UBC Theses and Dissertations

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UBC Theses and Dissertations

Industrial democracy in Britain : theory, practice and limitations Kinneavy, Thomas J. (Thomas Joseph) 1981

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INDUSTRIAL  DEMOCRACY I N  PRACTICE  AND  BRITAIN:  THEORY,  LIMITATIONS  by  THOMAS J . B.A.,  The U n i v e r s i t y  A THESIS THE  SUBMITTED  KINNEAVY  of  IN  REQUIREMENTS  York,  PARTIAL FOR T H E  MASTER OF  England,  1979  FULFILMENT DEGREE  OF  ARTS  in THE  FACULTY  (Department  We a c c e p t to  THE  OF of  this  GRADUATE Political  thesis  the required  UNIVERSITY  OF  Thomas  J.  Science)  conforming  standard  B R I T I S H COLUMBIA  September  (c)  as  STUDIES  1981  Kinneavy,  1981  OF  3E-6  In p r e s e n t i n g  t h i s t h e s i s i n p a r t i a l f u l f i l m e n t of  requirements f o r an advanced degree a t the  the  University  o f B r i t i s h Columbia, I agree t h a t the L i b r a r y s h a l l make it  f r e e l y a v a i l a b l e for reference  and  study.  I  further  agree t h a t p e r m i s s i o n f o r e x t e n s i v e copying of t h i s t h e s i s f o r s c h o l a r l y purposes may  be  department o r by h i s o r her understood t h a t  granted by  representatives.  s h a l l not  be  Political Science  The U n i v e r s i t y of B r i t i s h 2075 Wesbrook P l a c e Vancouver, Canada V6T 1W5  (2/79)  It i s  allowed without my  permission.  Date  my  copying or p u b l i c a t i o n of t h i s t h e s i s  f o r f i n a n c i a l gain  Department of  the head of  September, 1981  Columbia  written  ii  ABSTRACT  The  objectlof  democracy  as  development conceived  a  by  the of  Chapter what  various  corollary  towards  limitations  of  these One  industry  from as  development presentation  of  to  explained  in  factors,  i t  industrial  the  initial may  be  topic.  and  charts  the  and  a case to  for  examine  management  to  assess  industrial the  of  the  historical  industry  as  capabilities  from  sole the  of  some  mean  by  chapter  also  offers  worsening  the  E..E.C,  and  is  argued,  provided  in  right  to  as  of  and  for  main  views  of  the  of  defining of  control  Unionism  industrial  democracy  of  the  problem  separation  in  Trade  conditions,  a: r a d i c a l i z a t i o n the  the  s i n g l e mechanism  industrial  economic  set  the  of  labour.  British  the  a  participate of  strategies of  examining  particular  function  ascendancy  form  d i s c u s s i o n on  to  democracy,  the  the  theoretical  taken  The  exclusion of  for  terms  the  of  for  the  with  Royal  worker  the  Britain's  stimulus  the  democracy.  from  Labour  and  reThe  1960's  are  forthcoming  Movement. Bullock  These  inquiry  on  democracy.  Chapter  Three  trial  Democracy:,:  lined  together  Committee's  an  industrial  the  argue  in  Movement,  collective bargaining  demands  into  participation  Labour  derived  Two  tentative  entry  democracy;  democracy  control  of  to  political  to  achievements.  on  being  Chapter  is  provides  theorists  characteristics  dissertation  worker  British  industrial  ownership  this  deals  1977.  with  The  the  rationale  in  some main  detail  proposals  supporting  behind  the  put  evidence,  proposals  the  it  before  and  Commission  the  Committee  discussion is  eventually  on  Indus-  are  given  recommended.  to  outthe Reaction  i i i  to  the  the  publication  Confederation  media  and  in  with  the  Britain.  ceived  in  a  attention focus  Labour and  on  Fabian  and  subject.  unions  also  final  the  Trade  Labour  Union  and  Government,  Movement,  the  the  Governments  continue  the  It  Labour to  act  Similar  of  Bullock  industrial  failure  and is  that  Party  policy  on  any is  development  of  offers  analysis  re-  Fabianism  industrial  possibility  given  preservation  democracy  explained  argued  against  Report  1945-51)  is  treatment  the  the  (1929-31  inevitable  ideology.  of  of  a unified  to  the  of na-  collective  labour  demand  democracy.  other  collective  L a b o u r Movement weak.  in  weaknesses  i n s i s t e n c e on  against  concluding  control  Fabianism  whose  works  industrial  workers'  to  development  committed  the  trade  the  their  l e g i s l a t i o n on  The  the  future  will  full  remains  "formative"  coherent  the  any  and  bargaining for  Two  on  with  past  of  regard  Industry,  concerned  limitations  prevented  future  British  is  a critical  democracy  ture  Four  particular  through has  of  discussed with  academics.  Chapter and  is  chapter  countries. bargaining  potentiality  for  It  some  concludes,  remain real  sacred  moves  however,  cows  industrial  of  of  towards  that  the  democracy  while  British in  Britain  i v  TABLE  OF  CONTENTS  Page ABSTRACT TABLE LIST  OF OF  i i CONTENTS  iv  ABBREVIATIONS  CHAPTER ONE:  v  Towards  a Theory  of  Industrial  Democracy  1  Footnotes  C H A P T E R TWO:  21  The Development o f B r i t i s h I n d u s t r i a l Democracy: Preclude to Bullock.  24  Footnotes  CHAPTER T H R E E : Post  35  The B u l l o c k  Bullock  Report  ...  Reaction  47  Footnotes  CHAPTER FOUR:  54  The L i m i t a t i o n s  of  Industrial  Footnotes  CHAPTER  FIVE:  Footnotes  Democracy......  56 84  International General  37  P e r s p e c t i v e s and  Conclusions  86  102  BIBLIOGRAPHY  104  APPENDIX A  108  APPENDIX  110  B  V  LIST  OF  ABBREVIATIONS  ACAS  Advisory  ASTMS  Association  of  AUEW  Amalgamated  Union  of  Engineering  BIN  British  Institute  of  Management  CBI  Confederation  EEC  European  EETPU  Electrical  GMWU  General  ICI  Imperial  IDC  Industrial  ILP  Independent  IWC  Institute  JRC  Joint  LRC  Labour  NUM  National  SDF  Social  Democratic  Federation  SDP  Social  Democratic  Party  TGWU  Transport  TUC  Trades  C o n c i l i a t i o n and A r b i t r a t i o n Scientific,  of  British  Economic  Technical  Chemicals  Workers  and Plumbers  Union  Industries  Democracy Labour  Commission Party  f o r Workers'  Representation Representation  Control Committee Committee  Mineworkers  and General  Union  Workers  Community  and Municipal  of  and Managerial  Industry  and E l e c t r o n i c . Trades  Union  Service  Congress  Workers'  Union  Union  Staffs  -  1  -  CHAPTER Towards  The similar usuage the  term to  of  a Theory  'industrial  that the  in  the  term  'government'  seem t o  industry.or  directly.*  However,  not  a s t r i c t adherence  s o much  analagous  to  the  in  the  of  vague,  ambiguous  dictionary  of  industrial  Democracy  implies  a  sphere.  In  indicate  the  at  array  representative  collection  Industrial  democracy'  political  would  of  of  ONE  least of  to  to  of  often  participation  respect,  ability  literature  nature  relations  this  of  of  determine  defining  and  form  on  defines  workers  to  change  decisions  subject  finds  one  democracy  parliamentary confusing  accurate  management  the  industrial  an  in  a  democracy,  manner  as  generalizations.  industrial  democracy  a One  as:  "An e x p r e s s i o n w i t h a number o f m e a n i n g s a n d u s u a g e s a l l c o n c e r n e d w i t h t h e r o l e and s t a t u s o f w o r k e r s i n i n d u s t r i a l s o c i e t y and a l l i m p l y i n g , t o a g r e a t e r o r l e s s e r e x t e n t , t h e p a r t i c i p a t i o n o f t h o s e who w o r k i n industry in determining the conditions of t h e i r working lives."2 From t h i s  definition,  things  all  to  between of  different  capital  embracing of  and  It modes  of  or  interaction  definition  of  industrial  relations  tion.  Here management then  are,  by  application.  definition  to  the  d e c i s i o n s have  And,  to in  in  recognize industry  For  instance,  given one  practice of information,  issues with by  that  the  labour.  is  qualitative  it the  the  provides most  could  s u c h an  it The  to  Marsh  a l l -  facets  Marsh  and  the  takes  all  endorsement  the  communication  be  differences  spurious  apply  listens  to  representatives  'democratic'  Often  management.  democracy  between  so d o i n g ,  definition,  industrial  b e e n made  industrial  democracy  communicates  d i s c u s s the  that  refuses  labour.  Evans'  major  fails  appear  of  industrial  a n d may  would  those  industrial  their  men.  i t  in  and  consulta-  feedback  place only and  Evans  after  -  definition singling  therefore,  out  exactly  is  far  what  too  the  2  -  wide  term  in  its  a p p l i c a t i o n to  industrial  democracy  be o f  may  be  use  in  taken  to  4 mean. of  Other  writers  industrial  however,  do  get  nearer  to  the  central  characteristics  democracy.  " B r o a d l y , i n d u s t r i a l democracy i n v o l v e s workers (normally through t h e i r unions) c l a i m i n g r i g h t s to have a g r e a t e r say over m a t t e r s a f f e c t i n g t h e i r working l i v e s . This involves the running of the c o u n t r y ' s economic and i n d u s t r i a l a f f a i r s which i n t u r n i n v o l v e s t h o s e who a r e i n p o s i t i o n s o f a u t h o r i t y h a n d i n g o v e r some o f their powers to r e p r e s e n t a t i v e s of the w o r k e r s . Any a  move  in  transfer  Ownership  the of  d i r e c t i o n of  power  from  democratization  the  owners  and  no  longer  a qualification for  institutions  of  modern  parliamentary  industry  British  politics,  organization producing  is  the  must  unit,  be  might  would  reflect  is  all  sued, at  too nor  the  terms  of  profit  ceived  the  that  seem l i k e l y least  power  parallel  on  than  on  This  for the  the  equality degree  of  of of  democratic  to  meantime,  and  not  in  the  terms  of  organization  of  modern  control  constituent of  of  one  defined job  in  modern  industrial  production  are  consultation,  in  member  political  however, be  labour. the  industry  should  to  in  the  to  involves  participation  organization  British  democracy  capital  democratization  in  situation  of  the  ownership  in  In  of  each  such r e l a t i o n s be.  of  If  degree  analagous  "...industrial  sharing  democracy.  participation  the  existence  equality  necessarily  of  the  any  democracy industry.  not  being  can agree  It pur-  that  primarily  in  involvement  or  sharing."  One economy  based  posses.  clear  very  to  criteria  rather  individual then  ever  industry  representatives  is  British  of  of was  of  a  the  earliest writers  Rousseau. society  His  largely  to  blueprint composed  develop laid of  a  out  self  theory in  "The  of  a  fully  Social  sufficient  and  democratic  Contract"  con-  independent.  -  3  4 t  peasant and  proprieters.  modern  tions  of  democratic  a  nomic  economically  individual  equality.  For  dent  in  tizen  and  where mer  or  no  a  be the  be  power  as  and  J.S.  Mill  the  notion  trialized J.S. with  the  just  as  be  powerless  to  do  anything  majority.  The  groups to  make  they  must  be  proprietors  into  for  agreements  democracy that  of  a  out  be  equal rich  of  the  a modern  in  the  about  and  and  making  political  each all  the  where in  of  c i the  for-  "tacit political  economic  insistence of  buy  was .one  because  that  decisions.  participation context  to  of  between  his  indepen-  enough  equal  eco-  political  Here*  prevail;  (not  close  of  cooperation  link  equality in  and  assured on  func-  independent  decision-making  numerous  participation  such  individuals,  forges  political  Rousseau's  participatory  an  therefore,  and  direct  just  the  basic  approximately  himself."^  "particular wills" be  be  shall  sell  the  production  assemble  situation  should  Rousseau,  of  without  present,  their  to  industrialization  be  through  individuals  forced  ideal  were  means  citizen  to  independence,  of  "...no  would  Only  can only  as  reinforces  peasant  where  the  before  incorporated  citizen  equal.  could  individuals  developed  participation  other  writing  theory  poor  possible.  equality  of  so  able  associations"  each  situation  organized  might  to  was  Each  possession of  Rousseau  none  would  others,  his  absolutely)  approximation  another  institutions democracy.  the  terms  Rousseau  participatory  necessarily wealth,  Although  and  a  system  lifts  city-state in  an  indus-  society. Mill same  viewed  some  inevitability  participation  responsibility,  in  form as  local  participation  of he  industrial regarded  politics in  the  democracy  political  educates  management  the of  an  in  the  organization  democracy. individual industrial  For in  M i l l ,  social organization  -  fosters  and  develops  4  the  qualities  the  particular  -  an  individual  needs  for  responsible  office  o in  industry.  As  to  type  of  industrial  organization  Mill  envisages: "...not t h a t which can e x i s t between a c a p i t a l i s t as c h i e f , and work p e o p l e w i t h o u t a v o i c e i n t h e management, but the a s s o c i a t i o n o f t h e l a b o u r e r s t h e m s e l v e s on t e r m s o f e q u a l i t y , c o l l e c t i v e l y owning the c a p i t a l w i t h which they c a r r y on t h e i r o p e r a t i o n s , and w o r k i n g under managers e l e c t e d and removable by t h e m s e l v e s . " " Here  Mill  seems  acterized century  by  to  the  such  forms  independent  solely  by  the  levels  of  to  workers  scale,  individuals  point  of  producer  from  how  government  cooperative  workshop  " c o l l e c t i v e l y owning  each  activities  learn  a  of  to  or  other the  and,  where The  themselves  industry.  by  Moreover,  one  capital."  cooperation  members.  govern  and  worker  the  system;  were  which  In  central active this  the  point  small  self-sustaining  for  Mill  participation  "learning  char-  nineteenth  typically  s u c c e s s f u l , were  is  by  was  at  that  local  doing" 10  provides  an  educative  prerequisite  for  higher  levels  "We d o n o t l e a r n t o r e a d o r w r i t e , t o r e a d t o l d how t o do i t , b u t b y d o i n g i t ; s o i t i p o p u l a r government on a l i m i t e d s c a l e t h a t l e a r n how t o e x e r c i s e i t o n a l a r g e r scale In  order  making  to  at  the  would  have  those  of  just A  as  provide  to  national  level.  factory  with  bodies the  the  from  those  managers  exist  in  would more  However,  larger  direct  and  lower  are  maximum  of  participation  elected  industrial a more  by at  the the  —  decision-  local  enterprises  industry  subordination  whole  body  of  where  to  employees,  government  make-up  participation  direct  in  production .in  representative  intimate level  of  superiority  elected  self-management.  o r swim by b e i n g m e r e l y s o n l y by p r a c t i c i n g the people w i l l ever ."1!  relations  being  require  since  for  level,  representatives  might  than  opportunity  transformed  political  interests tory  be  equality,  difficulty  and  local  the  of  level.  regional of  worker  of  workers  at  fac-  participation  enables  workers  -  to  learn  workers  democracy who  decisions  as  achieve  accepted  well  as  positions by  the  5  -  providing  an  in  levels  higher  majority  on  the  integrative are  shop  function,  those  likely  have  more  floor.  In  to  short,  their  effective  12 participation If  J.S.  Mill  cooperatives of  the  next  of  producers  vocational whenever  aids  as  the  acceptance  considered  both  were  did  democracies  they  have  and  not.  neither  decisions.  industrial  inevitable  generation  of  desirable,  For  Sidney  inevitable  have  nor  hitherto  themselves  democracy  to  the  other  and  own  form  Beatrice  with and  of  political  desirable.  failed,  sought  in  philosophers  Webb,  Indeed,  almost  worker  democracies "...these  complete  organize  the  uniformity,  instruments  of  13 production." ceased fit  to  Moreover,  be  democracies  oriented,  often  where of  such  enterprises  producers  engaging  wage  managing  labour  from  were  their  successful own  outside  work  the  they  and  became  pro-  association.  "The p l a i n t r u t h i s t h a t d e m o c r a c i e s o f p r o d u c e r s c a n n o t be t r u s t e d w i t h t h e o w n e r s h i p o f t h e i n s t r u m e n t s o f p r o d u c t i o n i n t h e i r own vocations. Hence, the s e l f - g o v e r n i n g w o r k s h o p . . . n e c e s s a r i l y produc i n g f o r e x c h a n g e , i s p e r p e t u a l l y t e m p t e d t o make a p r o f i t on c o s t ; t h a t i s t o s a y , t o r e t a i n f o r i t s own m e m b e r s w h a t e v e r s u r p l u s v a l u e i s embodied i n the p r i c e f o r which i t can d i s p o s e of i t s p r o d u c t . " 1 4 Two  related  and  undesirable  producer  cooperatives.  ciations  is  --  whether  these  based  Secondly, operatives an  "organ  . . .  where  Insofar  upon  the  share  disproportionate  associations  favour  Webbs  viewed  as  being  too  revolt,"  to  or  the  the  of  conclusions  the  narrow be  of  as  emerge  the  democratic  capital  equal  --  the  of  of  a  obsolete,  use  in  Webbs'  component  policies  by and  "...completely  of  these  of  small  its  in  of  asso-  members  administration  embodied  labelling  critique  individual  democracy  democracy  and  a  the  contributed  development concept  from  of  capitalists.  worker  organization  democratized  coas  society 15  democracy  has  acquired  its  meaning  as  an  'organ  of  government.'"  -  The  i m p l i c a t i o n here  is  that  the  power  was  no  Does  of  this  mean  since  they  as  "organ  an  capital  citizenry  labour  and  has  longer  own  government,"  assumed  the  -  worker  capital  consider their of  6  democracy relevant,  are  epoch where  now  as  position  but  on  being  the  as  an was  equal one  "organ  where  arbitrator  of  It  Webbs  glorify  application tives  as  society,  to  electoral  industry.  They m e r e l y  archaic,  sectional  that  to  i s ,  democracy  the  and  voting  between  can  sympathize  for  exchange  herently sumer  tend  vested  toward  sovereignty.  talist it  and  with  or  might  socially put  them on i t  negation  of  democracy."  their  self-interested  the  this  view  ownership  acceptable  ownership  The of  not  these  Webbs the  democracies of  They  that of  are  so,  recognized  consumerand  labour.  irresponsible exercised  argue of  against  worker  interests  a workers  the  make  capitalist  that  the  is  capital  democracy  means  thus  of  able  its  cooperathe  to  these  means  small  of  production  thereby  wider  conclude:  "private"  producing would  in-  undermining  cooperatives  any  competitors.  con-  more  capi-  At  worst  production.  democracies of  assert  cooperative  of  business methods,  does  with  but  seem  o f t h e p e o p l e by t h e p e o p l e , ' but each d i f f e r e n t aspect of i t s l i f e , rly 'interested' oligarchy. To us be d e m o c r a c y , b u t t h e n e g a t i o n of  Webbs'  with  par  is  of  the  irresponsible.than their  Nor  virtue  view  consumer-citizenry.  conventional But  government  irresponsible of  " I t w o u l d n o t be ' g o v e r n m e n t government of the p e o p l e , i n by a s p e c i a l i z e d and p e c u l i a i t seems t h a t t h i s w o u l d not democracy."17 One  in  would  democracy a  against  "obsolete."  " D e m o c r a c y nowadays means n o t a c u r b on an a l i e n o r an government, b u t government by t h e e l e c t o r s t h e m s e l v e s , t h r o u g h t h o s e whom t h e y d e s i g n a t e f o r t h e purpose."16 The  revolt"  fact  terms?  intervention  of  in  of  that  producers  constitute  "the  democracies of  producers,  by  production,  capitalists.  would  Yet,  in  degenerate an  outline  into of  the  - 7 -  "proper  functions"  explicitly operation society  given of  of  to  the  the  tending  consigned  various  sector  with in  is  clear  in  society,  endorsement  capitalist enterprise.  the  Webbs' is  "completely  not  made  however, with  remains  is  the in  that  How  when  becomes  capital  and  a  own  sphere  the  of  producers  the  antithe-  labour  consumer-citizenry,  its  is  democratized  clear,  capitalist direction,  along  each  of  society  same  specific functions that  in  that  the  What  understanding  interests  maintenance  private  democracy.  plicit  the  " i s congruent  cooperative, sis  of  with  are the  im-  influence.  "Thus i t i s f o r the consumers, a c t i n g e i t h e r through c a p i t a l i s t e n t e r p r e n e u r s o r t h e i r own s a l a r i e d a g e n t s , t o d e c i d e w h a t s h a l l b e p r o duced. It i s f o r the d i r e c t o r s of i n d u s t r y , whether p r o f i t - m a k e r s or o f f i c i a l s , t o d e c i d e how i t s h a l l b e p r o d u c e d , t h o u g h i n t h i s d e c i s i o n they must t a k e i n t o a c c o u n t the o b j e c t i o n s of the w o r k e r s ' representat i v e s as t o t h e e f f e c t on t h e c o n d i t i o n s o f e m p l o y m e n t . And, in settlement of these c o n d i t i o n s , i t i s for the expert negotiators of t h e T r a d e U n i o n s , c o n t r o l l e d by t h e d e s i r e s o f t h e i r m e m b e r s , t o state the terms under which each grade w i l l s e l l i t s labour."18 From  the  above,  i t  is  clear  that  the  role  of  labour  in  industry  is  to  be  con-  19 fined The  to  trade  union  considerable  socialism main  of  activity  centred  the  Webbs'  political  developing  labour  movement  influence  Britain's  adversary  and  base  of  of  British  around  industrial  collective  bargaining.  philosophy helped  relations  to  well  on  the  underline  into  the  Fabian the  second  half  20 of  the  the  twentieth  thinking  portant  area  democracy Of is  their  into  in  of  century. the  where  British it  Given Labour  c o u l d be  importance  critique  of  "associations of  to  producer  the  lasting  Movement,  argued  a p e c u l i a r l y myopic  crucial  this  they  impact  there  the  remains  approached  the  Webbs one  have  final  issue of  had and  on im-  industrial  manner. Webbs'  democracies  c a p i t a l i s t s " which  rejection and  their  results  of  worker  self-management  inevitable  solely  from  the  transformation members  - 8 -  holding need  ownership  not  tion. ized  at  For by  whether  or  not  democracy  based  democracy" equally  longer  it  be  valid  or  by  the  of  industrial  cracy ment  policy-making  process  the  enterprise,  any  any  move at  the  the  which and  of  vested of  that  By  control  of  contrast  to  on  of  it  shareholders. in  their  one  need It  might  well  also  holds  when  left  unchallenged  Webbs'  the  political  owned  the  not  but  failed  the  democratization  system from  of  of  the  was  industrial present  owners  private  which  not,  per  the  Webbs  the  se,  the  private sole  workers,  the  that  to  industrial  in  manage.  nor  their  can  critique ownership  industrial  relations  is  shareholders  private  of  of  being  government  society,"  excluded  passive  "negation  right  private  forms  which  ownership  in  cooperatives  power  as  of  power  of  consider other  those  the  constitute  as  all  regardless  representatives,  merely  of  character-  involve  democratized  the  be  produc-  Moreover,  participation  on w o r k e r  Webbs to  by  of  necessarily  with  view  "completely  whether  is  democracy  not  undemocratic, agree  should  capital.  power  managerial  might  ownership  i t  participatory  But  production  participation,  centre  share  transfer  concentrating  criticisms  the  full a  of  one  the  industry  of  labour.  Indeed,  in  state.  their  outset  private  worker  a  qualification for  tenable in  portion  toward  hands  of  on  property  In  and  anti-democratic  no  from  management  own  meaning,  instruments  in  they  any  the  participation  provided  the  owning  hold  capital.  If  workers  industrial  to  relations  of  with  However,  democracy  possess,  ownership  production.  productive  into  present  of  the  expropriation  makes  synonymous  involves  shareholders  means  in  earlier,  capital  the  equal  engaged  democracy of  by  the  industrial  the  actively  argued  all  of  in  the  demo-  manage-  industry.  the  Webbs,  G.D.H.  Cole  envisaged  a  system  of  industrial  - 9 -  democracy  which  extension  of  distinguished  the  self-government ordination "...the  fit  to  the  Largely  them  for  Why  because  power  or  is  would  in  are  the  ownership  millions  occupations  system  democracy.  to  masses  everyday  industrial  political less?  in  franchise  between  people,  perennially in  great  the  of  and  the  work  measure  many  responsibility.  A  of  this  be  the  stunted  key  granting  by  Cole  the  their  of  sub-  argued  that  to  the  paradox  supreme  but  actually  their  servile  Despite  formal  place.  nominally  circumstances  control.  lives  do  not  system  of  industry  of power-  accustom  or  inevitably  21 reflects assert  itself  the  in  existence  ference  to  tial  electoral  of  the  subordination industrial  *  of  a  "completely  acquisition  in  servility."  of  government industry.  Thus,  it  democratized  universal  suffrage  is  continually  Full  political  is  pointless  society"  when  subverted democracy  the by  to  (Webbs)  by  democratic the  cannot  repoten-  relations exist  of  without  democracy.  " I t i s now c o m m o n l y r e c o g n i z e d t h a t p o l i t i c a l i n s t i t u t i o n s o u g h t t o r e s t on a f o u n d a t i o n o f e q u a l c i t i z e n s h i p f o r a l l : I have s t e a d i l y m a i n t a i n e d t h a t t h i s r e q u i r e m e n t h o l d s g o o d no l e s s f o r i n d u s t r i a l i n s t i t u t i o n s , and t h a t u n t i l t h i s p r i n c i p l e i s r e c o g n i z e d and a p p l i e d in p r a c t i c e our formally democratic p o l i t i c a l i n s t i t u t i o n s w i l l never work i n a r e a l l y s a t i s f a c t o r y d e m o c r a t i c manner."22  However, as  political  a democratic  consumers  society  have  and  community  producers,  could  were  variety  of  representation  through  separate  mentary  and  Syndicalist  therefore,  the  unacceptable  distinct  since  achieved  adequately  a  system  be  and  institutions.  both  of  involve  citizens'  represented.  interests  ideal  if  Since  functions,  For*Cole,  workers'  the  both  members  each  control  a monolithic  rights,  requires  existing of  of  parlia-  society  structure  of  are,  govern-  23 ment w h i c h balanced  precludes  community  functional  recognizes  representation.  the  rights  of  both  By  contrast,  consumers  and  a  more  producers  and  -  can  only  control  be of  secured their  if  the  State  respective  10  -  and  Trade  Unions  take  on  the  functions  of  arenas.  "The p r o p e r s p h e r e o f t h e i n d u s t r i a l o r g a n i z a t i o n i s t h e c o n t r o l of p r o d u c t i o n and o f t h e p r o d u c e r ' s s i d e o f e x c h a n g e . . . . I t h a s no c l a i m to decide ' p o l i t i c a l ' q u e s t i o n s : f o r i t s r i g h t r e s t s upon t h e fact t h a t i t s t a n d s f o r the p r o d u c e r , and t h a t the p r o d u c e r s ought to exerc i s e d i r e c t control over production. The p r o p e r sphere o f t h e S t a t e i n r e l a t i o n to i n d u s t r y i s the e x p r e s s i o n o f t h o s e common n e e d s o f c o n s u m e r s I t h a s no c l a i m t o decide producer's questions or to e x e r c i s e d i r e c t control over production: f o r i t s r i g h t r e s t s upon t h e f a c t t h a t i t s t a n d s f o r the consumers, and t h a t t h e consumers ought t o c o n t r o l the d i v i s i o n o f the national product "24 How  the  the  labour  trial  model  movement  democracy.  confront  be  to  to  develop  rather  less  Increasingly  pay  from  would  to  turn  economic  --  government  by  by and  State now  for  would  insist a  than  existing  his  a  and  administrative  a  would  indus-  of  "encroaching  collective contract of  production  The  financially  squeezed  strength  of  of  the  the  forcing which  capitalist,  compensation.  transformation  for  of  successfully  process  personnel.  --  activity  argument  unionism  through  on  nationalization  the  the  s p e c i f i e d amount  appointed  stimulate  of  trade  prerogatives  sum f o r  union  out  convincing  d e t a i l e d management  the  and  lump  fully  effective  unions  a  supervised  altogether  the  is  Eventually,  employer  would  was  established managerial  control." the  society  by  the  removed unions,  Finally, unions  the  would  bureaucratic  confront nature  25 of  nationalization For  our  into  purposes,  Guild  however,  the the  notion of separation means o f p r o d u c t i o n :  But  whereas  industrial  for  Cole  democracy  Socialism. the  value  of  Cole's  Guild  System  o f o w n e r s h i p and c o n t r o l . " The S t a t e the G u i l d s h o u l d c o n t r o l the work o f  ownership being  should  developed  be in  vested this  in  the  chapter  State,  holds that  lies  in  s h o u l d own 26 production." the  idea  of  participatory  -  democracy possible the  in  provided  right  fers  industry  the  to  Leaving  to  the  finds  in  the  inevitability  refutation festo  Only  of  Group*  or  its  rubric does  of  British  not  bear  participation  protagonists Britain  in  in  existence.  the  the  those  d e s i r a b i l i t y of  workers' of  -  an  the  capitalist society  is  implicit recognition productive  of  enterprise  con-  manage.  contemporary  of  the  ownership  early  one  us  that  control.  right  convince  within  11  In  who  recent  Labour  are  democracy  self-management  British  debate  not in  years,  which  Party  industrial so much  industry  Hugh  has  and  on  by  CI e g g  been the  democracy,  concerned as  they  has  are  to  offered  embraced  majority  about  by  of  a  the  'Mani-  cabinet  27 ministers the  in  central  successive Labour p r i n c i p l e s of  opposition. in  view  of  emerged today an  He the  after  modern  this  authoritarian World  recognize  unpopular  argues  the  War  One,  need  government,  governments.  for  According  democracy  is  the  c h a r a c t e r i s t i c of in  and  that  an  suggests  independent  thereby  providing  those  —  of as  socialist  most  a a  second  one  of  political Fabian  might  countries  socialists  opposition a  CI e g g ,  existence  democracy  developments  to  capable  which  in  the  of  replacing  principle of  West  modern  28 democracy cit to  in  and a  trade  limit  tain  --  the  their  sole union  of  independence,  arbitrary  autonomy.  industrial  system  representation.  power Thus,  organization.  industrial  of  The  need  and s i n c e  the  industrial  Clegg  forges  Indeed,  relations  a  main  opposition task  authority, link  " . . . i n  which  for  stable  can f a i r l y  be  also  trade  trade  between  all  of  is  unions  unions  political  must  is re-  democracy  democracies  c a l l e d the  impli-  there  is  industrial  29 parallel  of  tial  providing  for  political  democracy."  a democratic  But  bulwark  where against  an  opposition  role  authoritarianism  is in  essenpolitics,  --  -  it  becomes  irrelevant  in  12  -  industrial  democracy.  " T r a d e u n i o n s may n e g o t i a t e w i t h m a n a g e r s a n d s i g n a g r e e m e n t s with t h e m , h o l d d i s c u s s i o n s w i t h them and t r y t o f o s t e r good r e l a t i o n s w i t h them, but they must not take t h i s beyond the p o i n t where they can choose to a c t independently i f they wish t o , f o r at that point t h e y h a v e c e a s e d t o be a b l e t o l i m i t a n d c o n t r o l m a n a g e m e n t ; they have become a p a r t o f management." " . . . i f the essence of democracy i s o p p o s i t i o n , then management c a n n o t be o f p r i m a r y i m p o r t a n c e t o i n d u s t r i a l  changes i n democracy."  If  synonymous  organized  and  recognized  opposition  political  democracy,  its  industrial  parallel  zation  of  workers  trade  like  political  a  never  form  office the  an  in  democracy  a government.  but  is  also  industrial  unions, the  ergo  trade  Moreover,  which  is  politics  becomes  industrial  union  not  invalid.  is  in  democracy.  not  in  with  organi-  However,  is  un-  can  permanently  It  simple  the  industry  only  accountable. Clegg's  is  evident  "opposition"  management  s e l f - r e c r u i t i n g and  analogy  in  not  in  simply  equation  between  31 a  political  vides  opposition  democracy  with  and  an  a  political  authoritarian  democracy  is  fallacious,  and  pro-  face.  "The r e a l p a r l i a m e n t a r y a n a l o g y f o r C l e g g ' s argument i s n o t the B r i t i s h P a r l i a m e n t but the B i s m a r k i a n R e i c h s t a g , where i t mattered l i t t l e what the o p p o s i t i o n or m a j o r i t y c l a i m e d , s i n c e governments were r e s p o n s i b l e to t h e h e r e d i t a r y r u l e r (by company a n a l o g y , the h e r e d i t a r y shareholder.)"32 Democracy  is  more  leadership  to  an  Opposition  here  accurately electorate  serves  the  described which  has  purpose  of  in  terms  of  the  accountability  the  power  to  remove  providing  an  alternate  of  that.leadership. political  33 management  which  is  opposition  whose  role  ticizing,  but  which  ready is  can  and  able  confined never  to to  itself  replace  the  protesting,  party making  assume  power  is  not  Professor  Clegg  wants  in  power.  suggestions an  "An or  effective  c r i or  a  34 genuine  opposition  at  a l l . "  If  in  industry  a  real  -  parallel be  to  elected  the or  the by,  and  pages  more  prominent  figures  zation  to  good  and  thing,  sirable.  b e e n made develop  its  the  be e m p l o y e d  to  still  is be  from  model  of  c l a i m s as  this,  must  here  future  the  is  a  be  to  the  to  contemporary  s o c i a l i z e d s o c i e t y w h i c h may  the  struggle  for  capital  industrial  and  must  to  be  equally  be  de-  democracy'  implies  the  might  latter  in  Britain  and  and  century,  industrial  full  maturity  Nevertheless, by  parliament  practice, will  democracy form  in  --  by the  to  production.  British  industrial  society  democracy  or  workers'  a  result a  Having  democracy  Caoates  arguably  control  said  contempla-  and  not  property  stresses  of  reject  industrial  labour.  poli-  development  stand  abolished private  as  use of  of  have  or  democracy  as  the  a  usefully  development  into  organi-  held  Just  provided  the  is  industry.  parliament.  that  arguments  workplace  democracy  of  democracy  in  overnight  of  a sample  democracy  eighteenth  theory  from  to  must  system.  industrial  organization  parliament,  of  the  points  democracy  'industrial  of  (management)  criticizing their  political  term  the  arrival  remembered  specific  if  historical  both  c o n t r a d i c t i o n between  that  the  in  surrounding  industrial  in  central  political  that  blossom forth  in  the  government  employees  d i s c u s s i n g and  organization  democracy,  spurious i t  as  the  the  debate  compare  legislation in  democratic  industrial  In  origins  to  all  development  been  its  expected  progressive  the  organization  the  has  system,  by,  theme  insofar  gauge  democracy —  the  political  tical  cannot  in  to  -  outlined  application to  However,  reflects  have  self-management. has  a  removable  preceding  workers  ted  be  political  The  an a t t e m p t  of  national  13  the may  to  and point  be  taken  35 to  mean  two  industries  d i s t i n c t concepts. and  their  It  administration.  may Or,  mean i t  the  organization  c o u l d mean  of  socialized  a condition  where  -  "...militant  Trade  prerogatives  of  But  be m i s l e a d i n g  it  cause  would to  between  do  would of  be  two.  are not  the  " . . . i t  aggressive  talist  between In  this  type us  of  wrest  of  some,  term  there what  or  for  the  of  must would  two  society.  to  speak Unions  One  of  lie  a  be  may  to  managers."  point  but  agree  where  be-  property  consideration the  organization  with  Coates  to  powers  indicate  36  advance  control'  on management  the  conditions  under  'workers  self-management  of  democratic  capitalist society  of  most,  d i s p o s i t i o n of  continuity  event  Trade  workers  same  two,  reform  encroachment of  the  the  to  unilateral  unbroken  different  and  the  an  sensible for  framework,  able  use  democratic  seems  -  to  socialized. the  been  from  imply  And,  a qualitatively  that  have  management  so w o u l d  the  relations  Unions  14  indicate  in  a  attempts  capito  ad-  37 minister  a  The society a  s o c i a l i z e d economy  debate offers  system  of  surrounding two  "dual  main  democratically."  the  transition  positions.  power"  within  The  from  f i r s t  c a p i t a l i s t to  suggests  capitalist society  as  the a  socialist  development  necessary  of  part  of  38 the  transition  trade  unions  power. would  and  action  others  and  the  Barratt-Brown  strategy and  management  become  subject  organizational  factory  a  floor  various to  to  encroaching workers' over  strength  capitalist  of  workers'  aspects of  negotiation  structure  upwards  of  controls  organizational  from  would  an a l t e r n a t i v e from  By  e s t a b l i s h checks  increasingly wrest  relations As  socialism.  would  Militant  process, Thus,  to  is  the  built whole  and  the  economic organizations productive  union  alongside political  control,  veto. capitalist  economy.  suggests:  "Dual power i s not s o c i a l i s m i s t o be state system. The a l t e r n a t i v e to c a p  e n v i s a g e d as a s o r t o f c o n d o m i n i u m any more t h a n seen as a change i n power o v e r a g i v e n ( c a p i t a l i s t ) t a s k o f the w o r k i n g c l a s s i s to b e g i n to b u i l d an i t a l i s m e v e n i n s i d e t h e womb o f t h e o l d s y s t e m . " 3 9  -  Against tive of  which  the  dual  power  holds  that  socialism  c a p i t a l i s m and  the  working  vanguard "trade  for  union  their  step  must  since  be  control  workers,  trade  British  step.  stands  of  the and  This  own  Moreover,  would  the  this  only  unions  revolutionary  capable  state  of  the  insti-  uncompromising  battle  were  compromise themselves  overthrow  respect  c o n s c i o u s n e s s and  if  and  In  are  perspec-  violent  conscious  p r e c l u d e an  allow  use  a class  union  even  accommodation to  by  the  state.  efforts,  leaders  revolutionary,  secured via  led  trade  union  they  be  classic  capitalist  their  capitalists  Instead  the  can only  by  industry.  functions  expect  by  of  -  organized  consciousness."  normal  to  thesis  a b o l i t i o n of  p r e s s u r e s on  the  tic  class  party  tutional  the  15  i t  to  transcend  would  to  be  machinery  be  unrealis-  expropriated  to  suppress  the  40 trade mic  union  effects  challenge.  The  of  from  institutions and  a  on any  revitalized Hyman  notes  perspective web  opposition  of  on  reform  Labour that  how  foreign  strategy  writings  also  ignores  investment  emanating  the  and  from  debilitating  international  militant  I.w.C.  are  hegemony  of  the  ruling  p r o c e s s e s as w e l l  as  the  wider  tackle  i n s t i t u t i o n s and  this  trade  econo-  financial  unionism  Party.  the  to  dual  the  of  the  devoid  of  class  a in  political  theoretical its  complex  and  economic  41 environment, may is  have not  a  at  as  revolutionary  point. all  On  true  the  that  socialism  other  hand  socialist  so  generally does  claims  Coates  ideas which  are  who  to  offer.  insists  appropriate  He  that  to  " . . . i t  defeat 42  late Nor  c a p i t a l i s m were is  i t  response zation,  at to  all the  whose  all  formulated  certain that political  ideal  of  intact  revolutionary  economy  a socialist  of  fifty  is  a  hundred  vanguardism  contemporary  state  or  is  an  Britain.  c h a r a c t e r i z e d by  years  ago."  appropriate  Leninist  organi-  democratic  -  centralism,  would  rather  a convergence  than  in  reality of  16  -  produce  arbitrary  working  class  rule  and w i d e s p r e a d  interests  and  repression  organizations,  none  43 of  which  would  have  The  point  surely,  specific. by  the  As  the  such,  political  power is  the  and  to  that  way  suppress  the  industrial  toward  industrial  others.  democracy  industrial  development  must  democracy  of  each  be  historically  must  be  country,  determined  and  an  adapta44  tion  of  strategy  this  way  seen  as  the a  which  movement  bridge  in  to  self-management  is  not  ment  an  minimum  involvement  would  be  power  over  quite  of  their  and  management  in  encroachment  the  administration  is  nor  under an  to  criteria. 50:50 And  democracy  to  remain  i t  is  why  negotiation.  of  here  manageof  genuine as  i n -  a  participation  constitutes; explicitly  These  be  relations  independent  ratio  present  may  into  representation this  In  consideration  absorption  This  because  opportunity  serious  is  expected  forward  action.  c a p i t a l i s t productive  directors.  the  for  by  often  labour of  a  fine  control  one.  and  points  Workers'  industrial control  authority  and  c e r t a i n management  functions  such as  pensions,  democracy,  its  very  workers'  on management  compensation, by  of  industrial  what  on  of  veto labour  are  fully  chapters.  society  the  are  insist  a more  d i s t i n c t i o n between  capitalist  and  from  on management  well  proposals  later  control  unions  boards  as  possibilities  Moreover,  the_ I . W . C .  on  and  capitalist control  a c c e p t a b l e as  policy  developed  workers'  d e c i s i o n s based  democracy  limits  industry.  and  dustrial  the  transformation  accommodation  management  The  for  the in  since workers  oriented  fits  manpower nature,  planning  implies  the  and  usually  assuming  of  worker  in  reflects  for  health  redundancies.  widening  democracy  itself  and  safety,  Industrial involvement  -  in  these  areas  on  a wider  and  labour  more.  areas  force.  It  not  operate  within  democracy of  could  society,  tical  the  as  The  ating  of  capitalism.  develop  not  on  the  insists. which the  limits  would  as  type  other  the of  a  policy  An  side  it  on  ideal  of  a  however,  society  blueprint the  or  in  a  firm's by  form  of  possess of  but  labour  transformation  certain  it  theore-  control  might  as  full  and  industrial  worker  which  of  insists  necessity,  socialist  model,  existence  industry  formulation  must,  maximum d e g r e e  the  indicate  all  since  should,  embody  intended  which  It  capitalist  repercussions  parameters  within  principles  direct ideal  Coates  is  have  of in  an  characteristics  following  management  represent  only  democratization  in  which  -  democratization  involvement  decision-making does  The  17  a  or  operate.  set  of  oper-  industrial  demo-  45 cracy  in  Britain  industrial  Participation active which making  process  principle  in  delegate  and  is  the  quality  between tarian means  job  all is  the  Incomes This  control  participation. embraces  mines  and  within  the  employees  of  characterized organizational to  the  distributed  principle within  a  of  of  any by  to  political is  various  elected  equitable  Economic but  one  one's  distribution agreed  equality of  each  is  worker,  The  Here one  of  labour  the  effective This  work  equal  differential  consists  individual's  not  of  equal  labour,  deter-  bodies.  to  of  of  decision-  vote.  contribution for  from  function  representative  scheme here  a  derive  enterprise.  equality.  process  to  production  participate  particular  according  incomes  industrial  right  democratically  categories.  distribution of  Thus,  positions  are  relations.  output. intensity  payments the  access  egalito  the  production.  Although  control  derives  from  active  participation  in  the  enterprise,  -  ownership  of  captial  producers. element above as  producer  those  worker  reason  rights  demands to  to  of  between  invest.  dition  of  in  control  the  dents. money,  as  where  enterprise.  Dividends  are  to  such,  would  The  lender  borrower.  and  Finally,  processes planning and moral  act is  producing  through  justifiable  From t h i s  it  reflect  are  are  fully  as  Webb's  an  applies  over  to  the  scarcity capital  and  autonomous  use  capital, labour  in  direct  intervention  enterprises  would  operate  be in  to  require  seems  l i t t l e  democra-  in  se-  which  receive  of  con-  the  divi-  others' interest  be  and  that  from  on between  each  decision-making  National  indicative  economic planning)  intervention.  combat  direct  but  participate  their  interference.  government  If,  qualifying  would  and  (e.g.,  a  will  decentralized,  through  not  to  state  instruments  that  right  the  policy  producer.  p r i n c i p l e of  from  indirect  control  producer  not  the  this  shareholders.  however,  of  to  there  of  to  is  the  but  enterprises  a  price..for  from  component,  The  the  be  a  does  fear  ownership i t  as  capital,  equally  outside  government  rights  integral  great  direct  never  any  capitalists."  is  divorced enterprise  democracy  Shareholders,  the  the  it  productive  property nor  be  participation  without  but  follows  with  control  between  units  units  freely  suasion,  of  considered  relationship  Productive  the  control  the  be  in  of  over  of  no_ r i g h t s  today  shares  production  control  and  part,  industrial  participation,  borrowing.  only  of  most  carry  virtue  of  as  hold  "associations of  would  political  and  other.  means  the  not  chapter,  ownership  Just  may  by  development  into  Shareholders they  this  -  for  does  control  the  the  degenerating  paration  producers  democratic  tempt  would,  ownership  throughout  ownership  rather,  cies  Individual  of  argued  assets  18  The  monopolies.  competition  with  each  -  other  and w i t h i n These  points  principles the  main  the  for  areas  framework  are  by  However,  reform  conceivable within  ding  the  a model mic  parameters of  democratic  relations  correctly our  is  assume  outline  private  to a  i t  the  management  and  which  is  thus  then  exhaustive  be  does  rather,  indicate  which two  the  with  strips  separated  shareholders  of  the  such matters  as  their  and  meant  indicate of  scope  democratic  Coates  for  s o c i a l i z a t i o n of of  to  society  the  conferred  transcen-  the  and  placing,  posit  econo-  to  i n -  Therefore,  maintenance  capital. rights  upon  to  all  other.  invested  such  insists,  production.  investment  to  character  traditional  of  operating  necessarily  accepts  on  means  ownership  as  one  rights  the  types  and  requisite  a wide  the  from  reform  remunerative  from  are  without  different  of  of  they  since,  with  evolution  organization  of  that  industry  ends  very  limits  l i s t  e s s e n t i a l , and  existing  progressive  d e c i d e s on  an  market.  capitalist society,  confuse  shareholders  same t i m e ,  sketch  reform  recognizes  the  dustry  of  the  would  reforms. is  -  democracy.but  reform  the  of  no m e a n s  industrial where  19  But to  Control the  of at  control of  in-  workforce  dividends,  wages  etc. Doubtless as  well  reaching  as  being  open  enough.  For  capitalism being one for,  these  which  either.,too  may and  at  least  reforms  might  to  are  charges  instance, bear  achieved,  up  with to  of i t  too  to  criticism  being could  democratic  optimistic or agree  open  either be  myopic  Barratt-Brown  some  too  argued  reform in  of  in  their radical  that  l i m i t which w i l l  the  industry  outlook.  that  reform, only  general or  not  far-  parameters  are  here  Despite  such  "...can  still  become  construct  clear  to  seen  of as  objections be  pressed  people  46 the  process  of  pressing."  The  following  chapter  is  an  historical  account  in  - 20 -  of  the  extent  and  during  the  major  cracy,  and  the  constraints.  nature part  of  of  demands  this  limitations  i t  made  by  century.for faced,  often  the  some from  British form  of  Labour  Movement  industrial  demo^  self-imposed structural  -  C H A P T E R ONE  21  -  FOOTNOTES  1.  Eric Batstone,.Industrial 1977, p. 10.  Democracy.  European  2.  A . M a r s h a n d E. E v a n s , T h e D i c t i o n a r y Hutchinson, London, 1973.  3.  John E l l i o t , C o n f l i c t o r Cooperation? The Growth Democracy, Kogan P a g e , London, 1978, p. 125.  4.  Marsh and Evans a r e n o t alone i n u s i n g a l l - e m b r a c i n g d e f i n i t i o n s . See a l s o , f o r e x a m p l e , P. B l u m b e r g , I n d u s t r i a l Democracy, Constable,  of  Experience,  Industrial  of  H.M.S.O.,  Relations,  Industrial  London, 1968, p. 70-71; D.V. N i g h t i n g a l e , "The Concept and A p p l i c a t i o n o f Employee P a r t i c i p a t i o n i n C a n a d a , " The Labour G a z e t t e , V o l . 77, No. ' 4, 5.  p.  162.  Elliot,  Conflict  6.  G.  7.  Carole Pateman, 1970, p. 24.  Radice,  8.  Ibid.,  9.  J.S.  p.  o r Cooperation?  The I n d u s t r i a l  op. c i t . , p.  Democrats,  Participation  Allen  4.  and Unwin,  and Democratic  Theory,  London, C.U.P.,  1978,  p.  117.  London,  34.  Mill,  ibid.  10.  Pateman,  Participation,  11.  J.S.  12.  Pateman,  13.  Sydney and B e a t r i c e T. Topham, Workers'  14.  Ibid.,  p. 68.  15.  Ibid.,  p. 69.  16.  Ibid.,  p.  70.  17.  Ibid.,  p.  71.  18.  Webb a n d W e b b , p. 6 .  Mill,  p.  31.  ibid.  Participation,  p. 3 3 .  Webb, " D e m o c r a c i e s o f P r o d u c e r s , " i n K. C o a t e s C o n t r o l , Panther Book,s U . K . , 1970, p. 67.  "Industrial  Democracy,"  in Elliot,  Conflict  or  and  Cooperation?  -  19.  By w h i c h such  t h e Webbs  meant  as pay, contractual  22  trade  -  union  conditions  representation of  employment,  of workers' and h e a l t h  interests  and  safety.  " . . . a t r a d e u n i o n , a s we u n d e r s t a n d t h e t e r m , i s a c o n t i n u o u s associat i o n o f wage-earners f o r the purpose o f improving the c o n d i t i o n of t h e i r employment." S . & B . W e b b , i n R. H y m a n , T h e W o r k e r s ' U n i o n , Clarendon Press, Oxford, 1971. 20.  Elliot,  Conflict  21.  G.D.H.  22.  G . D . H . C o l e , The Case 1957, p. 11.  23.  R i c h a r d Hyman, " G . D . H . C o l e and I n d u s t r i a l Democracy: I n d u s t r i a l R e l a t i o n s J o u r n a l , V o l . 5 , No. 3 , 1974, p.  24.  G.D.H. Cole, Self-Government 1918, p. 106.  25.  Hyman,  26.  Cole,  27.  H. C l e g g , I n d u s t r i a l Democracy a n d N a t i o n a l i s m , B l a c k w e l l , 1951 a n d a l s o A New A p p r o a c h t o I n d u s t r i a l D e m o c r a c y , B l a c k w e l l , 1 9 6 0 .  28.  Clegg,  A New A p p r o a c h ,  29.  Ibid.,  p.  30.  Ibid.,  p.  31.  Paul Blumberg, I n d u s t r i a l Democracy, Constable, London, 1968, c h . 7 p r o v i d e s e x a m p l e s . o f t h e absence o f any meaningful democracy where there e x i s t e d an organized p o l i t i c a l o p p o s i t i o n , e . g . , Medieval England a n d up t o t h e s e c o n d R e f o r m A c t o f 1 8 6 7 . He a l s o i n d i c a t e s , a s w i t h contemporary M e x i c o , t h a t t h e absence o f an o f f i c i a l o p p o s i t i o n does not n e c e s s a r i l y preclude meaningful p o l i t i c a l democracy.  32.  Stuart  33.  Blumberg,  Industrial  34.  Ibid.,  145.  35.  Ken C o a t e s , "Democracy a n d W o r k e r s ' C o n t r o l , " i n P e r r y A n d e r s o n a n d Robin B l a c k b u r n ( e d s . ) , Towards S o c i a l i s m , C o r n e l l U n i v e r s i t y Press, N.Y., 1966.  Cole,  or Cooperation?,  i n Pateman,  "G.D.H.  For  Cole:  Industrial  in  p.  p.  Partnership,  Industry,  in  38.  G.  Bell  MacMillan,;:London,  A Review," 61.  and Sons,  London,  I.R.J.  109.  27.  131. 28.  Holland,  p.  p.  6.  Participation,  A Review,"  Self-Government,  p.  The S o c i a l i s t C h a l l e n g e , Democracy,  pp.  Quartet  Books,  1975,  p.  261.  144-145.  -  23  -  36.  Ibid.,  p.  291.  37.  Ibid.,  p.  293.  38.  The c o n c e p t o f d u a l power i s t h e l a t e s t p o s i t i o n on a theme w h i c h goes back t o 6 . D . H . C o l e and G u i l d S o c i a l i s m , d i s c u s s e d i n e a r l i e r pages o f t h i s c h a p t e r . Proponents o f dual power i n c l u d e M i c h a e l Barratt-Brown, From L a b o u r i s m t o S o c i a l i s m , c h s . I l l and V I I , . K e n Coates and Tony Topham, "Workers1 C o n t r o l and R e v o l u t i o n a r y Theory," S o c i a l i s t R e g i s t e r 1975, and much o f t h e I . W . C . l i t e r a t u r e i n r e c e n t years.  39.  M.  Barratt-Brown,  From  40.  R.  Hyman,  Cole:  41.  R. H y m a n , 1974.  42.  Ken  43.  Maurice 1975.  44.  Thus, the idea of workers' c o n t r o l i n t h i s context i s not a t h e o r e t i c a l i m p o r t but a n o t i o n i n d i g e n e o u s t o B r i t a i n ; and the r e s u l t o f developments going back a t l e a s t to G u i l d S o c i a l i s m , and a r g u a b l y to C h a r t i s m .  45.  Some o f t h e f o l l o w i n g c h a r a c t e r i s t i c s w e r e t a k e n , m o d i f i e d a n d r e f o r m u lated from: Radoslav S e l u c k y , Marxism S o c i a l i s m Freedom, M a c M i l l a n , 1979 and J a r o s l a v V a n e k , The P a r t i c i p a t o r y Economy, C o r n e l l U n i v e r s i t y Press, 1971.  46.  M.  "G.D.H.  "Workers'  Coates,  Barratt-Brown,  The  A  Control  Socialist  Brinton,  Labourism  to  Reveiw," and  1973,  Bolsheviks  and  to  in  I .R.J.,  Revolutionary  Register  Labourism  Socialism", Spokesman,  p.  1972,  p.  70.  p.-63. Theory,"  Socialist  Register,  160.  Workers  S o c i a l i s m , p.  Control,  227.  Black  Rose  Books,  - 24 -  CHAPTER The  Development  of  British  Prelude  Ever  since  collective as  the  the  bargaining  has  The  a s s i m i l a t i o n of legal  very  employment Party  satisfactory  former  also  being  sentative security  which by  partner  society.  From  therefore, mutually sphere  of  first  sixty  years  p l u r a l i s m was security,  case  in  1901  rapidly  became  and  to  legal  framework  for  the  movement.  'politics' by  unions  source  divorced  recognized  in  the  Party  and the  financial  but  trade  union  Labour  Party  saw  by  a l l i a n c e of linkage also  which  trade  between  mutually  it  exclusive,  a  in  and and each  stimulated their union  breaches in  the  would  trade  and  nasprovide  accep-  unionism,  parliamentary  the  and  trade  pursue the  the  constitutional  stability  could  unions  industry  involved which  century.  trade  other  other  protect  aid  further  and  from  and  Labour  this  legitimacy  Parliament  organizational  influence.  be  for  to  initial  advantageous  to  drive  tradition  develop  of  was  This  conditions,  of  opened  unions a  strikes  accepted  threatening  The  secure  been  working  contract. worked  has  other  Fabian  Vale  democracy,*  and  financial  Taff  employers  during  that  the  the  industrial  courts  could  the  on  and  wages  for  unions'  legislation, while  and  unions  into  celebarated  confined  Trade  upon  by  Bullock  determining  unions  Democracy:  law  status  meant  channels.  a  The  confiscation  Labour  tance  trade  Industrial  statement  trade  unchallenged  encroachments  to  the  cent  largely  existence.  funds of  stood  of  to  classic  between  p r i n c i p a l method  and  by  Webb's  TWO  repre-  financial  union  movement  its  reform  Labour  Party,  p o l i t i c s was sovereign  in  seen its  of  as own  -  This  liberal  without  challenge.  gaining  and  and  When was  who  real an  an  judged  in  which  This produced tionary  the  not  have  compulsory unskilled a  of  dilution  the  workers  with  recognition  with  management Whitley joint  on  the  from  It and  shop  as  became  official  granted  to  shop-floor  a  craft  stewards  shop  job  which  councils,  representative  their  onset  Webbs  of  of  schemes  caused  unorganized  World  by  and  official  was  the  which  it  also  o f f i -  the  war  produced  planning  and  spokesmen  for  union.  After  negotiate  bargaining  recommended  revolu-  where  war  to  "a  One,  "dilution"  of  their  War  of  But  committees  employers  there  introduction  shop-floor from  1910,  the  the  strikes,  facto  union  packets.  