tO^(^^ N'^^S.V t. Brit. J i-'jnittee on insurance In a£'rlcnlt Report, LLIBI I ^ ^ ===? ■ ^^H X ^^^^30 ^H 2 ^ ^^^H *- — -= -n 1° ' 1 AGRICULTURAL WAGES BOARD. (ENGLAND AND WALES.) REPORT OF THE COMMITTEE ON UNEMPLOYMENT INSURANCE I\ AGRICULTURE. Presented to both Houses of Pariisimcnl bv Command of His n^ujestv. <« LONDON : PRINTED AND PUBLISHED BY HIS MAJESTY'S STATIOxXKUY OFFICE. tT?,*'''..!,'",''.^'''^*'*''^ throui/h any Book>ieller or directly from II.M. STATION KHY OFFICE at the lollowin^ .iddres,,e9 : iMfKiu.M, llorsE. KiN(i.s\VAY. LONDON, \V.c.2, and i», AiiiNODoN stueet. London, ,-<.\vi • 37, I'ETEU STUEEr. MVNCHESTEU- 1, St. anduews CUES! KNr, Cakdiff- 23, Forth street, EDiNBtTRrni • or from E. PONSONBY, Ltd., 116, Grafton street. Dublin. l'J21. [Cmd. 1.S41.] rr'ire Itl . \rf. The cost of printing and publishing this Report is £16 lOs. Od. AGRICULTURAL WAGES BOARD. (ENGLAND AND WALES.) REPORT OF THE COMMITTEE ON UiYEMPLOVMENT INSURANCE AGRICULTURE. 1. The Committee was appointed by the Agricultural Wages Board on December 2nd, 1920, with the following reference : — To enquire into and report upon the extent to which the Unemployment Insurance Act might be made applicable and beneficial to agricultural workers. The Committee was constituted as follows : — Chairman — Sir Henry Rew, K.C.B. ; Representatives of Employers — Messrs. G. G. Rea, C.B.E., and T. H. Ryland ; Representatives of Workers — Messrs. George Dallas and W. R. Smith; M.P. 2. Tlie Committee have held three meetings and have carefully considered the evidence which was laid before them. It was not considered necessary or advisable to invite the attendance of witnesses, partly on the ground of expense and partly because evidence of a general character was considered more useful than •evidence by individuals as to localities which might not be pro- perly representative of the condition of the whole country. 3. The main evidence before the Committee was derived from four sources, (a) reports from the members of District Wages Committees, (b) reports supplied from the Employment Ex- changes by the Ministry of Labour, (c) returns supplied by the National Union of Agricultural Workers, and id) returns supplied by the National Farmers' Union. Memoranda have also been laid before us on the subject of the fluctuations of employment in agriculture during the war ; on schemes for dealing with agri- cultural unemployment abroad ; and on the main points which would require consideration and settlement in the drafting of a special scheme under the Unemployment Insurance Act. These Memoranda are given in the Appendices I-III. (33182) Wt.4n2-702 15O0 >t 90 6/21 H.St. G. 36 4. The terms of the reference did not appear to contemplate the consideration of any method of dealing with unemployment in agriculture other than by insurance under the Unemployment Insurance Act, but the Committee considered that proposals for a purely voluntary scheme outside the Act should not be excluded. There are three methods by which insurance against unemploy- ment may be possible : (1) by the inclusion of the industry of agriculture in the general scheme provided by the Unemployment Insurance Act, 1920, (2) by the adoption of a special scheme for agriculture under Section 18 of the Act, or (3) by a purely voluntary scheme outside the Act. Before either of these methods could be adopted certain preliminaries are necessary. 5. By virtue of paragraph " a " in Part II. of the First Sche- dule to the Act of 1920 employment in agriculture, including horticulture and forestry, is excepted from the scope of the insur- ance scheme, and neither employers nor workers in that industry are liable to pay the contributions required of employers and workers in almost every other industry. But by Section 4 " The Minister (of Labour) may, with the approval of the Treasury by order provide for including among the persons employed with- in the meaning of this Act any persons engaged in any of the excepted employments specified in Part II. of the First Schedule to this Act, in any class or description of the persons so engaged, either unconditionally or subject to such conditions as may be specified in the Order. Before any such Order is made a draft thereof shall be laid before each House of Parliament for a period of not less than twenty days during which the House is sitting, and if either House, before the expiration of that period, present an address to His Majesty against the draft or any part thereof, no further proceedings shall be taken thereon, but without pre- judice to the making of any new draft order." No definition is given in the Act of the words agriculture, horticulture or forestry, but Section 10 provides that " if any question arises as to whether any employment or any class of employment is or will be employ- ment within the meaning of this Act, or whether a person is or was an employed person w^ithin the meaning of this Act, the question shall be decided by the Minister (of Labour) provided that (i) any person aggrieved by the decision of the