e r u t i l i z a t i o n of the p rao t ioa l knowledge and experience of the workpeople. (1) Inter im Ret^ort, page 10 . (2) Inter im Report, page 12 . 33. 2* Means for securing to the workpeople a g r ea t e r share in and r e s p o n s i b i l i t y f o r the determination and observat ion of the oondit lons under which t h e i r work i s ca r r i ed on. 3 . The set t lement of the general p r inc ip l e s governing the condi t ion of employment, Inoluf ing the methods of f i x ing , paying and adjust ing wages, having regard to the need f o r securing to the workpeople a share in the increased p rosper i ty of the i nduBt r j . 4 . The establishment of regu la r methods of negot ia t ion for i ssues a r i s i n g between employers and workpeople with a view both to the prevent ion, and to t h e i r b e t t e r adjustment when they appear . 5 . Means of ensuring to the workpeople the g r e a t e s t possible secur i ty of earnings and employment, without undue r e s t r i c t i o n upon change of occupation or employer. 6. Methods of f ixing and adjus t ing earn ings , pieoework p r i o e s , e t c , and of deal ing with the many d i f f i c u l t i e s hioh a r i s e with regard to the method and amount of payment apart from the f ix ing of general standard r a t e s which are already dea l t with covered by paragraph (3 ) . ¥« Teohnical education and t r a i n i n g . 8. I n d u s t r i a l research and the f u l l u t i l i z a t i o n of i t s r e s u l t s . 9 . The provis ion of f a c i l i t i e s for the f u l l considerat ion and u t i l i z a t i o n of invent ions and and improvement designed by the workpeople, and for adequate safeguarding of the r i g h t s of the designers of such improvements. 10 . Improvements of processes , machinery and organizat ion and appropria te questions r e l a t i n g to management and the examination of i n d u s t r i a l experiments, witja specia l referenoe to oo-orera t ion in oarrying new Ideas in to effect and f u l l considerat ion of the workpeople's point of view in r e l a t i o n to them. 34. (1) 1 1 . Proposed l e g i s l a t i o n a f f e c t i n g the i ndus t ry . " This re-feronoe compares very c lose ly with a p lan for i n d u s t r i a l organiza t ion presented by the Br i t i sh Associat ion for the Advancement of Science, in 1916. The Whitley Report present ing a somewhat more d e f i n i t e p l a n . Professor Chapman was a member of both committees whioh may, or may no t , account for the s t r i k i n g s i m i l a r i t y of the two p l a n s . The Recommendations wlioh the B r i t i s h Associat ion committee makes f o r the removal, o r a l l e v -< iation of the industrial unrest were as follows:-1. Tha t there should be frankness on both sides and that both employer and worke.r should discuss industrial matters together, or through duly accredited representatives. Only thus could understanding, whioh i3 an essential to a solution of the problems of industrial unrest, be brought about. Th e lack of information tends to intensify suspicion and uneasiness* 2, Tha t the wooers and employers in each industry should extend and improve their organizations with a view to determining jointly the conditions under which the speoial industry should be oarried on» The committee recommended that the state should recogniz e approved associations of employers and workers, and that in each industry permanent join t boards or committees should be set up to consider all matters of common (1) Interi m Report, pages 12-13. 35, interest to both employers and employed. Als o a National Joint Board, composed of representatives of employers and workers to whioh the local and industrial boards should refer disputes which they have been unable to settle. 3 . The necess i ty f o r co-operat ion should be frankly recognized by both s i d e s . The following suggestions were made f o r the improvement of the i n d u s t r i a l o rganiza t ion : 1 , Associat ions of one t rade in a given d i s t r i c t , 8 . National a s soc ia t ions for each t r a d e . 3 . Local federa t ions of t r a d e s , 4 . na t iona l federa t ion of the t r a d e s . The na t iona l federat ion of the workers and employers should e lec t an i n d u s t r i a l council which should act as a court of appeal in i n d u s t r i a l d isputes which oould not be s e t t l e d otherwise , '•*•' This i s su f f i c i en t to give a general idea of the seheme, and to i l l u s t r a t e the s i m i l a r i t y between i t and the Whitley Scheme. The Whitley Report was favorably received by (2) the majority of B r i t i s h employers and the pub l i c , and (1) Kirkaldy - "Labor, Finanoe and the War". (2) The a t t i t u d e of the workers wi l l be deal t with in another chap te r . 36. the war cabinet deoided to adopt it as a part of its recons traction policy. A second report on Joint Standing Industrial Councils was made by the committee in October, 1917, The first report had dealt with those industries in which there were well established organizations of employers and employees and in whioh industries, therefore, the machinery for establishing these councils could easily be set up. Thi s set of industries is treated as Group 'a'. Furthe r proposals were put forward as follows: "(a) I n industries where there are representative associations of employers and employees, which, however, do not possess the authority of those in Group 'A' industries, we propose that the triple organization should be modified by attaching to each National Industrial Council one or at most two representatives of the Ministry of Labour to act in an advisory capacity. (») I n industries in both Groups fa* and •b ' we propose that unorganized areas or branches of an industry should be provided, on application of the National Industrial Council and with the approval of the Ministry of Labour, with Trade Boards for such areas or branches, the Trade being linked with the Industrial Council. (o) I n industries having no adequate organiz-ation of employers or employed, we recommend that Trade Boards should be established or continued, and that these should, with the approval of the Ministry, be enabled to formulate a scheme for an Industrial Council, which might include in an advisory capacity the "appointed member" of 'fhe Trade Board." (1) (1) Bloomfield, Meyer- "Management and Men", appendix G. page 463. 3 7 . The r e s u l t of t h i s would he to divide indus t ry in to two o l a s s e s , i n d u s t r i e s with I n d u s t r i a l Councils, and i n d u s t r i e s with Trade Boards. In a supplementary repor t submitted a t the same time as the second repor t the vlhitley Committee dea l t with the whole question of Works Committees, The number of Works Committees ex i s t i ng before the war i s very d i f f i c u l t to es t imate , i t w i l l vary as we give the term a wide i n t e r p r e t a t i o n , or confine i t to committees r ep resen ta t ive of a l l the woifepeople i n the es tabl i shment . While such committees under a wide v a r i e t y of names did ex i s t in various i ndus t r i e s the spec ia l circumstances of the war were l a rge ly responsible for br inging them in to being in the engineering t rades where there appeared "such a change in both the form and function of workshop organiza t ion , that the discussion of the general idea of works committees may be said t o have developed out of these cond i t i ons . " ' Reference has been made to the growth of the Shop Steward Movement In the engineering t rades , and to the fac tors responsible for i t s development. Genuine works committees developed out of these organizat ions where they had succeeded in securing the oonfidence of both the workers (1) Bloomfield, Meyer - "Management ana Men", pages 318-1.3. 38. and the management* On examination it oan be seen that management had direct representation in but few of these committees in existence before the Whitley Report. Mos t of them were representatives of the workers only. Sometime s there were separate oommittees for the skilled and the unskilled workers. Wome n might be represented, they might not. Whethe r or not the committee consisted of union representatives depended on the number of union men in the establishment. Th e size of the committees varied from twelve to more than thirty members. I t was not intended by the Whitley Committee that these existing oommittees should be done away with, for their value was recognized. The y had not, however, come to participate in the management of industrial establish-ments to the extent favored by the Committee. There is no definite foim of committee set hy the Committee. Th e form recommended was flexible and capable of being adapted to any form of industry. It is an essential feature of the scheme that representation on all councils, National, District, and Works, shall be based on equal representation and status of employers and employed* fundamental differences exist between 39 . I n d u s t r i a l Councils and Trade Boards. An I n d u s t r i a l Council i s voluntary in o r i g i n , and can only be brought in to existenoe by the agreement of the organizat ions represen t ing the employers and the employed; the council i s oomposed exclus ive ly of persona represent ing these organiza t ions ; the council can, within wide l i m i t s , determine i t s own funct ions , machinery, and methods of woiking; they vary in s t ruo ture and funct ions; they receive no f inanc ia l a id from the government; they wi l l be the represen ta t ive organizat ions to which the government can reefer, "the Government des i re i t to be understood that the counci ls w i l l be reoognized as the o f f i c i a l s tanding consu l ta t ive committees to the Government on a l l future questions a f fec t ing the indus t r i e s which they represen t , and that they w i l l be the noxmal channel through which the opinion and experience of an indus t ry w i l l be sought on a l l questions in which the industry i s concerned". A Trade Board, on the other hand, i s a s t a t u t o r y body es tab l i shed by the Minis ter of Labor and oons t i tu ted in aooordance with regula t ions made by him in pursuance of the Trades Boards Act. On account of the laok of organizat ion in the t rades to which the Act appl ies the method of nomination to the Board by the jfl) Ciroular l e t t e r issued by the Minis ter of Labor, Ootober 20, 1917, " Indus t r i a l Report, llo. 1 , page 4 . .. . --.-4 0 . Minis ter has proved preferable to that of e l e c t i o n . The Employers' Associat ions and Trade Unions may submit the names of cand ida tes , but where they do not represent a l l sec t ions of the t rade i t i s necessary to look outside them to find r ep resen ta t ion of the d i f f e r en t processes and d i s t r i c t s a f f ec t ed . The expenses of the Boards are defrayed out of publ ic funds. Again, whereas I n d u s t r i a l Councils are composed e n t i r e l y of r epresen t -a t i v e s of the Employers' Associat ions and Trade Unions in the indus t ry , every Trade Board inc ludes , in addi t ion t o the r ep resen ta t ive members, a small number, usua l ly t h r e e , of appointed members, one of whom i s appointed by the Minis te r to act as chairman, and one as Deputy Chairman of the Board. The appointed members are not connected with the t r ade , and are appointed as impar t i a l persons by the Min i s t e r . The primary function of a Trade Board i s the determination of minimum r a t e s of wages. When they have been fixed by the Board and confirmed by the Minis ter of Labor, they are enforceable by cr iminal proceedings, and of f ice rs are appointed to secure t h e i r observance. Useful and important as the work of the Trade Boards may be they can never take the place of the Joint I n d u s t r i a l Councils as a medium of cons t ruc t ive co-operation between the p a r t i e s to indus t ry . « . . When the time comes for pu t t ing in to p rac t i ce the recommendation of the VVhitley Oornmittee i t was found neoessary to make some modif ica t ions , - "but net to such an extent as to a f fec t the underlying p r i n c i p l e s of the scheme. (1) I t was decided t o recognize one type of i n d u s t r i a l Council only and not to a t t a ch o f f i c i a l r ep re sen ta t ives to the council except on a p p l i c a t i o n of the I n d u s t r i a l Council i t s e l f . The government thus modified the plan recommended by the Whitley Committee. The memorandum issued by the government says in regard to the d i s t i n c t i o n in i n d u s t r i a l organiza t ion which the committee sought to draw: "The only c l e a r d i s t i n c t i o n i s between i n d u s t r i e s which are s u f f i c i e n t l y organized to j u s t i f y the formation of a Joint I n d u s t r i a l Council, and those which are not su f f i c i en t l y organized," and in regard to the o f f i c i a l adv i se r , i t s a i d , " I t i s fundamental t o the idea of a Joint I n d u s t r i a l Council that i t i s a voluntary body se t up by the Industry i t s e l f , ac t ing as an independent body and e n t i r e l y free from s t a t e c o n t r o l . " (2) That in view of the differences both in function and purpose of the two bodies, Indus t -r i a l Councils and Trade Boards, while i t might be des i rab le to have a Ceunoil and a Board in the same i n d u s t r i a l a rea , I t would not harmonize with the avowed purpose of Indus t r i a l Councils to provide a democratic method of i n d u s t r i a l con t ro l , without any in te r fe rence by the s t a t e . 