SHOP COMMITTEE A HANDBOOK FOR EMPLOYER AND EMPLOYEE WILLIAM LEAVITT STODDARD AGO 2126 c. V THE MACMILLAN COMPANY HKW YORK BOSTON CHICAGO DALLAS ATLANTA SAN FRANCISCO MACMILLAN & CO., LIMITED LONDON BOMBAY CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA, LTD. TOKONTO THE SHOP COMMITTEE A HANDBOOK FOR EMPLOYER AND EMPLOYEE BY WILLIAM LEAVITT^ STODDARD A. M., HARVARD Administrator for the National War Labor Board, 1918-1919 U3eto gotk THE MACMILLAN COMPANY 1919 A.II rights referred COPTEISHT, 1919 BY THE MACMILLAN COMPANY Set up and electrotyped. Published May, 1919. FOKEWOKD THIS book is neither a treatise, a history, nor a com- plete study of the shop committee movement in the United States and abroad. It is primarily a hand- book, designed to present only the essential principles and facts about this movement to those who desire to know what shop committees are and how they work in a few of the many instances in which they have been established. This book is largely the result of the writer's experi- ence as an administrator for the National War Labor Board, somewhat broadened by research in the field outside of the activities of that Board. This field is but recently come under cultivation: the shop com- mittee is a new thing in industry and is still in the stage of experiment. All the signs, however, indicate that the experiment is a promising one and that for many years to come workingmen and employers will continue in increasing numbers to develop intra-factory machinery intended to eliminate friction, bring about good relations, and promote the practice and extension of genuinely collective bargaining. As an imperfect record of the achievements of recent months in this direction, this volume is respectfully offered to the interested public. WM. LEAVITT STODDAED. Cambridge, Mass. March, 1919. TABLE OF CONTENTS CHAPTER PAGE I THE EARLY BEGINNINGS ..... 1 II THE WAR LABOR BOARD PLAN .... 10 III GENERAL PRINCIPLES 21 IV THE BASIS OF REPRESENTATION ... 31 V THE LYNN PLAN . . . ... .41 VI THREE CHARACTERISTIC PLANS .... 55 VII ELECTION MACHINERY ....... 64 VIII PROCEDURE ......... 74 IX SHOP COMMITTEES IN ACTION .... 82 X THE SHOP COMMITTEE AND THE UNIONS 91 APPENDIX . . 101 THE SHOP COMMITTEE CHAPTEE I THE EARLY BEGINNINGS IT would be very interesting to make a study of the causes and origins of the shop committee movement. If we went at it painstakingly, we might well find our- selves back at the dawn of industrial history when a single cave man employer bargained collectively with a committee of his hired men concerning the piece rate to be paid for killing wolves or digging clams. The fact is that the idea which is to-day finding expression in the shop committee movement is as old as any idea in the world. Its application, however, is relatively new and has, therefore, a relatively short history. For a considerable period as time is measured in this age of rapid change, collective bargaining has been the subject of practical experiment in the garment-making industries in the United States, and much has there been done in the way of securing peaceful and equitable settlement of disputes through machinery which is simi- lar in purpose to that of the shop committee as it is de- scribed in this book. An account of what has been ac- complished in this particular field may be found in " Law and Order in Industry," by Julius Henry Cohen, and the historic relationship between the movement there described and that which is springing up to-day may easily be seen. 2 THE SHOP COMMITTEE The Colorado Plan Probably the most notable early American example of a shop committee system as it is now in course of development is the Colorado Plan. This plan of repre- sentation was adopted late in 1915 in order to control relations between the men and management of the Col- orado Fuel and Iron Company. With the circum- stances of the strike which preceded the adoption of this plan we are not here concerned except to make this re- mark: apparently the adoption of this plan has brought about industrial peace in the section of Colorado in- volved. At the very least it has removed many of the causes of the intensely bitter warfare which at one time called the attention of the country to the Colorado situa- tion and the labor policies of the Kockefeller interests. The story of this plan has often been told, most re- cently perhaps in " Industry and Humanity," by W. L. MacKenzie King, who had much to do with its incep- tion. I choose, however, to quote a brief description of this plan from the report of the Federal Commission on the Labor Difficulties in the Coal Fields of Colorado, ap- pointed by the President in 1914. "Your Commission knows nothing just like it in force anywhere," said the report, after declaring that the Colorado plan was a " new departure in the United States." " The impor- tance of it, as an effort on the part of a large corpora- tion to regulate its relations with its own employees, by contracting with them instead of through a trade agree- ment made with a labor union, justifies your Commis- sion in discussing this plan with great care. . . . "The essential features of the plan seem to your Commis- sion to be ( 1 ) that the relations between the company and its employees as a body are defined by contract; (2) that every employee is guaranteed the right to belong to a labor union or not, as he pleases; (3) and that the men in each mine THE EAELY BEGINNINGS 3 under this contract are entitled to choose their own represen- tatives, these representatives being protected against abuse by the company by a clause in the contract which entitles them, if they have been discriminated against because of their action as representatives of the men, to appeal to the industrial com- mission of the state; and the contract binds the company on this point, also, to accept as final the finding of the State in- dustrial commission. The contract provides that any miner having a grievance, or any group of miners, may appeal from one authority to another until the president of the company is reached. The influence of this provision, although the con- tract has been in operation so short a time, has been greatly to modify the attitude of the mine foremen and mine superin- tendents and of the subordinate officials. . . . " The plan provides further for the selection of four joint committees representative of the company and of its em- ployees: (1) on industrial cooperation and conciliation; (2) on safety and accidents; (3) on sanitation, health and hous- ing; and (4) on recreation and education. This part of the plan went into operation only with the beginning of this year. It evidently contemplates the most far-reaching cooperation between the employees as a body and the corporation, as to all matters which affect the working and living conditions of the employees." British Experience In Great Britain, about the same time, there was growing up a shop, or as it is termed there, a " works " committee movement which is in many ways similar to the Colorado plan. This movement developed rapidly. In 1917, the Eeconstruction Committee, which later be- came the Ministry of Eeconstruction, appointed a sub- committee with J. H. Whitley as chairman, to report on practical methods of improving the relations between capital and labor. A number of other reports on the same general subject were made subsequent. In the summary of the preliminary Whitley report occurs an often-quoted sentence which expresses a truth fundamental to the whole shop committee movement: " The feeling in the minds of the workers that their conditions of work and destinies are being determined 4 THE SHOP COMMITTEE by a distant authority over which they have no influence requires to be taken into consideration, not only by the Government, but by the unions themselves." The Whitley report, however, did more than merely to call attention to a state of mind, important as that alone was. It specifically recommended the widest establishment of works or shop committees with certain definite functions. It outlined an entire system of in- dustrial government, one vital branch of which is the shop committee. Except in few instances has the move- ment in this country gone as far as the Whitley report, but if we wish to look at the problem broadly and with an eye to the future, it should be realized that the shop committee is, after all, but one of the parts of a mechanism for the adjustment of the daily relations between capital and labor. For each industry in England this report proposed a Joint Industrial Council, " to have as its object the regular consideration of matters affecting the progress and well-being of the trade from the point of view of all those engaged in it, so far as this is consistent with the general interest of the community." The type of organization which was suggested for the industries was something quite new. At the top there was to be a joint industrial council national ; lower down, a joint in- dustrial council district or local; and finally, at the bottom, works committees for the individual shop or plant. Each body, as the word " joint " implies, was to be composed of representatives both of men and of management. In other words, for each great trade or industry there was to be established a three-fold, semi- public governmental system, built up in such a way as to represent fairly both capital and labor, both factory, district and nation. THE EARLY BEGINNINGS 5 Its Wide Scope An idea of the wide scope which the acceptance of the Whitley report by the British public has given to these newly created joint councils and committees may be gained when it is realized that among the questions taken up by men and management and threshed out jointly are: (1) The better utilization of the practical knowledge and experience of the work people. (2) Means for securing to the work people a greater share in and responsibility for the determination and observance of the conditions under which their work is carried on. (3) The settlement of the general principles govern- ing the conditions of employment, including the methods of fixing, paying, and readjusting wages, having regard to the need for securing to the work people a share in the increased prosperity of the industry. (4) The establishment of regular methods of nego- tiation for issues arising between employers and work people, with a view both to the prevention of differences, and to their better adjustment when they appear. (5) Means of insuring to the work people the great- est possible security of earnings and employment, with- out undue restriction upon change of occupation or employer. (6) Methods of fixing and adjusting earnings, piece- work prices, etc., and of dealing with the many diffi- culties which arise with regard to the method and amount of payment apart from the fixing of general standard rates, which are already covered by paragraph (3). (7) Technical education and training. (8) Industrial research and the full utilization of its results. (9) The provision of facilities for the full considera- 6 THE SHOP COMMITTEE tion and utilization of inventions and improvement de- signed by work people, and for the adequate safeguard- ing of the rights of the designers of such improvements. (10) Improvements of processes, machinery, and or- ganization and appropriate questions relating to manage- ment and the examination of industrial experiments, with special reference to cooperation in carrying new ideas into effect and full consideration of the work people's point of view in relation to them. (11) Proposed legislation affecting the industry. With some few exceptions, the shop committee idea may be said to have remained dormant in the United States during the period in which the groundwork of the structure thus pictured in the Whitley report was being laid. But the entrance of the United States into the Great War in the spring of 1917 was speedily to require a development similar to that which had taken place in England. During the first feverish twelve months of preparation after the declaration of hostilities against Germany, no real attempt was made to remove the basic cause of strikes. Strikes were discouraged by public opinion, but that was all. War Labor Board and Shop Committees Late in the spring of 1918, however, the National War Labor Board was created by presidential proclama- tion, and immediately began to act as court of last resort in industrial disputes in which war production was threatened. Almost in the first award of this body the works or shop committee idea was adopted as a means of promoting sound relations between employer and employee, and as a means, further, of securing 'what was most urgently needed by the nation at that time, namely, maximum war production. With the history of this Board in general we have THE EARLY BEGINNINGS 1. nothing to do here; that belongs rather to a discussion of the development of arbitration. But it is both per- tinent and well within the truth to say that the most valuable single achievement of the National War Labor Board was the impetus given by it to the shop committee movement. The principles upon which the Board operated, formally agreed to by representatives of capital and labor, contained this declaration : " The right of workers to organize in trades-unions and to bargain collectively through chosen representatives is recognized and affirmed." Here was the authorization, if any were needed, for the insertion in award after award of provisions call- ing for the establishment of shop committee systems, and in a following chapter will be found the shop committee plan as worked out by the experts of the Board. "The encouragement of mutual adjustments and collective bargaining as between employer and em- ployees," runs one sentence in the instructions issued to examiners assigned to administer awards, " will prob- ably prove the most valuable and lasting work which an administrative examiner can perform." During these same war months, the principle of col- lective bargaining was consistently advanced by the Federal Government in practically all its direct and indirect dealings with labor, and thus there was estab- lished a solid body of experience and opinion in favor of the fundamental theory upon which the shop commit- tee movement rests. This movement, begun in this fashion, is that with which we are chiefly concerned in the following pages. 1 i The literature on the shop committee and the general movement toward democratic control of industry is relatively new and correspondingly small. Great Britain, as might be expected, furnishes the bulk. The books listed below bear more 8 THE SHOP COMMITTEE The Economic Need \Ve shall see in Chapter X that the real economic need for shop committees in American as well as in British factories during the war and after came from the fact that in spite of the great value of the trades unions in collective bargaining, the trades unions were not and never had been organized to handle efficiently the many intimate, localized problems of the individual or less directly on the subject matter of the present volume, particularly the book by W. L. MacKenzie King and the re- prints of official English documents published by the United States Shipping Board. " War Time Control of Industry, The Experience of Eng- land," Howard L. Gray. The Macmillan Co. " The Great Change," Charles W. Wood. Boni and Live- right. " Labor and Capital after the War," edited by S. J. Chap- man. John Murray. " Industrial Reconstruction," edited by Huntley Carter. E. P. Button. " Industry and Humanity," W. L. MacKenzie King. " The Aims of Labor," Arthur Henderson. B. W. Huebsch. " The Creative Impulse in Industry," Helen Marot. E. P. Dutton. " Collective Bargaining and Trade Agreements in the Brew- ery, Metal, Teaming, and Building Trades of San Francisco, Calif.," Ira B. Cross. University of California Press. " Fair Play for the Workers," Percy S. Grant. Moffatt Yard & Co. " Workshop Committees," C. G. Renold. The Survey Asso- ciates. Memorandum on the Industrial Situation After the War (reprint of the memorandum issued by the Garton Founda- tion, London). United States Shipping Board. Report of an Inquiry as to Works Committees (reprint of a report made by the British Ministry of Labor). United States Shipping Board. " Works Committees and Joint Industrial Councils," A. B. Wolfe. United States Shipping Board. (Contains valuable bibliography.) Monthly Review, U. S. Bureau of Labor Statistics, U. S. Dept. of Labor, passim. THE EAELY BEGINNINGS 9 factory. And for the matter of that, neither were employers properly organized to cope with these same problems. There was, in short, a sheer lack of ma- chinery designed to eliminate internal shop friction, whether over large matters or small matters. One who has studied typical plants which have well planned shop committee systems and typical plants which are still operating in the old disorganized fashion, can not hesitate to agree that neither the recognition of the union nor the introduction of " efficiency " ideas will do the good to employer, to employee and to the public that can be gained by falling into step with evolution and utilizing the advantages of this new form of industrial self-government, " The movement," says W. L. MacKenzie King in his book above referred to, " is not without its critics among both employers and labor leaders, and it en- counters of necessity the opposition of upholders of militancy in industrial affairs and the advocates of clasa hatreds. It will reveal shortcomings, make mistakes, experience setbacks and failures; and it is probable that some time must elapse before its benefits will be appreciated. ' The change of attitude involved is too vital, the field of activity is too large, to hope for any but gradual development.' But the scheme has in it the germ of all that has made for freedom in political evolution; and it has to promote it the genius for self- government which the British peoples have evolved through centuries of struggle. It is therefore destined to win its way. Meanwhile, it will remain the surest method of approach to the solution of the problems of Industry which wide knowledge of actual conditions, combined with many-sided opinion, has thus far evolved." 1 iM italics. W. L. S. CHAPTER II THE WAR LABOR BOARD PLAN BEGINNING late in the spring of 1918 the United States Government, as a war measure, began to organize shop committees and to develop the theory and practice of the shop committee system. The Government per- formed this function through the National War Labor Board and other war-time agencies. Its main purpose was to attempt to set the house of capital and labor in order, first so that essential industries would be kept running during the hostilities, and second so that industry would be more stable and prosperous during the period of demobilization and reconstruction. It may be noted in passing that it was not a new thing for Uncle Sam to play the part of organizer of cooperative associations. For many years the United States Department of Agriculture has most energetically promoted the formation of farmers' cooperatives, which are fundamentally collective bargaining associations. This work of the Washington government has brought benefits to those living in the rural regions that can be measured in dollars and cents, and has also served as a precedent for similar activities in the world of industry. The Pittsfield Award One of the first awards of the National War Labor Board, if not the very first to recommend a shop com- mittee system, was the award in the case of the em- ployees versus the General Electric Co., Pittsfield 10 THE WAE LABOR BOARD PLAN 11 Works, Massachusetts. Towards the end of this award are these paragraphs : " Election of Committees. " The election by the workers of their representative depart- ment committees to present grievances and mediate with the company shall be held, during the life of this award, in some convenient public building in the neighborhood of the plant, to be selected by the examiner of this board assigned to su- pervise the execution of this award, or, in the case of hia absence, by some impartial person, a resident of Pittsfield, to be selected by such examiner. Such examiner, or his substi- tute, shall preside over the first and all subsequent elections during the life of this award, and have the power to make the proper regulations to secure absolute fairness. " In the elections the examiner shall provide, wherever practicable, for the minority representation by limiting the right of each voter to a vote for less than the total number of the committee to be selected. Elections shall be held annually. " Duties of Department Committees. " The duties of the department committees shall be confined to the adjustment of disputes which the shop foremen and the division superintendents and the employees have been unable to adjust. " The department committees shall meet annually and shall select from among their number three ( 3 ) employees who shall be known as the committee on appeals. This committee shall meet with the management for the purpose of adjusting dis- putes which the department committees have failed to adjust." It so happened that the writer was assigned to act as the examiner or administrator of the Pittsfield award, and can therefore speak both from official and personal observation of this very interesting experiment in in- dustrial government. At this time, the latter part of the summer of 1918, the Pittsfield Works of the General Electric Company employed about 7,000 men and women. The plant was engaged in manufacturing many important articles used directly and indirectly by the Government and neces- sary for the war program of the Government. Maxi- mum production and the elimination of internal strife 12 THE SHOP COMMITTEE was therefore a matter of public concern. It should be added that while a majority of the employees were members of organized labor, the plant was and still is an open shop. For some time before the award of the National War Labor Board there had been in existence in this plant a General Works Committee, which consisted of about fifty employees, and which was elected by the rank and file of the workers at an election held each year in the factory buildings. For various reasons this shop committee, or shop committee system, was not satisfactory to the employees who came before the Board. One of the reasons was that a single general committee could not handle promptly and fairly the grievances which constantly came up in the plant. The justice of this claim was admitted by the Board, and a new system was therefore ordered. By way of further explanation it should be said that before the award of the War Labor Board there had been a serious strike in the Pittsfield Works. This strike had brought about an era of bad feeling between men and management which lasted several months and which seriously complicated and made difficult the task of working out calmly and in joint conference the details of the award. I mention this fact not for the purpose of opening old sores, but in order to illustrate a very important fact in the shop committee movement the fact that unless both the employer and the employees have the right spirit, the spirit of coopera- tion, the spirit of dealing man to man in sensible, reasonable fashion, it is almost impossible to set going an orderly and workable shop committee system. Features of the Plan The Pittsfield shop committee plan of the War Labor Board is not like most of the plans subsequently ap- THE WAK LABOK