A c A 1 m 4 4 4 ! 33 SNCILIATI _ AND B'^BITRATf DOUGS.,\S K \OOI THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES vn. INDUSTRIAL CONCILIATION AND ARBITRATION BY DOUGLAS KNOOP SHUTTLEWORTH SCHOLAR AND COBDEN PRIZEMAN OF THE UNIVERSITY OF MANCHESTER WITH AN INTRODUCTION BY SYDNEY J. CHAPMAN STANLEY JEVONS PROFESSOR OF POLI- TICAL ECONOMY, AND DEAN OF THE FACULTY OF COMMERCE IN THE UNIVERSITY OF MANCHESTER LONDON P. S. KING & SON ORCHARD HOUSE WESTMINSTER 1905 HO CONTENTS. K'7SU PAGE /5 INTRODUCTION. By Professor Chapman v '^ PREFACE x\ai C CHAPTER c 2 I. INDUSTRIAL DISPUTES : THEIR CAUSES AND THEIR SETTLEMENT . . . . . . 1 r II. CONCILIATION VERSUS ARBITRATION . . . . 25 ^ III. PRIVATE VERSUS GOVERNMENT CONCILIATION _j AND ARBITRATION . . . . . . . . 37 U ■^ IV. PRIVATE CONCILIATION AND ARBITRATION . . 45 j3 V. VOLUNTARY VERSUS COMPULSORY STATE CON- ~ CILIATION AND ARBITRATION . . . . 82 S VI. VOLUNTARY STATE CONCILIATION AND ARBI- TRATION . . , . 99 VII. COMPULSORY ARBITRATION .. .. . . H4 VIII. CONCLUSION 178 APPENDIX I :— NOTE TO SECTION 6 OF THE INDUSTRIAL CON- CILIATION AND ARBITRATION AMENDMENT ACT, 1903 189 412720 iv CONTENTS. PAGE APPENDIX II :— WAGES AND PRICES IN NEW ZEALAND, 1892 AND 1902 190 APPENDIX III :— LETTER OF MR. F. G. EWINGTON OF AUCKLAND TO THE " AUCKLAND STAR " . . . . . . 193 APPENDIX IV :— NOTE TO BIBLIOGRAPHY . . . . . . 195 BIBLIOGKAPHY 197 INDEX 235 INTRODUCTION. -O — Studies of the sort made by Mr. Knoop in this essay are more urgently needed at the present time than they have been in most periods of our history. In saying this I am aware that the man who tries to judge relatively the magnitude of the problems of his own times is liable to become the victim of illusion. His interest in the social questions just before him imparts to them a vividness and impressiveness in com- parison with which the past is dull, and he is led to feel, as hundreds of others have felt before, that he stands on the threshold of a new era. But, these considerations notwithstanding, it does seem as if the present age would be distinguished in history by the economic changes that took place in it and the attempts that were made to deal with social difficulties. In the field of industry we are faced by the ' trust ' which, if not new, is at least more vi INTKODUCTION. predominating in industry than it was a generation ago. Among the activities of buying and selling we find again old forces so transformed as to constitute new facts. Many markets, through grading, organisa- tion, and the telegraph, are broadening into world-markets and stretching into the future, and the large dealer, who is aided by im- proved financiering, is being provided, there- fore, with a wider field for his operations. It is not England alone that is agitated by the question of speculation on produce ex- changes. But of all the matters that are troubling advanced communities none is more serious than the labour question in its diverse aspects. Moreover, there is at the present time an undoubted disposition on the part of municipal and central govern- ments to act in relation to the labour question. The last few years have seen a Workmen's Compensation Act adopted in this country, which deals with the risks of accident on a principle that is entirely novel to us ; an immense system of workmen's insurance undertaken by the State in Germany ; the com- pulsory fixing of wages by legally authorised boards in certain of our Colonies ; attempts in many countries to render more peaceable the settlement of wages ; and a new activity INTRODUCTION. vii among States, local authorities, and private persons to minimise the evils of unemploy- ment by insurance, labour bureaux, labour colonies, and other means. Never perhaps was there greater need for close studies of the social question ; for there are many problems to be solved, and in an age of social effort experiments will be made, which, if not preceded by scientific investi- gation, will be full of risk. " The present age," writes Professor Marshall in his Plea for the Creation of a Curriculum in Economics and Associated branches of Political Science, " is indeed a very critical one, full of hope but also of anxiety. Economic and social forces capable of being turned to good account were never so strong as now ; but they have seldom been so uncertain in their operation. Especially is this true of the rapid growth of the power and inclination of the working classes to use political and semi-political machinery for the regulation of industry. That may be a great good if well guided. But it may work great injury to them, as well as to the rest of the nation, if guided by unscrupulous and ambi- tious men, or even by unselfish enthusiasts with narrow range of vision. Such persons have the field too much to themselves. There is need for a larger number of sympathetic viii INTRODUCTION. students, who have studied working-class problems in a scientific spirit, and who, in later years, when their knowledge of life is deeper, and their sense of proportion is more discip- lined, will be qualified to go to the root of the urgent social issues of their day, and to lay bare the ultimate as well as the immediate results of plausible proposals for social reform. For instance, partly under English influence, some Australasian colonies are making bold ventures, which hold out specious promise of greater immediate comfort and ease to the workers. But very little study of these schemes has been made of the same kind, or even by the same order of minds as are applied to judging a new design for a battleship with reference to her stability in bad weather : and yet the risks taken are much graver." Some experiments more or less blind must be tried, but it is folly not to provide for the best possible preliminary analyses of the situation being made, and equally folly for each country to act without regard to the plans being tested in other countries. Not the least important of the labour ques- tions that are pressing upon our attention at the present moment is the method of settling changes in wages. The satisfactory solution of this problem lies at the very root of social INTRODUCTION. ix efficiency and social peace. To determine a wage authoritatively and compel its acceptance is no solution, for it is essential that the * right ' settlement should be reached, to insure the functioning of society according to its needs, and further that the various parties to it should feel it to be right. Indeed, it might be that the ' wrong ' solution would be best for a time under some circumstances, were it generally regarded as just. The reader who is inclined to think that an exaggerated weight is being attached to the settlement of wages, because there were long periods in the past when people lived their lives comfortably enough, as a rule, without thinking much of ' social problems,' would do well to remember that the wages question, in the complicated form in which it confronts us now, is of comparatively recent origin. Without overstating the simplicity of eco- nomic arrangements in the ages gone by, we may say with truth that every year increasing division of labour, by rendering it more and more impossible to assign a product to each person's labour, and by rendering the connection between what a person does in the producing system and what he gets as his share more and more remote, has added to the difficulty of reaching X INTRODUCTION. the scheme of distribution which both con- duces most to social advantage and satisfies each factor in production that it is receiving fair treatment. Widely diffused education in social economics is needed for this reason alone, namely, to help people to understand why they receive such and such incomes and to see principles where facts seem to lend support to the crudest notions of the exploitation of labour. I should like now to say a few words upon the broad question of the settlement of wages. There are two fundamental questions at least to be decided. The one relates to making the wage move in detail as the effi- ciency of the individual worker and to basing wages upon a system which will encourage efficiency. Under this head falls the dis- cussion of the advantages and disadvantages of piece-rates, time-rates, premium schemes, and profit-sharing, and the conditions under which each in its varieties is suitable. Con- tinual experiment, based on analysis and close criticism of results, is required for a satisfactory progressive settlement of these questions. Many plans are now being given trial, especially in the United States, but it is doubtful whether the intelligent attention which the subject demands is being devoted INTRODUCTION. xi to it and whether it is being approached as a rule in the right spirit. The problem is more intricate than it at first appears, for trade- union sentiment has to be taken into account, prejudices have to be removed, and the over-stimulation of labour, it is said, has to be guarded against. The other funda- mental question referred to above relates to the means by which the movements of wages, whatever their basis, with changed conditions of trade, methods of production and efficiencies of factors in production, are to be rendered rapid, peaceable, and appropriate. This is the question with which Mr. Knoop deals more especially, and of the two questions distinguished above it is the more momentous, since more actual conflicts break out over movements of wages in this sense than over the methods of calcu- lating them. In entering upon the investigation of this question certain dangers must be guarded against. There is the danger of supposing that society is much simpler than it is, and that a group of intelligent practical men could, given full evidence from interested parties, hit upon the solution as easily as the mathema- tician can find the value of certain expressions given the requisite number of equations. This A 2 xii INTRODUCTION. is a grave danger because, although on a cursory examination a particular question of wages appears to be comparatively simple, its correct determination may involve a know- ledge of innumerable data, much of which ia not known to have an appreciable bearing upon the question and most of which cannot be given a quantitative form. Moreover, since a period of the future is tied up by a wages settlement, future forces require to be estimated. Again, the data are a troubled sea of inconstant ele- ments. To use an analogy, the problem is to deduce from a person's constitution how much food he should take each week for the next six months. Who shall say ? for who shall deduce from the parts of the organism their joint needs now and for the next few months ? Fortunately, nature solves the riddle by giving to such organisms appetite. Again, in every endeavour to decide upon the best method of rearranging distribution, there is the danger of proceeding too deductively. There is a disposition on the part of those who know something of social functioning to say, ' society is of such and such a nature and therefore this and that method of dealing with social matters are unsuitable.' The truth is that we know little about society, and that the most we can establish by deduction INTRODUCTION. xiii is a high probability. By the aid of deduction we may start with certain reasonable predilec- tions, but experiment may show us to be wrong. There is too strong a tendency among certain classes to lay it down dogmatically that certain schemes will never work and perhaps to exaggerate the dangers of failure. Society may be delicately organised, but society never- theless seems to be endowed with marvellous powers of recovery. Surgery is a most flagrant interference with the order of nature, but people recover from radical operations and are the better for them. The reader will observe as he peruses the pages of this work, how the danger that we are now noticing has been avoided by a judicious interweaving of induction and deduction. Then there are the errors that arise from arguing from one set of conditions to another without introducing qualifications, from for- getting the future in the present, or vice versa, and from thinking of the distribution of wealth merely as a question of equitable sharing. As to the first of these mistakes nothing disparaging to comparative studies is intended. On the contrary, it is evident that Political Economy will approximately complete itself only when all economic uniformities have been observed closely as they operate in different countries, xiv INTRODUCTION. climes, and stages of social development. The comparative investigation is always of scientific value and frequently it is also of direct practical value, but in basing action upon it we must bear in mind that local conditions are dissimilar and that empirical laws must be viewed with suspicion until they can be explained. The third error enumerated at the be- ginning of the preceding paragraph has en- trapped many an untrained thinker. The arbitrator who settles a question of distribution is not determining only how so much wealth shall be shared, but also, in some degree, what wealth shall be produced. For relative wages and profits are magnets attracting labour and capital to the several businesses. It is because they are magnets, and just so far as they are effective magnets, and in proportion to the range of classes over which each magnet exercises an influence, that the settlement of fundamental questions of distribution by market forces is satisfactory. Unfortunately the natural machinery of society works stiffly, and the operations of the market generate friction: hence the case for the organisations that jerk the social machine occasionally in order to set it working again or hasten its movements, and hence the value INTRODUCTION. xv of conciliation which keeps passions in check while forces are working through bargaining to the right position of equilibrium. Lastly, I think we must be on our guard against the seductions of simplicity and mechanicalism. Ours is not a simple society — it is so efficient because it is not — and therefore a simple system of distribution would seem to be impossible. Mechanical the system of distribution cannot be — by mechanical I mean such that the wage of a man can be worked out by a few calculations — because the wage of each person that suits advanced division of labour is to be regarded as an inexpressible function of numerous variables, many of which are inexpressible. Besides mechanical substitutes for natural processes may easily atrophy organs that society cannot safely dispense with. In performing the grateful task of contribut- ing an Introduction to Mr. Knoop's able and valuable essay, it has been my object to show how important the subject of the essay is, and to prepare the reader's mind for the sort of considerations that must be weighed before judgment can be passed on the matters dealt with. It has not been my purpose to show how far I agree with the author's views and how far I dissent from them, if I disagree at all xvi INTRODUCTION. on any momentous point. There are many no doubt who will not be prepared to accept all Mr. Knoop's conclusions, but most readers I think would subscribe to the statement that the books of most value to us are not necess- arily those with which we wholly agree. The thoroughness with which Mr. Knoop has sought out his material and the impartiality with which he has sifted his evidence, the reader will soon discover for himself. S. J. Chapman. PREFACE. The full title of this essay is " The Place of Conciliation and Arbitration in Industrial Disputes," but for short I have called it " Industrial Conciliation and Arbitration." The subject is exceedingly large, and it is necessary to state, at the outset, what method has been followed in writing the essay, so that the reader may under- stand why certain things, which may seem trivial, have been included and why others of undoubted importance have been omitted. The whole of this essay turns upon what seem to me to be the four leading principles of industrial conciliation and arbitration : {a) the difference between two classes of labour disputes, the one arising out of the inter- pretation of existing contracts, and the other out of the terms of future contracts ; (6) the distinction which clearly exists between con- ciliation and arbitration ; (c) the contrast which xviii PREFACE. must be made between private and State conciliation and arbitration ; and lastly, (d) the opposition between voluntary and com- pulsory arbitration. The essay comprises the theoretical discussion of these four points, and copious illustrations drawn from the practical working of conciliation and arbitra- tion in different countries. In choosing my illustrations I have first drawn as fully as possible upon the material offered by the United Kingdom. This I have supplemented by foreign examples, which will be found to be much more numerous, where legislation is concerned, than in the case of private con- ciliation and arbitration, where reference to the United Kingdom and the United States has sufficed. Indications are given in foot- notes, however, as to where information con- cerning other countries can be obtained. My chief illustrations of compulsory arbitra- tion have been taken from New Zealand, but reference has also been made to the New South Wales Act, in so far as it helps to throw new light upon the subject. Consideration of length has made it neces- sary to omit copies of any laws or industrial agreements, which might otherwise have been profitably included. There is no one very satisfactory collection of such documents, PREFACE. xix the Reports of the American Industrial Com- mission being perhaps the best. The indus- trial agreements contained in it are all American and the volume on foreign labour legislation makes one or two important omissions,* and the Reports consequently require supplementing from other sources. Whenever possible an attempt has been made to indicate where such information can be obtained, either in a footnote at the place where the subject is dealt with in the text, or in short notes attached to some of the works mentioned in the bibliography. The whole subject of the material is exceedingly complicated. Two excellent works deal with the period which ends about 1892. The Reports of the Royal Commis- sion on Labour offer a large collection of material, not only for the United Kingdom, but also for the principal foreign countries. * The French laws deahng with the Gonseils des Prud' homines, the Itahan law of 1893 estabhshing the GoUegi di Probi Viri and the Danish arbitration law of April 3rd, 1900, were among those in existence at the time when the reports were pubhshed. Amongst the laws passed since the pubUca- tion of the reports are the following : the German law of September 29th, 1901, amending the law of July 29th, 1890 ; the New South Wales Industrial Arbitration Act, 1901 ; the New Zealand Industrial GonciUation and Arbitration Amendment Act, 1903, and the Western AustraHa Industrial Conciliation and Arbitration Act, 1902 (which is almost identical with the New Zealand Act). XX PREFACE. The French Report, published by the Office du Travail : " De la conciliation et de I'arbi- trage dans les conflits collectifs entre patrons et ouvriers en France et a I'etranger. Im- primerie Nationale, Paris, 1893, 1 vol. in 8° de 616 pages, 6 fr.," has the advantage over the other work of being less bulky and less expensive.* The two reports must be considered as complements rather than as substitutes for one another, for the information contained in both is by no means identical. There are many other works, besides these two reports, which deal with this period, to which reference will be found at different parts of the essay. Since 1892 a large development of volun- tary State conciliation and arbitration has taken place, and some new features in private systems and the whole question of compul- sory arbitration have come to the front. The natural consequence of this enormous growth of industrial conciliation and arbitra- tion has been a corresponding increase in the literature dealing with the subject. One general report ; t two reports of Royal * As late as June, 1904, this report was not out of print. If it is at the present time, it could probably be obtained second-hand through MM. Miizard et Ebin, 26, Place Dauphine, Paris ; or George Roustan, 5 and 17, Quai Voltaire, Paris; t The Reports of the American Industrial Oommisaion. PREFACE. xxi Commissions on compulsory arbitration ; *four private reports dealing with the same subject ; "j" five or six annual Government publications upon the work of the year,:}: and some more published at odd times ; § not a few annual reports of State Boards of conciliation and arbitration ; j| several official monthly labour publications ;^ a certain number of books on the subject ; numerous * Report of the New South Wales Royal Gommission of Inquiry into the Working of the New Zealand Compulsory ConciUation and Arbitration Law, and the Report of the Vic- torian Royal Gommission appointed to investigate and report on the operation of the Factories and Shops Law of Victoria. t V. S, Glark, Labour Gonditions in New Zealand ; the Special Gommissioner of the Adelaide (S.A.) Advertiser, In- dustrial Legislation in New Zealand : the Gonciliation and Arbitration Act ; A. Metin, Legislation ouvi'iere et sociale en Australie et Nouvelle-Zelande ; and H. D. Lloyd, A Govmtry Without Strikes : A Visit to the Gompulsory Arbitration Court of New Zealand. X e.gi Reports on Strikes and Lockouts ; Reports on Changes in Wages and Hours ; Statistique des Graves et des Recours a la Gonciliation et a 1' Arbitrage ; Reports of the New Zealand Department of Labour. § c.y. Reports on Standard Piece Rates, 1893 and 1900 ; Reports on Standard Time Rates, 1893 and 1900 ; Infor- mation relating to Courts of Arbitration and Boards of Conciliation in the United Kingdom and in certain British Oolonies and Foreign Countries. Pietermaritzburg, 1904. II e.g. Reports on the Conciliation Act, 1896 (biennial) ; Reports of the New York State Board of Mediation and Arbitration ; Reports of the Massachusetts State Board of Arbitration ; the New South Wales Industrial Arbitration Reports and Records. ^ e.g. Labour Gazette ; Journal of the New Zealand Department of Labour ; Bulletin de 1' Office du Travail (France) ; Revue du Travail (Belgium); xxii PREFACE. articles in magazines and journals, and a vast number of reports of particular arbitra- tions during the past twelve years, consti- tute the principal sources of information for the period subsequent to 1892. In attempting to deal with all this litera- ture two chief difficu^' 'es have confronted me : in the first place, I have not always found it possible to obtain access to all the documents I should have liked to do, and in the second place, there was great diffi- culty in selecting from those I have seen : some were evidently unimportant or far too detailed for an essay like this one, others were very contradictory, and from what re- mained over it was by no means easy to make a satisfactory choice of material. A very similar difficulty was experienced to that just mentioned, when trying to decide exactly what should be included under the head of industrial conciliation and arbi- tration. After considering the matter care- fully, I decided that some mention of strikes and lockouts, collective bargaining, sliding scales and other similar matters relating to the subject of the essay must be made, though such mention should be as short as possible. Throughout this essay, whenever dealing with practical conciliation and arbitration, I PEEFACE. xxiii have attempted to indicate in footnotes all the sources used in writing any particular section, so that anyone wishing for further details on the subject will know where to find them. As already mentioned, dur- ing the course of my reading I have come across more indications of works dealing with industrial conciliation and arbitration than I have found it possible to refer to. This has led me to form a bibliography of all the works bearing on the subject, of which I know the titles, and it will be found in an appendix to this essay. To many of the more important works I have added short notes, indicating what the reader may expect to find in them. Details of the intentional omissions from the bibliography will be found in the appendix. Before passing on to the subject proper, the pleasant duty remains for me to ex- press my best thanks to various gentlemen for facilities afforded me in writing this essay, and in particular for the loan or gift of reports, books and papers : — Professor S. J. Chapman ; Hon. W. P. Reeves, Agent- General for New Zealand ; the late Hon Henry Copeland, Agent-General for New South Wales ; Hon. H. B, Lefroy, Agent- General for Western Australia ; Sir W. Peace xxiv PREFACE. K.C.M.G., Agent-General for Natal ; Colonel Carroll D. Wright, Commissioner of the United States Department of Labour ; Mr. John McMakin, Commissioner of the New- York State Department of Labour ; Mr. B. F. Supple, Secretary of the Massachusetts State Board of Arbitration ; Mr. K. B. Murray, Secretary of the London Labour Conciliation and Arbitration Board; Mr. W. J. Davis, Secretary of National Amalgama- tion of Brass Workers ; Signor C. Hannan, Director of the Commercial Museum of Milan ; Mr. John Smethurst, Secretary of the Federation of Master Cotton Spinners' Associations; Mr. Ealph M. Easley, General Secretary of the National Civic Federation of America ; Mr. Frank Popplewell, B.Sc. ; and Mr. F. G. Ewington, Auckland. Since it has been decided to publish this essay, which was originally prepared for the Shuttleworth Scholarship at the University of Manchester, I have further to express my obligations to Professor Chapman for kindly writing the Introduction, and to my father for the great assistance given me in getting the manuscript through the press. INDUSTRIAL CONCILIATION AND ARBITRATION. CHAPTER I. INDUSTRIAL DISPUTES : THEIR CAUSES AND THEIR SETTLEMENT. " An absolutely fair rate of wages belongs to Utopia." These words of a great Englisli economist* really give the keynote to the whole of this essay. All industrial disputes do not arise over questions of wages, but nevertheless this is the predominating cause of strife, as figures produced below will show. There is little hope that in the immediate future an entirely satisfactory solution of the newest of the great economic problems, the wages problem, will be found, and consequently anything, such as the subject-matter of this essay: "Industrial Conciliation and Arbitration," which helps to remove the difficulty, is not to be considered as an object of passing interest only, but rather as one of the few existing solutions of the problem, however imperfect they may be, which have come to stay as long as the problem itself remains. It cannot be recognised too clearly that the great economic problems, as we know them to-day, have not existed for more than a few centuries at the most, and that even at the beginning of the nineteenth * Professor Alfred Marshall in the Preface to Price's Industrial Peace, p. ix, B 2 CONCILIATION AND AEBITRATION. century the force of custom was still often stronger than the force of competition. Adam Smith clearly recognised the problem of prices, Ricardo for the first time correctly explained the problem of rent, but it was not till well into the second half of the nine- teenth century that the problem of wages received a correct treatment. It must not be thought that these problems did not exist before the time they were correctly explained, just as the laws of gravitation existed before they were explained by Newton ; but whilst these latter are fundamental laws, which, as far as we know, always have been and always will be true, the laws governing economic phenomena have varied during the course of centuries, and cannot be universally applied even at the present time. Little more than a century ago the wages problem did not exist as it exists to-day, but was to a large ex- tent merged in the problem of prices. The subject- matter of an industrial bargain was commodities, not labour. Many a workman, generally assisted by his family, made the goods in his house and sold them either to travelling merchants or sometimes to manu- facturers, who delivered them to other workmen to undergo a further process of manufacture. The only point to be settled was the price to be paid for the com- modities, and just as at present no seller would think of denouncing a would-be purchaser as a " sweater " of labour because he refuses to buy at a certain price, so in the eighteenth century no workman was discon- tented if a merchant refused to buy his yarn at any particular price he chose to fix. Hence disputes INDUSTRIAL DISPUTES. 