and  transformation  of  f i l e pay  called  standing  Industry-wide  of  and  on  problems  also  rank  without  stewards  of  part  production,  recognition  Committee  prominent  part.  categories.  de  bar-  a  in  emerge  collective  organized  the  the  This  ban  the  issues.  1917,  both  what  implementation  in  They  by  prominent  of  not  especially after  political  levels  played  results  importantly  and  entailed the  a  did  both  ordinary  its  action  world."  all  on  and  system  social  in  by  1905  more  union  without  was  numbers  bargaining  relations  utilized  of  or  their  and  rejected  Syndicalists  industrial  trade  increased.  war,  industry  of  won.  was  network  Syndicalism  did  crisis,  labour  been  labour  powerful  the  the of  collective bargaining  s y n d i c a l i s t s played  arbitration,  job  by  the  to  industrial  cooperation  could  they  resort  transformation  representation  beyond  as  industrial  in  free  -  government.  collective  f e l l ,  increasing  workers  cial  influence  wages  of  Revolutionary  parliamentary  exerted  members,  consensus  25  that  was  within  unions,  be  the  directly promoted each  set  up  4 at  various  levels.  as  well  securing  as  World  War  collective  One  confirmed  bargaining  as  the  legitimacy  'established  of  trade  practice.'  unions But  - 26 -  more  than  this,  velopment shop  of  position The  ment  rank  and  inter-war  like  War the  ended. and  with  period,  between  managerial  place  workplace  power 1945,  this  power  and  has  British  world. has  Yet  been  The  the  despite  largely  systematic  the  bases w i t h  the  shop  was  their at  this  unified  main  debates  of  to  prolonged to  and  its not  the  de-  committees  from  a  of  semi-auto-  into  enhanced  over  relationship movement  considerably,  together  between one  power,  of  the  the  the  T.U.C.  control  scale  of  pre-  concerned  manning. work-  expectations.  industry-level and  the  powerful  trade  groups,  developing  and  with  most  British  managerial  war  a  arrangements  level,  the  on  and  Second un-  developed  also  in  But,  work  was  manage-  the  of  redundancy  level,  subsided  power  but  so  worker  d e c l i n e when  the  money,  grew  democratic  prominence. a  did  arbitrary  unemployment,  earlier  discipline,  floor  in  it  shop-floor  opposing  high  go  the  but  organization  management  only  challenge  of  at  function  institutional  shop  union  important  shop-floor  stewards  multi-level  reluctant  and  as  of  own  national trade  not  such  where  prerogatives  business  employment  stewards  number  base  the  stewardsdid  full  prerogatives  negotiations made  of  stimulated  collective bargaining,  least  bargaining  Bargaining  mid-1950's,  through  shop  effort  organization,  educative  influence  largely  continuance  unknown.  From t h e  From  the  period,  bargaining  viously  Although  in  valuable  war  unions.  not  participation  the  management  consolidated  negotiation,  in  union  national  a  earlier  labour  confront  provided  returned  The  to  their  of  of  shop-floor  period  file  decisions  World  viz.'  levels  organization. the  able  inter-war  various  where  co-opting  'official'  stewardswere  nomous  at  the  union  in  State, the  movement  industry  in  any  manner. within  the  British  labour  movement  on  industrial  democracy  -  go  back  to  it  was  of  State  the  later  1930's  to  control  and  view  of to  basic f i l l  conceived  negotiate  the  nationalize.  representatives Guild  with  on  its  -  issue of The  how  arguments  industries  the  of  27  and  boards.  As  was  with  the  should  polarized  Guild  industrial-union  behalf  Labour  run  the  between  the  S o c i a l i s t demands  outlined  guilds  in  which  Government,  who  Chapter  would would  industries Webbs' for  workers'  One,  run  the  the  finance  view  industry it  and  re-  5 present had  the  very  l i t t l e  Report  on  was  the  of  consumer  the  best  as  directly  be  committed  that  its  joint  independence."  trade  unions  tions  of  must  responsible;  to  unionist and  in to  the the  late board  understanding  give  up  their  of  union  not  work  complete  where  posts,  seem by  any  means  members  of  the  of  the  7  to  a  policy as  of  of  condition  was  would  industry  to  have,  board  the and  were  those  of  have  the  a  funccould  minister  where  which  nominal  to  unionists  waived  that  ultimate  appointing  trade  com-  body  nationalization  of  would  their  governing  must  who  traditional  a contribution  These  it  control  perform  community, form  view.  worker  workers  The  executive  should maintain  rejecting  Interim  that  controlling  unions  members  1944  certain  a nationalized  intended  this  Party  of  instituted  but  A  Labour  for  eventually  policy.  and  interests  employees'  ideas  T.U.C.  interests;  he was  Party  independence  minister.  1940's  These  people  representing  the  the  the  reasons  workers'  through  Labour  decisions...trade  maintain  Parliament,  by  them,  simultaneously,  control  emerge  of  interests.  on  does  the  Their  representing  represent,  policy  of  representative  plete  not  influence  " . . . i t  interests  to  public  Reconstruction  opinion  in  other  practical  Post-War  be  and  was trade  knowledge had  the  also  trade  o union  official  sat  major  round  nationalization  of  on  a  board  outside of  his  Coal,  own  London  industry. Transport,  After  the  Railways  first and  the  to  -  Post  Office,  affirmed  its position  authority, By turn. the  early  scope of  clear  to  these  were - -  Donovan T.U.C. an  i n part  that  policy  Commission showed of  which  on Trade  from  does  had done  a complete  economic  nationalization  of  to  have  a spate  control  over  Unions  h a d no c o n t r o l . " ^  and Employers  for greater  In  wages  the  and  when  produc-  evidence  Associations,  participation  in  increasingly  on e a r l i e r d e c i s i o n s on i n v e s t m e n t the unions  of  on  revealed  became  9  about-  conditions  o f mergers  industry It  of  acceptable."  d e c i s i o n s by management  consequences of  re-  diffusion  i n management  position  unilateral  conference,  not imply  collective bargaining.  the argument  industrial  1949 a n n u a l  reflected worsening  i t was n o t enough  dependent  decisions over  extention  the T.U.C.  The subsequent  the T.U.C.  first  however,  traditional  its  representation  and c l o s u r e s which were  1960's.  at  "Consultation  workers'  suffered  -  Council,  1944:  in T.U.C.  Unions  redundancies  tion  of  the mid 1960's  The s h i f t  limited  General  nor i s d i r e c t  period.  the  the T.U.C.  28  1966,  to  the  the  i n management  as  democracy.  "The e x t e n t o f t h i s c o n t r i b u t i o n h a s h i t h e r t o b e e n l i m i t e d by t h e nature o f t h e master and s e r v a n t r e l a t i o n s h i p . Workpeople through t h e i r t r a d e u n i o n s c a n p l a y no r e s p o n s i b l e r o l e i n s u c h c i r c u m s t a n c e s as t h e r e i s n o t h i n g t h a t t h e y c a n be r e s p o n s i b l e f o r . If a l l dec i s i o n s a f f e c t i n g t h e r u n n i n g o f a n e n t e r p r i s e a r e made u n i l a t e r a l l y by t h e e m p l o y e r t h e r e c a n be no b a s i s f o r m u t u a l respect."H In  1966 t h e T . U . C .  bution to  trade  provide  called  for  unions  objective  was t o  c o u l d make  a statutory  right  l e g i s l a t i o n that  to  to  persuade  management.  introduce  would  companies  "allow  It  worker  of  the positive  did not ask f o r  directors.  companies  t o make  contri-  legislation  Instead, provision  i t for  12 trade by  union  representatives  the commission on grounds  Reconstruction,  and which  on the board identical  were  to  of  directors."  to those  be r e p e a t e d  This  was  i n t h e 1944 Report  again  a decade  after  rejected  on Post  War  Donovan  in  -  the  Bullock  director  debate.  would  would  inevitably  to workers  had t o  -  i n decision-making would  i n c r e a s i n g l y become  worker-directors unfavourable  Efficiency  29  alienated  from  experience  be t a k e n  suffer,  the workers,  "intolerable  because  they  the  and  worker-  these  s t r a i n when  were  decisions  i n the interests  of  13 the  company  the  same y e a r  throughout  as a w h o l e . " joined  A  Labour  the chorus  industry  but only  Party  report  acknowledging  as a d i s t a n t  on  Industrial  the concept  Democracy  of worker  in  directors  possibility.  "The q u e s t i o n o f w o r k e r r e p r e s e n t a t i v e s ' o n t h e b o a r d ' i n t h e p r i v a t e s e c t o r g i v e s r i s e t o a number o f d i f f i c u l t p r o b l e m s a n d we c a n n o t s e e i t a s a s u i t a b l e s t a r t i n g p o i n t f o r a n e x t e n s i o n o f i n d u s t r i a l demo^ cracy. We t h i n k i t l i k e l y t o a r i s e i n t h e m a i n a f t e r t h e f u r t h e r e x t e n s i o n o f the scope o f c o l l e c t i v e b a r g a i n i n g and o f s t a t u t o r y protect i o n . " 1 4 The until 1970  issue of  the early and 1974,  labour  1970's.  democracy  The y e a r s  saw a s h i f t  unprecedented of  industrial  to  the  since the 19301s.  was n o t s o much  l a y dormant  in opposition left  for  i n language  David  Coates  the r h e t o r i c  of  i n the labour the Labour  Party,  and programme  suggests  opposition  this  movement between  on a  scale  revitalization  as the emergence  of  new  15 leaders  i n both  terized  by a s e r i e s  The  result  of  the party  this  of  Policy  a  arrangements  set of  the  Labour  a  future  a  voluntary  protection lation,  which  the social  Government,  incomes for trade  notably  - -  and the Cost  Party,  Labour  agreements  T.U.C.  Economic  and i n t h e T . U . C .  policy. unions  t h e 1971  between  Labour of  came t o  and would In  Liason  held hinge  return,  Industrial  early  as the  the  on t r a d e  of  Relations  i n 1973  sought  Conservative Act.  Of  and  recovery  cooperation further  to  For in and  statutory  anti-union  interest  on  embodying  Contract."  national union  T.U.C.  was a -"Statement  "Social  key to  the T.U.C.  and the repeal  l e a d e r s h i p and the  Committee  published  be known  contract  new r a d i c a l i s m was c h a r a c -  the party  Party  Living,"  This  the  legis-  -  development promised  of  the debate  "the extension  30  -  on i n d u s t r i a l  of  industrial  democracy.  democracy,  Point  8 of  by b r i n g i n g  the  statement  investment  and  1 fi closure  policy  gaining  remained  though over the  the scope o f  at  this  i t s field of  those party  Benn  into  areas were  time  the o f f i c i a l  negotiation  which  less  collective bargaining."  was e x p a n d e d  had weakened  moderate.  credo  At  to  the unions  the  1973  Collective  of worker include  a decade  annual  party  bar-  participation  a measure  of  earlier.  The  conference,  influences left  of  Tony  announced: "We r e j e c t a s a p a r t y a n d a m o v e m e n t t h e i d e a t h a t o n e w o r k e r o n t h e b o a r d i s i n d u s t r i a l d e m o c r a c y ; we r e j e c t c o - o w n e r s h i p ; we r e j e c t t h e phoney works c o u n c i l s not r o o t e d i n t h e s t r e n g t h and s t r u c t u r e and t r a d i t i o n o f t h e Trade Union Movement. We w i l l n o t a c c e p t t h e e x i s t i n g pattern o f n a t i o n a l i z a t i o n as the form f o r the f u t u r e . " ^ Others  debate  on i n d u s t r i a l  ginning It  of  1973,  was f e l t  digenous swamped  that  system with  threatening E.E.C.'s law  on the r i g h t  democracy  not  based  on t r a d e  and  steel  where  in  a two-tier  Britain,  democracy  and w i t h  contract.  boards  the s p l i t  board  held  the T.G.W.U.  only  was 5 0 - 5 0 )  structure. (transport  moved  quickly  the next  i n 1973  Jack  them  of  workers),  would  by t h e T . U . C ,  leader  where  the seats  on a r e l a t i v e l y Jones,  Government  urgent  The E . E . C .  model  of  Community.  i t s own i n -  on the h a r m o n i z a t i o n  t h e German  renewed  the be-  Economic  was made m o r e  directors.  one-third  At  t o map o u t  Labour to  i n the  reasons.  the European  opposition  and worker  interested  different  The s i t u a t i o n  closely followed  unions,  equally  entered  Party  of M i n i s t e r s meeting  for two-tier  industrial  the Labour  policies  were  but f o r very  had f o r m a l l y  industrial  the social  Council  plans  unless  alien  the party  democracy,  Britain  of  of  weak  the  company  position  worker (except  advocate  on  directors, in  supervisory  the largest  and passionate  thus  by  of  be  coal board  union of  in  workers  -  in  t o p management  positions,  tion  on i n d u s t r i a l  than  anything  ment  on i n d u s t r i a l  new c o m p a n i e s  of  information  enterprises ing  over  structure  seized  democracy  from  two hundred with  more  of  result  This  sector.  Boards,  present  and trade  proposed  industries  companies  policy  would  state-  legislation  have  affect  those  a two-tier  responsible for determining  for  release  Act would  and l a t e r ,  posi-  based  and t h e  T h e New C o m p a n i e s workers,  a T.U.C. union  was a T . U . C .  report  two t h o u s a n d "...such  to  radical  the nationalized  than  workers,  Supervisory  The  i n 1974.  the private  employing  the opportunity  Europe.  democracy  a c t , reform  -  w h i c h was more  in continental  a  31  company  employboard objec-  18 fives, Board  which  would  should  should  appoint  be e l e c t e d  become  representation  operative  Management  through "...only  of workers  could  Boards."  One h a l f  trade  union  machinery.  when  there  i s trade  only  be through  bona  of  Such  union fide  the  Supervisory  provisions  recognition, trade  unions  and choosing  19 to  exercise  this  representation demand  right."  The r e p o r t  on t h e p o l i c y - m a k i n g  for disclosure of  information  i n s i s t e d on 50% d i r e c t  boards  of  embraced  nationalized such areas  trade  union  industries.  as revenues  The  and c o s t s , 20  planning  and o p e r a t i o n s ,  It  i s noteworthy  as  undermining  tion  that  production  the T.U.C.  traditional  i n the highest  and m a r k e t i n g ,  d i d n o t s e e i t s demand  negotiating  echelons  and manpower  methods.  o f management  would  deployment.  f o r worker  On t h e c o n t r a r y , complement  directors participa-  collective  bar-  gaining. "Such forms o f c o n t r o l w o u l d i n most c a s e s be an a d j u n c t t o t h e c o l l e c tive bargaining process: i n a l i m i t e d number o f i m p o r t a n t c a s e s s u c h i n v o l v e m e n t c o u l d be v i t a l . " 2 1 Therefore: "Unions s h o u l d c o n t i n u e t o p r e s s f o r j o i n t c o n t r o l over non-wage areas and work o r g a n i z a t i o n s through t h e e x t e n s i o n o f c o l l e c t i v e b a r g a i n i n g ; as p a r t o f t h e approach to e x t e n d i n g i n d u s t r i a l democracy, t h i s i s i n d i s p e n s a b l e . "22  -  However,  this  bargaining union  d i d not appease  against  any form  independence.  (Municipal  many  -  right-wing  unions  who f a v o u r e d  o f p a r t i c i p a t i o n which might  The most  Workers),  32  important  the A.U.E.W.  of  these  (Engineers),  collective  compromise  unions  were:  trade  the G.M.W.U.  and the E . E . T . U .  —  P.T..U. 23  (Electricians During between  period,  the Conservative  a desire  to find  itself  (since  union  rights)  servative time  i t s first  Government  cracy  i n the early  anything  a  efficiency  democracy  among  would  were  surrounding  since  spent  the First  Market  the E.E.C. with  of  World  union trade  War.  miners'  o f Labour  demothan  although  to  construct  Elliot  that  had been  Party  by  strike  more  And,  with  what  Con-  the problem  i n the urgency  had turned  torn  The  t h e argument  o n e may a g r e e  group  trade  the issue of industrial  t h e pace  a t home,  was  dismantling  of a national  overrated  a select  not boost  to terms  i n t h e wake  o f t h e Common  o f debate  that  reservations.  (1970-1974)  to f i t i n with  accelerated  decades  Government  t o come  o f B r u s s e l s was v a s t l y  membership  an i s s u e  office  seventies  on i n d u s t r i a l  "Britain's  have  failed  The developments  i n t h e combined  policy  only  from  considerable  in office  would  had s t i l l  i t was thrown  i n 1974.  a policy  two y e a r s  and one which  early  the  who e x p r e s s e d  this  power  the  and Plumbers)  really  activists  into  24 a  positive  T.U.C.  policy." 25  In that  1974 t h e r e  year  t h e new L a b o u r  promise  to  radical  extension  However, ment  were  "...introduce  after  policy  of  two g e n e r a l government  promised  in Britain. concrete  new l e g i s l a t i o n t o h e l p  industrial  the October  developed  elections  away  democracy  election, from  i n both  a gradual  intervention  In October  action  with  a  of  manifesto  forward  (our) plans  for a  public  and p r i v a t e  sectors."  shift  i n emphasis  and control  towards  of  govern-  economic  -  growth trial  by e x h o r t i o n  imperatives  gave  contract  was p r o v i n g  to  demands of  i n the face  living  contract  crisis  l a y beyond  gether. quence  of  rising  and c o n t r a c t i n g  social  ties  and r e a s s u r a n c e  democracy  social  intensified  the private senior  inflation  the control  management  with  growth.  trade  turned  defined  to  protest.  Government  i t s problems  and that  indus-  The  limiting  declining  the  the  and T . U . C .  wage  standards  surrounding  p e s s i m i s m when  but as a s e t of  recession —  Steadily,  unions  The o p t i m i s m  the Labour  crisis,  sector.  and unemployment,  years  of  Government  by world  of  be o n e - s i d e d  economic  an i n t e r n a t i o n a l  -  way t o  i n the opposition  "The Labour of  33  economic  acting  not as a n a t i o n a l  national  difference  economic of  to-  consedifficul-  definition  is  27 crucial." after  1974  dilution ment its  of  to  from  entered  held  private  itself  Pact'  democracy. unions  t h e same  who w e r e  impatient  for  members  moved  the most  suitable  Party  against action  system  Radice, of  of  of  to  under  formulate  was r e a c h e d  establishing  pressure  satisfaci n 1975  a Royal  democracy  in  restraint, a  late  Govern-  This  legislation  wage  M.P.'s  the  in Parliament.  in  the  left-wing  in office,  voluntary  Govern-  legislation  suffering  industrial  the  the Labour  majority  any r a d i c a l  A compromise  by G i l e s  a group  the T . U . C ,  government  democracy.  investigate  precluded  time,  democracy  to continue  Government  and e x p l a i n s  the slim  of  the Liberal  protesting  on i n d u s t r i a l B i l l ,  Also,  In o r d e r  with  events,  industrial  by t h e f l i g h t  Party.  why t h e L a b o u r  From t h e m i d - 1 9 7 0 ' s ,  from  effectively  At  reason  over  enterprise.  an agreement  'Lib-Lab  control  programme.  private  Nationalist  increasingly  Bill  i s the main  l i t t l e  radical  placate  into  i t s member  became tory  argues,  e l e c t i o n was e r a s e d  the Scottish  industrial  to  t h e 1973  1974  so-called  a  increasingly  efforts  ment  Coates  increasingly distanced  October to  This,  for  by  Commission British  -  industry.'"0 With  This  a  long  was  the  history  of  background  to  the  Bullock  collective bargaining  as  the  prime  relations  between  found  presented  with  higher trade  management union  several level  future tion  trade  for of  the  was  agement  not of  to  than  would  necessary  racteristics commitment tive The  of  reaction Labour  commitment social  on  a  by  to  of  union  of  support  bargaining  cast  doubt  managerial Labour  compliance.  implement at  of  i t  real  the  the  1974  democracy did  to  more  neither rested  on  The  campaign in  One,  as  from  the  thorough-going  for  on  an  reform  of  higher  trade  union as  the  T.U.C.  in  any  the  unity  The  would  private which  whose  cha-  at  in  major  least  against  need  the  conserva-  parliament.  outstanding the  of  man-  legislation  sympathetic,  of  situa-  successful  support  defence  nor  nominal  negotiations  opposition  strong more  on  in  reluctance  democracy,  Chapter  and  movement  participation  far-reaching  government  media  was  of  union  Government whose  The  mechanism  representation.  industrial  end  sympathetic  industry,  than  Jones'  collective  Commission.  i n s i g n i f i c a n c e of  Jack  strength  extensive  trade  industries.  the  and  the  direct  the  i n c r e a s i n g l y depended  industrial  system.  the  vacillating  outlined  Government to  a  strong,  from  contract  relations  achieve  trade  were  endorse  representation,  economy  industry be  to  labour,  confirmed  nationalized  maintenance  helped  the  the  and  p o s s i b i l i t y of  which  reflected  worker  struggle  scale in  capital  the  unions  participation  form  a  directors  major  movement main  on  -  unfavourable  underpinning itself  34  and debt  industrial  its to  the  -  C H A P T E R TWO  FOOTNOTES  1.  S.  2.  Webb & W e b b , c i t e d i n J o e E n g l a n d a n d B r i a n W e e k e s , " T r a d e U n i o n s a n d the S t a t e : A Review o f t h e C r i s i s , " I n d u s t r i a l R e l a t i o n s J o u r n a l , V o l . 12, No. 1, 1981, p. 14.  3.  England  4.  & B.  35 -  Webb,  Industrial  and Weekes,  Democracy.  ibid.  Ibid.  5.  John E l l i o t , C o n f l i c t o r ' Cooperation? cracy. Kogan Page 1 9 7 9 , p . 2 0 9 .  6.  Giles Radice, World. Allen  7.  Robert (eds.)  8.  J .  9.  Ernie W h i t e , "The Trade Unions Worker's C o n t r o l , p. 317.  The I n d u s t r i a l Democrats. Trade and Unwin 1 9 7 8 , p p . 1 1 8 - 1 1 9 .  D a h l , "The Labour Workers' Control.  Elliot,  The Growth  Conflict  or  10.  G.  Radice,  Industrial  11.  J.  Elliot,  Conflict  or  Unions  Industrial  i n an  P a r t y i n Power ( 1 9 7 4 ) " i n Coates Panther Books, 1970, p. 303. Cooperation?  Democrats,  Take  p.  Cooperation?  p.  Demo-  Uncertain  a n d Topham  210.  Sides"  i n Coates  a n d Topham  of the Labour  Government  (eds.)  119. p. 206.  12.  Ibid.  13.  Ibid.,  p.  14.  Ibid.,  p. 208.  15.  David C o a t e s , Labour i n Power? A Study 1 9 7 4 - 1 9 7 9 , Longman 1 9 8 0 , C h a p t e r 1.  16.  Ibid.,  p.  17.  Ibid.,  pp.  18.  Trade  19.  Ibid.  20.  of  207.  4.  Union  133-134. Congress,  Industrial  Democracy,  T . U . C ,  1974,  p. 43.  :  F o r a d i s c u s s i o n o n t h e 1974 demand f o r d i s c l o s u r e o f i n f o r m a t i o n S. H o l l a n d , The S o c i a l 1 s t C h a l l e n g e , Q u a r t e t 1 9 7 5 , p . 2 9 6 .  see  -  Industrial  -  21.  T . U . C ,  22.  Ibid.,  23.  Radice,  Industrial  24.  Elliot,  Conflict  25.  The e l e c t i o n o f F e b r u a r y was a s t a l e m a t e ( L a b o u r 301 s e a t s ) b u t Harold W i l s o n f o r m e d a g o v e r n m e n t a n d made t h e S o c i a l C o n t r a c t w i t h trade unions. In a s e c o n d c l o s e e l e c t i o n i n O c t o b e r 1974 L a b o u r i n c r e a s e d i t s r e p r e s e n t a t i o n t o 319 s e a t s .  26.  1974, "Labour p. 134.  27.  Coates,  Labour  28.  Elliot,  Conflict  par.  66,  Democracy,  36  p.  86,  p.  34.  27. Democrats,  or  Party  in  par.  120.  Cooperation?  Manifesto."  Power? or  p.  p.  p.  p.  10.  215.  Cited  in  17.  Cooperation?  pp.  216-216.  Coates,  Labour  in  Power?  -  37  CHAPTER The  In with  t h e compromise  t h e dogged  terms  Rt.  the  House  need  to  Hon. Peter  Shore,  o f Commons  for a radical  panies his  by which  by means  take  gress  "into  report  Bullock  the Bullock Jones,  the committee  M.P. formally  on 5 August  extension  commitment  account  Report  o f Jack  of  on i n d u s t r i a l  would  to organized  democracy  i t s  informed  parliament  i n the control  as well  and  by i n s t r u c t i n g  the proposals  favourable  Commission  of directors..."  labour  T . U . C ,  investigation.  the Bullock  democracy  on boards  the  to salvaged  conduct  M r . Shore  industrial  in particular,  Commission,  managed  launched  1975.'''  of representation  government's  THREE  produced  determination  of reference  The  that  -  of "the  of  com-  reaffirmed  the commission  o f the Trades  experiences  in  Union  i n Britain,  Con-  the  E . E . C ,  2 and  other  Bullock  countries."  Committee  After statistical Britain, Three. bution  and  breakdown  the report  unfolds  chapter,  of society  i n January  ownership  industrial  "Industrial relations  However,  since  the  1977. one concerned with union  in  Democracy"  system  increased  a  membership  democracy  structural  1945 have  of deliberation,  and trade  on i n d u s t r i a l  t o t h e Webbs'  evolving  and a h a l f  and a f o l l o w i n g  the debate  i n decision-making.  hands.  a year  i t s findings  of collective bargaining.  i n the nature  fewer  almost  o f employment,  i s made  to Britain's  participation in  published  an introductory  Reference  concept  After  in  Chapter  and i t s c o n t r i -  by e l a b o r a t i n g  changes  i n the  t h e need  for  the economy  greater  Industrial  power  i s increasingly  being  In 1 9 5 3 , the top one hundred  firms  accounted  for  share  had r i s e n  to forty  held  twenty-five 3  percent  of the total  net output;  by 1971  this  percent.  -  And to  since  shareholders  tend  appoint  directors,  boards  control  over  their  recruiting. strength, in  At  with  changes  the  same  active  involvement  and  future  of  cause but  such  in  combating  industrial  unions  on  Contract the  joint  the  shop  by  involvement  because  the  regulation  Safety  cific  at  areas  the  Work  to  their  stagnation  Act  already  had  has  1970's  the  left  Also,  the  local  level  shop-floor  of  the  agreed, of  the  a  company  of  of  collective  change,  role  changes  trade  the  Social  the  Act  growth And,  1975,  bargaining  into  was  "the  for  legislative  industrial  development level,  of  democracy  given  at  the  T.U.C.  spe-  legal frame-  shop-floor  participation  which,  of  Health  level a  in  backed  shop-floor basis  to  responsibility  organization.  Protection  be-  to  needed  implementation of  at  report  simply  influence  share  However, at  much  its  at  extensions  gap  the  the  positive  accepted  extension  report  a  press  lives  resistance  have  the  to  the  "...not  stimulating  Indeed, by  unions  involvement,  unions  in  (Employment  negotiations  encourage  and  evident  T.U.C.  1974).the  wage  trade  in  together  closely affect  negative  self-  involved  ownership,  objectives,  forestall  performance."  early  exists."  level  economic  is  increased  trade  nor  facto  increasingly of  union  power  de  which  has  for  decisions which Trade  assumed  base  been  imperative  strengthened  to  local  it  had  work  and  made  has  concentration  system  Therefore,  already  The  and  economy.  recognition.  level  movement  the  beyond  designed  union  through  the  only  trade  of  l e g i s l a t i o n of  and  was  not  a power  necessary  and  have  decision-making  enjoy  national  industrial  which  steward  has  to  is  structure  through  the  their  also  employees.  employees  economy  but  company  of  fundamental  also  play in  is  thousands  exercise  directors  strategy.  in  -  organization  technology,  for  explains,  of  time  its  economic in  to  enterprises  consolidated  government  not  38  at  national  argues,  can  -  only  be f i l l e d  by employee  39  -  representation  on t h e company  level.  "Major d e c i s i o n s on i n v e s t m e n t , l o c a t i o n , c l o s u r e s , t a k e o v e r s and mergers, and product s p e c i a l i z a t i o n of the o r g a n i z a t i o n a r e g e n e r a l l y taken a t l e v e l s where c o l l e c t i v e b a r g a i n i n g does not t a k e p l a c e , and i n d e e d a r e s u b j e c t m a t t e r n o t r e a d i l y c o v e r e d by c o l l e c t i v e b a r g a i n i n g . New f o r m s o f c o n t r o l a r e n e e d e d . " 6 On t h e o n e h a n d , ment the of  decisions, management  such  and p l a n t  decisions of  national  individual  representatives  decision-making proposals  bargaining  and on the o t h e r ,  how w o r k e r s '  level  local  could  by t h e u s e o f  constitutes  the main  do n o t a f f e c t agreements  firms. exert  worker  directors  thrust  of  and  invest-  are not concerned  The need  a degree  planning  of  with  f o r an  examination  control  over  company  and the arguments  the remainder  of  the  against  Bullock  Report. The E.E.C. the  three  policy  T.U.C  Nothing  feel  of  worker  unitary  be more  equal  of  collective  would  be f r e e  t h e 1974  board  of  to  those  1974  of  the  than  Two.  i t s central  having  to  union  responsibility to  back  than  majority.  for  board  trade  to  was t h e a d o p t i o n  rather  accept  In  a two-tier  a  "Industrial  its  equal  T . U . C ,  inquiry,  supplementhat  i t  representa-  responsibility Only  with  be  The  reconstituted structure  with  a  7  machinery,  unions.  i f  expected  decisions."  union  their of  the  demand  representatives  be t h r o u g h  report  from  statement,  responsibility without  can trade  to  came  the Bullock  i n Chapter  had an entrenched  position  directors  i t s evidence  reiterated  damaging  and s e l e c t i o n were  directors of  expect  t h e Committee  outlined  the T.U.C.  representation  any sense  modification  been  representatives  parity  Representation  the  Bullock,  In  largely  has a l r e a d y  could  shareholder  system to  to  put before  the C . B . I .  remained  " . . . u n r e a l i s t i c to  tion. the  which  evidence  was  proposals  and from  arguments  Democracy," tary  main  and  only form trade  of  - 40 -  union  representation The  with of  second  proposals  "European  ments  bate.  the The  for  visory  tion  of  Report, in  consist  representatives employee  of  would  and  Statute  monitored one-third  and  one-third  representatives  which  by  a  the  creation  certain  require-  involved  with  in  or  the  de-  system with  board;  other  whether  1975,  the  the  two  a  super-  representatives,  by  employees,  in  Government,  two-tier  shareholder  all  permit  supervisory  co-opted  Paper  meet  itself  were: a  to  British  find  by  Green  would  have  the  eventually  Draft  and  Commission  Statute  companies  would  board.  E.E.C.  participation,  appointed  would  an  Company  These  proposals  board  policy-making  from  European  employee  Bullock  board  employee  a  top  was  Companies."  main  management  the  proposal  regarding  without  on  one-third  groups;  trade  union  elec-  members  9 or  not. The  worker  flexibility  company  trade  free  unions,  C.B.I,  proposal,  representation  preferred each  third  the  conceded  to  the  in  developing  devise  for  suitable  some  Thus,  companies  with  than  by  a  vote  agreement an the  "participation of  the  would  independant range  of  outside  options  in  form  worker  the  in  two  of the  legal  could  be  of  After  of  the  could  However,  the  larger  firms  the not be  period,  to  of  participation  an  are  reached.  be  failure  excluded,  arbitrated  be  obliged  period,  a  with  relevant  this  directors part  in  would  year  of  participation,  with  desirable  form  organization  participation.  four  imposition  form  forms  employees a  compulsory  employers'  participation  within  Worker  any  conjunction  thousand  employees.  agency.  which  of  form  agreements"  majority result  itself,  of  on  the  alternative  might  agreement  rejected  Instead,  legislation  voluntary  more  C.B.I.,  board.  where  conclude  the  on  most  that  from  to  validated to  reach  scheme  however,  agreement.  by from Should  -  any  company  directors be  they  elected Of  enter  advocacy  of  employee  either  utilizing  to  who  an  down  not  warrant  by  report  bound the  on  or  proposal serious the  Ministry  than  with  trade  one-third  union  the  any an  machinery  unions  of  on  boards And  the  on  worker  board,  and  must  the  which  the  sole  of  a  of  T.U.C.'s directors  channel  system  would  C.B.I,  the  boards  be  of  of  minority in  a  nothing  to  do  l e g i s l a t i o n on w o r k e r  obligation  on  both  with  employee  detailed  wanted  participation  consideration  by  reference, and  on  was  parties  legal with  partici-  in  industry  period.  employee  Trade  as  defined  amorphous  of  radical  conceived  clearly  a given  most  representation  Commission  terms of  of  company  instead  by  more  relations.  accord within  C.B.I,  felt  parity  E.E.C.  directors  The  agreement  clearly  trade  industrial  preferring  reach  could  of  worker  pation,  union  The  -  ballot."^  representation  framework  number  proposals,  trade  representation.  voluntary  not  secret three  shareholders  a  should  by  the  into  41  those which  Industry,  was  a  members were  (see  non-starter, of  quite  page  the  committee  explicit,  37)  and  Indeed,  handed as  the  emphasizes: "The e x t e n s i o n o f i n d u s t r i a l d e m o c r a c y , t o w h i c h o u r t e r m s o f refere n c e r e f e r , c a n o n l y be a c h i e v e d i n o u r v i e w i f t h e r e i s d i r e c t representation o f e m p l o y e e s on company b o a r d s i n j u s t t h e same way as t h e r e i s d i r e c t r e p r e s e n t a t i o n o f s h a r e h o l d e r s on b o a r d s a t present."  At  the  tion  on  Having three  very  least  company  then,  boards  established the main  retaining  options: a majority  representation  of  some would  be  central  imperative  unequal of  scheme w h i c h  of  would  to  the  worker  representation  seats;  shareholders  50:50 and  f a c i l i t a t e worker committee's  directors, with  recommendations. report  shareholder  representation;  employees  the  which  representa-  outlines  representatives  and m i n o r i t y  would  involve  but a  equal  third  -  group  of  directors  The of  first  one-third  dominant. thetic, can  be  option  of  Also,  representation, executive  seriously  in  practiced  treatment critical  that  company the  it  of  may  the  the  its  and  more  its  efficacy  Germany  European  valuable  on  attentive  to  the  in  form  workers'  the  part  sympa-  into  the  board's  albeit  in  interests  However,  employee  remaining  representation  insight  board,  formulation.  minority  is  Unequal  demystify the  in  representation  employee  help  presence  Sweden  experience  shortcomings.  policy of  and  shareholder  generally  employee  in  with  provide  management  f u n c t i o n ;and  of  of  policy  fact  makes  questions  i n West  representation,  largely  beneficial  -  board.1'1  is  report's  though  determination  its  the  employee  The  ceedings.  on  42  the  prominority  in  both  report  representation:  "It i s not simply that i f shareholder r e p r e s e n t a t i v e s are i n the m a j o r i t y they can decide the extent to which they wish to ignore, t a k e note o f , o r a c t upon t h e v i e w s e x p r e s s e d by employee r e p r e s e n tatives. They can a l s o d e v i s e d and c o n t r o l the framework of p o l i c y making: the appointment o f s e n i o r management; d e l e g a t i o n o f authority t o management; the p r o c e d u r e s o f the board and the arrangements for p r o v i s i o n of i n f o r m a t i o n to board members."13 In  both  West  Germany  presentatives ments,  were  were  and  in  usually  Sweden,  the  a minority  outvoted  committee  they  by  had  found  l i t t l e  shareholder  that  influence  where  employee  over  representatives  senior  and  had  reappoint-  l i t t l e  14 influence  over  that  minority  with  shareholders relatively tation board  the  decision-making representation  towards  powerless  insist  that  decisions.  unreasonable  to  workers,  and  situation.  worker For  expect  process. there  workers' And  directors  Bullock, employee  is  this  yet, bear was  The no  main  effective  reason  transfer  representatives the  full  for  are  of  thus  in  of  and  responsibility  unacceptable.  representatives  to  "In  accept  our equal  view  is  power  advocates equal  minority  this  from  a  represen-  it  for is  responsibility  - 43 -  unless,  through  equal  representation  on  the  board,  they  are  able  to  have  equal  15 influence  on  the  decision-making  Consequently, the  board  dation cited  between  favouring the  boards  ally  a  the  full  50:50  exclusive  of  that  tation  "...since within  of  will  block  be  a  voting  voting  equally report to  gain  fore  opinion."  board  is  the  support  can  and  carry  also  number Another  of  total  by  2X  divisive  an  board.  dividing mean  that  a majority  or  veto Y,  co-opted  the  X  the  third This  The the  of  The  equal  co-opted  of  shareholder  of  the  where  represen-  the  of  of  tendency  directors third  but  group  represen-  form  less  would  be  This  format,  very  least  by  called  number  mutu-  representatives  one,  the  steel  report  shareholder  seats.  report  and  (organized  shareholders  at  report  remain  "neutral"  than  will  directors  to  group  and  and  board  group  represents  number  a  greater  remaining  of  of  The  blocks.  However,  employees  either  groups,  on  recommen-  iron  shareholder  employee  number  proposal."'''7  where  represents  important  a  the  The  the  and  effects.  of  uneven  of  +  co-optation  agreement  comprise the  the  its  the  " . . . w i l l  composition  tatives  reduce  with  should of  develop,  coal,  consequence  of  represented  they  inevitable  a  representatives  independent  range  co-opted  the  as  produce  German  distinct  considerable does  asserts,  vote  as  not  representation  representation.  shareholder act  equal  did  the  employee  be  one-third  in  of  would  than  to  an  50:50  found  and  to  of  of  but  group  significantly  and  which  and not  favour  each  would  tatives  is  in  option  employee  other  out  shareholders,  representation)  argued  there  and  parity  for  each  block  came  Commission  tendency  of  report  employees  Biedenkopf  industries on  the  process."  both its  the need  groups  formula  employee  befor  represen-  representatives,  and  Y  directors.  recommendation  report  called  for  single  channel  representation The on  report  non-union  expertise,  of  as  employee  independent  that  the  senting the work The  on  the  strength  directors  demand  workers  twenty  initial  this  representing  vote  were of  a minority  can  organization repository  providing  a  trusted  support  the  employee  trade not  would  union  initial  the in  the  by  of  If  a  (equal  situation  majority,  keeping  as  having  help  to  the  bargaining.''"  in  a  their company  trade  unions  repre-  secret  ballot  of  to  one-third  implement  "...whereby  whether  ensure  express  employees  mechanism" would a  would  recognized  favour  of  collective  al1  workers.  vital  shop-floor  and  opportunity  ballot  expressed all  machinery  the  the  representative.  c o n f l i c t with  have  of  based  These  and  means  constituents,  to- p r e v e n t  force  steward  machinery.  selection  bodies.  a  "triggering  designed  non-union  as  a simple majority  is  other  union  and  his  would  an  percent  so-called  ballot  by  trade  with  on  employees  such a  produced  force),  to  through  representation  committee  touch  based  directors  for  least  in  board  shop  network  representation  on w o r k e r  and  of  stewards'  necessary  non-union  the  employee  growth  a communication  level  at  the  shop  for  -  committees  representative  Consequently,  if  ignore  worker  board  opinion  interests  consultative  bodies  contribution  Moreover,  worker  44  dismissed proposals  employers'  the  of  -  unionized  of  the a  the scheme.  trade  or  union  not,  to  19 accept  board  proposals favourable  do  level not  ballot  representation  make  result  sentation  Committee  the  unions  trade  method Just  as  of  any  special would  (J.R.C.)  involved.  be  of The  s e l e c t i o n which would  shareholders  hold  the  against  its  provisions followed  shop  w i l l . " for  Other  the  setting  stewards  and  other  via  seem m o s t  the  J.R.C.  appropriate  responsibility for  this,  the  non-unionizedemployees.  by  unions  than  their  up  of  a Joint  representatives  would to  devise  their  A Repreof  whatever  enterprise.  directors,  the  only  -  legal  criteria  for  responsibility  on  disputes  arising  would  referred  be  selection of the  to  the an  -  worker  recognized  from  45  directors  would  be  to  in  the  trade  unions  involved  "triggering"  ballot  or  independent  agency,  the  place  scheme.  administration Industrial  overall  of  Any  the  Democracy  scheme  Commis-  sion. These Committee  are  of  its  remaining  A.  The  trial to  a  the  more  inquiry  and  are  the  democracy."...by  proposals  restated  recommendations  c o n c l u s i o n to  new  central  and  putting  basis which w i l l  the  involve  the  separately  those  majority  of  of  report  the  and  of  succintly,  reiterates  just  report  minority  relationship not  main  between  management  in  capital the  with  Appendix  imperative  but  Bullock  together  report,  the  the  and  whole  of  indus-  labour work  on  force  2 in And  sharing the  responsibility for  final  paragraph  the  added  a  success  touch  of  and  profitability  historical  of  legitimacy  the to  enterprise." the  report's  recommendations. "The f e a r s e x p r e s s e d i n t h e n i n e t e e n t h c e n t u r y i n t h e f a c e o f proposals to g i v e more p e o p l e t h e r i g h t t o v o t e d i d n o t s t o p s h o r t o f t h e subvers i o n o f t h e c o n s t i t u t i o n and the d i s s o l u t i o n o f s o c i e t y . Once t h e f r a n c h i s e was e x t e n d e d , h o w e v e r , t h e f e a r s w e r e f o r g o t t e n a n d t h e R e f o r m A c t s were seen as e s s e n t i a l to the c o u n t r y ' s s t a b i l i t y and p r o s p e r i t y . We b e l i e v e t h a t o v e r o n e h u n d r e d y e a r s l a t e r a n e x t e n s i o n o f i n d u s t r i a l democracy can produce c o m p a r a b l e b e n e f i t s and t h a t o u r d e s c e n d a n t s w i l l l o o k b a c k w i t h a s much s u r p r i s e t o t h e c o n t r o v e r s y w h i c h s u r r o u n d e d it a s we d o t o t h a t w h i c h s u r r o u n d e d t h e e x t e n s i o n o f t h e p o l i t i c a l suffrage i n the nineteenth century."21 One  of  the  committee  members  and  a  signatory  of  the  majority  report  22 issued the  a  note  of  single-tier  directors  dissent. board,  based on  reconstituted responsibility  board  and  their of  Mr. he  trade  also  Wilson  firmly  unions.  directors  necessitates  N.S.  equal  and  in  He  agreed  backed  the  differed  particular  representation  with  on  Bullock  concerning  justification on  on  the the  of  worker  composition of T.U.C.  company  view  boards.  that  the equal  -  Wilson  proposed  duce worker company. than  the  instead of  directors  number  The  how  achieved  by  of  the  number  with  than  to  i n d u s t r i a l i s t s held  for  the  i t  unready  receive  to  commendations ties  and  is  dangers,  to  the  view the  impose  introduce  a  the  scheme w h i c h w o u l d  number  representatives whose  of  employees  should  numbers  by  the  three  that  the  committee  democracy  those  always  would  proin  any  be  less  evidently  is  on  laws  on  proposed  that  the  in  aims  report  the  in  basis  required  directors  are  make  spite  of  of  the  are  be  not  ready  And  its  the  remit  consi-  pursued.  unwilling  would  corn-  could  achieve."  who  the to  s h o u l d be  industry  to  those  determined,  new  was  worker  work  report  minority  i n d u s t r i a l i s t s on  extension  who  'democracy' the  via  such an  majority  Government  --  shareholders.  "that  However,  the  to  representatives  industrial  the  i t . "  to  employee  consider whether  unwise  " . . . i f  formula  proportion  (signed  changes which  "certainly  + Y  complaint  of  The  radical  24.  the  extension  rather  of  shareholder  report  2X  in  d i s c r e t i o n of  opened an  the  directly  the  minority  committee) ,  --  However,  decided  der  -  "What i s m e a n t by ' e q u a l i t y o f r e s p o n s i b i l i t y ' i s t h a t e a c h member o f t h e b o a r d has i d e n t i c a l d u t i e s a n d , s i n c e a l l d i r e c t o r s w o u l d , i f the m a j o r i t y ' s p r o p o s a l s a r e a d o p t e d , be o b l i g e d t o h a v e r e g a r d t o t h e i n t e r e s t s of employees, there i s n e i t h e r i n c o n s i s t e n c y nor c o n t r a d i c tion in proposing minority representation whilst expecting a l l directors to have i d e n t i c a l r e s p o n s i b i l i t i e s . " 2 3  .  be  46  own  that, or re-  difficulwhich  we  25 have  been  given."  The  minority  directors There cils  should below  operating right  to  to  consider be a  board for  vote  report  interests  statutory level  three for  the  requirement  within  years  a worker  of  in  four a  to  years.  company,  director  both  the  system  law  should  be c h a n g e d  shareholders set  up  After  company such  employees —  and  force  employees.  participation  a council would  seven years  to  had  have  from  been  the  the  coun-  legal  start  of  -  the  process.  who  would  of  The system  be r e p r e s e n t e d  a two-tier  and  board  subsidiaries of These  objective possible were  were  of  given  pressures  vitriolic  over  of  some  from  publication  by L a b o u r ' s  changes In  remain to  in role  annual  this  silent  persuade  to  that  employees.  level  institutions  would The  climate  democracy  give  the  the  least  recommendations  which  indicated  l e g i s l a t i o n from  Report  the Bullock  by B r i t a i n ' s  general  whilst  the  the  perceived  Government.  union  It  the various and to  ministers,  debate  campaign itself  to  for  to  the Report's  princi-  would  unions,  from  fully  was s e v e r e l y  instead accept  private  to industry  and s u s p i c i o n likely  to  by  involve  adversary  system.  chose  attempt  Bullock  to  privately  before  their  thereafter.  c r i t i c i z e d by  socialist  difficult  the T.U.C.  i t s implementation  and independent  i t  the t r a d i t i o n a l  and p r e f e r r e d to  with  reluctance  by t r a d e  unions  was r e c e i v e d  cooperation  with  and  It  who f o u n d  as a scheme w h i c h  incongruous  uncertain  activists  but t i e d  on f u r t h e r  endorsement  the T.U.C.  Labour  industrialists.  was a c c e p t e d  movement  reluctant  was met by an i m m e d i a t e  election manifesto  relying  and behaviour  conference  other  Financial  directors  of  i n the ensuing  Moreover, ters,  employees  by t h e i n d u s t r i a l i s t s , w i t h  on t h e Labour  crisis.  the trade  view-of  industrial  but a l l  exempt.  but i n a p o l i t i c a l  by government  1974  the Report  the economic of  decisions  be  members  on t h e t o p s u p e r v i s o r y  companies.  and t h e T . U . C .  condemnation  ples  much  of  the seats  should  of worker  union  Reaction  embarrassment  in  form  of  put forward  a system  management  Europe  some  applaud  companies  reluctance,  not j u s t  in holding  the proposals  out of  Bullock The  foreign  -  involve  by o n e - t h i r d  structure  designing  power  likelihood  Post  would  47  i t s own  organizations.  supporThe  -  Institute  f o r Workers  and  union  trade  involvement  T.U.C.  position  I.W.C.  recognized  sentation The  of  1974 in  1974  called  boards  remaining  independent  of  of  a supervisory  compromise result, holder  trade  board  unions  system  the advocacy  their  would  become  collaboration with  positions  the functions  blurred,  management  policy  of  and from rather  of  the  the  by w o r k e r  veto  repreboards.  decision-making, would  from  the  unitary  endorse-  power.  might As  and  position  power  there-  board  directors  I.W.C.  the The  management  away  workers  than  sharing boards.  countervailing  of  Commission  i n management,  in T.U.C.  from  over  management  involvement  to  of  control  power  over  firms,  system  workers  the s h i f t  the d i s t i n c t i o n between directors  produce  However,  control  the Bullock  large  a two-tier  towards  direct  to  of  possessing veto  workers  ment  for  an advance  encroaching  be a d v a n c e d .  favourable  i n the supervision  of  fore  -  had been  Which  on s u p e r v i s o r y  strategy  while  Control  48  share-  this  by w o r k e r s  a  might repre-  . . . 26 sentatives. "Much o f t h e t e n o r o f I . W . C . a r g u m e n t s has been d i r e c t e d t o e s t a b l i s h i n g t h a t d i s t i n c t i o n , and t o a r g u i n g t h a t i n a t r a n s i t i o n a l s i t u a t i o n , the workers' control objective i s precisely to establish supervisory powers. The q u e s t i o n r e m a i n s w h e t h e r w o r k e r r e p r e s e n t a t i v e s , when t h e y assume seats on:unitary boards, can s u c c e s s f u l l y e s t a b l i s h that d i s t i n c t i o n , a n d i n s i s t o n t h e s u p e r v i s o r y r o l e o f t h e new b o a r d . . . " 2 ? Coates for  a n d Topham s p e c i f i c a l l y  the reconstitution  T.U.C.  policy,  tional  Y element  group  between  argue  Coates  directors skills  of  proposes of  the board.  parity  neutral  or  independent  since  and long  they  would  would  experience  of  of  voters  shareholders  inherently  be composed i n other  the Report  The B u l l o c k  representation  the representatives and Topham,  criticize  of  tend  to  Report,  to  its  recommendations  i n accordance  directors  but with  the  a c t as a b a l a n c i n g  and w o r k e r s . support  individuals  outside  in  the  with  businesses.  This  Y  with addimiddle group,  shareholder  special  management  The B u l l o c k  Report  -  specifically the  best  the l i k e l y  -  categories  among  those  who a r e a t p r e s e n t  from  other  companies  personnel with  lists  49  the business  of  with  t h e company;  of  so-called neutral  non-executive  a particular  of people  directors;  interest  with  directors:  special  in or  of  "...of  senior  connection  expertise  like  28 solicitors,  bankers,  can  agree  with  the  composition  accountants  and so o n . . . "  the conclusion of o f a l l boards  Coates  would  From  and Topham  n o t b e 2X + Y ,  this  statement,  that,  " . . . t h i s  but X  (shareholder  one  would  mean  represen-  29 tatives)  + Y over  The  Labour  suggested  that  reconcilable trade  Y.  Neil  representatives),  Kinnock  the implementation  disagreement  such  between  worker  h a s made of  However, become  constitute  Bullock  non-employee Of  proposed  more  had  enough  report  - -  being  t h e norm  in reconstituting democracy  powerful  T.U.C.  h e l d much  interest  the obvious  E.E.T.P.U.,  management's  proposals  and i n would  the Y  resort  make  boards  of  of  directors.  element. Commis-  nomination  the It  i r -  and the  Democracy  a binding  the i n t e r j e c t i o n  addition  produce  representatives  an I n d u s t r i a l  "...government  affiliated enthusiasm  t o be p r e p a r e d exception  was t o come was g i v e n  union,  resort,  but  point,  I.D.C.  would  by a permanent  on  not  gerrymandered  majority."^  the various  the  a last  ."  on the s e l e c t i o n o f  f a r from  industrial  t h e same  the shareholder  directors  a situation,  or X + Y X  the Bullock  t o a c t as c o n c i l i a t o r and i n the l a s t  would  what  M.P.  union-nominated  Anticipating sion  X (workers  which  concluded  j o b i s t o manage,  sector  Jack  concept  T.G.W.U.  investigation  i n i t s evidence trade  unions,  few o f  and even  f o r the implementation  Jones'  the Bullock  while  trade  f o r the Bullock  to campaign  being  during  private  unions  to  to  of  An i n d i c a t i o n by t h e  the committee  exist  fewer  consider,  the of  electricians' that  " . . .  contest  -  and  oppose,  if  necessary,  conservative  unions  grounds  this  that  relationships mist  of  powerful  of  following  opposed  would  were  February  the  the  undermine  1977,  by  of  managerial  Bullock or  the  concept  confuse  committee  prerogatives.  of  worker  from  evidence.  the  A.U.E.W.  and  from  the  official  hearings.  of  the  report,  directors  collective  giving  David  the  G.M.W.U.  Basnett  In of  Other  1 , 0 1  traditional  names  prevented  publication  -  exercise  to  excluded  12,  those  the  50  as  the  the  on  the  bargaining The  the  Econo-  most  general  debate  G.M.W.U.  wrote:  "The B u l l o c k Committee r e c o m m e n d a t i o n s , f o r w o r k e r s on the b o a r d s of c o m p a n i e s e m p l o y i n g o v e r two t h o u s a n d , do n o t h i n g f o r t h o s e w o r k e r s a n d t r a d e u n i o n s who a r e i n f a v o u r o f g r e a t e r p a r t i c i p a t i o n i n s t r a t e g i c p l a n n i n g , b u t do n o t want w o r k e r directors."32 And  Hugh  union's  Scanlon  of  position  strengthened  by  the  A.U.E.W.,  succinctly: an  "We  extension  of  after  rejecting  think  that  collective  Bullock,  industrial  bargaining,  asserted  democracy to  which  his  can  we  best  know  be  no  33 limit." On  the  one  management other, of  it  Other  unions  hand,  militant  arguing was  argued  directorships  try.  This  view  was  one  of  did  not  prevent  ference into ideas  one of  in of  the  the  the  I.W.C.  merely  held  by  union  summer  three  Bullock  of  of  ring  the  traditional  face  the  challenges  on  the  1977.  lines  of  In  any  than  perpetuate left  the  wing  the  conflict;  whatsoever  workers  control, split  existing  power  relations leader  Jenkins'  proposals  terms,  opposed  whose  private  like  at  legislation  at  a  allocation in  indus-  Clive  Jenkins however,  annual  con-  sector  unions  fell  were time  the  its  principle most,  on  position,  ideologically in  in  reasons. with  and  50:50  either  or,  different  direct  Bullock  They were  very  involvement  Report.  general  grounds;  a  for  A.S.T.M.S.  Bullock  Bullock-style  Bullock  encroaching  less  rejecting  political  of  rejected  rejected  line  the  categories. on  left  anything  signatories his  the  unions  that  would was  on  opposed  on  grounds  simply when  to of  the blur-  unwilling  economic  to  -  problems  would  make many b o a r d r o o m  Industrialists dismissed  the  February,  1977,  ment  the  union  whole  the  C.B.I,  central  nominated  directors.  be w i l l i n g  to  - cooperate  there  unfavourable  p u b l i c l y warned  represented Report  refused  even  of  parity  The  formally  the  directors;  choose worker  London  decisions unpalatable  Bullock Majority  issues  directors;  and worker  were  -  and m a n u f a c t u r e r s , of  the  three  sentatives  51  of  report:  actively with legislation.  that  American  given  And  to  that  government's the  American  companies would  By  the  govern-  trade  shareholder trade  its  members  Chamber to  repre-  unions  industrial  have  totally  early  law of  between  f  policy,  with  i m p o s i t i o n by  threatened  the  C.B.I,  discuss  representation  even  workers.J'  proposals.  to  and t h e monopoly  C.B.I,  by  to  of  to  might  strategy Commerce  review  not if in  their  35 investment The whose  in  Britain  C.B.I,  about  the  Bullock  campaign enjoyed  opposition  length  should  front  the  need  bench to  the  Report  full  spokesman on  democratize  the  become  support industry,  trade  of  reality. the  Conservative  Peter  unions  Walker,  before  Party,  argued  at  contemplating  36 their the  accession  C.B.I,  to  higher  campaign,  worker  directors,  unions  in  the  and a l t h o u g h  the  report  manoeuvres  article  the  the  boardroom  used  to  for  from  to the  The  most  reported  were the  national not  press  wholly  pre-eminent to  w h a t was  power  a minority  in  industry.  