Minister on any such question may appeal from that decision to the High Court, (ii) the Minister may if he thinks fit instead of himself deciding any such question refer the question for decision to the high Court. The Minister may, on new facts being brought to his notice revise any decision given by him under this Section, other than a decision against which an appeal is pending or as respects which the time for appealing has not expired, and an appeal shall be against any such revised decision in the same manner as against an original decision." It appears, therefore, that while the powers of the Ministry in deciding whether any particular person or class of persons is or is not insurable under the Act are confined to a judgment on the facts, and there is no means by which a person or class of persons may secure inclusion under the Act of their own motion, the ^Minister has power — with Treasury sanction — and subject to an adverse vote of either House of Parliament, to bring all persons engaged in agriculture or any class of persons so engaged within the scope of the Act. It would aj)pear to follow from this that a particular class of agricultural workers, such as shepherds, market gardeners or foresters, could be brought under the genei'al scheme of the Act to the exclusion of other persons engaged in the industry. 6. The arrangements for the ad()j)tion of a special scheme under the Act are set out in Section is, the main provisions of which are as follows : "If it appears to the Minister that insurance against unemployment in any industry can be more satisfactorily provided for by a scheme under this Section than by the general provisions of this Act, the Minister may, subject to the provisions of this Section, approve or make such a scheme, and any such scheme is in this Act referred to as " a special scheme." The Minister may by special order approve for the purposes of this Section, and whether with or without amendment, any scheme which is made in respect of any industry by a joint industrial council or an association of employers and employees, and which provides for the insurance against unemployment of all the employed persons in the industry or all those persons other than any specified classes thereof, and the benefits under which are, in the opinion of the Minister, not less favourable on the w^hole than the benefits provided by this Act." Provision may be made by a special scheme for insuring persons to whom the scheme applies against partial as well as complete unemployment. For the purposes of this Section the expression " industry " means any class or classes of establishments or undertakings in any area which the Minister may determine to be an industry for that purpose, and the expres- sion " association of employers and employees " means an asso- ciation so constituted that the members of the association who are employers consist of persons emplojdng a substantial majority of the employees in the industry, and the members who are em- ployees consist of persons representing a substantial majority of the employees in the industry." From this it would appear that a special scheme can only be approved if the industry for which such a scheme is desired is already included under the general provisions of the Act, and that if a special scheme is desired for agriculture it \Aould be necessary to secure the issue of an Order such as is descrii)ed in paragra])h 5 of this Peport, with the under- standing that it should at once be overridden by the adoption of a special scheme. Furthermore, such a special scheme can only be put forward by a joint industrial council or by an association of employers and employees icjiresenting a substantial majority of the employers and workers in the industry. It is possible that the Agricultural Wages Board might be recognised for the [uir- poses of this Section as an association of employers and employees, but it is clear that af)prova] could not be obtained for 6 a special scheme without the consent and co-operation of both employers and workers, and the concurrence of the Ministry of Labour. Finally, though arrangements might be made for ex- cluding certain areas where special conditions prevail, it would be an essential part of any such scheme that all the persons engaged in the industry as defined by the Minister of Labour should be included. No scheme could be approved which provided for the insurance of a highly paid class to the exclusion of those in receipt of lower wages or for the inclusion of those regularly employed to the exclusion of the casual labourers. The privileges of a special scheme must be offered to all or none. 7. The advantages of a voluntary scheme are that it is free from the conditions imposed by the Act. It would be possible to formulate a plan applicable to any part of the country, or to any section of the industry. Under the conditions which prevail in the north of England one scheme might be adopted while another might be adopted elsewhere. An insurance fund might be started for shepherds only, or for