mvii (J^:' .•<^ COMMISSION OF ENQUIEY INTO INDUSTEIAL UNEEST. SUMMARY OF THE REPORTS OF THE COMMISSION BY The Right Honourable G. K BARNES, M.P. Presented to Parliament by Command of His Majesty. •LONDON: PUBLISHED BY HIS MAJESTY'S STATIONEEY OFFICE. To be purchased through anv Bookseller or directly from H.M. STATIONERY OFFICE at the following addresses : Imperial House, Kingsway, London, AV.C. 2, and 28, Abingdon Street, London, S.W. 1 ; 37, Peter Street, Manchester; 1, St. Andrew's Crescent, Cardiff; 23, Forth Street, Edinburgh; or from E. PONSONBY, Ltd., 116, Grafton Street, Dublin; or from the Agencies in the British Colonies and Dependencies, the United States of America and other Foreign Countries of T. FISHER UNWIN, Ltd., London, W.C. 2. [Cd. 8696.] 1917. Price Id. Net. COMMISSION or EMOIIIRV INTO INDUSTRIAL IINMST. ^*ni i\ '\«(n-o- J 1.— MINUTE OF APPOINTMENT AND TERMS OF REFERENCE. I appoint the following to serve as a Commission to eiaquire into and report upon Industrial Unrest, and to make recommendations to the Government at the earliest practicable date : — For the N.E. Division — Sir Thomas Munro (Chairman). Mr. P. Bright. Mr. H Davies. For the N. W. Division — His Honour Judge Parry (Chairman). Mr. John Smethurst. Mr. J. R. Clynes, M.P. For the YorJcs and East Midlands Division — Sir George Croydon Marks, M.P. (Chairman). Sir Maurice Levy, Bart., M.P, Mr. J. J. Mallon. For the West Midlands Division — Major J. W. Hills, M.P. (Chairman). Mr. J. W. White. Mr. J. W. Ogden, J.P. For the London and S.E. Division — His Honour Judge O'Connor (Chairman). Mr. Allan M. Smith. Mr. J. Voce. For the S.W. Division — W. W. Mackenzie, Esq., K.C. (Chairman). Sir Alfred Booth, Bart. Mr. T. Chambers. For the Welsh Division, including Monmouthshire — D. Lleufer Thomas, Esq. (Chairman). Mr. Thomas Evans. Mr. Vernon Hartshorn. For the Scottish Division — Sheriff T. A. Fyfe (Chairman). Mr. Noel E. Peck. Mr. A. G. Cameron. To be Secretary to the Commission — Mr. G. M. Hodgson of the Offices of the War Cabinet. (Signed) D. LLOYD GEORGE. 12th June, 1917. 2.— MINUTE OP APPOINTMENT OF A SPECIAL COMMISSIONER. I appoint Mr. A. I. Wadeson a special Commissioner tor the Sheffield District, to serve as a member of the Yorks and East Midlands Division of the Commission to enquire into Industrial Unrest. (Signed) D. LLOYD GEORGE. 3rd July, 1917. (b 10233) A 2 383807 / REPORT BY THE SECRETARY TO THE COMMISSION. To THE Right Hon. G. N. BARNES. M.P. 1. The Commission was appointed by the Prime Minister on the 12th June, 1917, and started work at various dates from the 13th to the 25th June. Numerous instructions on points of detail have been issued, but the total number of circulars which have been sent out during the course of the Commission is only eighteen. Most of these dealt with financial and accounting matters. One was, however, of wider importance, and that authorised the conamujiication to witnesses of the Interim Report on Joint Standing Industrial Coimcils issued by a Sub-Committee of the Reconstraction Committee. This instruction was issued in consequence of a decision of the War Cabinet whereby the pub- lication of the report was sanctioned, and the result of that decision has been to add^very materially to the value of the Commissioners' reports. 2. On the 23rd June a circular was issued suggesting that, in order to comply with the Prime Minister's instructions, no evidence should be taken after the 10th July, and that the divisional reports should be completed by the 12th July and be forwarded to me not later than the first post on the following day. It is gratifying to record that the majority of the reports were in my hands on the night of the 12th July and by 10 o'clock on the following morning all the reports were in the hands of the printers. I wish to express my thanks to the Commissioners for the cordial way in which they co-operated in carrying out the proposed time table. At the same time, this satisfactory result could not have been obtained without the seK-sacrificing efiorts of the local Secretaries, to whose industry, efficiency and ability I have great pleasure in testifjdng. 3. Whilst the Commissions have been sitting, certain changes afEecting them have been made in the Government. A new Food Controller has been appointed, and one of the Commissioners of the North- West Division (Mr. J. R. Clynes, M.P.) has been appointed as his Parliamentary Secretary. 