BOAKD PLAN 13 proved by the Board. For example, it provided that the Elections should be held, not in the shop, but in some convenient public building. The reason for this pro- vision in this particular case was that the Board desired to give neither side any possible grounds for claiming that either the company or the unions had influenced the elections. Back of this lay the declaration of the Board, laid down as a general principle for all industry during the war, that "In establishments where the union shop exists the same shall continue. ... In establishments where union and non-union men and women now work together and the employer meets only with employees or representatives engaged in said establishments, the continuance of such conditions shall not be deemed a grievance." In plain English, this meant that it was the duty of the Board to see to it that the unions did not take advantage of the war and of the war-time establish- ment of shop committees to force union recognition. It also means that it was the duty of the Board to see to it that every employee in the plant, whether belong- ing to a union or not, had the chance to vote and run for office. Another consideration had much to do with the de- cree that the elections should be held on neutral ground. This was that there was then a feeling of hostility among certain of the employees against the company: a feel- ing so deep that almost without exception the leaders testified that if the elections were held inside the plant the men would not vote. At the same time, however, these same leaders declared that the former elections, which had been held in the plant and managed by the company, had been absolutely fair and square. But there was the prejudice of the rank and file to overcome, and the War Labor Board thought that the best way to overcome it was to hold the elections in a 14 THE SHOP COMMITTEE place where no one could pretend that either the unions or the company could control in any way, shape or manner. There was still another reason for selecting "some convenient public building." One of the principles of the Board declared that workers have the right "to organize in trades-unions and to bargain collectively through chosen representatives/' The right to choose representatives was thought to carry with it the right to choose them freely, or as freely as was consistent with other circumstances. The other circumstances which limited this freedom were the declarations of the Board to which labor and capital were pledged for the period of the war, to the effect that labor unions should not seek to obtain recognition through the elec- tion of committees, and that employers should not discriminate against union employees. In theory, the argument went, nothing could better guarantee a free, uninfluenced election than to have it in a public build- ing under the supervision of an officer of the Govern- ment. I have gone into these matters in some detail because the Pittsfield shop committee system was one of the first attempts of the War Labor Board to put the theory of the shop committee into practice. As often hap- pens, there was nothing wrong with the theory, though the application of it, as will be seen later, might have been improved. The Pittsfield award contained another provision which was discarded in subsequent awards. This was the provision for minority representation. The idea was this : Roughly one third of the employees of the Pitts- field Works, or a minority of the whole, did not belong to any union. The Board, fearing that the union em- ployees might control the elections and shut the non- union employees out completely, gave instructions that 15 when, for example, two union and one non-union candi- dates were nominated on the same slate, each voter should mark his ballot for two instead of for three. It was calculated that in this way the minority would be sure to secure a fair share of the offices. In practice, however, it was speedily found that with one or two exceptions the minority favored all the nominees and offered none of their own. Most of the elections were unanimous. By simply allowing great freedom in mak- ing nominations, the minority had every opportunity to be represented. Two Kinds of Committees As defined in the award the shop committees were to be of two kinds. First, there were to be department or shop committees representing the employees of the different sections of the works, elected by the employees of each section, voting separately as a section. Second, there was to be a general or appeals committee of three, elected by the members of the shop committees, meet- ing in a convention called for that purpose. The shop committees were to have the duty of adjusting disputes which individual employees had failed to adjust either with their foremen or their division superintendent. The appeals committee, as its name implies, was to take up with the management cases which the shop or department committees had been unable to settle satisfactorily. This new plan was a great improvement over the single General Works committee of fifty which had previously represented the employees in dealing with the management. As compared with the plans worked out by the Board in some other places, however, as for example, the Lynn General Electric Works, the Bridge- port munition plants, and the Philadelphia Eapid Tran- sit Company, the Pittsfield plan was incomplete. 16 THE SHOP COMMITTEE Nevertheless the Pittsfield plan was put into opera- tion. The steps in this process may be briefly summed up: The first step was to district the plant. The award called for " department " committees. But what was a department ? Were the cranemen, for example, whose work took them all over the plant, and who reported to various foremen, to be considered a department? Should a department consist of a more or less fixed number of workers; or should a department be defined as all the workers under a single foreman? Should a department be on one floor, or might one department include a floor and a gallery, or two floors? Should a department be composed of workers of the same trade? In short, what ought to be the basis of repre- sentation? Working It Out These questions were not answered in Pittsfield to the complete mutual satisfaction of men and manage- ment, and to that extent and for that the reason the Pittsfield plan as it was in operation as late as March 1919 cannot be termed a good example of a working shop committee system. The Pittsfield management opposed, on principle, the idea of holding the elections outside the plant, and for this and other reasons the districting of the plant was left to the men and the representative of the War Labor Board. The plant was not districted as it should have been, that is, coopera- tively by the joint counsel of men and management. In a later chapter the theory of districting is con- sidered in detail. It is a most important question, if not the most important single question which has to be met in working out a shop committee system. In spite of the difficulty just referred to, the elec- tions were held in a vacant store near the plant, used THE WAR LABOR BOARD PLAN 17 by the city as a polling place. Owing partly to the fact that the elections were held outside company time, namely from 5 to 8 or 9 p. M., the attendance, while representative, was not as large as it would have been had the elections been held under the most favorable circumstances in the plant itself. But the committees were chosen as decreed by the award, were recognized by the management, and proceeded to perform their functions. Thus ended the duty of Uncle Sam in his pioneer role of industrial organizer. During the same summer and fall of 1918, the War Labor Board decreed that the Pittsfield shop committee system should be installed in several other plants which were manufacturing war material for the Government. From the reports which came from these places, as well as from Bridgeport, where a gigantic problem con- fronted the examiner of the Board assigned to the supervision of the Bridgeport award, there was developed a standardized plan for shop committee systems. This plan was not intended to fit every industry without some alteration. But it did and still does embody all the basic principles which experience in the field has proved to be sound and workable. I quote this plan in full at this point. In the next and following chapters the most important practical problems involved in putting it into operation will be taken up : NATIONAL WAR LABOR BOARD WASHINGTON PROCEDURE ELECTIONS OF SHOP COMMITTEES In cases where elections are required to be held for the pur- pose of selecting Shop Committees, the following shall be the procedure : 18 THE SHOP COMMITTEE 1. Number of Committeemen Shop Committees shall be selected to meet with an equal or a lesser number of representatives to be selected by the employer. Each department or section of the shop shall be entitled to one committeeman for each one hundred employees employed in the department or section. If in any department or section there shall be employees in excess of any even hun- dred, then an additional committeeman may be elected pro- vided the additional employees beyond the even hundred shall be fifty or more; if less than fifty, no additional representation shall be allowed. As an example: In a department or section employing 330 men, three committeemen will be elected; in a department employing 375 men, four committeemen will be elected. 2. Nominations Due notice having been given of an election, 10 days shall be allowed during which nominations may be made for candidates. In order that a candidate's name may appear on the ballot, such person must be nominated either at a meeting of the employees or any part of them duly called for that purpose, or by petition signed by not less than 10 per cent of those qualified to vote for any candidate so nominated. a. By Convention Meetings for nomination of candidates may be held at any places named in the calls for the same. The nominations and the attendance of at least 10 per cent of the persons entitled to vote for nominees at any such meeting must be certified to by the chairman and secretary of the meeting. 6. By Petition All nominating petitions must clearly name the candidate or candidates and have the signature of not less than 10 per cent of the bona fide employees qualified to vote for such candidate. c. Filing Nominations Nominations made either by meeting or by petition must be sent to the examiner of the National War Labor Board not later than 10 days after the notice of election is given, and the election shall be held on the fifth day next succeeding unless such day should be Saturday or Sunday or a holiday, in which event the election shall be held on the next successive work day. THE WAR LABOR BOARD PLAN 19 d. Publishing Lists of Nominees Lists of candidates selected by convention or petition and distinctively designated, may be posted by their respective supporters on a bulletin board to be provided by the employer, convenient to the voting booths, to assist voters in marking their ballots. 3. Elections a. Place The election shall be held in the place where the largest total vote of the men can be secured, consistent with fairness of count and full and free expression of choice, either in the shop or in some convenient public building, as the chief exam- iner shall decide after conference, if need be, with the Secretary of the National War Labor Board. 6. Election Officers The election shall be conducted under the supervision of an examiner of the National War Labor Board, who shall select as assistants two or more employees of the department or sec- tion for which the election is held. These persons shall con- stitute the Election Board, which will conduct the election, count the votes, and certify as to the correctness of the count. An employee of the company to be nominated by t" e em- ployer, who shall preferably be the timekeeper or some one connected with the proper department or section, who is quali- fied to certify to and identify the voters as bona fide employees' shall assist the Election Board in its duties. c. Freedom from Undue Influence All elections shall be held in accordance with the Australian or secret ballot. The names of all the nominees shall be printed in alphabetical order on the ballot, which shall clearly state the number to be voted for. This ballot shall be in the form that it may be folded so as to conceal the nature of the vote. Each employee presenting himself shall be certified to as qualified to vote and handed a ballot by the tellers. Upon indicating upon the ballot by marking a cross opposite the names of the candidates for whom the employee wishes to vote, he shall himself place it in the ballot box. A booth or booths shall be provided where the employee may indicate his choice free from observation. Foremen and other officials of the company shall absent themselves from the election to remove ground for a claim of undue influence. 20 THE SHOP COMMITTEE d. Declaration of Election The candidates receiving the greatest number of votes shall be declared elected by the Election Board. In the event of a tie vote, the examiner of the National War Labor Board shall call for a new election within five days. 4. Change of Procedure by Agreement After the initial election under the supervision of the exam- iner of the National War Labor Board, subsequent elections and any general rules or regulations pertaining to the selec- tion of Shop Committees may be carried out through agreement between the employer and the committee so elected. Proper provision should be made for reports of the Shop Committees from time to time to their respective constituencies. Approved by the Joint Chairmen, October 4, 1918. As this book goes to press, (April, 1919), the National War Labor Board is still in existence and is still promoting the shop committee movement. Should this Board continue by Act of Congress as a permanent industrial court, without question it will become one of the best possible sources of information in the country on the question of shop committee systems. In the brief history of this Board from its formation to date, it has been under the fire of both capital and labor. The unfriendly criticism which it has received has been un- fortunate for several reasons, but chiefly because it has led public attention away from the real and neces- sary constructive work which the Board has been doing from the very start. I refer of course to the establish- ment of shop committee systems, and from my copy of a memorandum entitled " Instructions to Examiners Assigned to Administer Awards/' I quote the following sentence : " The encouragement of mutual adjustments and collective bargaining as between employer and employees, will probably prove the most valuable and lasting work which an Adminis- trative Examiner can perform." CHAPTER III GENERAL PRINCIPLES IN Chapter I the history of the shop committee move- ment was briefly sketched, and in Chapter II the be- ginnings of the movement as promoted and standardized by the United States Government were related. At this point, before going into further detail, it will be valuable to try to get at the basic principles which underlie the shop committee plan of the National War Labor Board, and of the movement as it is spreading to-day. What are these principles? It will make it easier to understand and explain the shop committee if it is understood and realized at the start that a shop committee system is really an experi- ment in democratic industrial government. The word experiment is used because shop committee systems are in their infancy, and are rapidly changing in form. The words democratic industrial government are used because after all what a shop committee system actually does in a factory is to establish a system of govern- ment to control democratically the relations between employer and employee. A factory in which neither shop committees nor trades unions are recognized must necessarily be more or less of an autocracy, and recent events in Europe and elsewhere have demonstrated again to the world the old truth that an autocracy is practically no gov- ernment at all, because it is an unjust and unstable government. What is going on in the United States 21 22 THE SHOP COMMITTEE to-day is, therefore, a revolution in industry. The ob- ject of this revolution is to overthrow obsolete auto- cratic methods of doing business between employer and employee and to substitute new and democratic methods. Compared to U. S. Government The shop committee system of government does not resemble the kind of representative democratic govern- ment which we have, for example, in the United States. The theory of the American government is that the people elect their servants whose duty it is to make and execute laws under a constitution, which in turn can be changed by the people. The theory of the shop com- mittee system form of government is that the employees elect their representatives who meet with an equal num- ber of representatives of the management. Thus in the United States Government there is only one source of power, the people. In the shop committee system gov- ernment, there are two sources of power. This is what is commonly called " joint control," and the various branches of the government are called " joint com- mittees." But the phrase " joint control " is bound to be mis- understood if it is not explained further. The rela- tions between employer and employee in a factory hav- ing a shop committee system are controlled jointly or collectively up to a certain point only. The committee- men representing the employees may be able to agree with the committeemen representing the management on a large number of important matters, but when they fail to agree, the joint method of settling disputes is at an end: the matter goes to the manager, who, being in charge of the factory, has the veto power. The manager will side either with the employees or with his own representatives. In any case his decision is final, so far as the shop committee system is concerned. If, how- GENERAL PRINCIPLES 23 ever, the matter in dispute is vital to the employees, they may ask that it be arbitrated by outside parties, and they will probably threaten to stop work if it is not left to some impartial body, such as the War Labor Board. Such a case shows clearly that the shop com- mittee system is not in itself complete. In many shop committee plans, it is provided that when a decision of the manager is not satisfactory to the employees, the case shall go to outside arbitration. In the United States Government, on the other hand, the people are theoretically supreme, and there is no veto power over them. Their servants may not obey them, but at the next election a new set of servants can be selected. In the shop committee form of gov- ernment, the employees may, of course, get rid of repre- sentatives who are not satisfactory, and the manage- ment may do likewise with its representatives. But the point is that in a shop committee system the em- ployees have nothing to say about the selection of the representatives of the management, or of the manager, who is practically the president, with veto power; nor has the management anything to say about the selection of the representatives of the employees. In other words, in a shop committee system we have two different elements meeting for the purpose of adjusting and bar- gaining with each other. This contrast may be seen more clearly by comparing the shop committee form of government to the govern- ment of a genuinely cooperative industry in which the workers have a direct voice in the management because they are part owners of the enterprise. These remarks do not necessarily throw discredit on the shop committee theory. They are intended merely to make clear exactly what kind of a government the shop committee sets up, its advantages and its limita- tions. 24 THE SHOP COMMITTEE " Voice in the Management " The phrase " voice in the management " applies to every well worked out shop committee system. " Joint control/' as explained above, is a misnomer. " Partner- ship," writes W. L. MacKenzie King on this point, " is essentially a matter of status. It does not involve identity or similarity of function on the part of the partners, or equality of either service or rewards; but it does imply equality, as respects the right of representa- tion, in the determination of policy on matters of com- mon interest." Let us now see, within the limits just explained, what sort of a system of government the shop com- mittee establishes. In other words, what are the branches of this form of government, what is its legisla- ture, its court, its executive ? The " people " who are to set up this government are in two groups employees and employers. So far as the employees' side is concerned, the people are all em- ployees without regard to age, sex, or condition of em- ployment. If the system is to be truly representative, it must not disfranchise any employee, no matter whether he or she is an elevator man, a clerk, a scrub- woman, or a highly paid mechanic. But just as in the American government it is necessary to define the qualifications of the voter, so in a shop committee sys- tem it is necessary to define what an employee is. As a matter of fact, all the men and women, with one or two possible exceptions, who work in a modern American factory are employees. Unless the manager is also an owner, he is an employee : and so are his assistants from the general office down the line to the superintendents, foremen and leading hands. But for the purposes of shop committee government, it is neces- sary to divide employees into two classes, that which represents the management, and that which consists of 25 the rank and file of the workers. Therefore it is cus- tomary to disqualify from voting and participating in the employees' side of the system all those who have administrative duties. This commonly includes those who are employed in a supervisory capacity, and hence shuts out the manager and his staff, and the fore- men and leading hands. The reason for this is self- evident. In addition, it is usual to fix an age limit, say 21 years ; to require that voters shall be American citizens, and so on. These details are discussed at some length in Chapter VII. The general principle here is, within the limits of cus- tom and common sense, to allow every employee to vote. Shop Committees Their Functions The " people " having been defined, we now come to the first branch of the shop committee system, which is usually the shop committee itself. By its very name, this is a committee of the shop, that is to say, it repre- sents a shop, department or division of the plant. The plant, therefore, must be divided or districted just as a city is districted into wards each of which selects its members of the common council. The details of this process of districting are considered fully in Chapter IV. The general principle here is that every representa- tive system of government requires some device to insure that an elected representative actually represents the people who elected him, and that no other people or voters shared in that electing. Thus each district or shop in a plant determines for itself the members of its committee, which is the first branch of the system of government. The duty of the employee members of a shop com- mittee is to act as mediators or adjusters of disputes arising in their district between the employees and the 26 