3 about the price to be paid did not arise, althougb of course disagreements about the quality and quantity of the goods delivered, might occur. The wages problem as we know it, may be said to be a child of the factory system and as this grew and as the old order died out, labour was substituted for com- modities in the industrial bargain. As the element of custom which still existed was gradually replaced by that of competition ; as the invention of machinery to a large extent took away from the limited number of skilled workmen the advantages they had possessed over the numerous miskilled, and as even children became almost their equals ; as the even balance, which for centuries had existed between demand and supply was rudely upset ; as the economies arising out of the concentration of industry and capital in small areas gradually but surely destroyed the household in- dustries ; as the barrier separating management from execution became greater and greater ; and, what is perhaps the crucial point of the wages problem of the present, as industry ceased more and more to be a subsidiary employment for agriculture and attained to the independent position it occupies to-day, the work- man, finding himself isolated and no longer sup- ported by his farm, ceased to be able to say to the manufacturer — " If you will not buy at my price, I will not sell at all." The workman, obliged to live, had to sell his labour for what it would fetch, and for a time, great as was the demand for labour, the supply, swelled by the children of paupers and to a large extent also by those of free labour, b2 4 CONCILIATION AND AKBITRATION. exceeded the demand and wages for many years never rose above a bare living wage. Tbis im- doubtedly was the condition of wages when Ricardo wrote his " Principles of Political Economy " in 1812, for he considers that the amount paid to labour as wages is determined by the minimum of subsistence, and it is in consequence of this principle that he holds in another part of his work that none of the in- cidence of a tax can fall upon the labouring classes, for the simple reason that the whole of their wages is absolutely necessary to them for mere subsistence. In so far as we are dealing with one of the most subtle changes which have taken place in economics, it is really impossible to fix the dates of the beginning and of the end of the period of transformation and to say that, before a certain date, there is a problem of prices, and that, after another date, there is a problem of wages. Nevertheless, just as when dealing with political history it is commonly said that the Eighteenth Century ended in 1789 and the Nineteenth began in 1815 after the battle of Waterloo, and that the intervening years were occupied by the French Revolution, so we may say, when dealing with the history of wages, that roughly the old system ended in 1760 and the new system began in 1824, after the repeal of the Combination Acts, and that the inter- vening years were occupied by the Industrial Revolu- tion. In 1824 also, an Act was passed to amend and consolidate the laws dealing with industrial arbitra- tion ; * and thus one year saw, not only the * 5 Geo. IV., Ohap. 96. INDUSTRIAL DISPUTES. 5 commencement of the new problem of wages and the right of labour to organise, which were so closely connected, but also a fresh attempt on the part of the Government to assist in the settle- ment of any strikes which the new system might involve. * Ever since 1824 the close connection between the wages problem, trade unionism, strikes and lockouts, and industrial conciliation and arbitration has con- tinued to exist, although for a long time the attempts to settle industrial disputes by peaceful methods were not attended with any great success. It is not necessary to enter here into the history of conciliation and arbitration, as this will be dealt with fully further on. In this chapter, however, we must still shortly consider the wages problem of to-day and its relation to industrial disputes, industrial disputes and their relations to trade unions and employers, and lastly, trade unions and employers, or associations of employers, in their relation to industrial conciliation and arbi- tration. The first words of this essay were, that " an ab- solutely fair rate of wages belongs to Utopia." The reader may well ask himself, what an absolutely fair rate of wages really is ? Professor Marshall discusses this question at considerable length,"]* and as I do not wish to repeat what he has said, and certainly cannot * The legislation of both the old and the new systems will be fully dealt with in Chapter VI. I See Preface to Price's Industrial Peaoe.j 6 CONCILIATION AND ARBITRATION. improve upon it, I shall content myself witli taking a short phrase of his and tacking on to it what I have to say : " The popular notion is, that there should be given a ' fair day's wage for a fair day's work.' "* This sentence clearly shows us, that a fair day's wage, even in the popular notion, is something mutual, so that an absolutely fair rate of wages may be described as one entirely satisfactory to both parties. No doubt the reader will say, that there never were two men, one paying and one receiving a wage, who were both entirely satisfied with the arrangement ; it must be remembered, that in Professor Marshall's words " an absolutely fair rate of wages belongs to Utopia." The ideal or absolutely fair rate of wages is one which is practically never attained, and in daily life we always find one party gaining an advantage at the expense of the other. The advantage or disadvan- tage may be very slight, but it may become so great, that the party at the disadvantage refuses to continue work upon those terms. The two points at which the employer on the one hand and the workman on the other refuse to continue work may, for brevity's sake, be called the " locking out " point and the " striking " point respectively. These two points must be conceived as changing their position according to the condition of trade, and also in the case of the " striking " point in some degree according to the cost of living. Thus, when a depression of trade * The words quoted here are from a long sentence, and the Uberty has been taken of altering theu' order, so as to make one short sentence out of the first part of it. INDUSTRIAL DISPUTES. 7 follows a time of prosperity, wages, if tliey have re- mained stationary, become more and more favourable to the workpeople, or, in other words, the " locking out " point is being approached, and if the work- people do not consent to a reduction of wages a lock- out will inevitably follow. In the same way, when trade is improving, the wages paid, if they have remained stationary, become more and more favourable to em- ployers ; whilst on the other hand the workmen's *' striking " point is steadily being reached and, unless the employers concede a rise in wages, a strike will follow. The large number of industrial disputes caused by unsuccessful attempts to raise or reduce wages, has already been referred to and will be illustrated by figures below. The cause for this must now be pretty evident to the reader. When attempting to make a new industrial bargain, it is exceedingly difficult for each party to estimate the striking or locking out points of the other party. Employers and workmen each put a difierent estimate upon the increase in wages, which an improvement in trade will bear ; and it is exactly the same with reductions, when trade is becoming depressed. Generally, each party is successful in feeling whether the other party will give way or not, and insists or withdraws accordingly ; but in certain cases the one misjudges the other, or, the employers, wishing to cut down their output in times of depression, insist upon an unnecessarily large reduction of wages, in order to bring about a strike or lockout. The only satisfactory 8 CONCILIATION AND ARBITRATION. solution for disputes arising out of increases and reductions of wages is a board of conciliation, where masters and men meet in a friendly spirit and quietly talk matters over. This will be referred to again later in the essay, and we will now pass from in- dustrial disputes caused by an alteration in the level of wages to a discussion of industrial disputes in general. It is most important to recognise that there are two distinct classes of labour disputes. The first class arises out of the interpretation of existing contracts. These disputes are generally individual, and are particularly suited for settlement by arbitra- tion, if no settlement can be efiected by any other method. The second class is caused by difficulties about the terms of future contracts, and these dis- putes are usually characterised by their collective nature. In making future contracts, two distinct kinds have to be recognised, which have been called vertical and horizontal contracts. The former are concerned with the relation which the wage of any one class of workmen bears to itself at difierent times ; the latter are concerned with the relation which the wage of one class of workmen bears to that of another at any given time. Though the horizontal contract is some- times a source of trouble, it is generally the vertical movement which leads to disputes. It will be easily seen that disputes of the second class are not suit- able for decision by arbitration ; and, shortly, the distinction between the two classes may be well ex- pressed by saying, that the former is of a judicial and the latter of an essentially legislative character. INDUSTRIAL DISPUTES. 9 From the nature of industrial disputes it re- quires a small step only to turn to the number of the TABLE SHOWING THE NUMBER OF STRIKES AND LOCKOUTS IN THE UNITED KINGDOM, 1894-1903.* Number of Workpeople Year. Disputes. Affected. Days Lost. 1894 929t 325,248t 9,529,010t 1895 745t 263,1231 5,724,670t 1896 926t 198,1901 3,746,368t 1897 8G4 230,267 10,345,523 1898 711 253,907 15,289,478 1899 719 180,217 2,516,416 1900 648 188,538 3,152,694 1901 642 179,546 4,142,287 1902 442 256,667 3,479,255 1903 387 116,901 2,338,668 * Compiled from the Annual Reports on Strikes and Lockouts. f It is only since 1897 that disputes involving fewer than 10 workpeople and those which lasted less than one day have been omitted, except when the aggregate duration exceeded 100 working days. The figures quoted above are those altered to the new basis, as given in the Report on Strikes and Lockouts for 1899. The original figures for 1894, 5 and 6 were as follows : — Year. No. of Disputes. Workpeople AfEected. Days lost. 1894 1895 1896 1,061 876 1,021 324,245 263,758 198,687 9,322,096 5,542,652 3,748,525 It is also very possible that after the original reports were pubhshed, new iaformation came to hand, and that this was embodied ia the revised figures, 10 CONCILIATION AND ARBITRATION. TABLES SHOWING THE NUMBER OF TRADE DISPUTES TERMINATED IN GERMANY AND THE METHODS OF ADJUSTMENT, 1899-1903.* 1899. 1900. 1901. 1902. 1903. No. of trade dis- putes terminated 1,311 1,468 1,091 1,106 1,444 No. of work- people affected 116,486 141,121 68,191 70,696 135,522 Method of adjust- ment : — Direct agree- ment between the parties 542 635 392 413 *56 Intervention of trade organi- sations - 206 233 170 186 338 Industrial courts acting as boards of conciliation 65 45 32 43 55 * Compiled from the German Reports " Streiks imd Aus- sperrungen (Statistik des Deutschen Riechs)" which have been published annually since 1899, and which are quoted in the Labour Gazette. TABLE SHOWING THE NUMBER OF STRIKES AND LOOKOUTS IN FRANCE, 1894-1903.* Year. Number of Disputes. Workpeople Affected. Days Lost. 1894 391 54,576 1,062,480 1895 406 45,809 617,669 1896 476 49,851 664,168 1897 356 68,875 780,944 1898 368 82,065 1,216,306 1899 744 177,081 3,550,734 1900 903 222,769 3,761,227 1901 523 111,414 1,862,050 1902 512 212,704 4,675,081 1903 571 123,957 2,443,219 * Compiled from " Statistique des Greves et des Recours k la Conciliation et ^ I'Arbitrage." Office du Travail, annually ; and quoted in the Abstract of Foreign Labour Statistics and the Labour Gazette. x INDUSTRIAL DISPUTES. 11 TABLE SHOWING THE NUMBER OF STRIKES IN THE UNITED STATES, 1891-1900.* Number of Employees Average Year. Strikes. Establish- thrown out of Duration. ments. Employuieut. (Days). 1891 1,717 8,116 298,939 34-9 1892 1,298 5,540 206,671 23-4 1893 1,305 4,555 265,914 20-6 1894 1,349 8,196 660,425 32-4 1895 1,215 6,973 392,403 20-5 1896 1,026 5,462 241,170 22-0 1897 1,078 8,492 408,391 27-4 1898 1,056 3,809 249,002 22-5 1899 1,797 11,317 417,072 15-2 1900 1,779 9,248 505,066 23-1 TABLE SHOWING THE NUMBER OF LOCKOUTS IN THE UNITED STATES, 1891-1900.* Year. Number of Lockouts. Number of Establish- Employees throwia out of Average Duration. ments. Employment. 31,041 (Days). i»ji 69 546 37 8 1892 61 716 32,014 72 1893 70 305 28,842 34 7 1894 55 875 29,619 39 7 1895 40 370 14,785 32 3 1896 40 51 7,668 65 1 1897 32 171 7,763 38 6 1898 42 164 14,217 48 8 1899 41 323 14,817 37 5 1900 60 2,281 62,653 265-1 same. In recent years tlie importance of strikes and of their influence, has been so well recognised, that in all four of the greatest industrial countries — the United Kingdom, the United States, Germany and France — ofl&cial reports are periodically published dealing with the same. I On the preceding pages I have * Compiled from the 10th and 16th Annual Reports of the U.S. Commissioner of Labour. t The English Reports on Strikes and Lockouts have been published annually since 1888. The French Reports, " Statistique des Greves et des Recours a la Conciliation et a 12 CONCILIATION AND ARBITRATION. quoted some of the more recent figures for eacli of these countries. Unfortunately, the manner in which the statistics are quoted difiers in the various countries, so that comparison becomes difficult. It is not even possible to compare the number of disputes in the different countries, for after allowing for the size of the industrial populations, it is probable that what is included under the head of strikes and lockouts in one country, is omitted as too small and unimportant in another ; and besides this, the completeness of the figures for the difierent countries is very liable to differ. All that can be compared are the figures for any one country in difierent years, and as that is done in the con- cluding chapter, where an attempt is made to show whether peaceful methods of settling disputes is on the increase or not, I shall not dwell upon this question here, but shall content myself with pointing out one or two of the more striking characteristics r Arbitrage," have appeared annually since 1893 ; but ever since 1852 attempts have been made to estimate officially the number of strikes, though only from 1882 onwards can the figures be said to be rehable. The German pubhcation, " Streiks und Aussperrungen(Statistik des Deutschen Reichs)'' commenced in 1899 only and has appeared annually since. In the United States strikes and lockouts are dealt with periodically in the Annual Reports of the Commissioner of Labour. The 3rd Report, issued in 1888, dealt with the strikes and lockouts from 1881-1880. The Report of 1894 brought these figures down to June 1894 and the 16th Report, published in 1901, deals with the disputes from June 1894 till December 31st 1900. It may be mentioned, by the way, that the German Reports give figures only for the dis- putes terminated in any one year, and in America the figures for strikes and lockouts are quoted separately. INDUSTRIAL DISPUTES. 13 which the figures reveal. In the case of the statistics for the United Kingdom, one cannot fail to notice the very large number of days lost in some years. The explanation generally is, that the figures have been enormously increased by one or two particularly big strikes.* In 1894, for example, 70,000 Scotch coal miners were on strike for an aggregate duration of working days of no fewer than 5,600,000. In 189.5, 46,000 boot and shoe opera- tives lost 1,564,000 days, whilst during 1897 and 1898, 47,500 engineers were on strike for an aggregate duration of, approximately, 6,850,000 days. In 1898, 100,000 South Wales coal miners lost 11,650,000 days, and again in 1902, 102,612 pit lads and other colliery workers from the Federated districts lost 872,000 days. These few strikes explain to a large extent the height of the United Kingdom strike statistics. The French figures, on the other hand, seem to show that France is remarkably free from large disputes. In Germany there appear to be a large number of strikes, each involving on an average only very few people. The United States figures fluctuate in a very high degree, and the abnormal number of lockouts of great duration in 1900 is particularly noticeable. It is really quite impossible in a few short para- graphs to deal adequately with a subject like strikes and lockouts, and no attempt is made to do so, but * A complete list of the great disputes of the United ICingdom from 1888 till 1902 will be fouud in an appendix to the Report on Strikes and Lockouts for 1903. T4 CONCILIATION AND ARBITRATION. a word about them had necessarily to be introduced into an essay, the subject-matter of which is a solution for industrial disputes. From our point of view, however, it is more important to understand the causes which lead to strikes, than their numbers ; as before any remedy of an evil can be discussed, it is necessary to know the cause of the evil. The statistics quoted on the next pages refer to the causes of disputes in the United Kingdom only, but as far as the importance of the question of wages is concerned, they may be taken as typical of all great industrial countries. TABLE SHOWING THE CAUSES OF THE DISPUTES IN THE UNITED KINGDOM AND THE NUMBER OF WORKMEN DIRECTLY AFFECTED, 1899-1903.* Principal Cause. t Number of Workpeople directly affected by Disputes beginning in : 1899 1900 1901 1902 1903 Wages : For increase Against decrease - Otlier - - - - 73,696 6,826 14,129 57,269 7,385 18,249 19,886 14,852 24,127 15,208 26,053 15,472 14,412 12,019 23,126 Total - 94,651 82,903 58,865 56,733 49,557 Hours of labour : For decrease Otlier - - - - 1,069 2,788 487 231 1,464 2,734 203 2,841 99 4,009 Total - 3,857 8,187 17,895 5,130 8,338 718 4,198 3,044 4,108 Employment of particular classes or persons - Working arrangements Trade unionism Other causes - 10,427 18,976 19,573 2,568 10,524 23,185 11,531 3,134 11,436 19,849 25,489 273 7,822 13,609 17,602 817 Grand total - 138,058 135,145 111,437 116,824 93,515 * Compiled from the Annual Reports on Strikes and Lock- outs. ■\ Examples of the classification of the causes of strikes and lockouts will be found in the Report on Strikes and Lockouts for 1903, pp. 122-4; INDUSTRIAL DISPUTES. 15 TABLE SHOWING THE CAUSES OF DISPUTES IN THE UNITED KINGDOM AND THE PERCENTAGE OF THE TOTAL NUMBER OF WORKMEN DIRECTLY AFFECTED BY THEM, 1899-1903.* Principal Cause. Percentage of Total Number of Workpeople directly affected by Disputes beginning in : 1899 1900 1901 1902 1903 Wages - - - - Hours of labour Employment of particu- lar classes or persons Working arrangements - Trade unionism - Other causes 68 3 6 13 4 6 61 1 8 14 14 2 53 4 9 21 10 3 49 3 10 17 21 53 4 8 15 19 1 Total - 100 100 100 100 100 * Calculated from figures compiled from the Annual Reports on Strikes and Lockouts. TABLE SHOWING THE PERCENTAGE OF THE TOTAL NUMBER OF DISPUTES IN THE UNITED KINGDOM DUE TO DIFFERENT CAUSES, 1899-1903.t Percentage of the Total Number of Disputes due to different Causes in : Principal Cause. 1899 1900 1901 1902 1903 Wages 64 67 63 60 60 Hours of labour - 2 1 5 5 4 Employment of particu- lar classes or persons - 14 15 13 13 14 Working arrangements 10 9 11 14 15 Trade unionism 6 7 6 7 6 Other causes 4 1 2 1 1 Total 100 100 100 100 100 ■j- Calculated from figures compiled from the Annual Re- ports on Strikes and Lockouts. 16 CONCILIATION AND AEBITRATION. It will be noticed that the figures quoted above, show, on the one hand, the number of workmen directly affected by disputes due to different causes, and on the other hand, the percentage of the total number of disputes due to different causes. For purposes of comparison the first table has also been expressed in percentages of the total number of workmen directly affected. The two latter tables agree in indicating " wages " as by far the most important cause of disputes ; with regard to the importance of the other causes the two tables differ considerably. According to the number of disputes " employment of particular classes or persons " is the most impor- tant cause after " wages," and " working arrange- ments " and " trade unionism " come next. Ac- cording to the number of workpeople directly affected, " working arrangements " are the most important cause after " wages," and these are closely followed by " trade unionism," and at a considerable distance by " employment of particular classes or persons." As this is not an essay on strikes, it is unnecessary to discuss to which table most importance must be attached, and the chief object of introducing the question will have been fulfilled, if it is clear to the reader that the question of wages ia the predominating cause of strikes and lockouts. " Trade unionism," the reader will have seen, figures directly in the causes of disputes given above. In- directly, however, a trade union was probably at the bottom of almost every strike; for organisation on the part of the workmen is essential,if they wish to have a INDUSTRIAL DISPUTES. 17 moderate chance of success in industrial warfare. But it is more interesting for us to note, that trade organisations are just as essential to successful ar- bitration and conciliation as they are to successful industrial war. This proposition sounds distinctly contradictory, but really it is not so ; for a strong trade union is not only of assistance in a strike, but is also the first to appreciate the desirability of settling disputes by conciliation and arbitration, and is in the best position to see that awards are carried out. To use the words of a well-known arbitrator : * " Unorganised labour, the new union, the employer, who though old in years, first meets a labour trouble and who has not learnt that ' war is hell ' — such do not need arbitration. They believe they can win out and are quite sure to have nothing to arbitrate. In proportion as the contestants learn to respect the ability of the opponent to inflict injury and appreciate that victories are expensive, they will be willing to arbitrate, provided, of course, they have confidence in the tribunal proposed." On the whole Trade Unions have been warm advocates of conciliation and arbitration for many years. This is clearly shown by the numerous resolutions passed at the Trades Union Congresses, which have been held annually since 1868.f Further, * Warrcan A. Reed, Chairman of the Massachusetts Board of Conciliation, in an article published in Peters' s " Labour and Capital.'' t As an example, the following resolution, passed at the 9th Trades Union Congress in 1876 may be quoted : " That this meeting, recognising the benefits conferred on many of C 18 CONCILIATION AND ARBITRATION. tlie rules of many Trade Unions provide that all peaceful methods of effecting a settlement must be exhausted before a strike is declared. There is also no lack of evidence to show the opinions of prominent individual trade unionists, who are almost wholly favourable to conciliation and arbi- tration. I shall limit myself here to quoting three recent expressions of opinion of English Trade Union officials. Mr. T. A. Flynn, of the Amalga- mated Society of Tailors, says : "I am in favour of all or any kinds of organisation, which shall tend to rob strikes of their brutality and which shall give reason and right fair play in industrial dis- putes." * In the opinion of Mr. W. Dyson, of the Amalgamated Papermakers' Union, " anything tend- ing towards the settlement of disputes without re- sorting to strikes, must commend itself to all con- cerned." -f- Mr. C. W. Bowerman, of the London Society of Compositors, expresses himself as follows : "I should welcome in England any movement having for its object the bringing together of employers and employed for the purpose of settling the terms and our great industries by the adoption of the principles of arbitration and conciliation, pledges itself to make every endeavour to extend the application of those principles to cases of dispute, in which there may be a prospect of peace- ful settlement by such means." * Report of the Mosely Industrial Commission, p, 160t t Report of the Mosely Industrial Commission, p, 220, INDUSTRIAL DISPUTES. 19 conditions of employment or of amicably arranging disputed points. " * Having assured ourselves of the favourable light in which trade unions regard conciliation and arbi- tration, we must next consider how far they are able to see the awards carried out. The responsiblity of unions to do this is an entirely moral one. Trade Unions recognise from long experience, that if they wish to retain the respect of their employers, they must carry out their agreements, and the force of public opinion also tends to oblige them to do this. The question of enforcing awards is exceedingly difficult and various proposals, from compul- sion downwards, have from time to time been made. There will be reason to refer to this question fre- quently during the course of the essay, but it may just be mentioned here, that in some observations appended to the Reports of the Royal Commission on Labour, the incorporation of Trade Unions was suggested as a remedy. As this question does not, strictly speaking, enter into the subject-matter of * Report of the Mosely Industrial Commission, p. 232. The organisation of which these three trade unionists are thinking when writing their reports, is the National Civic Federation of America, of which details will be given below on page 73 ; at the same place a copy of a document dealing with the Federation will be found, which was signed by all the members of the Mosely Commission. The best collections of the opinions of English and Ameri- can trade miionists on the subject of conciliation and arbitra- tion, besides the report of the Mosely Industrial Commis- sion, are the reports of the Royal Commission on Labour, the reports of the American Industrial Commission and the reports and publications of the National Civic Federation i c2 20 CONCILIATION AND ARBITRATION. this essay, I shall not discuss the pros and cons here, but shall refer to the fact only, that trade unions and employers can, at the present day, if they so wish, enter into an agreement to be pecuniarily liable for a breach of an award, as has happened in the Lei- cester Boot and Shoe Trade ; * it is also generally admitted that few arbitration awards have been broken by Trade Unions, the moral responsibility of the larger unions, in any case, usually being quite sufi&cient to prevent a repudiation. f After discussing at some length the attitude of Trade Unions towards conciliation and arbitration and their influence in upholding awards, we may next turn our attention to the employers and examine * This point will be discussed more fully on page 60. •j- For information about the incorporation of Trade Unions the reader may consult in the Fifth and Final Report of the Royal Commission on Labour, part I, the observations appended to the report by the Chairman (the Duke of Devon- shire), Mr. David Dale, Sir Michael E. Hicks Beach, Mr, Leonard H. Courtney, Sir Frederick Pollock, Mr. Thomas H. Ismay, Mr. Geo. Livesey, and Mr. Wm. Turnstill, pp. 115-9, and the Minority Report of Messrs. W. Abraham, M. Austin, J. Mawdsley and Tom Mann, pp. 127-47. Oilman deals with the subject at considerable length in his " Industrial Peace," pp. 149-197. The best collection of recent opinion will be found in the Monthly Review, the publication of the National Civic Federation, for April, 1903, where the opinions of employers, wage eai-ners, the general pubUc, and the mem- bers of the Bar in particular, are all represented. An article in the Edinburgh Review, January, 1900, strongly favours the assumption by trade associations of a legal personality.- What the incorporation of trade unions would really in- volve is well shown by Clement Edwards in the Nineteenth Century, Feb, 1902 : " Should Trade Unions be incor- porated ? '' INDUSTRIAL DISPUTES. 21 their attitude. There can be little doubt that among the early diflficulties of conciliation and arbitration was the unwillingness of employers to recognise Trade Unions. This is now no longer so, and em- ployers have come to recognise that organisation on the part of the workmen is essential to successful negotiations. It has now often come to the point where employers themselves form an organisation, in order to be able to deal better with the Trade Unions, According to Mr. M'Pherson,* the men even prefer to deal with employers organised into an association TABLE SHOWING THE NUMBER OF ASSOCIATIONS OF EMPLOYERS AT THE BEGINNING OF 1902 AND OF TRADE UNIONS AT THE END OF 1901 IN THE UNITED KINGDOM. t Associations of Employers. Trades. Federa- tions & National Associa- tions. Local Associa- tions. Total. Trade Unions. Building Mining and Quarrying - Metal, Engineering and Shipbuilding Textile Clothing Miscellaneous 24 2 3 4 4 15 390 34 95 46 62 169 414 36 98 50 66 184 125 59 263 243 48 498 Grand Total 52 796 848 1,236 * Bulletin of the United States Department of Labour, No. 28, p. 459. t Compiled from the Ninth Abstract of Labour Statistics of the United Kingdom, 1901-2. 22 CONCILIATION AND ARBITRATION. rather than with individual masters. " The former are regarded as more liberal and less selfish than the latter, and much personal bitterness is eliminated." Whether the men favour organisa- tions among employers or not, it is quite certain that they should tend to encourage conciliation and arbitration, for the greater the respect one party has for the fighting powers of the other and the more each sees that defeat is about as likely as victory, the more will arbitration be substituted for war. Figures are quoted above showing the number of associations of employers in various trades and the corresponding number of Trade Unions. For pur- poses of comparison I give the number of Trade Boards in the United Kingdom in 1903.* Building Trades 50 Mining and Quarrying - - - 21 Metal, Engineering and Shipbuilding - 35 Textile Trades 3 Clothing Trades 22 Miscellaneous Trades - - - - 11 Total 142 These figures must not be taken as complete indications of the extent to which peaceful methods of settling disputes exist in the different trades. In the cotton industry, for example, no per- manent Board exists, and whenever any point of dispute arises, the officials of the local associations * The figures are compiled from the Directory of In- dustrial Associations in the United Kingdom in 1903, of which^the Board of Trade published a 3rd edition in 1903. INDUSTRIAL DISPUTES. 23 generally arrange matters, and exactly the same happens in other industries. It must also be re- membered, that a large majority of the existing Boards never settle any cases at all during the course of a year.