4. The Committee on Production has been enlarged by the addition of a chairman and two additional members. The chairman in question is the chairman of the South- West Commission (W. W. Mackenzie, Esq., K.C.) and one of the members is a Commissioner for the West Midlands district (Mr. J. W. White). These additions to the Committee on Production will render it possible for the Committee to have three courts sitting simul- taneously, and should have a most berieficial effect in reducing the delays in securing settlements to which all the Commissions have drawn attention. 5. The main reports have now all been received and advance copies have been sub- mitted to the Prime Minister to-day. With the exception of a note to the Yorks and E. Midlands report, they are all signed by the Commissioners appointed for each district without qualification or reservation of any kind. 6. A supplemental report on Industrial Unrest at Barrow has been submitted by the Commissioners for the North- West Division, but printed copies are not yet available. G. M. HODGSON, Secretary. Offices of the War Cabinet, 2, Whitehall Gardens, S.W. llth July, 1917, r" COMMISSION OF ENQUIRY INTO INDUSTRIAL UNREST. SUMMARY OF THE REPORTS BY THE RIGHT HON. G. N. BARNES, M.P. To THE Right Hon. DAVID LLOYD GEORGE, M.P. (Prime Minister). 1. Introductory. — The Commission of Enquiry into Industrial Unrest, which was appointed by you on the 12th June, has now completed its work. The Terms of Reference to the Commission were — " To enquire into and report upon the causes of industrial unrest and to make recommendations to the Government at the earliest practicable date." 2. The constitution of the Commission is shown in the Minutes of Appointment dated 12th June and 3rd July, on page 2. 3. The number of meetings held by the eight Commissions has varied from 10 to 30 in each case and the number of witnesses who have given evidence to each Commission ranges from 100 to 200. 4. Every efiort has been made to carry out your instructions to the Commissioners that their report should be issued within a period of one month. It has not, however, been found possible to carry out a full enquiry and submit a report in less than five weeks from the date of appointment. Whilst the limitation of time has to some extent narrowed the scope of the enquiry, it has also operated as a stimulus to everyone concerned to carry out the work with the utmost despatch compatible with efficiency. 5. A comparison of the reports shows that there is a strong feeling of patriotism on the part of employers and employed throughout the country and they are determined to help the State in its present crisis. Feelings of a revolutionary character are not entertained by the bulk of the men. On the contrary, the majority of the workmen are sensible of the national difficulties, especially in the period of trial and stress through which we are now passing. 6. Whilst the eight reports agree as to the main causes of industrial unrest, important differences appear in the emphasis laid by the various Commissions upon specific causes. 7. In order that the principal points of agreement and difference between the eight reports may be readily seen, I submit the following brief summary of the Commissioners' findings and recommendations : — (1) High food prices in relation to wages, and unequal distribution of food. (2) Restriction of personal freedom and, in particular, the effects of the Munitions of War Acts. Workmen have been tied up to particular factories and have been unable to obtain wages in relation to their skill. In many cases the skilled man's wage is less than the wage of the unskilled. Too much centralisation in London is reported. (3) Lack of confidence in the Government.- — This is due to the surrender of Trade Union customs and the feeling that promises as regards their restoration will not be kept. It has been emphasised by the omission to record changes of working conditions under Schedule II, Article 7 of the Munitions of War Act. (4) Delay in settlement of disputes. — In some instances 10 weeks have elapsed without a settlement, and after a strike has taken place, the matter has been put right within a few days. (5) Operation of the Military Service Acts. (6) Lack of housing in certain areas. (7) Restrictions on liquor. — This is marked in somfe areas. (8) Industrial fatigue. (9) Lack of proper organisation amongst the Unions. ~1 / 6 (10) Lack of communal sense. — This is notiaeable in South Wales, where there has been a break-away from faith in Parliamentary representation. (11) Inconsiderate treatment of women, whose wages are sometimes as low as 13s. / (12) Delay in granting pensions to soldiers, especially those in Class " W " Reserve. (13) Raising of the limit of Income Tax Exemption. (14) The Workmen's Compensation Act. — The maximum of £l weekly is now inade- quate. 