THE SHOP COMMITTEE foremen: to sit in session with the employer members of the committee as (1) a mediating and adjusting committee, and (2) as a court to hear and pass on cases coming before it. These duties are more fully de- tailed in later chapters. The second branch of the shop committee system is what is termed in the standard plan of the War Labor Board, the " General Works Committee/' This com- mittee is higher in authority than the shop committees and has broader powers. It may be composed (1) of all the shop committee members, (2) of a fraction of the shop committee members, or, (3) of employees at large, not shop committee members. It is usually elected by the members of the shop committees them- selves, but it may be elected at a popular election in which all employees participate. The duty of a General Committee may be, (1) to sit as a court of appeals in matters coming up from the shop committees; (2) to act as a mediating and adjusting body between the whole body of employees and the management; (3) to make rules and regulations to govern elections and procedure. In some existing shop committee systems, the duty described under (3) is handled by a separate committee on rules. As will be seen later, there may be more than one general committee, though it is usual to have but one charged with the duties enumerated under (1) and (2). The General Works Committee, no matter whether called the Appeals Committee, the General Joint Com- mittee, or the General Adjustment Board, is, after all, the supreme joint council of employer and employee. It is a judicial council when it decides cases which come up on appeal. It is a legislative council when it decides on rules and regulations, wage rates, bonuses, and other matters affecting conditions of employment. It is also GENERAL PRINCIPLES 27 an advisory body or kind of cabinet to the General Manager, when, as frequently occurs, it brings to his attention situations or complaints which might other- wise escape his notice. It is not an executive body for the reason that the execution or administration of its decisions and recommendations is the function of the management. The Management's Side Looking at the other half of this system of govern- ment, we find that the representatives of the manage- ment are, first of all, appointed instead of elected. The reason for their selection by appointment instead of election is that the management is one thing, usually one person or one small group of persons with a single head. The management chooses its representatives from those employees who are not " people " as defined above, that is to say, from its assistants, superintendents, department or division heads, general foremen, foremen, leading hands, and often cost clerks or paymasters. To deal with the individual employee the manage- ment selects foremen or leading hands. To represent the management's half of the joint shop committees, foremen again are generally chosen. To represent the management's half of a general committee, assistant managers, or department heads are usually selected. In some plants the management employs a special agent, often called " the industrial representative " who reports directly to the manager and who attends without vote the committee meetings so as to keep in constant touch with the workings of the plan of representation. Thus we see that the shop committee system is a system of government composed of a series of commit- tees with duties which differ but slightly, and which is organized and operated on the principle that as far as is practicable the relations between employer and 28 THE SHOP COMMITTEE employee should be adjusted by common counsel at joint meetings of accredited representatives of each side. The joint meeting is the characteristic thing about the shop committee form of industrial government. It is more than characteristic, it is fundamntal. The entire purpose of shop committee systems is to bring em- ployer and employee together face to face. To the minds of some keen employers and employees this move- ment means a return of the " good old days "' when industry was small and the general manager personally knew Tom Jones in the foundry and dealt with him man to man, instead of through the medium of half a hundred subordinates. How to reestablish this kind of relationship in modern industry has been a problem which has puzzled many of the leaders in the world of labor as well as in the world of capital. At a critical time in the history of industry throughout the world, the shop committee offers itself as a solution of this problem. By setting up a simple plan of internal shop government on the principles just outlined, something of the old small shop atmosphere can be regained. The sense of aloofness between employer and employee vanishes when the manager realizes that his responsible agents are meeting daily with the men in committee sessions; and when the men, for their part, realize that the management believes that the rank and file should have a say in the way the business is managed. Cooperation But if a shop committee system is to be a success, it must be based on one other fundamental principle in ad- dition to those already mentioned. This is that from the very beginning a shop committee system must be a matter of cooperation. From the start it is essential that men and management should come together as nearly as possible on an equal footing and from that GENERAL PRINCIPLES 29 footing thresh out their problems with the utmost good nature and frankness. The management may feel that it possesses superior wisdom, but it need not exhibit this feeling. The men may feel that the management is trying to " slip one over " on them, but they ought to go in and use their brains and reason the matter out. In one great industrial plant in the United States the shop committee system failed because it was devised solely by the management and offered to the employees as a charity. In another factory a shop committee sys- tem nearly fell to pieces because the unions misunder- stood it and counselled a policy of "knocking." And in a third plant both sides got together on common ground from the beginning and out of two quite dif- ferent schemes, worked a new one which both declared to be preferable to either of the originals. Unless the basic principle be adopted that a shop committee sys- tem must be planned, established and operated collec- tively, it is as well to have none at all. All government, we are told, rests on the consent of the governed. A shop committee system of government is no exception to this rule. I emphasize this point for the reason that experience has shown it to be a vital one. The shop committee movement is in reality a part of the organized labor movement. If it is properly guided in the early years of its life it may prove to be a solution of many of the most vexing problems which confront the labor move- ment. The shop committee means in principle, not the recognition of the union, but the recognition of the fact that it is more efficient both for employer and em- ployee to handle their daily, intimate problems collec- tively instead of in the old way, individually. If then, an employer is to deal collectively with representative groups of his employees, it is essential that the desires of the employees should be made known and should be 30 THE SHOP COMMITTEE given at least equal weight with those of the employer. Some students of the shop committee go further than this and maintain that the employees are the sole judge in the matter of districting and determining represen- tation. Two heads are, however, generally wiser than one, and inasmuch as shop committee government is after all joint government, joint counsel should be held. But experience has also shown that no shop committee system introduced and put into operation by a manage- ment which considers itself morally or intellectually the superior of the men has ever really succeeded. These are the main principles of shop committee government. The list is not complete. For example, it is also an important principle that in the elections of shop committees the management should refrain from even an appearance of supervision. It should, of course, be reasonably assured that the elections are fair and free and open only to employees, and a joint committee of men and management might well agree on the rules governing the elections. But the elections are primarily the business of the employees, just as the appointment of the representatives of the management is primarily the business of the management. Another principle, discussed in detail in Chapter VIII, is that the spirit of the shop committee system must be entirely democratic; there should be the initiative, the referen- dum and the recall ; the records of all committees should be open and public to employees desiring to consult them ; and the system itself must be easy to amend after due consideration by both parties. If a shop committee system is founded on the prin- ciple outlined in this chapter and if it is motivated, above all, by the principle of genuine cooperation not the kind of cooperation which means benevolent paternalism it can be built in such a way as to out- last the lives of the men who helped to erect it. CHAPTER IV THE BASIS OF REPRESENTATION THE first step in the practical application of the gen- eral principles of shop committee government is to di- vide the plant into shops, sections, districts, or depart- ments. This should be done jointly by a committee of employees meeting with representatives of the manage- ment. In order to secure a successful districting, it is necessary that this committee should be familiar with the geography of the plant and with the various kinds of work done throughout the plant. A successful job of districting will almost certainly insure a successful working plan, the reason being that a fair and just districting provides a fair and just basis of represen- tation, a thing that is fundamental to the entire system. Districting involves three factors: (1) the actual lo- cation and size of the district; (2) the size of the com- mittee or number of representatives of the workers; (3) the craft or occupation of the workers to be in- cluded in the district. In the Pittsfield award of the War Labor Board (see Chapter II), nothing was said about districting the plant. The Board assumed that the plant was al- ready divided in such a way as to make re-division un- necessary. As a matter of fact, some fifty departments had long been recognized in the Pittsfield Works as separate shops or departments, and there was no great demand for revising this arrangement. There was, however, some sharp difference of opinion between men and management as to whether certain departments 31 32 THE SHOP COMMITTEE should be combined before choosing a committee, and as at that time the general principles of districting were not clearly understood and agreed on, the result was a more or less unsatisfactory compromise. I mention this fact because it indicates an error which can easily be avoided. Size of Constituency Within a few weeks the Board had issued its stand- ardized shop committee plan. Under the heading " Number of Committeemen " this plan declared : " Each department or section, of the shop shall be entitled to one committeeman for each hundred employees employed in the department or section. If, in any department or sec- tion, there shall be employees in excess of any even hundred, then an additional committeeman may be selected, provided the additional employees beyond the even hundred shall be more than fifty. If less than fifty, no additional representa- tive shall be allowed. As an example: in a department or section employing 330 men, 3 committeemen will be elected. In a department employing 375, 4 committeemen will be elected." In another paragraph this plan declared : " In order to insure workable committees of not less than 3 or more than 5, examiners can either subdivide the plant into sections of not less than 250 nor more than 500 employees." In a memorandum of instructions issued at this time, the Board said that its standard plan was not intended to fix hard and fast rules, and that the basis of repre- sentation might well vary from the numbers just given. "No injustice results from such variations," was the statement, "inasmuch as these shop committees deal directly on behalf of their constituents with foremen and other representatives of the management." In other words, the sound principle was set forth that it is not at all necessary that the actual number of em- THE BASIS OF KEPRESENTATION 33 ployees in each shop or district should be the same. Each shop is an independent political unit, so far as its own business is concerned, and its size should be determined not for numerical reasons, but in accordance with geographical and craft conditions. In applying this theory in industrial plants, however, it is generally found to be wise to decide on a limit, such as 100, as a rough basis of representation. This limit is not a fixed one, and the number of employees in a separate shop or department runs all the way from 50 or even less to 400 or 500. Craft vs. Geographical Basis Once this flexible limit is settled, the question arises: What shall be the character of each unit or shop? Shall it be geographical or occupational, or both ? This is a highly important question, and there is room for a large variety of answers to it. From the point of view of some managers, an employee is an employee regardless of the nature of his work, and all that is necessary in order to give him representation is to allow him freely to vote for candidates taken from among his neighbors in the plant. The point of view of the average employee, on the other hand, is, that an employee is above everything a worker at some particular kind of a job, and that in order to have real repre- sentation he must choose a committee which has direct knowledge of the job. These opposite views may be illustrated by an actual case: In a certain factory it was proposed to group about seventy-five skilled machinists, about one hundred operatives on semi-skilled repetition work, and about one hundred and fifty construction laborers together and give them a shop committee. The management argued that all these workers were housed in the same wing of one building, and that a committee of three, one 34 THE SHOP COMMITTEE from each group, could handle their business. The repetition workers and the construction laborers were agreeable to this proposal, but the skilled machinists objected because they were a distinct, trained craft with peculiar craft problems which, they declared, could not well be handled by other craftsmen. In the end the machinists got a separate committee of their own, while the other two groups were consolidated into another single constituency. The problem is always a complicated one, and no hard and fast rule should be laid down. Perhaps the best general rule is that of the War Labor Board : " The committees shall be not only of manageable size . . . but shall give definite proportional representation to as many occupational or other natural groups, includ- ing women, as may be possible. . . . While it is mani- festly impossible for every minor occupation or minor department to be represented upon shop committees, it is possible to do justice in every case, provided the local situation is understood, and only when it is under- stood." The matter of the size of the committee is not so difficult. The War Labor Board followed common cus- tom in this regard when it recommended that the com- mittees be not less than three nor more than five. Even when a shop or district contains as few as fifty em- ployees, a committee of three is not too large. Shop committee work is hard work and requires careful atten- tion. If less than three are chosen, the burden of repre- sentation will fall heavily on the one or two mem- bers and will require their frequent absence from work to make investigations and adjust cases. This means loss of time and often of earnings to the em- ployees, and a corresponding loss in production to the company. So far we have analyzed the basis of representation THE BASIS OF REPRESENTATION 35 only as it involves the shop committees. Let us now look at it as it involves the general committee. General Committees A general committee is a legislative and judicial body which spends most of its time on appeals from shop committees or else on general questions which affect the entire plant. Since a general committee repre- sents the entire plant, the problem of districting so far as it is concerned, comes down to a single question: Should the members of this committee be chosen to represent different large sections or divisions of the plant, or should they be chosen from the employees regardless of where located ? As a rule there is not much difficulty in reaching a satisfactory decision on this point. It is obvious that a general committee should have general knowledge or experience, and it therefore usually results in prac- tice, no matter whether a specific rule is adopted or not, that the members are actually chosen from the different parts of the works. In Pittsfield, for example, the election rules required that the three main divisions should each choose one member of the Appeals Com- mittee. In Bridgeport, for another example, the Em- ployees General Committee is composed of the chair- men of all the department committees, and therefore automatically represents each section. Another and more fundamental question is, Who shall elect the members of the general committee, and who is eligible for nomination thereto? In the case of the shop committee, all the inhabitants of the shop, so to speak, elect the committee, and none but workers in that shop are eligible to membership. With the general committee a different situation arises. In the standard plan of the War Labor Board, the General Works Committee is described as being "com- 36 THE SHOP COMMITTEE posed of the several shop committees representing the departments or sections of the plant. Thus, a single election in a department provides both a shop committee, as such, and a portion of the Works Committee, which will be formed by the coming together of all the various shop committees." This theory, in other words, is that the shop committee is really a part of the general com- mittee, and that all members of the general committee are members of the shop committees. As we have seen, this theory was put into practice in the Bridge- port munition plants, where the general committee is composed of the chairmen of the shop committees. Thus one answer to the question put in the last par- agraph is that the members of the general committee may be elected by the shops, each shop voting separately, and that only shop committeemen may be eligible for membership on the general committee. But is this a satisfactory answer ? Is it a democratic and truly representative method of forming a govern- ment? If the general committee is to be an appeals committee, which must necessarily be the case, should it be composed of employees who are members of lower committees, and who are therefore placed in the position of reviewing on appeal cases which they have already decided? I ask this question not because there is any ready-made solution for it: shop committee government is too new an experiment to permit dogmatism. But in some shop committee plans, as for example, the Lynn and Pittsfield plans, the members of the General Joint Committee on Adjustment and the Appeals Committee, respectively, are not members of shop committees. They are selected from the employees at large, and are elected by the members of the shop committees, who meet in a special convention for that purpose. None but mem- bers of the shop committees can nominate for members of the general committees. THE BASTS OF REPRESENTATION 37 Election Metlwds In some minds there will arise a doubt as to the wisdom of holding a popular election for the members of a general committee. If the general committee is to represent all the employees of the plant, however, why should not all the employees in the plant have the oppor- tunity to make nominations and to cast ballots ? Should this not be the case particularly where the members of the general committee are taken from the rank and file of the workers? The issue is in reality between direct and indirect elections, between the original method, for example, of choosing a United States Senator through the legislature, and the present method of choosing him by the popular vote of his State. It may be said, however, that if the election rules and procedure in- clude the recall, the matter of voting indirectly is obviously of less importance than otherwise. Without end are the devices which have been and which will be suggested to secure a fair and equitable basis of representation of employees on shop and general committees. One interesting device suggested by the War Labor Board for the selection by a general com- mittee of an appeals committee is this : " In such balloting each General Works Committee member shall cast as many votes as the total number of employees whom he represents. Thus, if Ihere are five committeemen from a certain machine shop where 17,500 men are employed, each of the five will have a voting strength of 350; a commit- tee of 3 from the pattern makers' department of say 420 men would each have 140 votes in the General Works Committee. This arrangement gives fair representation all around, and permits the working parts of the collective bargaining ma- chinery, namely, the shop committees and subdivisions of the General Works Committee, to fit the actual departmental, craft or other needs which they are intended to fill." This suggestion brings us directly to the matter of the size of general committees. Custom differs accord- 38 ing to the character of the general committee or com- mittees to be selected. In Bridgeport they vary from three to nine, depending on the size of the plant. Elsewhere, five is a common number, though it is not unusual to have an even number, as four or six. The principle to be followed is that a general committee must be neither too cumbersome nor too "light." It must not be too large to be unable to do business effi- ciently, and it must be large enough to be able to do business in the absence of two or three members. To sum up in outline the main points thus far covered : Basis of Representation 1. Shop Committees districting. a. Size and location of shops. b. Craft or occupational character. c. Size of committees. 