* In this chapter many points have been dealt with; the recent growth of the wages problem ; the impos- sibility of an absolutely fair rate of wages, and the consequent importance of the question of wages as a cause of disputes ; the existence of two distinct classes of industrial disputes, the one arising out of the interpretation of existing contracts, and the other out of the terms of future contracts ; the number of strikes and lockouts in different countries ; an analysis of the causes of industrial disputes, and the relation of organised employees and employers to strikes and to conciliation and arbitration. There just remains to be emphasised the fact that strikes and lockouts are very costly, and that they very often not only influence the parties immediately concerned in them, but also many of the general public. It is usually this latter point which is brought forward as the justification of compulsory arbitration ;t there will be, however, an occasion to enter fully into this later on '. and here it suffices to say that many do not * The number of Trade Boards settling cases in 1903 was sixty. The figures for the last ten years will be found on page 54, f See Reeves, State Experiments in Austraha and New Zealand, and the writings of other staimch upholders of compulsory arbitration, as, for example, B. R. Wise and H. D. Lloyd. 24 CONCILIATION AND ARBITRATION. consider the costliness or the wide-spreading influence of strikes the sole, or even the primary, justifica- tion of conciliation and arbitration, for the very nature of the wages problem itself, requiring, as it does, quiet discussion by clearsighted, coolheaded and moderate men, proves the necessity of concilia- tion, and possibly of arbitration. We may now enter upon a general discussion of this subject, and in the first place the importance of the distinction between conciliation and arbitration will be fully explained. CONCILIATION v. ARBITRATION. 25 CHAPTER II. CONCILIATION v. ARBITRATION. At the outset it will be as well clearly to define tlie terms which are to be used in this chapter, so as to avoid confusion as far as possible. Arbitration has been defined as "an authoritative decision of an issue, as to which the parties have failed to agree, by some person or persons other than the parties." Conciliation, on the other hand, is " the discussion and settlement of a question between the parties themselves, or their representatives, who are actually interested." It is also necessary to understand two other terms which frequently occur in the litera- ture of conciliation and arbitration. " Mediation," strictly speaking, is " the intervention of some outside person or body with a view of bringing together the parties to a dispute in conciliatory conferences." The word is much used in America*, though very often simply in the sense of conciliation!. " Collective * e.g. the New York State Board of Mediation and Arbitra- tion is the name of one of the best known Government Boards in America. f An example of this will be fomid in a table in Vol.- XVII of the Reports of the American Industrial Commission, quoted on page 142 of the essay, where the number of cases of successful and unsuccessful mediation is given, quite apart from the action taken by the initiative of^the board* 26 CONCILIATION AND AKBITRATION. Bargaining " is a term first invented by Mr. and Mrs. Webb*, and is used to signify " the process by which the general terms of the labour contract itself are determined by negotiation directly between the employers, or employers' associations, and organised working men." When one remembers that all piece rate scales and all sliding scales are examples of collective bargaining, it is not difficult to under- stand that this form of contract is very common. A collective bargain, however, requires a certain amount of regulation, and some system of joint committees or conferences is generally organised at the same time as the contract is made. These wages boards, or whatever else one chooses to call them, although very often, strictly speaking, not boards of conciliation and arbitration, may easily be confused with such, and for all practical purposes may be treated as such. Having pointed out of what collective bargaining really consists, no further attempt will be made in this essay to distinguish it from conciliation and arbitration. The confusion between mediation and conciliation has already been referred to above ; it must be further mentioned here, that conciliation and arbitra- tion are also very often confused. It is not at all uncommon to find the word arbitration used to in- clude what is in reality conciliation and media- tion. There is also a good deal of justification for this broad use of the term ; one thing very easily * There is a very good chapter on the subject in their In- dustrial Democracy. CONCILIATION v. ARBITRATION. 27 passes over into tlie other. After the " mediation " of a third party has been successful and a conference has been arranged, an independent chairman is generally appointed. If he tries merely to induce the two parties to come to an agreement, "conciliation" takes place, but if he has a casting vote, it is practi- cally " arbitration." The distinction between con- ciliation and arbitration is so closely associated with their respective advantages and disadvantages, that further discussion of the point is unnecessary here ; it has only been mentioned as a warning to the reader, not to think that "arbitration," "conciliation," and " mediation" are used by all writers in the sense in which they were defined at the beginning of this chapter. Everybody practically understands that boards of conciliation, where employers and workmen meet to talk over subjects of dispute, are valuable means of maintaining industrial peace. The other very excellent efiects of the boards generally come in for very slight recognition only. People do not usually appreciate the splendid service rendered by the boards as educators. It is by frank and free intercourse at the meetings of the board that employers and work- men learn to know each other, their respect and esteem for one another is increased, and mutual con- fidence is encouraged. The workmen begin to appreciate the infinite complexity of the problem of distribution, and also that wages are not deter- mined by employers but by economic forces acting through them ; on the boards, workmen are often in 28 CONCILIATION AND ARBITRATION. a position to obtain a correct knowledge of the needs of a trade, and if they see for themselves that facts require a reduction of wages, the chances of a strike occurring are very greatly reduced. Employers, on their part, come to look at the human side of busi- ness and learn to understand, often for the first time, that what appear to them to be but unimportant trivialities, may affect the whole future of many families ; their outlook is widened and they appreciate better their responsibilities as employers. Boards of conciliation would be valuable if they offered means only of securing industrial peace ; but seeing that they form an excellent remedy for the want of con- fidence, the suspicion and the prejudice which exist between employers and employed, they are doubly valuable. In spite of the excellent education which the boards provide, so much of the spirit of antagonism sometimes remains, that it is found desirable to have an independent chairman, whose duty practically is to keep the parties in a good temper whilst bargain- ing. The conciliator draws out the best points in each party's case and restates them in the most per- suasive form, eliminating from the controversy all unnecessary sources of irritation. He inquires into the real facts of the case and makes them known to both parties. He also tries to be suggestive and fertile in devising possible solutions. Were it practicable, it would be best to settle all cases of dispute by conciliation, which is distinctly more satisfactory than arbitration, because mutual CONCILIATION v. ARBITRATION. 29 concessions are much, to be preferred to authoritative decisions. The large majority of differences are settled by conciliation, but sometimes, whilst dis- tinctly wishing to arrive at a peaceful settlement, neither side will give way, and it becomes absolutely necessary to reach a definite settlement by arbitra- tion. Conciliation is something informal and friendly ; each party is candid and lays the facts at its disposal fully before the other party ; the disputants endeavour to convince each other, whilst in the more formal and judicial-like arbitration, they attempt to con- vince a third party, and advocacy is substituted for a simple appeal to facts. People do not always attend an arbitration in the right spirit, willing to assist the arbitrator to come to a fair decision, but often go with a feeling of antagonism, wishing to gain the day at any price. This, however, is not really so much a difficulty as a characteristic of arbitration, but real difficulties do exist, which I purpose examining next. The first serious difficulty of arbitration is the choice of an arbitrator, and it is a double one. Should he, or should he not, be connected with the trade ? and should he be a permanent officer, or be chosen to decide a particular case ? Taking the former point first, we will consider what are the advantages and disadvan- tages of each course of action. It is absolutely essential that both parties to an arbitration should consider the umpire quite impartial and free from bias. At the same time, it is very desirable, if the arbitrator is to understand properly the case before him, without the arguments and discussion being unduly extended, 30 CONCILIATION AND ARBITRATION. that lie should have at least some knowledge of indus- try in general, if not of the particular trade in which the case has occurred. The ideal arbitrator is an unbiassed man connected with industry, but unfortu- nately it is not always possible to find such a man, who is acceptable to both parties, and then it becomes necessary to choose some one unconnected with trade, against whom no possible imputation of bias can be made. As far as England is concerned, members of this latter class have often been as successful arbitra- tors as members of the former ; the late Judge Kettle, Lord Brassey and Lord James of Hereford, all gentlemen practically not connected with mining or manufacturing, have been no less successful as arbitrators than the late Rt. Hon. A. J. Mundella, the Rt. Hon. J. Chamberlain and Sir David Dale, Bart., who are, or were, closely connected with some industry. It will be noticed that all the gentlemen mentioned above are members of the brain-working class. The same observation might be made of almost all arbitrators. Mr. and Mrs. Webb have investigated this question carefully and have come to the conclusion, that this class alone is capable of bringing to the task the highest qualities of training, impartiality and judg- ment. Out of the two hundred and forty arbitrations ranging from 1803 to 1897, which they investigated, only in one case, in an arbitration for a new agreement between employers and employed, had a member of the wage-earning class been chosen as 'umpire.* * See Webb, Industrial Democracy, p. 231, CONCILIATION v. AKBITRATION. 31 As to the second point, whether the umpire should be a permanent officer, or chosen to decide a particular case, there can be no hesitation in saying that he should be selected by the board with a tenure of office the same as the board. If no appointment is made until a dis- pute has arisen, a spirit of struggle once being in the air, it is very improbable that the board will be able to agree in the appointment of an umpire, and it will be necessary to ask an outside person or body to nominate one. Generally the appointments made by such out- side person or body, as for example by the Speaker of the House of Commons or by the Board of Trade, are satisfactory, but still it is not surprising to find that one party sometimes refuses to agree to arbitration at all, when it does not know who the arbitrator is to be. On the other hand, if a board when first elected cannot agree in the appointment of an umpire, there is not the same objection to asking an outside person or body to nominate one, for in this case, when a dispute does arise, the parties, before accepting arbitration, know who the umpire will be. In all cases it is best if the board can agree among themselves in the choice of an arbitrator, as they will then have more con- fidence in him and will be less likely to be dissatisfied with his decisions. What has been discussed above is a real diffi- culty of arbitration, but it can at least be satisfactorily solved. The same, unfortunately, cannot be said of what is now about to be mentioned. The fundamental difficulty in disputes arising out of the terms of future 32 CONCILIATION AND ARBITRATION. contracts is the want of principle by wliicli the arbi- trator can determine his decision ; it is hardly possible to find a basis upon which to make awards and there is also a deficiency of data for the arbitrator to work upon. The difficulties of the arbitrator were once well expressed by Judge Ellison, when acting as umpire in the South Yorkshire Collieries Arbitration, 1879.* " It is for the one side to put the men's wages as high as it can. It is for the other side to put them as low as it can. And when you have done that, it is for me to deal with the question as well as I can ; but on what principle I have to deal with it, I have not the slightest idea. There is no principle of law involved in it. There is no principle of political economy in it. Both masters and men are arguing and standing upon what is com- pletely within their rights. The master is not bound to employ labour, except at a price he thinks will pay him. The man is not bound to work for wages which won't subsist him and his family sufficiently and so forth. You are both within your rights and that's the diffi- culty I see in deahng with the question." Practically the arbitrator is obliged to take a great many things into consideration : the movements in demand and supply of labour and product ; the keenness of competition ; the alterations in the price of the product ; the living wage required by the workman ; and the length of training the skilled mechanic has undergone. Besides the true facts of the case, or as many of them as have been explained * The words are taken from the Report of the Arbitration, p. 49. They are quoted in Webb, Industrial Democracy, p. 229, CONCILIATION v. AEBITRATION. 33 to the umpire, some account must also be taken of the fighting forces of the two sides. A very common thing for the arbitrator to do, is to " split the difference," i.e., award a wage which is the mean between the rate demanded and the old rate, or the rate demanded by the other party, as the case may be. It often happens that when the men demand an increase the masters call for a reduction of wages. On the face of it this seems ridiculous, because trade must have become either better or worse, and although both parties may differ as to the extent of the alteration, it seems incredible that they should difier as to its direction. The chances are a thousand to one that they do not, but, knowing that the arbitrator will probably " split the difEerence," it is to the masters' advantage to make a demand in the other direc- tion in order to reduce the amount of the rise awarded to the men. One party is as bad as the other in demanding extreme rises and reductions, and the system undoubtedly cultivates a spirit of anta- gonism between the two parties. " Splitting the difierence " is in every way a most undesirable practice, and the sooner the rules of the permanent boards forbid it, the better, for then alone will each side act in a spirit of moderation.* Seeing that the decision is not a question of right and wrong, but one of opinion based upon the facts * One of the rules of the Board of Concihation of the Federated Districts in the Coal Industry forbids the " sphtting of differences." Though I know of no other rules doing so, it is very probable that some exist.- D 34 CONCILIATION AND ARBITRATION. laid before the arbitrator, it is not surprising that it does not always give satisfaction to both parties. In fact one can almost say, that it is hardly ever satisfactory to both parties, which is easily under- stood when one remembers that arbitrations usually occur in connection with wages problems. An arbitration may be said to be successful when the decision is accepted, and, generally speaking, awards are very seldom repudiated in this country. The acceptance of an award is often facilitated if it stipulates a minimum wage and possibly also a maximum wage.* An advantage of conciliation is, that there is not the same likelihood of a decision being rejected, seeing that both parties have participated in drawing up the agreement. The question of the repudiation of an arbitration decision is closely connected with that of its enforcement, but the discussion of this point will be deferred till Chapter V. It may be asked whether the difficulties of arbitra- tion are not so great as to be insuperable. This is certainly not so, for arbitrations are often successful, largely, perhaps, because all the difficulties do not arise simultaneously. But even if arbitration is successful, conciliation is still preferable by a long way, though it is necessary to have some * Mr. Thomas Ashton, secretary of the Miners' Federa- tion, is of the opinion that if a minimum wage had not been granted by the owners in 1893, the majority of the men would not have agreed to the terms of the settlement. See M'Pherson, Voluntary Conciliation and Arbitration in Great Britain, p. 482. _ CONCILIATION v. ARBITRATION. 35 provision to resort to arbitration in those extreme cases where a deadlock may otherwise arise. Em- ployers, employed and the general public are almost unanimous in preferring conciliation to arbitration, but want of space forbids me to quote more than two or three of the most authoritative opinions. R. Spence Watson, the well-known arbitrator, expressed himself as follows : — * " Arbitration is better than striking or locking out, but inferior to conciliation. Industrial peace in any form is better than industrial war." The next opinion I quote is that of the Indiana Labour Commission. f " The experience of the Commission proves that con- ciliation rather than arbitration is the more effective and satisfactory method of settling disputes between capital and labour. . . . Men are adverse to leaving questions involving the correctness of their methods and the well- fare of their business to the judgment of others and especially when the latter may have only a rudimentary knowledge of the intricate matters which labour contro- versies usually involve. The results are very different where successful efforts at conciliation are exerted. The contestants meet, talk over grievances, discuss the interests of the business involved, come to a better knowledge of each other's wishes and needs, reconcile their conflicting opinions, and thus pave the way to mutual concessions and satisfactory agreements." My last quotation is from the Report of the New York State Board of Mediation and Arbitration for 1899. * Ironworkers' Journal, June, 1895. Quoted in Webb, In- dustrial Democracy, p. 241 n. f Report of the Indiana Labour Commission 1897-8, quoted in the Reports of the American Industrial Commission, Vol. XVII., p. 435. d2 36 CONCILIATION AND AKBITRATION. " More is accomplislied by mediation than by arbitra- tion. The board frequently finds one party or the other to a controversy, and sometimes both, disinclined to submit the matter in dispute to arbitration, though often in such cases conferences have been arranged through mediation, at which mutual concessions were made and agreements reached." Much stress has been laid upon the difierence between conciliation and arbitration throughout this chapter. It will, however, no longer be feasible to follow up this distinction carefully. The machinery, by which conciliation and arbitration are effected, is very often the same, and it is not always easy to say when one has been used and when the other. Again the informality of conciliation often leads to no account of it being kept, and almost all the reports of proceed- ings, which we have, refer to arbitrations. In fact, so little evidence is forthcoming as to what is done in the direction of conciliation, that it would be almost impossible to fill a chapter with it. Whilst not following the distinction between conciliation and arbitration systematically during the rest of this essay, frequent occasions will be found where it may be emphasised, and the fact that I am acting in accordance with the views of Professor Marshall * confirms me in my opinion, that I am justified in not maintaining a clear line of demarcation between the two throughout the essay. * In the preface to Price's Industrial Peace, Professor Marshall expresses the opinion that one is right in treating conciliation and arbitration together, although it may be con- venient sometimes to contrast the two methods sharply^ PRIVATE V. GOVERNMENT. 37 CHAPTER III. PRIVATE V. GOVERNMENT CONCILIATION AND ARBITRATION. Having discussed at some length in the last chapter the relative merits of conciliation and arbitration, we must now turn our attention to the bodies or persons who exercise the functions of conciliators or arbitrators. The most natural persons to do this are those concerned in the dispute, for it is primarily to their interest to settle it. The form, which their intervention may take, varies. The workmen in a body may interview the masters personally. This is only possible when the number of workmen is not very great ; otherwise it becomes necessary to conduct the negotiations through representatives, who may be appointed either when a particular occasion arises, or for a certain period. The employers also, if they are numerous, are often represented by delegates ; and when, in any given industry, an equal number of delegates from each side meet together periodically and act according to written rules, there is constituted what is known as a ' trade board.' The chief occupation of these boards is to settle the level of wages, but they also decide all questions dealing with the con- ditions of labour. The work of these boards is gener- ally efiected by conciliation, but some of the most 412720 38 CONCILIATION AND ARBITRATION. important ones, especially in those trades where fluctuations in prosperity are very considerable, have independent chairmen, who are given a casting vote, and in those cases where it is used, arbitration is practically substituted for conciliation. ' Trade boards ' are not only the most natural method of settling industrial disputes, but they are also the most satisfactory. All that was said in the pre- ceding chapter concerning the advantages of boards of conciliation, applies fully to ' trade boards,' which are permanent bodies, whose primary object is to settle disputes by conciliation. But these are not the only advantages enjoyed by ' trade boards ; ' no other body or person is in an equally good posi- tion to learn of coming subjects of dispute in their very earliest stages ; again, the fact that all the members of the board are well acquainted with the trade in which a dispute has arisen, tends to facili- tate a settlement being arrived at. No other system of conciliation and arbitration appears to equal that of ' trade boards, ' and in support of this view the very authoritative words of Colonel Carroll D. Wright, United States Commissioner of Labour, may be quoted.* " I do not hesitate to declare that the real results to be reached by arbitration and conciliation can be secured far more effectively and in a far more acceptable * The words are taken from a paper read before the National Civic Federation Conference at Chicago, Dec. 1900, and pubUshed in the second part of the report of the proceed- ings of the Conference held under the auspices of the National Civic Federation at New York, 1901; PKIVATE V. GOVERNMENT. 39 manner through the trade board as it exists to-day in nearly all the industries in England, than by any other means." Another organised body undertaking the func- tions of conciliator and arbitrator is the ' district board.' These boards are usually established by local chambers of commerce and enjoy hardly any of the advantages of the ' trade boards. ' Although they generally consist of employers and employed in equal numbers, their educational value is almost reduced to nil, by the members belonging to difierent trades, in consequence of which employers and employees in the same industry do not meet, and by the rarity of the meetings. These boards are also at a dis- advantage with regard to obtaining early informa- tion of coming disputes, and probably two of their members at the most have any knowledge of the trade in which disputes occur. A ' general board,' which is practically a ' district board ' willing to act all over the country, is in a still less favourable position to learn when its services are needed. Other organised bodies undertake to act as con- ciliators and arbitrators, and in these the general public, besides employers and employed, take part. Such bodies, however, practically amount to ' general boards ' equipped with independent chairmen. The chief advantage they appear to enjoy over ordin- ary district and general boards, is that they are more likely to be supported by public opinion, which should tend to oblige people, in the first place, to submit their disputes to conciliation, or 40 CONCILIATION AND ARBITRATION. arbitration if conciliation fails, and in the second place, to abide by decisions. Even if this tendency were strong, which, is much to be doubted, the value of these bodies would fall short of that of ' trade boards,' which enjoy numerous advantages, that the others entirely lack. Lastly it may be mentioned, that single individuals are often successful as conciliators and arbitrators in industrial disputes. When a dispute arises in a trade, which possesses no organised board of con- ciliation and arbitration, both parties sometimes agree to try to obtain the services of a gentleman to act as umpire. Even if they cannot agree as to the appointment of such a gentleman, they may be able to settle upon some outside person or body* whose nomination of an umpire they declare themselves willing to accept. Permanent boards also sometimes obtain the services of an arbitra- tor in a similar way. At the present time in England the body, which is generally requested to make the appointment, is the Board of Trade, and this leads us to the fundamental question of this chapter : should the State undertake the office of conciliator and arbitrator, or not ? Chapter V. will be devoted to the discussion of the different kinds of government conciliation and arbitra- tion and here we have to consider the question only of the contrast between government and private conciliation and arbitration. In reply to the question, is State interference in this direction justifiable ? the answer can be given that it PRIVATE V. GOVERNMENT. 41 most certainly is, provided it is considered as complementary to private conciliation and arbi- tration and not as sufficient in itself. It is the duty of the State to do all it can to render easy the action of economic forces, and governments should provide all reasonable facilities for employers and workmen to bargain with one another. In so far as the State system should be complementary only to a private system, the exact form which the facilities provided by the government should take, must depend upon the private facilities for conciliation and arbitration. Although in the United Kingdom, with its splendidly developed private system, a Board of Trade appoint- ing umpires when needed may be quite sufficient, in other countries State boards may be necessary. This point will be fully discussed below, and we must now consider, why government and private conciliation and arbitration are only complementary to one another, and not complete in themselves. The great advantages of trade boards have been fully emphasised. District and general boards offer facilities for conciliation and arbitration, where trade boards are wanting. It is very possible that the facilities offered by the various boards are so complete that no State board is necessary. But there is one thing which no private body or person can do as well as the State, that is, undertake to appoint umpires, where employers and workmen cannot agree. Every one, remembering that he himself is a member of the State, and that it can have no object in wishing to injure him, is far more 42 CONCILIATION AND ARBITRATION. likely to be satisfied with an appointment made by it, than with one made by any private person or body of individuals, to whom selfish motives may always be attributed. It is clear that a private system can never be so complete as to be able to stand alone and be perfect, and the less complete it is, the more will be required of the government system. But however valuable as a complement to the private system the State system may be, it is far less capable of standing alone. No board organised by a govern- ment could be nearly so satisfactory as a trade board. All the educational advantages would be entirely missing. The State board could have nothing like the same facilities as the trade board for obtaining early information of coming disputes, and again, it could have no special knowledge of the various trades in which disputes might occur. As long as trade boards act as boards of conciliation, there cannot be the slightest fear of decisions being repudiated and the danger is exceedingly small, even when they act as boards of arbitration. But where employers and em- ployed are brought together by State boards, they can never be entirely free from the impression that they are litigants. Not only is friendly feeling between masters and workmen not cultivated, but dissatisfac- tion is far more likely to occur concerning decisions. The position of Governments with regard to con- ciliation and arbitration has been well expressed as follows : * * The passage is quoted from the Edinburgh Review, Jan., 1900.