8. Universal Causes of Unrest. — Food Prices and Distribution of Supplies. — All the Commissions put in the forefront, as the leading cause of unrest, the fact that the cost of living has increased disproportionately to the advance in wages, and that the distribution of food supplies is unequal. Commissioners are unanimous in regarding this as the most important of all causes of industrial unrest. Not only is it a leading cause of unrest in itself, but its existence in the minds of the workers colours many subsidiary causes, in regard to which, in themselves, there might have been no serious complaint ; and the feeling exists in men's minds that sections of the community are profiting by the increased prices. 9. Operation of the Munitions of War Acts. — The operation of the Munitions of War Acts has undoubtedly been a serious cause of unrest, in particular the restriction upon a workman as regards the selection of his sphere of labour. If the leaving certificate restric- tion is removed the leading cause of dissatisfaction under this heading will cease to exist. There will still remain, however, one element which is very important, because it projects itself into the after-war settlement. That is the complaint that sufiicient atten- tion is not being paid by employers to Article 7 of Schedule II of the 1915 Act. Changes V^ of working conditions, more especially the introduction of female labour, have been made without consultation with the work people. 10. Operation of the Military Service Acts. — The reports show generally that the irritation occasioned by the withdrawal of the Trade Card Scheme within a few months of its initiation and without any previous intimation, has now subsided. At the same time, much anxiety is occasioned by the working of the Schedule of Protected Occupations, and the great majority of the reports emphasise the importance of the greatest care being exercised in the issue of red and black cards respectively, and in the proper treatment of the subject by the local officials entrusted with recruiting. 11. All the reports refer in general terms to what is called the want of co-ordination between Government Departments dealing with labour ; but probably much of what is said on this head may have been written under a misconception and without a clear understanding'of Departmental administration. It seems hardly possible that any single department could during the war carry the whole of the immense problems of] the Supply Departments which have bearing upon the control of labour. Apart from the suggestion that one central authority should be set up, the reports contain proposals for the formation of informal local boards to settle local disputes, or for the appointment of a local commissioner with technical knowledge to settle disputes other than those arising on questions of wages. A proposal which finds general favour is that workshop committees should be set up. 12. Acute, hut not Universal, Causes of Unrest. — Causes of unrest which are reported as acute in certain districts, but are not universal, include — (1) The want of sufficient housing accommodation in congested areas — especially in Scotland, Wales, the North-East and certain parts of the North- West and South- West Areas. (2) The liquor restrictions, which operate as a cause of unrest in some districts, but not in others. For example, in the West Midlands Area, the need for a further supply of beer of an acceptable quality is urgent, and to some extent the same is true in London and Swansea ; on the other hand, in Scotland the subject was never mentioned. (3) Industrial fatigue, which, is not a universal cause of unrest. There is a general consensus of opinion that Sunday and overtime labour should be reduced to a minimum, that holidays should not be curtailed, and that the hours of work should not be such as to exclude opportunities for recreation and amusement. 13. Psychological Conditions.