4 2 . This would make i t impraotioable to have both I n d u s t r i a l Counoils and Trade Boards in the same Indus t ry . Shop Committees in England are noteworthy f o r three main reasons; (1) The Shop Committee i s not a union. ?</hen Trade Unions have been h o s t i l e to the establishment of such committees they have chosen to regard i t as such. (2) They are not n e u t r a l on the Trade Union fuas t ion , fo r they maintain a olose o f f i c i a l i f somewhat obstreperous connection with the Trade Unions. (3) They are not compulsory. They grow out of a s t rong fee l ing on the pa r t of employers and workers tha t t h e i r best i n t e r e s t s require a l o c a l organizat ion for the considera t ion of mat ters of mutual I n t e r e s t , an organizat ion c lose r to the worker and the employer than the Trade Unions and other assoc ia t ions more or l e s s remote from and ignorant of the p a r t i c u l a r condit ions in a p a r t i c u l a r i ndus t ry . They afford the employer an opportuni ty t o avoid poss ible clashes with h i s employers, o r as one w r i t e r has put i t , the Shop Committee should be to the employer what the periscope i s to the submarine, a chance to view conditions without ge t t ing in to an immediate s c r ap . The I h i t l e y Scheme has been c r i t i c i z e d as being too conservat ive , and as not being quite jus t to unorgan-ized l a b o r . Although i t does not go as f a r as some of the more r ad ica l seo t ions of l abor seem to think i t should, s t i l l i t represented a great change in i n d u s t r i a l o rganiza t ion . The Report embodies a recogni t ion of a • 4 3 . community of i n t e r e s t between the p a r t i e s to indus t ry as a bas ic faot in i n d u s t r i a l o rgan iza t ion , as aga ins t the more genera l ly accepted idea of a fundamental antagonism. The Trade Unions and Employers' Associations have acted as a cont inual challenge to each other* Through the Whitley Scheme an attempt has been made to get them wo iking toge ther , not by weakening one o r the o the r , but by s t rengthening bo th . By 1921 National Jo int I n d u s t r i a l Councils had been es tab l i shed in s i x t y - s i x i ndus t r i e s in Great B r i t a i n . Over three and one-hal f mi l l ion v.oricers were represented (1) on these counc i l s . Many Works Committees are i n exis tence where there are no National I n d u s t r i a l Councils. The f i r s t National I n d u s t r i a l Council was e s t ab l i shed in the Pot tery Indus t ry , with Major F.H. Wedgwood as chairman. This counoil has as i t s general objec t , "The advancement of the po t t e ry industry and of a l l connected with i t by the assoc ia t ion in i t s government of a l l engaged in the i n d u s t r y . " ' 2 ' The council could take ac t ion in anything f a l l i n g in the scope of t h i s general ob jec t . - i r -  ~  •  —  -  •  i  .  i  j  _  .  J I .  .  i i i  .  i i •  i (1) Joint Councils in Indus t ry : I>ept. of Labor, Canada, Bul le t in tto. 1, Ind. Relations Se r i e s , Feb. 1921. (2) Quoted, Meyer Bloomfleld, "Management and Men", page 499. 4 4 . I t s ohief work i s grouped under the following heads: "(a) The consideration of means whereby a l l manufacturers and operatives sha l l be brought within the i r respective associat ions, (b) Regular consideration of wages, pieoe-rate pr ices , and conditions with a view to establishing and maintaining equitable conditions throughout the industry. (o) To ass is t the respective essocJationa in the maintenance of such se l l ing prioes as wil l afford a reasonable remuneration to both employers and employees. (d) The consideration and settlement of a l l disputes between different part ies in the industry which i t may not have been possible to se t t le by the existing machinery, and the establishment of machinery for dealing with disputes where adequate machinery does not ex i s t . (•) The equalization of production and employ-ment as a means of insuring to the workpeople the greatest possible security of earnings. (t\ Improvement in conditions with a view to removing a l l danger to health in the industry. (g) The study of prooesses, the encouragement of research, and the fu l l u t i l i za t ion of the i r r e su l t s . (h) The provision of f a c i l i t i e s for the full consideration and u t i l i za t ion of inventions and improvements designed by workpeople and for the adequate safeguarding of the rights of the designers of sudh. (i) Education in a l l i t s branohes for the industry. 45. fj) The c o l l e c t i o n of s t a t i s t i c s on wages, - making and s e l l i n g p r i c e s , average percentages of p r o f i t s on turnover , and on m a t e r i a l s , markets, c o s t s , e t c . , and the study and promotion of s c i e n t i f i c and p r a c t i c a l systems of oosting to t h i s end. (k) I n q u i r i e s i n t o the problems of the indus t ry , and where d e s i r a b l e , the pub l ica t ion of r e p o r t s • (1) Representat ion of the needs and opinions of the indus t ry to government a u t h o r i t i e s , oent ra l and l o c a l , and to the community g e n e r a l l y . " (1) We can see by the foregoing how c lose ly the Whitley Scheme i s being followed. The c o n s t i t u t i o n of the Hational Council of the Pot tery Industry dea l s wi th : (1) Membership. The council to consis t of an equal number of employers and ope ra t i ve s . The number of r ep resen ta t ives on each side not to exceed t h i r t y . Management r ep resen ta t ives may include s a l a r i e d managers. Operatives* represen ta t ives may include women. (2) Honorary members may speak a t meetings but have no v o t e . (3) One t h i r d of the council i s to r e t i r e annual ly , - s h a l l be e l eg lb l e fo r re-appointme nt • (4) Of f i ce r s . (a) Chairman and vice-chairman. When the chairman i s a r epresen ta t ive of the employers the vice-chairman s h a l l be a represen ta t ive of the ope ra t ives , and v i c e - v e r s a . (1) Quoted, Meyer Bloomfield, "Management and Men", pages 499-500. I 4 6 . Chairman pres ides a t a l l meet ings . He has a v o t e , but not a cas t ing v o t e , (b) Suoh s e c r e t a r i e s and t r e a s u r e r s as the council may r e q u i r e . (5) Committees: (a) Executive Committee. (b) Standing committees, r ep resen ta t ive of the d i f f e ren t needs of the i ndus t ry . There s h a l l be equal r ep resen ta t ion of manufacturers and opera t ives on a l l committees. Minutes of t h e committees to be submitted to the Hational Council f o r confirmation. A l l committees choose t h e i r own chairman, but the finanoe committee where the chairman of t h e QouTiOil p r e s i d e s . (4») Finance: Ordinary expenses of the council to be met by l e v i e s on the Manufacturers ' Associations and the Trade Unions represen ted . Special expenditure provided for by the Finance Committee* (7) Meetings: to be held q u a r t e r l y . The annual meeting in J u l y . A spec ia l meeting on the r e q u i s i t i o n of t en members of the Council. Seven days no t ice to be given before any meeting. Twenty members s h a l l foim a quorum. Committees meet as often as may be r equ i red . (8) Voting: By a show of hands . Two-thirds majority of those present and voting required to carry a r e s o l u t i o n . I f there i s an unequal number present only an equal number may v o t e . (1) This i l l u s t r a t e s how the Whitley recommendations were put i n to operat ion in one i n s t ance . The success of these counci ls depends upon the s p i r i t in which they are inaugurated. I f there i s a f l) Bloomfield, Meyer, - "Management and Men", pages 500-501. 4 7 . willingness on the part of both parties to oo-o^ernte then there ie a reasonable chanoe of success. As ye t they have heen working suooesefully. The y ma y not hare aocompliahed anything startl ing, but so far th e woi has bee n preparatory. When the groundwork has bee n completed then we may begin t o loo k for results wit h a •onable assurance of finding them. The Quaker Program. On April 11, 1918, a number of Quaker employers met at iroo&brooke near Birmingham for a four-day oonferenoe, to consider questions as they affeoted them in their business relations. The oonferenoe wa s called by invitation sent to all members of th e Soolety of Friends, who, so far as could be ascertained, were employers of upwards of fifty persons, the total number so invited being 376. Th e Report was "an attempt to see how the Christian conception of the divine worth of al l life affeots our modern industrial l i fe , and in particular the relationship between employers and employ-ed." * "There is perhaps nothing in this statement that is new , nothing that has not been found in th e practice of some employers for years, nothing to whioh (1) Report, page 3. « • M f M H tm • • f w  to . A ) to ft  l l M I H l « ftf Mi N i i i u i « « r «n« • f l i f t « M %• toft to — ~ 1 to t ttot o 4t. obligation O B employee s t o d o everythin g i n thei r powe r to ensur e tha t th e basin s ssss wide r thei r eontro l ohal l ho abl e t o pa y wage s o n th e a  bore basis , w e beliOT o tha t the ee-eperetlo n o f th e employee s i n th e for m o f bette r and mer e intell igen t won t wil l gen e sally b e neede d t o inereeee th e fmnd o available. " f l ) Sealing wit h thi s subjeo t o f th e statu s o f th e worker th e Conferenc e pointe d ou t tha t th e worke r desired mor e wha n a n improvemen t i n hi s ooonoml o conditions. B e wishe d t o b e treate d a s a  huma n bein g pssssssisg right s an d privilege s simila r t o tboa j of th e employe re. th e prooesse s o r funotlon s o f industr y eeuld h o diride d unde r thre e heads : (1 ) Flnanoial , (I) Oommesslal , (8 ) Industrial . laturall y th e worke r i s primaril y intereste d i n th e industria l aspeet , an d ho i s oapahl o o f helpin g t o for m th e industria l polio y o f Iks busines s h o i s engage d In . As a  f irs t sta p the y recommende d th e forma l recognition o f suo h sho p oommittee s a s existed , an d th e establishment o f suo h oommittee s wher e the y di d no t exist* Th e pla n her s differ s somewha t fro m th e thitley Semem e i n tha t "th e ohoss n representatiTo e o f th e wethers shsml d diseas e mattsr s whlo h eomse m them , f irs t (1) lepert , pag e f  • • l l l M , tat  MOMflf . M l • % f N « M M ltoorVOXO , M.t o t t o fojotleM M  » | i i t ratoo , ate * A I M U U M , ata « Ito f M | M t aftOal d I M U too  MKO V to  «H M M l ftOtlTO  M* t l a tot  fiflMMls l M M M M M U l OMlalOtrotlO a O f tfc o Qaoattoaa affaatlaa ; too  wtol o a f M l latmatr y should to  aatoiaa * tor MtttMiM to totiaaal  M l Matrtet OMUMil a M aa«jaata» to to*  amltle r sopor* . I t M M MMlMl l 111 tha t OOMltlO M fallowin g tl M W»> r •MAI to  vMfly dlfforon t frM t tnoao oefore , M M tha t VMM Btoal l to  f l M M M MVAiA l oo-operatia a MjtM M the employ e ra MM . «**tol* U  l l t o M M I f tbjOO O OOndltlOM . Under th « headin g •Seaaalt f a t MylajMoat * O l Conference deal t wit h th e effeot e o f Insecurit y o f MMtofMBM. o n th e phyaiqM i Me t ttlMtUr  a f too  wast e r e. I t M M f e l t tha t oatployer a ooul d d o muo h t o reeed j th o •VtlS reoultin g fro m lneeourit y o f enplOjMMM , Hi t to t h i s Me t to«  fOllOwlB C rOOMMMlMtlM M WO W M i l l a ) Th e bufllaoo o ohoml d to  e e r e f n l l j n p i l i i l , A* Wit * A  View t O M M t l M tot  MMlOMMfl l M ? M M I l a t o r to  th o ver y l e e e e t U n d t . » . to  roamlarlBl M eer * tniaeyiiw t t t o m t Mi f e r M I p e e e l e l o. f t ) M M lOOO r OOJTlO C M t e l M ff 1 * lMrOOMOO d Ml MtoMt ehoul t to  M M to  eeeer e too  OMto M (1) toeer*.  pee * t . 