2. General Committees. a. Eligibility. b. Direct or indirect election. c. Size. Underlying all that has been said concerning the basis of representation is the important fact that what is a fair basis of representation in one plant may be unfair in another. Local conditions must always be considered in applying general principles, and the com- mon mistake of trying to use a ready-made form which was designed to meet a different problem must be avoided. What will really determine the final plan of a system of representation will be the peculiar character of the industry. In a certain small factory, for example, there are about two hundred employees. A strict craft grouping of these employees suggested that there should be eight committees. But the fact that the entire plant was contained in one building resulted in a plan call- THE BASIS OF REPRESENTATION 39 ing for one committee of four, each member representing both a craft or crafts and a geographical area. Again, in a certain street railway organization, there was a natural division into five departments. These natural divisions, further, had branches which were promptly made into " shops " electing shop committee- men and men to serve on the department committees, two from each department committee later being selected to serve on the general committee. Here the numbers of the employees in the different districts was not as important a factor as the divisions themselves, which had long been in existence, ready to be adapted to the new purpose. Task of Management It must not be forgotten that the management has to perform a task of equal importance with the task of agreeing on a basis of representation. The em- ployees' side of a shop committee system is only half of the system, though it is the more difficult half to plan. The management must reorganize itself in order to deal with the organization of the workers. It must designate its members of shop and general committees. Its basis of representation will largely follow that adopted for the employees: in the majority of cases it will be a combination of geographical and craft, that is to say, the foremen, cost clerks, leading hands, and so on, chosen to sit on joint shop committees or to deal with representatives of the workers must have direct knowledge of the work of the particular shop, and should be located in that shop. In addition, they must possess a large share of tact and discretion, together with ready willingness to " play the game " in accord- ance with the new rules. Adequate representation of management is as necessary as adequate representation of men. 40 THE SHOP COMMITTEE The districting of a plant brings to a head and focus all the most vital problems in shop committee govern- ment. A perfect basis of representation is probably an unattainable ideal. But a satisfactory basis of repre- sentation can be reached if the joint committee comes to the task in the right spirit and takes as its guide the principles which have been worked out in the labora- tory of experience, remembering always that, like any system of government, a shop committee system is sub- ject to change and needed revision. CHAPTER V THE LYNN PLAN THE Lynn (Massachusetts) Works of the General Elec- tric Company has in operation at the present time a plan of representation which was worked out in joint con- ference between employer and employee and the writer, acting as administrator for the National War Labor Board. This plan thus far has been a pronounced success. A description of it with particular reference to the basis of representation, will serve to illustrate the points taken up in the last chapter. This plant is one of the largest of a series of more than a dozen factory groups located in various parts of the United States. It turns out a great variety of elec- trical apparatus, and one of the buildings at Lynn is the largest single building in the world devoted to the manufacture of electric motors. The Lynn plant has a ground area of 200 acres; there are 3,000,000 square feet of floor space, and the employees number between 10,000 and 12,000. The trades represented include most of the " regular " trades, such as pattern making, die-cutting, skilled machine work, carpentry, blacksmith- ing, etc. The bulk of the work, however, is more or less special in its nature and there is a large amount of semi-skilled repetition work. Difficult Districting Problem The problem of districting the Lynn Works was therefore a very difficult one. Not only was it necessary to give adequate representation to the " regular " trades, 41 42 THE SHOP COMMITTEE but it was also necessary to divide the works into units of government which would insure adequate representa- tion for the various groups of specialists, whether skilled, semi-skilled or unskilled. In spite of the fact that in this plant, as everywhere in the modern industrial world, the old craft lines had largely broken down, there was nevertheless a strong feeling on the part of considerable numbers of the employees that they should be represented by men who had first-hand knowl- edge of their particular jobs. At the beginning of the joint discussion the manage- ment presented a plan which called for one representa- tive for each one hundred employees, irrespective of occupation. At the same time the employee members of the committee placed their emphasis on craft repre- sentation for the reasons above stated. A building map of the works was made and used to guide the discussion. This map showed the location of each building and was supplemented by memoranda which set forth the nature of the work in each building and floor. Some idea of the task which the joint com- mittee performed may be gained from the fact that the conferences over the basis of representation alone occu- pied more than a week of daily sessions. It was first agreed that the rough numerical basis of representation should be 200 employees. It was next agreed that each group of 200, to be called a " section/' should elect two representatives. Up to this point the question of the character and location of the sections or units had not been determined. Craft-geographical Basis With the approximate size of the sections fixed, the committee again consulted maps and memoranda in the attempt to find a common ground for agreement as to character and location. Hard study developed the THE LYNN PLAN 43 fact that it was possible to cut the plant into sections varying in size from 75 to 365, with the average in the neighborhood of 200, and that each of these sections would include more or less the same kind of work and would, in addition, lie within convenient boundaries. In other words, it was found quite feasible to adopt what may be called the craft-geographical basis of repre- sentation. For example, a small building in which 116 employees were doing machine work and assembly of a new type of apparatus was made into a section. The next section had a population of 223 employees, en- gaged in tool-making machine manufacture, small punch press and die work, and the manufacture of arc lamp electrodes. It was found on careful inquiry that two representatives could be selected from this group who either together or separately would have knowledge of the two main branches of the production. Another section, the first and second floors of one building, included 150 employees mainly engaged in light winding and the manufacture of meter parts. The cranemen, wherever located about the plant, were made into a separate section for wage adjustment only. The truck drivers and transportation men were grouped with the employees of the hospital and restaurant. The reason for this was that the transportation workers naturally belonged together, while the restaurant and hospital workers were so few in number and so mis- cellaneous in occupation that it did not greatly matter where they were placed. The groups which demanded craft representation were either given separate treat- ment or were else granted special committees for the adjustment of rates. For ordinary grievances they were to make use of the representatives of the geographical section in which they were employed. Throughout the days of these discussions, the em- ployee members of the committee held frequent con- 44 THE SHOP COMMITTEE ferences with the rank and file of the works and reported to the employer members the criticisms and suggestions thus gathered. This contact proved to be of great value because it took the whole plant into the discussion, and made it impossible for any one to charge that the plan was a " company plan," or something " fixed up " as a result of expediency or hasty compromise. By and large, the sections, which were the units of the shop committee structure, gave representation to crafts or to similar kinds of work. They also represented def- inite, compact geographical areas. Committee on Fair Dealing At this stage of the conference it became necessary to determine what relation the section should bear to the shop committee. Was the section to be considered as a shop, or as something entirely different? The agreement reached was as follows : " The employees' representatives of each section shall consti- tute a committee on fair dealing to cooperate with the man- agement in fostering just and harmonious relations between the management and employees. Any matter requiring ad- justment, may, in the first instance, be referred by the em- ployee affected either personally or with one or both of the representatives of his section, to the foreman of the work on which the employee is engaged. If the foreman fails to ad- just satisfactorily any matter referred to him, it shall then be reduced to writing and taken up by the joint shop com- mittee." In other words, the sectional committee on fair deal- ing was composed, so far as the employees were con- cerned, of two representatives plus the employee or em- ployees having a grievance. This committee was to meet with the foreman immediately in charge of the job, and attempt to settle the case. This committee was not to be a joint committee in the sense that it was made up of equal numbers of workers and of THE LYNN PLAN 45 representatives of the management. It was the first step in the collective bargaining scheme. The next higher step, as may be gathered from the quotation, is the joint shop committee. A " shop " in the Lynn plan is a group of sections. The original districting of the plant called for about fifty sections. After the sections had been agreed to, it was decided to bring two, three, four or five sections together into other groups called " shops." The shops thus created contain sections in which, as far as possible, similar or allied manufacture is being carried on, and which, in addition, are located either in the same build- ing or in adjacent buildings. Each shop has a com- mittee of three employees, elected by the representatives of the sections of the shop from among their own num- ber. A total of twenty shops was established. Shop Committees Shop No. 1, for example, is composed of section 11, with 223 employees, located in the small buildings A, B, and E, plus section 41, with 116 employees, located in adjacent building D. Section 11 is devoted to tool- making machine manufacture, small punch press and die work, and the manufacture of small arc lamp electrodes. In Section 41 there is machine work and the assembly of new type of apparatus. Shop No. 1 therefore has a total of 339 employees. Four repre- sentatives, organized into two committees on fair deal- ing, were to represent these two sections separately. The four representatives, meeting in a miniature con- vention, elected three of their number to serve as the employees' half of the joint shop committee for Shop No. 1. This system was carried out throughout the plant with the exception of a few special sections created for wage adjustment only, and with one or two shop 46 committees elected, as in the case of the two power plants, directly by the employees themselves. In the Lynn scheme the shop committees are real joint committees three elected representatives of the men and three appointed representatives of the management. Their duties as agreed to are to take up matters referred to them by the committees on fair dealing. " If the foreman," declared the agreement, " fails to adjust satisfactorily any matter referred to him, it shall then be reduced to writing and taken up by the joint shop committee. This committee shall endeavor finally to dispose of the matter and shall be at liberty to adopt such means as are necessary, including the calling of witnesses by either side, adequately to ascertain the facts and render a fair decision. Should the committee reach a decision satisfactory to the employee origi- nating the matter, or should the committee reach a unanimous decision on this subject, this decision shall be regarded as terminating the matter." Up to this point in the Lynn plan the representatives of the employees handle matters at issue in common counsel with the management. But just at this point the agreement called for a step which gave the manage- ment one more opportunity to secure an adjustment before the case went to the appeals or general commit- tee. " Should the committee," declared the agreement again, " fail satisfactorily to adjust any matter referred to it, a written report shall be made, together with the recommendations of the committee, if any, and this re- port shall be submitted to the department head or manu- facturing engineer for his action." It must be explained in this connection that in the Lynn Works officials with the title of department head or manufacturing engineer are in charge of large sec- tions of the plant, sections comprising several shops. The purpose of injecting these officials into the system at this juncture was to give the men responsible to THE LYNN PLAN 47 the manager for the conduct of these groups of shops a chance to review cases in which the shop committees reported failure to agree. It was not considered advis- able or necessary to make this a joint review for the reason, first, that it was expected that a limited number of cases would come up beyond the shop committees; and second, that so long as the employees had the right of appeal over the department head to the general committee, there could be no injustice in discontinuing here and here alone the joint representation. General Committees As has already been stated, the Lynn plan provided for general joint committees, the most important of which, from the point of view of the employees, was the general joint committee on adjustment. The original plan provided for a second general committee, that on routine, procedure and elections in reality a rules committee. Subsequently, three other general commit- tees were authorized. The general joint committee on adjustment represents the entire works. It was elected by the representatives of the sections, meeting in a convention called for the purpose. Its members were chosen from among the employees at large, no representative being eligible thereto. The reason for this was that the committee was essentially a court of last appeals on which it was determined no one should sit who had had a direct interest in any case that might come before it. The routine, procedure and elections committee was also elected by the representatives, but from among their own number. As in the case of the shop committees, the management appointed an equal number of represen- tatives to sit with the representatives of the employees on the general committees. In order to secure geogra- phical representation, it was agreed that one of the four 48 THE SHOP COMMITTEE employee members of the general committee on adjust- ment, and one of the three employee members of the rules committee should be elected from the " Federal Street Works," the smaller of the two groups of fac- tories which comprise the Lynn plant, the other mem- bers coming from the larger or " Eiver Works." This plan of representation is pictured in Chart No. 1 on page 49. The chart was designed to show the " source of power " or representative character, of the representatives of men and management in the system. The chart does not show what becomes of a case in the event of failure of the general committee to adjust it. This is indicated in Chart No. 2, which shows how a grievance may go from the individual employee either directly to his foreman or through his representatives to his foreman; thence, if unsettled, to his shop com- mittee ; thence, if unsettled, to the manufacturing head ; thence to the general committee; and thence to the manager of the plant. The Lynn plan was the outgrowth of an award of the National War Labor Board. It was worked out in joint conference between representatives of the management, of the men and the Board and up to the time this book goes to press, still enjoys the unshaken confidence of the parties directly involved. Taken in connection with the foregoing analysis, the following summary of the plan tells the whole story : EEPRESENTATION OF EMPLOYEES GENERAL ELECTRIC COMPANY LYNN WORKS A committee of employees of the Lynn Works, and a commit- tee of the management, meeting under the auspices of the Examiner in charge of the award, have drawn up the following plan of shop committees. In order to carry out the plan, the Works have been divided into sections each containing, as nearly as practicable, 200 CHART ffo. t PLAN OF REPRESENTATION o tiens VvyFma 75-365^ Sheft composed of from S'SJectioas eoth+Tetvl ef Sections Si* Shops 20 Employees Management Each Stetim ofAtproc mately 200 Employed CHART No. o ROUTE OF ATT Issus CHART ILLUSTRATING LYNN PLAN. (See page 48.) 49 50 THE SHOP COMMITTEE employees. These sections have been grouped into " shops " representing manufacturing groups of similar or allied manu- factures. Except for certain special sections, each section is entitled to two employees' representatives, to be selected by secret ballot from the employees in the section. Not less than 30 days before the second general election and all subsequent general elections, the Joint Committee on Rou- tine, Procedure and Elections, hereinafter provided for, shall review the division of the Works into sections and " shops " and shall make any changes which may be necessary to carry out the principles laid -down in the plan. (1) Elections of representatives shall be held semi-an- nually. (2) One-half the number of representatives shall be elected at each semi-annual election. (3) The term of office of a representative shall be one year; provided, however, that in the case of the rep- resentative chosen at the first elections, one repre- sentative from each section shall be retired by lot at the next ensuing election. (4) Retiring representatives, and representatives whose terms of office have expired, shall be eligible for re- election. (5) Any representative may be recalled on written request of two-thirds of the employees qualified to vote in the section in which he has been elected. (6) Any representative shall be deemed to have vacated his office upon ceasing to be an employee of the Com- pany. (7) Vacancies in the office of representative occurring from any cause shall be filled, for the unexpired term, by a special election to be conducted forthwith, in the section where the vacancy occurs, and in a man- ner similar to that of the general elections. (8) In case any representative is incapacitated, a tem- porary representative, to replace him during such incapacity only, may be elected on the written request of two-thirds of the employees qualified to vote in the section in which the incapacitated representative was elected. In such case a special election shall be con- ducted in the section in a manner similar to that of the general election. THE LYNN PLAN 51 Employees must possess all the qualifications herein enu- merated in order to be eligible to hold office as representatives or committeemen : (1) Employees who have been in the Lynn Works for one year. (2) Employees who are American citizens, or who have taken out their first papers. (3) Employees who are able to read and write the Eng- lish language. (4) Employees of Apprentice Departments, eighteen years of age or over, who fulfill the above qualifications. (5) Employees of other departments twenty-one years of age or over. (6) No foreman or leading hand. (7) No alien enemy. The following classes are eligible to vote: (1) Every employee in the Lynn Works, except foremen and leading hands, regardless of age or term of service. (2) After the first election only employees who have been in the Lynn Works for a period of three months prior to the election shall be entitled to vote. METHOD OF CONDUCTING ELECTIONS The first election shall be conducted according to a method prescribed by the National War Labor Board. Succeeding elections shall be conducted according to a method to be determined by the Joint Committee on Routine, Procedure and Elections. This committee shall undertake the determination of these questions at least sixty days before each general election. ORGANIZATION OF COMMITTEES Immediately after the result of a general election has been announced all the representatives elected at the River Works shall meet, select a presiding officer and a secretary and pro- ceed to elect three employees to serve as members of the Gen- eral Joint Committee on Adjustment. In a similar manner all the representatives elected from the Federal Street (West Lynn) Works shall meet and elect one member of this com- mittee. Members of the General Committee may be selected from the 52 THE SHOP COMMITTEE employees at large, or from duly elected representatives of sections. If an elected representative be chosen to serve on the General Committee, his office as representative shall be de- clared vacant and a new election shall be held to choose his successor. The representatives of the River Works shall elect from their number, at the same time, two members of the Joint Committee on Routine, Procedure and Elections; and the rep- resentatives at Federal Street (West Lynn) shall elect one member of this committee. As soon as possible after the announcement of these elec- tions the representatives elected for each " Shop " shall meet and elect from among their number three members of the Joint Shop Committee for that Shop. Representatives may serve on one Joint Committee only. The result of the first election will be recorded by the Ex- aminer in charge of the administration of the award of the War Labor Board. The result of subsequent elections shall be reported to the Management in writing, signed in case of members of the General Committee by the presiding officer and secretary, and in case of members of the Joint Shop Commit- tee, by all the representatives taking part in the Election. The management shall appoint to each Joint Committee as many members as there are employees' representatives, but no more. JOINT COMMITTEES The following Joint Committees are constituted under this plan: 1. Joint Committee on Routine, Procedure and Elections. 2. General Joint Committee on Adjustment. 3. Joint Shop Committees. JOINT COMMITTEE ON ROUTINE, PBOCEDUEE AND ELECTIONS The Joint Committee on Routine, Procedure and Elections shall have charge of all matters relating to dates and hours of meetings of all Joint Committees, the regulation of their methods of procedure, but not of the action taken by them, of the routine of procedure in matters requiring adjustment, and of all matters relating to elections, including all controversies concerning the fairness of an election. PROCEDURE IN MATTERS REQUIRING ADJUSTMENT 1. Committee on Fair Dealing: The employees' representatives of each section shall constitute' a Committee on Fair Dealing to cooperate THE LYNN PLAN 53 with the Management in fostering just and harmonious relations between the Management and employees. 2. Reference to Foreman: Any matter requiring adjustment, may in the first instance, be referred by the employee affected either per- sonally or with one or both of the representatives of his section, to the foreman of the work on which the employee is engaged. 3. Reference to the Joint Shop Committee: If the foreman fails to adjust satisfactorily any mat- ter referred to him, it shall then be reduced to writing and taken up by the Joint Shop Committee. This Com- mittee shall endeavor finally to dispose of the matter and shall be at liberty to adopt such means as are necessary, including the calling of witnesses by either side, adequately to ascertain the facts and render a fair decision. Should the Committee reach a decision satisfactory to the employee originating the matter, or 1 should the Committee reach a unanimous decision on the subject, this decision shall be regarded as terminat- ing the matter. 