horticultural workers or motor ploughmen. Contributions might be fixed to meet the probable rate of unemployment in each class, and the manage- ment and control of the funds would be entirely in the hands of the contributors. The disadvantages are that there would be no Government aid, which in the case of those persons under the general provisions of the Act, amounts to one-third of the com- bined contributions of employers and workers, that is to say, twopence per week for men and 1'6 of a penny for women, or, under a special scheme, 0'6 of a penny — a trifle more than a halfpenny — for men and one halfpenny for women. In any case it is clear that the general consent of both employers and workers would be necessary to secure the adoption and successful working of any voluntary scheme, as it would in the case of a special scheme under the Act. 8. Under these circumstances it seemed to the Committee that their course of enquiry must necessarily follow two lines, the first leading to the investigation of the incidence and nature of unem- ployment, and the second to the views of all persons concerned in the industry as to the desirabihty of inclusion in some scheme of insurance. Of these two the second is clearly the more im- portant. Unless there is a general agreement on both sides no special scheme can be considered by the Ministry of Labour, and equally no independent scheme can be formulated or become operative. But it appears evident that the willingness or unwill- ingness to come to an agreement is dependent upon the nature and frequency of unemployment. The employers' representatives on the Committee have ex- pressed their opinion that there is no prospect that the members of the National Farmers' Union vdll support any scheme for insurance unless it can be shewn that the incidence of unem- ployment is serious or at least likely to become so. It was necessary, therefore, to take such steps as were possible to estimate the nature and extent of unemployment in agriculture. 9. No attempt was made to examine at length the history of Agricultural unemployment. It is notorious that in the past, farm workers frequently suifered severe hardship from this cause, which was often accentuated by reason of the low wages com- monly paid to men in work and their inability to lay by any savings sufficient to tide them over such emergencies. The causes which led to this state of affairs are fairly obvious. The country is the great breeding place for mankind, and till quite recently when town life has been influenced by improved sanita- tion, better means of transport and a higher standard of life, it was in the country districts that population increased. As long as additional land could be put under cultivation, part at least of this increase could be and was absorbed in agriculture, but when this development ceased and agriculture could no longe'- profitably employ more workers, migration to the towns or other forms of industry becomes the only resources for the surplus population. The immense growth of industrial enterprise in certain periods of the nineteenth century drew off large numbers of agricultural workers, but whenever this growth was checked the effect was felt in the rural areas. During the latter part of the nineteenth century the long de- pression in agriculture led to changes in the methods of farming, which with the extensive introduction of machinery brought about a great decrease in the number of men employed on farms. But with this decrease came greater stability, for the fewer the men employed the more tKey are essential to the conduct of the farm, and there seems no doubt that in most districts the large majority of farm workers are in constant employment year after year. 10. The European War seems to have accelerated and in- tensified this movement. At the outbreak of hostilities large numbers of agricultural workers joined the Army, others left for munition works, coal mines, and other forms of industry which were clamouring for labour, and offering higher wages than those gained in agriculture. At a later stage conscription made iurther drafts on the reduced numbers, and during the years 1916, 1917 and 1916 no able-bodied man or woman who desired work on the land failed to find it. All kinds of substitute labour were employed, moat of which was discarded as soon as possible after the army was demobilised. But when all was over and acrricultural workers were released from militarv service it was estimated that there were about a hundred thousand fewer men employed in agriculture in England and Wales than in 1914. 