6 1 . d i sp laced , without l o s s of wage, i n o the r departments of the bus iness , or work should he found fo r them elsewhere. A por t ion of the ex t ra p r o f i t s a r i s i n g from labor saving improvements might be placed in a spec i a l fund t o compensate wo i t e r s who may be displaced and oannot be absorbed or placed elsewhere. The d ismissa l of employees should only take plaoe as a d i s c i p l i n a r y measure in the l a s t r e s o r t . Appeal to the management should be allowed before f ina l d i smi s sa l . Special provis ion should be made fo r the absorpt ion of adolescents on reaching adul t age, or fo r t r a i n i n g them in some a l t e r n a t i v e occupation, i f the one they have been employed a t does not offer a su i tab le l i f e work. I f these recommendations were ca r r i ed in to e f feo t , and followed to the l e t t e r they would go a long way towards e l iminat ing i n d u s t r i a l u n r e s t . Much depends upon the condit ions under which a man has to work* They wi l l reaot upon h i s a t t i t u d e toward h i s work, h i s fellow-woikers and himself. The Report dea l s with working condit ions under three heads: (1) Personal environment, (2) Mater ia l environment, and (3) Social cond i t ions . Effor ts should be made to make h ia fee l tha t he i s an i n t e g r a l pa r t of a l i v i n g organism. Great care should be exercised in the se l ec t ion of those for pos i t ions of a u t h o r i t y . Technical knowledge or the a b i l i t y to drive the worker should not be the f i r s t cons idera t ions . Where they are to be plaoed over young m U) 52. people, those chosen should he capable of ac t i ng a s i n s t r u c t o r s and educators* The Conference recommends the foaming of c lasses fo r those i n pos i t ions of a u t h o r i t y , and for those who des i r e to f i t themselves for such pos i t i ons in the f u t u r e . The purpose of these c l a s ses being to acquaint them with the employers and the workers po in t s of view, and t ha t they may acquire a broad sane outlook on human and i n d u s t r i a l r e l a t i o n -s h i p s . I t was als© suggested tha t the workers be made responsible f o r the maintafcing of d i s c i p l i n e t o a g rea t e r extent than u s u a l . I n deal ing with mate r ia l environment the Conference emphasized the necess i ty for having workrooms proper ly v e n t i l a t e d , kept at su i t ab le temperatures , adequately l i t , and due regard paid to c l e a n l i n e s s . Precautions showld be taken to guard the wozkers from overs t ra in , p a r t i c u l a r l y workers under eighteen years of age. Their hours should "be l imi ted to fo r ty -e igh t p e r week. Workers should not be confined to one monotonous task fo r too long a per iod . I t was pointed out that while the carrying out of the above recommend-a t ions might involve a considerable expenditure, the absence of su i t ab le working condit ions produced inef f ic iency and low produc t iv i ty in the woricers. 53 . The employers should pay a wage t ha t would enable h i s workers to l i v e i n decent p l a c e s , and i n comfort. Time should be allowed for r e c r e a t i o n , and where r ec rea t iona l f a c i l i t i e s were f a i l i n g , should see tha t they were provided. The l a s t subject considered in the Report i s tha t of the Appropriation of Surplus P r o f i t s . By t h i s term i s "meant any surplus whioh may remain over when labor has been paid on the sca le r e fe r red to in Section I , and managers and d i r e c t o r s have been remunerated according to the market value of t h e i r s e r v i c e s ; when flapital has received the r a t e of i n t e r e s t necessary to ensure an adequate supply, having regard to the r i s k involved, and when necessary reserves have been made fo r (1) the s ecu r i t y and development of the bus ines s . " The surp lus p r o f i t s could be d i s t r i b u t e d to one or more of the following; (a) The p rop r i e to r s of the bus iness , whether p r iva te ind iv idua l s or ordinary sha re -ho lde r s . (1») The d i r e c t o r s and p r i n c i p r e managers, who may o r may not be the same as the persons mentioned under ( a ) . (0} The employees. (d) The community g e n e r a l l y . The Conference did not bel ieve tha t the employees o r the (1) Report, page 15 . 54. workers were e n t i t l e d to the whole of the surplus p r o f i t s , "though they might reasonably ask fo r such a share as would give» them an i n t e r e s t i n i t s f i nanc ia l p r o s p e r i t y . " I t was pointed out and emphasised that the bulk of the surplus p r o f i t s a t l e a s t belongs to the oommunity and should be used i n i t s i n t e r e s t * The consumer should never be exp lo i t ed . The employer should recognize t ha t h is business i s not a pro fit-making machine, for h is benefi t only. I t i s a t r u s t , and those o t h e r s , besides himself, i n t e r e s t e d in the t r u s t should be consulted as to how best the t r u s t oan be discharged. The s igni f icance of the Report l i e s i n the fact tha t i t i nd ica tes t h e awakening of a new s p i r i t i n the minds of some of the employers, the s p i r i t of s incere oo-operation and brotherhood. As the Report points out much of the work to be done i s of a pioneer n a t u r e , but the Conference did not doubt that men would be found to undertake the woik. Many of the great films represented a l ready had some foim of committee represen t -ing the employers, and the r ep resen ta t i r e8 of those firms t e s t i f i e d as to the success and worth of such committees. 55. Chapter IV. The United States and Canada. fa) The United States. As i e th e oas e wit h mos t movements , th e influences whic h resulte d i n th e formatio n o f work s Councils i n th e Unite d State s wer e operatin g lon g befor e these organization s wer e establ ished . I n man y place s employers ha d ins t i tu ted , o r a t l eas t ha d encourage d th e formation o f committee s representativ e o f th e woi k people . These committee s deal t wit h suc h matter s a s aooiden t prevention, welfar e work , reoreation , e t c . The y wer e a s a rul e appointe d b y th e management , thoug h ther e wer e oases wher e th e worker s themselve s electe d th e represent -atives . For som e time , befor e th e establishmen t o f Works Council s proper , co l l ec t iv e bargainin g throug h machinery s imila r t o tha t o f th e Work s Council , ha d bee n praotioed i n th e clothin g industry , particularl y i n th e establishment o f Hart , Sohaffne r an d Marz . Followin g serious labo r troubl e i n 191 0 th e managemen t ha d resorte d to arbitratio n i n orde r t o seour e a  settlement . A s a result a  Trad e Boar d wa s formed . Th e Trad e Boar d wa s 56. so cons t i t u t ed as to comprise f ive r ep resen ta t ives of the t rade union and f ive foremen se l ec t ed by the oompany represen t ing the var ious departments of the p l a n t , and a chaixman chosen by both p a r t i e s . The Board was charged with the adjiistaient of grievances and "o r ig ina l j u r i s d i c t i o n " over a l l mat ters a r i s i n g under agreements (1) entered in to between employers and employees. This organiza t ion i s s t i l l funct ioning. In 1913 the Packard Piano Company of Fort Wayne, Indiana, a f t e r a period of l a b o r d i f f i c u l t i e s introduced i n t o i t s works a plan of i n d u s t r i a l organiz-a t i on pa t t e rned a f t e r the organizat ion of the Federal Government - tha t which i s commonly known as the Leiten plan - or I n d u s t r i a l Deraooraoy. The o r ig ina to r of th i s p lan , Mr. Lei tch , descr ibes I n d u s t r i a l Democracy as "The organizat ion of any faotory or o the r business i n s t i t u t i o n in to a l i t t l e democratic s t a t e , with a represen ta t ive government which s h a l l have both i t s l e g i s l a t i v e and executive p h a s e s " . ' 2 ' The nature of the formal organizat ion depends upon the s ize of the p l a n t . In a large establishment a flabinet, a Senate and a House of Representa t ives , (1) Works Councils i n the United S t a t e s . Research Report So . 81 , October 1919. Hat. Ind. Conf. Board, pg . 6 . (8) John Lei tch "Man to Man", page 140. supplemented by mass meetings of th e workers on ocoaeion, would be necessary . In a  smalle r I n s t i t u t i o n i t might not be neoesaary. to e leo t r ep resen ta t ives a t a l l . I t might suf f ice t o mak e us e o f the mas s meeting a lone . The cabinet would consis t of the executiv e of f loers of the oompany with th e President aot lng a s i t s ohalrman. This body would not be e l e o t i v e , i t s members owing t h e i r p laces on the oabinet to t h e i r pos i t ion in the company* I t i s p r x i o i p a l l y an executive body, possessing the power of ve to , and of i n i t i a t i n g l e g i s l a t i o n by making sugges t ions . Th e Oabinet would hare before i t a t i t s meetings a l l b i l l s passed by th e Senate and th e House of Representa t ives , together with the minutes of a l l meetings and discuss ions of these tw o bodies . I t meets once a week, discusses any b i l l s up fo r approval , any communications or jo in t r e s o l u t i o n s , and l a r g e r problems of management. I f a b i l l i s not approved i t may be re fe r red baok to the Senate or to th e House of Representa t ives . These bodies may accept the changes suggested, or may re jeo t them. The Senate i s oomposed of th e under-exeout ives , department heads and sub-formen, the idea being tha t i t s h a l l inolude a l l those under the grade of ohlef executive o f f ice rs who are in a pos i t ion of au tho r i ty over the workers themselves. I t e l eo t s a p r e s iden t , a aeeretary , an d aa y ethe r effioer a I t aa y dee m aeaaaeary. I t ba a ataBAia g aeandttea a an d apaala l eemmltteea. It a ohla f •alm a lia a 1 B tha fao t tha t I t repreeeate th a eaperrlale a pain t o f riaw . i t a pomai a and praatlee a ar e idaatiaa l wit h thoa a a f th a Houe e o f Repre sentatITBB. fha Hena a a f RepreeentatlTe e i a alaata d a y eeeret ballo t h f th a aatlr a bod y o f worksra . Repreeent -atiwM am y h a alaata d a y departmeata , -  oa a repreeentat -ire fa r a  apaaifia d numbe r o f worksre , o r fro m th a plan t at larva * Mr . L a It oh raaammaad a th a oa a o f th a flra t method, laaamno h a n i t aasnra a t a aaa h departmen t a  rolo e in th a deliberation s o f th a loaae * Th a representative s mat a a ooonoillar a i a thei r dapartmaat , reeeiwia g anggestiona fro m thei r eonatitmaat a an d dealin g wit h oowplaiata. fha Spaaka r o f th a Hoaa a l a alaata d an d ha appelate th a eommltteea . Bot h th a Saaat a en d th a Hoaaa a f Repr e Beat at iwea bar e oonetitatlon e aa d by-lawa . Meetlnaa a f th a Saaat a aa d th a How e a f RapraaaatatiTa a are hal t weakl y aa d a a eeapaa y time . Baal aaaa i a traaaaete d t a a  aanaidaraal a est eat throug h aemmittaea . Baa h meaaure , a a a  role , la aaa t t a a  eemadtte e fo r a a lnreetigatio n aa d repor t 59* i n order t h a t a l l the faots may be ava i l ab le before open discuss ion takes place* Every measure before becoming law must be passed by the Senate and House of Representat ives and approved by the Cabinet. When the Senate and House cannot agree on a measure a committee i s appointed to prepare and p re sen t a compromise measure. Any d ispute i n t h i s p lan t may oome before the Senate or the House for se t t lement* A b i l l passed by the House goes to the Senate, then to the Cabinet fo r approval* So much fo r the machinery* But machinery alone i s not su f f i c ien t* There must be a cons t i t u t i on o r statement of po l icy s e t t i n g for th the funct ions , e t c . of the bodies brought i n t o being by the e s t ab l i sh ing of a plan of i n d u s t r i a l democracy. "An i n d u s t r i a l democracy needs a s tatement of p r i n c i p l e , a summary of i t s reasons fo r being, and the expression of the s p i r i t which animates i t . " Mr. Leitoh divides t h e Business Policy i n t o f ive p a r t s , as fol lows: J u s t i c e , Economy, Energy, Co-operation and Serv ice . So much for the Leitoh Plan* I t has worked well in many e s t a b l i s h -ments, and i s one of the most popular plans fo r Employee Representation in the United S t a t e s . (1) John Lei toh, "Man to Man", page 149. 