4. Reference to the Manufacturing Engineer or Depart- ment Head: Should the Committee fail satisfactorily to adjust a matter referred to it, a written report shall be made, together with the recommendations of the Committee, if any, and this report shall be submitted to the depart- ment head or manufacturing engineer for his action. 5. References to the General Joint Committee on Adjust- ment: Should the Manufacturing Engineer fail to adjust satisfactorily any matter referred to him, the question may then be referred to the General Joint Committee on Adjustment for action and report thereon to the Management. Should the Committee reach a decision on any matter referred to it which is satisfactory to the employee or employees originating the matter, or should the decision of the Committee on the question be unanimous, this decision shall terminate the mat- ter. In case the Committee fails to reach a decision under the preceding provisions, it shall be referred to the Manager. 54 THE SHOP COMMITTEE RECORDS OF COMMITTEE MEETINGS Every Joint Committee shall keep accurate records of its proceedings. MANAGER'S REPRESENTATIVE The Manager may appoint an industrial representative to facilitate close relationship between the Management and the representatives, and at any stage in the program of proceed- ings the Manager's representative may be called in to exercise his good offices. He may attend any meeting but shall have no vote. DISCRIMINATION There shall be no discrimination either on the part of the employees or the Management in respect to race, creed, society, fraternity or union. ACCOMMODATION The Management shall provide a suitable place for meetings and defray such expenses as are necessarily incidental to the activities herein provided for. AMENDMENTS Any course of procedure herein provided for may be amended by unanimous vote of the Joint Committee on Routine, Pro- cedure and Elections. Under the award of the War Labor Board, the Lynn shop committees were ordered to review the wage scale from top to bottom and make it comparable with the wage scale of the Schenectady Works of the General Electric Company. The performance of this task was a severe test of the new system, but the test was met successfully. For this reason, and because, further, the Lynn plan appears to be based on fundamentally sound principles, it is commended to the study of all who are interested in the shop committee movement. CHAPTER VI THREE CHARACTERISTIC PLANS THE Lynn plan, described in the last chapter, shows how a shop committee system can be built into and fitted to the particular and special needs of a very large and complex industry. The apparent elaborateness of the Lynn plan was necessary because of the elaborate- ness of the manufacture in the Lynn plant. But the shop committee idea is nevertheless equally adaptable to smaller and simpler industries, as well as to even larger and more involved industrial situations. The shop committee system established at the Pitts- field Machine and Tool Company, Pittsfield, Mass., has already been mentioned. It is worth further attention at this point because it is an illustration of the adapta- tion of the shop committee to a small factory. In the fall of 1918 this factory employed, in round numbers, one hundred men and women. The men, who were in the majority, were skilled machinists, tool- makers, " specialists " on machine work, laborers and apprentices. The girls were doing semi-skilled work, chiefly the winding of wire. The plant was comprised in a single building. For some weeks prior to the installation of the shop committee system, the men had been joining the union. Inasmuch as this was during the war, they realized that they could not force recognition of the union and a reversal of the company's policy of maintaining an open shop. The company, on the other hand, made no objection to the union activities of the men, and 55 56 THE SHOP COMMITTEE was always ready to meet with them, either individually or collectively. Both sides favored the shop committee as a happy solution of their common difficulties. At a joint conference held in the manager's office a plan for a shop committee system was drawn up and agreed to. In view of the small size of the plant it was decided that a single committee could adequately represent the entire works. The women were offered representation on the committee, but declined. Elec- tion rules and procedure were drafted on the basis of similar rules and procedure in other plants (see Chapter VII). The election was held toward the end of the working day later in the week of the conference. A Simple Problem So small was this plant that the vexatious problem of the basis of representation practically settled itself. The workers naturally desired to choose committeemen who were acquainted with the different operations in the shop, and no formal districting was necessary. Nor was it necessary to establish more than one committee, the small size making it possible for a single committee to serve both as a mediating and as a judicial body. The principal value of the installation of this system was, first, that it organized a local industrial government for the plant in which every employee, regardless of outside affiliation, had equal voice. Second, it guaran- teed to the management that when the duly elected committee requested a conference, the matter to be con- sidered was one of interest to the entire body of em- ployees. Third, it brought about a permanent means of maintaining between men and management the good relations of the past which rapidly changing conditions in the industrial world at times threatened to disrupt. In sharp contrast to this one-committee shop com- mittee system is the so-called cooperative plan of the THREE CHARACTERISTIC PLANS 57 Philadelphia Rapid Transit Company. This plan is interesting because it shows that the shop committee form of government can be successfully applied to the transportation industry. It is also interesting because it shows how a shop committee system can be grafted, so to speak, onto a Welfare Association, thus bringing it up to date and rendering it capable of meeting modern demands. The Philadelphia Plan The Philadelphia plan was developed in 1918 as a result of a joint conference between men and manage- ment. The first elections were supervised by the Na- tional War Labor Board. The history 1 of this plan, while of great significance, need not be recounted here beyond saying that the basis of it was a Cooperative Welfare Association established in 1911 at a time when the company faced a serious financial crisis. The pur- pose of the Cooperative Welfare Association was similar to that of a shop committee system, namely, to create and maintain mutually satisfactory relations on the theory that such relations both served the public and secured the investments of stockholders. When the shop committee system was established, the Philadelphia Rapid Transit Company employed nearly 10,000 workers. Through the welfare organization men and management had come into close contact, wages had been adjusted, sick and death benefits had been assured, and working conditions had been improved. The wel- fare association alone failed to provide an organization sufficiently complete and effective for all the needs of genuine collective bargaining. The new plan broadened and enlarged certain features of the old plan, and pro- i See pamphlet entitled " A Plan for Collective Bargaining and Cooperative Welfare," published in 1918 by the Philadel- phia Rapid Transit Co. 58 THE SHOP COMMITTEE vided a system of adjustment entirely separate and dis- tinct from the cooperative welfare work. This separa- tion is well worth noting. Districting the Railroad Organization The first task was the districting of the industry. Study of this problem soon developed the fact that the unit of representation was already in existence, namely, the depots, the stations and the divisions of the road. The industry was already further grouped into five departments, each of which included a number of units : the transportation department, the rolling stock and buildings department, the electrical department, the way department, and the general office department. No new or artificial sectioning was here necessary, as in the case of the Lynn plan. While the number of employees in the different depots, stations and divisions varied within considerable limits, the fact that a given unit contained, broadly speaking, similar crafts or occupa- tions and was also bounded by well defined geographical lines, fulfilled the general principles of representation discussed in Chapter IV. Each depot, station or division under the plan was allowed two representatives, or "branch committee- men," who were elected by the workers in the customary fashion. Each department was given a committee, composed of all the branch committeemen or representatives elected in that particular department. Each department committee elected two of its mem- bers to serve on the general committee. The management appointed an equal number of representatives to meet jointly with the branch, depart- ment and general committees. The skeleton or framework of the Philadelphia sys- tem is quite similar to that of the Lynn system. The CHART OF ORGANIZATION THE COMPANY EDUCATION ARBITRATION THROUGH THE PUBLIC CHAIRMAN PU8LJC SERVICE COMMISSION REPRESENTING SERVICE PRESIDENT CHAMBER OF COMMCRCI REPRESENTING COMMERCE CHABT ILLUSTRATING PHILADELPHIA PLAN. (See page 60.) 59 60 THE SHOP COMMITTEE branch committeemen correspond to the representatives in the Lynn system; the department committees corre- spond to the shop committees; and the general commit- tees in both systems, though elected somewhat differ- ently, are essentially alike in purpose, make-up and function. Arbitration Provision The Philadelphia plan further contained a provision for arbitration which in one form or another should be an essential part of every shop committee system. The scheme as set forth appears to be both ingenious and practicable : " If resort to arbitration becomes necessary, then there shall be an arbitrator chosen by the general committee for em- ployees and an arbitrator chosen by the general committee for employer; the two arbitrators so chosen to select a third arbi- trator. Failing unanimous decision, the decision of any two of these arbitrators shall be binding. " In the event that the arbitrators chosen by the general committee for employees and the arbitrator chosen by the gen- eral committee for employer are unable to agree upon a third arbitrator, then the provost of the University of Pennsylvania, the chairman of the Public Service Commission, and the Presi- dent of the Chamber of Commerce shall be requested to serve as additional arbitrators, or, failing so to do, to appoint their own personal representatives to act as such additional arbi- trators. Failing unanimous decision, the decision of any three of these five arbitrators shall be binding." The chart on page 59 indicates the reason for the se- lection of the additional arbitrators, and also puts in graphic form the scheme of representation. The Bridgeport Plan Far more difficult of organization than either the Lynn, Pittsfield or the Philadelpbia systems was that which was worked out for the Bridgeport, Connecticut, munitions plants in the summer and fall of 1918. THREE CHARACTERISTIC PLANS 61 Sixty-two separate plants were involved, and the em- ployees affected numbered between fifty and sixty thou- sand. The production of these factories was almost entirely for the war purposes of the United States Gov- ernment. It is not necessary to recount here the history of the stormy events which menaced not only the local peace of Bridgeport itself, but imperiled the success of the allied armies, which depended to a large extent on Bridgeport for the manufacture of ammunition for rifles and machine guns. Had the Union Metallic Cartridge Company alone closed down at this time it is well within the truth to say that the United States could not have proceeded with the final push which ended the war in November. The problem of securing agreements between the em- ployers and employees involved in the Bridgeport sit- uation was, therefore, complicated by many grave consid- erations. For the very reasons above indicated the speedy establishment of a workable shop committee sys- tem was a prime national necessity. The Bridgeport plan is essentially very simple. Its main features are: 1. Employees' department committees of three, " one committee for each group of workers under a foreman or f orelady." 2. Employees' general committee for each plant, com- posed either of the chairmen of the department com- mittees, or an executive committee elected by these chair- men. 3. Representatives of the management appointed to deal with the employee committees. 4. A local joint board of mediation and conciliation, composed of three representatives of employees and three of manufacturers. 62 THE SHOP COMMITTEE Committee Functions Under this plan the problem of districting is solved almost automatically. By considering each group un- der a foreman as the unit of government, complete craft or occupational representation is assured, and geo- graphical representation takes care of itself. The com- mittees of three elected to represent the various groups or shops have two functions: first, the function of at- tempting to secure adjustments with the foremen; and, second, the function of meeting with the management on cases in which settlement with the foreman has failed. The general committee for each plant at Bridgeport sits in joint conference with the management to review all cases and matters not settled between the department committees and the management. In addition, the general committee serves as a rules or election commit- tee. The local board of mediation and conciliation has the function of representing the entire body of em- ployees and manufacturers in the Bridgeport plants coming under the scope of the plan. The method of procedure under this simple machin- ery of adjustment was worked out in great detail and has been proved by experience to be entirely practicable. The power and functions of each set of committees, as well as the method of procedure was made the subject of a signed agreement x which has every appearance of leaving no excuse or loophole for evading the princi- ples of the covenant thus created. In the chapter on Procedure some of the provisions of the Bridgeport shop committee system are quite fully discussed, but it is well to emphasize here also the value of having regula- tions so carefully drawn that there can not be the slight- i " Organization and By-Laws for Collective Bargaining Com- mittees, instituted by the National War Labor Board for Bridgeport, Conn." THREE CHARACTERISTIC PLANS 63 est misunderstanding of the way in which the system is intended to work. The Bridgeport plan is worth more extended analysis than can be given it in these necessarily brief pages. Remarkably complete in structure, it is nevertheless easy of operation and certainly as democratic in prin- ciples as other systems established during the same pe- riod. Judging by the evidence afforded by the Pittsfield, Philadelphia and Bridgeport shop committee plans, the shop committee theory is capable of adaptation to very small plants, to peculiar industries like transportation, and to groups of plants in which similar or allied man- ufacture is being carried on. Are we not justified in drawing the further conclusion that the shop commit- tee is a device in industrial government which, if prop- erly shaped to the special or local end in view is of uni- versal application? CHAPTER VII ELECTION MACHINERY ENOUGH has been said in the preceding chapters to give a fair idea of the general principles of shop committee government as well as of the practical application of these principles. We now come logically to the question of the election machinery; in other words, to a discus- sion of the detailed methods of supervising and hold- ing elections. It should go without saying that the first essential requirement is that the elections should be absolutely fair and aboveboard. Since the object of the elections is to choose representatives of the employees, it follows that the elections are, above all else, employees' elec- tions. That is to say, none but employees may nominate, vote and address the meetings. All employees, there- fore, must be on equal terms at the elections : the ballot- ing should be secret, there should be no " lobbying " at or near the polls, and the customary restrictions to guard against fraud and cheating must be enforced. But while the management is not directly concerned in the elections, it has the right to demand that the elections be fair, that none but employees participate, and that no employee, regardless of his union affilia- tion or lack of union affiliation, be discriminated against. If the elections are "straight," the management is bound to recognize and deal with the committees. If there is any question about the character of the elec- tions, the management is correct in withholding recog- 64 ELECTION MACHINEKY 65 nition till it can be satisfied that all was as it should have been. For these reasons it is desirable that the election rules should be worked out in joint conference by em- ployer and employee. After the rules have been worked out and proper means adopted for impartial super- vision of the elections, the management should main- tain a strict policy of hands off. Such a policy and such impartial supervision was required by the National War Labor Board. Wherever shop committee elections were held under an award of this body, the administrative examiner, or some one selected by him, was charged with the duty of running the elections. In the future many shop committee systems will doubtless be installed out- side of any governmental jurisdiction whatever, and a wise plan of procedure would be for employer and employee to agree on some disinterested outsider to take charge of the elections. In this way all danger from alleged influence on the part of the management or of the unions can be avoided. Where To Hold Elections Where should shop committee elections be held? In the early days of the development of shop commit- tee systems this question caused considerable difficulty. Practically all employers have advocated the holding of elections within the plant or shop itself on the ground that an election is purely a plant or shop matter. Practically all representatives of labor, on the other hand, have advocated the holding of elections outside the plant on the ground that the committees are com- mittees of the employees and that the employees should be free to select them where and as they choose. As was brought out in Chapter II, the War Labor Board in the Pittsfield General Electric award decided 66 that the elections should be held on the neutral soil of a public building, thus giving neither side a real or imaginary advantage of place. In later awards the practice was to hold the elections within the plant, of course under government supervision, with the quali- fication, however, that the election should be conducted " where the largest total vote of the men can be secured, consistent with fairness of count and full and free ex- pression of choice, either in the shop or in some con- venient public building." Looking at the question of place from the point of view thus set forth, it will generally be agreed that the largest total vote can be secured in the plant rather than outside the plant. This is borne out by experi- ence. In Pittsfield again, for example, the elections were held outside the plant and necessarily outside regular working hours. Many employees naturally de- sired to get home as soon as possible after the whistle blew, and the desire not to come out in the evening also kept many away from the polls when the schedule called for elections at 6, 7, 8 or 9 o'clock. As a matter of fact, probably less than 75% of the Pittsfield employees voted a large percentage when compared with the vote cast at the average municipal election, but not as large as the record made at the Lynn and Bridgeport elections held in the plant, where the figure ranged from 80 to 100% of those eligible to vote. Elections held in the plant, moreover, can be run of! in less time than outside; the workers are relatively near any room or building chosen for the purpose, and it is possible to have the voting done during the working day. Under an honest supervising officer and with a management acting in good faith, elections can be held in the shop "consistent with fairness of count and full and free expression of choice." As a matter of efficiency, then, 67 and wholly aside from the question of the right of workers to do their own choosing of their own repre- sentatives when and where they wish, the factory seems to be the best place in which to conduct the voting. The Labor Side of It The argument of those labor leaders who contend that elections should be held outside the plant has already been stated in part. To what has been said this further argument should be added: that the em- ployees have nothing to say as to the place where the management chooses its representatives, nor as to whether outside influences, such as employers' associa- tions, are consulted in the selection; that, in other words, each side should be allowed to use its own judg- ment and to follow its own desires in selecting its own committee members. This argument loses sight of the fact that in the majority of instances the management of a plant con- ducts its own business within the four walls of the plant, but in spite of this oversight, there is much sound com- mon sense in this point of view. The right of workers to bargain collectively through their chosen representa- tives has been upheld by the United States Government, and it would seem that this right carries with it the right of selecting the locality where representatives are to be chosen. On the broad grounds of principle, there seems to be every reason to permit employees to vote where they please, provided they can give to the manage- ment satisfactory guarantees that the voting was open to all employees and was, in addition, fair and unin- fluenced. As a general matter of expediency, however, experience in holding elections goes to show that the factory itself is by far the better place. Frank dis- cussion of these points on the part of employer and 68 THE SHOP COMMITTEE employee will usually bring about a satisfactory and unanimous agreement. Elections In the Plant Whereabouts in the plant should elections be held? There are two possible answers to this question. One is to decree that the elections shall be held in some central building in the plant; the other is to hold them in the actual shop where the employees eligible to vote at any particular election are at work. In the first case it is necessary for the employees to leave their benches for a period of from fifteen minutes to three- quarters of an hour. In the second case, either the work may be stopped and the election held in some open portion of the shop, or the ballot box may be carried around to the employees. Thus there are three different methods of conducting the elections, each