11. During the whole of the period of the War, however, it appears from the evidence supplied by the Ministry of Agriculture and Fisheries in a memorandum based on quarterly returns supplied by a large number of farmers, the number of men and women, employed both regularly and casually, varied according to season. The maximum was reached, as might be expected in July, the number sank by Octoi^er and was lowest in January, rising again somewhat in April. The actual 8 variations in tlie number employed on the farm were masked by the employment of sokliere, German prisoners and relatives of farmers, but it is quite clear that during that period farmers not only discharged men and women when they no longer required them — but were able to take them or others like them on again as required in the spring and summer. As it is incon- ceivable that there was any large surplus population in those ^•ears who were out of work, the inevitable conclusion is that there is a certain class of workers who favour the pursuit of agriculture during the summer and some other occupation during the winter. It is impossible to suppose that these people support themselves for twelve months on the wages earned in agriculture during six. 12. The exact number of the workers thus atfected cannot be stated, nor can any indication be given as to the nature of the ■other occupations followed in the winter. But from various mdications it is computed that the number amounts to about 5 per cent, of the maximum number employed in the summer. If this can be relied upon, it supplies a clue to some of the <;onfiicting evidence laid before the Committee. There is always a tendency on the part of employer correspondents to assume that discharges of farm workers must mean unemployment for the workers dismissed. They are not always in a position to say definitely that the men have not succeeded in getting work elsewhere. In the event of this taking place it is clear that the men are not unemployed, even though the new engagement may be of a temporary character and may cease about the time that the farmer is ready to take on fresh workers for sjiring and summer duties. 13. There is another source of error which must also be avoided. During the War, as is well known, large numbers of agricultural workers left the countryside to seek employment in the towns. The usual exodus, which has been going on for many years, and is common to almost every country was accentuated beyond all previous experience. As long as the War industries were prosperous there was work for all, but when the depression in trade began, many men were discharged and failing to find engagements in the towns attempted to find employment in agriculture. Many of those who sought work on the farms had no previous experience in agriculture, and were in consequence unacceptable. But as they attended the hiring fairs or sought w^ork in public their failure to obtain employment attracted attention and was duly reported in the public press, with the result that the impression has been created that many genuine agricultural workers have been unable to secure employment. Eeports .as to the number of men who failed to get taken on at the hiring fairs cannot therefore invariably be accepted as evidence of agricultural unemployment. If these considerations, however, are borne in mind, it is possible to get at some estimate of the incidence of agricultural unemployment from the returns wliich have been received. 9 14. The iSiatiuual i^'anucrs' IJiiiou sent a circuiar lelt' r to all tlieir l-iiajicii Secretaries, putting the following questions : — 1. Is uiu'iiiployiuent ol bona fide iigi'iciiltiiriil wurkers in your district in excess of the uonnai for this time of year (December)? 2. If so, have discharges been made owing to any special cause? M. Approximate number of men permanently engaged in agriculture out (jf employment January, l'J20 — January, 19*21. 4. Approximate number of men casually engaged in agriculture out of employment January, 1920 — January, 1921. ;-). .\ny particular district where there is an increase of unemployment. The number of replies was not very great, only 26 counties furnishing information ; in the Holland Division of Lincolnshire, Sutfolk, the East Hiding and Merionethshire the replies to the first question were in the affirmative. In Berkshire, Derbyshire, Devonshire, Durham, (lloucestershire, Hertfordshire, Kent, Leicestershiie, fjincoln, Kesteven and Jjindsey, Middlesex, Monmouthshire, Norfolk, Northamptonshire, the Soke of Peter- boro', Somerset, Staffordshire, Sussex East, Warwickshire, York- shire (West Riding), Brecon and Radnor, Cardigan and Carnar- vonshire the answer was in the negative. In two counties seasonal unemployment was said to be less than a year ago, and in three cases tliere is a complaint that sufficient labour cannot be obtained. Even where unemployment was said to exist it is ascribpd to the forward state of farm work owing to the open weather. In Lincoln (Holland) " discharges are due to the fact that there is no market for potatoes, and riddhng is suspended." In Suffolk it is said that " the standard of fann- ing is just as high in the districts where unemployment prevails as where everyone is employed, so tliat it appears that the usual population in some parishes is in excess of requirements of farmers." Where discharges have taken place it is generally said that the old and the inefficient men are those who fanncjt get work. 15. The National Union of Agricultural