60. Poss ib ly the most notable ea r ly plan of employee r ep resen ta t ion I n America i s the Colorado P lan . Following the Colorado Coal Miners ' S t r i ke i n 1913-14 t h i s p lan was drawn up by a ^olnt committee of r ep resen t -a t i v e s of the men and the of f ioers of the Company. I t was approved by the employees and the d i r e c t o r s of the Company and put i n to effeet i n 1915. The men of each mining eamp were i n v i t e d to choose, by sec re t b a l l o t , r ep resen ta t ives to meet with the executive o f f i ce r s of the company " to discuss mat ters of mutual concern and consider means of more e f fec t ive co-operat ion in (1) maintaining f a i r and f r i end ly r e l a t i o n s . " * ' The p lan a s worked out with these r ep resen ta t ives was submitted to the employees and adopted. Mr* J .D. Rockefel ler , J r . gives as the theory underlying i t tha t "Every corporat ion i s composed of four p a r t i e s ; the s tockholders , v&o supply the money with «&ich t o build t h e p l a n t , pay the wages, and operate the bus iness ; t he d i r e c t o r s , whose duty i t i s to s e l ec t executive of f ioers ca re fu l ly and wisely , p lan the l a r g e r and more important p o l i c i e s , and genera l ly see to i t tha t the company i s prudently administered; the o f f i o e r s , who conduct the current opera t ions ; and the employees, who cont r ibute t h e i r s k i l l and t h e i r work. (1) J . B . Rockefel ler , J r . "Colorado I n d u s t r i a l P lan , " page 19, . _.. 61. The in te res t of these four par t ies i s a common in t e r e s t , although peihaps not an equal one, and i f the resul t of the i r oombined work i s to be most successful, eaoh must do i t s share* An effort on the part of anyone to advance his own in teres t without regard to the rights of the others , means, eventually, loss to al l . '* The indust r ia l machinery adopted i s embodied in two written documents* A trade agreement signed by the representatives of the men, and the officers of the company, se t t ing forth the conditions and terras under which the men agreed to work t i l l January, 1918, and thereafter , subject to revision upon ninety days notice by ei ther s ide , The other document i s an "Industrial Constitution" se t t ing forth the relat ions of the company and i t s mea. The following i s a brief outline of the Indus t r ia l Constitution* I . Representation of Employees. 1 . Employees at each of the mining oamps annually elect representatives to act on the i r behalf in matters pertaining to working and l iv ing conditions, adjustment of differences, e t c . 2* Meetings to be held simultaneouly at the several mining oamps on the second Saturday in January* These meetings are called by the president of the company, ani notice must be (1) Ibid, nages 19-20. 62. posted one week in advance. In order to vote employees oast be in the employ of the company for at leas t three months immediately proceeding the election* Ho salar ied employees allowed to vote . 3* Each meeting chooses i t s own chairman and secretary who sha l l cert ify in writing to the president of the company the names of those elected as representat ives, 4, There i s one representative for every one hundred and f i f ty workers. Each camp is en t i t led to at leas t two representatives, to hold office for one year* 5, Both nominations and elections take place by secret ba l lo t . Twice as many persons are nominated as there are representatives to be elected, and the persons receiving the highest number of nomination votes are considered duly nominated candidates. 6, The chairman appoints three t e l l e r s to count the votes . Twenty-five employees may demand a recount* May appeal from the recount to the president of the company. f. At annual meetings employees may consider and make recommendations concerning matters pertaining to the i r employment, wo iking or l iv ing conditions, etc* A record of the proceedings i s made by the secretary, cert i f ied t o by the chairman and distr ibuted to each of the representat ives. I I . Distr ic t Conferences, Joint Committees and Joint Meetings. ! • To f ac i l i t a t e the purposes set forth in I , the camps of the company were divided into five d i s t r i c t s , 2 , Dis t r ic t Conferences are held at the ca l l of the president, not l a t e r than two weeks following the annual e lect ions, and at intervals of not more than four months thereafter , as a majority 63, of the r ep resen ta t ives of the employees in each of the seve ra l d i s t r i o t s , or as the opera t ing o f f i c e r s of the company may find d e s i r a b l e . Purpose - to discuss mat ters of mutual i n t e r e s t and concern. 3 , fhe Company i s represented by the p re s iden t , or h i s r e p r e s e n t a t i v e , and such o f f i c i a l s as the pres ident may des igna te . The employees are represented by t h e i r r e p r e s e n t a t i v e s . Th e two t o be equal in number. The company bears the expenses of the meet ings. 4 . The conference i s pres ided over by the p r e s i d e n t , or o the r executive o f f i c e r . Bach conference s e l e c t s a sec re ta ry to record i t s proceedings . 6 . The following jo in t committees are s e l e c t e d : (a) I n d u s t r i a l do-operat ion and Conc i l i a t ion . ( s ix membe i s ) . (b) Safety and Aooidents . ( s ix members). (e) San i t a t i on , Health and Housing, ( s ix members), (d) Reoreation and Education, ( s ix members). 6. Three of the s i x members on eaoh committee are designated by the employees r e p r e s e n t a t i v e s , and th ree by the pres ident of the company. 7* An annual jo in t meeting to be held i n December, in addi t ion to the d i s t r i c t conferences, to be at tended by the pres ident and such of f ice rs of the company as he may s e l e c t , and by a l l the employee represen ta t ives of the severa l d i s t r i o t s . I I I . The Prevention and Adjustment of I n d u s t r i a l 'Disputes. 1 . There must be a s t r i c t observance of Federal and Sta te laws respect ing mining and l a b o r , and of the Company's ru les and r egu l a t i ons . 2* Scale of wages, and o ther ru les in regard to wojking conditions t o be posted in a conspicuous place at every mine. 64. 3* There i s no d iser ia l nation on account of membership in labor unions, e t c , 4, The right to t i r e and discharge, the manage-ment of the properties and the direction of the working forces, is vested exclusively in the company. 5. A l i s t of offtoces for which employees may be discharged i s posted at each property. Employees must be notif ied i f being discharged for other reasons than those s ta ted . 6* Workers can hold meetings outside working hours, or on id le days. T. Employees are not obliged to purchase at Sompany s to re s . 8. Employees have the r ight (by s ta tute) to employ cheek weightmen. 9* Subject to provisions hereinafter mentioned employees have the right to appeal to the president against unfair treatment or oondltioms. 10. The duty of the pres ident ' s industr ia l representative - to v i s i t camps at leas t once every three months, to confer with the employees or the i r representatives respecting working conditions, eto# Must report to the pre si dent • 11 . Complaints and grievances to be taken up f i r s t with foremen and superintendents. 12. I f employees f a i l to secure sat isfact ion through superintendent they may take thei r complaint to the president 's indust r ia l representative• 13. I f he fa l l s to se t t l e i t sa t i s fac tor i ly they may appeal to the superior officers of the company. Right of appeal must be exercised within two weeks af ter reference to president 's indust r ia l representative. 65. 14• I f th i s means fa i l s i t may be referred t© the joint committee osr Indust r ia l Co-operation and Conciliation* 15. Both sides must be equally represented on committees hearing disputes, 16. Fail ing to reach an agreement an umpire may be selected whose decision is binding on a l l p a r t i e s . 17. I f no decision can be reached e i t h e r as to a settlement of the dispute, or tb the selection of an umpire, the matter may be referred to a rb i t ra t ion , or be made the subject of an investigation by the State of Colorado Industr ia l Commission. 18. Employees representatives are protected against discrimination because of actions on behalf of the i r const i tuents . IV. Social and Indus t r i a l Betterment. — -  i l l ' -  i  i  • - i " -  • - • • • • • • • • , | , m  m.imm - i n i  •  i  •IIIIII i This section of the Indust r ia l Constitution provides for executive supervision of a l l vselfare worfc; the co-ope ration of the president ' s executive assis tant with joint committees in carrying out policies of social and industr ia l betterment; a permanent advisory board on welfare questions, composed of company's officers selected by the president, to meet a t least every s ix months. The supervision of community needs by the president 's executive a s s i s t an t , including sanitary, medical, educational, re l ig ious , social and other needs of the different industr ial communities. The publication of a company periodical . 66. The costs of administration of th is plan of employee representation, and of furthuring industr ia l betterment policies are borne by the company. Some idea of the amount of worfc accomplished through th is system of representation can be gathered from the following; "During the f i r s t s ix months of 1922, there were 49 requests accepted (that i s , se t t led in favor of the plainer) by the mine superintendents, while 22 were rejected; the pres ident ' s industr ia l represent-ative accepted 50 and rejected 37; the Joint conference or joint committees accepted 145 and rejected 45; and one request was aooepted and one rejected by the president. At the end of the six months 18 other questions were s t i l l pending. In this period, then, a t o t a l of 368 requests had been raised, of which 245 were accepted and 105 rejected, The par t icular problems dealt with are s ignif icant , Pifty-four percent involve working conditions, (improvements to protect employees and to f ac i l i t a t e the i r worl); twenty percent, l iv ing conditions, (mostly questions dealing with the maintenance or rental of company houses); seven percent, matters of employment, (hiring or f i r ing) ; six percent, wages; three percent, recreation; two percent, medical help, vihtle  the rest (1) J.D, Rockefeller, J r . "The Colorado Industrial Plan." pages 63 - 88. 67 . (1) were s c a t t e r e d , " The plan has not worked p e r f e c t l y . I t gives the men a voice in the cont ro l of the management only up t o a ce r t a in p o i n t . 5?he company has the f ina l word on a l l ques t i ons . In theory the plan i s to work j u s t i c e f o r a l l , i n p r ac t i c e i t doesn ' t qui te work out tha t way, not that the theory i s wrong, r a the r the method of applying the theory I s not qui te r i g h t . I n the spr ing of 1918 the United Sta tes Government began to develop the theory and p rac t i ce of the shop committee p l a n . I t s main purpose in so doing was to keep e s s e n t i a l i n d u s t r i e s in operation fo r the period of the war, and t ha t a t the end of the war indus t ry in general would be in a pos i t i on to withstand the d i s looa t ing shocks of a period of r econs t ruc t ion . I t se t about t o accomplish i t s aims through the na t iona l War Labor Board. fhe award of the Board in the case of the General E l e c t r i c Company's P i t t s f i e l d Works, approved July 3 1 , 1918, was the f i r s t to provide f o r a works counc i l . In t h i s award the National War Labor Board decreed the condit ions under which shop oommittees should be e lec ted , and fur ther s t i p u l a t e d that in "the e l ec t ions (1) Jerome Davis, "Experimenting with the "Human Mechanics" of Indus t ry" . I n d u s t r i a l Management, January, 1923. tan) M M d m shal l pMrtd s ahsMSM r pmt laab l s fa r tt o ndnoiity m i M U k i t t i i b y limitin g th e righ t o f eac h rotor to ft  rat a fo r lo m tan a th o total  anothe r o f tb o aansattM to to  slestad. " ( 1 ) yor N M t i M tofort  th o OM M o f tt o hoar d tkoa i feat toaa  l a eperatio a a  gaaara l M * O committee eoaaiatla g af sbsm t f i f t y Mployotn , sloote d b y th o bod y o f tt o sontoMi I t tot  ao t prom t amtitol y satisfactory , s o a sa w ayata a aa a lMtitmtsa * ft e pla a adopte d fwridod fo r elootioa n t o to  hol d outsid e ta r plan t l m some publi c building . I t gar * th o saa o standin g to union an d non-unio n men . I t yrarido d fa r ta a kind s a f oaanol t toaa,  (1 ) a department o r sho p committee , (I ) a  gaasia l o r spposl n oosmlttee o f three , electe d b y tt o abator s a f th o sho p oommlttea* Thi s oommltte a aa a to  tafc a a p wit h th o management oase s whio h th o sho p oaantLtteo a M M Mahlo to set t le satisfactorily . This pla n suffeM d aaawafca t ato a pa t lat a practice. I t ha d toaa  layoso d b y a a outold o bod y aa d oontainsd som e feature s no t entirol y aatiafaator y to either employer s o r oaployMa . Furthermor e i t an a institatod a t a  tin * aho a friotio n oxlsto d betMo a tt o t> Qu o tod, W.L . Stoddard , "fh o Sha y OoandttM" . P*g* l i e • • —  -  - - - , —  •  • - - , 