one of which has been successfully used. The practice of carrying the ballot box around to the voters is the most economical of the time of the voters. The election officials merely go to the man at his bench or machine, hand him a ballot, read or show him the list of nominations, if any, and receive his marked ballot in the sealed box. In plants where this method has been employed, a shop or section of 100 has been voted in approximately half an hour with a loss of time to the individual employee of a very few minutes. The disadvantages of this method are, first, that it requires more labor on the part of the super- visor; second, that it fails to give an opportunity for a convention or meeting at which nominations may be made and the purpose and details of the election ex- plained; and third, that the noise of the machinery is likely to add confusion and to encourage misunder- standing. Where, on the other hand, the election is held in an ELECTION MACHINERY 69 open space on the floor of the shop, the disadvantages just mentioned are done away with. Such an election, however, requires a general cessation of work, including the stopping of machines, and occupies ten or fifteen minutes of the time of each worker. The advantages are, first, that it requires less of the time of the super- visor; second, that it brings the employees together as a shop or group for the purpose of making nomina- tions and so on ; and third, that with quiet in the room, the chance of misunderstanding and error is reduced. These same advantages apply to the method of hold- ing elections in a central place in the plant. When such a place is chosen, it is equipped with semi-per- manent entrances and exits and booths, and provided also with tables, chairs, and a blackboard. Each elec- tion is preceded by a short convention at which the supervising officer in the chair calls the meeting to order, explains its purpose, answers questions, receives nomina- tions, etc. This method has the additional advantage that one set of election officers can handle the check- ing of voters, the counting of the ballots, and the writ- ing of election reports, thus insuring uniformity of practice and speed. In practice it has been found that it is easily possible to run off a section of as many as 300 within half an hour under one supervisor. In a certain plant employing 10,000 workers where this method was used, the elections of all the sectional, shop and general committees were completed in five and one- half days, under the supervision of two men. In a plant of approximately the same size where the ballot box was carried around, six supervisors were required to do the work in the same time. Election Rules But regardless of the method of election, and regard- less also of the place where the election is held, there 70 THE SHOP COMMITTEE are certain practices which should be common to every well managed shop committee election. Foremost among these is the drafting of a set of election rules covering such questions as term of office, eligibility both for nomination and for voting, method of mak- ing nominations, method of deciding who is elected, method of checking the voters, and important items such as the referendum and the recall. These regula- tions should be drawn up by the joint election com- mittee, and should be posted throughout the plant several days before the election. The execution of these regula- tions should be left to the supervisor, assisted by the employee members of the election committee. A typical set of election rules, based on actual experi- ence, is as follows: ELECTION REGULATIONS Eligibility The following classes of employees are eligible to vote: 1. Every employee in the Works, except foremen and leading hands, regardless of age or term of service. 2. After the first election only employees who have been in the Works for a period of three months prior to the election shall be entitled to vote. In order to hold office employees must meet the following qualifications: 1. Continuous employment in the Works for one year. 2. Must be American citizen, or have taken out first papers. 3. Must be able to read and write the English language. 4. Must be 21 years of age or over. 5. Must not be foreman, leading hand, or employed in su- pervising capacity. Terms of Representation 1. Elections shall be held annually. 2. Any committeeman may be recalled at a special election requested on petition of 20% of his constituents, two- thirds voting in favor of recall prevailing at such spe- cial election. 71 3. A committeeman ceasing to be an employee of the Works shall be deemed to have resigned his office. 4. Vacancies in the office of any committeeman shall be filled, for the unexpired term, by a special election con- ducted by the Elections Committee in such manner as it shall order. 5. In case any committeeman is incapacitated, a tem- porary committeeman may be elected on petition of two-thirds of the employees of his shop. Procedure at Elections 1. Upon arriving at the election hall, each employee will give his name and clock number to the checker at the gate, and will then be furnished with a ballot. 2. When the employees in each shop are fully assembled, the supervisor of elections will call the meeting to order and ask for nominations. Each shop will elect three committeemen, but there is no limit to the number who may be nominated. 3. The names of the nominees will be written on a black- board, and the employees will proceed to the booths and write their ballots. 4. Ballots containing more names than the shop is entitled to elect will be thrown out. Ballots containing only one name will be counted. 5. The candidates receiving the highest number of votes will be declared elected. These regulations are not intended to be complete, but rather to suggest the points which ought to be covered. Differing local conditions will require special treatment and variation from the methods here outlined. In some plants a bi-annual election is better than an annual election. Again, in some shop committee sys- tems it has been found desirable to declare the candi- date receiving the highest number of votes in any shop election, the chairman of the shop committee. Ballots, Booths, etc. Ballots for the voting should be cards or slips of paper of convenient size with a notice, such as, " Vote for Three," "Vote for Two Only," or "Fold Here," 72 printed on the face. The ballot boxes should be large enough to hold all the votes cast in any one election; the slot should be in the top, and the box should be sealed by and left in the custody of the election officers. After counting the ballots, provision should be made to preserve the ballots for a stated period in case of a demand for a recount. The record of each election should be made in duplicate or triplicate on a blank prepared for the purpose and should show : the name or number of the shop or section, the date and hour of the election, the candidates nominated and the votes received by each, the number of voters checked in, and the total number of votes cast. After being signed by the tellers and countersigned by the supervisor of elections, one copy of this record should be filed with the management, another with the employees' com- mittee, and a third with the joint election committee. The booths may be extemporized from packing boxes, mounted on work benches. A word should now be said about the important mat- ter of checking the voters. Probably the most conven- ient method is to use the company payroll, rearranged if necessary, in order to include on one sheet or set of sheets the names of the employees of each section or shop eligible to vote. These lists should be pre- pared and posted a few days in advance of the election so as to permit the correction of errors. As each employee comes to the gate, he should be checked in by a clerk of the committee. In some plants a clerk from the particular shop or section pay office stands outside the election hall to identify the voters, thus giv- ing the management an assurance which it has the right to demand. Other ways of insuring purity of elections will readily present themselves. The creation of a regular or standing general joint committee on rules is usually advisable. Such a com- ELECTION MACHINERY 73 mittee should keep the records of the elections, should make and revise the election rules, should conduct the elections, including bye-elections to fill vacancies, and may in addition be charged with the duty of redistrict- ing the plant from time to time as the working of the system or the creation of new or the abolition of old sections requires. CHAPTEK VIII PROCEDURE IF we can call the joint agreement on which a shop committee system is based the constitution of the indus- trial government of the plant, we may say that the rules of procedure for the system are the laws which apply the principles of the constitution. Smooth and orderly working of a shop committee system can not be obtained unless such laws are first carefully formu- lated and then rigidly enforced. We have seen in previous chapters that the general method of procedure in a shop committee system is for the grievance or matter at issue to be referred by the individual employee first to his representative or committeeman ; that such representative or committee- man next takes the case up with the foreman, and, failing settlement, with the joint shop committee; that the shop committee, if unable to agree, refers it on up through the regular system till it reaches the manager or, in rare instances, outside arbitration. But in order to guide the business of these various representatives and committees it is necessary to lay down in some detail and with full consideration by both sides certain specific rules of procedure. These rules will naturally vary according to the situation, but in all plants we find that many of the problems are the same and that the same or similar rules will apply. Practical experience tends to show that a complete set of rules of procedure can not be laid down in ad- vance of the establishment of a shop committee system. Nevertheless a beginning must be made, and in all 74 PROCEDUEE 75 probability the best plan is for the joint committee of men and management having charge of the development of the system to agree on a set of temporary rules of procedure which may later be revised and perfected by the general joint committee on rules. It is essential above all that the rules of procedure should be uniform throughout the plant, and the in- dividual shop committees should not insist on consider- ing themselves as independent of the rest of the sys- tem. In order, however, to avoid the possible danger of establishing an undemocratic set of regulations and of denying a minority its rights, provision should be made for a popular referendum on rules and procedure whenever a certain percentage of the rank and file de- mand it. Abuses will creep into the best systems of government, and the only adequate remedy for abuses is frank and free discussion and full opportunity for amendment. But the routine work of making and en- forcing rules should be left to the rules committee to which should be given jurisdiction over the entire fac- tory. Among the subjects which rules of procedure should cover are : Time and place of meetings. Records of meetings. Method of arriving at committee decisions. Method of investigating cases. Compensation for committee service. A typical set of rules for joint shop committee meet- ings is the following: PROCEDURE OF SHOP COMMITTEES 1. All meetings shall be held at 5 P. M. 2. A shop committee meeting falling on a holiday shall b held at 5 p. M. on the working afternoon next following. 76 THE SHOP COMMITTEE 3. Shop committee meetings shall be held in accordance with the schedule prepared by the rules committee. Special meet- ings of shop committees may be called at the request of one member, made to two members of the rules committee, an employee member and a management member, who shall decide on the request as speedily as possible. Meetings shall be called to order, minutes of preceding meeting read and approved and, in the event that no business is presented, immediate adjourn- ment is in order. 4. The members of each joint shop committee shall serve as chairman in alphabetical rotation. The chairman may par- ticipate in the discussion and may vote as a member of the committee. 5. Each committee shall choose a permanent secretary from among its members. The secretary shall keep the records as hereinafter specified. The secretary may serve as chairman. 6. The secretary of the shop committee shall keep the min- utes of each meeting, including a record of the disposition of each case. Each member of the committee is entitled to a copy of these papers and one copy shall be filed permanently with the rules committee. These files shall be open to the inspection of any employee. 7. Every question to be considered and voted on by a shop committee shall first be reduced to writing, signed by the par- ties to the issue and filed with the secretary of the shop com- mittee. 8. The secretary of a shop committee about to hear a case shall notify all witnesses whom either side desires to have called on said case to attend at the proper time and place. The names of the witnesses shall be filed with the secretary by the parties requesting their presence. 9. When a member of a shop committee is directly involved in a point at issue, he shall be deprived of his vote, and one of the opposite side, to be selected by that side, shall also be deprived of his vote for the occasion. Committeemen thus de- prived of their votes may participate in the discussion. 10. If one member of the employees' side or one member from the management's side is absent, one member from the other side shall retire. No meetings of a shop committee shall be held when less than two-thirds of the employee members and of the management members, respectively, are present. 11. A unanimous vote of the committee shall settle any question. If a majority vote, however, is satisfactory to the employee bringing an issue to the committee, it shall be con- sidered as terminating the matter; the party objecting should PROCEDURE 77 be recorded and shall have the right to submit a minority report. In case the majority vote is not satisfactory to the employee bringing the issue, the matter shall be carried to the next committee under the plan. 12. Each decision or record of a committee meeting shall be numbered as to shop and also as to case or docket number. Every case shall be docketed in the order received. 13. Each shop committee decision shall be available to the employee or employees bringing an issue. Copies of decisions shall be filed with the management and with the rules com- mittee and may, upon order of the rules committee, be pub- lished in the plant. 14. Where it has taken some time to reach a decision, such decision may be made retroactive. 15. Employee members of the shop committees will be paid their average earnings for time spent at regular and special meetings, but in no case will overtime be paid. These rules of procedure are practically self-explana- tory. Success in the operation of a shop committee system can not be obtained without regularity of meet- ings, without the fullest and freest opportunity for securing all the facts necessary to a decision, and with- out the maintenance of careful records. In some plants the shop committees do not meet at regular intervals, but are called only when there is business for them to transact. In such cases it should be clearly agreed that meetings may be held whenever there is demand from any member, acting usually on the request of a constit- uent. The rules of procedure adopted for the Bridgeport shop committee system illustrate this method of doing business and also suggest several interesting variations from the typical set of rules just given : METHOD OF PROCEDURE (30) Employees desiring to have their Department Commit- tee act for them, individually or collectively, whether as an appeal from a decision of their foreman, or as a direct presen- tation, shall file their case with the Chairman of said Com- mittee in writing and signed, if practicable; otherwise, the 78 THE SHOP COMMITTEE Chairman of the Committee shall reduce same to writing. These matters shall be transacted on the premises outside of working hours. (31) The Chairman of Department Committees shall accept for consideration all cases filed as provided under Section 30. (32) The Chairman of any Department Committee shall call a meeting of the Committee at such times and places as the circumstances demand, for the consideration of such cases as have been filed, and also of such matters as the Committee contemplates initiating. Such meeting shall be held on the premises but not during working hours, or on Company time, except upon consent of the Management. (33) Whether cases, or matters, considered in accordance with the provisions of Section 32 shall be taken up with the Management, shall be decided by a vote of the Committee. Two votes for, or against, any proposition shall decide and no reference or appeal to the joint Department, Executive, or General Committee can thereafter be made. (34) Whenever it is desirable for a Department Committee to meet with the Management for the presentation and con- sideration of prepared cases or other matters, the Chairman of said Committee shall request through the Foreman of the Department involved, a Joint Conference with such Repre- sentative or Representatives as the Management shall desig- nate for this purpose, not to exceed in number the member- ship of said Department Committee. Such request shall be accompanied by a specification in writing of the matters to be considered. (35) The Management shall meet with such Department Committee in a Joint Conference upon the date requested, or, if for any reason this is impracticable, upon one of the next six days thereafter mutually agreed upon, not counting Sun- days and Holidays. (36) Any Management shall have the privilege of calling a Department Committee to a Joint Conference by the method set forth in Sections 34 and 35. ( 37 ) The Chairmanship of each Joint Conference shall alter- nate between the Chairman of the Department Committee and the Spokesman for the Management's Representatives. (38) All Joint Conferences shall be held immediately fol- lowing the close of the day's work upon the date fixed, unless by unanimous vote some other date is fixed, either in the De- partment involved, or in some suitable room convenient thereto provided by the Management for this purpose. Joint Confer- PROCEDUEE 79 ences may be held on Company time by consent of the Man- agement. (39) Joint Conferences shall be private except where wit- nesses may be called. Full and free opportunity shall be granted to all present to discuss, from every angle and view- point, all cases and matters presented by either side at each Joint Conference. (40) Immediately following discussion of any issue at a Joint Conference, a vote shall be taken upon the question at issue and a majority of two votes of the entire membership of the joint committee shall decide; that is five votes out of a joint committee of six shall control. (41) When an agreement has been reached the case or mat- ter in issue is settled beyond appeal, and shall be promptly ad- justed in accordance therewith. (42) When no agreement has been reached, the Chairman of the Joint Conference, unless such case be withdrawn by the party proposing the action, shall immediately refer in written form the case or matter in issue to the Chairman of the Em- ployees' General Committee for presentation, discussion, con- sideration and disposition at a Joint Conference between said Employees' General Committee and a like or less number of the Management's Representatives. (43) A record of proceedings of all Joint Conferences shall be made, signed by all members present. The business of the general joint committees should be governed by the same rules adopted for the shop committees, or by similar rules. A word or two should be said on the matter of com- pensation for committee work. The general practice seems to be for the management to pay representatives or employees for regular committee work. In some plants all. representatives are paid in accordance with paragraph '1'5 of the typical rules. In other plants the company pays only those representatives who sit on joint committees, and for the time spent in joint com- mittee sessions; time spent by employee representatives or committeemen in adjusting cases, gathering evidence and performing other functions of their office is not paid 80 THE SHOP COMMITTEE for. In a few plants, the company does not compensate the employees' representatives for any time outside of their regular work at the bench. It is difficult to make a hard and fast rule to apply to all cases, but certain general principles may be stated as a guide. In plants where the management does not pay employees' representatives the position taken often by employees as well as by management is that these representatives are officially representing the rank and file, and that if they should be paid for their services, the rank and file should pay them. This usually means that the unions will furnish the compen- sation, though in some establishments the funds of the mutual benefit association are drawn upon, or a special fund created. In the majority of plants where all repre- sentatives are paid for their time, the position taken is that, while they are primarily representing the rank and file, they are also representing the best interests of the company; that, in short, they are doing work for the company just as if they remained at their benches. Where representatives are paid only for time spent in actual committee meetings, the position is that they are then serving in a judicial capacity for this benefit of the entire plant, and should accordingly be compensated. Experience shows that some method of compensation is both desirable and necessary. The business of ad- justing disputes between men and management calls for both time and energy. It calls for time in working hours as well as time outside working hours. Time to the piece worker especially means money, and loss of time means loss of earnings. In practice it has been found that unless some method of paying for shop committee service is adopted, the service rendered is not up to standard. The various methods in use should be discussed fully in joint conference of men and man- PEOCEDURE 81 agement and a clear understanding should be arrived at before the committees are elected. Underlying the rules of procedure for shop committees should be, above all, the spirit of cooperation and of fair play. If this spirit is permitted to have full scope, the details will automatically adjust themselves. CHAPTER IX SHOP COMMITTEES IN ACTION THIS incident is significant: After two weeks of almost continuous sessions, a joint committee representing the employees and the manage- ment of a big industrial plant completed its job. It had districted the plant, agreed on the method of elec- tions, and drawn up the election rules and the by-laws of the system. In the course of the meetings employer and employee had come to know each other well, and the distrust and suspicion which had marked the first con- ferences had entirely given way to a feeling of mutual respect and confidence. The manager rose, and with more formality than had been customary in the committee, expressed his cordial appreciation