Workers had been engaged on compiling a return of unemployment l)efore the ajipointmenl of this Committee, and their figuies refer to a slightly earlier j)eriod than the reports of the National Earmers' Cnion. They showed, however, that the extent of unemployment was small. Replies were leceived from only one-third of the Branch Secretaries to whom the circular was sent, but it is a lair deduction that if unemployment was a serious (piestion in those places from which no reply has been sent, the T^nion would have been infonned. Only four counties reported more than a hundred men out of work, and only one (Norfolk with 404 > more than two hundred. It is noticeable that the counties from which iiniMnpJovinent was reported were nol the same as those 33182 A -I 10 in which the conospundeiits ot the National Farmerti' UiiioD believe it exists. 16. The informatioji received from the members of the JJistrict \Vage.s Committees was much greater and more complete than either of those referred to above. A form of enquiry reproduced in Appendix IV* was sent to each member of the Committees, and the replies have been carefully compiled and summarised by the staff of the Agricidtural Wages Board in the report attached hereto. (Ap[)ejulix V.)* The general coiiclusjons bear out the opinion that there is little or no unemployment among skilled agricultural workers, and that where it exists it is among the unskilled or the inefficient workmen, and to that extent are in agreement with the reports received from the National Farmers' Union and the National Union of Agricultural Workers. But divergence appears as soon as an attempt is made to state where any abnormal unemploy- ment exists. As the summary states '^' In the majority of the counties .unusual unemployment is reported from one or more districts. These reports are in some cases in conflict with other reports for the same district, and in other cases are the only rejjort for a district, and so estimates given are not con- firmed." It would appear, however, from these returns that there was unusual unemployment in Cumberland, Westmorland, the East and West Eidings, Herefordshire and Warwickshire, Hampshire and Wiltshire, Berkshire, Anglesey, Carnarvonshire and Merionethshire, a conclusion which with few exceptions is not borne out by the reports from the Unions referred to. It seems impossible to resist the assumption that the expression unemployment is used in a different sense by different corre- spondents. 17. By the good offices of the Ministry of Labour a series of figures have been obtained from the Employment Exchanges of England and Wales, a brief note on which is given in Appendix VI. The Divisional Officers of the Exchanges also furnished observations as to the causes and nature of unemployment in agriculture within their districts based on certain questions sub- mitted to them from the Ministry of Labour. The figures supplied show the most remarkable result and appear to indicate (hat there is less unemployment in 1921 than in the beginning of 1920 while the reports of the Divisional Officers suggest that it is increasing. The known fact, however, that few agricultural workers register themselves at these Exchanges and that few farmers avail themselves of their services when wanting additional labour, makes a reliance on the figures unsatisfactory. It is also suggested that the exclusion of agricultural workers from the scope of the Unemployment Insurance Act has vitiated the value of the returns. In any case there is no trustworthy evidence that unemployment is moreprevalent in one county than another. 18. The general conclusion to be drawn from the evidence available is that while there is no doubt very little lack of • Not printed. 11 employment among highl}' skilled and experienced agricultural workers, it is inipossibje to say to what extent it prevails among the less skilled men, or whether the undoubted reduction in the number of workers on the land which has taken place dining and since the War had led to the men who had been discharged securing other permanent engagements or drifting into the position of casual workers dependent on chance and irregular employment for their living 19. While it is therefore impossible to say except in very general terms, whether unemployment prevails in ;igriculture, there is no doubt that the extent to which unemj)loyment is feared must be indicative in some degree of its prevalence. However confident the young may be of their own value and their capacity for getting employment, however careless the} may be as to the consequence of lack of work, it will hardly be contended that the married labourer with a young family will not regard the prospect of unemployment for a long period with all its attendant miseries without fear and anxiety if it were likely to occur Ihrough no fault of his own with common fre- quency. This has been realised by Parliament in the Act pro- viding unemployment benefit for all who have paid their necessav} contributions From the scope of this Act, as is well-known, agriculture