69. management and th e men, following a f t e r a  ecrloa a atr lna . fleitiher pa r ty was in the mood for f r iendly oo-operat ion. This plan d i f f e red somewhat fre * aaaaeqasn t plans approred by th e Board. Th e p ro r i s i on for holding e l eo t ions outside t h e p lan t wa s d iaear ie t , a a aa a tha t providing for minori ty r e p r e s e n t a t i o n . Th e reaae n for lnoluding t h i s p r o r i s i o n in the f i r s t plaoe wa s because the majori ty of the workers belonged to the union, and the Board desired to nroteot the non-union men from being shut out from represen ta t ion on th e oommittee. Later the .government plan was s tandardised and appl ied , with su i t ab l e va r i a t ions for pecu l i a r oiroumstanoes, in a l l the future awards of th e Board. I t would be use less to attempt a desc r ip t ion a f th e aaa * v a r i e t i e s of works oounolls in existence in th e United s t a t e s . Eaoh oounoil has d i s t i n o t i v s ind iv idua l f ea tu re s , though there are severa l general type s - the Leitoh Plan, the Colorado I n d u s t r i a l Ian , e t c . For small p lan t s the s ing le woiks oounoil or shop oommittee, i s general ly found.most s u i t a b l e , as one oommittee aa a usual ly handle a l l the work and a more complex system would only mean oonfusion. The l a r g e r and more ooaplex the industry the more committees wi l l be neoeseary, a oounoil for eaoh department, rd th a general oommittee to deal with mat ters beyond 1fce soope of th e works 70. counc i l s . Some plans provide for a r b i t r a t i o n e i t he r by outs ide persons , or in some other manner. In August, 1919, there were 825 works councils i n the United S t a t e s . I n February, 1982, there were 785. * ' Olhis i s an ind ica t ion of the rapid spread of the idea of employee represen ta t ion in i ndus t ry . fb) Canada. In Apr i l , 1919, a Royal Commission known as the Royal Commission on I n d u s t r i a l Rela t ions , was appointed by the Dominion Government; "Jo consider and make suggestions for securing a permanent improvement in the r e l a t i ons between employers and employees; and to recommend meais for insur ing that i n d u s t r i a l condi t ions af fec t ing r e l a t i o n s between employer and employee s h a l l be reviewed from time to time by those concerned, with a view to improving condit ions in the fu ture . " (8) The commission was d i r ec t ed (1) to make a survey and c l a s s i f i c a t i o n of the ex i s t i ng Canadian i n d u s t r i e s ; (8) to obtain information as to the charac ter and extent of organizat ion already ex i s t ing among bodies of (1) These f igures were taken from Research Report So. 50, issued by the Bational I ndus t r i a l Conference Board, and e n t i t l e d "Experience with Works Councils in the United S t a t e s . " (2) Report of Commission on I n d u s t r i a l Relations in Canada, page 4 . n. • * ! • ! • * • • • * •arplejoe o reopeet i re l j ; (9 ) t o lureotlaat e • reHoa le dat e e o t o pregree e aed e b j Join t Iadaetrla l Ceeneile i n Canada , Gree t Brita in , aa d th o Halte d Statoo . A l i o th o Oenedaalo a foun d unres t I D a l l part o of Oaaada , I t on e dleooTere d t o b o acr e preaoonee d l a Western Oanada . Th o Ceanleaio n o f f o nd th o followin g aa th o ohlo f oaaao a o f th o enroot : (1) Uaomploja o at aa d th o foa r o f unemploymen t • (2) Ug h ooa t o f l l r l n g l a re lat io n t o wago a aa d tho dooli e o f th o worke r fo r a  largo r shar e o f th o prodaot o f hl a labor* . (S) Desir e fo r ahorto r hour a o f labor * (4) Saala l O f th o righ t t o organis e aa d refusa l t o rooognize th o unions * (5) HaaHo I o f ool loot lr o bargaining . f t ) Lao k o f ooafldoao o l a ooaotltato d gor e rami a t. If) Ineeff lo iea t aa d poo r homing . f t } Bootriotlorn a apo a th o freedo m o f opooo h aa d press . ( t ) Ostoatatloa o diapla y o f woalth . (10) Lao k o f equa l oduoatloaa l opportanitloo . m ffao Oommiasio a reeenaende d that . j T ,  l o g l o l a t l e a b o enacted t o provid e for : (a) f ix in g O f a  minimu m wages , especia l l y fo r (1) Report , pag e • • 72, women, g i r l s , and u n s k i l l e d labor* (b) Haximum workday of e ight hours , and weekly r e s t of not l e s s than twenty-four hours . I I , Immediate inqui ry i n t o the following sub jec t s , with a view to ear ly l e g i s l a t i o n : (a) S ta te insurance aga ins t unemployment, sickness i n v a l i d i t y , and old a g e . (b) Propor t ional r e p r e s e n t a t i o n . I I I , fhat s u i t a b l e a c t i o n be taken by the government t o : (a) Regulate publ ic works t o r e l i eve unemployment. (b) Help bu i ld ing of workers* homes. (c) Es tab l i sh a bureau for promoting I n d u s t r i a l Councils . (d) Extension of equal oppor tuni t ies in educat ion. («) Steps towards establishment of Jo in t Plant and I n d u s t r i a l Councils. {£) That the f indings of the Commission be put in to e f fec t in a l l work con t ro l l ed by the government where the p r inc ip l e s of democratic management can be app l i ed . " (1) These recommendations were put forward in the hope tha t i n d u s t r i a l unres t might thereby be l a rge ly e l iminated . At the time the Commission was conducting i t s i nves t iga t ion there were a number of works counci l s already i n operat ion in Canada. Most of these plans had and s t i l l have as t h e i r objec t , - "So secure the l a r g e s t possible measure of j o i n t a c t i on between employer (1) Report of Commission, page 19 . 73. and employee in any mat te r s p e r t a i n i n g to t h e i r common we l fa re . " The bas i s of r epresen ta t ion of employees on these committees v a r i e s . Some p lan ts have one r ep re -sen ta t ive for every ten workers, o thers one represen t -i a t i v t for each one hundred workers, the average being about one to each t h i r t y employees. i n most oases they are e l ec t ed by secre t b a l l o t , and meet with an equal number of r ep resen ta t ives of the management, appointed by the management. She chairman may be se l ec t ed by the whole board, or by the management. In addi t ion the re may be one or two s e c r e t a r i e s appointed e i t h e r by the management, or one by the management and one by the employees. The p lan t may be divided in to groups e i t h e r according to l oca t i on , or by c r a f t s . I t i s general ly provided tha t the r ight of employees to membership in any labor organizat ion wi l l not be i n t e r f e r e d With. To be e l i g i b l e for e l ec t ion as a representa t ive there i s generally a s t a t ed age, a s t a t e d length of service with the company, in some cases the r ep resen ta t -ive must be a c i t i z e n of the country. As a ru le no foreman or other o f f i c i a l having au thor i ty over the workers i s allowed to represent the workers. Hastings, a s a  rai t ar t ha l t ans a a  month , speola l meetlng a bein g cul le d wha n aaaaaaarj . thn y ar a usually ha l t o n tha premise * a f tb a company . Generally ther e ar a a  numbe r o f standin g oommltteea. Sub-committee s ar a appointed to dea l wit h spec i f i c mat ters and tha n dismissed . Tha eanati tat lo n a f sem e eounoll a provid e tha t matters whioh oannot b e adjuste d betwee n tha individua l woiker and th e foreman ma y b e oarria d t a tha oounell , i f • a t aot t le d s a t i s f a c t o r i l y there , t o a  genera l council , (where one e x i s t s ) , an d f a i l i n g a n agreemen t ther e t a a r b i t r a t i o n . In most oases the mlnute a o f tha oounel l meetings are kept and publishe d fo r th a ia f era at ion a f the employees. In some oase s the y ar a kep t e n f l l a l a the offioa a f th a secretar y avai l able fo r inspectio n a t any t ime . The subjeots deal t wit h includ e a  grea t v a r i e t y of mat te rs connected wit h th e everyda y l i f e i n an industria l i n s t i t u t i o n , wagea , hour s a f labor , grou p insurance, hea l th , promotion, abaenteeiam , production , recreation, sani tat ion , etc * » 1 ' (1) Joint Councils l a Industry , Departmen t o f Labor , Canada, 1921. page s a  -  • . 7 5 . At a Conference on I n d u s t r i a l Relations he ld a t Ottawa, February 21-22, 1921, a number of employers, and r ep resen ta t ives of employees, gave ou t l ines of the p lans in operat ion in t h e i r var ious p l a n t s . Mr*A.H. Young Manager of I n d u s t r i a l Relat ions for the In t e rna t i ona l Harvester Company, ou t l ined the p lan in effect in that company's p l a n t s . The i n d u s t r i a l council plan of t h i s Company wa e put in to e f fec t March 12, 1919. I t s un i t i s a works counci l a t each of the p l a n t s . The works council i s composed of a number of e lec ted employee r ep re sen t a t i ve s , and a  not g r ea t e r number of se l ec ted management r ep resen ta t ives* She p lan t i s a r b i t r a r i l y divided in to geographical d i s t r i c t s so that the var ious c r a f t s and shops might be represented . The number of r ep resen ta t ives va r i e s with the s i ze of the p lan t - t o be not l e s s than f i v e . Employee represen ta t ives must have had one y e a r ' s continuous service with the company, must be a t l e a s t twenty-one years of age, and a c i t i z e n of the country . Ho employee having the r igh t to h i r e or discharge i s e l i g i b l e . A l l employees below the grade of a s s i s t a n t foreman may v o t e . The chairman of the council i s the Manager of I n d u s t r i a l Re la t ions . 76. The functio n o f th e oounoi l i s t o shap e th e company's ro l io y I n a l l matter s o f amtaa l in teres t , controversial o r non-controversial . Vote s ar e oas t o n the uni t bal lo t plan . A  majority o f on e sid e deolde s the vot e o f tha t sid e an d a  s ingl e bal lo t i s oas t t o reoord tha t vote . Afte r th e oounoi l ha s agree d t o i t s l ine o f aotio n i t s reoonxnendation s ar e forwarde d t o th e superintendent fo r execution . I n cas e o f a  deadloc k in th e counci l ther e I s th e righ t o f appea l t o th e president o f th e company . Th e presiden t ma y c a l l together a  genera l oounoil , mad e u p o f a t l eas t tw o employee representative s fro m eac h plan t eleote d b y th e employee representative s I n th e loca l oounoil . The y meet wit h a  no t greate r numbe r o f oomran y o f f i c e r s . The employe e representative s hav e a  righ t t o withdra w and ao t seore t ly . Thi s give s the m th e opportunit y t o dlaouse an y questio n wit h thei r const i tuents . Th e oounoil the n meet s agai n t o reao h a  f ina l decis ion . I n order t o s e t t l e a  disput e arbitratio n ma y b e agree d upon , - mus t b e befor e a  s ing le , d is interested , non-partisa n arbitrator. I f n o suo h perso n ca n b e foun d eac h aid e se leots one , an d th e tw o s o seleote d se lec t a  third . A wajorlty o f th e arbitrator s rule . Twenty-two work s oounoil s wer e i n existenc e a t tha t t ime, (February, 1921). The oouaoil plan includes a guarantee of no discr iminat ion because of membership in any labor o rgan iza t ion . »** Other plans were ou t l ined , but they are a l l somewhat s i m i l a r in s t r u c t u r e , and a discussion of them in a paper of t h i s kind i s not p e r t i n e n t . There i s in Manitoba a "Council of Indust ry" oreated by the I n d u s t r i a l Conditions Aot, and inaugurated i n May, 1920, This oounoil oons is ts of f ive members, two represen ta t ives of Employers in Indus t ry , nominated by the Employers' Associat ion of Manitoba, and appointed by the Government, two represen ta t ives of Employees, nominated by the Trades and Labor Council, and appointed by the Government, and an independent chairman, appointed by the Government. The oounoil does not oonoern I t s e l f with a g r i c u l t u r a l p u r s u i t s , or railways operat ing under fhe Railway Act of Canada. The council may take act ion upon the oamplaint of any person or organiza t ion , or upon i t s own i n i t i a t i v e . According t o a report dated December 28, 1922, the oounoil had dea l t with the following number of oases . Cases of I n d u s t r i a l Dispute 9 1 . To s e t t l e these cases there were he ld : Meetings of council 207, (1) Report of a Conference on I n d u s t r i a l Rela t ions , February 21-22, 1921 - pages 6 - 9 . 78, Interviews between oounoil and p a r t i e s to dispute 181, Interviews between oh.airman and p a r t i e s to dispute . . . 