- PRIVATE V. GOVERNMENT. 43 " In such a matter [as conciliation] tlie State may facilitate, persuade and encourage ; but it cannot attempt to dictate. It may establish means of concilia- tion, but cannot order that they shall be used. Efforts to interfere with individual or corporate liberty of action or that freedom of contract, which is essential to sound commerce, have failed in the past and must inevitably fail in the future. Attempts have been made to fix the price of labour or the condition of work by direct or- dinance. They have never succeeded and never will succeed. Freedom of contract is as much a condition of liberty as freedom of speech ; on the other hand, the State would fail in its duty if it did nothing to facilitate methods of settlement of labour disputes, either by the establishment of accessible tribunals, or by the encourage- ment of voluntary boards of conciliation. It may pro- perly do much to perfect the machinery of settlement, though its power to insist on the use thereof is limited." The Royal Commission on Labour, whilst recom- mending that the Board of Trade should be given the powers it afterwards obtained by the Concilia- tion Act 1896,* expressed itself as follows, as far as the United Kingdom is concerned, with regard to private and State conciliation and arbitration : f " We hope and believe that the present rapid exten- sion of voluntary boards will continue, until they cover a much larger part of the whole field of industry than they do at present. This development seems to us at present the chief matter of importance, and it has the advantage over any systematic establishment of local boards, of greater freedom of experiment and adaptation to special and varying circumstances. At the present * For details erf the provisions of this Act see page 108. t Fifth and Final Report of the Royal Commission on Labour, Part I., § 302. 44 CONCILIATION AND ARBITRATION. stage of progress we are of the opinion, that it would do more harm than good, either to invest voluntary boards with legal powers, or to establish rivals to them in the shape of other boards, founded on a statutory basis and having a more or less public and official character." This short chapter, comparing and contrasting private and State conciliation and arbitration, must not be considered alone, but in conjunction with Chapters IV. and VI., where examples of the various kinds of private, and voluntary State, conciliation and arbitration are given. It is only after figures showing the work of trade boards have been contrasted and compared with those showing the work of State boards, that the great value of the work of the former will be fully under- stood. But in passing on to the next chapter, where private conciliation and arbitration are dealt with, one word of warning is necessary : it must not be forgotten, that a most valuable side of the work of these boards, the encouragement of good feeling between employers and employed by discussion round a common table, cannot be conveyed by jfigures. PRIVATE. 45 CHAPTER IV. PRIVATE CONCILIATION AND ARBITRATION. The United Kingdom. — The first attempt to organise some permanent means of arranging future contracts peaceably, was made in 1836, when the Glasgow potters, after a strike, arranged to hold an annual convention to fix wages, and agreed that if any dispute should arise about the price to be paid in virtue of the convention, it should be submitted to a court of arbitration comprised of three masters and three workmen. In 1839 a movement started in the carpet weaving industry, to establish joint boards to examine the situation of trade and to fix wages. In 1857 some thirty of such boards existed and more than 2,000 workmen were controlled by them. After a strike in 1849 a joint board was established in the Macclesfield silk industry, con- sisting of twelve employers and twelve weavers, a president and a secretary, the two latter having no vote. The board existed for four years, and during this time the industry was quite free from important strikes. The immediate cause of the breakdown, was the refusal of a large manufacturer to submit to the system of fines and restraints 46 CONCILIATION AND ARBITRATION. imposed by tlie rules, but the real cause of the failure was the insufficient organisation of the workmen. Till 1860 there was no further permanent board, but individual arbitrations in different industries were not infrequent.* It is customary to overlook the early attempts at conciliation and arbitration mentioned above and to say that the first Trade Board was established in England in 18G0. Although this is not quite accurate, one is justified in saying that it was not till the beginning of the *' sixties," that conciliation and arbitration, as we know them to-day, were first developed, and the name most closely associated with this early move- ment is that of A. J. Mundella, who established the Nottingham system of conciliation and arbitra- tion in 1860. Prior to that year much bad feeling had existed between masters and workmen in the hosiery and glove trades, and strikes and lockouts had been frequent. There had been three strikes already in 1860 and another was threatening, when Mr. Mundella and some other employers sought to devise some method of avoiding them. Conferences between masters and workmen were arranged, and finally the " Board of Arbitration and Conciliation for the Hosiery and Glove Trade ' ' was successfully established. The object of the * For more detailed information about the period previous to 1860 the reader may consult the French Report, De la conciliation et de 1' arbitrage, etc., and H,- Grompton, Industrial Conciliation.' PRIVATE. 47 board was " to arbitrate on any questions relating to wages, which might be referred to it from time to time by the employers or operatives, and by conciliatory means to interpose its influence to put an end to any disputes which might arise." The board was to consist of eleven manufacturers and eleven operatives, elected annually. Before any cases were submitted to the board, they were to be investigated by a committee of enquiry, consisting of four members of the board. A month's notice was to be given to the secretaries before any change in the rate of wages could be considered ; meetings of the board were to be held quarterly, and might be especially convened at other times. The chairman in the original con- stitution of the board had a vote and a casting vote as well, in the case of a tie. This led to dis- satisfaction, and the board soon ceased to vote, and acted by unanimous agreement only. Later, the rules permitted a referee to be appointed for the occasion, when the board failed to agree. The board worked very successfully for about twenty years, but then fell into disuse and finally ceased to exist. The cause of the decline has been attributed to the interests of the different classes of workmen represented having ceased to be identical. The other early system of arbitration and con- ciliation, to which reference must be made, is the Wolverhampton system. In more than one way this is the complement of the Nottingham system. An agreement to establish a Board of Arbitration and Conciliation in the Building Trades 48 CONCILIATION AND ARBITRATION. at Wolverhampton was come to on March 21st, 1864. The original rules contained no provision for conciliation, but a rule was soon adopted. By the amended rules, disputes not affecting the general interests of the trade, were to be submitted for concilia- tion to two representatives appointed, one from the arbitrators elected by the masters, and one from those elected by the men. Only if no agreement was come to, was the dispute to be determined by arbitra- tion. The Board of Arbitration consisted of six masters, six men, and an umpire mutually agreed upon, who for many years was Mr. Rupert Kettle. The appointment of a permanent umpire differentiates this system from Mundella's. The other chief differ- ence is, that at Wolverhampton, provision was made for the enforcement of awards under Section 13, 5 Geo. IV. Chap. 96.* * 5 Geo. IV. Chap. 96, Sec. 13 provided : " if the parties mutually agree that the matter in dispute shall be arbi- trated and determined in a different mode to the one hereby prescribed [for which see page 100], such agreement shall be valid and the award and determination thereon final and conclusive between the parties ; and the same proceedings of distress, sale and imprisonment as hereafter mentioned shall be had towards enforcing such award (by applica- tion to any justice of the peace of the country, stewartry, riding, division, barony, city, town, burgh, or place within which the parties shall reside) as are by this Act prescribed for enforcing awards made under and by virtue of its pro- visions.'' The manner in which awards were to be enforced is pre- scribed in Section 24 of the Act, where it is provided : "if any party shall refuse or delay to fulfil an award under this Act for the space or term of two days after the same shall have been reduced to writing. , ; ; a justice PEIVATE. 49 The object of enforcing the contract was not to oblige a manufacturer to carry on his mill at a loss, or to compel a workman to work unless he chose. The chief aim was to check a sudden cessation of work on the part of the employees, which might involve the masters in very great loss ; and the rules required that one day's notice should be given by either side before work ceased. Having now touched upon the historical side of private conciliation and arbitration in the United Kingdom, we may next turn our attention to the exist- ing state of affairs. The method I purpose following is to examine the whole system of trade boards in a general way, and one or two of the more important in detail, and then shortly consider district and general boards. The number of trade boards existing in the United Kingdom in 1903 was 142,* which ; . ; on the application of the party aggrieved ; s ; is required by warrant under his hand ... to cause the sum or sums of money directed to be paid by any such award, to be levied by distress and sale of any goods and chattels of the person or persons liable to pay the same ; . . and in case it shall appear . . . that no suffi- cient distress shall be readily had . ; , any justice : : ; is required by warrant under his hand : : : to commit the person or persons so liable as aforesaid to the common gaol, or some house of correction. . ; and there to remain without bail for any time not exceeding three months.'' * This number and the detailed list are compiled from the Board of Trade Directory of Industrial Associations, 1903. E 50 CONCILIATION AND ARBITRATION. were distributed among the difierent trades as foUows : — Building Trades - Coal Mining Iron Mining Quarrying - ... Iron and Steel Trades - - 50 19 1 1 8 Engineering and Shipbuilding Other Metal Trades - - 16 11 Textile Trades - - 3 Boot, Shoe and Clog Trades - 18 Tailoring Trades Dock and Waterside Labour - 4 4 Miscellaneous - 7 Total 142 The number of boards must not be taken as indications of the degree in which peaceful methods of settling disputes are practised in the various trades. To estimate this fully we should have to consider the number of boards annually settling cases, the number of cases annually considered by the boards, and the number annually settled by them, and these figures we should have to contrast with the number of strikes in the various trades. I shall have reason to refer to figures illustrating all these points later on, but for the purpose of comparison, I have worked out figures below, showing the percentage of all these things happening in the various trades. The figures require no explanation, and a glance at them suffices to show which trades are well supplied with concilia- tion and arbitration facilities and which are not. On page 52, figures are produced giving details for PKIVATE. 51 TABLE SHOWING THE PERCENTAGE OF DISPUTES, EXISTING BOARDS, ACTING BOARDS, AND CASES CONSIDERED AND CASES SETTLED BY PERMA- NENT BOARDS IN DIFFERENT TRADES.* Percentage in the variouF Trades of Trades. Existing Boards in 1903. the average (1899-1903) No. of Acting Boards. Cases Con- sidered. Cases Set- tled. Strikes Building Trades - Mining and Quarry- ing - Metal, Engineering and Shipbuilding- Textile - Clothing Other Trades - 35 15 25 2 15 8 14 20 40 2 16 8 1 73 14 1 9 2 2 61 23 i 13 i 18 27 18 16 6 15 Total - 100 100 100 100 100 the five years 1899-1903, of the number of trade boards settling cases, and of the cases considered and settled by them in various trades. The most notice- able feature of the table is the increasing work done by the boards in the mining and quarrying trades. The table given on page 54, summarising the work of permanent boards of conciliation and arbitration , extends our information concerning these boards over a period twice as long as that previously considered, and also, with regard to the number of cases settled, gives us the important information as to how many * The figures are calculated from statistics from the Reports on Strikes and Lockouts* compiled i: 2 52 CONCILIATION AND AKBITRATION. Q * fc-l 00 WW WH ^^ OH Kpg pop? CO OS f-t •spiBog Aq pandas S8SB0 JO -O^I o«i* «e t» t- OS N -"i* S •spjuog Aq pajapisuoD 68SB0 JO -o^i' ujooin M M i-HC^ ■* 1-1 taoi 00 tD •spjBog Xq pajaptsuoo sasBO JO -0^ 05-*tH lAOSOe-lCOO r-io-* mmi-iooiN IM CD ■0<_ •S8SB0 3iniM8s spjtjog JO -0^ t-e<5S0 CO e<5 r-i 00 T* N 1 ■spjBoa Aq psn^jas S9SB0 JO -0^ r-(0 CO r-(rH O ■01 IH i-l in 00 CD •spi^og; Kq pai8pisuoo 698^0 JO -0^ (MCO.>t COrH -* 0_ rH i-l in ■* •B8S130 guineas spjBog: JO -ofj OSrH© rHMrHOOCOlN 10 OS spat'oa Xq pamgs eas^O JO '0^ coeoo CO-* t~ioco Ol 00 (N rH IN tD OSt^ [r-ICOCO CO 10 Trade Boards : — Building - - - . Mining and Quarrying - Iron and Steel Engineering and Ship- building Other Metal Trades Textile Trades - Boot and Shoe Trades - Other Trades - District and General Boards s H PRIVATE. 53 were effected by conciliation on the one hand, and by arbitration on the other. In this connection the increased proportion of cases settled by arbitration is very marked. In 1894 and 5 only 16 per cent, of the total settled cases were settled by arbitration, whilst the proportion in the following years was 25 per cent., 23 per cent., 28 per cent., 26 per cent., 27 per cent., 27 per cent., 24 per cent., and in 1903 no less than 36 per cent. The number of cases considered by the boards decreased till 1900, but since then has increased steadily. If we now compare this table with that on page 55, showing the agencies employed in settling strikes and lockouts, we shall see how very small are the number of strikes settled by trade boards. The explanation is, that the great mass of the work of trade boards is done before any strike occurs, and it is perfectly certain that this is by far the most valuable part of their work, for it is exceedingly difficult for any other organisation, whether instituted by private individuals or by governments, to intervene success- fully before a rupture has taken place, and at all times the guiding motto should be, " Prevention is better than cure." If we next consider the arrangements which exist in one or two of the more important industries for the settlement of any disagreements, which may arise, coal mining calls for the first mention. This industry is prominent both on account of the considerable number of strikes occurring in it and of the excel- lent facilities which it possesses for avoiding them. The number of workmen employed in the industry 54 CONCILIATION AND AKBITRATION. a "-A o o %^ HP P5^^ HO Kg I— I e5 SO p COO CO |tO to 1 1 1 1 1 1 00 00 to (M p _ - P3 m o ° t»rH 00 Tjlt, PH rHCD t> 1-1 f-i (M 1 '-' rH CO to <3> o °^ rH 1 rH rH oa ^ <1 * o (MTi< CO TjlO ■* N 05 rH 1 1 1 1 COCO rH S CO S iH 1 1 i-((N ■* Oo _ P2 o N-* to 0>O 05 rHlO to '-' 1 T-< 1 COOS M tn rH *"* 1 1 rHrH CO 1 S- a. 03 in 1 lO rHlO to rH rH (N \a 1 >n 1 NtD 00 o fiH S 1 (M 1 1 (NrH CO o h5 K3 *~^ "^ '^ OOr-c OJ 00 00 to •*co t- O CO CO c 1 COrH TT* c3 Sw » OrH ^ OIN r- t»rH 00 '-' 1 rH t^Td ,»l Hh ■^ rH ffj 1 NrH ■* r^OQ , oq 1 IM CO O CO 1 1 1 1 1 1 ino in PI rH 1 rH rH(M CO 1 1 1 1 1 1 (MN ■00 in -♦J g^ 2 "^ rH(M CO 1 1 1 1 1 1 rHf) 't gs I , t~ CO O rHtO l> 1 1 1 rH-* in O) CO (N "cS h4 r-^1 IM 1 1 1 rH C^ ■* 3 • ' g 1—1 ft) — go • • 1 1 I 1 i 1 p < coS o WW ) I 1 1 I • © -a 1 1 1 III III g . HH H PhO 1 1 1 I 1 ■ 73 HZ to "o -2 . . . . . . 00 "S o .2 1 1 1 ■ ■ I III 1 ^ "a a o O * f-iH ■ 1 , ? . . . TD • • 1 • • • III 02 O lis- ^ III I 1 \ llll a fl.2 o - gog ^ .2o 5 O J 03 O «^ go ago ©c^ Si3^ Se^ 13 O >- -do"- 2°tl caoiH gO] the carrying out of an agreement or a decision of arbitrators. One thousand pounds was deposited by the representatives of each side, and if any part of that sum is forfeited by either party, the sum must be made good again to the trustees. In 1899 a strike occurred, and the employers claimed com- pensation from the guarantee fund, and were awarded £300 by Lord James of Hereford, the outside umpire. In November 1902 a small strike took place and another claim was made upon the fund, and in this case Lord James imposed a fine of £5. The penalty clause of the agreement has proved quite satisfactory so far ; but the agreement as a whole is disapproved of by many, chiefly because almost every important decision has to be made by the outside umpire, as the national conferences are publicly conducted and neither the representatives of the employers nor those of the employed dare concede anything to their opponents. The very small facilities in the Textile Trades for conciliation and arbitration have already been referred to. This essay, however, would not be complete without a reference to the "Brooklands Agreement " which has been described as " the high- water mark of achievement in dealing with industrial disputes." One word may first be said with regard to the Board of Conciliation, which has been established in the Nottingham Lace Trade since 1868. This board is chiefly remarkable for the method employed of enforcing decisions. The 62 CONCILIATION AND ARBITRATION. rules provide tliat any member of the Lace Manu- facturers' Association who fails to comply with a decision regarding the prices to be paid, shall pay the costs of an inquiry into his action in addition to the difference in wages from the time of the com- plaint. If he refuses to do so, the employers' asso- ciation must refuse him any pecuniary assistance, while the association of operatives has full power to withdraw its members from the service of the employer. On the other hand, any member of the operatives' association who shall violate a decision must pay the costs of the inquiry. If he fails to do so, the operatives' association must pay the costs and must exclude him from all its benefits, or if it gives him assistance, it must pay a fine of £10. The Cotton Trade. — In most branches of the cotton trade, wages are fixed by the piece and the great complexity of the operations makes the determina- tion of the rates a matter of extreme difficulty. The settlement of minor technical points of dispute in connection with piece-work scales of individual mills, is mainly in the hands of the respective secre- taries of the local associations of employers and employees, who are practically permanent, paid officials. When it comes to revising the general agreement itself the machinery for collective bar- gaining takes the form of a joint committee com- posed of a certain number of representatives of each side. This committee may either be a district or a general one, according to the area affected. The regulations of these conferences are, as far PRIVATE. 63 as the spinning industry is concerned, generally covered by what is known as the " Brooklands Agreement." This provides, that every complaint must first be submitted by the secretary of the local association of employers or of employees to the secretary of the other organisation. If these fail to reach an agreement, the point at issue is to be discussed by a committee consisting of the secre- tary and three representatives chosen by the local organisations on each side. Should these still fail to reach a decision, the matter is referred, if either of the secretaries of the local organisations deem it advisable, to a committee consisting of four repre- sentatives of the federated association of the em- ployers and their secretary and four representatives of the amalgamated association of employees and their secretary. Until all these negotiations have been gone through, no strike or lockout can be countenanced. To settle the conditions of labour throughout a district, a general conference is held. It is provided that no change of wages shall be sought by either side, until at least one year after the date of the last change and no change shall exceed 5 per cent. In April 1900 some small modifications were introduced into the " Brooklands Agreement," but the leading principles are the same as before.* In 1899 and 1900 an attempt was made to establish a conciliation scheme in the cotton * For details of the amendments, see the Report on Changes in Wages and Hours, 1900, p. 226. 64 CONCILIATION AND ARBITRATION. spinning industry for the adjustment of wages in accordance with the state of trade, but after long negotiations the attempt proved unsuccessful.* District and General Boards. — The work done by these boards has already been referred to in the tables on pages 52 and 55, where the number of boards settling cases, the number of cases considered and settled, and the number of strikes settled by boards during the last years are given. In 1903 there were seventeen district boards f and four general boards % in existence. The majority of these boards have never come into operation at all, and the only one which requires any separate notice is the London Labour Conciliation and Arbitration Board. It was the London dock labourers' strike in 1889 which led to its formation. The rules were * See Conciliation in the Cotton Trade, Report of Negotia- tions 1899-1900, and Press Comments ; and L. L. Price, Con- ciliation in the Cotton Trade, Economic Journal, June, 1901. t The Boards were for Aberdeen, Birmingham and Dis- trict, Bristol, Derby, Dewsbury and District, Dudley and District, Halifax and District, Leeds, Liverpool and Vicinity, London, Macclesfield and District, Manchester, Plymouth, Ulster, Wakefield and District, WalsaU and District and Warrington. X These were the Industrial Union of Employers and Employed ; the Joint Committee of Trade Unionists and Oo-operators ; the National Industrial Association ; and the Board of Arbitration composed of representatives from the Scottish Section of the Co-operative Union, Ltd., and the ParUamentary Committee of the Scottish Trades Union Congress. This list and that of District Boards are taken from the Board of Trade Directory of Industrial Associations 1903, where the names and addresses of all the secretaries of the Boards will be found. PRIVATE. 65 adopted by the Council of the London Chamber of Commerce, on February 6th, 1890, and were finally revised and adopted at the first meeting of the board on December 12th, 1890. The board consists of twelve members, representing capital and employers, who are elected by the council of the chamber, and twelve members representing labour, elected by the employed. For the purpose of facilitating the election, twelve groups of trades" have been selected, each of which sends one representative to the board. The duty of the board is to promote amicable methods of settling labour disputes. They invite to friendly conferences parties to disputes, and if these parties choose, they may lay their case before the board. The board will in no case act as arbitrators unless invited to do so by both parties. The rules also permit of trade concilia- tion committees being formed in any trade carrying on its operations within the metropolis. Although the number of cases considered and settled by the board cannot be compared with the average work done by trade boards, it may fairly be said of this board, that it occupies an almost unique position in London in assisting to settle industrial disputes.! * The trades are as follows: — (1) Building trades; (2) cabinet and furnishing trades ; (3) carmen, coach, tram and 'bus employees ; (4) clerks, shop-assistants and ware- housemen ; (5) clothing trades ; (6) gas, coal and chemical trades ; (7) leather trades ; (8) metal trades ; (9) print- ing and paper trades ; (10) provision and food trades ; (11) railway workers ; (12) shipping trades. t The principal works consulted in writing this section were as follows : the Reports of the Royal Ooaimission F 66 CONCILIATION AND ARBITRATION. Sliding Scales. — It is not my intention to give liere an analytical account of the advantages and disadvan- tages of sliding scales, which has been well done elsewhere,* but to offer a description of their present position in the United Kingdom. The principle upon which a sliding scale is based, is that wages should vary according to profits, and though they do sometimes directly vary with such, calculated from the books of certain employers, prices or margins are generally taken in preference. The system is restricted on Labour ; De la Conciliation et de 1' Arbitrage, etc. ; the Reports of the American Industrial Commission, Vol. XVII. ; H. Orompton, Industrial Conciliation ; J. D. Weeks, Report on the Practical Working of Arbitration and Goncihation in the Settlement of Differences between Employers and Employees in England ; J. B. M'Pherson, Volimtary Concilia- tion and Arbitration in England ; S. and B. Webb, Industrial Democracy ; Reports on Strikes and Lockouts ; Report on Standard Piece Rates, 1900 ; Reports on Changes in Wages and Hours ; ConciUation in the Cotton Trade ; Report of Negotiations, 1899-1900, and Press Comments ; L. L. Price, Conciliation in the Cotton Trade, 'Economic Journal, Jime, 1901 ; the Rules and Annual Reports of the London Labour Conciliation and Arbitration Board ; the Board of Trade Directory of Industrial Associations, 1903. For the most recent developments the following have been used. The Labour Gazelle ; the Labour Notes of the Economic Journal ; the daily papers, especially the Man- chester Ckiardian, 28 Dec, 1903, 26 Feb., 1904, 10 March, 1904, 23 June, 1904, and 25 June, 1904 ; the Daily Dis- patch, 27 Feb., 1904, 25 May, 1904, and 26 Dec, 1904, and the Manchester Evening Chronicle, 2 June, 1904. * See, especially, S. J. Chapman, Some Theoretical Objec- tions to SUding Scales, Economic Journal, June, 1903. A bibliography of this subject will be found at the end of the sectiont PRIVATE. 67 by its very nature to the production of commodities in the earliest stages of manufacture, and has been most largely used in the mining, quarrying and metal trades. Some twenty years ago most colliers worked under this system, but the last sliding scale in this trade ceased on March 31st, 1903, and was replaced by the South Wales and Monmouthshire Coal Conciliation Board. In June 1904 an attempt was made to estab- lish a sliding scale agreement within maximum and minimum points for the coal industry of the Federated Mining districts, but it was unsuccessful as the parties were unable to agree to a basis between selling prices and wages.* At the present time the only sliding scales in the mining and quarrying trades are those used by two single firms in the iron-mining and lime- quarrying industries, and the use of sliding scales is now almost entirely limited to the pig iron manu- facture and the iron and steel trades. In the former there are eight, by which the Cleveland and Durham, Cumberland and North Lancashire, North Stafiordshire, South Staffordshire, and Scottish Blastfurnacemen, besides those of three single firms, are afiected. In the latter there are nine, affecting the North of England, Midlands,f South Lancashire and * See the Goal Gonciliation Board, Manchester Chiardian, 23 June, 1904. t Since this passage was written, three months' notice was given on September 10th, 1904, by the workmen — 20,000 employed by 156 firms — to terminate the sUding scale agreement in the Midland Iron Trade. It is the basis, which was fixed in 1887, which has caused the dissatisfaction, and it is very possible that some new agreement will be come to. F 2 68 CONCILIATION AND ARBITRATION. o o C5 o_ — ^ 1 x_ cr^ 1 1 1— 1 t-H 00 CI ci t-^ of '^ o CO O UO -+ t^ CO in 00 t-^ ^ o CO 00 CO 1 ^ '- f— < o> CD in o OJ^ 1 C3^ — o 00 »n CO cf l-H ^^ CI CO •* CD O O C5 Oi O' C5 O O , t^ X— , , =■■' CI CI 00 -«j^ o 1 CO Xr~ 1 1 in in t-^ CO 'i ' A ' I -p • , , . ^ . . .2 fl .2 ' ' -r) » ^ 2 SK Jh S ® S • :^ • • §>• ' f-i Cj O e3 " tc o ' el >3 a> 1 o I'l^l o hout Stril nder Slidi y Concilia tion - y Arbitrat y Mutual or otherw H Strike : Conciliai ion - Arbitral Mutual r otherw H Y. >>-^ >.>.° .-« P m pp pq ^^ mm ^ < Oh s O o PRIVATE. 69 South Yorkshire, and West of Scotland Iron Workers, the Consett and Jarrow Steel Millmen, and the Steel Workers of four single firms.* In these two branches of the metal trades sliding scales appear to have worked very successfully, and no one recognises this more fully than Mr. George Howell.f " Those only who can remember the frequent strikes and rioting in the ' iron district ' can reahse the enormous change which has taken place under the reign of the ' North of England Conciliation and Arbitration Board ' in the iron and steel trades, the ' Midland Wages Board ' and other boards, which have come into existence since the first were organised." The table on the preceding page, showing the methods by which changes in wages in the iron and steel industries were arranged, clearly illustrates the importance of the sliding scale in these trades. This will be seen even more easily from the following table, where the percentage of changes made under sliding scales, by other means without strike, and by all means after strike, are given : — 1896. 