concluded:  cliques magic  of  shop  circle  of  "Leaving  the  stewards  —  Tory  grandees  concept  regarded As  choice of the  the  supported  position given  opposition  by  largely  against  unveiled  'Economist' seats  emerge  majority with  democratic in  management.  way --  as  to  a  leading  who  should  the  worst  trade  anti-  Conservative  is  of  have leaders  proposal  37 of  the  side  by  whole the  report."  Moreover,  sombre w a r n i n g s  of  the  leading  p u b l i c were  entreated  industrialists.  Sir  to John  the  employers'  Methuen,  - 52 -  director-general return the  to  end  of  the  "industrial  of  democracy  C.B.I,  trench a s we  (and  one  warfare,"  know  i t , "  time  B u l l o c k member),  and  the  Chairman  of  while  the  Employers  predicted  I.C.I,  a  feared  Federation  " . . .  warned  38 that  of  Bullock would On  the  day  State  for  Trade,  be  of  implemented  over  publication of delivered  the  its  "...dead  Bullock  a Government  body."  Report,  statement  Edmund  which  Dell,  Secretary  concluded:  "The G o v e r n m e n t ' s a i m i s t o s e e d e m o c r a c y e x t e n d e d f r o m o u r p o l i t i c a l to our i n d u s t r i a l l i f e . That i s an e s s e n t i a l i n g r e d i e n t o f the s o c i a l contract. J u s t as p o l i t i c a l d e m o c r a c y has been a c c e p t e d by a l l o u r p e o p l e , s o we b e l i e v e i n d u s t r i a l d e m o c r a c y - - a t a l l l e v e l s f r o m t h e s h o p - f l o o r t o t h e B o a r d i t s e l f - - w i l l come t o be r e g a r d e d a s p a r t of t h e a c c e p t e d f a b r i c o f o u r n a t i o n a l l i f e a n d o p e n a new c h a p t e r i n i n d u s t r i a l r e l a t i o n s and i n o u r i n d u s t r i a l p e r f o r m a n c e . " 3 9 The  message  peated  its  However,  debt  in  parent  as  in  face  the  from  its  cation self of  Dell  of  the  conclusion of  the  T.U.C.  months  rising  the  on  whose  the  charge  pressure  report  on  economic  Government  on  problem  Liberal  directors  and  and by  and  Eric  threat  the  annual  conferences  public  industrial  Varley  and  support  in  on  the  capital  --  made  between  which  perilous  wage  appeared  on  the  and  and  a  fell  away  Cabinet  Foot  and  flight  the  attempt  (leader  the to  capital  the  minority  advocated  i t -  Edmund  of  and  edu-  was  government  industry  any  compact  Moreover,  the  re-  trans-  housing,  secretary)  on  more the  Michael  right.  also  restraint.  Government  reliance of --  but  repudiated  democracy,  non-cooperation  the  in  expenditure  (industry  lay)  Parliament  sharing  The  secretary)  foreign  Finally,  exactly,  contract  unemployment.  report  of  Report  compliance  social  r e a c h i n g agreement  strategy.  profit  latter's  (employment  industry  of  Bullock  cutting On  Bullock  the  the  their  Booth  the  from  under  the  Labour's  in  services.  left,  the  followed,  inflation  Albert  exacerbated  worker  which  for  commitments  social  between  House)  increasing drop  the  manifesto  and  (in  to  the  successive unions  split  the  echoed  T.U.C,. Labour  German-style to  introduce  - 53 -  the  Bullock  proposals  legislation By White  on  the  Paper by  The  was  task  until the  early  April,  move  tion  unions  directors Worker  Not  one  even  tion  these  with  Despite  leader)  through  large  ment  make  and  would  Government  announced  its  and  union  continued  sections  of  crucial  the  sort  of  Liberal  British  Labour  Party  first  took  power  Government in  law  capital  in  decisions  1974."  to  from  (and  consensus  went  before  the  between  a  volun-  worker consultaof  but  worker  1979  its  elec-  White  legislation.  industry  and  a  other  trade  which  the  right  in  private  and  in  the  country  as  of  " . . .  manage-  secrecy had  union  might  result,  industry  it  con-  unions.  general  occasional  As  people.  would  their  C.B.I,  Parliament.  from  thousand  enacting  the  of to  discuss  the  appear  issue  by  be  secretary.  years  two  to  before  manufacturing  industrial  the  than  willingness  support  right  be m a n d a t a b l e  opposition  financial  any  necessary  of  on  to  retreated  representation  representatives  chorus  and  of  not  Paper  a  was  fact  several  employees  parity  in  statutory  more  which  education  not  i t .  promised  desirability  after  employing  have  did  the  a  Only  ballot  40 the  than  became  the  when  to  companies  board  prevented  its  rather  the  promised  produce  autumn  White  stressed  proposals  industrial  further  intact  the  Government's  details)  not  Paper  to  Callaghan  following  White  Government  would  the  Government  failed  Shirley Williams,  the  right  in  Minister  down  the  produced  to  of  management  for  the  the  regularly  for  the  democracy  then  watered  the  this,  spokesmen  as  only  third  because  Paper  have  and  have  and  B for  result,  Prime  by  end,  The  Appendix  representatives  stitute  the  industrial  (See  would  In  a  but  democracy  chaired  proposals.  directors.  1977,  postponed,  1978.  to  of  industrial  later  As  democracy  summer  a committee  Bullock  tary  industrial  on  prepared  unmodified.  been  remained when  -  CHAPTER THREE  54 -  FOOTNOTES  1.  At of  t h e time Peter Shore t h e Board o f Trade.  was S e c r e t a r y  of State  2.  Lord B u l l o c k , Report o f t h e Committee H . M . S . O . L o n d o n , Cmnd. 6 7 0 6 , P.V.  3.  Ibid.,  p. 20.  4.  Ibid.,  p.  5.  Ibid.,  p. 25.  6.  Trades  Union  7.  I b i d . , Supplementary p. 4 6 .  8.  Commission o f t h e European Communities. S t a t u t e f o r European Companies, amended p r o p o s a l f o r a r e g u l a t i o n . B u l l e t i n o f t h e European Communities, Supplement 4 / 7 5 .  9.  Bullock,  of  f o r Trade  Inquiry  and President  on I n d u s t r i a l  Democracy  22.  Congress,  Report  Industrial  Note  of  on I n d u s t r i a l  10.  Ibid.,  pp.  11.  Ibid.,  p.  12.  Ibid.,  p. 92.  13.  Ibid.,  p. 9 3 .  14.  More  15.  Ibid.,  p. 9 5 .  16.  Ibid.,  p.  17.  Ibid.  18.  Ibid.,  pp.109-113.  19.  Ibid.,  p.  112.  20.  Ibid.,  p.  169.  21.  Ibid.,  p.  162.  22.  Ibid.,  pp.  Democracy,  Evidence  T.U.C.,  to the Bullock  Democracy,  1974,  p. 33.  Committee,  1976,  p. 29.  30-33. 71.  detailed  evidence  97.  163-166.  i s found  i n Chapter  9 of  the Bullock  Report.  -  55 -  23.  Ibid.,  p.  163.  24.  Ibid.,  pp.  167-195.  25.  Ibid.,  pp.  170-171.  26.  Ken C o a t e s a n d Tony Topham, The Shop S t e w a r d ' s G u i d e t o t h e B u l l o c k Report, Spokesman, 1977, Chapter 4 . I t i s i n t e r e s t i n g that from t h e standpoint of the I . W . C , the E.E.C. proposals f o r supervisory boards i n a t w o - t i e r s y s t e m a r e seen as p o t e n t i a l l y f a r more r a d i c a l t h a n t h e Bullock proposals.  27.  Ibid.,  28.  Bullock,  29.  Coates  30.  Neil Kinnock, p. 175.  31.  Cited in Giles p. 124.  32.  David Basnett, General February 2 , 1977.  33.  Hugh S c a n l o n , G e n e r a l 27 J a n u a r y 1 9 7 7 .  Secretary  34.  John  or Cooperation?  35.  Ibid.,  36.  See Peter Walker, " B u l l o c k a n d t h e R i g h t , " New S t a t e m a n , 2 5 F e b r u a r y , 1977, p. 246. For a c u r i o u s argument f o r g r e a t e r i n t e r n a l democracy i n trade unions as a p r e r e q u i s i t e f o r worker d i r e c t o r s , as though pres e n t company d i r e c t o r s were a l r e a d y w i d e l y e x p e r i e n c e d i n d e m o c r a t i c organization.  37.  The Economist,  38.  Ibid.,  39.  Cited  40.  D.  ch. 8,  p. 58.  Report,  p. 9 5 .  and Topham,  Elliot,  Shop  Steward's  Guide,  "Bullock  and t h e L e f t . "  Radice,  The I n d u s t r i a l  Conflict  Secretary  of  p.  81.  New S t a t e m a n .  Democrats,  Allen  the G.M.W.U.,  of the A.U.E.W.  Kogan  February  and Unwin,  i n The  1977,  1978,  Times,  i n The Morning  Page,  11,  Star,  1979, p. 245.  p. 244.  29 F e b r u a r y ,  1977.  p: 9 5 . in Elliot,  Coates,  Labour  Conflict  or Cooperation?  i n Power,  p.  142.  p. 242.  -  56 -  CHAPTER The  The tion  overwhelming  a watered-down  proceeding  product  anyway.  ideological  Trade  Union  ment w e l l Bullock  debate  within  report  t o power  The  from  Party  w h i c h managed  significance  i s that  weakness  elec-  and ended  possi-  weak  the standpoint  the E.E.C.  over  was soon wracked  sharply  participatory  financial  contributions  which were  by a b i t t e r  ranks.  removed  any  and ineffectual  of  harmonization,  to double  of office.  swept  democracy  reform  i n the Spring  barely  and pro-  And, f i n a l l y ,  from  developing  p a r t i c i p a t i o n by t h e a s t o n i s h i n g achievement  for the f i r s t  of  into  If,  history,  i n B r i t a i n would  time  both  report  industrial  i t was t h e p r o d u c t  modified  lies  by t h e end o f  Bullock's proposals  o f t h e Government's  have  uni-  of the  1979, the  to at least Labour  not merely  relations.  real  which,  Moreover,  that  the im-  Bullock's  prior  the  movement.  toward  i n t h e 1978 White months  await  i n the fact  Government  findings.  p o s i t i o n twelve  a  i t s r e s u r r e c t i o n and any  o f a Labour  accepted the report's  the  i n f l a t i o n and unemploy-  i n B r i t a i n a p o s i t i v e move  of capitalist  commitment,  Labour  however  and i n f l u e n c e o f a c o h e s i v e and coherent  plementation  a manifesto  Party report  i t s parliamentary  significance of the Bullock  represented  which  within  was n o t q u i t e  return  be f r o m  for industrial  i t s f i r s t year  for industrial  of the Bullock  had i t s a t t e n t i o n  Government  future  the  plans  p o s i t i o n on worker  Conservative  might  The Labour  Movement  Democracy  the Conservative  estrangement  European  found  to  Industrial  on i n d u s t r i a l democracy,  Britain's  overshadowed  it  victoryof  of legislation  democracy.  fied  of  o f 1979 c o n c l u d e d t h e b u r i a l  bility such  Limitations  FOUR  through  the  Paper  extent  reflects  to i t s downfall  -  as  much  never  as  i t  of  next  Labour  the  majority, either  debate,  was  it  Labour  officially  and  the  focus  mass It  examine  before  of  is the  the  legal  sisted  by  --  which  the  imposition on  latter.  both  This  by  sanctity  that  the  to  ability  the  of  their  ultimate  Bullock  its  in  the  labour  services. refuse,  is  weapon  in  Thus,  until  of  arises trade  unions  to  of  the  essentially in  the  both  trade  compromise  unions is  do  and  in  and  would  Unions they  reactive is  and  power  Furthermore,  re-  framework  and  feel,  employer, and  the  reinforces  have  industry.  fiercely  state  distribution  reached.  Bullock  legal  process  re-  democrats  alone,  defensive,  for  than  actions.  the  sure  early  of  be  a  which  both  not  and  union  be  point  relations  their  bargaining  production,  can  rather  proposals  within  of  reaffirms  trade  representatives  unions  from  one  industrial  employers,  part  democracy,  from  1960's  reform  union  and  trade  and  --  the  parliamentary  starting  proposals  Bullock  independence  collective bargaining  organized and  as  collective bargaining  collective bargaining  commodities  take  activity  of  of  occur,  will  place  altar  lessness  forcibly  does  that  industrial  or  this  would  the  to  law  trade  bow  sense,  pledge,  probable strong  on  If  preceded  legislative opportunity  today  this  debate  controversial  which  In  seems  and  and  in  the  important  most  scope  negative  before  three  the  that  the  l e f t unimplemented  socialists  define  forget  whole  both.  on,  was  it  The  a sufficiently  election  or  report  for  would  the  reason  of  the  simply  Bullock  necessary  which  preserves  this  democracy  attention  rhetoric  was  command  renewed  industrial its  For  reconvene  pressure  sanctions  the  a  in  i t  conservatism.  therefore,  next  Firstly, place  from  activist of  shelved;  if  -  inherent  Government.  Government,  future  1970's. to  nor  voluntarily  the  peat  Party's  will  Labour  that  the  scrapped  fall  and  does  57  the  strike. power-  exchange over,  but  of simply  collective  -  bargaining,  to  of  years  over  150  that  i s ,  been  in  custom  each and  practice,  degrees,  point  resist  --  industrial  of  unions while  the  of  living,  can  not  in  out  which  genuine  societies  like  industrial of  itself  It  trade  Britain,  capital  be  by  therefore,  critically  who  illusory  is  --  often  capital  resist.  struggles and  that  implementation has to  safety  may  and  for  its  democracy  is  impossible.  for at  reappraise  can  the  the  the  time  of  the  In  state  the  to  the  a  system  like.  But  labour  power,  to  in  industrial  democracy  is  for  of to  stanit  with-  changing oligarchic  democracy.  part  re-  industrial  e s t a b l i s h e d and  forfeit  of  industrial  advanced  industrial  to  increased  to  the  strength  a collective bargainist,  be w i l l i n g if  of  legally  purposes  same  and  independence  from  us  democracy  members  capital  power  occasionally  framework  helped  in  implement  itself  legal  in  employer  potential  and  intervention  from  to  embody  conditions  of  the  grown  brings  'for  a  undoubtedly gain  has  and  industrial  transfer  by  This  organize  be o v e r s t a t e d  pattern  minimal,  possesses.the  and  product  insurgence,"  has  employer  strength  of  it  union  the  no way  by  Its  trade  of  in  the  understandings,which,  power  and  is  checked  essentially  between  it  legislation,  overcome  democrat,  and  only  but  refuse  its  limit,  confrontation.  informal  the  bargaining  that  industrial  industrial  cherished  for  health  secure  know no  collective bargaining  can not  union  better  statutes  to  power  Collective  in  and  relationship  capital,  democracy.  class  rules  organizational  that  surplant  industrial  distinguish  l e g i s l a t i v e backing  working  power  is  power  protection.  dards  the  called  fractured,  unwritten the  has  of  parts  of/trade  which  and  in  always  from  Tawney  system  define  but  the  overcome  its  "autocracy  smooth,  prescribe  quires  what  parts  considerable  to  we  adversary  company,  main  of  -  Hugh S c a n l o n m a i n t a i n s  the  and  varying  which  58  The must  his hold  any  -  future  parity  shareholder  is  i t  out  capable  the of  those  labour,  influenced  of  the  by  point.  to As  them was  and  by  the  argued  fullest  over  the  means  vote  be  in  a  the  Y  T . U . C ,  genuine  element  boards  of  put  either  it  parity  represents  would  provide  since  parity  the  of  the  not  but  democracy"  not  One,  a  in  the  minimum  satisfactory directors  capital  would  king  at  least  with  those  status  most  important  of  industrial society  ownership  maintenance value  control  hardly  of  of  of  and  dividends  capital.  an  p r i n c i p l e of  It  enterprise one  man  one  Bullock  report  does  merely  because  of  existence  because  in  of  capitalist  the  Report,  Parity  of  democracy  industry;  against  with  power  veto  as  with  at  Pateman  best, a  the on  would  boardroom  level  management  over  not  representation  At  though  safeguard  the along  but,  "pseudo-democracy."  participation  was  positions  the  Nor  The  industrial or  group  between  scarcity  a l l . pointed  element  system  liberal  the  representation. not  Y  is  democratic  democracy  suggests,  worker  the  "Y"  worker  at  Coates  philosopher  this  management.  limited  provides  the  with  Ken  business  Chapter  but  parity  the  divorce  of  constitutes  of  and  complete  between  representatives  a  levels  no  the  with  all  "partial  the  But  reflecting  50:50  is  compatible  with  or  of  despite  report.  labour  parity  between  end  boards  recalled that  standing  --  of  Coates  formula,  participation  industrial  as  diretors  that  company  industrial  of  as  Y  be  production,  capital  function  demands  of  on  "objectivity"  the  form  recalled  determining  constitute of  be  the  theoretically  private  further  that  towards  its  should  is  +  will  Bullock  in  will  2X  representatives  conceives  invested  It  identical  which  on  the  professional  democracy  control  or  and m e d i a t i o n  their  shareholder  ascribed  and  neutrality  be  representation  democracy.  social  of  of  directors,  industrial  that  and  -  meaning. Secondly,  and  59  which  cooptation  shareholder  directors.  -  At  worst  power  it  is  maintained  appointees tive it,  Y  represents  of  first  democracy First of  of  and  in  a  a l l ,  labour  of  shop-floor tions nel  at  of  tative  some  the  of  as  on  the  interests  earlier,  over  trade  abilities,  and  when  constitute  negative  and  of  and  of  capital,  real these  ostensibily  a  an  extent other of  objec-  and  with  Whereas,  exclusive in  of  trade  any  bodies  attempts  by  democratic their  purpose  conditions  its  of  experience  opinion  a  in  at  system could  the  negotia-  trusted  chan-  of  consul-  hope  would  Radical  to  rely  to  reforms  Conservative advance.  defensive of  function  organizational  democracy unions.  at  representative  competence  than  seem  two-fold.  cumulative  provide  choose  industrial  is  maintain  grassroots  industrial  by  secure  produced  non-union  characterized the  to  greater  undermine  to  to  might  reason  the  has  to  unions  legitimate  already  exposed  d i s c r e d i t and  for  the  to  c a p a b i l i t i e s of  are  The  degree  unions  immediately  power.  attempt  right  decades  high  trade to  sole  trade  mechanism,  Moreover,  implementation  employed  any  sensitive  councils or  unions  to  union  in  the  the  are  Thus,  are to  has  status.  which  protective  society  trade  definition  maintaining  works the  by  such  representation  Secondly,  share  directors,  power  a monopoly  element  is  unions  level.  committees,  nominated  c a p i t a l i s t economy.  management  while  elected  traditional  channel  union  and  trade  the  grant  important  trade  labour  with the  to  single  an  rather  significant  labour.  predominantly  employee  traditional  together  communication  capitalist  noted  be  level,  extent  than  of  the  national  achieve.  appointed  proposal  demands  expertise  networks  in  to  industrial  when  the  directors, glance  since a  preserve  subordination  Thirdly, worker  would  -  pseudo-democracy  capital,  element,  the  by  60  and  collective  industrial  As  and was  reactive bargaining  democracy  -  this  defensive  stance  as  posture  protection  However,  would  for  problem  the  grant  trade  against  the  spirit  for  workers  some  sal  to  extent  all  imperative of  of  monopoly  force the  in  this  raison  d'etre  of  unions  with  not  just  any  side  the  A  the  for  opportunity  trade  unions  become  error  of  proposal  to  provides  union  At tarians, meaning  very  trade of  on  the  through  the  works'  as  its  least  of  by  the  of  by  worker  councils),  directors  The  of  the  trade one  is  report's  that  can  is  any  sort  whole  work  desirable for  full removes that  union  opposed  therefore  acknowledge  consul-  the  right  efficacy  one  the  The machi-  to  have the  representation, by  within  thereafter.  trade  (as  representatives  meant;  insistence  because  unions  goes  immediately  representation  worker  worker  the  propo-  democratic  occasion  file  communication  While for  only  and  Bullock  granting  ballot  labour.  undermines  democracy  contradicts  rank  it  The  activists.  the  assertive  industrial  that  industrial', democracy  worker  a channel  is  choose worker  provides  and  of  democracy.  initial  assumption  of  e l e c t i o n ;.of  unionists  for  in  channel  open  industrial  struggle  agent  argument  their  The  participation  representatives.  machinery  insist  a whole  or  and  positive  Industrial  industry  response  sole  lies  best  committees  theless  the  the  s e l e c t worker  trade  as  the  the  in  system  further  to  democracy.  mechanism,"  positive  of  a  ascendency  industrial  industry. a  "triggering  participation.  tative  in  into  the  type  unions  equality  deciding whether  firm,  nery  trade  in  a monopoly  industrial  political  to  made  with  of  -  transformed  advances  the  to  be  61  must  work  of  never-  force  contest. then, or  industrial  independent  democracy,  democracy  in  the  democrats, socialists  mechanism  industry  is  to  of  whether should  Labour  re-think  representation  be w o n .  This  parliamenthe  and  involves  how a  two-fold  - 62 -  examination. lation, the  i t  First,  seems  potential  Labour from  act  as  follow  government  a  Labour  In  Party  armed  order  in  the  in  with  to  it  development.  the  Party,  future  will  an  command much Second,  dustrial unions  remain  The Trade  able  two  Union  to free  from  questions  movement society.  capitalism  and and  radically  reform  democracy, tragedy  is  are  Labour  Bullock  of  toward  what  to  present remain  origins,  might  examine  i t  does  majority  the  the  ideological  and  free  of  its  from  the  philosophy  divisions  c i r c u m s c r i b e d by  d i r e c t i o n and  future  expected Party's  not  a  fruition  be  legis-  possesses  experience,  parliamentary work  Party  However,  ever be  to  accept  the  given  to  the  certain aspects  of  their  manipulation are  by  interrelated birth, they  and  the  ideology  within  past.  of  Labour  representatives  topic  of  spawned the  the  B r i t i s h working  immature  but  that  of  whether  traditional  trade  independence  since both  Party  the  developed  its of  a  Labour  within,  complete  longevity, the  them,  remainder  of  question  i n -  imperatives.  have  to  r e s p o n s i b i l i t i e s of  c a p i t a l i s t management  constitute  a complement  system which the  still  the  must  Whether  industrial the  up  found  therefore  political  The  unions  give  the  parliamentary  chapter.  attention  capitalist  trial  this  of  the  necessary  c o u r s e must  trade  democracy  are  and y e t  if  of  is  the  reforms.  of  extent  Despite  examination  such  would  involves  only  comfortable  assess the  future  that  light  constraints  historical  Therefore,-  for  the a  democracy  suggest  vehicle  and  its  to  that,  c r i p p l i n g economic  potential.  industrial  reasonable  to  automatically  since  class,  working and of  into  or  these  whether  class  the  predominantly  absorption  together  this  a  and  are  able  achieve  to  indus-  chapter.  suggests  Anderson,  was  not  3 that  i t  was  i t  was  premature.  The  Communist  Manifesto  was  -  published 1850  in  until  influence  the  same y e a r  around to  1890,  which  as  there  workers  the  63  collapse of  were  could  -  no  Chartism.  socialist  ideas  look  for  political  period,  the  traditional  In  or  Britain,  movements  expression  from  with  and  any  effective  4 representation. labour  movement  working  class  and  more  militant  unions'  alliance with  manufacturing  Two to  the  other  The  endorsed Fabian arena  the that  Social  voter  by  the  new  representation,  but  objected  the  contrast,  The  philosophy  of  Fabianism  taking  place of  political  democracy.  governmental  the  of  and  Thus, power  this  Labour  the  (1883) as  the  to  a  shared the  was  was  as  formed  each  claiming  opposed  only  to  Party.  manoeuvre.  the  the  with  ideolo-  explicitly Marxist  tactical  the  craft  Liberal  period,  in  representation.  unionism  Party  to  same  parliament  and The  legitimate  society. was  derived  laissez-faire  the  for  in  political  closely associated  alternative  only  saw  society  that  was  organized  possessing diametrically  parliament  capitalist  state  an  formed  but  of  the  which  Independent  with  reform  by  Party  Federation  i n c r e a s i n g l y complex  unskilled workers,  unions,  the  ference  of  craft  for  an  were  development  class  were  interests  Democratic  the  future  working  old  1893  groupings  (1884)  the  unions  of  Liberal  In  class  workers'  Society  beginning the  the  participation!^  state  secure  the  capital.  socialist  condition  membership  parliamentary  working  represent  gies.  in  to  craft  organization.  than  belief  came  mass  marked  growing  provide  such  1880's,  Unionism,'  Though  as  this  political  From t h e 'New  During  would  would  electoral  Fabianism  itself  of  Sidney  compel  reinforced  support  and  u t i l i t a r i a n i s m but  capitalism. of  be  from  by  the  facilitate  Webb  greater  the  argued inter-  development  working  gradual  with  class  but  of  would  persistent  -  social of  and economic  gradualism  anarchy feudal  reform/  l e d Fabians  in social  This  a period  on one hand  -  acceptance  to conceive  affairs,  administration  64  of  of  the historical  capitalism.as a  of administrative  inevitability  "...mere  nihilism  a n d t h e new c o l l e c t i v e ,  period  in  social  of  between administra-  g tion  on t h e o t h e r . "  cians  of  reform,  ately  practical  socialist  Party  the  declaration  representation  of  unionists in  coalition junior  who w e r e  partner  sive  system  economy adequacy  that  persuaded  accepted  to  state  was seen  and various  by L i b e r a l i s m  stayed  While  of  than  socialist  was e v i d e n t a  better  i t a long  term  of  Socialism,  the  on as permanent  i n  The  the majority  the S.D.F.  the  Commons."7  and w i t h  of alienating  Consequently,  "...securing  i n t h e House  inter-  parliamentary  decisions.  support  term  Simple  i n 1900 (renamed  unions  declaration  of  was i m m e d i -  no l o n g  to.  required  techni-  promptly  trade socialists  left  the  o p p o s i t i o n and  Fabianism.  W a r One h a d f o r c e d of  need  of court  trade  labour  on what  offered  had t h e aim o f  the resolution. the I.L.P.  unions  and i t s Fabian  socialist  more  Fabianism  was formed  of  the L.R.C. of  the self-styled  concentrate  trend  Committee  But, at the risk  in disgust,  World  trade  influence  f o r a more  reform.  the I.L.P.  union  were  Nor d i d i t  the anti-union  i n the interests  had hoped  strategy  of  i n 1906) a t a conference  the trade  I.L.P.  this,  ideology.  the bulk  Representation  societies, modest  always  Beyond  o r coherent  to reverse  therefore,  would  and possible.  the Labour  Labour  efforts  was a l l t h a t  representation when  whose  strategy  ventionism  The F a b i a n s ,  control  by Fabians  the c o a l i t i o n government  over  t h e economy.  i n the Labour  o f c a p i t l a i s m t o cope w i t h  Party  the problems  to evolve  The s u c c e s s as proof of  of  exten-  the war  not only  production  an  and  of  time  the i n -  -  distribution,  but  also  that  65  -  socialism  via  state  intervention  and  control  was  o an  administrative  "Labour land, as  and  the  New  railways,  canals,  necessity. Social  mines,  harbours  Consequently,  Order"  in  1918  electricity,  and  shipping.  the  advocated  Industrial It  f i r s t  also  Labour  the  for  manifesto,  nationalization  Insurance  called  Party  Companies,  state  as  of well  responsibility  9 for In  the  provision  the  same y e a r  Party  from  national party  a  a  party,  structure  the  relative  Clause  4  its  Labour  1918  were  its  social  (January  and  which  ficient,  for  a  left  Constitution  and  inscribe socialism  eocnomic  by  a  1924  further  the  and late  earmarked and were  in  on  its  a much  to  Labour  central  larger  financial  influence  in  arrangements the  three  the  confirmed  inclusion  public  imminent  in  i t .  of  c o l l a p s e , as  and  become  will  be  early  goals  to  in  fact implement  Governments minority  public  and  utilities  hopelessly seen  Party  enabled  the  begin  both  the  its  Labour  were  industries had  Labour  1918  But  even  intervening  ownership  of  Indeed,  to  1931)  the  unionism of  declarations  decades  the  those  trade  preceded  1929-October  1940's,  Fabianism  banners.  which  although  May  for  the  centralized,  subject  despite  of  policy  anything  reforms,  a  taxation.  