has been excluded. But so far no large body of agricultural workers has protested against exclusion while evi- dence afforded by the returns made to the National Union of Agricultural Workers shows that there is at least a large number of labourers who do not desire to be included. These men are to be found not only among the Northern Counties where yearly and half-yearly hirings are common, but also in Norfolk and Tjincolnshire where weekly engagements prevail, as well as in other parts of England and Wales. No indication has been afforded as to the reasons which have led to this expression of opinion, but it may be taken as strong in-esnmptive evidence that the dangers of unemployment do not present themselves as imminent to those who hold these views. Under these circum- stances, therefore, the Committee are of opinion ihat it would not be desirable at the present time to press for the inclusion of agriculture in the general provisions of the Unemployment In.surance .'\ct, 1920. 20. The Committee have considered whether it would be pos- sible to prepare a special scheme for agriculture under Section 18 of the Act. It is understood that it would be necessary to secure the inclusion of agriculture under the Act in the first place in order that it might be afterwards excluded by a special scheme, and this would involve the necessity of ensuring in advance that the special scheme would be acceptable and practicable. Enquiries were therefore made from the Ministry of Labour as to what conditions it woidd be necessary to fulfil before such a scheme could meet with approval. It appears that it would be requisite to submit actuarial calculations as to the rate of con- triFutions and schemes for disposal of the funds, as well as for providing for an employment register. 12 21. Apart from the difficulty of framing a special scheme which would be accepted by the Ministry of Labour, there appears at present to be no likelihood of attaining the agreement between employers and workers which is a condition precedent to any such action. Nor is there any indication of an approach to an agree- ment for establishing a voluntary scheme which would clearly be impracticable unless it received the whole-hearted support of the organisations on both sides, and the adherence of the great majority of employers and workers throughout the country. 22. The Committee having so far examined the subject find that they are unable to agree upon any recommendation to the Board and recognise that without such agreement further progress is impracticable. On the facts before them they conclude : — 1. That there is general opposition both by employers and workers to the inclusion of agriculture under the general provisions of the Unemployment Insurance Act, 1920. 2. That there is no evidence that a special scheme for agriculture under the Act would, or would not, be acceptable to employers or workers, and that in any case the information at present available as to the incidence of unemployment in agriculture is in- sufficient for the preparation of such a scheme. 3. That there is no evidence of such general agreement as would be necessary for the consideration of a voluntary scheme of insurance against unemployment outside the Act, and independent of State aid. R. Henry Rew. G. G. Rba. Thos. How.\ed Ryland. W. R. Smith. Geo. Dallas. A. G. L. Rogers, Secretary to the Committee. 12th April, 1921. Reservation by Mr. D.allas. I have signed the Report as I agree with it on the whole, but with regard to paragraph 19 I wish to put on record that although the Report is correct in saying that " no large body of agricultural workers has protested against exclusion " from the Act, I believe that in some districts of different counties there is an undoubted desire to be so included. Geo. Dallas. APPENDIX I. Fli-ctuations or Kmployment in Agriculture during the War. During the war an attempt was made by tlio Board of Trade to collect figures relating to the employment of men in agriculture, and subse 0-06 0-12 ()18 The benefits are Scale 1 „ 2 .. „ 3 Daily. 1-25 2 -.50 3-75 In no case can the daily benefit exceed one lialf daily earnings. Provision is made for Special Schemes as follows: — Art. 28 " When (in consequence of special local conditions or risks, or of otlier circumstances, the force of which is admitted) the Minister, after consulting the Central Executive Council, may declare it obligatory for certain classes of workers, in one or more provinces, to attach them- selves to special Vocational Compulsory Insurance Funds, the same being administered by representatives of the classes concerned and of the State A Decree of the Minister shall establish model statutes for such compulsory funds. Similarly Special Vocational Sections of the Mixed Provincial Funds may be sanctioned in Provinces in which the workers are predominantly grouped according to clearly defined trades. Such Vocational Sections shall be administered by the Provincial Councils. Art. 29 — Vocational Funds set up by organisations of skilled