200, of these 91 oases , 14 were re fe r red to the Council by Employers, 61 were r e fe r r ed t o the Council by Employees, 3 were re fe r red to the Council by mutual agreement of both p a r t i e s , and 13 were i n i t i a t e d by the Council. ' 1 ' The case of d isputes considered by t h e oouncil have been between: Employers' Associat ions and Labor Unions. Indiv idual Employers and Labor Unions. Indiv idual Employers aid Unorganized Employees. Union and union. Unions and t h e i r members, and Company and company. Subjects in dispute included: Wages, agreements or a l leged v i o l a t i o n of agreement, d i smissa l , condit ions of work, union j u r i s -d i c t ion and c o n t r o l , boycot t , e t c . (1) Report, page 1 . 79. The oases were disposed of as follows: Beyond Councils' jur isdict ion . . . . . . . . . 1 case, Settled on basis of Councils finding • 45 cases, Settled by negotiation between par t ies , af ter conference with council without necessity of issuing finding, 27 Sett led in conference with chairman, without necessity of reference to council, 14 w Findings rejected, S • Pending 2 " "The eouncil of Industry of Manitoba is ttie only one of i t s kind in the world. I t possesses features that distinguish i t from other councils of a similar nature, throughout the world, whose functions also are to promote good feeling and harmonious co-operation between the various factors in industry; such as The Industr ia l Councils of Great Bri tain, the Labor Councils of Australia and Hew Zealand, ta* Kansas court of Industr ial Relations." *1^ The report enumerated the following features, as giving the council I t s value and contributing to i t s efficiency: 1 . The absence of legal t echn ica l i t i e s . 2. The absence of compulsory features. (1) Report, page 10. 80. 3 , Adequate powers of i n v e s t i g a t i o n . 4* Unanimit y in decision. 5. Permanency. "Some one or o ther of these fea tures d i f f e r -e n t i a t e s the Council of Indus t ry for Manitoba from a l l o ther s i m i l a r o rgan iza t ions . The I n d u s t r i a l Council of Great B r i t a i n i s in the nature of a Committee of Inves t i ga t i on for each industry* The Labor Courts of Aus t ra l i a possess compulsory fea tu res which have given r i s e to very ser ious t rouble and whioh have gone far to n u l l i f y the good ef fec ts of these Labor Courts The Kansas court of I n d u s t r i a l Rela t ions i s a Court of Law, presided over by a Judge, and i t s procedure i s moulded upon t h a t of the Law Court . I t s f indings are compulsory. In a l l theBe fea tures i t d i f f e r s from the Council of Indus t ry , and, we venture to th ink , to the advantage of the l a t t e r . " (1) While t h i s council i s not a works council in the ooiamonly accepted meaning of tha t term, i t does something toward bringing about b e t t e r r e l a t i o n s between the p a r t i e s to indus t ry , and therefore deserves a place in a d iscuss ion of works counci ls as a means of improving I n d u s t r i a l r e l a t i o n s . (1) Report, page 12 . 81* Chapter V. P r inc ip l e s Underlying Works Councils* There are ce r t a in p r inc ip l e s underlying the works council idea which are abso lu te ly fundamental to the successful working of any works council p l a n . These a r e : 1*. There must be a s incere des i re on the par t of both employers and employees t o co-operate in the management of the bus iness . Both sides must be wi l l ing to compromise. I f there i s continual opposit ion on the pa r t of one s ide or the other no progress could be made and the works council would be worse than u s e l e s s , for i t would merely tend to accentuate d i f fe rences . Hor should t h i s d e s i r e f o r co-operat ion come from purely s e l f i s h motives, from the wish to escape or avoid unpleasantness that may be present or Impending. The works council should not be used merely as a temporary expedient . I f i t i s not used fo r cons t ruc t ive work i t w i l l not long prove useful for s e t t l i n g d isputes - f o r employees w i l l grow susp ic ious , w i l l suspect tha t the employers are " t ry ing to pu t something over" on them. The chief end of the council should be to prevent disputes not to s e t t l e them. —yrrr—-2 . I t i s a l so necessary t h a t represen ta t ives r e a l l y represent those #10 e lec t them* There must be no in te r fe rence with e l ec t i ons by the management. Management should in no way t r y to influence t h e wo ricers in t h e i r choice of r e p r e s e n t a t i v e s . The woriters may n a t u r a l l y be expected to exercise reasonable i n t e l l i gence and care in the s e l ec t i on of t h e i r r e p r e s e n t a t i v e s . Where Management and workers are represented on the same counci l , i t i s e s s e n t i a l tha t equa l i ty of s t a tu s of the two groups be recognized. I f t h i s i s not done the workers w i l l not respond to suggest ions the management may make, nor w i l l they f ee l themselves free to make suggest ions themselves, 3 , I t i s advisable t h a t management should consult the workers before a plan f o r i n d u s t r i a l oo-operatlon i s placed before them. I f t h i s i s done, in the proper s p i r i t , the workers w i l l not be looking fo r a "nigger i n the woodpile". Ins tead they w i l l be more disposed to reac t favorably to the oonfidenoe placed in them with a l i k e confidence. When the management of a business abrup t ly , without warning, offers the workers a share in the cont ro l of condit ions of l abor , e t c . , the workers are apt to be susp ic ious , p a r t i c u l a r l y i f the offer comes a f t e r a period of t r o u b l e . Thus while the workers might aeoept the p lan they would spend t h e i r time wai t ing 8 3 . for the management to d i sc lose i t s " u l t e r i o r mot ive ." 4* The r igh t to organise should he recognized. I t i s Just poss ib le tha t the mere fact tha t the workers may organize i f they wish would act as a r e s t r a i n t on t h e i r a c t u a l l y doing s o . Whether or not t h i s i s des i rab le w i l l be considered l a t e r . I f without organiza t ion they can secure a l l tha t the union might get for them, and perhaps more, including a voice in the detetminat ion of condi t ions under which they work, the need f o r organizing w i l l not seem so g r e a t . Shis leaves the worker free to do as he wishes yet does not penal ize him f o r h i s a c t i o n s . junot iona of a works Council. Hext in importance t o the p r inc ip l e s which underly the works council idea , are the functions which these counci ls s h a l l perform when organized. The functions and a c t i v i t i e s of a works council may cover a wide f i e l d . 5?hey may inc lude , (1) the soc ia l and r ec rea t iona l l i f e of the workers, (2) t h e i r l i v ing and working condi t ions , (3) such subjec ts as labor turnover, c e r t a i n l y of employment, and provis ions for increas ing productive e f f i c i ency . I t i s 4ust poss ib le that a t f i r s t the works oouncil w i l l more resemble a grievance committee from G4a the nature of subjects discussed than a body for constr-uct i r e work. But because minor grievances oan lead to serious trouble i t i s desirable that they should be se t t l ed as quickly as possible, and as fa i r ly as possible. By having such controversial matters threshed out at council meetings the poss ib i l i ty of future trouble i s in many oases removed; and If not altogether removed, a t leas t lessened. I f a works counoil performed no other work but this i t s existence would, in par t , be jus t i f i ed . She functions of a works counoil will depend largely upon the amount of control or authority i t possesses. I f i t s authority i s great i t s funotions will be many and varied, i f limited they wil l be few. Tbm amount of oontrol given to a counoil wi l l , or should, depend upon the ab i l i t y of the members of that eounoil to assume responsibi l i ty . I f the constitution of the council provides for too many a c t i v i t i e s , i t may be that the wo A wil l be done carelessly. "Progress i s made in patohee, not in bulk." The amount of progress made wil l depend not only upon the conditions in an industry at any part ioular time, but also on the ab i l i t y of the employers and employees to r i se to the s i tuat ion, to put aside prejudice and selfishness, and to work together for the i r common good. 8 5 . Works councils cannot automatioally secure co-operation between employers and employees. I f a t f i r s t the workers are inclined to t rea t the woAs council simply as a means of air ing t he i r grievances, and they find them se t t l ed sa t i s fac to r i ly , the number of grievances presented wi l l gradually decline. I f then the employers do not show an active in te res t in the council i t wi l l shortly languish and d ie . I t s work must he constructive i f i t i s to l i v e . I f the employees do not bring forward suggestions for increasing production, or lessening cos ts , and in a l l probability they wont, i t f a l l s t o the management to do so . I t wil l nearly always follow that when the workers have become accust-omed to workir^ on aonstruotive work, they wi l l soon bring forward suggestions of the i r own. I f sympathetic at tention I s given these suggestions the works council wil l f lourish, and grievances wil l vanish into tho background. In almost any council such matters as wages, piece ra tes , working conditions, hours of labor, e t c . will be subjects for discussion and joint aotion. ftutj other matters may be included suoh as the consideration of welfare work, providing medioal assistance, recreation-a l f a c i l i t i e s , housing conditions, and many others . 86. Chapter VI . Benefi ts and Shortcomings of the Works Council. The t e s t of any system i s i n the r e s u l t s produced. Has the Works Council accomplished anything worth while? I t i s as yet r a the r ear ly to form any de f in i t e dec i s ion . Yet we oan a t l e a s t observe various r e s u l t s following the establishment of works Councils. Let us take as our f i r s t example the Packard Piano Company, of which mention has already been made. The following improvements i n i n d u s t r i a l condit ions are given as d i r e c t l y a t t r i b u t a b l e to the in t roduct ion of a plan of I n d u s t r i a l Democracy. 1 . Reduced working h o u r s . 2 . Inore a se d out pu t . 3 . Production of b e t t e r ins t ruments . 4 . Increased workmen's incomes. 5. Put the whole man to work. 6 . Did away with misunderstanding. 7 . Gave each man a share of the r e s p o n s i b i l i t y . 8 . Made r e a l inventors of many workmen. 9 . I n s t i l l e d a s p i r i t of genuine comradeship in to the e n t i r e organiza t ion . 10 . Betab11she 4 a  no w kin d a f deaoeraey . Maalfoatly aa j pla n tha t aa n brin g abou t euo h reault a i a a aaaparatiTal y abor t t l a a - ( a l x yeara ) -  aua t b a eeunte d a f aaa a value i n bringin g orda r oa t o f ehao a i n induatria l ra lat iaaa . I t am y a t aal d tha t aaa a otho r pla n aaal d b a foun d abia h woul d giro a a a a groa t o r groa t or roaulta , flo  doub t tb l a i a traa -  ba t aaa a haa . Unti l aua h a  t ia a aaa a aaa a gran t mind evolve s a  pla n aapabl a o f doin g more , th a werk a aoaaal l raaainB on a e f fec t iv e aaaa a a f aaaarin g a a improvemen t l a industrial r e la t ions . I t ha a jrialda d oonoret e an d wort h while raaulta . A further exampl e tha t an y b a oita d i a tha t embodied i n th e so -ca l l e d Induatria l Plan . Th a followin g favorable raault a har e bee n olalae d t o th a aredl t a f thi a plaa: 1* Mor a oontinuou a walkin g o f th a planta , an d laa a interruption i n th a employmen t a f th e workara , result ing i n a  large r retur n fa r aapita l an d labor . 2 . Improve d workin g an d l iv in g oondltione . 3 . Pr o quant an d olos e oontao t betwee n enployee a an d aff iaars a f th e company . 4 . Eliminatio n o f griaranaa a a a diaturbln g faatora . 5. Good-wil l develope d t o a  hig h degree . 6. Th e ereatlo n o f a  oommnnit y a p i r i t . (1) Joh n La i tab, "Ha a t a Haa" . paga a a l - t t . 88* T, Effective means of enl is t ing the in teres t of a l l pa r t i es to industry, 8. Of reproducing contact of ear l ie r days between employers and employees. 9 . Of lessening d is t rus t and suspicion. 10. Of securing eo-operation. ' 1 ' While the m suits in this ease may net appear so concrete i t none the less i s evident that co-operation is not only idea l ! s t i ea l l y correct hut pract ical ly workable. fhe question i s suggested at tails stage concerning the advantages which one may properly expect to find resulting from works councils. In the f i r s t place such councils "acquaint both sides with the faots, with the point of view (2) of the other s ide , and with the intentions of the other side1*. They thus give both the employer and the employee a l i be ra l eduoation in industrial management. Because of the i r educational value they train the workers for leadership and responsibi l i ty . I f the workers are given the reasons for certain courses of act ion they wil l be mors l ike ly to act reasonably than if steps be taken a r b i t r a r i l y , Knowing the facts behind the action they will be mors ready to accept leeponsibil i ty for the i r owa act ions. In the second place the value of employee ( I j *«B, Rockefeller, ST.  "Co-operation in Industry", I n t . Lab. Rev. April , 1921, (2) Tead and Hetealf, "Personnel Administration", page 427. 89. r ep resen ta t ion as a st imulus to production i s g r e a t . I t a c t s a s an incen t ive to the individual weaker. I t increases h i s i n t e r e s t i n h is work, in h i s fellow-workers, and t h e i r i n t e r e s t in him. He comes to be recognized as a human being, not a cog in a machine. This redounds to h i s benefit not merely in s h o r t e r hours , or increased wages, but i n an increase i n se l f - rospec t» A man who has no  proper se l f -respect cannot eomnand respect from o the r s . She uorks Council fta the th i rd place Will fcojfeft to f o s t e r goodwill , t ha t thing so e s sen t i a l to i n d u s t r i a l p rospe r i t y and harmony, yet so de l i ca t e and e a s i l y des t royed. " I n d u s t r i a l goodwill i s not necessa r i ly a v i r tuous w i l l , or a (1) loving w i l l ; i t i s a benef i c i a l r ec ip roc i ty of w i l l s " . Goodwill does not mean merely an absence of antagonism. Hor does i t imply abject submission or passive acquiescence i n a l l m a t t e r s . I t does imply a genuine respect f o r the man on the other s i d e , and for h i s v iewpoint . Where t h i s respect i s mutual and co rd i a l the foundation, a t l e a s t , i s l a i d f o r goodwill. There i s the fu r the r r e s u l t that the t r a i n i n g which the worker receives in leadership helps him to become a b e t t e r a l l round c i t i z e n . He i s abie to en te r o ther walks of l i f e besides the i n d u s t r i a l , with the r e s u l t tha t h i s l i f e w i l l be f u l l e r . The community in which he l i v e s w i l l a l s o bene f i t . (1) J»R* Commons, " Indus t r i a l Goodwill", page 19 , • 0 . There a r e , however, shortcomings to most good t h i n g s , nor i s tfee works oouacll an except ion. The object -ion i s r a i sed t h a t such counoi ls e x i s t only a t the employers' p l e a s u r e . I f the employer refuses t o car ry out the decis ions of the works oounoil , the employees are h e l p l e s s . Then there i s the p o s s i b i l i t y of unscrupulous employers at tempting to make use of the works counoil merely as a means f o r ge t t i ng from the workers something they would not give under ordinary oiroumstanoes. Employers are i n a b e t t e r pos i t ion to know the t rue condi t ion of an indus t ry than are the employees, Therefore i t i s poss ib le that the workers might be led to c e r t a i n courses of ac t ion which they would r e s i s t i f in possession of a l l the flMlte, I t i s poss ib le to get equa l i ty of r epresen ta t ion in numbers, but i t i s p r a c t i c a l l y impossible t o get equa l i ty in mental equipment, e t c The worker may be outwit ted by a competent manager o r o f f i c i a l . Management w i l l doubtless genera l ly have the upper hand. The works council cannot deal with many of the questions tha t beset indus t ry as a whole, questions that are absolute ly beyond the control of any one es tabl ishment . I n d u s t r i a l Counoils on a na t iona l s ca l e , as reoommended by the Whitley Committee, would tend to minimize the dangers of th i s shortcoming, for here the a f f a i r s of the e n t i r e indust ry in the country could be reviewed, and each establishment brought in to l i n e . • * . Ihe OOUM U ple a l a BagLea d te  boe a orltlolood.e e be tag too  Majjionlolng . thi a erlt ielo a too too*  wee d aer o pertlealerly b y th e aer o red ! eel groap e o f labor . fhe y OOOM• th e eewaatte e o f ployin g fo r to o eapper t o f bot h e l dee. ly pioaloln g toe w  arte re wor e thor n the y ooul t rooll y got , to o ahltley Ooewdtte e gaine d th e owppor t o f labo r b y preataea , wbdeh, t o too  aer o radica l wa r fee re, oppooro 4 t o H o largel y eawty prealeee . A t to o n o t tin e to o eapper t o f to o eapleyere oa o retaine d o y ao t givin g to o aee h t o too  warfare . OB to*  otte r han d i t bo o boe a erltiolee d a o bein g too  radleal . I t o i l depeed e M O M ' I viewpoint , l a itaol f too  Whitle y Seheae aooa t o  ra d ioal ehaag e i n too  aanaejeaea t o f Boa t o f too industriee o f groa t Britala * leather oritloio B i o tba t a o proviele a «o o aed e l a too Whitle y Bchea e fo r to o paxehea e oa A dletrlbatlo e o f ra w aatozlala. I t i o argue d toot  beeaao a o f ta t laportea t par t played b y sa w aatorialo l a th o ooatat t o f industry , too  ga l ao wbiob ba d ooa o t o labo r wor o o a aotbla g oaaparo d to  wha t the y aifbt hav e boo n ba d th o Work a Ooaaoil a boo n giro n oontro l oro r this importan t question . Ba t i t i o no t inoenooirabl o tba t before aaa y year e poao t th e parohao o an d allooatio a o f ra w aatorialo an y boooa o a  «mootlo a t o b o deal t wit h b y Worka counoiio. Fo r th e oyoto a o f oaployooo * repreoentatlo a l a not waohaagoablo , eithe r l a Orea t Brital a o r Aaoriea . Th o oouaoll pla n l a "elaetie " eaoag h t o allo w fo r iaolaoloa n who a foaad aooeooary . ' • 92. (adapter VI I . Works Oouncils and Organized Labor. A aumber of quest ions always a r i s e in connection with Works Oouncils and the Trade Unions. Will they d isp lace the Trade Union; are they being es tab l i shed with tha t end in view? Will they encourage or discourage t rade unionism? I t i s as yet a l i t t l e ea r ly to make any de f in i t e statement concerning these ques t ions . One thing i s ce r t a in , however, there i s a grea t deal of opposi t ion to the works council idea by some sec t ions of organized l a b o r . I n Great B r i t a i n the council p lan d e f i n i t e l y recognizee the union. More than t ha t i t d e f i n i t e l y c a l l s for the es tabl ishment of unions, inasmuch as i t i s based upon the organiza t ion of both employers and employed. There can be l i t t l e ques t ion, the re fore , t h a t in Great B r i t a i n at l e a s t Works Councils do not tend t o d isp lace the Union. 1 In America the s i t u a t i o n i s somewhat d i f f e r e n t . There has been no s ing le scheme formulated for the e n t i r e country . I t i s e n t i r e l y a personal mat ter between the employers and employees whether works counci ls sha l l be formed, whether the council when formed sha l l recognize the union, e t c . Most of the plans in effect in America provide tha t no d iscr iminat ion s h a l l be made i f a worker i s a member of a union, or n o t . Why then should some sec t ions of 9 3 . organized l abor oppose the Works Council so s t rongly? In the f i r s t place i t i s charged, the works council i s simply a company device es tab l i shed by the employers fo r the purpose of keeping employees from joining the union. There are severa l p r inc ip l e s underlying the works council p l an , which, although re fer red t o above, i t w i l l be well to c a l l to mind again: 1 . Both employers and employees have the r igh t to organise as each sees f i t , without in terference or d i sc r imina t ion . 2. Employees have the r igh t to request recogni t ion of the unions, the employers to accede to o r refuse the r eques t . 3* Those engaged in an industry have the r i gh t to organize a body representa t ive of themselves without any in te r fe rence or d iscr iminat ion on the par t of unicn or o ther organiaati. on. I f these p r too ip lee are conscient iously l ived up to have the unions any grounds fo r claiming that these oounoils are company unions? The plan i s in most oases proposed and fos tered by the employer. Sometimes i t i s i n s t i t u t e d following a period of ser ious labor t r o u b l e . Being s t r i c t l y a works organiza t ion no one not connected with the industry i s expected to i n t e r f e r e . How does t h i s a f fec t the t rade unions? She Trade Unions were organized ch ie f ly fo r •4 . defensive purposes , t o proteo t th e worker s agains t th e unscrupulous employer . Th » ugh th a anio n the y enjo y a bargaining powe r approximatel y equa l t o tha t o f th a employer . 1% i a maintaine d tha t th e employer 1 a daoialo n l a f ina l o n a l l questions* I t l a therefor e quit e poaeibl e fo r hi m t o disregard th e doalalon s reoommandatlon s o f th e eounoil . I s oasa th a worker s war e foree d t o str ik e t o aeour e the i r demands the y woul d b e helples s withou t th a unions . 3 s tha t while the y migh t mak e a  temporar y gai n throug h th a wozk a oounoil the y woul d los e I n th e end , throug h los in g th a support o f th e unions . The y woul d b e n o bette r of f tha n i f n o union s ex is ted , an d would , therefore , b e l e f t ent ire l y at th e merc y o f th e employer . Having state d i t s oppositio n t o Work s Oounsll s i n somewhat simila r languag e t o th e foregoing , th e Amerisa n Federation o f Labo r passe d th e followin g resolution i "Whereas, i n vie w o f th e foregoin g faat a i t i a evident tha t oompan y union s ar e unqualifie d t o represent th e interes t s o f th e workers , an d tha t they ar e a  delusio n an d a  snar e se t u p b y th e aompamies fo r th e expres s purpos e o f deludin g th e workers int o th e b e l i e f tha t the y har e som e protection an d thu s hav e n o nee d fo r trad e unio n organisation; therefore , b o i t RESOLVED, Tha t w e heart i l y condem n a l l suc h oompamy ^ m^m y an d advis e ou r membershi p t o haw s 95 . nothing to do with them; and , fee i t fu r ther HESOLVEJ), That we demand the r i gh t to bargain e o l l e o t i v e l y through the only kind of organizat ion f i t t e d fo r t h i s purpose - the t rade union, and t ha t we stand l o y a l l y toge ther u n t i l t h i s r igh t i s conceded u s . " W fhe Works Council i s an admission of the r igh t of the workers to bargain c o l l e c t i v e l y . But only of the r i g h t of those engaged in the p a r t i c u l a r i ndus t ry . The Works Council o f fe rs a means f o r s e t t l i n g p lant d i f f i c u l t i e s before they reaoh the s tage t ha t makes i t necessary to c a l l in the t rade unions. The t r ade unions fear that the effect of the Works Council w i l l fee t o l u l l the workers in to the eve r l a s t i ng s leep of contentment, making them unable or unwil l ing to withstand the encroachments of a grasping employer. This may fee the proper view to take of the matter i f a l l employers are looked upon as wolves in sheep's c lo th ing . On the other hand i t may not i f we regard them as of average honesty an t i n t e g r i t y and with a f a i r sense of j u s t i c e . However , most employers feeing 'average ' in t h i s sense , i t behooves the workers to guard t h e i r i n t e r e s t s agains t any olroumstances. There seems t o fee l i t t l e or no reason why the Works Council and the Trade Union should not work toge ther , I I I ^ W ^ I M I I I W H I W I W M ^ •  •  • • i•••••.••I i n • " » ' " i w . . i  •" » * " • • " • • • p i - w w i w w M • ! — M W ^ — — i — M m m t m m m a m w W (1) Quoted, Vfta. L. Stoddard, "Labor and the Shop Committee", I n d u s t r i a l Management, September 1919, 96. e spec ia l ly I n eas t s wher e th e majorit y o f worker s i n a n Industry ar e wel l organized . I f th e w o rice oounoll e oa n obtain fo r th e unorganize d worke r th e benefit s whio h th e trad e union gat e fo r i t s members , ther e i s adde d Jus t if i  oat ion fo r the oounoil . This , o f course , doe s no t mee t th e union s oharge tha t th e oounoi l wi l l kee p th e worker s fro m joinin g the unions . O n the othe r han d whe n employer s har e con e t o reoognize co l l e c t i v e bargainin g throug h th e work s oounoi l e m oh of th e oppositio n t o trad e unionis m wil l disappear , an d employer an d organize d labo r w i l l fin d themselve s brough t oloser together , wit h a  mor e sympatheti c understandin g o f eao h other's aim s an d ideas . Mr. Herber t Hoove r deal s wit h i t thus , "Th e stronges t argument o f Unio n Labo r aga i is t th e sho p oounoi l pla n shoul d l i e i n th e fac t tha t natio n wid e organizatio n o f labo r i s essential i n orde r t o oop e wit h th e unfai r employer , bu t I believe tha t i f the y embrac e encouragemen t t o sho p oounoi l organization the y Becur e fo r themselve s no t onl y t h i s guarantee agains t unfairness , but , ope n u p t o themselve s th e whole f i e l d o f constructiv e co-operatio n I n th e furthe r (1) reduction o f industria l c o n f l i c t . " In a  countr y wher e labo r i s strongl y organised , a s i n GXea t Britain , th e iVork B Counci l ide a ooul d no t b e pu t int o praotioe successful l y i f th e trad e union s wer e ignored . I n (1) "Wha t Americ a Faces" . Industria l Management . Apr . 