of the spirit of cooperation which had been shown by the employee members, declared it his conviction that the management was animated by the same spirit, and concluded by remarking that from this day forward the relations between men and man- agement were to be on a new basis, a basis which meant square dealing and increased good will on each side. "I guess," replied the chairman of the employees' side of the committee, referring to the bitter strike which had preceded the establishment of the shop com- mittee system, " I guess there won't be any more serious disagreements between us." " I'll make one right here," said the manager. " I expect that we shall disagree. In fact, I hope that we 82 SHOP COMMITTEES IN ACTION 83 shall, because all progress is made by disagreement. But now we have laid down the rules of the game and we'll fight our disagreements out face to face. We'll play the game." Another incident which illustrates concretely what a shop committee system may accomplish through its ap- peal to natural human love of order took place in a factory during the elections. A woman stenographer, a member of the union, employed in the office of, let us say, Building A, was told by her chief that work was slack and was offered a transfer to another depart- ment. She objected, and the man next higher up in- formed her that her work was poor. This charge she resented and in consequence refused to take the trans- fer. The management thereupon laid her off till such time as the work should pick up once more. When this occurred there was no shop committee sys- tem in this plant, though a system had been agreed on and was about to be established. A. Typical Case One of the men in Building A who happened to be a member of the elections committee, volunteered to do what he could to adjust this case for the girl. His first recourse was to the head of the employment office, who, while not directly charged with the settlement of griev- ances of this kind, was in the habit of lending a helping hand. This officer took up the case with the head of Building A, but was unable to adjust the matter satis- factorily. Both sides stood firmly on the record: The management insisted that there was no work for the girl and that she was a poor worker; they further in- sisted that she must expect a lay-off after having re- fused a transfer to another building where her services could be used. The girl and her advocates, on the other hand, insisted that this was the first time that 84 THE SHOP COMMITTEE her work had been unfavorably criticized, claimed that another girl, who did not belong to the union, had been engaged to supplant her, and charged that the company was discriminating against her because of her affiliation with organized labor. The case began to assume serious proportions. In the morning of the day on which Building A was to hold its shop committee election, the two hundred- odd employees in this building had become so exercised over the case that they stopped work. They refused to leave the factory or to resume work till the girl should be reinstated and compensated for time lost. News of this action spread rapidly, and in exaggerated form, throughout the plant. Occurring as it did in the midst of the elections, the incident seriously threatened the success of the new system. Yet the solution was clear and simple. A member of the election committee secured permission to address the employees of Building A. After they had been assembled he spoke to them in substance as follows: " You claim that Miss has been discharged be- cause of union activities. The company claims that she has not been discharged at all, but laid off on account of lack of work. Who knows all the facts in the case? What means have been taken to learn the facts? If you will go back to work now, you will have the chance to elect your shop committee this afternoon, and your shop committee can find out the facts and make a fair decision. If the shop committee cannot agree, there is the general committee to appeal to next. Why lose time and money till you know what it is all about till you know that you're right ? . You owe it to the company, but first of all to yourselves to abide by the rules of the game." A viva voce vote was taken on the proposition to resume work till the committee election and the investi- SHOP COMMITTEES IN ACTION 85 gation by the committee. Within ten minutes the ma- chinery in Building A was running once more. Within three days the shop committee took up the case and rendered a unanimous decision which criticized the management for failure to teach Miss properly, while criticizing Miss for having refused the trans- fer. The decision recommended that she be transferred. The employees accepted the verdict as fair, and the case was definitely settled. Had there been no shop com- mittee, in all probability there would have been a strike, small or large, with all that a strike involves of loss to both strikers and company. It would be possible to fill this book with the relation of similar incidents showing the value to employer as well as to employee of a shop committee system. The claim is not here made that a shop committee system will prevent all strikes, for no such claim could be sustained by experience. One of the most unnecessary strikes in years occurred in January, 1919, in a plant in which a shop committee system had been installed only a few months before. In this particular case the condition which caused the strike was not only a local condition it was a condition affecting other plants in the same industry. But it may be stated with a reason- able degree of accuracy that in the majority of situations where a strike is among the possibilities, it will be averted by a shop committee system, provided the causes are local to the plant, and provided further that there is the feeling on both sides that each side has acted and will act in good faith. Petty Tyranny Checked In the ordinary routine of business, a shop committee system eliminates much of the friction which is only too likely to arise from the misunderstandings or from the petty tyranny of "bosses." This feature was re- 86 THE SHOP COMMITTEE ferred to in the report of the Government Commission which studied the Colorado plan (see Chapter I). It is an important consideration. Even in the best man- aged industrial plants it is impossible to avoid the evils which arise from man clad with a little brief authority. The petty boss, whether leading hand, price setter or foreman, is, first of all, concerned with securing produc- tion. Often he is in direct competition with the fore- men of other jobs, and naturally he desires to make a record for his shop. This motive frequently leads him to all sorts of small and unnecessary injustices toward his employees, and if one foreman succeeds as a result of tyranny, his competitor is likely to go and do like- wise. The effect on the men is bad. They fight fire with fire and may turn out to be more intolerant and less humanly reasonable than the foreman who started the trouble. A shop committee system acts as a corrective and check to this kind of thing. Both foreman and em- ployee know that their actions may be investigated by men higher up. What they do is a matter of written record in the minutes of the shop committee. They become responsible, in short, to the rank and file of the representatives of employers and employees who make up the government. They feel keenly that the great moral power of public opinion is organized and that it stands ready to judge them. There is the same differ- ence between the old and the new way of conducting business between men and management as there is be- tween life in an unorganized community and one in which law and order have been established. The point of view of managers of industrial plants which have adopted shop committee systems is well put in this quotation from an interview with K. H. Eice, acting manager of the Lynn Works of the General Electric Company: SHOP COMMITTEES IN ACTION 87 "... Through these joint committees which I am now speaking of, one of the chief advantages of the plan may be realized, namely, education of the employee members of these committees in the needs, requirements and technicalities of the business may be brought about, and through these members an education of the employees themselves may be secured which can in no other way be brought about. " There are now many industries throughout the country in which similar plans are in operation and many cases of satis- factory working of such plans are reported. In these cases it is found that a great education of employees and of manage- ment has taken place. The employees find that many of the things with which they are dissatisfied are promptly remedied while others are more fanciful than real. They come to a better realization of the difficulties of management; they learn the need of output; of a fair day's work for a fair day's pay; they get the spirit of the management and get into step with it. " On the other hand the foremen learn to sympathize with the point of view of those employees who are fair and loyal; they learn better methods of dealing to secure results; they learn not to be arbitrary but to be right. " The management is better in touch with the spirit and atmosphere of the shop; the shop is better in touch with the spirit and aims of the management." The average laboring man is as enthusiastic about shop committees as is the intelligent employer. To members of organized labor, committees and committee work and procedure are an old story; and union as well as non-union employees are generally quick to realize what an advantage it brings to their side to have a fair and orderly method of transacting business with employers. This point may be illustrated by the comment of a labor leader representing both organized and unorgan- ized workers, on a shop committee system installed in accordance with an award of the War Labor Board. For many months prior to the award, which, incidentally raised the wages some twenty per cent., the feeling of men toward management and of management toward men in this plant was of an almost unbelievable bitter- 88 THE SHOP COMMITTEE ness. It was the kind of bitterness which seems to revolve in a vicious circle, requiring some radical out- side force to destroy it. Every step taken under the award was hotly contested, including, of course, the shop committee system. But when the fighting was over, and the shop committees were recognized and running, a new atmosphere seemed to pervade the plant. Said the labor leader : "We were very thankful to the Board for bringing our wages up, but that isn't the most important thing the Board did." " What is ? " he was asked. " The committee system. Giving us poor devils a chance to go to the old man and tell him about condi- tions without the risk of being jumped for it by some straw boss down the line. You've never worked here and you're lucky. But if you had, you would appreciate what this new deal means to the rank and file." Efficiency In the best and largest sense of the term the shop committee brings efficiency into a factory. It is not a one-sided efficiency. It is an efficiency which applies with equal force to employer and employee. " This committee system," the head of a division of a great plant once told the writer, " is a benefit to me because it enables me to get better reports of the work from the men. I have always had plenty of reports from my assistants, but the man at the machine has been silent. Now I begin to know what he is thinking about his work, and I find that he has some very valuable ideas about the way the work should be done. There used to be quite a little cheating running up the indicators of punch presses without material, and so on. That doesn't go any more. The committees frown on it. Also there used to be loss of production and SHOP COMMITTEES IN ACTION 89 friction because of personal rows between the fore- men and the men under them. That doesn't go any more, either, and we've got the committees to thank for that. The manager estimates that the system costs us about $8,000 a year. I figure that it doesn't cost us a cent, and that we make money on it in increased contentment and efficiency." The uses of shop committees, though they are many and various, are all in the fulfillment of the same general purpose. The Whitley report suggests a large variety of problems which can be adequately handled by shop committees and which can not be adequately handled in any other way yet devised. Another illustration of the wide scope and solid worth of joint committees comes from the record of the United States Fuel Administration, which, at a critical moment in the war, organized a system of spe- cial production committees for the bituminous coal fields. Three representatives of the mine workers and three men representing the company sat on each com- mittee. Their duties included the following: To make known the fact that there must be a large increase in tonnage without which the United States Government will fail in its war work. To pass careful, and impartial judgment upon the reasons given for absence, short hours worked, or other occurrences which may have resulted in loss of tonnage. . . . To clear the record of any worker who has lost time or ton- nage through his own fault, provided the worker is willing to make up the lost time or tonnage and the operator is satisfied to have him do so, and provided also that in doing so he will not violate any rules or mining laws and will not render it difficult or impossible for the operator to give an equal turn of cars. . . . Etc. The shop committee movement is young, and its limitations are more apparent to some minds than its 90 THE SHOP COMMITTEE advantages. But its limitations are or should be nothing but the ordinary bounds of common sense and reason. No human association, no matter how ideally organized, can be perfect. On the other hand, it is equally true that the possibilities of the shop committee movement are wider than the possibilities of the trades union and employers' associations movements, for the reason that the shop committee represents the coming together of two elements which hitherto have been con- spicuous because they have been apart. The shop com- mittee, in short, is a simple and familiar device ap- plied in a new way to meet and solve very old problems. It succeeds where it is estimated at its real worth no more, and no less. CHAPTER X THE SHOP COMMITTEE AND THE UNIONS THE shop committee is so new a thing in the United States that its relationship to the trade union is still a matter of speculation. Employers ask: Is the shop committee a substitute for the union? Does the shop committee encourage unionism? Employees ask: Is the shop committee a device of capital to prevent union- ism? Does the shop committee discourage unionism? These questions we cannot answer with certainty, for the shop committee is an experiment still an ex- periment in industrial government. Its history is still to be made. Yet we may gather from the scanty available records here in the United States as well as from the larger experience in Great Britain enough information to in- dicate what the relationship between the shop com- mittee and the union labor movement will probably grow into. Let us first look at the situation in Eng- land. An article in The Public x is highly suggestive : " Strikes on a large scale in Great Britain, apparently with- out the knowledge or consent of the trade union leaders, are exciting much comment on this side of the water by those who think that they see an outbreak of Bolshevism in England. Such apprehension springs from a lack of understanding of the British labor movement. " There are really two labor movements in Great Britain. One is the ordinary craft unionism, which parallels American trade unionism very closely; the other is the shop stewards' i The Public, Feb. 15, 1919. 91 92 movement. And it is not an uncommon thing for the British worker to come within the scope of both movements. Some- times the two pull together, and sometimes they are in conflict. " The craft unions are nationally organized like our own, and all men are organized by trades into large national socie- ties. The shop stewards are individuals or committees who represent the workers of all trades in individual shops or plants. Sometimes they are merely representatives of the va- rious unions. At other times they represent the workers di- rectly and are directly elected. They frequently represent all the workers in a shop, whether members of a union or not. Occasionally conflict is avoided by requiring the shop steward to be a member of some union. " There are thus two systems pulling together sometimes and pulling in different directions at other times, one organ- ized upon a craft basis and the other upon a shop basis. The shop stewards have federated, and have built up organizations composed wholly of shop stewards, which cover large areas. These federations are headed toward the ' one big union ' scheme advocated by a number of American leaders. " There is some advantage in having the shop steward sys- tem. It decentralizes trade union negotiations remarkably and increases solidarity. It settles minor grievances by direct contact with the employer, rather than through the interven- tion of a union delegate and the use of very complex and cum- bersome trade union machinery. The shop steward system is a short-cut. It is a protest against craft union bureaucracy, and its rapid growth during the war was caused by the inflexi- bility of the trade union. There are some disadvantages, how- ever, as the present situation in Great Britain will exemplify. The duality of the organization raises the question of alle- giance. Sometimes local grievances result in strikes, and where there is no point of contact between the shop stewards and the trade unions, members of trade unions who owe part of their allegiance to a local shop steward find themselves tak- ing part in unauthorized strikes called by the stewards. These strikes frequently spread and affect great areas. " This is literally what has been going on for some time over the greater part of the United Kingdom. Labor disturbances of considerable magnitude between employer and employee are occurring without any knowledge on the part of the national officials of the various crafts involved. British trade unions are in much the same position that the American Government was in just before the Civil War. They have two kinds of government in the same area, local and national, and each SHOP COMMITTEE AND THE UNIONS 93 claims to be supreme. A recent proposal to unite the two movements and agree on a practicable division of sovereignty was voted down, but sheer necessity will bring them together in the near future." Making every allowance for important differences in national psychology and in the character of the British and American labor movements, this analysis describes with surprising accuracy the sitiation which, in the opinion of the writer, will develop in the United States. Mainly for the reason that the shop committee movement is not as far advanced here as it is in Great Britain, no such conflict as that pictured in the article just quoted has yet arisen. It is to be hoped that none will arise and that a final and satisfactory relationship between shop committees and the unions will be worked out in peaceable fashion. But that there will eventually be a merging of certain of the interests of the shop committees and certain of the interests of the unions can no longer seriously be doubted. From its very earliest beginnings in the United States the shop committee movement has been neutral on the union question. For example, in its contract with its employees under the plan of representation described in Chapter I, the Colorado Fuel and Iron Company speci- fically guaranteed the right of the workers to belong to a union or not, as they chose. A similar guarantee is given or implied in every plan of representation, and as has been pointed out more than once, the right to belong to unions without fear of discrimination or dis- charge was one of the agreed principles of the War Labor Board. Certain Premises On the surface, therefore, the shop committee is neither a union nor a non-union scheme. It is primarily a method of organizing the employees of a given plant 94 with the employers for the purpose of bringing about efficiency and .better working conditions. The charac- ter of this organization is in several respects different from trade union organization. One important respect is that the organization is dual or joint and that it is based on the theory of cooperation rather than on the theory of competition or conflict. Nevertheless the shop committee has a distinct con- nection with the union labor movement, and it is well for both employer and employee to face the facts and understand the nature of this connection. The shop committee theory admits as an important premise that employees have the right to organize as employees of a given plant in order to deal, or bargain, collectively, with the management. If this idea is not recognized, there can be no shop committee system. If it is recognized and lived up to, a shop committee system can be created and will succeed. In the second place, the shop committee theory ad- mits the premise that the organization which will be most effective in securing the results which are mutually desired, is an organization of the employees of a given plant, and of them alone. Many managers declare: " I will meet with my own employees at any time, but not with union representatives." To such managers the shop committee necessarily makes a strong appeal, for it is a method of securing orderly and representative meetings with employees and only with employees. The primary function of the shop committee is, there- fore, local to the plant, and shop committee systems may exist in open shops or in closed shops without effecting any basic change in the relation of the manage- ment to organized labor. This fact is an impelling reason with many employers for favoring the shop com- mittee movement and for utilizing it in their plants. Putting to one side the question of union recognition SHOP COMMITTEE AND THE UNIONS 95 which the shop committee does not answer because it does not affect it, let us look at the bearing of the shop committee on the union movement as a whole. We may say that there are roughly three kinds of labor organizations: the old standard craft or trade unions; the newer industrial or group unions; and the labor councils or local central labor unions, composed of repre- sentatives of various union labor elements in a com- munity. The prime object of all these organizations is mutual benefit through various forms of collective bargaining, and the differences between them are chiefly differences in methods of organization and tactics. On the employers' side there are manufacturers' associa- tions, chambers of commerce, boards of directors and trades or industry councils which represent roughly the economic interests of employers as a class and as of a particular industry. For the purpose of learning the place which the shop committee occupies in relation to this system of organization it is not necessary to analyze it down to a finer point. Into this complex system comes the shop committee. Like the trade union the shop committee provides a method of collective bargaining as to wages, hours and general conditions of labor. In plants where the trade