workpeople or in pursuance of agreements between employers and employed to insure against unemployment may be sanctioned in conformity with this present Decree. In order to obtain sanction such Vocational Funds must make an application to the National Office, such application being accompanied by a copy of their rules, a statement showing the number of persons registered therewitli (arranged in classes), and (in the case of Funds which have been already some time in operation), by balance sheets for past financial year. The rules must conform with tlie regulations laid down in the present Law, and must declare that tiie Stat«, as well as the employers called upon to contribute to the Unemployment Fund, siiall have equal repre- sentation with the insured persons on the Board of Administration of such Vocational Fund. Sanction shall be conferred by a Municipal Decree after the Central Executive Council and the Standing Committee of the Higher Council for Thrift and Insurance have been consulted. Sucli Vocational Funds must admit for registration even unorganised workers who may demand it, provided that they belong to the industrial group for which the Fund is operating." In view of this fact that these Vocational Funds belong to organisations of skilled workpeople, that th(>y have as a rule been in operation for some time, and that the agricultural workers in Italy are more than half the total working class population it does not appear likely that agriculture has been or will be included in a special scheme. 16 APPENDIX III. The Main Points which would require Consideration and Settlement ON the Drafting of a Special Scheme. Enquiry was made in accordance with the instruction of the Committee to ascertain the main points which would require consideration and settlement on the drafting of a Special Scheme. Some difficulty was experienced in getting the information from the Ministry of Labour because (1) No application has yet been made for the approval of a Special Scheme, and (2) The Ministry do not quite know by what criterion any Special Scheme whicli might be proposed would be judged. There are, however, certain conditions which would in any case have to be fulfilled, though it is possible others might be added. (1) The Special Scheme must include the industry as a whole. It would be necessary, therefore, to define agriculture very carefully and exactly since confusion might arise as regards certain classes of labour if the contributions payable by agriculture were less than those payable under the Act. (2) A Special Scheme may be confined to a special area, but the Minister must be satisfied that the area can properly be separated from the rest of the industry. (3) Before a Special Scheme can be approved the Minister must be satisfied that insurance against unemployment can be more satisfactorily provided for by such a Scheme than by the general Scheme under the Act, and that the benefits under the Special Scheme are on the whole not less favourable than the benefits provided under the general Scheme. (4) Proposals for a Special Scheme must be made by a Joint Industrial Council or an Association of Employers and Employed in the industry. It is possible that the Agricultural Wages Board might be recognised as such a body. (5) A Special Scheme must provide for setting \ip an administrative bod}' to be described as the Joint Board of Management. The method of selecting and appointing the members of this body must be precisely laid down. Among the functions of this Board will be thase of collecting and safeguarding the funds, administering the benefits, approving in advance periodical estimates of administrative expenditure, and generally carrying out the provisions of the Scheme. (6) Definite arrangements must be made for providing the necessary funds by means of regular contributions fixed at an amount estimated to be sufficient to cover the cost of benefits and administration without requiring special levies in bad times. Powers to make special levies should also be taken, but should be confined to cases where the estimated liabilities are exceeded. The Actuarial calculations of the Scheme are apparently the most important consideration in the eyes of the Ministry of Labour. Any proposal made in that quarter would have to be accompanied by a profession calculation of the incidence of unemployment and the necessary rate of contributions to cover it, and unless this is produced the Scheme would be probably referred back. (7) The Scheme must describe how the contributions are to be collected. The system of cards and stamps is not obligatory. (8) The Scheme must confer a definite right to benefit, subject to the conditions laid down, and the precise amount payable in respect of each day or period of unemployment should be defined. Any requirement as to waiting days should be stated. Before approving a Scheme, the Minister must be satisfied that the cost of providing the benefits proposed would not exceed, on the average, taking good years and bad years togethei-, the income of the fund set up by the Scheme. Sufficient data for actuarial verification of the fulfilment of this condition must be furnished wlien the Scheme is submitted. 