1 1  conservative  Labour  and  These  wing  the  than  transformed  into  for  Committee.1^  Labour's  progressive  predominant  a l l i a n c e with  took  bankrupt  provided  ascendancy  socialistic  e a r l i e r were  parties  the  to  And,  which  to  The  by  organizations  return  Executive  background  1924-October  short-lived.  in  the  i t  adopted  constitution  constitution.  more  was  financed  constituency  the  Party  that  in  unions  National  century.  the  remains  is  education,  affiliated  new  trade  political  twentieth  of  powerlessness of  into  This  The  and  constitution  organized  from  and  new  discipline.  of  health  federation  contribution  the  of  later.  inefNo  -  doubt  part  of  its  reforms  new  political  the  at  answer  the  first  party,  However,  other  a  Government  Labour  reformism,  inexperienced  on  the  suggest  might  be  with  -  Labour's  opportunity  arguments  together  limitations  for  66  lies  in  the  Fabian  inability  weakness  administration  no m a t t e r  how  assumption  ability  to  of of  to a  of  implement  relatively  government  experienced  perspective  underlying  Government's  in  the  that  the  its  reluctance or  and  gradualist,  that  there  legislate, will  are  power.  strong piecemeal  no  effective  eventually  under-  12 mine  the  electoral  cycle  develops  toral  support  by  its  l i t t l e --  Fabianism long  to  term  offer  alone  as  of  rule,  two  of  are  Fabianism  Government's  more  which  are  one.  financial notable in  inability  and  assumes  veiw  example, and  and  not civil  the  the  merely  of  the  office  follow  coherent  ideo-  it  aims  state  forces  with achieved  power is  and  vested  within government, parties  judiciary  the  failure: of  from  opposition  In  elec-  argument  leaves  the  by  This  reforming  dramatic  crisis  any  a  to  government  the  service,  provide  failure  sees  of  met  removed  immediate  any  capital.  economic  of  array to  are  measures.  Fabianism  party  perennial  be  its  absence  hostile  which  its  term  to  the  industrial  examples  manage  the  to  Fabianism  ignores  include  reform  from  considers i t s  "naturally"  action, to  the  intrinsic  only  or  Firstly,  Secondly,  These  for  government,  i t  Consequently,  socialist  long  once  This  of  radical,  is  are.  synonymous  depends.  commitments,  fronts.  always  also,  representatives there  by  authority.  but  in  its  electorate  socialist  parliament  myopia  two  society which a  out  Fabianism pledges  Labour  strategy  they  power  omnipotent  on  the  though  capitalist  in  places  reforms  government  let  which  which  manifesto  successful  modest  with  which  carry  condemns or  upon  i n a b i l i t y to  through  logy  in  base  and  the  history  of  Labour  evidence  of  the  the  1929-1931  period,  and  Labour the  - 67 -  1945-1951  policy paralysis after  nationalization The slogan Act"  of  "work  the  Labour  Government's  initial  round  of  legislation.  Ramsey  of  the  MacDonald or  Government  maintenance."  same y e a r  provided  at  of  1929  came t o  Consequently,  its  l e a s t minimal  state  power  partly  on  "Unemployment benefit  its  Insurance  for  the  two  13 million  unemployed.  prevented the  to  impede which ment  the  pressure  for of  downward  were  from  civil  benefit.  At  government  balanced  budget,  of  the  a  unemployment.  market  with  but  forces  at  no  sign  of  By  expenditures  ideas  and  known.  programme  the  low and  of  the  only  As  came  ideas,  the in  to  in  amounts  unemployment increasing  to  cut  the  use  unemployof  necessity of  s i g n i f i c a n t l y , were  to  unemploy-  under  fact,  hold was  hot  1930,  notably  challenge to  seen  time  exception  Treasury  Keynes,  the  enough  end o f  MacDonald  Keynesian and,  levels  s l o w i n g down.  contracted,  the  However,  the  of  a l o n e was  on w a g e s ,  i n d u s t r i a l i s t s and  same t i m e  Party  mechanism which  benefit,  revenues  widely  economic orthodoxy  balanced budget.  servants,  were  Labour  problem of  million  the  liberal  market  pressure of  government  financed  part  the  compatible with  and  the  unemployment  reached 2.5  increased  ment  power  a measure  had  classical  interference with  curative  made  The  loana  constituted  also  adopted  by  14 the  Liberal  Party.  support  for  and  his  inner  the  established financial  Treasury  its  Despite  implementation  circle  of  defended  a v a i l a b i l i t y of  i n s i d e and  outside  c a b i n e t m i n i s t e r s were elites  b u r e a u c r a c y as w e l l  resolutely  the  economic  as  who the  formed private  liberalism  a  a  technical  parliament,  u n w i l l i n g and  raving  of  wild  and  the  sector.  against  what  This one  irresponsible extremists."  and  Prime  unable  p o l i c y community  15 "...the  solution  to  Minister confront  embracing  c o a l i t i o n of industrialist  the  interests called,  -  With of  1931,  fit  a Government  be r e d u c e d  creased, would be  unemployment  have  reduced.  loans  would  mark  i n the  summer  Insurance  proposed  and employment  insurance  contributions  a means  test.  c u t and p u b l i c works  French  be met i t  million  on Unemployment  percent  wages  Moreover, only  the three  as the imposition of their  -  toward  Committee  by twenty  as w e l l  also  rising  68  and U . S .  bankers  the Government  Public  sector  expenditures  insisted that  balanced  were  that  be i n -  workers also  requests  the budget  bene-  to  for  by a p o l i c y  of  16 retrenchment. exhorted all  them  In to  our ideals  preparing  his party  "...remember  unchanged.  that  and supporters  we a r e g r a p p l i n g  We h a v e  not changed  for the cuts,  with  this  our policy;  MacDonald  situation  with  we a r e s i m p l y c o m 17  pel l e d to devise MacDonald unions.  met f i e r c e The T . U . C .  instead  cuts  retician  of  tative With  of  and staunch  Fabianism),  incomes.  ally  referred  non-entities  the bulk  of  the Labour  George  to  to  from  Movement  Labour  the height  of  V and informed  h i s party  the proposed  Webb,  to  parties  the c u t s , of  trade  cuts  demanded  and  incomes,  course,  the  the T.U.C.  as  by f a n a t i c s  alienated  instead  of  and from  fixed  a leading advocate  (and o f  the leaders  dominated  d i f f i c u l t i e s . "  the Party  on p r o f i t s ,  Sidney  MacDonald  i m p l a c a b l y opposed  himself  response At  of  levy  and dismissed the constituency  ministers  the temporary  rejected  a graduated  of  separate  t o meet  Council  groups  binet  in  General  and a l l unearned  proposed  "pigs"  methods  resistance i n the Cabinet,  the imposition  securities  as  special  from  interest of  leading  General  the theo-  Council  "...frequently  unrepresen-  and cranks  and  extremists."  government  and e i g h t  the Prime  formulating  Minister  a new p o l i c y  chose  cato  initiative  opposition. Labour  opposition  him the Government  to  the cuts  might  have  MacDonald to  resign.  saw  King  Later,  the  -  King  saw  leaders  Baldwin, mies  told  would  of  the  prove  both  King  opposition  that  most  69  " . . . i n  unpalatable  -  parties. view  to  of  the  The  the  Conservative  fact  working  that  the  classes,  leader,  necessary  i t  would  be  econoto  the  19 general best  interest  solution,  plement  the  a  they  could  therefore,  cuts,  MacDonald. measures  if  The  or  a  predominantly  would  National  object,  squarely  be  upon  of a  imposed  be  for  Conservative  was  a  Labour  Government."  reconstituted  Government  course,  Labour  a  by  to  of  all  place  leadership.  Labour  three  The  Cabinet  parties  but  c o a l i t i o n government  in  was  by  Conservative  persuaded  August,  im-  headed  responsibility for  MacDonald  to  1931.  to  head  The 20  proposed The  cuts  were  Conservative  before  the  end  then  Party  of  speedily called  1931,  were  implemented  for  a  general  returned  to  and  the  foreign  loans  election shortly  power  with  471  secured.  afterwards,  seats  over  and  Labour's  21 52 a n d  the  Liberal's  35.  The  parliamentary  Labour  Party  working  voters  who.in  290  seats.  group its  class  in  After  1932  departure  after  Fabian  remained  planning, on  as  control a much  the  MacDonald  although  next  the  World  a massive  many  war  so  decade  Great  War  W a r Two  scale.  higher  1929  had  of  therefore,  its  the  years  had  standard  of  i t  I.L.P.  leadership  ignominiously and  had  a half  was  a  very  provided living  the  than  a  rule  left  handful  by  the  in  the  removed  party  government State  of  in  the  providing Labour as  by it  Party  and in  the  economy  working  employment  previous  i t  eocnomic  Under  the  But  office  successful .experience.  during  a  opposition.  social  with  as  Party.  political  intervention  class  with  individuals,  Parliamentary from  of  accordingly  later .rejoined  a minor  involved  and  judged  Labour  members  similarly involved  And  MacDonald  endorsed  debate,  consolidated Fabian  the  of  l e a d e r s h i p was  S o c i a l ism.was  for  Just  and  the  betrayal  full two  decades.  State and The  -  surge  of  war-time  traditional  n a t i o n a l i s m was  political  70  -  maintained  conservatism  and  by  post-war  a demand  for  radicalism  the  against  redistribution  of  22 income the  in  war  the  post-war  economy  found  reconstruction. political  This  expression  in  r a d i c a l i s m and Labour's  1945  the  success  manifesto  of  pro-  23 gramme,  "Let  Us  the  manifesto  and  better  however, Labour  Face  promised  housing  was  The  and  There  173  The  and  returned  well  Health  education.  success. 146  As  National  nationalization,  overwhelming of  a  and  G o v e r n m e n t was  majority  Future."  main  office  were  393  plank  in in  lost  aims  of  the  in  M.P.'s  Social  Labour's  election  their  nationalization  Government  consequence  Labour  Conservatives  its  Service,  largely  to  as  1945  programme,  of  this  stand,  of  that  year  with  an  overall  returned  seats  Insurance  and  with  together  a  with  the 24  Liberals  were  The  able  Labour  suited  to  plines  which  to  field  only  Government  nationalization, could  not  213  members  inherited namely  have  been  in  the  a situation  " . . . a  system  realized  in  of  new  that  House was  wartime  normal  of  Commons.  particularly controls  conditions  and  well disci-  without  some-  25 thing  approaching  retained  after  alization  of  l i t t l e  the  tical  war  State  the  Labour's  enteprise  fact  its  programme  of  public  did  these  and  b u r e a u c r a c i e s was responding  not  to  bodies by  plans.  After  As  ownership the  were  staffed  one  departments"  modification  of  ministerial  operator..  affront  "controlling  without  Labour's  of  so  that  Government  wishes  and  The  utilized  significance for  functionaries to  and The  Coalition  various  machine of  the  revolution."  programme.  Conservative held  a  i t  input  Labour's  designed  by  appointees a l l ,  the  technocratic as  l i t t l e  the  threat  sympathies  nation-  the  wartime  evidently  Fabian  conception  neutrality;  might  happened,,  posed  political  its  in  were  of  a  apoli-  sensitive  nature to civil  and  extent  private servants.  -  Debate to  on  the  form  of  the  1918  constitution.  argued  that  nationalization  side.  But  under be  the  machinery  entrusted  should  professional autonomy control  of was  decrease cause. and  each to  be  because  means Fabian  those  public  for  must  not  simply The  of  instead in  as  the  a means  of  workforce  p r i n c i p l e behind  State ran  Fabian  and  industrial  disputes  with  the  and  would  common  control  Socialism.  intervention  counter  would  administrative  identify  by  by  industries  nationalization  ignored  industry  The  Society")  side  industries  industrial  would  saw t e m p o r a r y  nationalization  which  consumers,  then  State  were  within  if  profit  between  of  back'.  Acquisitive  placing  to  went  c o u l d work  officials.  industry  kind  which  power  state  of  guilds  authorities  adopt  ("The  c o n s i s t of  representatives as  should  Tawney of  e s s e n t i a l , and  this  ownership  of  was  Labour  R.N.  creation  employed  transferring  view  1920's,  the  compromises  Guilds  ownership  State.  function  -  and  consist of  industry  Theoretical  of  the  the  a s s o c i a t i o n s as w e l l  Industrial  view  of  public In  nationalization  71  to  i n c r e a s i n g the  only  the  Any as  a  predominant  efficiency  of  26 total dustry  production were  across  irrelevant  industries. in  the  The  Fabian  relations  scheme o f  of  production  socialism.  within  in-  Thus,  " S t a t e o w n e r s h i p and c o n t r o l r e f l e c t e d the F a b i a n i n f l u e n c e , and i n d i c a t e d t h a t t h e f o r m t h a t p u b l i c o w n e r s h i p was l i k e l y t o t a k e w o u l d be S t a t e a n d M u n i c i p a l , n o t p a r t i c i p a t o r y c o n t r o l by t h e workers themselves."2? However, the  this  whole  tries  does  economy,  only  from  the  not or  imply even  half  incompetence  d u s t r i e s -more  efficient  Labour's  programme,  1945  that  "in. the H.  Fabian  of of  i t .  S o c i a l i s m seeks It  seeks  private  service of  Morrison *  who  instead  management the  to  and  nation."  introduced  state  the  At  ownership  take to  over  make  the  indus-  those  outset  Government's  over  i n of  position  -  on  the  must  issue,  hot  told  the  be a r g u e d  terprise  but  applicable  in  in  as  terms  purely  House  72  of  Commons  that  a  general  socialist  part  of  of  specific  a  -  functional  and  remedy  "...the  for  technical  case  for  nationalization  case against  particular terms  to  capitalist  situations  particular  en-  and  industries  28 and as  services." being  "ripe  And and  and were  grossly  iron  steel,  and  precisely  those  overripe  identified  by  for  ownership"  had  inefficient those  those  industries public  and mismanaged.  i n d u s t r i e s on  which were  for  l i s t  Us  ceased  Indeed,  Labour's  recommended  "Let  with  for  Face to  the  The  be  Future"  profitable  exception  nationalization  nationalization  by  of  were  Conservative-  29 dominated f a c t - f i n d i n g committees of the wartime C o a l i t i o n Government. "From the b e g i n n i n g , the n a t i o n a l i z a t i o n p r o p o s a l s o f the Government were designed to a c h i e v e the s o l e purpose of improving the e f f i c i e n c y o f a c a p i t a l i s t economy, not as marking the b e g i n n i n g o f i t s w h o l e s a l e t r a n s f o r m a t i o n , a n d t h i s was an a i m t o w h i c h many T o r i e s , whate v e r t h e y m i g h t s a y i n t h e House o f Commons, w e r e e a s i l y r e c o n c i l e d , a n d w h i c h some e v e n approved..."30 It  is  economy,to  not  simply  a more  Industrial  accommodate  itself  trial  that  capital.  privately fication  limited  or for  Nor  the  is  is  it  the  i t  that  or  which  democracy w i t h i n the  prevailing  respects  state,  industrial  scope of  socialistic  to  footing  the  Consequently,  by  profitable  nationalization  efficient  democracy.  Fabianism  that  sought  foreboded  system of  control  simple  return  so  badly  capitalist society  fact  ownership.  element  irrespective of  the  to  of  in  the  whether  Britain's against  must The  by  ownership  is  industrial  necessity  problem  industries  ownership  capitalist  of  are  with indus-  owned  sufficient  justi-  oligarchy.  the  action.  heartland democratic  failure A wider of --  of  Fabianism  reaching  manufacturing though  i t  lies  in  programme industry  would  its of  nationalization  would  certainly  (self-imposed)  not  make  be more  i t  any  into more  controversial.  -  H o w e v e r much  Fabianism  characterized monopolies  for  of  production  of  Fabian  in  Labour's  the  however  programme  same The  to  head  were  of  members  of  five  the  in  Boards  of  of  the  Boards  had  And  the  hierarchy  series of  largely  authoritarian  the  Meiji  would  public  Coal  their  occur  seven  nationalized  above  the  the  in  on  a  the  were the  state  relations  the  dynamics  masses.  the  among  former  Boards  concerns. of  almost  leading  And  private  1951,  trade  in  the  nationalized only  forty-eight  their  without  figure of  By  i n d u s t r i e s were  trade ^unionist  remain  happened.  B o a r d was  bought-out and  touching  corporations  Directors  would  Restoration,  similar positions  members,  no  without  p r e c i s e l y what  Britain.  the  it  like  National  full-time  capital  monopolies,  new  held  from  private  ranging,  is  the  the  recruited  forty-seven  this  who  a  Thus,  wide  head  people  of  private  industry.  c o l l i e r y company  industries  and  within  1945  industries.  the  series of  -  expropriate  substitution  men c h o s e n  exception  of  a  the  reformism,  The  largest  by  might  73  nine  part-time  unionists,  full-time  metnbers.at  31 a l l . each  industry  The  so-called  and  these  but  to  the  issue  of  I  the  in in  i t  would  be  hence by  were  by  almost  to  from  of  the  national  functionaries appointed not  to  taking workers  impossible to  the  large  have  to  the  local  previous  responsible  labour  Sir  the  down  of  force  Stafford  "...there  over of  by the  Parliament.  declaring that  capable  experience  the  be a n s w e r a b l e  1946  Britain  on  managers"  and  October  management  heavily  would  minister,  been more  think  "expert  managers  workers  has  depended  of  is  in  yet  owners.  industry  a  concluded large  enterprises...until  managerial worker  side  controlled  of  in  minister,  Cripps  not  level  number  there  industry.  industry  in  32 Britain, By  even i f the end  i t of  were on the w h o l e d e s i r a b l e . " 1948, the L a b o u r Government had  passed  into  legislation all  -  the  major  except and a  nationalization  for  iron  steel  Government, would  l i s t  of  instead  industries  opposition  and  of  in  amendments  -  contained  Significantly,  serious  threat  duringthe  of  been  nationalization of  a  industry  have  proposals  steel.  presented  profitable  tion  and  74  to  post  nationalizing  least for  public control.  iron  and  steel  from  Commons, the  from  House  of  the  Lords,  private  left  ripe  the  the  f i r s t  had  which  its  manifestos  of  of  sector  remained  all  iron  since i t And  when,  and  i t  happened,  emerged  in  1951  to  Service,  the  extent  the in  steel  As  Civil  programme,  nationalization  reconstruction.  this  effective,  only  the  war  in  Labour  1945,  last the  on  its of  the  industrial its  opposi-  form  suffered  that  iron  ravages  management  denationaliza33  tion the  by. t h e Labour  gramme or  to  it  was  1948  Conservative  Government  in  at  the  Government  1948  nationalization  stop  the  bankrupt  consolidation.  simply  did  not  and was  devoid  piecemeal  know of  reform,  into  industries  for  what  More to  was  problem  extending  time  ideas dual  of  next  do  strategy.  was  whether  major  and  public  next.  The  had  left  tinkering  to  centres  accurately,  It  "...social  p a r t i c u l a r l y easy. go  of  Labour  Labour  Party  the  what  Labour  proindustry  decided  Government had  Fabian  was  for  a  profitable  the  with  on w i t h  utilities.  only  But  seen  run  after  out  of  notion  of  as  accom-  the  gra-  34 plishment of socialism." C o n s e q u e n t l y , L a b o u r ' s 1950 e l e c t i o n p l a t f o r m m e r e l y s t r e s s e d i t s p o s t - 1 9 4 5 a c h i e v e m e n t s and warned a g a i n s t t h e i r undoing 35 should waged  the the  beyond able and  be  e l e c t i o n campaign,  that  to a  Conservatives  do  half.  of but In  providing with the  its  elected. as  Hobsbawn  M.P.'s  a majority e l e c t i o n of  It  in  with  would  suggests,  "...for  ministerial  parliament  the  seem t h a t  following  of  only  year  the no  posts." six,  the  and  Labour other This for  Party  reason i t  only  Conservatives  was a  were  year  -  returned  to  The  power  previous  Labour  which  Fabian  socialism,  are  Nationalization form  given  to  industrial had  tion the no  legal  in  alone  has  end  of  of  decide  producers  t i o n . . . "  it  should  devolve  over  Without  the  l i t t l e  meaning  spread  worker  for  to  World  industry.  questions  means  the  of  or  power  an was  However,  exercise  control  to  production.  This  relations  of  production,  in  the  and  Topham  nationalized  to  in  since  the  do  the  with  work  of  precondito  legislate  state  "...has  over  produc-  control  while  separation  state  concrete  required  producers  to  Coates  the  essential  direct  the  even  nationalization  notably  as  of  democracy.  whatsoever  most  intrinsic  producers.  demoralization  State  And  permanent  War,  of  industrial  has: n o t h i n g to  weakness  failure  socialim.  nationalization  industrial  inherent  perennial  do w i t h  industry.  structures  socializing  saw  the  p o s s i b i l i t y of  First  private  to  control  the  Fabianism  the  alternative  expropriation  monolithic  by  mid-1960's.  highlight  for  future  l i t t l e  s o c i a l i z a t i o n of  ownership  the  Fabianism  any  claim  formal  until  Socialist alternatives  the  This  -  responsible  itself  since  the  of  primarily let  remain  nationalization  Cole.  for  they  examples  democracy.  existed  G.D.H.  where  75  retaining  avoids  the  nationalization.  have  nationalization recorded  industries  the  from  holds  wide-  the  unfulfilled  37 expectations with  the  vacuity  Fabianism  finds  toward  only  is  its  own  in  the  state  seated  in  of  a  new w o r k e r of  its  policy,  system  1931.  goals, By  and  These  under  demolished  justification.  immediate undoing.  status  then  By  the  public  electoral  proceeding  stumbling,  elites  upon are  their  not  support  neutral;  and  role, to  advice,  This, from  empirically,  reacting  a s c r i b i n g an a p o l i t i c a l acting  ownership.  Fabianism  "...they  which  advancing  trimming,  the  together  Fabianism  administrative was  similarly  reinforce  the  elites un-  conservative  - 76 -  propensities developed,  of  government  and  serve  as  in  an  which  these  inhibiting  propensities  factor  in  are  regard  already  to  well  governments  in  38 which only and  they  are  become  a  only  sistence form  of  vailing the  and  any  part  efforts seems  term  of  industrial  view  Labour  servatism  of  the  the  of  Labour  Party  distant.  for  The  Party  the  reform  ownership  and  administration.  state  industrial  in  power,  democracy  industrial  of  in  industry  So  as  governments can only  of  ,the  an  most  the  confront  in-  suitable  feasible.  reinforce  ab-  dogged  remains  not to  the  the  this is  for  Fabianism  provides  long  future  and  can  parliament,  analysis  control  democracy  bureaucracies  a  preceding  identifies  successive Labour  various  if  l e g i s l a t i v e c a p a b i l i t i e s of  Labour  thinking,  failure  the  the  least  state  popular  persistent  by  strategy  selective  of  Therefore,  of  at  ideology  long  that  in  the  industry  development of  pronounced."  reality  through  democratic  sence  less  preAnd,  the  Fabian  Conhesi-  tancy. As continue trial cle of  far to  as  the  in  terms  geographic vided  by  unions  the  to  do  the  ideology. able  to  Bullock  to  the  particular differing as  endorse  collective  Report  to  be  a  concerned,  a single, Union  unions  findings  unified  always  of  the  bargaining. positive  over been  development, pointed  move  On  to  main  out,  the  towards  The  the  divided their and  indus-  first  obsta-  question  from  each  members,  above  Report  left,  real  whole  some  Bullock  obstacles  demand  voice.  a n d - s k i l l s of  historical Three  two  labour  Movement  have  functions  Chapter the  is  move o r g a n i z e d  Trade  Trade  Thus,  traditional  Movement  so w i t h  within  democracy. of  Union  attempts  separation,  were  preferred  and  disunity  industrial  other  Trade  frustrate  democracy,  is  felt  the  a l l ,  their di-  conservative while  certain  industrial  others  unions  democracy  -  whilst  equally  management, control. between and  them. to  be  defend  role  any  boardroom  complete  independence  and  a  this  division  is  an  not  uncommon  to  find  It  is  at  odds  the  expected  with  'public  the  refused  a more  Miliband  capitalist  sectional  by  sibly,', in  in  -  have  administration.  ambiguous  unions  i n s i s t i n g on  Moreover,  f i l e  union  militant  77  pronounced a more  moderate  argues  opinion,'  These members.  and  often  required  generally  of  in  the  occupy  the  it  is  rank of  profoundly  expected "...they  state  means  as  executive  a  are  with  encroaching  left-wing  However, by  dialogue  unions  militant  leaders  their  which  within  leaders  of  interest,'  policy  leadership  union  societies.  interests  'national  to  to  that  to are  act  they  also  'respon-  should 3'  curb  and  These  subdue  their  environmental  members'  demands  influences  rather  bring.us  to  than  the  defend  second  and  advance  obstacle  to  them."  industrial  democracy. Historically, capitalist of  trade  ownership  of  capitalist control  face  of  legal  Acts  in  1825  radicalism  and and  union  the  of  g a v e way  instruments  industry.  physical the  of  Early  repression.  formation to  development  of  a  labour  not  but  to  movements  the  unions  of  response  production  After  craft  accommodation  is  in  repeal the  capitlaism.  merely the  all  of  to  organization  failed  the  these  the  Combination  mid-nineteenth And  in  century,  unions  " . . .  40 were  extreme  only  sanctions  on  in  with  unions  tancy as  of  the  pulsory  the  craft  in  trade  their  unions  caution  stimulated  predominantly  new  unions  unions.  recognition  radical  subsided  And most by  and  unions  as  mass  they  the  The  recruitment  leaderships.  important of  moderation."  became amongst  inalienable  of  lifting  unskilled  However,  subject these right  of  to  the  of  workers  early  similar  pressures  mili-  pressures  was  capital  legal  to  the  com-  organize  -  and  control  trade the  unions  point  system.  has  The  therefore  When  accepted  has  become  developed  of  to  the  their  formalized  in  custom  and  existing  immediate  functions  or  less  grievances  even  character.  structure, than  and any  unions  to  the  of from  contours  c a p i t a l i s t control of  conflict  bargaining  a  framework  trade  moulding  This  " . . . i s  institutions,  the  of  of  articulated,  rather  within  institutions  practice,  power  social  structure  acceptance  the  openly  legitimate  and  union  problem-solving  through  modation sion  or  as  a more  Trade  industrial;coriflict is  integrative  -  development been  capitlaist industry.  industry  an  Once  necessarily defined  existing  this of  industry.  78  resolution.  takes  collective  process  of  involves attempt  the  to  of  place  with  bargaining,  defensive  accom-  relief  suppres-  tackle  or  the  underlying  41 cause  of  workers'  moderation  and which  and  goodwill  and  stability  few  unions  the  existing  from of  power  unions  When  miners'  ment,  the  taking  pressurize reform. concerned  with  description.  and  to  the  policy  to  strike  avoid of  remained  trade  marginal  of  of  content its  Labour unions,  with  success  and  not  the  seriously  question  the pay  it  overwhelming  therefore,  still  of  downfall award  act  wages,  security  of  remain  traditionally  the  demanded public  almost  that  challenge  control  immediately  work  the  s u r p r i s i n g then  and  by  acquiesience  enhances  strong  to  like  this  gains  Even  Government  improvements  quo  to  in  the  characterized  designed  fundamental  resulted  and  perhaps  industry.  the  1974  is  union  status  state,  an  operational  trade  the  It  incoming  British  threat  the  organization.  