1897. 1898, 1899. 1900. 1901. 1902. 1903. Without Strike: Under Sliding Scales 75 82 88 68 82 80 61 97 Othenvise 25 13 12 32 18 18 39 3 After Strike 5 2 Total 100 100 100 100 100 100 100 100 * A complete list of existing sliding scales -n-ill be found in the Report on Standard Piece Rates, 1900, and in the Report on Changes in Wages and Hours, 1899. This list is brought up to date in subsequent Reports on Changes in Wages and Hours. fe I Labour Legislation, Labour Movements, and Labour Leaders, p. 441. 70 CONCILIATION AND ARBITRATION. xn < 1^ o ^^ CO n g^ ^O ow O^ o w CO P5 g CI CO 13,648 9,169 00 01 1 CO 01 «j 00 of C5 C<5 CO 1 -i- -1- 10 CO 1 10 CO 00 10 10 ++ 01 s OS Ci C CONCILIATION AND ARBITRATION. properly constituted boards of labour, conciliation and arbitration in all important centres of industry and commerce throughout the Empire. The London Labour Conciliation and /Vrbitration Board was particularly active in demanding legislation. In 1893 a Bill was introduced into Parliament by Sir John Lubbock representing its views. The Bill provided for the registration of boards of conciliation and arbitration, consisting of equal numbers of repre- sentatives of employers and employed. Registered boards were to have the power to examine witnesses on oath, and to require all documents to be brought before them, except such as a witness could not be compelled to produce on a trial of an action, and the books and accounts of any Trade Union. The Bill was also practically to endow registered boards with powers very similar to those of the French Councils of Prud'hommes.* It was in 1893 also, that Mr. A. J. Mundella, President of the Board of Trade, introduced his Bill for the promotion of voluntary boards of conciliation and arbitration, and other intervention by the Board of Trade. Neither of these Bills was passed in 1893, and both were re-introduced into Parliament in 1894 with slight modifications. It was in this same year that the Royal Commission on Labour issued its final report containing its recommendations. As we have already seen, the Commissioners expressed themselves as opposed to the investment of voluntary boards with * These will be dealt with in detail under French LegiBlation. See page 11 G. VOLUNTARY STATE. 107 legal powers, but favoured proposals similar to tliose of Mr. Mundella. In their opinion a central depart- ment, possessed of an adequate staff, might do much by advice and assistance to promote the more rapid and universal establishment of trade and district boards, adapted to circumstances of various kinds. Such a department would, if it thought fit, inquire into the causes and circumstances of a dispute ; invite the parties to a difference to meet together, with a view to an amicable settlement of the difference ; and also, upon the receipt of a sufficient ap- plication from the parties interested in a dispute, or from the local boards of conciliation, appoint a suitable person to act as arbitrator. In 1895 two Acts were again before Parliament, but it was not till August, 1896, that the Royal Assent was given to the Conciliation Act, which embodied the proposals of the Royal Commission on Labour. In the first place the Statute,* which is entitled " An Act to make better provision for the Prevention and Settlement of Trade Disputes," provides for the registration by the Board of Trade of any board established for the purpose of settling disputes between employers and workmen. A board apparently derives no advantages from registration under the Act, so that it is not surprising to find that the majority of the most important boards have not registered. By August, 1897, fifteen boards had registered; at the end of June, 1899, four further boards had registered, and the figure has remained at ♦ 59 and 60 Viot., ch. 30. 108 CONCILIATION AND ARBITRATION. nineteen ever since. The majority of these boards — viz., ten — are district and general boards, and the reader will be able to convince himself, by referring to the figures given on page 54, that these particular boards have not been very active iu the past in settling disputes, seeing that the average number of such boards settling disputes during the ten years, 1894-1903, was just two. The provisions of the Act for the settlement of disputes are as follows* : — " Where a difference exists or is apprehended between an employer, or any class of employers, and workmen, or between different classes of workmen, the Board of Trade may, if it think fit, exercise all or any of the following powers, namely : "(1.) Inquire into the causes and circumstances ot the difference. " (2.) Take such steps as to the Board may seem expedient for the purpose of enabling the parties to the difference to meet together, by themselves or their representatives, under the presidency of a chairman mutually agreed upon, or nominated by the Board of Trade, or by some other person or body, with a view to the amicable settlement of the difference. " (3.) On the appUcation of employers or workmen interested, and after taldng into consideration the exist- ence and adequacy of the means available for conciliation in the district or trade and the circumstances of the case, appoint a person or persons to act as conciliator or as a board of conciUation. " (4.) On the application of both parties to the difference, appoint an arbitrator." * The Statute will be found printed in full at the end of the biennial Reports on the working of the Act, the last of which appeared in 1903 (Od. 1846). VOLUNTARY STATE. 109 " If any person is so appointed to act as conciliator, he shall inquire into the causes and circumstances of the difEerence by communication with the parties, and other- wise shall endeavour to bring about a settlement of the difference, and shall report his proceedings to the Board of Trade. " If a settlement of the difference is effected either by conciliation or by arbitration, a memorandum of the terms thereof shall be drawn up and signed by the parties or their representatives, and a copy thereof shall be delivered to and kept by the Board of Trade." It now remains for us to consider what results have "been achieved by this Act. The tables which follow show us the number of cases which have been dealt with and analyse the figures in three diSerent ways. TABLE SHOWING THE SOURCES OF APPLICATIONS RECEIVED UNDER THE CONCILIATION ACT, 1896, AUGUST, 1896, TO JUNE, 1903.* Number of Applications. Source of Applications. Aug. '96 to June '97. July '97 to June '99. July '99 to June '01. July '01 to June '03. Total. Applications from both sides Applications from Employers only Applications from Workmen only. Actions taken with- out application 6 9 16 4 12 4 14 2 24 3 16 3 29 4 8 71 20 54 9 Total - 35 32 46 41 154 * Compiled from the Reports of the Board of Trade of Proceedings under the Conciliation Act, 1896. 110 CONCILIATION AND ARBITRATION. The first table shows the source of applications, and the most interesting point in connection with it ia, that nearly 50 per cent, of the applications were made TABLE SHOWING THE ACTION TAKEN UNDER THE CONCILIATION ACT, 1896, AUGUST, 1896, TO JUNE, 1903.* Aug. '90 to June '97 July '97 to June '99. July '99 to Juno '01. July '01 to June '03. Total. Disputes settled under the Act : By the appoint- ment of a con- ciliator or chair- man By negotiations of Board of Trade officials - By the appoint- ment of an arbi- trator 2 12 5 4 8 10 3 3 23 2 27 11 23 65 Total - Disputes settled between the par- ties during nego- tiations No settlement, in- cluding cases of appUcation re- fused by the Board of' Trade 19 4 12 22 3 7 29 3 14 29 4 7 99 14 40 Total - 35 32 46 41 t 154 t * Gompiled from the Reports by the Board of Trade of Proceedings under the Oonciliation Act, 1896. t Including one case pending at the date of the Report. VOLUNTARY STATE. Ill TABLE SHOWING THE TRADES AFFECTED BY THE CONCILIATION ACT, 1896, AUGUST, 1896, TO JUNE, 1903.* - Number of Cases. Trade. Aug.'96 to July '97 to July '99 to July '01 to Total. June '97. June '99. June '01. June '03. Building - Mining and Quar- 7 9 24 16 56 rying - Metal, engineer- ing and ship- building - Transport - Clothing - 4 12 4 4 9 6 3 3 7 6 o 5 6 1 21 31 14 6 Textile 3 2 3 8 Printing, book- binding, paper making - Other t - 1 1 2 1 3 4 6 7 11 Total . 35 32 46 41 154 by both sides. We shall notice lower down that only- some 2| per cent, of the applications under the French Law of 1892 were joint ones. The explanation of this contrast lies in the fact that in England we have a well-developed system of voluntary ar- bitration and conciliation, which the Conciliation Act, 1896, simply supplements. Both parties may * Oompiled from the Reports by the Board of Trade of Proceedings under the Oonciliation Act, 1896. t These consist of pottery (3) ; woodwork (2) ; horse collar making (2) ; bakers (1) ; fish dock labourers (1) ; coopera (1) ; and cabinet makers (1). 112 CONCILIATION AND ARBITRATION. be willing to arbitrate, but may be unable to agree about the umpire. In this case nothing is more likely than that they should avail themselves of the Board of Trade. It will be noticed in the next table, showing the action taken, that in almost two-thirds of the cases settled under the Act, an arbitrator was appointed. When dealing with French legislation we shall learn that exactly the contrary happened in France, where roughly 80 per cent, of the oases were settled by conciliation and only 20 per cent, by arbitration. In France we have already noticed that voluntary conciliation and arbitration arc little developed. Hence applications are often made for arbitration and conciliation under the French Law of 1892, which in England would have been made to voluntary boards. Just as in the latter case settle- ments are almost always effected by conciliation, 80 they are under the French Law. Applications are usually made to the Board of Trade, only after attempts at conciliation have failed ; hence it is not surprising to find that a majority of the cases are settled by arbitration. In France a first attempt at a settlement can usually only be made under the law of 1892, and consequently it is natural to find that conciliatory methods predominate. Figures for some of the American State Boards of Mediation and Arbitration* show us that a very similar state of affairs exists in the United States as in France, though in a less marked degree. * See p. 142, VOLUNTARY STATE. 113 This difference between Great Britain on the one hand, and France and the United States on the other, is also illustrated by the number of in- terventions made by the Board of Trade, Justices of the Peace, and the State Boards respectively, without any application from either party. It will be seen from the table showing the sources of application, that the Board of Trade intervened on its own initia- tive on nine occasions only during seven years, and that none of these occasions fell in the two years ending June, 1903. On the other hand, in France the justices of the peace intervened on nearly GOO occasions during the eleven years ending December, 1903, or, in other words, on 40 per cent, of the occasions in which the Act of 1892 was put into operation, the initiative came from the justice of the peace, as compared with 6 per cent, of all occasions upon which the Conciliation Act of 1896 was set in motion by the Board of Trade. Similarly, in the case of the Illinois State Board, action was taken by the initiative of the Board in some 50 per cent, of the total cases reported, and in Massachusetts this figure was even exceeded. "Whilst these figures undoubtedly speak highly for the excellent organisation of the English voluntary system of conciliation and arbitration, one must remember, when comparing the figures of the different countries, that the French and American authorities have always been zealous in offering their services in cases of dispute, and that the policy of the Board of Trade has" largely been one of I Ill CONCILIATION AND ARBITRATION. non-intervention, for which they have not infre- quently been blamed.* If we turn our attention to the last table, showing the trades affected by the Act, we shall notice that the building trade has been more affected by it than any other two trades put together. Two exjjlana- tions of this fact may be offered ; in the first place, the building trade is particularly liable to disputes, partly owing to the want of clear lines of demarca- tion among the different branches of the trade, and partly owing to the great fluctuations in prosperity to which the trade as a whole is liable ; in the second place, though this trade possesses numerous trade boards, the great majority of them are entirely inop- erative, and the activity of the rest is insufficient to meet all the requirements. Before turning our attention to French legislation, there remains for us to consider, whether, at any time since the passing of the Conciliation Act of 189G, there has been any demand for further legislation in Great Britain. There undoubtedly has been, and we get it clearly expressed in the following resolution, carried at the thirty-sixth Trades Union Congress, held at Leicester in September, 1U03 : — *' That in the opinion of this Congress, a court shall be formed, which shall have power to call compulsorily ♦ Mr, G. Howell, in his recent book " Labour Legislation, etc.," is not of this opinion, however, for he says of the Act : " Its success has been mainly due to the cautious and care- ful way it has been administered by the Board of Trade." p. Uo, VOLUNTARY STATE. 115 for evidence in any dispute, where the parties have not agreed to settlement within one month of the duration of a strike or loclcout. Either side of the disputants, or a pubUc governing authority, shall have power to call for an investigation and shall issue a public report, the latter only to be issued on the ground of disagreement between the parties concerned. The court to be con- stituted by equal numbers of employers and Trade Union representatives, and to be presided over by a chairman mutually agreed upon, or, failing agreement, the Board of Trade to appoint one under powers of the present Act. The court shall be movable, and shall have power to call for special commissions of investigation and re- port. This commission to be subsidiary to the central court of conciliation, but shall, if the parties affected agree to report and accept decision of the same, settle the dispute. The subsidiary courts shall be represen- tative of the industries affected. That the Parliamentary Committee draft a bill for the purposes aforesaid." So far nothing appears to have come of this resolu- tion and at present there is no prospect of the Concilia- tion Act, 1896, being amended, and it is doubtful if an amendment, empowering boards of conciliation to call compulsorily for evidence, will be passed in the near future, seeing that this is directly opposed to the recommendations of the Royal Commission on Labour, though it is true, as we shall see later, that a somewhat similar proposal has worked success- fully in Denmark on a small scale.* * The principal works dealing with English Legislation have aheady been mentioned above ; namely : the Reports of the Royal Commission on Labour ; De la Conciliation et de I'Arbitrage, etc. ; Reports of the American Industrial Oommission ; the biennial Reports on the Conciliation (Trade Disputes) Act, 1896 ; Jevons, State in Relation to Labour ; I 2 IK, CONCILIATION AND ARBITRATION. French Legislation. — In France a very clear dis- tinction is drawn between disputes arising out of the interpretation of existing contracts and those concerning the terms of future contracts ; and there are two distinct State methods of settling the two different classes of disputes. The former have been settled for almost 100 years by the compulsory system of the comicils of prud'honimes ; in the case of the latter, for some twelve years a voluntary system has existed, by which the Government places the services of its ofificials at the disposal of disputants in case of a threatened or existing strike, with the object of assisting in the settlement of the dispute by conciliation or arbitration. Councils of Prud'honimes. The first council was established by the law of March 18th, 1806, in Lyons. In the 18th century many of the old corporations, which had been dissolved in 1791, had had what and Howell, Labour Legislation, Labour Movements and Labour Leaders. It is important to add that it is often neeessary, and also sufficient, to refer to the original statutes.- In the majority of English works on Arbitration and Oon- ciliation, the English Legislation on the subject is dealt with, and it is only necessary to refer the reader to the bibliography at the end of this essay. It might be mentioned that the Acts of 1824, 1867 and 1872 are discussed in a short and concise manner b}^ J. D. Weeks in his Report on the Practical Working of Arbitration and Conciliation in the Settlement of the Differences between Employers and Em- ployees in England. The best and most accessible source for obtaining information about the agitation for further English Legislation since 1893 is to be foimd in the Annual Reports of the London Labour Conciliation and Arbitration Board, VOLUNTARY STATE. 117 was known as a common tribimal {trihuval commvM) for the settlement of disputes, but after 1791 these had to be referred to justices of the peace, and this method proved both costly and unsatisfactory. In 1805, when Napoleon was passing through Lyons, the silk merchants petitioned him to create some institution similar to their old " common tribunal," and this was done by the Act of the following year. The council consisted of five merchant manufacturers and four heads of workshops {chefs d' atelier), them- selves employers of labour, which practically amounted to nine employers forming the board. A committee of two was to be present daily from 11 to 1 at an office of conciliation, to settle small differences by means of conciliation whenever possible, and the council was to meet at least once a week to decide definitely those matters where conciliation had failed, and not more than 60 francs were involved. Between 1806 and 1809 councils were established in Rouen, Nimes, Miilhausen and several other towns.* By the decree of June 11th, 1809, the procedure to be followed in the future, in order to create councils, was definitely fixed. They were to be established at the request of a Chamber of Commerce or of a Consultative Chamber of Arts and Manufactures. The request was to be made to the prefect, who was to investigate it and forward it to the Minister of the Interior, who, on being satisfied that the industry of the town was important enough, would grant it. ♦ These were Avignon, Thiers, Sedan, Carcassonne, Nar- bonne, Saint-Quentin, Limoux, Rheims and Tarare. lis CONCILIATION AND AKBITKATION. This is the method followed more or less to the present day. By this same decree workmen were allowed to sit on the councils, but for many years afterwards the number of manufacturers on the council exceeded that of the heads of workshops and workmen. It is not necessary to deal in detail with all the small reforms which have been introduced into the councils by legislation* during the course of the 19th century, but we may at once consider the present constitution of these councils. They are created at the request of a local Chamber of Commerce by a State decree, which specifies the number of experts {prud' hommes) who are to form the council — the smallest number being six, including the presidents, who are elected by the council from amongst its members — over what district its jurisdiction is to extend, and what industries are to be subject to the council. Only those trades, in which materials undergo transformation, can elect these councils. The sufirage is given to all employers, heads of workshops, and workmen over twenty -five years of age who have resided three years in the district, and who have engaged in industry for at least five years. No one can sit upon the council who is not thirty years of age ; and an equal number of members are elected by each class. The president and vice-president must each represent difierent * The laws of 7tli August, 1850, 1st June, 1853, 4th June, 1864, 7th February, 1880, 23rd February, 1881, 24th Novem- ber, 1883, and 10th December, 1884, all deal with the CJouncilfl of Prud'hommes. VOLUNTARY STATE 119 classes. The term of service of members is six years, half the members retiring every three years. The members generally serve without pay, though the communes may fix rates of remuneration if they choose to do so. The council is divided into two, namely : (1) a committee of conciliation {bureau particidier), consisting of one employer and one workman, who endeavour to bring the disputants to a friendly understanding and, (2) a committee of judg- ment, consisting of a president (an employer) and a vice-president (a workman), who preside in alternate months, and two other masters and two other work- men. All disputes, which have not been settled by the committee of conciliation, come before the committee of judgment, which can pass final judg- ment in all cases arising out of the interpretation of a contract, not involving more than 200 francs. If the amount exceeds that sum, an appeal can be made to the tribunal of commerce. With regard to the work done by the councils, it is worth noticing, that the great majority of the disputes dealt with, are directly concerned with wages, e.g., questions concerning the exact amount agreed upon, the time and mode of payment, the amounts of fines, hours of labour, absences from work, defective workmanship, apprenticeship, valua- tion of piece-work and delay in completing task- work. The most striking feature about the councils is the preponderance of conciliation. The average annual number of cases dealt with during the "eighties" slightly exceeded 40,000, and of 120 CONCILIATION AND ARBITRATION. these two-thirds were settled by conciliation or withdrawn. At the present time more than 50,000 cases come before the committees of conciliation, some GO per cent, of the cases are settled by the committees or withdrawn, and only in about 15 per cent, is final judgment passed. On several occasions the Chamber of Deputies have passed bills to alter the existing law with regard to Councils of Prud'hommes, but in each instance the Senate has rejected them. The chief changes proposed are : that experts should be elected for commerce, agriculture and mining, that the mini- mum age of electors should be reduced to twenty-one and that of members to twenty-five, that foremen and chiefs of workshops should be counted as em- ployers, that employers and workmen should remain electors and eligible for membership on the councils for ten years after retirement, that the franchise should be extended to women over twenty-one, and that judgment should be final when the amount involved does not exceed 2,000 francs. The only suggestions which the Senate countenances are the extension of the jurisdiction of the councils to mining, and the raising of the limit, under which judgment is to be final, from 200 to 300 francs. It is possible that some alteration of the existing law may be made in the future, but so long as the proposals of the Chamber of Deputies remain as radical as they are at present, there seems little chance of a compromise being effected. The Law of December 21th, 1892. — There was nothing in the^'general law of France to prevent VOLUNTARY STATE. 121 the parties to a dispute from referring the matter to another party for settlement. On December 27th, 1892, however, a law was passed for the purpose of encouraging such references and making provisions for the means by which it could be done. It provides that " whenever disputes of a collective char&cter arise between employers and employees regarding the condition of employment, they may submit the question at issue to a board of conciliation, or, in default of an agreement being arrived at by this board, to a council of arbitration." In case a dispute arises, the employers and employees, jointly or separately, may notify a justice of the peace of this fact and within twenty-four hours he must inform the opposing parties or their representatives. If the parties accept, they must designate the names of the delegates, not exceeding five in number, whom they choose, to assist or represent them. The justice of the peace then invites the delegates to organise a committee of conciliation, and presides over the discussions. If an agreement is arrived at, it is set down in writing and signed by the delegates and the justice of the peace. If no agreement is arrived at, the justice of the peace invites each party to appoint one or more arbitrators, who in their turn, if they cannot agree, may choose a new one as umpire. If an agreement is come to at any time by arbitration, it must be set down in writing, and be signed by the arbitrators and sent to the justice of the peace. When a strike occurs and neither party to a dispute takes the initiative, the justice of the peace may 122 CONCILIATION AND ARBITRATION. invite the employers and workmen to submit their dispute to arbitration. Toundcrstandfully the law of December 27th, 1802, it is necessary to consider along with it the circular of the Minister for Commerce, Industries and Colonies, addressed to the Prefects on the application of the now law, and the circular to the Attorneys-General (procure (ivs (jen^i'dux) from the Minister of Justice. The former points out that conflicts between capital and labour re-^ult, for the greater part, from industrial expansion and development ; tliat the best means of avoiding irritation is to bring about more frequent meetings between the masters and men ; that further- more this view is justified by experience. The object of this law is to put masters and workmen in the same factory or the same industry in permanent relations and to permit them to look into and quietly decide their trade disputes, as soon as they appear, and finally unite the representatives of capital and labour in perfect agreement. The Prefects, the cir- cular continues, are best qualified to advise interested parties as to the new law, and hence much of its future success depends upon them. After a time the Govern- ment feels convinced that the workmen will them- selves recognise that the new law is adapted to save them from long stoppages and all the miseries which must inevitably ensue. On their side, the masters, conscious of their own interests, will certainly manifest a disposition to accept the new procedure. The cir- cular closes by requesting the Prefects,whenever an oc- casion arises, to influence the masters in that direction. VOLUNTARY STATE. 123 TABLE SHOWING THE APPLICATION OF THE ARBITKAnON LAW OF UEC. 27iil, 1892, IN FRANCE, 1893-1903.* 1893 18941895 1 1896 1897 18981899 1900 1901 1902,1903 1 1 1 1 1 1 No. of strikes 634 7 391 8 405 476 356| 368 740l 903 623 1 512 571 No. of cases in which the Act was put into operation before the com- mencement of a striice - 5 6 3 2 2 9 6 4 9 No. of cases in which the Act was put into opera- tion : — By employers - By workpeople- By both sides - By justices of the peace 5 56 2 46 4 51 2 44 2 46 3 34 4 67 4 39 4 46 1 37 3 57 2 32 1 112 4 80 6 141 8 79 5 67 3 67 5 60 2 40 3 89 2 58 Total ■ - No. of strikes settled before the formation of con- ciliation commit- tees - No. of refusals to settle by con- ciliation : — By employers - By workpeople - By both parties Total . - No. of conciliation committees formed No. of committees which settled dis- putes : By conciliation- By arbitration - 109 13 34 6 2 42 55 28 5 101 8 24 4 1 29 65 31 2 85 4 29 2 31 53 24 3 104 7 41 3 44 53 21 1 88 9 20 2 3 25 54 25 5 94 4 32 1 5 38 52 18 2 197 65 1 13 79 106 36 6 234 14 88 3 5 96 140 60 18 142 9 51 4 6 61 72 38 8 107 6 35 2 6 42 59 32 2 152 4 46 1 8 55 03 42 2 Total - • 33 33 27 22 30 20 42 78 46 34 44 * Compiled from Statistique des Greves et des Recours k la Conciliation ct a T Arbitrage; OflBce du Travail. Annually. 121 rONriLIATION AND ARBTTRATTON. The Minister of Justice in his circular says, that the choice of an authorised mediator and the organisation of a simple procedure have been the prevailing idea of the legislative body, which held that the former should be a person invested with the consideration and weight attaching to a servant of the public, and at the same time equally removed from political struggles and industrial quarrels. After describing the relation of a justice of the peace to conciliation and arbitration, the circular concludes by drawing attention to the fact that the only sanction the law provides to support the decisions of arbitrators is an appeal to public opinion, which will show itself justly severe on a strike without motive or on unjustifiable resistance to these councils of recon- ciliation and pacification.* On the preceding page a table will be found, showing the application of the law of 1892. The small number of joint applications, the large proportion of interven- tions by the justices of the peace, and the large num- ber of settlements by conciliation as compared with those by arbitration, have already been commented upon. It only remains to be pointed out that the * Copies of the law of December 27th, 1892, of the circular of the Minister of Oomraerce, Industries and Colonies to the Prefects about the application of the Arbitration Law, dated January 23rd, 1893, and of the circular of the Minister of Justice to the Attorneys-General about the application of the Arbitration Law, dated February 18th, 1893, are printed at the end of the report De la Conciliation et de 1' Arbitrage, etc. English translations %vill be found in the Reports of the Royal Commission on Labour, VOLUNTARY STATE. 125 number of cases, in which the Act was put into opera- tion before the commencement of a strike, are very few, which helps to explain the large number of refusals to settle by conciliation.