— The great majority of the causj^ of industrial unrest specified in the reports have their root in certain'^sychological conditions. Want of confidence is a fundamental cause, of which many of the causes given are merely mani- festations. It shows itself in the feeling that there has been inequality of sacrifice, that the Government has broken solemn pledges, that the Trade Union ofiicials are no longer to be relied upon, and that there is a woeful uncertainty as to the industrial future. The reports abound in instances of the prevailing feeling that pledges are no longer observed as they were in pre-war days. Allusions to " scraps of paper " aie painfully numerous. Perhaps suflScient allowance has not been made for the difficulties which have beset all in authority through the ever-changing phases of industrial conditions owing to the War;^ \ 14. Special Local Causes. — It is noticeable that each of the eight reports has an individual character and lays stress on one or other of the causes of unrest in varying degree. I feel it would be invidious to refer to individual reports ; but I would dxaw attention to the marked contrast in the character of the reports submitted by the South- West and Wales Commissions respectively. The reports reflect a great many minor causes of unrest, which are local in character, but these are too numerous to specify in detail. 15. Relations of Employers and Employed. — The reports bear a striking testimony to the value of the proposals made in the Report of the Sub-Committee of the Recon- struction Committee, dealing with the Relations of Employers and Employed. This report was published whilst the Commissioners were sitting. Broadly speaking, the principles laid down appear to have met with general approval. 16. Recommendations of the Commissioners. — (1) Food Prices. — There should be an immediate reduction in price, the increased price of food being borne to some extent by the Government, and a better system of distribution is required. (2) Industrial Councils, &c. — The principle of the Whitley Report should be adopted ; each trade should have constitution. (3) Changes with a view to further increase of output should be made the subject of an authoritative statement by the Government. (4) Labour should take part in the affairs of the community as partners, rather than as servants. (5) The greatest publicity possible should be given to the abolition of Leaving Certii&cates. (6) The Government should make a statement as to the variation of pledges already given. (7) The £l maximum under the Workmen's Compensation Act should be raised. (8) Announcements should be made of policy as regards housing. . (9) A system should be inaugurated whereby skilled supervisors and others on day rates should receive a bonus. (10) Closer contact should be set up between employer and employed. (11) Pensions Committees should have a larger discretion in their treatment of men discharged from the Army. (12) Agricultural wages' in the Western Area, now as low as 14s. to 17s. a week, should be raised to 26s. a week. (13) Coloured labour should not be employed in the ports. (14) A higher taxation of wealth is urged by one Commissioner. 17. In addition to the above recommendations, the recruiting system is universally regarded as requiring most careful handling. In some areas an increase in the suppHes of alcohoKc liquor is demanded. The co-ordination of Government Departments dealing with labour is reported as an urgent matter ; and an appeal for increase of publicity and fuller explanation of Government proposals is made in several of the reports. Further, it is recommended that when an agreement has been drawn up between representatives of Employers' Federations and Trade Unions, that agieement should be bindmg on aU in the trade concerned. It is also represented that local arbitration tribunals for the settle- ment of local disputes on the spot could with advantage be set up, 18. The feelmg in the minds of the workers that their conditions of work and destinies are being determined by a distant authority over which they have no influence requires 1^ 8 to be taken into consideration, not only by the Government, but by the Unions tiiem- selves. Taken as a whole, the reports throw a flood of light upon the conditions of work and of life in the various divisions, and the information which they disclose would amply repay the trouble of perusal of the reports in detail and of a careful comparison one with another. 19. In conclusion, I desire to draw attention to two points — ^the practical unanimity of the reports, and the remarkable promptitude with which they have been compiled. Had it not been for the whole-hearted co-operation of the Commissioners and their local secretaries, it would have been quite impossible for a comprehensive enquiry into the intricate subject of industrial unrest to have been completed within the time allotted. GEORGE N. BARNES. G. M. Hodgson, Secretary. Offices of the War Cabinet, 2, Whitehall Gardens, S.W. llth July, 1917. 383807 ^I7r. UNIVERSITY OF CAUFORNIA LIBRARY UNIVERSITY OF CALIFORNIA LIBRARY BERKELEY Return to desk from which borrowed. This book is DUE on the last date stamped below. JUL 3 1950 AUG 7 1969 FEB2 3.19B0 RECD IN DOCS DEPT. C EP 2 11979 -100m-9,'48iB399sl6)476