11/21 . 97. any event i t should be s t rongly emphasized that t he works council movement is not a t rade union de fea t i s t movement. For only when the workers a r e behind a movement of t h i s kind can there be any p o s s i b i l i t y of i t s success. Qhnptor T m t , Oonolnaloa. Do work a oouaoll a of f or a  solutio n fo r to o prooon t day la d oat r i al probloa . l a t  hi a etud y tha t proble m ha a hoo a assumed t o ho , f l r a t , th o establishin g o f righ t relation e hotwooa employer s an d employee s wit h a  rlo w t o givin g oao h party Just los , and , aoooad , th o improvemen t o f Industr y a a a whole, t o th o oa d tha t I t ma y y ie l d a  fol ia r Berrie s t o ooolefa/ . I har e examine d on e Beans , I . e . , th o work a ooundl , taken l a Or e at Brita in , th o Unite d Stat e a, an d Canada , fo r •ringing abou t laprore d re le t lone. A S yet i t l a to o earl y la th o histor y « f work a ooaaoll a t o dra w aor e tha n a  tentat iv e eoneluelon a s t o th e probabl e ontooae . •hoTero r work a oounolls har e bee n establishe d wit h a a earnes t desir e t o brin g about cooperation , ther e ha a bee n a  lessenin g o f th o di e trust eat hatre d whlo h l i e a t th e roo t o f Industria l u*rcet . Many writer s tak e a  mos t hopefu l att i tud e towar d tho queotlo n o f work e ooundla . "Th o Sho p Ooaaitte o aoreaea t la young" , doolare o wi l l l ea Learlt t Stoddard , "en d l t a l i a l tat lone ar e aor e apparen t t o aoa e mind s tha n lt a adrantagse. Bu t i t a l imitat ion s ar e -  o r ehoul d b e -aothlag bu t th e ordinar y bound s o f ooaao n sens e an d reason . 99. For no human a s s o c i a t i o n , no matter how i d e a l l y organized, can be p e r f e c t . On the other hand i t i s equally t r ue tha t the p o s s i b i l i t i e s of t h e shop committee movement are wider than the p o s s i b i l i t i e s of t h e Trade Unions and the Employers' Associat -ions , for t he reason that the shop committee represen ts the coming together of two elements which have h i t h e r t o been conspicuous because they have been apar t . The shop committee, in sho r t , i s a simple and f ami l i a r device appl ied in a new way t o meet and solve very old problems. I t succeeds where i t i s estimated a t i t s r e a l worth - no more - no l e s s . " Meyer Bloomfield sums i t up a s fol lows, nwe may be c e r t a i n tha t t he p r i n c i p l e of teamwork in management whatever the language in which i t f inds expression i s not a passing t h ing , or a f a n t a s t i c dream of the v i s iona ry . I t i s a p r i n c i p l e which has taken hold of men, which i n v i t e s the best b r a in s for i t s incorporat ion into the fabr ic of management, and which i f sure ly and s incere ly made the bas is of r e l a t i o n s between employer and employee holds out t h e biggest (2) hope for i ndus t ry . I t i s not machinery alone that m a t t e r s , the p r i n c i p l e s which have brought the machinery in to being are also important. " I be l ieve that the appl ica t ion of r i g h t (1) The Shop Committee, pages 89-90. (2) Management and Men, pages 135-6. 100. pr inc ip les . " says J.D. Rockefeller, J r . , "never f a i l s to effect r ight re la t ions ; "that the l e t t e r k i l le th but the s p i r i t giveth l i f e ; " that forms are secondary, while a t t i tude and sp i r i t are a l l important; and that only as the parties in industry are animated by the sp i r i t of fair play, just ice to a l l , and brotherhood, wi l l any plan which they mutually work out succeed." #hile a t t i tude and s p i r i t may be a l l important, I am of the opinion that bad maehinery will not allow the principles underlying the works council movement to be fully realized. There are several reasons why, in my opinion, the works council in i t s present stage of development does not offer a solution for the industr ial problem. In the f i r s t place i t does not change the position of the worker. He i s s t i l l a hired hand. Mo lasting improvement in industr ial relat ions can come t i l l the worker i s recognized as a v i ta l part in the management of industry. The desire on the part of the worker for shorter hours, higher earnings, improved working conditions is not going to have a set l imi t . This desire for a fuller control of industry will continue to assert i t s e l f , and if the workers cannot get t h i s fuller control through the works council they will find some other way. The council scheme does not allow for the fact that the underlying basis of relationship between 101 . employers and workers i s not a l l t h a t the workers, a t l e a s t , d e s i r e , and that u n t i l there is a change in th is b a s i s there cannot be permanently improved indus t r i a l r e l a t i o n s . I am not going t o attempt to s t a t e what form the change should take, nor am I arguing tha t the workers should be given a l l "they & d e s i r e , I am merely s t a t i ng what, i n my opinion, i s a fundamental weakness of the works council scheme, and one that wi l l prevent i t working out a complete success . In the second place there is no recogni t ion of an ac t ive public i n t e r e s t . Only the producers s ide of industry i s taken account of. If the purpose of the works council i s to secure a balance of fo rces , by an equilibrium of opposed i n t e r e s t s , every poss ibly dis turbing factor and v i t a l i n t e r e s t should be given free expression and cons idera t ion . THere I s Just the p o s s i b i l i t y of employers and workers combining for the purpose of explo i t ing the community. In the th i rd place there i s , as we have seen, a tendency for the works council to weaken the power of the t rades union. I n d u s t r i a l conditions being what they ar e a t present the Y/orkers need the unions. If the power of the union i s lessened the pos i t ion of the wo rkers w i l l be weakened, and much that he has gained wil l be in danger of being lost* The v i r t u e s the works council movement possesses may 102. outweigh i t s shortcomings, but most of the weaknesses work ou t to the benef i t of t h e employer, with the r e su l t t h a t t h e workers do not whole-heartedly support the movement. Without t h e i r support i t cannot succeed. Many w r i t e r s , i t i s t r u e , view t h e works council movement more favorably. I fee l j u s t i f i e d , however, in the stand I have t aken . THere i s much of good to be said for the works counci l , but I do not see how it can do away with a l l the antagonism between employers and workers. Genuine improvements in i n d u s t r i a l r e l a t i o n s wi l l come through the works counci l , but the p r i n c i p l e s embodied i n the movement w i l l not , in my opinion, find f u l l expression through the works council as i t a t present e x i s t s . 103. Baker, Roy Stannard, "She Hew I n d u s t r i a l Unrest, '1 Itoubleday, Page if  Company, 1980. Bloomfield, Meyer, "Management and Men," The Century Company, H.Y., 1919. Commons, J .R. " I n d u s t r i a l Goodwill," McGraw-Hill Book Co. I n c . , 1920. Cooper, W.R. "Th e Claims of Labor and Cap i t a l , " Constable and Co,, London, 1919. Feld , R.C. "Humanizing Indus t ry , " E .P . Dutton & Company, 8.Y., 1920. Prankel and F l e l she r , "The Human Factor i n Indus t ry , " The HaoMillan Company, 1920. Gant t . "Organizing for Work," Haroourt, Brace & Howe, E.Y., 1919. Gleason, Arthur, "What the Workers Want," Haroourt, Brace & Howe, H.Y. 1919, ( s ec . I I , Chap. I l l , See. IV, Chaps. I & I I ) . Hammond, M.B. "Br i t i sh Labor Conditions and Leg is la t ion during the War." Chap. X. Oxford Univers i ty Press , H.Y., 1919. Carnegie Endowment f o r I n t e rna t i ona l Peace. Hichen8, W.L. "Some Problems of Modern Indus t ry , " HesMt 8s Co. L td . , 1918. 104. Hodgkln, J ,E , (Edited by ) , "Quakerism and Indus t ry , " The Ear th of England Newspaper Co, L t d . , P r i e s t g a t e , 1918. King, $m. L, MeKenzie, " Indust ry and Humanity," Houghton, Miff l in Company, N.Y. &  Boston, 1918. Kirkal&y, A.W., "Labor, Finance and the War," Published by au tho r i t y of the Council of the B r i t i s h Associat ion for the Advancement of Science, I saac Pitman & Son, L t d , London. Le i tch , John, "Man to Man^" The Story of I n d u s t r i a l Democracy," B,C. Forbes Company, H.Y. 1919, Rockefel ler , John D. J r , , "The Colorado I n d u s t r i a l Plan", Including a copy of the Plan of Representat ion and agreement, adopted a t the Goal and I ron Mines of the Colorado Fuel and I ron Company, 1916, Stoddard, V&u L e a v l t t , "The Shop Committee". A Handbook for Employers and Employees, The MacMlllan Company, I . Y . , 1919, Tead and Metealf, "Personnel Adminis t ra t ion, I t s P r inc ip les and P r a c t i c e . McGraw-Hill Book Co, I n c . , 1919, Department of Labor, Canada, Jo in t Councils i n Indust ry , Bu l l e t in Ho, 1 . I n d u s t r i a l Relations Se r i e s , February, 1921, 105. Department of Labor, Canada, Royal Commission on I n d u s t r i a l Re la t ions , 1919. Garton Foundation, Memorandum on the I n d u s t r i a l S i t u a t i o n a f t e r t he War. Harrison and Son, London, 1919. National I n d u s t r i a l Conference Board, Boston, Works Counoils in the United S t a t e s , Published by Board, Boston, 1919. Researoh Report Ho. 2 1 . National I n d u s t r i a l Conference Board. Experience with Works Counoils i n the United S t a t e s , May, 1922. Research Report Ho. 50 . Report of a Conference of Employers. Held a t Woodbrooke, Birmingham. 11-14 A p r i l , 1918. Horth of England Mewspaper Company, P r i e s t g a t e . The Council of Indus t ry fo r the province of Manitoba Report, December 28th, 1922, The Whitley Report, I n d u s t r i a l Councils , 1918, Per iod ica l Bibliography. Abo-En, W.G. and W,L, Shafer , Representat ive Shop Committees, In I n d u s t r i a l Management, Ju ly , 1919. Alford, L,P. S ta tus of I n d u s t r i a l Re la t ions . In I n d u s t r i a l Management, July 1919, 106. Claris:, H. Pres ton , The Motives of I n d u s t r i a l Enterpr ise , The Annals of Hie American Academy of P o l i t i c a l and Socia l Science. Septeiriber 1919. Cols, G.D.H. Recent developments i n the B r i t i s h Labor Movement. American Economic Review, Sept . 1918. Coisdriefc, E.S. Some Results of Co-operation between Management and Hen. I n I n d u s t r i a l Management, July 1981• Davis, Jerome. Experimenting with the "Human Mechanics" of I n d u s t r y . In I n d u s t r i a l Management, January, 1923. E l i o t , C.A. Labor i n Democratic Soc ie ty . The Survey, Apr i l i g t h , 1919. Entwhis t l e , A. Rowland, Scope, Purpose and Effects of t he Milt l e y Scheme. I n I n d u s t r i a l Management, July 19EO. Frey, John P . A Thir ty Year Experiment in I n d u s t r i a l Democracy. I n t e r n a t i o n a l Labor Review, A p r i l , 1921 . Gleason, Arthur , The Mew Const i tut ional ism in B r i t i s h Indus t ry , The Survey, February, 1919, Gleason, Arthur, vilhitley Councils, The Survey. Apri l 5 - 1 9 , 1919, 107. Gosrpers, Samuel. Union Lal>or and the Enlightened Employer. In I n d u s t r i a l Management, Apri l 1 , 1921. Hoover, Herber t . l ha t America Faces . In I n d u s t r i a l Hana gem e a t , Apri l 1 , 1921. Le i tch , John. The Background of I n d u s t r i a l Democracy, Annals of the American Academy of P o l i t i c a l and Social Science, September 1 , 1919, Mason, Stephen G. How American Manufacturers view Employment Re la t ions , Annals of the American Academy of p o l i t i c a l and Sooial Scienoe, March 1919, Renold, O.G. Workshop committees, The Survey, October 5 th , 1918, Rockefel ler , J .D. J r . Representation in I n d u s t r y . Annals of the American Academy of P o l i t i c a l and Soc ia l Scienoe, January, 1919. Stoddard, Vto, L, How Par should a Shop Committee go? In I n d u s t r i a l Management, August, 1919, Stoddard, Vito. L* Labor and t h e Shop Committee. In I n d u s t r i a l Management, September, 1919. Stoddard, v«a» L. One Year of Shop Committees. In I n d u s t r i a l Management, January, 1920. Ih i t ney , Anlco L. Development of the Shop Committee System. Monthly Labor Review. November, 1919. 

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