17 (9) A Special Scliome must provide for estahlisliinp and maintaininp; a proper system for verifying unemployment, anrl for obtaining particulars of vacancies and notifying them to persons claiming benefit. From this it would appear that a system of Employment Kxchanges would have to form an int<>gral part of any Special Scheme. (10) Definite rules respecting disqualification for benefit in the event of dismissal for misconduct or stoppage on account of a strike, for receiving claims, for ascertaining that the prescribed conditions are fulfilled for paying benefits must be included, . as well as appropriate machinery for settling disputes with regard to claims. (11) Proper provision must be made for the creation of a joint insurance fund under the control of the Joint Board of Management, for investment of the funds, for the necessary audit, valuation of securities and so forth. (12) Finally, the Minister would require evidence that other persons connected with the industry but not included in it, had been consulted and their consent cont-ained, or other objections shown to be unimportant. Such persons would in this connection be steam tackle drivers, and perhaps serai-urban workers not actually included under agriculture, such aa dairymen or florists. [APPENDICES IV and V are omitted.] APPENDIX VI. Reports from Employment Exchanges. The reports supplied by the Ministry of Labour included comparative returns extracted from the books of the Employment Exchanges of farm workers registered as unemployed, and of the number of vacancies notified by farmers in January, 1920, and Januaiy, 1921, and at tliroe intermediate quarterly periods. The following is a summary of these returns for the whole of England and Wales, the totals being made up on the 9th of each month. Workers registered. Vacancies notified. Males. Eemales.l Total. I Males. Females. Total. 1920. January 7,204 102 7,306 .321 54 375 April 4,695 110 4,80.5 421 68 489 July 2,.594 109 2,703 434 99 533 October 1,891 79 1,970 347 30 377 1921. January 3,081 113 3,194 169 13 182 These figures are surprising as they indicate that the extent of unemploy- ment in agriculture, whether measured by the number of workers registered or the number of places notified as vacant, was 50 per cent, less in the winter of 1920-21 than in that of 1919-20. It is recognised that the number of workers registered or of vacancies certified bears no relation to, and is far smaller than the actual number of men seeking work or of employers requiring men, but in the absence of disturbing factors it might be assiimed that a comparison of the figures for different dates would afford some measure of the relative amount of unemployment at one period and another. It is evident, however, that any inferences drawn from a comparison of these returns would be misleading. It is 18 possible that the number of farm workers registered in January, 1920, was aflFected by the fact that the Unemployment Donation had only just ceased and tliat unemployed workers were keeping their names on the register in expectation of the continuance of the Donation, whereas in January, 1921, the number of persons describing themselves as farm workers was reduced by reason of a belief that by so describing themselves they would be disqualified for receiving benefit under the new Unemploy- ment Insurance Act. It may be noted tiiat the male farm workers registered at the Exchanges as unemployed in January, 1920, rejiresented about 1-5 per cent, of the total male agricultural workers in England and Wales, and that the corresponding percentage in January, 1921, was 0-64, but in neither case can this be taken as any measure of the extent of agricultural unemployment at these dates. As regards the number of vacancies notified by farmers, it will be observed that the total fell from 375 in January, 1920, to 182 in January, 1921. While it is evident that only very limited use is made of the Employment Exchanges by farmers at any time, it is difficult to suggest a reason for a greater disinclination to use them in January, 1921, than a year previously. If the figures have any significance they can only be regarded as affording evidence of a slightly increased disinclination among employers to fill the place of men who had left their employment, possibly in consequence of a change in the system of farming. For what it may be worth it may be noted that the average number of applicants registered for each vacancy notified at the various periods was as follows : — Jan., -1920. April, 1920. July, 1920. Oct., 1920. Jan., 1921. Males Females 22 2 • 11 1-6 u 5 2-G 18 9 pwifBisiTr of cAuwomu LOS ANGELEB LIBRARY 7096 Gt. Brit. Com- G7A4 mittee_on unemrL Tg2i ployment insur- ance^ja_aSIlicu]L; ture - Report. This booK is DUE on the last date stamped below UC SOUTHERN REGIONAL LIBRARY FACILITY P|||ll |l III Hill II II II lll||ll||ll|||l AA 000 961 027 u ..