* German Legislation. — Special courts for the settle- ment of industrial disputes have, in some form or other, been provided by German law since the beginning of the 19th century, though till recent times few people have seemed eager to avail themselves of the provision. At the time when the left bank of the Rhine was under the Napoleonic Code, councils of prud'hommes were established, and these remained intact when the provinces reverted to Prussia. By degrees others were established in different parts of the country, and by an Order of Council, of August 7th, 1846, these were given the name of Royal Councils. * The following works were consulted in writing this section ; De la conciUation et de 1' arbitrage dans les conflits collectifs entre patrons et ouvriers en France et a I'etranger ; Reports of the Royal Commission on Labour ; Reports of the American Industrial Commission ; Conciliation and Arbitration in France, Board of Trade Journal, February, 1893 ; Foreign Office Reports, Miscellaneous Series, No. 159, French Councils of Prud'hommes ; the Labour Gazette ; and Handworterbuch der Staatswissenschaften, art. Gewerbe- gerichte (Stieda). Statistical information concerning the Councils of Prud'- hommes will be foimd in the Bulletins de 1' Office du Travail, pubUshed annually since 1894, and figures showing the appUcation of the Arbitration Law of 1892 will be found in Statistique des Greves et des recours a la conciUation et a r arbitrage. Office du Travail, annually since 1893. There are numerous French works deaUng with the sub- ject discussed in this section, reference to several of which will be found in the Bibhography at the end of the essay. 126 CONCILIATION AND ARBITRATION. On February 2nd, 1819, an Act was passed to estab- lish Industrial Courts {Gewt:rbeorteent several months of the same year in Australasia, and in 1902 his work apjK'ared : " L' Evolution Sociale en Australasie." Mr. Tom Mann, the once well- known F]nglish labour loader, wrote from New Zealand in July, 19<)'2, " Conditions of Labour in New Zealand," pub- lished in the Ninelecnth Century and After, September, 1902. Of the New Zealand gentlemen who have written on the subject, by far the most important is the Hon. \V. P. Reevoa, Agent -tJeneral for New Zealand, who first introduced Com- pulsory Arbitration into New Zealand. Ilis chief work on the subject is his " State Experiments in .Vustralia and New Zealand." Other writings of his which may be consulted are " The Long White Cloud " ; Introduction to H. D. Lloyd's "Country without Strikes"; "Compulsory Arbitration at Work." Contemporary Review, Novemljer, 1897 ; " The Working of Compulsory Arbitration in Labour Disputes," Nntiottal Review, XXX., p. 360 ; and letters to the Times, December 31st, 1898. January 6th, 9th and 19th. 1899. Mr. H. H. Lusk is no less favourable to compulsory arbitration, as he showed in his evidence before the American Industrial Commission and in his articles, " The Successful Prevention of Strikes in New Zealand," World's Work, February, 1902, and '■ Compulsory Arbitration : The Experience of New Zealand," in Peters's '" Labour and Capital." Mr. 0. T. J. Alpers, in Irvine and Alpers's " Progress of New Zealand in the Century," is more descriptive than critical. Another New Zealand wTiter is Mr. Barclay : " Four Years of the Concilia- tion and Arbitration Act " (Dunedin Fabian Society). Two strong opponents of the system are Mr. F. G. Ewington : " The Truth about the New Zealand Compulsory Industrial Conciliation and Arbitration Act," and letter to the Auckland Star, May 16th, 1901 [See Appendix III.] ; and Mr. J. MacGregor " Compulsory Arbitration at Work," National Review, XXXIV., and " Compulsory Arbitration : COMPULSORY. M7 the Compulsory Arbitration Acts of to-day,* and it will suffice to say, that the first Act was passed in 1894, and that this was amended in 1895, 1896 and 1898, and consolidated in 1900. Since then two further Amendment Acts Is It a Success ? " Duncdin, 1901. [The 'writer was in the Upper House in New Zealand when the law was passed, and supported it, but he was so disappointed -nith its working that he wrote the pamphlet.] Other works which may be consulted on the subject are the following : — The Reports of the American Industrial Commission ; " State Arbitration and the Living Wage, with an Account of the New Zealand Law and its Results " (Fabian Society, London, 1898) ; N. P. Oilman, " Methods of Indus- trial Peace " ; A. Bertram, " Quelques Experiences de la Con- ciliation par I'Etat en Australasie," Revue d" Economie Poli- tique, 1897 ; A. Metin, Arbitrage et Conciliation en Nouvelle- Zelande, Revue d' Economie Politique, February, 1901 ; H. W. ^Macrosty, " State Arbitration and the Minimum Wage in Australasia," Political Science Quarterly, March, 1903 ; P. Leroy Beaulieu, " Les Nouvelles Societes Anglo-Saxonnes "; H. D. Lloyd : " Newest England " ; and " Australasian Cures for Coal Wars," Atlantic Monthly, November, 1902 ; M. Davitt, " Life and Progress in Australasia" ; F. Parsons: " The Story of New Zealand," and " The Abolition of Strikes and Lockouts," Arena, January, 1904 ; H. de R. Walker, " Australasian Democracy " ; J. S. Grey, " Australasia Old and New " ; P. Dutheil, " Un Pays Sans Greves," Le Cor- respondayit, December 2oth, 1900, and April 25th, 1901. The reader would do well to consult the numerous speeches made in the New Zealand Parliament, whilst the various Arbitration Acts were under discussion, and also the New Zealand newspapers. Several of these will be found in the Library of the Agent-General for New Zealand. * A good account will be found in Reeves, " State Experi- ments in Australia and New Zealand " ; Clark, " Labour Con- ditions in New Zealand " ; and Siegfried, " La Democratic en X iuvelle-Zelande." L2 148 CONCILIATION AND ARBITRATION. have been passed in 1901 and 1903. In this chapter I purpose giving a description of the law, its working and its efEects. Although it is very common to talk about the New Zealand Compulsory Arbitration Law, the correct title of the Act is the " Industrial Conciliation and Arbitration Act," in which there is not only no mention of " compulsion," but the word "conciliation" apjiears. The explana- tion of this is to be found in the duplex character of the machinery set up under the Acts. New Zealand is divided into industrial districts,* in each of which there is a board of conciliation, consisting of two representatives of the employing class, elected by the unions of employers, and two representatives of the working classes, elected by the unions of workers, and of a chairman, elected by the other four members, or appointed, in case these four fail to agree, by the Government. When an industrial dispute is referred to the board for settle- ment, it inquires into it, and assists the parties to arrive at an industrial agreement, when possible, and in the other cases makes a recommendation, as to w^hat the parties should or should not do. If the parties accept the recommendation, an industrial agreement to the same effect is drawn up. All industrial agreements are filed with the clerk of awards of the district, and become binding * Eight in June, 1903 ; see Clark, " Labour Conditions in New Zealand," p. 1187. COMPULSORY. 149 in the same way as an award of the court of arbitration. If no industrial agreement is arrived at, and the recommendation of the board is not accepted, the dispute is referred to the court of arbitration. This is constituted quite differently from the boards of conciliation. The president is a judge of the Supreme Court, appointed by the Government, and the other two members representing employers and employees, are appointed by the Government from nominees of the unions of employers and of employees respectively. There is only one court and it travels round the country hearing the disputes referred to it by the different boards. The boards may examine witnesses on oath, but the court has the further right to call for the production of books, and instead of making recommendations, which may be rejected or accepted, it makes awards, which are legally enforceable, a breach being punishable in the case of an employer by a fine not exceeding £500, and in the case of a union by each unionist being liable to a fine not exceeding £10. One of the questions which have been most debated in New Zealand, is the relative advantages and dis- advantages of the boards and of the court. The oricrinal idea was that the boards would be able to settle some 90 per cent, of the cases, whilst as a matter of fact they have not even settled 30 per cent. Some boards, however, have been far more successful in settling cases than others, as the following table will show : — 150 CONCILIATION AND ARBITRATION. TABLE SHU WING THE DISPL'TES SEITLED BY BOAKDS OK CONCIIJAI'ION AND BV THE COURT OEARBirKATfoN. AJ'KIL. lS'.»ti, To aihii JL'N'E. llMfJ.* Setthtl by Settled by Board. Court. Total. Aucklftnd Wi*lliiii,'t<)ii C'ant«Tbiiry Otajjo ami Soiitlxlantl VVestland ll> 10 Id 4 IT 41 40 41 4 30 4(5 50 67 8 Total - f)! 143 197 Various reasons have been given for the relative failure of the boards. In some cases a ^v^ong class of men have been appointed members of the boards. " Some members entirely fail to appreciate their function properly and become partisans, out and out, rendering their boards, boards of irritation rather than conciliation."! In March, 1001, a member of the Auckland Board is reported to have said : — " I give you notice, that I am here as a partisan ; I do not think that I am in the position of an impartial judge here. I am to represent one side of the case and intend to do so at every opportunity." t * Tlie table that is quoted by Mr. Clark, Labour Gonditions in New Zealand, p. 1191. t Report of the New South Wales Royal Commission of Liquiry into the working of the New Zealand Compulsory Conciliation and Arbitration Law, as quoted in the Fifteenth Annual Report of the New York State Board of Mediation and Arbitration, 1901, p. 391. X Quoted in the above Report, p. 392. COMPULSORY. 151 Again, the office of chairman is often held by men who have neither the temperament nor the training fitting them for the position. In other cases no fault can be found with the members of the boards, and their want of success must be attributed to other causes. The formal judicial-like methods of the boards to some extent explain their failure. Again, neither side can count upon concessions from the other before the lower tribunal, which might prejudice its standing in an appeal. The workmen object to the decisions of the boards, because they are binding only upon the employers signing or actually cited in the case. But besides all this, the cheapness of appealing encouraged the party who was dis- satisfied with a recommendation of a board to appeal immediately, in the hope that it might be reversed. On the other hand, it must be clearly recognised that the boards did good work. Mr. Justice Cooper, president of the court, speaking at Christchurch in April, 1901, expressed himself as follows : — " I should be very sorry, if there was any impression in the puhlic minds, that the boards are not a necessary part of the Act. They are very necessary."§ The work done by the boards was to settle some cases and greatly simplify many others, leaving some small points only to be decided by the court. This work is now more appreciated since the effect of Section 21 of the Amendment Act of 1901, allowing a § Report of the New South Wales Royal Commission, p. 393. j:»L> CONCILIATION AND ARBITRATION. • dispute to be takon direct to the court of arbitration, has been practically to supersede conciliation boards, and to congest the court with a press of business and delay its decisions.* In the future, no doubt, something will have to be done to remedy this; either the court will have to be relieved of some of its minor duties or a second court will have to be created. From the machinery set up under the Act to conciliate and arbitrate, we may next turn to the method of setting this machinery in motion. This can be done only by an industrial union of employers or an industrial union of workers, and in practice is always done by the latter. The former can be created in any district by any two, originally seven, employers in the same industry registering as a union, and the latter by seven workmen employed in one industry doing likewise. The full title of the original law of 18i>4: was " An act to encourage the formation of industrial unions and associations, and to facilitate the settlement of industrial disputes by conciliation and arbitration," and these " industrial unions," which are something quite distinct from " trade unions," play a most prominent part in the whole system of compulsory arbitration. As already stated, only a union can commence proceedings under the Act, but on the other hand a single employer can be cited to appear before the court, and can be bound by its decisions, and in the same way non- unionist workers may be bound by decisions. The * Twelfth Report of the New Zealand Department of Labour, 1903, p. iv. COMPULSOKY. 153 minimum membership of the workers' union was. placed as low as seven, so as not to exclude the operatives of small trades from benefiting under the Act. A union acts by the will of the majority, so that four dissatisfied workmen are able to embroil their employer in a dispute. This is undoubtedly one of the chief causes which have contributed to the large number of industrial disputes, and in New South Wales, as we shall see later, an attempt has been made to remedy this, by requiring a union to have a minimum membership of fifty workers. The questions arising out of industrial unions are by no means limited to the size of the membership, and at the present time no point is more discussed in New Zealand than that of compulsory preference to unionists. I shall have reason to refer to this again, when dealing with the question of preference to unionists in general, amongst the industrial matters which the court is competent to decide, and we may now consider these in the order in which they are enumerated in the definition of " industrial matters." In the first place, the court has jurisdiction over all matters relating to "the wages, allowances, or remuneration of workers employed in any industry, or the prices paid or to be paid therein, in respect of such employment." Further, under Section 92 of the Acb of 1900, the court may prescribe minimum rates of wages, and has done so in almost every case which has been brought before it. The question involves a good deal of difficulty, and the position of the court has not been easy. The court ]-,! CONCILIATION AND ARBITRATION. has always shown itself desirous of raising wages and inii)roving the conditions of the working classes ; one result of doing this too freely is to render the more incapable workmen liable to dismissal, unless they can obtain certificates of incompetency allowing them to work for a lower wage, and these are not readily granted. On the other hand, a minimum wage tends to become a maximum wage, and by this means those originally earning higher wages may have theirs reduced. This in its turn would tend to lower the standard of workmanship. These risks, however, have not frightened the court from imposing raised minimum wages whenever possible, with consequences which we shall see when considering the effects of the law. The second matter over which the court has juris- diction is " the hours of employment, sex, age, qualification or status of workers ; and the mode, terms, and conditions of employment." The most important action of the court under this section has been to reduce the hours of labour. This it has done with considerable freedom, and the effect is, of course, the same as that of raising wages. The question of apprenticeship has caused the court considerable difficulty, as the unions are in favour of indenturing apprentices, and this is found to be contrary to cus- tom in several trades. The chief trouble with appren- tices falls more under the next sub-section, allowing the court jurisdiction over "the employment of children or young persons, or of any person or persons, or class of persons in any industry, or the dismissal of or refusal COMPULSORY. 155 to employ any particular person or persons or class of persons therein." The unions claim to have the number of apprentices in any business limited to one for every three or at the most four journeymen. The workmen, thinking nothing of the future but entirely of the present, fear the growth of a class of cheap labour and wish to restrict it as far as possible. It is only fair to the court to say, that on more than one occasion it has shown considerable broad-mindedness when dealing with this question, and has refused to grant the desired restriction. The general policy of the court in this matter will be found in the remarks appended to the award in the Wellington grocers' dispute in 1902 : — " There are some occupations where it is advisable to liuiit youths in number. But there are other occu- pations where no such limit is either reasonable or necessary, and as we have said on more than one previous occasion, it is our duty to see that the avenues for suit- able work are not closed to the youth of the colony. We owe a duty to the boys of the community, as well as to the adult workers of the colony, and that duty we must perform to the best of our ability. Tn practically every occupation, the regulation of which has been subnutted to this court, we have been asked to exclude youths beyond a limited proporuou to the adults employed. The proportion is generally stated at either one youth to three or one youth to four adults employed. Thought- ful working men, we think, must recognise that if their boys are d'ebarred from obtaining suitable employment in trades, from which there is no natural right for their exclusion, a wTong is done to these boys, and the diffi- culties surrounding the bringing up of a faimly are very- much increased. The interests of the colony demand 156 CONCILIATION AND ARBITRATION. that there should he no improper shutting out from the legit iniiitc! means of earning a livelihood by the youth of this colony ; and we think that \vc are amply justified in the interests of the working classes themselves in again emphasising this principle. While therefore we do not limit in any way the employment of youth in this trade, wc prescribe a scale of wages to be paid to them according to age, which we think will prevent any abuse." The next point, of which mention has already been made, is " the claim of an industrial union of employ- ers to preference of service from unemployed members of an industrial union of workers," and " the claim of members of industrial unions of workers to be em- ployed in preference to non-members." The claim of unionists to preference is based upon the expense and trouble involved in obtaining an award, under which non-unionists benefit, but under which unionists maintain they should benefit first. The chief objec- tion raised to preference is that it tends to create a labour monopoly. In recent times the court has granted preference to unionists pretty freely, provided the rules were such that a new member could be admitted without election on the payment of an entrance fee not exceeding Ss. and a weekly contribu- tion of not more than 6d. The awards also stipulate that the union must be able to supply an efficient workman when an employer requires one, otherwise he is at liberty to employ a non-unionist. By a decision of the court of April, 1901, however, when a non-unionist has been engaged for want of an efficient unionist, the union is at liberty to provide one within COMPULSORY. 157 twelve weeks, and to require the employer to substi- tute him for the non-unionist. The unionists are now demanding to have preference rendered compulsory by law, though whether the desired amendment is likely to be passed, it is difl&cult to say, for the last Report of the Department of Labour (1903), which may be taken as being practically " inspired," throws no light upon the subject.* The last thing falling within the definition of an industrial matter, is " any established custom or usage of any industry, either generally or in the particular district afiected." This last matter is certainly pretty general, and upon it and the preceding matters the Court has at times put very liberal interpretations. I may just mention two of these as examples. The Court took upon itself to grant preference to unionists as early as 1896, and has continued to do so ever since, although it was only in 1900 that it was first author- ised to do so by law. The second point is an exceed- ingly interesting one, and has reference to the subject of strikes. I may say in the first place, that whilst any case is under consideration, a strike or lockout is * The following is the passage I refer to : " Strong desire is expressed among the ranks of trade unionists that " pre- ference to unionists " should be made compulsory by statute. The plea used is, that the Covu't in giving preference, usually couples the privilege with the addendum, " other things being equal," and as it is left to the employer to say whether such equality exists, the grant of preference is useless with such a proviso. If the law is amended in the desired direction, it is probable that it will not be done without fierce opposi- tion ; but the principle is so important, that it is well worth full debate and enlightening discussion." 158 CONCILIATION AND ARBITRATION. forbidden under a penalty of £50. It was generally believed, that after an award had been delivered, employers and employees were at liberty to cease work if they chose. It now seems that they are not even at liberty to do this. In February, 1903, the (yourt raised the minimum wage of the Auckland cabinet-makers 2d. per hour. The employers, decid- ing some of the men were not capable of earning the increased rate, suspended them till they could obtain certificates of incompetency. The registrar of in- dustrial unions brought the case before the Arbitration Court. It could not be proved that there had been any agreement between the masters to discharge their workmen, and the case was dismissed. During the course of the case, the president made the following announcement :* " If a combined and concerted action .such as a strike took place, he should con.sider such action a breach of award, and punish it severely. It had hitherto been held by many, that a strike or lockout had only been punishable undur the Act, if it took place while proceed- ings were pending or subsequently, but that once the award had been delivered, then strikes or lockouts were permissible. The president ruled, however, that he should act in the spirit, not in the letter of the law ; and that as the spirit of the Act was in the direction of preventing industrial strife, he had the power to punish organised infractions of award." By Section 5 of the Amendment Act of 1903 this judicial decision has been made law ; and under * Report of the New Zealand Department of Labour, 1903, p. V. COMPULSORY. 159 Section 6 of the same Act the dismissal of even a single workman by an employer in certain cases may be treated as a breach of the award.* Above I have attempted to mention shortly all the more important features of the New Zealand Acts. For want of space many interesting details have had to be omitted, but a knowledge of these can easily be acquired by reading through the original Acts, Before considering the general effects of compulsory arbitration, I may just refer to one amendment introduced by the Act of 1900. Previous to this time an award could relate to the industrial district only in which proceedings were commenced. By Section 87 of the Industrial Conciliation and Arbitration Act, 1900, the Court is empowered to make Colonial awards, subject to the * Sections 5 and 6 of the Industrial Conciliation and Arbi- tration Amendment Act, 1903, are as follows : — 5. "If dui'ing the currency of an award, any employer, worker, industrial union or association or any combination of either employers or workers, has taken proceedings with the intention to defeat any of the provisions of the award, such employer, worker, union, association, or combination and every member thereof respectively, shall be deemed to have committed a breach of the award and shall be liable accordingly." 6. " Every employer who dismisses from his employment any worker by reason merely of the fact that the worker is a member of an industrial union, or who is conclusively proved to have dismissed such worker merely because he is entitled to the benefit of an award, order or agreement, shall be deemed to have committed a breach of the award, order, or agreement, and shall be liable accordingly." A note on the interpretation of Section 6 will be found in Appendiiv I, ir.o CONCILIATION AND ARBITRATION. right of any union of employers or workers, belonging to a district other than that in which the Court is sitting, when making the award, to lodge a protest, in which case, the award is to be suspended in that district, until the Court has sat there and heard and determined the objections. The difference in climate and general conditions between the north and south of New Zealand often tends to make a Colonial award unfair, so that the Court has seldom used its power under this Section. Turning to the effects of the law, we find that the Act was brought on to the Statute Book with the intention of preventing industrial strife, so that we shall be justified in asking ourselves in the first place, how far it has been successful in achieving this end. New Zealand has been referred to as '' a country with- out strikes * " ; but this is not accurate, as small strikes have occurred from time to time. This does not prove that the law has been a failure, for everyone is at liberty to strike, before proceedings are commenced under the Act, and if both parties to the dispute are non-unionists, the strike may very well continue. The reader must not think that this desirable state of affairs is entirely due to compulsory arbitration, as there were practically as few strikes and lockouts before 1894 as since that date. All the Act has helped to do in this direction, is to check the number of strikes from growing in proportion to the * This is the title of the late H. D. Lloyd's book, and the phrase vnil be frequently found in the literature dealing with New Zealand. COMPULSORY. 161 increased industrial population. If the number of strikes and lockouts has remained at such a nominal figure, the same cannot be said of the number of " industrial disputes," i.e., "disputes arising between one or more employers or industrial unions or as- sociations of employers, and one or more industrial unions or associations of workers in relation to in- dustrial matters." There can be no doubt that a large number of the disputes would never have arisen but for the existence of the Act. Even Mr, Wise, who introduced compulsory arbitration into Nevv South Wales, has written as follows on this subject* : " In New Zealand, owing to the permission of any seven persons engaged, for no matter how short a time in one employment, to registet' themselves as an indus- trial union, employers have been exposed to being har- assed by trivial complaints arising from the perversity or ill-will of their workm.en, and sometimes, it is to be feared, incited by trade competitors." In New South Wales, it may be mentioned here, Mr. Wise has attempted to overcome this objection by requiring not fewer than fifty workmen to unite in forming a union. A word may be said at this point, with regard to the enforcement of awards. So far little trouble has been experienced on this account, the reason, no doubt being, that almost all the awards have been in favour of the workers, and that there is no difficulty in compelling employers to submit to awards. The number of fines imposed is by no means inconsiderable, * N.S.W. Industrial Arbitration Act, National Review, August, 1902. M 162 CONCILIATION AND ARBITRATION. though no fine, apparently, has exceeded £25 in amount. The triviality and the unimportance of many of the proceedings for the enforcement of agreements brought before the court, arc largely accounted for by the complainant receiving whatever fine is inflicted. Up to the present, only one or two small cases of breach of award have been brought against a union, and the evidence is insufficient to show whether an agreement could be effectually enforced, if a union were the defaulting party. The chief work of the Arbitration Court has not been so much in maintaining industrial peace, as in improving the conditions under which the work- people labour. The Industrial Conciliation and Arbitration Acts practically constitute the court a legislative and a judicial body at the same time. The court in its awards first lays down the conditions under which a given trade is to work during the next years, and then proceeds to interpret the conditions drawn up by itself ; at times it has even gone as far as to define the scope of its own jurisdiction. When a case of breach of award occurs, no jury is empanelled to hear industrial disputes ; the decisions of the court are final, and no appeal can be made from them. It can safely be said, that no other court in the British Empire has such absolute power as an Arbitration Court under the compulsory system. There can be little doubt that the conditions under which women work have been con- oiderably improved in New Zealand since the intro- duction of compulsory arbitration, and the general tendency has been to raise wages and reduce hours COMPULSORY. 