union is recognized, either frankly or indirectly, the establishment of a shop committee system does not change fundamentally the relationship between the man- agement and its employees. In plants where the trade union is not recognized, the shop committee provides the only means of establishing collective bargaining, and to this extent therefore accomplishes one of the things for which the trade union exists. Shop Committees Overlap Unions Unlike the trade union, the shop committee provides a method of handling all sorts of conditions in a plant, 96 THE SHOP COMMITTEE general and special alike. In plants where the union is recognized, the shop committee, while not affecting fundamentally the relationship between the management and its employees, provides both with machinery for the joint settlement of local or domestic plant disputes which are not of enough importance to warrant calling in union representatives. In plants where the union is not recognized, the shop committee performs this same function and in addition provides, or attempts to provide, machinery for the settling of all disputes, great and small. The shop committee therefore to a certain extent in closed shops and to a large extent in open shops takes the place of the trade union. For the reasons just enumerated the shop committee appeals naturally to employers who do not recognize the unions, and conversely tends to arouse the antago- nism of labor union advocates and members. Another important fact in this connection is that the shop committee movement in the United States is neither primarily a labor movement nor a movement promoted solely by employers. It has advocates and opponents in both camps. It has had, as we have seen, a power- ful promoter in the United States Government, which, it is to be assumed, acted as representative neither of capital nor of labor, but of the public. In its present stage, then, the shop committee movement is in the best possible position for development along lines which will make it of the largest service to the three parties concerned in the maintenance of industrial peace, namely, employers, employees and the public. Wholly outside of the relationship established by shop committees between men and management in given plants is the relationship between the shop committee and the general union labor movement. We have seen that the establishment of a shop committee system in a factory does not in theory at least bring about union SHOP COMMITTEE AND THE UNIONS 97 recognition, and that it does not, in theory once more, encourage unionism. But does it not in fact advance the tenets of unionism in general? Is not the shop committee a training school in industrial organization, and will not the workers thus taught the advantages and technique of organization, incline more and more to enter the wider field of labor organization as repre- sented by the trade union? Is it a fair statement of the case to say that the shop committee is at best a temporary expedient designed to avoid the apparent recognition of the union, while in reality recognizing the essential principles of the trade union? At just this point it is well to emphasize one central difference between the labor situation in the United States and the situation in England, to which we naturally turn for information and guidance on mat- ters both of political and of industrial government. The trade union movement in England is older and more mature than it is in this country. The ques- tion of union recognition has there been decided in the main in favor of the unions. We are consequently not surprised to find in the Whitley report that works or shop committees are strongly recommended, not as a means of supplanting the unions, but as a means of supplementing the work of the unions of employers as well as the unions of employees. We read in the supplement to this report : * ". . . Our proposals as a whole assume the existence of organizations of both employers and employed and a frank and full recognition of such organizations. Works committees es- tablished otherwise than in accordance with these principles' could not be regarded as a part of the scheme we have recom- mended, and might indeed be a hindrance to the development of the new relations in industry to which we look forward. We think the aim should be the complete and coherent organ- i See Appendix. 98 THE SHOP COMMITTEE ization of the trade on both sides, and works committees will be of value in so far as they contribute to such a result. " We are of opinion that the complete success of works com- mittees necessarily depends largely upon the degree and effi- ciency of organization in the trade, and upon the extent to which the committees can be linked up, through organizations that we have in mind, with the remainder of the scheme which we are proposing, viz., the district and national councils. We think it important to state that the success of the works com- mittees would be very seriously interfered with if the idea existed that such committees were used, or likely to be used, by employers in opposition to trade-unionism. It is strongly felt that the setting up of works committees without the co- operation of the trade-unions and employers' associations in the trade or branch of trade concerned would stand in the way of the improved industrial relationships which in these reports we are endeavoring to further." To the great mass of American labor the statement of these principles has doubtless been a cause of satis- faction : certainly these principles meet with the ap- proval of organized American labor. To the great mass of American employers the quotation just given will doubtless appeal as an excellent argument against the establishment of shop committees in the United States. Viewed in the light of the Whitley report, the shop committee is seen to be an adjunct to the trade union, and the encouragement of the one appar- ently means the encouragement of the other with all that that implies of renewal of the old conflict, abuses of privilege, and the like. But this overlooks the vital fact that the shop com- mittee is a dual or joint form of organization. This fact brings into the situation an entirely new element, affecting the situation fundamentally. Moreover, it must be remembered that the shop committee is but one branch of a new system of industrial government, already in existence in England and rapidly taking root in the United States also. This system of government SHOP COMMITTEE AND THE UNIONS 99 was outlined in the Whitley report. 1 Like the shop committee, it is dual or joint in character. The shop committee is but the lowest unit; the next highest is the joint industrial council for the locality; the next highest the joint industrial council for the industry; and the highest we may conceive to be a joint council or parliament for all the industries of a nation. Such an organization of both employers and employees is fast on the road to realization in the United States. The Joint Union Principle Viewed in this light, then, the question of the re- lationship of the shop committee to the union appears to be a matter of relatively minor importance, for the reason that both the labor union and the employers' union are in process of changing their functions and of adjusting themselves to the new forms of joint union based on the principles laid down in the previous chapters as the principles of the shop committee. It is now, therefore, seen to be the fact that the shop com- mittee promotes unionization of the workers, just as it promotes unionization of the employers, but that it promotes this unionization for a fresh purpose and in a fresh way. Motive in human affairs is everything. The motive of the old labor union and of the old manu- facturers' association was primarily defensive, hence militant, and hence to some extent destructive. The motive of the new union is constructive. It looks toward cooperation instead of competition, towards strife only as a last resort. " Labor believes," writes W. L. MacKenzie King in the book already quoted in these pages, " that its exclusion from repre- sentation in the control of industry has led to vast injustice, and to the organization of business for profit alone; and that iSee Chapter I. 100 THE SHOP COMMITTEE it has occasioned at times the misuse of official power by the courts, the police, and military authorities in support of arbi- trary conduct on the part of corporations. Herein lies the fundamental cause of the warfare between capital and labor. Denied the right to cooperate with capital, labor competes with capital. Industrial life, instead of being in the nature of a partnership, becomes a sort of guerilla warfare in which capital seeks to increase profits at the expense of labor, and labor seeks to increase wages at the expense of capital. On the one side is a misunderstanding of producing costs; on the other side, a misunderstanding of the workers' needs and aspirations. Strikes and lockouts are the crude expression of the resentment which this mutual misunderstanding begets. Until labor and capital are both democratically represented in the control of the business carrying their respective invest- ments, this warfare and anarchy are certain to persist. The organization of business, its terminology and its spirit, must all change if industry is to fulfill its true mission and be made to reflect a real partnership." Except therefore to those minds which do not yet clearly see that the industrial world of to-day and of to-morrow is a different world from that of yesterday, the answer to the questions at the head of this chapter is this: The shop committee encourages unionism. It is not the unionism of the past, inadequate, imperfect, strug- gling sometimes blindly towards juster relations between capital and labor. The shop committee, meaning thereby the idea of joint shop, and industrial commit- tees and councils, is a substitute for trade unionism. It is a substitute which the unions and the employers will welcome. The shop committee, therefore, is not a device of capital to prevent unionism: its seeds lie deep in the soil of unionism, so deep that unionism of employees alone can not cause them to grow and flourish. The shop committee has in it the germ of the hope of the future of industrial peace and the cooperative commonwealth." APPENDIX SUPPLEMENTARY KEPORT ON WORKS COMMITTEES l In our first and second reports we have referred to the estab- lishment of works committees, representative of the manage- ment and of the workpeople, and appointed from within the works, as an essential part of the scheme of organization sug- gested to secure improved relations between employers and employed. The purpose of the present report is to deal more fully with the proposal to institute such committees. 2. Better relations between employers and their workpeople can best be arrived at by granting to the latter a greater share in the consideration of matters with which they are concerned. In every industry there are certain questions, such as rates of wages and hours of work, which should be settled by district or national agreement, and with any matter so settled no works committee should be allowed to interfere; but there are also many questions closely affecting daily life and comfort in, and the success of, the business, and affecting in no small de- gree efficiency of working, which are peculiar to the individual workshop or factory. The purpose of a works committee is to establish and maintain a system of cooperation in all these workshop matters. 3. We have throughout our recommendations proceeded upon the assumption that the greatest success is likely to be achieved by leaving to the representative bodies of employers and em- ployees in each industry the maximum degree of freedom to settle for themselves the precise form of council or committee which should be adopted, having regard in each case to the particular circumstances of the trade; and, in accordance with this principle, we refrain from indicating any definite form of constitution for the works committees. Our proposals as a whole assume the existence of organizations of both employers and employed and a frank and full recognition of such organ- i Supplementary to the Whitley report. Great Britain, Min- istry of Reconstruction. Committee on relations between em- ployers and employed. London, 1918. 101 102 THE SHOP COMMITTEE izatlons. Works committees established otherwise than in accordance with these principles could not be regarded as a part of the scheme we have recommended, and might indeed be a hindrance to the development of the new relations in in- dustry to which we look forward. We think the aim should be the complete and coherent organization of the trade on both sides, and works committees will be of value in so far as they contribute to such a result. 4. We are of opinion that the complete success of works committees necessarily depends largely upon the degree and efficiency of organization in the trade, and upon the extent to which the committees can be linked up, through organiza- tions that we have in mind, with the remainder of the scheme which we are proposing, viz., the district and national councils. We think it important to state that the success of the works committees would be very seriously interfered with if the idea existed that such committees were used, or likely to be used, by employers in opposition to trade-unionism. It is strongly felt that the setting up of works committees without the cooperation of the trade-unions and the employers' associations in the trade or branch of trade concerned would stand in the way of the improved industrial relationships which in these reports we are endeavoring to further. 5. In an industry where the workpeople are unorganized, or only very partially organized, there is a danger that works committees may be used, or thought to be used, in opposition to trade-unionism. It is important that such fears should be guarded against in the initiation of any scheme. We look upon successful works committees as the broad base of the industrial structure which we have recommended, and as the means of enlisting the interest of the workers in the success both of the industry to which they are attached and of the workshop or factory where so much of their life is spent. These committees should not, in constitution or methods or working, discourage trade organizations. 6. Works committees, in our opinion, should have regular meetings at fixed times, and, as a general rule, not less fre- quently than once a fortnight. They should always keep in the forefront the idea of constructive cooperation in the im- provement of the industry to which they belong. Suggestions of all kinds tending to improvement should be frankly wel- comed and freely discussed. Practical proposals should be examined from all points of view. There is an undeveloped asset of constructive ability valuable alike to the industry and to the State awaiting the means of realization ; prob- APPENDIX 103 lems, old and new, will find their solution in a frank partner- ship of knowledge, experience and good will. Works commit- tees would fail in their main purpose if they existed only to smooth over grievances. 7. We recognize that, from time to time, matters will arise which the management or the workmen consider to be ques- tions they cannot discuss in these joint meetings. When this occurs, we anticipate that nothing but good will come from the friendly statement of the reasons why the reservation is made. 8. We regard the successful development and utilization of works committees in any business on the basis recommended in this report as of equal importance with its commercial and scientific efficiency; and we think that in every case one of the partners or directors, or some other responsible representative of the management, would be well advised to devote a sub- stantial part of his time and thought to the good working and development of such a committee. 9. There has been some experience, both before the War and during the War, of the benefits of works committees, and we think it should be recommended most strongly to employers and employed that, in connection with the scheme for the estab- lishment of national and district industrial councils, they should examine this experience with a view to the institution of works committees on proper lines, in works where the conditions render their formation practicable. We have rec- ommended that the Ministry of Labor should prepare a sum- mary of the experience available with reference to works committees, both before and during the War, including infor- mation as to any rules or reports relating to such committees, and should issue a memorandum thereon for the guidance of employers and workpeople generally, and we understand that such a memorandum is now in course of preparation. 10. In order to insure uniform and common principles of action, it is essential that where national and district indus- trial councils exist the works committees should be in close touch with them, and the scheme for linking up works com- mittees with the councils should be considered and determined by the national councils. 11. We have considered it better not to attempt to indicate any specific form of works committees. Industrial establish- ments show such infinite variation in size, number of persons employed, multiplicity of departments, and other conditions, that the particular form of works committees must necessarily be adapted to the circumstances of each case. It would, there- 104 THE SHOP COMMITTEE fore, be impossible to formulate any satisfactory scheme which does not provide a large measure of elasticity. We are confident that the nature of the particular organiza- tion necessary for the various cases will be settled without difficulty by the exercise of good will on both sides. EXISTING SHOP COMMITTEE SYSTEMS As this book goes to press (April, 1919), many large and email industrial plants are putting in shop committee systems. It is therefore impossible to report a complete list of such sys- tems in existence in the United States at the present time. The following list is admittedly incomplete and is offered to the reader for whatever it may be worth. Plans installed by the National War Labor Board Bethlehem Steel Co., South Bethlehem, Pa. Corn Products Refining Co., four plants, Granite City, Ills., Argo, Ills., Pekin, Ills., and Edgewater, N. J. General Electric Co., two plants, Pittsfield, Mass., and Lynn, Mass. Maryland Pressed Steel Co., Hagerstown, Md. Mason Machine Works, Taunton, Mass. Munition Establishments at Bridgeport, Conn., over sixty in number. Philadelphia Rapid Transit Co., Philadelphia, Pa. Smith & Wesson Co., Springfield, Mass. Standard Wheel Co., Terre Haute, Ind. Waynesboro, Pa., machine shops. Willys-Overland Plant, Elyria, Ohio. In addition, the War Labor Board ordered shop committee systems in the Virginia Bridge and Iron Co., Roanoke, Va.; the Southern California Iron and Steel Co., Los Angeles, Calif. ; the Worthington Pump and Machinery Corporation and the Power and Mining Works, Cudahy, Wis.; the New York Cen- tral Iron Works, Inc., Hagerstown, Md. ; the Savage Arms Corporation, Utica, N. Y. ; and others. The plans first listed are apparently the most elaborate. Other Plans Colorado Fuel and Iron Co., Colorado. Standard Oil Co. of New Jersey, Bayonne, N. J. International Harvester Co., Chicago, Ills., several plants. Wm. Demnth & Co., Richmond Hill, N. Y. Packard Piano Co., Fort Wayne, Ind. APPENDIX 105 Bethlehem Shipbuilding Corporation, Sparrow's Point, Md. Printz-Biederman Co., Cleveland, O. Morris Herrmann & Co., Newark, N. J. Irving-Pitt Manufacturing Co., Kansas City, Mo. American Rolling Mills Co., Middletown, O. Browning Co., Cleveland, O. Acme Wire Co., New Haven, Conn. Dennison Manufacturing Co., Framingham, Mass. Dutches* Manufacturing Co., Poughkeepsie, N. Y. Globe Wernicke Co., Cincinnati, O. Hart Schaffner & Marx, Chicago, Ills. Hickey-Freeman Co., Rochester, N. Y. Hydraulic Pressed Steel Co., Cleveland, O. Jeffrey Mfg. Co., Kansas City, Mo. The Joseph & Feiss Co., Cleveland, O. Leeds Northrup Co., Philadelphia, Pa. Proctor and Gamble Co., Ivorydale, O. White Motor Co., Cleveland, 0. Carroll Foundry and Machine Co., Bucyrus, O. Hercules Powder Co., Kenvil, N. J. Sidney Blumenthal Co., Shelton, Conn. Morse Dry Dock Co., Brooklyn, N. Y. Garner Print Works, Wappinger Falls, N. Y. Sprague Electric Works, Bloomfield, N. J. Midvale Steel and Ordnance Co., and subsidiaries, Johns- town, Pa. Shipyards wherever covered by Government awards. Loyal Legion of Loggers and Lumbermen, Portland, Ore. ( headquarters ) . Inland Steel Co., Indiana Harbor, Ind. PRINTED IN THE UNITED STATES OF AMERICA following pages contain advertisements of books by the same author or on kindred subjects. History of Labor in the United States BY JOHN R. COMMONS Professor of Political Economy, University of Wisconsin, President American Economic Association. With collaborators In two Vols. 8, $6.50 " The fullest and most careful history of labor in the United States that has yet appeared." The New York Eve- ning Post. " It will doubtless be generally accepted as the standard history of American labor." The New York Tribune. " A monumental study . . . this probably is the final history of labor in our country during the centuries which imme- diately precede our own times." The New York Times. Labor and Administration BY JOHN R. COMMONS Cloth, i2mo, $J.6o " Straightforward and fearless examinations of fact." Boston Evening Transcript. " There is not a chapter which does not contain information which is practical and timely." San Francisco Chronicle. " Each chapter is a book in itself worthy of careful perusal. . . . Written in his unusual vivid and interesting style." Post Dispatch, St. Louis. An Introduction to the Study of Organized Labor in America BY GEORGE GORHAM GROAT Professor of Economics in the University of Vermont $J.90 "Those interested in the study of the labor movement in this country will find Professor Groat's book exceedingly helpful a singularly fair presentation of labor's problem." San Francisco Bulletin. " His volume is admirably adapted to giving the student a conception of the swiftly changing currents in the field of organized labor." New York Evening Post. THE MACMILLAN COMPANY Publishers 64-66 Fifth Avenue New York The Labor Market BY DON D. LESCOHIER Cloth, 12* The employment problem analyzed as a market problem, including a careful study of the factors which influence sup- ply and demand of labor in normal times and the effect of war upon the labor market. 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THE MACMILLAN COMPANY Publishers 64-66 Fifth Avenue New York New Ideals in Business BY IDA TARBELL Author of "History of the Standard Oil Company," "Tariff in Our Times," "Business of Being a Woman," etc. "Miss Tarbell has rendered a great service in bringing together within the covers of a single book, the actual results of hundreds of experiments along these lines . . . and she reports her findings specifically, giving places and names, so that the interested employer can check the facts and secure, if desired, additional information." Bellman, Minneapolis. " This is one of the few books of joyful information that are available to the reader to-day. . . . The movement for the employment of higher ideals in business is bigger than the average man realizes, and Miss Tarbell's book is a book to read." North American Review. 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