opportunity the  no  employer  structure  tend  N.U.M.  the  the  Moreover,  exhibits  both  construct  militant the  problems."  of  Heath  Govern-  rather  sympathy on  industry.  than to  industrial  exclusively  conditions  and  job  -  79  -  " T h e y do n o t a t t a c k . t h e h i e r a r c h i c a l nature of the company, the extreme d i v i s i o n of l a b o u r , and the m a s s i v e i n e q u a l i t i e s o f financ i a l reward., s t a t u s , c o n t r o l and autonomy i n w o r k . N e i t h e r do t h e y t r y t o s e c u r e a f o o t h o l d i n t h e m a j o r i t y o f d e c i s i o n s made w i t h i n t h e o r g a n i z a t i o n on s u c h i s s u e s a s management o f o b j e c t i v e s , markets, c a p i t a l i n v e s t m e n t and r a t e o f e x p a n s i o n . V e r y r a r e l y do t h e y serio u s l y c h a l l e n g e such p r i n c i p l e s as the t r e a t m e n t ' . o f l a b o u r as a comm o d i t y t o be h i r e d o r d i s c a r d e d a t management convenience."42 Trade  union  tween  the  interests  capitalist control  organization,  control.of  this,  necessarily  capitalist tive  labour  the  the  management. not  As  only  every  trade  general  unions working  contract Two,  to  topics  of  were  of  collective bargaining  on  as  these  able  to  and  assertion  that  that  prior  just  threatened  by  during  strategies  the  the law  unionism  of  expand and  was  with  the  areas  from  the  and  the  first  half  one  might  First  World  courts,  the  the  element  in  well  the  no  have  to that  unions  from  does  to of  but  collec-  also  management, of  two  and  World  from  wages  acceptance  of  the  employ-  By  of  the  World  the  end  encompassing  level.  In  twentieth  this  hope  for  agreed  with  Hugh  Indeed,  existence  of  when trade  a  multi-  respect  century  control  limit.  very  successes of  trade  negotiation  national the  aid  establishment  practice  of  a mere  impetus  of  workers'  knows  War  of  rights.  local  encroaching  the  simple  established  as  footing  And  at  decades  out  independent  collective bargaining to  trade  compensation  negotiated  formative  an  negotiation.  pension  and  of  legitimacy  conditions,  bargaining  effect  During  an  be-  opposition  posture  the  collective bargaining  collective same  in  serve  confirmed  level  of  as  antagonism  to  pointed  at  tude  the  come  Two  did  War  have  from  particularly  Chapter  organizations  ment  may  history  workers'  to  c a p i t a l , and  accommodative  placed  Wars,  and  industry,  condemn  bargaining  so  h i s t o r i c a l l y emerged  structure.  Despite not  of  which  had  the  today. Scanlon's considering unions  collective bargaining  was  during  -  the  following  three  However, significantly fact, more The  been  decades  since  the  widened  material Wilson  benefits  Governments  collective: bargaining individual  trade  made  by  the  This  "Social  negotiate of  of by  unions  T.U.C.  and  Contract"  with  mous  trade  the  agents  their the  singly  with  national first  their  of  and  found  was,  of  this  of  threatened  by  absorption  over  from  the it  into  did  quite  the  so  unable  and  unions  to  were and in  statist  And  organized  to  achievements  bargain  of  as  indi-  autono-  policed  autonomous  orientation  1970's  direction.  expense  latter  the  labour  vigorously  the  in  of  agreements  the  the  secure  concept  union  of  in  negotiation.  whole  and  at  to  national  pinnacle  legitimacy  trade  wages  nationally  perhaps,  the  of  not  has,  unions  areas  by  has i t  wage.freezes.  dissipated  employers,  century,  enabled  existing  compulsory  themselves  half  1950's  from  ironically,  Thus  determination;  s e r i o u s l y weakened  power  respective  leadership.  the  Government  the  But  of  self  autonomy  Labour  marked  who  1960's  their  collective bargaining  labour  workers  a series saw  War  affluence  the  government  unions  for  their  collective bargaining.  vidual  in  for  impressive.  World  scope  The  -  most  Second  the  undermined.  are  80  by  development  half of  seem  increa-  Labour  Governments. The period  no  democracy the  height  before  the  shortcomings doubt by  go  trade  of  the  preserved  the  difference  to  traditional  some way unions social  Bullock  was  of  contract  extent  between  explaining  during  Report,  the  in  the  collective bargaining  the  when  bargaining  one  sudden  mid-1960Js. trade  traditional  that  the  sanctity  wonders  with  interest  Yet  unions  a  decade  queued of  whether  management  in  and  to  the in  give  the  unions  war  industrial  later  collective  trade  post  and  at  testimony bargaining realized  possibility  of  -  industrial  labour  exercises might  have  when was  its  clear  function.  been  trade  assuming  And  persuaded  unions that  for  warned  the  the  criteria  outset  arguments  against  traditional  -  itself  at  by  81  at  for  full  was  which  least,  interferring  management  by  Royal  electoral  with  to  the  management Commission  management,  collective  remain  a  but  bargaining  sizable  i t  established  fact. Industrial trade and  unionism  democracy,  provided  organizational  industrial  democracy  does  in  this  relations  in  industry.  not  of  be  work  external the  imposed  by  to  labour  responsible  to  ownership,  general  control  tionary  proposal  the  does  not  traditional  working  lives  was  grasped  not  Consequently,  Authority  the  cherished  of  all  levels.  control  the  by  of  of the  of  production.  challenge that  the  Trade  Bullock  the  But  held,  This  of  private  confers  the  it  a  throughout set  of  is  control  as  would  interests  be  selfanswerable And  revolu-  but  control  ownership  and  Bullock  proposals  from  Industrial  property to  would  divorced  not.  a  of  seem a  the  type  authority  be  may  what  the  electorate.  right  d i s t i n c t i o n between  produced  of  would  would  existence  Movement  precisely  exist  this  workers  fact  Union  structures  capitalist  still  in  This  report  of  though  ownership  is  democracy  factory  distribution  unionism,  the  elected overseers,  privately  trade  this  contemporary  representatives  over  medium  membership  But  course,  enforced  and  to  dismantling  w i l l ,  or  modifications  industrial  the  at  of  unions.  Full  for  goal  or  producers. by  a  state  premise  of  trade  through  whole  is  require  require.  whether  to  of  workers,  the  and  not  authority  itself  general  democracy  does  Management  the  factory.  seems,  provides  administrative  outside  and  i t  procedures  conceived  chain  i t  which  rejects the control inquiry. would  -  add  confusion  society.  The  portion are  to  of  the  would  efficacy  of  this  ment w h i l e the  report  ment  of  democracy the  error  lies  achieved  to in  in  in  m o c r a c y was  not  the  vote.  develop  The  by  effect.  sured  numerically  likely  A minority  reinforce  private  on w o r k e r  directors  control  and  Bullock  model  did  and  The  trade  would  is  are  industrial  democracy  realm.  political And  this  The  democracy is  assumption  the  of  in  until  (after  this  argument  political have of  by  by  reconstituted  industrial  is  p r e c i s e l y the  the  industry  abide  thirty  to  that  democracy.  workers'  of  and  A  a  full  century  years  of  strategy  board would, "regain  by  given cannot by  intended  or  boards  sharing  would."...involve  an  and  obligations  representatives erode  sup(as-  institutionalized  therefore,  control  democra-  suffrage  placing organizational the  de-  of  company  by  fully  democracy  on  would  the  be  age were  industrial  its  franchise  of  representatives  by  refer-  political  its  d e c i s i o n s made  democracy  a l l ,  of  element)  with  can  industrial  de-  develop-  However,  opposite  Y  the  serious  peppered  we  manage-  the  democracy  the  After  twenty-one  more  analogy.  suffrage. 1928  indeed,  with  follow  is  sizable  justification for  industrial Britain  bargain  can  industrial  successive extension  a  acknowledge  Another  a commendable that  to  to  report as  capitalist  constitute  difficult  unions  in  be m a i n t a i n e d ;  that  e n a b l e management of  i t  unions  would  itself.  socially  control to  workers  management  problem with as  if  trade  of  women.between  would  capital.  the  Yet  political  of  achieved  posed  vate  the  universal  partially  installments  part  report.'s  stages  when  reality  industry.  culminating  tization)  in  assumes in  the  while  strengthened.  existence  application  that  collective bargaining  constituting  in  to  be idea  fect  ences  proposes  management,  i t  -  h i s t o r i c contradiction of  report  told  82  back  i t . "  of  to  priprivate  Thus,  absorption  the of  -  workers' ding.of into  representatives these;  existing  it  would  economic  into bring  and  83  -  c a p i t a l i s t forms about  social  a more  relations 43  alteration  in  the  capitalist  system."  of  control,  effective rather  not  a  integration  than  produce  transcenof any  workers basic  -  CHAPTER  FOUR  84  -  FOOTNOTES  1.  R.H.  Tawney,  The A c q u i s i t i v e  2.  C a r o l e Pateman, P a r t i c i p a t i o n and Democracy T h e o r y , C . U . P . , Chapter 4 , " P a r t i c i p a t i o n " and "Democracy" i n I n d u s t r y .  3.  Perry Anderson, "Origins o f the Present C r i s i s , " i n P. Anderson:.and R. B l a c k b u r n , ( e d s . ) T o w a r d s S o c i a l i s m , C o r n e l l U n i v e r s i t y P r e s s , 1966, p. 2 1 .  4.  Tom N a i r n , " T h e N a t u r e o f t h e L a b o u r Towards S o c i a l i s m , p . 161.  5.  John S a v i l l e , "Labourism and t h e Labour 1967, M e r l i n P r e s s , p p . 5 4 - 5 5 .  6.  Tom N a i r n , - t o w a r d s  7 . ;. •'.  Tom F o r e s t e r , p. 31.  8.  Anthony Fenley, "Labour and t h e Trade Unions" The L a b o u r P a r t y , Longman, 1980, p. 57.  9.  Ralph  Soc i a 1 i sm,  The Labour  Miliband,  Society,  Party  Parliamentary  Fontana,  Party"  1961.  i n Anderson  Government"  1970  and Blackburn,  Socialist  Register  p . -166. and the Working  Class,  i n C.  Socialism, Merlin  Heinemann,  Cook  Press,  1976,  and I.  1973, p.  Taylor,  61.  10.  Ibid.,  p. 6 0 .  11.  T h e now f a m o u s C l a u s e 4 o f t h e L a b o u r P a r t y C o n s t i t u t i o n a i m s "...to s e c u r e f o r t h e workers by hand o r by b r a i n t h e f u l l f r u i t s o f t h e i r i n d u s t r y a n d t h e m o s t e q u i t a b l e d i s t r i b u t i o n o f t h e r e o f t h a t may b e p o s s i b l e u p o n t h e common o w n e r s h i p o f t h e m e a n s o f p r o d u c t i o n , a n d the best obtainable system o f popular a d m i n i s t r a t i o n and control o f each i n d u s t r y and s e r v i c e . " - - cited i n Miliband, Pariiamentary Socialism, p. 61.  12.  R. M i l i b a n d , P a r l i a m e n t a r y S o c i a l i s m w i t h R. C a p i t a l i s t Society, Basic Books, N.Y., 1969.  13.  R.  Miliband,  14.  R. L. in  A l f o r d "Is Democratic Control o f C a p i t a l i s t Economics P o s s i b l e ? " i n L i n d b e r g , R. A l f o r d , C . C r o u c h a n d C . O f f e , S t r e s s a n d C o n t r a d i c t i o n Modern C a p i t a l i s m , L e x i n g t o n , 1975, pp. 23-26.  15.  Miliband,  Parliamentary  16.  Ibid.,  172.  p.  Parliamentary  S o c i a l i s m , p.  Socialism, p.  M i l i b a n d , The S t a t e  i n  164.  163.  - A 84  17.  Ibid.  18.  Irving Richter, Political London, 1973, p. 131.  19.  Miliband,  20.  R.  21.  Miliband,  22. -  Ibid.,  23.  The p o l i c y document c o m m i t t e d t h e n e x t L a b o u r Government t o t h e n a t i o n a l i z a t i o n o f a s p e c i f i c l i s t o f i n d u s t r i e s ( r a t h e r than an on-going programme): The Bank o f E n g l a n d , t h e f u e l and power i n d u s t r i e s , i n l a n d t r a n s p o r t , i r o n and s t e e l and l a n d - - t h e s e were i n d u s t r i e s w h i c h w e r e s a i d t o be ' . ' i n e f f i c i e n t a n d f a l l i n g down on t h e j o b " and as s u c h , " r i p e and o v e r - r i p e f o r p u b l i c o w n e r s h i p and management in the d i r e c t s e r v i c e of the n a t i o n . " The r e m a i n i n g e i g h t y p e r c e n t o f i n d u s t r y was t o be l e f t i n p r i v a t e h a n d s . D a v i d C o a t e s , The L a b o u r P a r t y and t h e S t r u g g l e f o r S o c i a l i s m , C . U . P . , 1975, p. 4 3 .  24.  Miliband,  25.  Aneurin Bevin, for Social ism,  cited in p. 44.  26.  D.  Labour  27.  Ian The  28.  Miliband,  Alford,  p.  Coates,  Parliamentary "Democratic  in  Trade  S o c i a l i s m , p. Control  Parliamentary  of  176  Unions,  (Miliband's  Capitalist  S o c i a l i s m , pp.  Allen  and  Unwin,  emphasis).  Economics?"  pp.  23-26.  193-196.  274.  Parliamentary  The  Taylor, "Ideology Labour P a r t y , p.  Ibid.  30.  Ibid.,  31.  D.  Coates,  32.  R.  Miliband,  33.  See  Miliband,  34.  Tom 28,  N a i r n , "The N a t u r e Nov.^-Dec. 1964, p.  35.  R.  S o c i a l i s m , p. D.  Coates,  Party and 10.  Parliamentary  29.  p.  Purpose  and  285.  The  the  Labour  Struggle  Politics;"  in  S o c i a l i s m , p.  Party  for  C.Cook  and  the  Struggle  S o c i a l i s m , p.  and  I.  48.  Taylor,  279.  288. Labour  Miliband,  Party  and  Parliamentary Parliamentary  Struggle,  S o c i a l i s m , p. Democracy,  of the 38.  Parliamentary  p.  Labour  49. 289.  pp.  310-322.  Party:  S o c i a l i s m , p.  308.  II"  New  Left  Review,  -  85  -  36.  E. H o b s b a w n , "On P a r l i a m e n t a r y December 1961, p. 6 5 .  37.  K. p.  Coates 110.  38.  R.  Miliband,  39.  Ibid.,  40.  A.  41.  Tom C l a r k e , " T h e r a i s o n d ' e t r e o f T r a d e U n i o n i s m , " i n Trade Unions Under C a p i t a l i s m , , H a r v e s t e r P r e s s , 1978,  42.  Alan  43.  Tom C l a r k e , " I n d u s t r i a l D e m o c r a c y : of Industrial C o n f l i c t , " i n Clarke C a p i t a l i s m , p. 375.  p.  and  Topham,  State  and  The  New  Unionism,  Capitalist  Society,  New  Left  Peter  p.  Review,  Owen,  No.  London,  12,  1972,  120.  158.  Flanders,  Fox,  T.  Socialism,"  Trade  Unions,  Hutchinson,  Man M i s m a n a g e m e n t ,  1970,  Hutchinson,  1974,  p.  13.  p.  C l a r k e and pp. 15-16.  Clements,  16.  The Institutionalized'Suppression and C l e m e n t s , Trade Unions Under  - 86 -  CHAPTER International  Although Britain, other  this  i t would  countries  remaining  pages  and  in Allende's  its  trade  union  Solidarity ture  or  been at the  and  major elects  the  policy  appeals annually  It  (CFDT) will  democracy  'work  in  the limits  the internal and appoints  by referendum  items  decisions  by t h e workers'  general  or that  made  in  and  conclusions  in in  respect  Socialist  strategy;  has l i t t l e  developed  1950's,  the  Yugoslavia Party;and  Poland's  as to  which  comprises  labourers,  prescribed structure individual  to  previously council.  It  i t  do w i t h  the f u -  Each  a l l those  the unit,  managers.  assembly.  equal  i s elected  made. deals  The with  current  rights  as rules  decides  on  collectivity  rules  'management  has  c o l l e c t i v e !•:  annually)  by l a w , and o t h e r  has  in  adopts  further  The work  unit  working  elects It  under  enterprise  producing  and each w i t h  of  private  i n the U.S.S.R.  law the c o l l e c t i v i t y  (50% o f w h i c h  reserved  to  the self-governing  in Yugoslavia.  at a general  'workers-council' issues,  to  of  " In t h i s  ruling  control  enterprise  activity  managers  to attempts  self-management  France's  offer  democracy  Britain.  collectivity'  from  bodies  against  also  the early  economic  of  on worker  i n the West,  Since  defines  issues  the position  worker-managed  of  Within  management  all  Chile;  planning.  plans,  reference  o f worker  enterprise  members.  some  industrial  the forms  outline  affiliate  enterprise,  without  with  will  Yugoslav  a  concerned  self-management.  The  i t s base  is primarily  Conclusions  of worker  Movement.  the basis  and General  i n the f i e l d  industrial  central  Perspectives  be i n c o m p l e t e  of  public  work  FIVE  to  with  including  board1  issues  deal  also  of  is a  elected general  nature  and  include  the  87  s p e c i a l i z e d boards  or  such areas  services, varying  as  grievances  degrees  management the  -  of  board  'executive  tenure  current  repeated large  the  committees,  on  three  the  The  the or  of  appointed and  size four of  of  these  of  the  the of  The the  tier  only  by to  workers'  position  process  of  is  to  the  posses and although  council.  This  The  executive  bodies  and  accountable  decentralization  self-management  directly  social  management,  c o l l e c t i v e management this  These  council  reappointment.  enterprise  become  law.  housing,  workers'  higher  extent  structure  smaller self-management  workers  by  s p e c i a l i z e d bodies The  of  open  required  investment,  members  is  holder  council.*  dozens  hundreds  all  decisions of  workers'  depending  with  year  business.  concerns,  Together  appoint  four  the  Each  as  decision-making.  is  implements  to  in  committees  discipline,  like.  director'  director  time  the  together  has  any  and  autonomy  position  directs  a  employment,  -  bodies  may  that  may  and  at  in  be  be very  found.  specialized  associated with  management  2 activities  from per  in  any  large  The  economic  the  following  capital  firm.  performance  of  statistics.  growth  of  self-management In  i n c o m e was  the  period  2.3%.  In  in  Yugoslavia  1950-1964  Yugoslavia  the  can  world  during  the  be  seen  average same  period  3 the  figure  was  6.8%  tral  was  for  the  planning Since  creasingly  the  the  The period  average  rate  1960-1968,  of  growth  of  compared  with  1961  1965,  Gross  2.3%  National  for  the  Product  period  of  cen-  1947-1952.4 economic  followed  Inter-regional of  7%.  a  reforms  strategy  differences  strengthening  of  have  market  of of  and  optimizing  Yugoslav  returns  increased throughout forces.  on  planners  invested  the  M i d d l e management  economy has  have  i n -  capital. as  a  greatly  result expanded  -  with  the  writers which  need have  is  to  respond  argued  quickly  this  predominantly  88  -  and  influence  development.tias  authoritarian,  market  produced  as  well  as  conditions.  a management a decline  Some  structure  in  worker  5 participation this  trend  crease  in  away the  committees increase  in  increased  since  attendance  from  the  of  than  banks  social  1971,  the  and  in  sion-making  below  the  of  producer  autonomy.  in  economic  decision-making  the  givers,  of  national  the  level  Although is  point  it  of  has  of  cyclical  on  and  the  an  in-  specialist that  the  sovereignty Moreover,  commercial  in  political  declining  Finally,  economic  question  the  the  criteria  producer.;autonomy.^  Communists  that  is  worker  suggest  by  and  profits.  called into  argued  offset  criticism  of  constrains  Others  labourer  operating  League  is  been  undermines  repatriation  further  revitalization  meetings.  associated  Yugoslavia  credit  imperatives  of  Another  allows as  council  decision-making.has  firms.  investment  decisions of  workers'  organizations  larger  foreign  role  at  democratic  number  in  in„control  rather  and  deci-  security  intervention  role  of  central  o administration  has  the  incompatibility  are  considerable.  vage  between  organized ments  of  of  on  Party,  centralism The  requires  that  factions,  whole  argues  decentralized  self-management  lations.  the  democratic  Selucky  Communist  democratic  of  the  been  is  in a  preservation democratic  linear,  c e n t r a l i s m and the  all  informal political  contradiction of  the  to  at  and  the  contradicts  p r i n c i p l e of  all  allow  levels  from  the  of  clea-  hierarchically formal  arrange-  institutions.  self-management  to  stressing self-management  suffers  economic  abandoned  participation  industrial  economy  and  arguments  system  power  democratic  c e n t r a l i s m be  d i s c u s s i o n and  Yugoslav  self-managed  whose  other  horizontal  Thus, re-  self-management for  the  freedom  politics.  This  -  does  not  necessitate  on e x t e n s i o n national worker  of  levels  economic occured  still  producer  continues  since  at  the  to  be  level  after  1970  worker  tical  agenda  the  "social a  with  area"  programme  the  in  Unity,  heights"  the  October  powers.to  long  doubt  term  while  the  Allende  period  of  scheme  taken  in  be  of  compatible problems in  stability  with  which  industry  and  political  to  over  of  victory  worker the  by  the  to  economy.  create over  Allende  had  toward  socialization of  a  strength  put  vitality  organization  in  industry.  expand  253  congress It  also  With  the  1960s  when  item  remained  However, on  the  poli-  Allende's  state  sector  to  include  was  be  the  the  conditions in  been  the  for  socialized bill  enteprises.  The  impede  managed  to  by  most the  asking  end for  political  Allende's  the  launching  economy's  a government  to  exception  Allende.  enlargement  had  its  several  employees.1^  decision-making  forward  before  participation  Salvador  firms  form  as\a major  necessary  further  any  late  their  This  the  Thirty-seven  opposition  of  in  1970-1973.  1924, up  proposed  nationalize  sufficient  to  and  and  example  imperative  the  existed  had  1 1  1971  provincial  organizational  hardly  workers'. control  In  itself  democratic  the  in  regional,  Chile  "...would  of  the  despite  electoral  enterprises."  executive  And  in  decision-making  authoritarian.  the  important 1970.  shown  firms.were  which  of  largely  the  of  s y s t e m p r o v i d e s an  p a r t i c i p a t i o n was' i n t r o d u c e d  Popular  "commanding  Yugoslav  collective bargaining  bankrupt  equality  has  remain  profit-sharing of  The  However,  during  but  p r i n c i p l e to  :mid-1960s»  profoundly  ostensibly  the  the  participation  national  Party,  which  intact.  flowering  a  government.  autonomy w i l l  Worker  of  of  -  system  participatory  development.  remains  brief  the  a multiparty  self-management  rapid have  of  89  moves  'Contraloria,'  -  an  institution  whose  executive  branch.  the by  issuing a  same m o n t h put  would of  make  banks,  vetoed from  253  large  Democratic throw  of  office  but  91.  to  intervention  not  Party  broke in  social  watch  able  wide-reaching  before  to  had  and  force  and  by  1973.  the  other  reducing  grown  override  signed  the  the  all  cabinet.  bill  reform  of  between  to  and  June  by  encompass.50  on  the  only In  the  opposition  proposal  firms  Unity  judgement  Contraloria  his  return  list  However,  to  pass  monopolies.  Popular  down c o n t i n u a l l y  area  and  nationalization  between  September  over  constitutional  firms  Negotiations  Allende  the  was  -  insistercia,'  distribution  bill  to  was  Hamilton-Fuentealba  executive  the  de  Allende's  the  i t  Allende  'decreto  as  forward  purpose  90  which  private  ownership  Allende  promptly  for  the  1972  socialization  Christian and  the  over-  Allende's  last  of  manufacturing  the  74  month  in  12 firms  on The  the  l i s t  for  framework  socialization.  for  basicas  de  was  administrative  the  tives, state were  state  preside  elected  re-election  in  and  assembly  was,  blies Each  which  council  o v e r .the  and  once.  therefore,  process.  assembly  one  at  the  the  and  different  e l e c t e d and  of  five  council.  vote.  grass  was  administrator  accountable  monitor  Chile  composed  assembly  a majority to  Also  represented  general  They were by  was and  in  known  d e c i s i o n - m a k i n g body  administrative  workers'  removable  sectional  superior  representatives  the  only  assembly  ticipatory  participation  p a r t i c i p a c i o n . The  five to  worker  at  The  control roots  any  all  its  normas  enterprise  by  the  representatives  year time  terms to  of  other were  the  representa-  appointed  function  level  production  removed  two  an  worker  Worker  for  in  as  respective  the the  open  general in  the  sectional of  to  general  groups  the  functions  --  the  par-  assem-  firm.  production  committee  -  91  -  members.^ Trade Union to  unions  were  o f f i c i a l s were  either  unions  the  were  not  to  in  normas  throughout  defending  terprises trial  of  the  in  social  production  area,  area  and  on  worker  and  the  force  for  new m a n a g e m e n t  of  committees.  and were  around  thirty  those  forty  percent  the  since  councils.  applied  unevenly  manufacturing  percent  of  could  essential  administrative  eventually  However,  independence  perhaps  law  structure.  representatives  a s s e m b l i e s where  although  over  the  production  interests;  the  accounted  employed  the  a majority had  into  e l e c t i o n as  general  workers'  were  social  for  councils or  basicas never  Chile's  integrated  eligible  preside over  representatives The  fully  administrative  be m a i n t a i n e d state  not  of  total  en-  indus-  industrial  labour  14 force. In  But  the  the  majority  authority bility  for  Chilean  of  firms  less  than  and-intense since  was  tions  i n c l u d i n g the  armed  forces  in  two  the  years, The  a: m i n o r i t y  civil  opposed  Despite  within  conflict.  power  media.  it  experience  the  these  of  worker  social in  area  a climate  Allende in  p a r t i c i p a t i o n was workers of  profound  administration  Congress.  Moreover,  service,  judiciary,  and  reforming  government  through  overwhelming  enjoyed  problems  the  Espinosa  short-lived. management  political  held other  only  an and  executive  state  o f f i c e r :core  insta-  institu-  of  the  enthusiastic Zimbalist  mass  end 15  their  analysis  abrupt had time  of  terminiation  nothing but  to  do  France  of  with  everything  maintenance. In  the  to  Chilean  experience  with  worker  management  organization  any  shortcomings  do w i t h  the  which  essential  postive  arose  conclusions. in  September  during  political  its  short  preconditions  The 1973 lifefor  its  _ , a  political  party  with  a  commitment  to  worker  self-management  -  has  recently  Socialist  won  office  Party  majority.  and  (P.S.)  has  unlike  platform  of  or  a  more  France's  -  Chile's  received  Self-management,  political  92  Popular  comfortable  accurately,  second  largest  Unity,  the  overall  French  governmental  "autogestion,"  trade  union,  is  the  also  the  Confederation  16 francaise  democratique  strategy,  autogestion  upheavals  of  at  the  the  comites company  the  unions  long-term  committees  and  those  over  factory  walls  arbitrary the  of  factory,  to  legal  and  the  In  June  well  rights  They  The  of  comites  as  had  no  May to  the  French  controlling  provide  bothered  to  right  operate were  and  given  that  had  to  no  broader  followed  day  to  create  no  day the  devoid  sanc-  within  inside  the  against  concession  in  the  powers.^  resulted  of  legally  protection  brought  organize  the  information  operate  legal  in  government  bodies  unions  had  political  recognition  in  striker,  increases  official  to  1968  legal  1968  no  consultative  before  and  --  even  mere  union  occupations  War  voice  and members  unions  wage  World  firms  d'enterprise  the  a  trade  had  councils  produced fact,  a  factory  unions  Few  militants  power.  concessions nor  industrial  as  In  the  Second  works'  power.  union  managerial  form  these  management.  and  the  --  did  As  during  1968,  policy.  that  countervailing  to  After  d'enterprise  and  tioned 0  level.  to  (CFDT).  launched  Prior  operations  influence  travail  was  1968.  enterprise  created on  May  du  in  Neither a  return  his  (con-  peace. 1974  Valery  servative)  "reform  of  commission  recommended  those  of  supervision;  would  be  given  Giscard  the  firm"  the  by  setting  separation  workers  one-third  d'Estaing  on  of  firms  representation  attempted up  the  the  a  body  introduce  Sundreau  functions  employing on  to  more  of than  Commission. management 1,000  responsible  for  or  This from  2,000  supervision.  -  These ting  proposals, systems  Germany. had  boards  of  By  been  though  representation  the  time  modified  was  perhaps  to  the the  optional,  to  93  significant in  Europe,  Sudreau extent  be  -  for  notably  Commission  that  applied  worker  only  France,  at  short  of  exis-  co-determination  in  West  reached  fell  parliament  representation the  on  d i s c r e t i o n of  its  proposals  supervisory management  and  18 the  general The  device  assembly  Giscard  and  the  years  May  and  a  in  ding  left  Governments  after  the  of  1968. that  CFDT  Party.  reformism  (like  anti-capitalist  an  the had  was  and and of  and,  with  radical  case  the  of  national  much  of  and  the  the  a a  and  local,  into  It  municipal,  left  inclu-  is  conceives  not  piecemeal  system.  essential  of  of  official  for  It of  is  both  extreme  precondition  Fabian  bureaucratized  decentralization  from  occupations  in  newly-reorganized  capitalist  It  relations  radicalism  programme  communism.  centralized  public  non-communist  as  apparatus.  a  the  factory  e g a l i t a r i a n i s m whose  attendent  of  as  autogestion  intended  within  seen  some  importantly,  not  productive  collectives  battles  European  socialization characterized assortment  by  Fabianism)  widely  inserted  more  is  were  extinguish  firmly  anti-East  the  to  street  adopted  groups,  British  socialization  but  But  Autogestion  decentralization  nationalization  proposals  attempt  year  and  Catholic  Socialist  the  shareholders.  conservative  June  text  of  regional  oriented  state  ownership  is  and and  control  control in  by  some  community.  " T h i s was t o be a d e c e n t r a l i z e d s o c i e t y b a s e d o n a d e n s e n e t w o r k of s m a l l , autonomous s e l f - m a n a g e d u n i t s , t h a t i s , u n i t s managed d i r e c t l y by a l l t h o s e i m m e d i a t e l y i n v o l v e d i n t h e i r operations."^ Each ment  by  producing  the  workers.  unit,  therefore,  Decision-making  would would  be  characterized  take  by  place within  self-managean  elected  -  enterprise  council.  their  management  union  veto.  Those  prerogatives  Moreover,  stricted  to  societal  context  the  industry.  communications  firms  -  still  open  to  under  the  its  networks,.etc.  ownership  scrutiny  and  self-management  concept  equal  private  public  p r i n c i p l e of  Rather,  envisages  94  of  Autogestion  subject  would  autogestion  application  to  also  would  not  in  its  a  new  to  trade  be  re-  wider  universities,  sees  find  hospitals,  structure  for  20 trade  unions.  sist  on  their  tion  in  a  day  own  structure  in  long-term  has  independent  union-party  approach  with  This  the  four  strategy  partnership.  struggle  goals.  for  These  elements.  First,  and  any  so  Second,  avoid  unions  autogestion,  immediate  demands  need  to  must  totalitarian  need  distinct  unions  a  tactical  though be  in-  devia-  day  not  to  incongruous  politicized  and  21 centre dated  on  the  itself  dependent in  the  played  of  issue to  and  Finally,  theory  I t l i s made  under  autogestion  all  and the  political  by  of  of  and  the  in  more  so  platform.  encouragement  of  One  worker  it of  the  CDFT  strike  illegal  not  should  tactics  to  in-  though  greatly  part  accept  elected  --  was  become not  accommo-  committees  organization  must  opposition  of  the  managerial  representatives  aspirations.  autogestion  since  of  Unions  u n f u l f i l l e d worker of  Third,  and  unions  state.  remain  strategy  use  spontaneity  socialism the  but  production.  i m p l i c i t l y endorsing  machinery blend  machinery  hitherto  over  revolt  union  down.  express  the  May  19701 s t h i s  The  was  control  late  under  recent  the  trade  administrative roles  of  is  underpins Francois  both much  daring of  the  Mitterrand's  self-management  "...to  and  grandiose.  Socialist .election  increase  the  Party's pledges working  22 man's  say  reached  an  in  running  french  accord with  the  companies." PCF  on  Moreover,  am i m m e d i a t e  the  programme  new of  government  has  nationalization  -  to  include  the  multinationals  95  remaining  French  and  industries  other  -  banks  in  private  such as  hands,  the  top  five  s h i p b u i l d i n g , wood,  French  paper,  glass,  23 publishing, condition firmly cing  armaments  to  committed  the  to  the  latter  democracy  channel  immediately  heavy  which  possible.  In  view  the  Mitterrand  abjectly  than  the  last  is  a question Future  the  political  the  developments  will  also  in  in  Solidarity.  Poland  communist  designed  and  introduced  unionism"  qualitively possible  by  its in  the  military  by  the  the  single year  concessions  and  freedoms  overseers  and  corrupt  by  from  the  managers,  is  its  the  future the  Poland's As  Poland  in  by  the  existence Sta.te.  have  ended  introdu-  movement of  difficult  to  any  However, of  more  whether  autogestion  developments. of  Poland's  free  worker  autonomy  is  of  pre-  is  Yugoslavia,  the  independent  Solidarity such  precarious  the  what  reforms  fate  of  in  promise  workers'.self-management  self-management  of]its  i t  Britain.  toward  acceptance  much more  in  in  terms  is  movement  labour  in  in  union  success a  pages  fail  existence  state,  intervention  Within  work  administration.  is  worker  did  of  only  centralism in  grudging  ruling  might  trade  more  efforts  determine  the  Whereas,  Poland  superior  If  have  preceding  answered  democratic  state.  opposition.to  trade  to  be  incompatible with  by  will  nationalization  and  problem  Government  only  ently  accerbated  the  which w i l l  movement,  the  Government  Labour  union  least  combined  of  If  government at  approaches  that  has  a  must  thanthe  conceive  Mitterrand  electrical.  socializing industry,  industrial  across  and  the  than  in  inher-  problem  trade  future  has  of  longevity  Y u g o s l a v i a ; and  this  is  unionism  Yugoslavia  movement  the  trade  was  risen  "mere of view  the ignores  U.S.S.R.  Solidarity  Strikes  have  Saturday  has  won  removed  working  considerable insensitive  and  compulsory  -  ovetime. the  emergency  duced in  Most  the  and  of  a l l , Solidarity  congress  of  the  democratic  Europe.  politbureau.  General forced other  .The  their  than  a  as  new  result  denunciations  At  the  close of  Solidarity  the  made  Party  in  July  held  in  a  ever  almost  the.rule  of  Stanislaw  Minister  has  And  s i n c e then  from  East  initial the  an  of  been  bringing year  central  as  party  has  pro-  party  committee  leader  challenged  l i t t l e  about  which  communist  new  Kania  in  this  ruling  totally  neither  economic c r i s i s ,  and  instrumental  an  colleagues.  deepening  was  was  Prime  posture  Gdansk,  Communist  elections  However,  Jarazelski by  -  notable  most  Eastern  96  nor  changed  rein-  in  increasingly threatening  and  Poland  Soviet  Germany.  phase  important  of  its  first  d e c i s i o n to  national  ask  the  congress  in  Sijur(pariiament) 24  to  carry  refuses  through or  voter  would  hold  weeks  before  Government  its  having  designs  Union,  has  referendum  through  own  the  has  a  government at  time  of  writing,  ness  to  collaberate  a  management,  with  the  Party.  The  government  remains  to  the  the  vitriolic  has  and  issued a  partnership  implicit  with  part  more  In  the  intervening  of  the  Congress,  on  after  "grave"  a  with  the  by  the  groups  Polish  accusing i t by  the  indicating  its  the  of  the  the willingself-  Communist  though  Solidarity  of  Soviet  issue of  approval,  within  three  At  on  Sejm  Solidarity  union.  sovereignty  with  the  the  warning  trade  Government  responded  militant  Solidarity  compromise the  If  proposals,  attacks  recognition of  initially  seen whether  much w e a k e n  confrontation  has  self-management.  scheme.  final  power,  bloody  Solidarity in  on  of  issued several on  industrial  Government's  referendum  resumption  hinted  be  the  on  will  i t ratify 25  their  leadership's Whether  proposal  negotiations  on  when  the  Congress  self-management  reconvenes with  the  early  in  October.  Government w i l l  take  -  place, such  and  whether  talks  also  any  meaningful  remains  to  union  independence  in  fore,  that  settle  i t  industrial  boards.  in  a detailed  of  political  industrial Party  to  a  Whereas  the  knowledge  thesis  has  economy  outlined  Fabian  primary  the  the  the  organization  by  the  of  in  Guild  a  and  of  that  should  a  is  ability  1956  and  the  the  for  the  the  the  and  Ken  and  Cole  a  should labour  of  the twen-  contribu-  as  the  was  work  respectively. necessary)  trade  union  theoretical ownership  only.  on  Fabian  (when  bear  Movement.  debates  Coates  reform  democracy  focussing  Webbs'  G.D.H.  democracy,  of  of  Communist so w i t h  no  action  perspective  and  control  rights  However,  to  in  con-  this  and  one  future  Labour  by  Socialism identifies  function  the  do  British  construct  industrial  ownership  becomes  industrial  development  Clegg  to  power  1968.  case of  and  there-  industrial  the  trade  s t a t e - c o n t r o l 1 ed  immediately  of  from  than  unlikely, on  of  results  more  therefore  d i s t i n c t i o n between  industry; be  question  particular,  Hugh  It  society,  history  industrial on  the  S o c i a l i s m of  conceives  demanded  question  theoretical  decendents,  for  in  Polish  the  Guild  and  the  this  argue  In  has  demcoracy  representation  Solidarity,  influential  insists  latter  of  general  state  of  to  politics.  vehicle  which  of  events  attempted  view  the  offered  the  of  writers  labour  from  future  examination  ideological the  and  raised  in  was  trol  has  changes  to  contrasted  emanating as  Solidarity  worker  these  century  their  token  lies  several  of  for  industrial  self-management.  Poland,  work  was  for  in  One  tion  call  of  Solidarity  democracy  Chapter  tieth  seen.  The  critical  of  be  state'control led  adapt  This  its  -  form  power.  disquieting  from  will  97  -  theoretical Britains Fabian  d i s t i n c t i o n was  Labour  thought  was  tive  bargaining  (and  later  of  19601s  unable  to  as  this  hold  worker  and,  T.U.C.  sway  of  death  Bullock  in  these  notably  its  Chapter  Four  Britain  vailing  reactive  and  democracy.  and  industrial  cal  development,  planning a  any  in  of  than  Bullock  such  example.  to  Five  the  1970's,  democracy  the  along  with  character British  British  shows.  society  found  has  been  The  managed  brief  British  workers  have  change  of  must the  of  in  The  cul-  power. democracy  the  trade  to  unions  paralysis forever  by  be for  to  departure  worker  and  shortcomings,  p o l i t i c s and  the  the  l i f e  industrial  stimulus  radical  explain  The  its  incongruous  economy  period  to  demands  mid-1960's  1977.  of  the  industrial  of  1974.  managerial  Fabian  maturity From  and  the  from  Three  of  private  increasingly  largely  in  myopia  was  of  collec-  War  chorus  early  confront  of  with  from  f a i l u r e and l i m i t a t i o n s  a worker  Even  positions  early  form  mergers  growing  of  dominance  weaknesses.  patterns, a  years  second World  Report  Chapter  countries  Chapter  Yugoslavia  prime  the  more  when  the  in^the  inherent  stimulated  in  the  representation  industrial  condemn  Other  change as  not  labour  effectively  cooperative  need  of  formative  relations  post  its  management  of  the  terms  reality  union  investment  top  form  explained  This  tool  discussed in  in  trade  in.the  illustrates,  concrete  of  pressures  to  Two  highlighted  in  was  failure  governments  dustrial  mains  events was  into  developments  some  primarily  capitalism. Labour  to  Chapter  shifting  E.E.C.  Fabianism  Ironically:,the  also  over  These  with  mination  most  ownership.  traditional  commitment  of  over  representatives  together  as  -  by  centrepiece  bargaining  rationalization. for  the  missed  and,  carried  public)  collective  early  Movement,  98  early  preBritish  future  denied  in-  political  their from  historicentral  1950's  participation  rein  -  Chile  provides  implementing to  pursue  trial May  lation  Francois  But on  at the  least  for  which  industrial of  worker  in  demands The  that  full  in  in  democratic arise.  analysis  of  respective  of  is  a  As  full  industrial  cracy  is  ever  to  become  now  in  trade  power  parliamentary  in  Solidarity  the be  I.W.C.  in  some  production,  trade  in  union,  the  irrespective  demand  the  perspective, rather  than  expect,  with  the  international  ideology  and  structures  (within  the  Trade  And  Mitterseen.  is  again both  a  vehicle seem  existance  after  legitimacy  political  mileau.  suggests  that  examples an  increase  economy.  the  Britain.  be  some o p t i m i s m ,  and  in  to  isolated  Party  democracy  is  admittedly  then,  of  reformu-  whether  universal  of  events  Allende's  potential  its  indus-  CFDT.  constitutes  a  but  the  which  democracy  obstacles  can  Labour  reality  and  confirms  international  recurrent  The  --  remains  itself  sense  sought.  sense  in  in  subsequent  unlike  majority  industrial  failure  France  union,  and  country  s u c h one  a  largest  The  autogestion  European  histories,  of  of  In The  position  autonomy  gence  movement.  actively  experiment  design.  platform  second  independent  Britain  its  Chile's  party's  might  This  ended  in  is  government  his  control  struggle  worker  the  Poland's  Poland's  democracy  for  political  elected  self-determination.  socialist  comfortable  self-management  they  weakness  and  western  workers'  for  worker  majority  its  the  agenda.  for  of  S o c i a l i s t Party a  militancy.  their  any  advantage  one  intense  demands  from  produced  political  overwhelming  of  change  enjoys  take  of  than  -  a democratically  measure  S o c i a l i s t Party  Unity  which  of  parliamentary  Mitterrand's  movement  a year  real  rather  theory  will  upon  very  greater  the  Popular  example  stimulated  of  by  rand  a  democracy  1968  held  a  an  99  Union  Movement  preclude  the  yet,  if  industrial  parameters  of  advanced  concludes emerdemo-  -  industrial agencies  society)  acting  trial  democracy  would  need  A  trade  cracy  the  need  of  the  Labour  pect  the  give  of  to  its  ready  be  to  most,  Fabian for  Government  ment,  remarks  union  left  while that  has  leadership of  a  of  if  slightest Labour  the  necessary  and  its  Fabian  developed. In  shift  to is  a more  the  left  entirely  Party,  i t  that  these  prerequisites,  past,  looks  dim  formula  as  developments  radical  one  the  about  would  as  the  able  to  the  pros-  union new  sweeping  be  how-  "altogether  trade  lacking that  bring  demo-  aggressively  M i l i b a n d viewed  within  i n c l i n a t i o n to or  and  Bullock  Recent  1973  indus-  industrial  the  a watered-down  to  leadership.  Given by  two  legislation  workers.  determined  these  committed  character  optimism.  evidence  of  defensive  leadership with  nothing  the  its  expect  guarded  efforts  r e s p o n s i b i l i t i e s of  eventually  "...the  the  the  the  Government  legacy  rights  might  by  implement  democracy,  one  cause for  and  Labour  released from  replacing Labour's  illusory,"  the  of  industrial  At  do  freed  -  come a b o u t  future  determined  movement  indeed.  ever,  and  A  h i s t o r i c democratic  future  last  can o n l y  together.  be  union  would  assert the  to  it  100  move-  trade  changes do  so  if  in i t  26 had."  Since  1973  creased  both  minated  recently  this  within in  leftward  the  trade  the  1981  reflected  the  i n c l i n a t i o n of  changes,"  but  provided  electoral  college proposals  Benn  and  forty tuency  the  percent  'Rank  and  union  parties.  The  the  vote,  unions Labour the  in  and  the  the  trade  union  Labour  Labour  Leadership  structural  File  votes  trend  left  prerequisites the  Mobilizing  Committee"  Benn  the  to  rest  claimed,  to  do  adopted  between  "...had  This  trend not  about so.  Of  the  cul-  merely  the  five  by  Tony  a 40-30-30 and  i n -  "sweeping  proposed  M.P.'s  changed  markedly  which  bring  s u c c e s s f u l one  shared  has  Party.  Conference  submitted,  with  Party  formula:  the  course  constiof  -  British least of  the  the  the  history." vote  Labour  months  Party  to  S.D.P.  yet  rest  mer  Fabian  dealt Party  a  the  is  only  is  much  serious  which  following  form  the  It  the  had  too blow  been  to  and  its  in  the  S.D.P.  politicians.  The  to  endorse  Fabian  assured  since  At  significance for  S.D.P.  may  make  the  the  prophesy  over  1918  several  Party."  constitutes  Benn's  hegemony  decision,  Democratic  unclear  -  early  conference  "Social  that  101  the  at  leadership  constitution.  Labour moment  industrial  M.P.'s the  future  at  the of  may  faction  gains  Over  left  democracy  a disenchanted significant  but  of  the  as for-  next  28 election, ment.  or  vide the  may  share  Alternatively,  constitutional great  it  changes  significance. the  opportunity  trade  the  unions  and  They  may  mark  for in  the  industry.  If  1980's  will  a  industrial  tration  the  of  election  with  in  defection the  democracy  cracy  Liberal's  in  industrial of  the  these of  this  is  remain  as  Fabians  Labour's  democrats  within  parties  ar.minor to  the  to  with the  a commitment  to  not  forthcoming,  British  a  distant  S.D.P.  the  the  in and  could past  Labour  reopen  and  merely  party  leadership  d e c i s i v e break  constituency  vigour  position  the  and  Party, debate  democratic industrial  possibility.  be  parliathe of proin on  adminisdemo.T  -  CHAPTER F I V E  102  -  FOOTNOTES  1.  J a r o s l a v Vanek, "The Worker Managed i n J . Vanek, Self-Management.  2.  By 1964 t w e n t y - f i v e p e r c e n t o f t h e Yugoslav w o r k f o r c e had s e r v e d on workers c o u n c i l s on managing b o a r d s . C. Pateman, P a r t i c i p a t i o n and Democratic Theory, C . U . P . , 1970, p. 9 8 .  3.  J .  4.  W i l l i a m N . Dunn a n d J o s i p O b r a d o v i c , "Workers' Self-Management and Organizational P o w e r , " i n Dunn a n d O b r a d o v i c , e d s . , W o r k e r s ' SelfManagement a n d O r g a n i z a t i o n a l Power i n Y u g o s l a v i a , University of P i t t s b u r g P r e s s , 1978, p. 7.  5.  See Part  6.  Ibid.,  7.  Ken C o a t e s  8.  Vanek,  The P a r t i c i p a t o r y  III  See J o s i p Obradovic,  9.  Economy,  o f Dunn a n d O b r a d o v i c ,  Chapter  I,  p.  Institution,"  University  Press,  1971,  p. 46.  ibid..  T h e New U n i o n i s m  "Eqalitarianism  e d s . , Workers'  Radoslav Selucky, Democratic Theory  Cornell  as an  12.  and Tony Topham, Zupanov,  Enterprise  ,  1972,  pp.  and I n d u s t r i a l i s m , "  Self-Management,  Chapter  224-229.  i n Dunn a n d  3.  Marxism, S o c i a l i s m , Freedom: Towards a General o f Labour-Managed Systems, M a c M i l l a n P r e s s , 1979.  10.  Between 1965 and 1970, t h e C h i l e a n S t a t e a s s i s t e d twenty-two worker-run concerns, a l l with very l i t t no r e p e r c u s s i o n o n t h e r e s t o f t h e - e c o n o m y . Juan Andrew S . Z i m b a l i s t , Economic DemocracyT Workers' Chilean Industry 1970-1973, Academic P r e s s , 1978,  in l e G. Pa p.  the formation of c a p i t a l and almost Espinosa and rticipation in 39.  11.  Ibid.,  p. 46.  12.  Ibid.,  pp.  48-50.  13.  Ibid.,  pp.  51-56.  14.  Ibid.,  p.  15.  Higher level p a r t i c i p a t i o n stimulated lower level involvement. Discip l i n e improved and absenteeism decreased. The o p p o r t u n i t y f o r p a r t i c i p a t i o n s t i m u l a t e d demands f o r more t r a i n i n g , w h i c h i n t e r m s i n c r e a s e d worker e f f i c a l y in participation. In a sample o f s o c i a l i z e d f i r m s p r o d u c t i v i t y i n c r e a s e d by s i x p e r c e n t . S o c i a l i z e d firms a l s o tended  177.  t o have h i g h e r i n v e s t m e n t r a t i o s . These f i r m s a l s o services available to workers. I b i d . , pp. 181-189.  expanded  the  social  -  16.  103  -  The French Communist P a r t y and t h e communist l e d C . G . T . , France's l a r g e s t t r a d e u n i o n , e s p o u s e t h e i r own w o r k e r m a n a g e m e n t s y s t e m , gestion democratique. I t s s t r a t e g y i s more o r t h o d o x m a r x i s t i n c h a r a c t e r a n d d o e s d i f f e r i n many r e s p e c t s t o t h e CFDT m o d e l o f a u t o gestion. H o w e v e r , t h e two s t r a t e g i e s w e r e b r o u g h t c l o s e r t o some e x t e n t b y t h e 1 9 7 2 Common P r o g r a m m e A g r e e m e n t b e t w e e n t h e P . C . F . and P.S. For t h i s reason and the f a c t of F r a n c o i s M i t t e r r a n d ' s a c c e s s i o n p o w e r , a t t e n t i o n wiTI c o n c e n t r a t e o n a u t o g e s t i o n a s F r a n c e "s r o a d t o industrial democracy.  to  17.  Stephen B e r n s t e i n and K e i t h a S. F i n e , "Worker Control i n France: R e c e n t P o l i t i c a l D e v e l o p m e n t s , " i n G. D a v i d G a r s o n , e d . , W o r k e r S e l f Management i n I n d u s t r y : The West E u r o p e a n E x p e r i e n c e , P r a e g e r , 1977, p. 158.  18.  Ibid.,  pp.  19.  Ibid.,  p.  20.  Ibid.,  pp.  21.  See A n d r e G o r t z , "Work and Towards S o c i a l i s m , C o r n e l l  22.  The  Economist,-  23.  The  Times  24.  A l t h o u g h t h e n a t u r e o f s e l f - m a n a g e m e n t t o be c a n v a s s e d i s a s y e t u n c l e a r , one newspaper a u t h o r i t a t i v e l y s u g g e s t s t h a t " i t s t a n d s f o r c o m p l e t e w o r k e r s ' c o n t r o l by t h e e m p l o y e e s r a t h e r t h a n by t h e u n i o n . . . " To O b s e r v e r , 13 S e p t e m b e r 1 9 8 1 . p. 9.  25.  These events have taken by t h e W e s t e r n M e d i a .  26.  R.  27.  The  28.  The in the  159-160. 163. 166-168.  2-8  (London)  Mi H i b a n d ,  May 24  C o n s u m p t i o n , " i n P. Anderson U n i v e r s i t y P r e s s , 1960.  1981, June  Parliamentary  Time,  25 J a n u a r y ,  S.D.P.  took  thirty-eight  second  largest  Blackburn,  48.  p l a c e between  Projected  R.  1981.  Sunday  Warrington.  p.  and  Socialism, 1981. percent party  pp.  Front  nationally,  political  September  in  of  and  24  as  reported  374-375. page  the  this  10  poll  at  a  recent  s h a r e w o u l d make  Britian,  after  Labour.  by-election the  S.D.P.  -  104  -  BIBLIOGRAPHY  Aldridge, Anton,  Alan  Power,  F r a n k R. University  Authority  Michael  Tufton  Benedictus,  Half  R.,  Blackburn,  Robin  of  and  Blackburn, Robin MacMillan,  P.L.  Marx,  Bourn,  Implications  Robin  C.  and  the  Stacy  Neal,  Bullock  Cockburn  and M a r n , 1979.  to  Towards  Socialism,  Industrial  Tom  A.  Practices, Blackwell,  Prescription for  (eds.)  From L a b o u r i s m  B a t s t o n e , E r i c and D a v i s , H.H.S.O., 1976. Beamish,  Restrictive  Worker P a r t i c i p a t i o n : of Calgary, 1980.  A n d e r s o n , P e r r y and B l a c k b u r n , University Press, 1966. Baratt-Brown,  and  Alan  C.  (eds.)  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Workers'  Press,  1978.  -  108  -  APPENDIX  The  Majority  Bullock  A  Report  in  Brief  Proposals:  1.  Any f i r m w i t h more i f a secret ballot least one-third of  2.  Worker  3.  Equal numbers o f u n i o n and s h a r e h o l d e r r e p r e s e n t a t i v e s on t h e newly c o n s t i t u t e d boards (the "2X" e l e m e n t ) , p l u s a s m a l l e r group o f coopted d i r e c t o r s a g r e e a b l e t o b o t h p a r t i e s ( t h e "Y" element).  4.  Worker r e p r e s e n t a t i v e s to s e r v e on u n i t a r y s u p e r v i s o r y boards under a t w o - t i e r system  5.  Worker d i r e c t o r s to normally serve no f e e , b u t c a n be r e m o v e d e a r l i e r  6.  S u b s i d i a r i e s of l a r g e companies can a l s o opt f o r worker boards i f they employ, more t h a n 2 , 0 0 0 p e o p l e . M o r e o v e r , both B r i t i s h and f o r e i g n m u l t i n a t i o n a l s are included i n the proposals.  7.  An I n d u s t r i a l D e m o c r a c y C o m m i s s i o n t o w a t c h o v e r t h e r u l e s , encourage p a r t i c i p a t i o n a n d i f n e c e s s a r y i m p o s e t h e "Y" g r o u p i n c a s e s w h e r e unions and s h a r e h o l d e r s cannot a g r e e .  8.  -£3m t o law,  directors  be  and  directors  set  than 2,000 employees must i n t r o d u c e worker d i r e c t o r s o f a l l w o r k e r s shows a s i m p l e m a j o r i t y ( e q u a l t o a t the work f o r c e ) , i n favour.  to  be  aside  finance. would  to  chosen  train  However,  have  to  only  union the  learn  through  channels.  boards rather than as i n Germany.  merely  f o r three years with expenses i f a l l the unions agree.  candidates  report  how  union  also  in  management,  envisages  to. i n t e r a c t  that  effectively  on  but  company shareholder  with  employee  representatives.  Minority 1.  2.  Proposals:  Where a s e c r e t b a l l o t r e v e a l s a m a j o r i t y o f e m p l o y e e s i n f a v o u r r e p r e s e n t a t i o n a t b o a r d l e v e l , s u c h r e p r e s e n t a t i o n s h o u l d be on visory not unitary boards. Employee  representatives  supervisory 3.  should  always  constitute  less  than  half  of super-  of  board.  Employee r e p r e s e n t a t i v e s s h o u l d i n c l u d e a t l e a s t one representative of a l l c a t e g o r i e s of employees - - from the s h o p - f l o o r p a y r o l l , from s a l a r i e d s t a f f e m p l o y e e s , and from management.  a  -  APPENDIX  A  109  -  (cont.)  4.  The i s s u e o f b o a r d - l e v e l r e p r e s e n t a t i o n s h o u l d n o t be v o t e d upon u n t i l a complementary ' s u b - s t r u c t u r e ' o f an employee c o u n c i l has been e s t a b l i s h e d and o p e r a t e d e f f e c t i v e l y f o r a s p e c i f i e d number of years.  5.  A l l e m p l o y e e s ( n o t j u s t members o f t r a d e u n i o n s ) , s h o u l d be i n v o l i n e l e c t i o n s both to employee c o u n c i l s and to s u p e r v i s o r y board appointments.  -  110  APPENDIX  A  Note  on  the  Industrial  Democracy  -  B  White  Paper,  Spring,  1979.  Cmnd.  7231  Recommendations: 1.  The e s t a b l i s h m e n t o f t h e r i g h t t o d i s c u s s s t r a t e g i c i s s u e s i n companies e m p l o y i n g m o r e t h a n 5 0 0 ; t o be f o l l o w e d l a t e r b y t h e i n t r o d u c t i o n of an a d d i t i o n a l r i g h t t o employee r e p r e s e n t a t i o n on s u p e r v i s o r y b o a r d s o f companies e m p l o y i n g more t h a n 2,000.  2.  P r i v a t e S e c t o r - - no i m p o s i t i o n o f e m p l o y e e r e p r e s e n t a t i o n f o r 3 t o 4 years. T h i s w o u l d p r o v i d e t r a d e u n i o n s and management w i t h s u f f i c i e n t time to adapt. Some u n i o n s m i g h t o p t f o r s t r a t e g i c b a r g a i n i n g a c t i o n w h i c h w o u l d come into force immediately.  3.  P u b l i c Sector - - a s w i f t e r advance toward boardroom r e p r e s e n t a t i o n i s envisaged. Government heads o f n a t i o n a l i z e d i n d u s t r i e s s h o u l d s t a r t d i s c u s s i o n s with the appropriate unions immediately. Both c o l l e c t i v e b a r g a i n i n g and employee r e p r e s e n t a t i o n a r e a s i n g l e channel i n the J . R . C . But any homogeneous groups s h o u l d have the r i g h t to appeal to A . C . A . S .  4.  Parity  —  third1 of  The seats  White on  Paper  favours  supervisory  employee  boards  as  a  representation "reasonable  t o be t h r o u g h over 100  having  first  one-  step."  


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