163 all round. The consequence of this has been a general rise in prices. Employers, unable to pay the increased wages out of their existing profits, have succeeded to a large extent in shifting the burden on to the consumers. All investigators are unanimous in asserting that the cost of living has increased, though Mr. Clark is the only one who expresses this tendency in figures : " The increase in the cost of living in New Zealand since the awards began to go into effect is variously estimated at from 20 to 40 per cent." * The prices of commodities quoted in the New Zealand Official Year-Books, of which examples will be found in Appendix II, clearly bear out Mr. Clark's testimony. The Report of the Department of Labour for 1902 admits the increased cost of living, but says that it appears to carry little disadvantage. This it tries to demonstrate in the following ingenious way : " As soon as the workman gets his wages, they are almost all distributed again directly ; with high earnings he buys more bread, beef, beer, tea, clothes, theatre tickets, excursion tickets, etc., than if he made poor earnings." The statement would be exceedingly plausible, were it not that all mention of increased cost of the bread, beef, etc., were omitted. The same report asserts that the farmer, whose produce goesoverseaSjhas also not been harmed bytheenhanced cost of living. If this is really so, and increased agricultural exports seem to point in this direction, it only shows that the farmers have been able to add * Labour Conditions in New Zealand, p. 1240. M2 164 CONCILIATION AND ARBITRATION. 80 much on to the price of what they sell at home, as to cover any loss they may incur on their exports. We may now consider in a general way, what the efEects of compulsory arbitration have been upon New Zealand industry. It certainly has not been killed, and there is no proof to show that it has been particularly harmed, except in the case of the boot and shoe industry.* The chief reason for this has already been given above : employers have been able to pay the increased wages out of the in- creased prices they have obtained for their products. The boot and shoe industry, owing to the tariff not being sufficiently high, has not been in a position to stand a sufficient rise in prices to support the awards, and imports have increased to a considerable extent during recent years, whilst the home industry has been practically stationary. The peculiar condi- tions which have left New Zealand apparently unharmed, after working for ten years under a system of compulsory arbitration, have been well summed up by M. Challaye, a French gentleman, who visited New Zealand in the spring of 1900 : " It is because New Zealand is not big, has a small population, is rich in natural riches, it is above all be- cause it is isolated — both geographically and economi- cally — that it can support its 5ocial legislation, which is so advanced, without being crushed by foreign com petition." * For some unfavourable views of the effects of com- pulsory arbitration, tlie reader may consult J. MacGregor and F. G. Ewington [see Appendix III] and also the table ou p. 168. COMPULSORY. 165 A tariff wall is essential to successful compulsory arbitration, but more is required besides that. In a large country the question of enforcing awards would be exceedingly difficult, if not impossible, for it must be remembered, that New Zealand is not only a small country, but an agricultural one at that, in which practically all awards have been favourable to labour. But one thing perhaps more than another has contributed to the successful working of com- pulsory arbitration in New Zealand. Ever since it was introduced in 1894, the country has been enjoying a great wave of prosperity. What the effects of a period of depression would be, it is difficult to say. The country has also been fortunate in more than once having a very capable judge as president of the court of arbitration. Mr. Justice Williams, the first president, and Mr. Justice Chapman, the present one, can certainly be numbered amongst the most successful. We will now consider the attitude of employers and employees towards compulsory arbitration, and I shall have reason to refer again to the prospects of the future success of the Acts. There is probably no question concerning com- pulsory arbitration, about which more contradic- tion of opinion exists, than that of the attitude of New Zealand employers towards the law. In the first place, there is usually a good deal of bandying with words. Some people express their belief in the principle of the Act, whilst cordially hating the Act itself. Others will declare themselves as satisfied 166 CONCILTATION AND ARBITRATION. with the court of arbitration, referring, of course, to its honesty and ita fair-mindedness, without for a moment meaning that they would not like to see compulsory arbitration abolished. The report of one recent investigation into the working of the New Zealand law contains the statement, that : — " In no part of the Colony we visited, did we hear any general desire for its repeal." And the chairman of this same Commission is reported to have said : — " Wo exan)incd a largo number of witnesses from both sides, and, with the exception of one employer, there was a unanimou-s opinion that the Conciliation and Arbitration Act is a sound one, anier, " Industrial I>>B;is- lation in New Zealand : The Conciliation and Arljitration Act," p. 8. With regard to the witnesses examined by the Commission the following quotation from Clark, p. 1246, is interesting : — " Business men went out of their way in three cities to say that the publi'.ity given their testimony prevented r-m- ployers from testifying or stating their views frankly before COMPULSORY. 167 the Australian Commissions sent over to investigate the working of the Act, lest they thereby injure their business." The value of the opinions expressed by this Royal Com- mission is gz'catly reduced by the fact that they are very one-sided. The only thing with which the Victorian Com- mission can be compared is the " Tariff Reform Commission," for both were appointed to demonstrate the need of some- thing, in the value of which every member of the Com- mission firmly behoved before the investigations were com- menced. The last Victorian Government, wishing to show the value of compulsory arbitration, sent a Com- mission to New Zealand and New South Wales, every mem- ber of which probably firmly believed in compulsory arbitra- tion before he was appointed, otherwise we should hardly find nine Commissioners unanimously signing a report, which is out and out favourable to compulsory arbitration, as the following passage from the report (p. xxiii) will show : — " Despite certain defects in detail, which have been re- vealed by experience, the New Zealand Conciliation and Arbitration Acts remain to-day the fairest, the most com- plete and the most useful labour law on the Statute-books of the Australasian States. And it is, on the whole, a wise social law, on the one hand protecting the fair-minded em- ployer from the dishonest competition of the sweater, who keeps down the cost of production by paying miserably low wages, and, on the other hand, the toiling thousands, to whom a rise in wages of a few shillings a week when an industry can fairly bear it, often means the difference between gripping poverty and comparative comfort. But beyond that it has the great merit of providing effective means for preserv- ing unimpaired the industrial relationship of employer and worker, in forbidding the miserable v,arfare, which displays itself in strikes and lockouts, and the stem reprisals which too often accompany them ; while ample opportunity is given for conciliatory methods of settling disputes before compulsion is invoked." In spite of the compulsory arbitration law being the " fairest, the most complete and the most useful labour law on the Statute-books of the Australasian States," the present Victorian Government has shown the value it attaches to the report of this Commission, by carefully avoiding to follow its recommendations. 16S CONCILIATION AND AKBITUATION. U O >< Y-, W o2 K E- ?: o K » 1-3 03 e; » xr- ^ a .^< i ^ a 1"S 3r = Ok o = eo - = n o '« lO « M 8 O O r- »l r Ch >« ? • • • <0 t- o 1 et 1 •-■ 1 1 r. »< 1 1 II a >. a ^ £ A^- n «o 1 C4 C4 n ^ 1 3 a o y^ t £ • • • 1 1 1 M 04 M S M C4 &I >< • a d t-i M >« a as M M M r4 m 01 X 3 A y. i ^' -^ t- «t> 1 1 1 1 1 1 1 " 1 ^^ •i ^^ ^^ ^ iS S :7" r 8 ua laei 1 1 1 e o a a> at » m 73 01 04 e4 M § X >« «* a 1 15 S S3 CO ss « « C4 0. , 1 i Q. t e 01 eon 1 r eo 03 04 Ot 04 04 o a >o ia>a M r ^ M M M 01 04 03 93 m CO CO CO cu >< a ,1 • • a E • , . o 1 ^ 1 •e . 5 . .a li « 3 » ■ "3 . o E.gRg.o.i.O. S 9 •25 o » a 1 • >.a ^ e-l - 1 1 |.ioljjl||. J • a o 1 s 3 C SB 1 ^ . 1 . I-S ■g C . O . £ o l.i ^ >. 5 "S •r? 4) •» •II 1 ^|i iii=2 ^c ^i:ii '-on s >« ^ * 3 £t5£ u'S : I. c o a '-— S ^ 2 s » f? o J?— X * t — — 2 e-MS M=- = c = E £ ■H.-a •* xl S = = *"■£ ??f&~ i^,H'?!||iii-i i o c - £ C 5 s >::; COMPULSORY 169 great majority of investigators go to show, that, with certain exceptions, New Zealand employers as a class are not in favour of compulsory arbitration. What is probably the best evidence we have on this subject are the answers to a set of questions sent by the employers' associations in Wellington, Christchurch and Dunedin to their members.* The table given on page 168 is quoted by Mr. Clark and he adds the following comment to it :f " About thirty replies were received in each city, the answers frequently being from the secretary of an in- dustrial union of employers, voicing the opinion of all the members of the society, so that the actual value of each reply varied, some representing individual and some collective opinions. But in no instance, so far as the writer could learn, were opinions favourable to the Act indorsed by more than a single individual. Upon numerical rating, therefore, the balance of opinion ad- verse to the law as it stands at present, would be con- siderably heavier than it appears in the table." It will be seen that the table is very complete, containing answers to several questions dealt with above. The majority of the answers are in every case unfavourable to compulsory arbitration, and whether these gentlemen could produce definite proof of their assertions or not, it clearly shows that * A similar set were sent in Auckland, but the tabular statement is omitted, as the exact figures could not be obtained, but the repUes averaged about the same as those from the other cities, I have also before me a detailed set of answers to a series of questions sent out by the Otago Em- ployers' Association. The same opposition to the Act as that indicated on page 168 can be clearly gathered from them. t Industrial Conditions in New Zealand, p. 1246. 170 CONCILIATION AND ARRITHATION. employers as a class are dissatisfied with the Act, and it would be very surprising to find that they were not. Turning from the attitude of employers to that of employees, we find the position is almost exactly reversed. Taken as a whole, the workers are strongly in favour of the Act, and the explanation undoubtedly is, that the decisions have almost always been in their favour. Whenever the contrary has been the case, much dissatisfaction has been expressed by the employees, and this tends to make one very doubtful as to what would happen, if, owing to a depression in trade, a whole series of awards went against them. The question of enforcing agreements against the workers has so far been put to no serious tost, and it is just the same with regard to the pro- hibition to strike whilst proceedings are pending. In this connection it is interesting to note what a New Zealand gentleman, Mr. 0. T. J. Alpers, against whom, so far as I know, no imputation of bias can be made, has written on this subject.* " It is true that an employer has but to lodge a dispute and the men are bound to continue to work, till the dispute is ended. But how bound ? The property of the Union is liable to attachment and the members are in- dividually liable up to £10 if they disobey. But the chances are the Union has scarcely any funds, and the remedy against the individual workmen is, for obvious reasons, purely illusionary." There can be no doubt that the future success or * The quotation is from tlio chapter written by Mr. Alpers on Compulsory Arbitration in Irvine and Alpers, Progress of New Zealand in the Century, p. 349. COMPULSORY. 171 failure of the Act depends largely upon the attitude of the workers, and from the indications of this attitude, which have been given in the past, the prospects of the success of the Acts in a period of depression is none too rosy. M. Andre Siegfried is distinctly of this opinion and Judge Backhouse, whilst in favour of compulsory arbitration, hints gently at the same thing, when he writes towards the end of his report : " If the award is to be accepted only when in favour of one class, if it is to be flouted when against that class, the Act had better at once be ^^aped out of the statute books." New South Wales*— The Industrial Arbitration * The Industrial Arbitration Act, 1901, is published separ- ately as a New South Wales Government paper and will also be found in the Fifteenth Annual Report of the New York State Board of Mediation and Arbitration, 1901, and in the Bulletin of the United States Department of Labour, No. 40. To understand fully the difference between the New South Wales Law and the New Zealand Law, it is neces- sary to read the Report of the N.S.W. Royal Commission on the Working of the Compulsory Conciliation and Arbitra- tion Law in New Zealand. The only investigation mto the working of the Act is that of the Victorian Royal Comims- sion, which was made after the law had been in existence only a few months. Other ^Titings bearing on this Act are : B. R. Wise • What I expect from the New South Wales Industrial Arbitration Act, Review of Reviews (Australia), December, 1901 and The New South Wales Industrial Arbitration Act, National Review, August, 1902 ; W. P. Reeves : The New South Wales Industrial Arbitration Act, Economic Journal, September, 1902, and State Experiments in Aus- tralia and New Zealand, Vol. II. ; F. R. Sanderson, Industrial Arbitration in New South Wales, Juridical Review, December, 1902 ; and Dr. CuUen's article against the Act m the Untted. Australia, November, 1901. 172 CONriLIATION AND ARBITRATION. Act, 1901, establishing compulsory arbitration in New South Wales, was passed after the Report of the New South Wales Royal Commission had been published. In many ways the act closely resembles the New Zealand law, but there are a few important differences, and it is only these to which I intend to draw attention in this essay. In the first place, there are no boards of conciliation in New South Wales, and all disputes are referred directly to the Court of Arbitration. This alteration of the New Zealand system can be traced to Judge Backhouse's Report. The New South Wales Court is authorised to establish by its awards "common rules "for the whole colony and apparently does so at every opportunity ; on the other hand, though the New Zealand Court has power to make Colonial awards, it uses this power but slightly. Another distinguishing point of the New South Wales system is that the registrar has power to submit a reference to the Court, even against the will of the contending parties. Perhaps the most interesting section of the whole Act is Section 34, which makes a strike or lockout a misdemeanour, punishable by a fine not exceeding £1,000, or imprisonment not exceeding two months. With regard to the working of the Act, sufiicient time has not elapsed for any definite judgment to be made. It appears evident, however, that some harm has been done, and the prejudicial effects of certain judgments under the Act on the glass-blowing industry, are clearly shown by the loUowing passage COMPULSORY. 173 takon from a long and detailed article in the Sydney Morning Herald, July 22nd, 1904: : " To-day, instead of there being seven flourishing factories only three of the smallest remain, and 50 per cent, of the bottles used in Sydney are imported cheaper than they can be made locally, despite a handicap of 50 per cent, in freight and duty." The same observation with regard to the attitude of the employees towards the Act can be made in New South Wales as in New Zealand. " The arbitration law in New South Wales has been in operation over a year, and it has been found, that so long as its decisions are in accordance with the wishes of the employees, there has been no resistance ; but whenever a decision has been adverse to them, they have shown a spirit of resistance."* On one occasion already, the Newcastle (N.S.W.) colliers refused to work in defiance of a decision of the Court, but they submitted unconditionally, before proceedings were taken under the Section making strikes misdemeanours. This attitude of the workers hardly promises well for the future. As far as one can judge from reading through the Industrial Arbitration Recordsj the cases brought before the New South Wales Court are very similar to those in New Zealand. One recent judgment is * The passage quoted is from the American Consular Re- ports, May, 1904. t These records are got up very similarly to the ordinary law reports. The indexing, headnotes and method of cita- tion all tend to make the resemblance more striking. 171 CONCILIATION AND ARBITRATION. worth mentioning. The case is that of in re Ranse- lius* and the head-note is as follows : — *'A master of a foreign ship trading to this port is subject to the jurindiction of the Court of Arbitration, and is liable to a penalty, if ho employs his crew in discharging cargo, contrary to the terms of the wharf-labourers* award." In this particular case the Court fined the master of an American ship X.0O. One cannot but be of the opinion, that the Court would do better to restrict its activity to regulating home industries, instead of doing its best to draw down upon itself international protests by interfering with foreign shipping. The author of the Act once defined the court as " a sort of elastic and self-acting Factory Act which will assimilate the conditions of employment in each trade to those which prevail in the best conducted establishments." f Even this definition does not seem broad enough to cover all the self-imposed activities of the court. Other Countries. — A compulsory arbitration law was enacted in Western Australiain 1900, and in 1902 another law, the Industrial Conciliation and Ar- bitration Act, 1902, was passed. Throughout, this latter Act closely follows the New Zealand law, but there is little evidence forthcoming \vith regard to its working, and what little there is, is contradictory. From a conversation I had with the Hon.W. P. Reeves, I gathered that so far the Ac t had worked successfully. * [1904] A. R., p. 54. •j- B. R. Wise, The New South Wales Industrial Arbitration Act, National Review, August, 1902, p. 895. COMPULSORY. 175 On the other hand, a recent article* takes a much more unfavourable view of the question : " The Western Austrahan Chamber of Mines declares that, far from blending the interests of the employer and the workers for mutual good, it {i.e., the Compulsory Arbitration Act) has set up a continuous process of irritation, which is assuredly driving these two factors wider apart. The Council of the Chamber say, that striking illustrations of the absolute futility of the AcfS in practice is afforded by the action of the timber em- ployees in the South West District (W.A.), andtheTeralbo Coal Mines (N.S.W.) In both cases the award was instantly repudiated, when it operated in the slightest extent in a manner unfavourable to the workers." In South Australia the Conciliation Act, 1894, provided for compulsion, but it has been a dead letter ever since 1895, and at present there seems to be no probability of an effective Act being passed. In August, 1904, the labour ministry of Australia at- tempted to pass a Compulsory Arbitration Act for the Commonwealth. It was to apply to irfeer-state disputes only, so that its application would certainly have been attended with considerable difficulties. The Act, however, as the reader will no doubt be aware, was not passed, the ministry resigning after suffering defeat on the subject of preference to unionists. In Victoria the Royal Commission re- ported in favour of compulsory arbitration on the New Zealand system. One modification the Com- mission suggests, is the enlargement of the powers of the Conciliation Boards, so as to make an award for * R. H. in the Manchester Evening Chronicle, September 21, 1904. I7 ■4 So a 5 ?■• « O X! » H 1 = 3 a a' n n ^ n 'I n -1 -] -| Z5 % -^ -{ -\ zi ^ i S II ^ ^, 1 a ''■- •-^ \ / 3 ! ^ iH ,i-L ; ^ y( > — ^- .'■■ •" .-■ j < 1 ■" "x - ,i / \ 1 - 1 8; ■ ~^ — 1 — — «^ --. -. , / J ■"" — •»^ Rl / ■' < ,^ 1 U B i 1^^ '"1"' \ i r \ / / "x ■V ^-1 \ ■--. [ :ii h: 1 It i '-' ^ J y ^ 1 \ X B 1 ^ \ 1 'i 1 "t ^ ^ — - • -^ W.; E ■ ■ T" " ,- ^ — 1 - X9 * - 8 ■ '■" A / / — — — ^ ^ / . B B' B" \ ■^ ., 1 — — — • 1 j IB 9\- / / \\ -— «■ — — -- , — __ — ;i « ''^ 9 D ' / £ 1 v. / 1 J '' i • ^i r 1 ^ i g i^ t i ^ 1 s i g § 8 1 a g § « [For explanation, sec (he opposite par/e.) To face pnijr l-il. CONCLUSION. 181 seeing we know nothing about the system upon which the figures have been collected. The only satisfactory thing is to compare the figures for different years of any one country. This has been done, and the results can easily be seen from the diagram opposite.* The following table indicates the meaning of the lines and letters used. Country. Initial. Line. United Kingdom United States France . - . . Germany ... - U.K. U.S. F. G. — .—.—.—.—. Nothing is clearer in this diagram than the great growth of industrial peace in the United Kingdom during recent years, and it would appear that the year 1904 has been more free from strikes and lockouts than any of its predecessors. f It is equally clear, that no other great industrial country can * The figures used are the official ones, (for the United States the number of lockouts being added to the number of strikes), except in the case of Germany for the years 1892- 1898, where the figures used are those quoted by R. della Volta in L'Arbitrato degli Scioperi, Giornale degli Econom- isti, June, 1903. These figures are practically identical with those given in Conrad and Lexis, " Handworterbuch der Staatswissenschaften " (second edition, 1898), vol. i, page 768, except that the dictionary gives no figures for 1898. t This is best seen by comparing the statistics for 1£03 with the preliminary figures from the Labour Gazette for 1904 : — No. of Strikes Workpeople Days and Lockouts. affected, lost. 1903 387 116,901 2,338,668 1904 334 83,922 1,416,265 182 CONCILIATION AND ARHITRAnON. ><:: Ok •^ ;5 "^ «»< (V* ^ '^^^ tdOr: •— ' o CCH h3 cc -^ «5 X CO X ■* o X c r I- 1- I.C Ot r- * CI -r 5 "" CJ CI Oj ""^ CO ^* •J CO I'' X •f CS C CO 5 '" 5 X — • 1- 1 - « X 5 -- OJ lC 01 ^ C «3 X r: X *-C •0 1 - I - r- X t- O »»• 1"' - t- -f -»" — Cl ^1^ — '«• I m^ t- X -^ O »>) X if^ to CO CI CI r- •- CO XX X CO CO CO CO • CJ I- 1- XI- X 1- CO s. t? i o_o ».'; i ■* t- '". -0 t2_^ O S:_^ — ■^'lO CI M — l.C f^ ■^' CI-<*— *co* '^ — ■ eo -M ^^ t- St ;^i 1 A. I-. .*^ CJ X 1- Tt 1- to X 9 ■ X 05 =5 — to f -f Q S« X 1- 2 CI J5 M CO C3 00 X CO -J. * -o -r 5 $ «■! « CO C5 t- 01 i » — ^ — * ^^ CO •t ;d O C< 00 — CO >a r» C-l Cl >-: X -- "o" © to — Si -0 — CO -fl o « X -o eo CI CI s; to CO CO t- ai rf 1- — CI C to XX t C0_ — tO^ CI y: 3S — C ec I.C CO f -t — i-fcT CO CI CO o — CI ~ — 1(5 X « c: -*■ — Oi r^ -r r~ ci S5 — LO 00 O a CO CI to UC 1' S5 -.x ffC — Tl cs o-^ic e«5^ to to__ to_^ s-^ s; — c 2 ei CO C* L-f -^ to' CO CI t-^ 'J'* cf CO* to f -" CO to — CI s o CI S-. C5 to X r- -* ^ c c; to t- CI to ^ to to ^^ ^ re ^^ -^ I* ci -r C; C c X — to r- •>!»• t CI CO T»< to -O LC 1- ci X f X t- to LC so" X ci X CI — ■^ 1— H r- r»< X CO •-C ■»r 01 ^■^ C/i ".x C -C — I- CO X — — 01 .-0 CI c ,*.' c c ^* ^ » "^r CO CO CO r: ~; -T 1- ;^ t^ fM X co^ -o^ -i t- a: r- — to'c^Ol — iC X CI t ci- ^ L- O 'f CO *c te CI CI • ■ ^ . , , , • . . ^ . 1 . , • . t=f ^. . .J ■ ^^. ■ • . c .-. c '- b ^ t C 5 ? t •/: ••as "3 •• ^ ^ K ~ t^ ~ ° ^ .= tc X 0-^ =: :5 Q i •^ .£ -^s -r -^ := s ^- ^ .= ^ ^^ 1 t .i 5 « ^ S H S ^ < CONCLUSION. 183 claim to be in a position comparable with that of the United Kingdom. We are enabled to study the industrial situation of our own country more closely than the diagram permits, thanks to certain statistics published annu- ally by the Board of Trade since the middle of the " nineties." We have already noticed that wages questions are the principal cause of industrial dis- putes. On the opposite page a table will be found, showing the number of individuals affected by changes in rates of wages, without and after strikes respectively. The following figures briefly sum- marise this table, and all comment is unnecessary : — Percentage of Workpeople affected by Changes in Rates of Wages arranged Year. Without Stoppage. After Stoppage. 1896 89-7 10-3 1807 92-6 7-4 1898 94-9 51 1899 97-1 2-9 1900 95-2 4-8 1901 98-4 1-6 1902 98-6 1-4 1903 98 -.5 1-.5 Alterations of the hours of labour are a minor cause of strikes and on page 184 a table is given, showing how far these are affected by peaceful methods. No further proof of the growth of industrial peace in the United Kingdom is necessary, and it now remains for us to consider to what this desirable 184 CONCILIATION AND ARHITRATION. C^ -" 00 o « I- o o o O "O M — S ■^ '^ « *— *. wi ?0 03 1 1 f;^ •^1 II 1 1 •^ \<'A -H 1* t-^ aw t', -J C5 « CI X r> n CI eo a'. * jj of t- ■* -t c'r"" ' -J a — O c '^'A ^ 1 _■ ^< — • — '■''''■* ■~~~ >.^ rs -71 lo c -t 1^ ■^ ro o Cl CI ^4 g'^* ', « -, o -^ -^ t~ ,— ' » "t* ^-« — f t- <-,. ^. •-= o — — I* >C_^t Cl 1 i-C r^ W P * H 'J rt z^ *i ^1 — '^' ^-n o 1 -^ c ;:: r. -c :^ o iC ~ '-O LC 1 .- ^ -t ^ — f- c o ^ ii I- i~ t^ 1 '■^ THE Y SI , 189 i '•1 ^. "t, '^. -I CI — -t" LC Cl re 1 1 X 1 o 1 2>D Cl « O X 't Cl 05 -. lO 05 I.C o •-< ■% ^ ^ •-CO t~ _ -t -t C5 O -' lO RKPEOPLE RERS, RAII RS OF LAB( ^ '^ -I "^1 ■" "". *. tc^ t-X II 5 M Cl X I-—" t- cfo" ci cf — "* 1 '=■' 1 tc o — . c. 00 o O O — ' c^ o lo X — I-' GO 1 l-C 'M g ;; ■c -o X ■* Cl 1 l-'i 1 an -f M r- Cl cs o CD u c^-> 1 "-'^^ M CO lO 1 1 -* 1 M o*-a X co" t-^ cT — CI C) cf cf " 1 « NUMBER ;ULTURAL NOES IN T 1 uc O X o — o -t m "* '^ "5 o t- X CI O t^ CO CI CI t^ o t- —a o a> -f o cf -o CI O -- Cl x* -*" 1 Ci o_ tc -^ 1 ^- ^ 1^ S^^ ' 1 • J J 1 WcSa 2 "^3 HOO s ^. 5 ■ tc , , . . • to " 1'^ • ■ • TABLE SHOWI CLUSIVE AFFECTED •r is O I • aj • :^ i: 3 1 2 1^1 "3 "o H jc 5 o ' ■ .. ^ — =f-5 ^ d if ~ ^ - »^ 2 ■- "^ ;5 '-S 75 £: O "5 o Eh ^ tc 5 _! ^ tp J 3 is -S;* lis 11 6^ ^ < CONCLUSION. 185 186 CONCILIATION AND ARBITRATION. state of affairs must be attributed. There cannot be the least doubt, that it is due to the excellent private systems of collective bargaining, conciliation and arbitration established in the United Kingdom. This will be clearly seen from the table on page 185, where the steady increase in the organised methods of arranging changes in wages, as compared with the unorganised methods, and the great growth in the activity of trade boards in particular, are strikingly revealed. Throughout this essay, past and present attempts to encourage industrial peace by means of conciliation and arbitration have been under discus- sion. In conclusion, one word may be said as to the future. There can be no doubt, that in economics, what is true of one generation, is not necessarily true of the next, so that it is all the more remark- able, that words written over twenty years ago can be quoted to-day and are as correct as when first written. No one was better fitted to speak on in- dustrial and social problems than the late Arnold Toynbee, from whom the following passage is quoted : * " We should do all that lies in us to establish Boards of Conciliation in every trade, when the circumstances — economic or moral — are not entirely unfavourable. I know it is not easy to form tliem and difficult to maintain them. But notwithstanding failures and obstacles, I ♦ Industry and Democracy, pubb'shed in his Industrial Revolution, p. 201. CONCLUSION. 187 believe these boards will last and more than that, I believe that they have in them the possibilities of a great future ... I may point out that Boards of Conciliation may grow into permanent councils of employers and workmen, which — thrusting into the background, but not superseding Trade Unions and Masters' Associations — should, in the hght of the principles of social and in- dustrial science deal with those great problems of the fluctuations of wages, of over-production and the regu- lation of trade, which workmen and employers together alone must settle. However remote such a consum- mation may appear — and to many it must seem remote indeed — of this I am convinced, that it is no dream, but a reasonable hope, born of patient and historical survey and sober faith in man's high nature. And it is reason- able above all in England, where, owing to a contin- uous, unbroken history, some sentiment of mutual obli- gation between classes survives the dissolution of the ancient social system," The bright future Arnold Toynbee foresaw for England twenty years ago, is already being fulfilled. Everything points to the growth of good feeling between employers and workmen. " The era of great strikes and lockouts, notwithstanding some of the severest conflicts which have occurred, have taken place recently, is really passing away, and I believe that the rule of reason is asserting itself. When this rule shall hold sway more completely, capital and labour will learn that their interests are not identical and are not antagonistic,but that they are reciprocal. When this is learned it will be more fully understood, that voluntary conciliation in industrial matters is one of the highest and broadest features of co-opera- tion, and at the same time one of the simplest methods 188 rONriTJATTOX AND ARHTTT^ ATTO\. for restoring harmony, when conflict is threatened, or even whore it already exists." * How loiif^ it will take of her great industrial countries to reach a position even as satisfactory as that at present enjoyed by the United Kingdom, it is impos- sible to say. The road to peace is through war and no panacea for industrial disputes can be found, but it is possible to do much by building up and consolidat- ing a voluntary system of conriliation and arbi- tration, in which trade boarils are given the first place. Absolute industrial peace is impossible, as long as the problem of distribution remains what it is to-day, but there is no reason to believe that indus- trial warfare cannot be reduced to a minimum* which lies far below that at present achieved. The number of strikes and lockouts may increase for a time, until employers and employees have learnt to understand the problems of industry better than they do at present ; but given a good system of voluntary conciliation and arbitration, the prospects of a relative industrial peace in the future, if not brilliant, are at least bright and hopeful. * The passage in inverted commas is quoted from C. D. Wright, Forum, May, 1893. APPENDIX I. 189 APPENDIX I. Mote to Section 6 of tjie Industrial Concilia- tion AND Arbitration Amendment Act 1903 (see footnote, p. 159). Wishing to understand, what the above section really involved, I communicated with the Hon. W. P. Reeves on the subject. The following was the question to which I desired an answer : — '■ Would an employer, dismissing a workman, who in his opinion is incapable of earning a new minimum wage imposed by the Court of Arbitration, or suspending such a workman till a certificate of incompetency is obtained, have committed a breach of the award and be liable accordingly under Section G of the Amendment Act of 1903 ? The particular case I am thinking of is the one referred to on page v. of the Report of the Department of Labour for 1903. There the president laid down, that an individual employer is competent to dismiss his workmen, although concerted action would constitute a lockout. The Report expresses the opinion that an amendment of the Act is desirable in the direction of preventing a worker at minimum wage being deprived of the advantage of a rise awarded by the Court. Had this section been in existence when the so- called ' lockout in Auckland ' occurred, would the action of the employers have been a breach of the award ? " In reply Mr- Reeves kindly wrote to me as follows : " The right of an employer to dismiss an incompetent workman is clear, and if the alleged cause is the true cause — has never been doubted or contested." 190 APPENDIX I. ** Your view of the action of the Auckland employers will depend upon whether you believe their assertion, that their simultaneous dismissal of some sixty work- men was not a concerted attempt to defeat an award." " Of course, whenever wages arc put up by an award, an anpry employer may assert that his workmen are not competent to earn fairly the higher wage. But that would not make them incompetent workmen in the eyes of a suitable judge. An employer must have a boria fide reason for alleging personal incompetence. Then he may dismi.ss. There is no doubt that a good many inferior wt^rkmen have been (juietly shelved, man by man, ami nothing said. But such men have usually been taken on again or engaged by other employers. Some of them have had to change their occupation." APPENDIX 11 WAGES AND PRICES IN NEW ZEALAND, lbU2 AND l'JO'2. Althouijh the flgiiros quoted below from the New Zealand Otlirial Year-I^ooks, iSy.J and 1903, are by no means complete, they show the great increase in tlie cost of living due largely if not entirely to the generol rise in wages occasioned by the working of the Industrial Conciliation and Arbitration Acts. Quite recently the New Zealand Labour Department issued a short report comparing the price of certain commodities in 1893 and 1903. In some ways it supplements the information contained in the New Zealand Official Year Books. House rent (Wellington) rose 25 per cent, from 1893 to 1903, and over the same period the price of men's clothes (to order) increased 16 per cent. The other figures in the Report confirm those quoted below. [A short notice of the Report will be found in the Labour (Jazette, August 1904.] APPENDIX 11. 191 ^^ >. «s « «e M ■M ■> . •~^ o — oj C4 7 rl ''^^ o o 00 tH > © o fe o fc US X O 1 d 1 r ^^ 03 IH t o ^ 1 ' — 1 i^ ^ 00 ■d ^ kl ki :s- tH '^ o 00 1-1 oo a. m i ^ 1 <-< >^ ^ ^» ^ ~^ >> 5- 1 >. ^ •~-^ "^ O ^ a> o> 1 «^ iH O, a to kt £> o> ^ ^v ^ ~^ ^^ § d •* •W ^, ~v. ^^ v^ o © ^ o OJ (N o >, rH ,M •«* o to 1 1 1 i-( 1-1 ^ ce 1 a> 1 o 1 a ~^ — ^^ 1 1 1 O •5 00 £ ■~-» & ~> s O © © ^^ ^x — . ■^ ^^ ^ lO o O) a> t> 00 to d ■«»l 1 ^ ^'N ^^ > "3 a 00 ^, •^ "-^ -^ ~^ o o \a o ^ d Cvl ei © © iH ^^ u ■^ hi *? kl lA iH 1 1 © B. O. ■> c > ^v ■^ ^^ "N^ ■^ lO o O a » 00 00 r- t» •^ CO ~^ ■v. « >> 13 ~ ■^ i- ei •* ■>*< •* ->^ -V, ^ lO o © >> § ']* ft 1 1 © IH . n M IH ^^ ^^ -.» •^ ->. o lO 4> © "^ •^ rH 00 00 i~ 00 C. to * IM s ■w ~^ o ^v ' — M N ^-, ^^ o © a> *^ ^ ~^ 00 o to kl m M 00 1 ©^ (N a> 00 1 S: 1 e 1 « d n ~>, rH ~^ 1 1 :> a. ^ Q- '« © 1-1 ^ ■-^ . o 1 N © ^ to Od 1 1 I-< 1 1 1 03 1 1 iH ~^ •^ 1 1 « u •^ "2 © o -^ — ^, ^s. ■>«. ^, ^ (M © IH 1-4 o a> t- t» a r» 00 A iH p. o M «» to >, to 3 N \ -\ ■^ :> ■^ ^-s ^ > >> ^ C8 ::> •«i at O 00 CO 00 ^s t- t>. 00 b 00 eS ^ •a t7 00 rH 1 1 1 00 1 1 1 o 1 •O 1 1 1 ^^ ^^ -V, -^ ^ ^ c > ^-> kl > 00 t^ t~ «D a 03 o O • .a .2 i 3 3 1 5 : : : 5 : : : M : : f 1 ^^ % o a o T3 : : : : I : s O) >- « « . .^ <^ * . ■c O. * " " * DO " " o 2 £ -i 5 E a S o a o a S o a. o E 1 s o "5 05 3 s " K o S ^ s H cq APPENDIX II, i i CO > ! 3 « r» CO « <0 s s u 1 ~v •^ ^ >•> >* •^ ^ 8i 1 5p i i. «0 'J* a J CO 1 1 ? ^ 1 Ok « > Ok > CO CO > ^ ^ II si c4 s X > « > « o <*> o 1 1 ^ 2 s: to « •♦ ^ — > r- e ^^ i ^, ^, s ^ ~^ ■~^ ■^ •~^ s s ■o S oo o 1 CO > o ■a 1 :S o- ">» ■«^ ^ ^ -N. ^ Si s s a •< 00 <3> c ■~s --V o ^ if ^ '- 00 i e> A . , ■A o ~ - . S •6 m y a 8 J3 Q. •2 I 3 1 o 2 "^ s ^ c t a P = £ i3 i £ a 3 o a IS § a k ^ C3 s 3 "3 £ 1 Cb a pa a C S5 il y Cb n APPENDIX III. 193 APPENDIX III. Letter of Mr. F. G. Ewington, of Auckland, to THE Auckland Star. Compulsory Conciliation and Arbitration. [From the " Auckland Star" Thursday, May 16, 1901.] (To the Editor.) Sir, — In last night's issue " Earnest Hope," blushing behind a mask, asked me why I am opposed to compul- sory arbitration. I leply : First, because our New Zealand Act is in- herently unjust in giving preference of labour to trade unionists, making non-unionists, who are hable to be called on to lay down their lives in defence of the colony, and who pay taxes, equally with unionists, stand cap-in-hand like beggars behind unionists in the labour niarkei, and making employers criminals, unless they employ particular men. It is as wrong to compel masters to employ particular men as to compel men to work for particular masters, which is slavery. Secondly, I object because of the harm the Act has done, is doing, and will do. It has set class against class, e.g., unionist against non-unionist, master against servant, and servant against master, and has been used as an instrument of political tyranny and industrial and social persecution. It has forced up nominal wages, and lowered real wages, scared capital, restricted in- dustrial enterprise, induced a larger resort to machinery and the consequent dispensing with manual labour, till at last we have got about 5,000 men employed on pablic co-operative works which are partially public relief works, and that whilst the banks are glutted with capital which people are afraid to use. In 1894 co-operaave workers were only 2,066. The Act, moreover, fosters? O 194 APPENDIX TTT. big commercial coucerus aud crushes out Utile ones, and fixes a rate of wages in the North merely to suit a section in the South, where industrial and social conditions differ, thereby entailing a higher price on consumers who are utterly ignored both by the Act and by trade unions. Thirdly, it keeps the colony in a state of perpetual unrest, as is proved by the immense number of industrial disputes now pending. Fourthly, it has failed in its operations. Mr. John Ross says so, and he is a (Jovenimont supporter, a large employer of labour, and a friend of the working classes. The Neiv Zealand Herald, the Wellington Posl, the Posly the Observer, and other journals say so ; the unions have declared the Conciliation Boards useless ; oven " Earnest Hope" says so ; and wo know they are, because in the South both employers and workpeople are joining to set up voluntary Boards of Conciliation, which the Em- ployers' Association in Auckland joined with Knights of Labour, and the Trades and Labour Council to do in 1891. Fifthly, because it is a waste of public money. Boards of Conciliation stump the country at great expense, and a new ]udge has had to be appointed to deal with disputes encouraged by the Act. Sixthly, the chairmen ought not to be young ministers of religion, ^vith no knowledge of law and the practical every-day working of trade and industry, but lawyers, as Mr. Justice Cooper said from the Bench publicly at Christchurch on Thursday, 25th ult. Seventhly, it does not prevent strikes, false witnesses to the contrary notwithstanding. There was a strike at the Parliamentary Buildings. In October last there was a painters' strike at Hastings, there were two strikes of gold miners at Nelson, a coal truckers' strike at Grey- mouth, and a strike of ballast hands on the Grey-Hok- itika railway. Last Friday there was a strike of railway workmen in the South, and last Monday there was a strike of painters at Napier. APPENDIX IV. 195 The newspapers and the pulpits which have guiltily remained dumb, instead of denouncing the gross injustice of the Act in placing non-unionists on an inequality with trade unionists before the law, are as much to blame as the slavish, self-seeking majority of members of Parliament who, rather than lose place and pay, put the unjust law upon the Statute Book ; but Nemesis is coming. " The mills of God grind slowly, but they grind exceeding small ; though with patience He stands waiting, with exactness grinds He all." — I am, etc., F. G. EWINGTON. Auckland, May 16, 1901. APPENDIX IV. NOTE TO BIBLIOGRAPHY. It is necessary to draw attention to one or two important intentional omissions in the following Biblio- graphy. Perhaps the most important is the entire absence of any reference to the numerous detailed reports of particular arbitrations which have from time to time been pubUshed. Many of these reports are indicated in the Bibhography to S. and B. Webb's History of Trade Unionism and to their Industrial Democracy. Another important omission is that of all the rules of the various voluntary boards of con- cihation and arbitration, and also of all awards of arbitrations. It may not be out of place here to mention a few publications, where copies of rules and awards will be found : Keports of the Eoyal Com- mission on Labour ; De la Conciliation et de I'Ar- bitrage dans les Conflits Coilectifs entre Patrons et Ouvricrs en France ct a I'Etranger ; Reports of the o 2 196 APPP]NDIX IV. American Industrial Comuiis&iun ; Reports on the Changes in the Wugcs and Hours of Labour ; Reports on Strikes and Lockouts ; Reports of Proceedings under the ConciUation Act, 1800 ; Bulletins of the U.S.A. Department of Labour; the Labtmr Gazette; W. J. Ashley, the Adjustment of Wages ; J. B. M'Pherson, Voluntary Conciliation and Arbitration in Great Uritain, etc. The awards, recommendations and agreements made under the various Australasian Com- pulsory Arbitration Acts will be found in the publica- tions of the Departments of Labour of the respective countries. With regard to the Statutes, in several cases older enactments have been omitte(l where recent reforming and consolidating Acts have been passed. With one or two exceptions, the annual reports of various boards of conciliation and arbitration have been omitted. No mention either is made of the many economic text books which contain references to industrial concilia- tion and arbitration. In compiling this Bibliography, I have recorded only those works, articles, etc., which I have read or to which I have found references, and there has been no attempt to make it complete. BIBLIOGRAPHY. Abott, L. Compulsory Arbitration. Arena, December, 1892. [The author is very favourable to compulsory arbitration.] Adams, C. F. Investigation and Publicity as Opposed to Compulsory Arbitration. New York, 1903. Alpers, 0. T. J. See Irvine, R. F. Altgeld, J. P. Arbitration to Prevent Strikes. Chicago Legal News, July 30th, 1887. American Academy of Political and Social Science. Social Legislation and Social Activity, being addresses delivered at the Sixth Annual Meeting. New York, 1902. American Industrial Commission, Reports of the. Washington, 1900-2. [The whole of these Reports contain much valuable information concerning Industrial Conciliation and Arbitration, but the following are the most important references : V. 148-60 ; VII. 121- 36 ; VIII. cxxxviii.-cxlii. ; XII. clv.-clviii. ; XIV. cxli.-cxlviii. ; XVI. 172-221 ; XVII. 423-507 and 691-707 and XIX. 833-862.] Annuaire de la legislation du Travail. Office du Travail, Bruxelles. Annually since 1898. Arbeiterausschusse, Industriegenossenschaften UND Einigungsamter. Gutachten der Handels-und Gewerbekammer in Briinn. Briinn, 1892, 198 RIliLIOrjRAl'HY. Arbeitseinstellungen rNDFouTbiLbUNQ DES Arbeits- VERTRAGS. Bcrichtc von E. Auerbach, W. Lotz und F. Zahn. Im Auftrago des Vereins fiir Sozial Politik au.sgegcben uiul eingelcitet von L. Brentano. Leipzig, 1890. Arbitrage entre Patrons et Ouvriers, L', d'apr^s une Coinnumication dc M. Finance, avcc discus.-^ion. Rt forme Social e, 1891. Ashley, W.J. Methods of Industrial Poate, Economic Bemew. July. 1892. Tho Adjustment of Wages. A Study in the Coal and Iron Industries of Great Britain and America. Londcjn, 19C)3. [In the copious Appendices attached to this work will be found a large number of rules of boards of conciliation, sliding scales, joint agreements, etc., connected with the British and American Coal and Iron Industries.] AUBERT, P. Les greves et les recours k la conciliation et a I'arbitrage en 1894. Socioiogie Cathoiique, 1895. Aubrey, W. H. S. Conseils des Prud'hommes. Con- temporari/ Bemexo, April, 1883. Auerbach, E. See Arbeitseinst0-1'JOO. [Figures showing the working of the French Law of 18D2 and of the Massachusetts State Board arc given. Also Foreign Strike Statistics.] Labour Statistics of tue United Kingdom, Abstract of. Annually since 1893. Lamrrechts, — . La conciUation ct Tarbitragc devant les parlements actucls. Grenoble, 1896. Laurisch, — . Gewcrbegericht und Aibeiterschutz. Berlin, IWl. Lautensculager, E. Die Recht.sprechung im Gewcr- bcgcrichte. Jahrbiich fur Gesetzgcbung und Ver- ualtung, 1893. Lawson, W. R. American Industrial Problems. Edin- burgh, 1903. Lecour-Grandmaison, — . Les couscils d'arbitrago et de conciUation en Angleterre. Leroy-Beaulieu, p. Les Nouvelles Societes Anglo- saxonnes. Paris, 1901. Lette, a, Mitteilungen iiber Fabrik- und Gcwcr- bcgcriclitc. Arbeiterfretmd, 18G0. BIBLIOGRAPHY. 213 Levasseur, E. The American Workman. American translation, Baltimore, 11)00. LiscHKE, J. Die Gewerbegericlite in Ostreich. Ihr Wesen, Zweck und Bedeutung. Wien, 1894. Lloyd, H. D. A Country without Strikes. A Visit to the Compulsory Arbitration Court of New Zealand. Now York, 1900. Arbitration Courts a Logical Necessity. Peters, Labour and Capital. New York, 1902. Australasian Cures for Coal Wars. Atlantic Monthly, November, 1902, Newest England. New York, 1900. [The writer visited New Zealand in 1899, and his views on compulsory arbitration, to which he is entirely favourable, will be found at greatest length in his " A Country without Strikes."] London Labour Conciliation and Arbitration Board, Reports of the. Annually since 1891. Rules and Byelaws of the. 1897. LoTiscHius, E. tjber Einigungsamtor und gewerbliche Schiedsgerichte. Leipzig. LoTMAR,— . Die Tarifvertrage zwischon Arbeitgebern und Arbeitnehmern. Archiv fur Soziale Gesetzge- bung, 1900. LoTZ, W. Das Schieds- und Einigungsverfahren in der Walzeisen- und Stahlindustrie Nord-Englands. Schriften des Vereins fiir Sozial Politik, XLV. Leipzig, 1890. L'arbitrage et la conciliation dans I'industrie des fers lamines et de I'acier du nord de I'Angleterre. Revue d' Economic Politique, 1890, pp. 461 and 553. See Arbeitseinstellungen. LovESY, C. W. Law of arbitration between masters and workmen. London, 1867. Lowell, J. S. Industrial arbitration and concilia- tion. New York, 1893, 214 RTRLTOORAPHY. Lowell, J. S. Induatiial Arbitration and Conciliation. Boston, 1895. Voluntary Arbitration. American Journal of Social Science. XXVIII. LozK, E. Conciliation et Arbitrage dans lo bassin houiller (111 Nord, 1889-98. Paris 1899. LuDWio-WoLF, L. F. Das gowcrblicho Srhiedsgericht, Hoiiie Hedeutung uiid Kinrichtung. Ein Beitrag zu diescr Krage. Leipzig, 1872. Wio sind Schieds- und Eingnngsiiinter einzu- richtcn ? Srhriften do3 Vorcins fiir Sozial Politik, II. Leipzig, 187;?. LusK, II. H. Compulsory Arbitration. The ex])erience of New Zealand. Peters, Labour and Capital. Now York, 1902. [The author is entirely favourable to compulsory arbitration.] The successful prevention of strikes in New Zealand. Warld's Work, February, 1902. M'PnERSON, J. B. Voluntary Conciliation and Ar- bitration in Great Britain. Bulh^tin of the U.S.A. Dcpartmont of Labour, No. 28. Washington, May, 1900. Macarthur, \V. The American Trade Unions and Compulsory Arbitration, Forum, February, 1901. Macoregor, J. Compulsory Arbitration. Is it a success ? Dunedin, 1901. Compulsory Arbitration at Work. Nalional Re- view, XXXIV. [The writer is strongly opposed to Compulsory Arbitration.] McMakin, F. The moral element in industry. Peters, Labour and Capital. New York, 1902. Macrosty, H. W. State Arbitration and the Minimum Wage in Australasia. Political Science Quarterly, March, 1903. Mann, T, Conditions of Labour in New Zealand. Nine- teenth Century and After, September, 1902, BIBLIOGRAPHY. 215 Marshall, A. Preface to Price's Industrial Peace. London, 1887. Mason, N. T. Compulsory Arbitration a Practical Remedy. Arena, September, 1896. Massachusetts. Bureau of Statistics of Labour. Eighth Annual Report, 1877. Chapter on Industrial Arbitration and Conciliation in Massachusetts. Bureau of Statistics of Labour. Twelfth Annual Report, 1881. Chapter on Arbitration and Con- ciliation in Pennsylvania and Pittsburg. Massachusetts State Board of Arbitration, Reports of the. Annually since 1887. Masters and Operatives, Report of the House of Commons Committee on, appointed in February, 1856, to inquire into the expediency of establishing Equitable Tribunals. [The results of the above Report are summarised in the British Ahnanacl; and Companion, 1857 article : Arbitration in Trade Disputes.] Mataja, V. Les projets de loi frangais et italien con cernant I'arbitrage et les conscils de prud'hommes Revue (T Economie Politique. 1892. Mattrorez. J. Notes sur la conciliation entre patrons et ouvriers. Revue Politique et Parlementaire, 1898 Meissner, H. a. Die Fabrikgerichte in Franlcreich Leipzig, 1846. Specialgerichte fiir unsere Fabrikgewerbe. Leip zig, 1846. Menzinger, L., und Prenner, J. Gesetz betr. die Gewerbegerichte in der Fassung der Novelle vom Jahre 1901. Munchen, 1902. Metin, a. Le Socialisme sans Doctrines. Paris, Felix Alcan, 1901. Mission de. Legislation ouvriere et sociale en Australie et Nouvelle-Zelande. Office du Travail. Paris, Imprimerie Nationale, 1901. [Both these works are the same, though published by different publishers and under difiorent 21G BIBLIOGRArHY. Mktin, \.— continued. titles. I mention both to save the reader from confusion, as some writers quote one and Homo the other. The ex])hination of these two eilitions is best given in M. Albert Metin's own words, from the preface tn his Socialismo sans Doctrines: "The Department of Labour has published the report, drawn up as a result of my encjuiry, from the National Printing OHice. [Ix'gislation Ouvriere et Sociale en Australie et Nouvelle-Zt'lande, 19<)1, in-H"" de iii., 200 p.] The (tbject of the present publication is to put the work within the reach of a larger number of readers," 'Ihe ollicial edition, it may be added, is considerably cheaper than the private one.] Arbitrage et Conciliation, en Nouvelle-Zi'dando. Rtrue (Tt^conomie J'oitiique, Fcbruarv, 1901. MiLis(H,— . Das Gewerbegericht zu Berlin. Berlin, 1891. MiTCHKi.i., J, Compulsory Aibitration : the Coal Miners. Peters, Labour and Capital. New York, 19()2. [The author is opposed to Compulsory Arbitration.] MlTTKIH NGEN DES VeRUANDES DEUTSCHER GeWERBE- OKRicHTE. Fortnightly. [This publication gives the latest information and ligures concerning the German Industrial Courts.] MuLLER, R. UND HiRscii, W. Gewerbegcrlchte und Einigungsamter in Deutschland und England. Leipzig, 1892. Morgan, B, H. The prevention of strikes and lock- outs. Engineering Times, May and June, 1902. MoRUANGE, S. £tude sur les Conseils des Prud'hommes suivie d'un avant-projet de la loi ri^organique. Bruxclles, 1849. MoRissEAUX. C. Conseils de I'Industrie et du Travail. Bruxelles, 1890. BIBLIOGRAPHY. 217 MoRSBACH, T. Die Pariser Gewerbesyndikate. Jena, 1878. MosEiEY, E. A. Arbitration as Applied to Railway Corporations and their Employees. Transporta- tion, 1893, MosELY Industrial Commission, Reports of the Delegates of the. Manchester, 1903. [The reports give the impressions of Trade Unionista about Conciliation and Arbitration in general, and about the National Civic Federation of America in particular.] MuGDAN, — . UND CuNo, — . Gewerbegcrichtsgesetz vom 29 Juli, 90. Text mit Anmerkungen. Berlin. MuN, A. DE. Graves, Arbitrage et Syndicats. Reforme Sociale. May, 1901. MuNDELLA, A. J. Arbitration and Conciliation in the Settlement of Disputes. Transactions of the National Association for the Promotion of Science. 1808. Arbitration as a means of preventing Strikes. Bradford, 18(38. MuNROE, J. E. C. Sliding Scales in the Coal Industry. Proceedings of the British Association, 1885. Sliding Scales in the Coal and Iron Industries from 1885 to 1889. Manchester, 1890. Sliding Scales in the Iron Industry. Journal of the Manchester Statistical Society, 1885. National Civic Federation of America, Report of the Industrial Conference held under the auspices of the. New York, December 16th and 17th, 1901. New York, 1902. [This report has also been published under the title of " Industrial Conciliation," New York, 1902, in Putnam's " Questions of the Day Series." An account of the foundation of the National Civic Federation will also be found in this Report.] 218 BIBLIOGRAPHY. National Civil Fedkkation of Amkric \—continuid. Report of tlie Industrial Conference held under the auspices of. New York, December 8tli, 'Jth, and luth, VM2. New York, li)U.i. Monthly Review. [This pu})liration of the National Civic Federation has appcareil irrej^'ularly since April, lUO.'J.J New Sotth Walks. Rt>port of the Royal Commission on Strikes, together with Conciliation and Literary Appendices, Sydney, 181) L [The appendices show the position of Industrial Conciliation and Arbitration in various coun- tries at the time the Report was made, and al.so contain a comjjilation of bibliographies on labour f|Ut'stions.] Industrial Arbitration Reports and Records. Vol. I. Sydney, IWJ. Vol. II. In si.x parts. Sydney, 1903. Vol. III. Part 1. Sydney, l'J04. Manual of the Trade Disputes, Conciliation and Arbitration Act of 1802. Sydney, 18«)2. New York State Board of Mediation and .\RniTRA- TioN, Reports of the. Annually since 1887. [These Reports frequently reprint recent American and foreign laws and reports.] New Zealand. Awards and Recommendations of the New Zealand Arbitration Tribunals. Welling- ton, 19(X), lUUl, 1W2 and I'JO;]. [These publications contain only what has already appeared in the Journal of the New Zealand Department of Labour J\ New Zealand Compulsory Conciliation and Arbi- tration Law, Report of the New South Wales Royal Commission of Inquiry into the working of. 1901. [This report, made by Judge Alfred P. Backhouse, is one of the most valuable there are on the subject. It is favourable to Compulsory Arbitration.] BIBLIOGRAPHY. 219 New Zealand Department of Labour, Journal of the. Wellington. Monthly since 1892. [The Journal contains details of the various cases tried under the Industrial Conciliation and Arbitration Act, j Reports of the. Wellington. Annually since 1892. Newton, W. Masters and Workmen; Evidence... before a Select Committee... of the Causes of Strikes and the Desirability of Establishing Equit- able Councils of Conciliation. London, 1856. North, S. N. D. Industrial Arbitration, its Methods and its Limitations. Quarterly Journal of Econo- mics, July, 189G. Oppeniieim, H. B. Gewerbegerichte und Kontrakt- bruch. 187L Ortstatut fiir die Stadt Berlin betr. das Gewerbegericht zu Berlin. Berlin, 1893. Otte, — . Die Gewerbegerichte und Einigungsamter. Halle, 1891. Pabst, G. Gewerbegerichte. Statistisches Jahrbuch deutscher Stadte, 1895. Paillottet, — . Des Conseils de Prud'horames. Jour- nal d' Economie, November, 1847. Pannier, — . Deutsches Reichsgesetz betr. die Gewer- begerichte vom 29 Juli, 90. Text-Ausgabe mit An- merkungen. 4 ed. Leipzig, 1890. Parsons, F. Compulsory Arbitration. Arena, March, 1897. The Abolition of Strikes and Lockouts. Arena, January, 1904. [The writer deals mth New Zealand Compulsory Arbitration very favourably.] The Story of New Zealand. Passy, E. L' Arbitrage et la Greve. Journal des Economistes, 1890. Payen, F. Une tentative recente de 1' organisation du travail : les Conseils d'Industrie et du Travail en Belgique. Paris, 1899. 220 nilUJOORAPHY. Pennsylvania. liuroau of Industrial Stutistica. Seventh Annual Koport. 187H-9. Chapter on Arbitration and Conciliation. Pkronnet, C. La Conciliation et I'Arhitrago en raatitJre d«? conrtitvS collectif.H entre patrons et ouvriers ou eniployt^s. Paris, 1K97. Pkters, J. P. (oditor). labour an. Ziiin .Sozialen Fricdeu. Leipzig, 1890. ScHWiEDLAND, E. Un projct dc loi fran^ais sur les 8oi-disant conseils dc conciliation. Revue d^ Econo- mic Politique, 189G. Seilhac, L. de. La CJKvc ct I'Arbitrage. Le Carres- fondanl, December, 1902. Les Greves. Paris, 1903. Siegfried, A. La Democratie en Nouvelle-Zelande. Paris, 1901. [" This is undoubtedly written with great ability, and the chapters devoted to the arbitration laws appear to me accurate and impartial, if some- what chilly." W. P. Reeves.] Une cuquete. . . sur la Nouvelle-Zelande. Revue Politique et Parlementaire, Jan., Feb. and Mar., 1900. Sladen, L. B. The London ConciUation Boaid. Econ- omic Review, April, 1893. Sliding Scales, Particulars of. Past, present and proposed scales. Published by the Lancashire Miners' Federation, Manchester, 1886. Smart, H. R. Miners' Wages and SUding Scales. Glasgow, 1894. Smart, W. SUding Scales. Palgrave's Dictionary oi Pohtical Economy, III. 410. SUding Scales. Studies in Economics. London, 1895, pp. 63-106. Sombart, W. Das itaUenische Gesetz betr. die Einsetz- ung von Probi Viri. Archiv fiir Soziale Gesetz- gebung, VI. 594. Spire, M. A. ConciUation et arbitrage facultatifs ou obUgatoires. Revue Politique et Pafliamentaire. Aug. 1896. BIBLIOGRAPHY. 225 Spyers, T. G. The Labour Question. London, 1894. [An epitome of the evidence collected and the recommendations made by the Royal Commis- sion on Labour.] Stahl, J. M. Compulsory Arbitration : the Innocent Public. Peters, Labour and Capital. New York, 1902. [The Author is unfavourable to compulsory arbitra- tion.] Standard Piece Rates of Wages in the United Kingdom, Reports on, 1893 and 1900. [These reports contain a detailed account of the Sliding Scales in the United Kingdom.] Standard Time Rates of Wages in the United Kingdom, Reports on, 1893 and 1900. [These reports contain a list of the working rules and other documents, exclusive of Piece Rate Lists, regulating wages, hours of labour and other working conditions in existence in 1893 and 1900, as far as they were known to the Department of Labour.] StATISTIQUE DES GREVES ET DES RECOURS a la CONCILIA' TiON ET A l'arbitrage. Office du Travail. Annually since 1893. [Figures are given here showing the work of the Act of 1892.] STATUTES, ETC. Belgium.— The law of March 18, 1806. April 9, 1812. February 7, 1859. August 16, 1887. July 31, 1889. November 20, 1896. Canada. — Conciliation Act, 1900. England.— 43 Geo. III. Ch. 151 (1803). 5 Geo. IV. Ch. 96 (1824). 7 Will. IV. and 1 Vict. Ch. 67 (1837). 8 and 9 Vict. Ch. 77 (1845). <4 226 HIBUOGRVPIIY. STATUTES, Ere— con/ j/med. England — continued. 8 and 9 Vict. Ch. 128 (1845). 30 and .-il Vict. Ch. lOo (18G7). 35 and 30 Vict. Ch. 40 (1872). 38 and 3li.shotl [in .\rbitration] by the Industrial I)t'i);irt,nn'nt, National Civic Fed»'ration. Annals of the American Academy, July. r.K)2. Streiks UNI) .Vi'sspFRRUNOEN. Statistik dca Deutachcn Heichs. Annually since 18UI). [These Hrports contain fi^^jres showing the amount of Conciliation taking? place in fJermany.] Strikes and Lockouts, Reports on. .Vnnuallv since 1888. [These Reports give information with regard to strikes and lockouts 8cttle9, 194; Wages in New Zealand, 153. 154. 190, 191 ', Wellington grocer's dispute, 155 North of England Manufac- tured Iron and Steel Trade, 59 Northumberland Coal Trade, 50 Nottingham Hosiery and Glove Trade, 4(i, 47 Nottingham Lace Trade, 01, 02 Ohio, 139, 141, 142 Outside Umpire, 28- -31 Pennsylvania, 143 Pig Iron Industry : Concilia- tion and Arbitration in, 59, 00 ; Sliding scales in, 07 — 09 Position of women workers (N. Z.), 102 Preference to unionists, 150, 157 Prices in New Zealand, 103, 199, 192 Private Conciliation and Arbi- tration : In Belgium, 81 ; In France, 81 ; In Germany, 81 ; In the United King- dom, 45 — 05 ; In the United States, 73—81 ; Question of the failure of, 87—90 Probi Viri, 135 Prud'hommes, Councils of : In Relgium, 131, 132; In France, 110— 120; Proposed reforms, 12U Pullman Strike, 73 QUAUFICATIONS OF AN ARBI- TRATOR OR Umpire, 29, 30 Reed. W. A.. 17 Reeves, W. P., 88, 89, 174, 189. 190 Repudiation of Awards, 19, 20, 34, 42 Ricardo, 2, 4 Rise in ])rices in New Zealand, 103, 190, 192 Rise in wages in New Zealand, 153, 154. 190, 191 Rosebery, Lord, 58 Royal Councils, 125 SlEOFRlEP, A., 171 Sli