Part 4 (1/2)
Steps may be taken which it is impossible to recall. To insist on an appeal from ”Philip drunk to Philip sober” is not to deprive him of his real liberty. It is a safeguard, not an infringement of the principles of true democracy, to provide some body of men of experience who can exercise an independent judgment, and who, when some violent change is proposed, have the right and the duty to reply in effect:
Old things may not be therefore true, Oh brother men, nor yet the new; Ah, still awhile the old thought retain, And yet consider it again.
Such a justification, such a statement of the function of a Second Chamber, not directly elected, may provoke a histrionic smile among extreme advocates of so-called popular rights, but has never evoked an argument which can displace it as based on sound reason and common sense. There are some changes, too, which ought not to be made without a specific appeal to the people on that particular issue. To make them as part of the programme, as one plank in the platform of a party dominant for the moment, is not to execute but to evade the real will of the nation. We know by experience how the vote of a popular representative a.s.sembly may represent the opinion of ”a bare majority of a bare majority;” conceivably anything over one-eighth of the nation. A committee is elected by some eager partisans supposed to represent a party. That party perhaps represents a bare majority of the const.i.tuency. The caucus chooses a candidate whose views suit a bare majority of its members who hold the most extreme views. He and others go to Parliament as representing one party, and a majority of such members decides what policy shall be adopted. Party discipline compels the acquiescence of the rest. The machine is cleverly constructed to make the will of certain party managers of mere sections of the const.i.tuencies the dominant factor. No wonder that they denounce Proportional Representation as a dangerous fad. Undoubtedly the will of the people must prevail, but the exercise of that will should depend on and be the result of their own deliberate judgment. Whether what is done is a blessing or curse depends not on whether it is the act of an autocrat, of an aristocracy, or of a democracy, but on the character of the act and the spirit which prompts it. A great audience in London recently heard the true position summed up in few words--I quote Dr.
Campbell Morgan from memory--”It is said we want to make the world safe for democracy. What we really need is to make democracy safe for the world.”
_C.--INDUSTRIAL PEACE_
CHAPTER X
INDUSTRIAL COUNCILS
_To secure industrial peace on terms just and honourable to both sides would be to double the national strength whether in industry or citizens.h.i.+p._--MEMORANDUM OF THE GARTON FOUNDATION.
Under this head it will be convenient to treat not only of the steps to be taken to prevent disputes or secure their settlement by peaceful means, and to promote a more hearty co-operation of employer and employed, but also of various other questions affecting industry, such, for example, as increased production and increased saving. Without industrial peace there will be no industrial or commercial prosperity, and without a fair amount of prosperity it will be very difficult if not impossible to preserve industrial peace. As the War proceeds these questions become more and more urgent; after it, they will be more serious and more pressing than ever. Already the need for taking certain steps at once and for preparing a future policy is recognised. Anyone who wishes to have before him a clear statement of the industrial situation and of the effects of the War upon it, cannot do better than read, and read with care, the revised memorandum prepared under the auspices of the Garton Foundation and published in October, 1916.
Singularly impartial and judicious, it does not gloss over the difficulties and perils which must be faced, but throughout there is a note of hopefulness--an antic.i.p.ation of a better state of things--if while ”the forces of change are visibly at work we do not allow them to hurry us blindly with them,” but ”direct them along the path of ordered progress.” Some of the specific remedies suggested, of the proposals adumbrated, may be open to criticism--criticism is, indeed, invited--but it is evident that nothing is suggested that has not been the subject of careful consideration of the facts. Some of the proposals have already been put into fairly definite form in the Whitley Report, and have received the approval of the Government. Industrial Councils are to be established. The object of them will be to consider ”constructive measures for the improvement of industrial conditions and the increase of efficiency.” They will not be confined to specific points of dispute.
They are to be established in industries which are ”highly organised,”
where the employer and employed already possess some definite a.s.sociation or union which represents them respectively. There are to be national, district, and workshop councils set up. Their object differs from that of the Conciliation Boards for Arbitration or the Trade Boards established to settle some specific question such as a minimum wage to be paid, or some question that has given rise to a dispute between employers and employed. Such a mode of settlement is a great advance on leaving differences to be settled by an industrial war--a strike or lock-out. The Boards will still be needed, just as arbitration tribunals will be required to settle specific disputes between nations. The aim in both cases is to subst.i.tute arbitration for war (or its equivalent) or threats of war. Something more is aimed at in the establishment of Industrial Councils. They contemplate a ”continuous and constructive co-operation of Capital and Management on the one hand and Labour on the other.” They are not tribunals for the settlement of disputes which have arisen, but joint committees which can discuss and propose methods of dealing with any question affecting working-conditions generally, e.g., the introduction of new machinery and its effect on employment and the status as well as the wages of the workpeople, and even its economic effect generally. Suggestions can be made as to changes which may ”increase output or economise effort” and eliminate waste. The effect of any alterations on the health of those engaged in any industry would be within their purview. The idea is to promote co-operation, to make all recognise certain common interests, not merely to adjust competing claims. In international affairs the nearest a.n.a.logy would be a League of Nations for promoting the common interest of all. While, of course, the main object of such a league is common action to prevent breaches of the international peace by restraining wrong-doers, it should not be the sole object. In the case of Industrial Councils the object is to promote the general welfare of all engaged in the trade and to increase productive efficiency, as well as to secure fair terms between the parties and prevent disputes. If such a Council has been established for any industry Government Departments will consult it, and not the Trade Board, on any questions affecting that industry; but the const.i.tution of the Council should make provision by which Trade Boards can be consulted. Roughly speaking, ”the functions of the Trade Board will be called into operation mainly in the case of the less organised trades, and the highly organised trades will be the sphere of the Industrial Councils.” These, in their most developed form, will be national, district, and local.
A memorandum which has official sanction states that the chief duty of the Trade Boards, on the other hand, is to fix minimum rates of wages which can be imposed by law. They are needed primarily to insure that in trades where the workers have no official organisation to guard their interest a living wage shall be secured for all. They are statutory bodies set up under an Act of Parliament just pa.s.sed, and will be connected with the Ministry of Labour, by which their members are largely nominated. The work of such Boards is being extended.
Detailed discussion of the character of the work which may be expected to be done by the councils and of its probable effects would be beyond the scope of this volume, and would require special knowledge of the industries concerned. It will vary in different industries and in different places. In some, success may be confidently expected, in others there will probably be failures. The aim of the proposal is certainly one to be desired, and the method for attaining it promises many beneficial results. There appear to be some dangers involved which it may be well to consider. Useful work may be hindered owing to, first, the time and attention required for the meetings and discussions of the various councils, and the risk that clever and fluent talkers may prolong debate and generate friction and may perhaps exercise an undue influence. Probably this will not be found a serious danger. Experience over a considerable district shows that those who are chosen by the Trade Unions to represent them are usually clear-headed and businesslike men, who grasp a point quickly and, while carefully guarding the interests of those whom they represent, are fair-minded and ready to do all they can to promote the national interest also. Secondly, there may be a tendency to interfere too much in questions of management, even where full and detailed knowledge of trade conditions of the moment and of possible appliances that may be used is required, and prompt action may be necessary. A man steering a boat in a storm would hardly succeed if he had to consult a committee before moving the helm. The object of the councils would not be to undertake the general management of the business, but should be directed to the relation of workers and management, to secure efficiency and greater production, a fair partic.i.p.ation in and distribution of the benefits derived from success, and wholesome conditions for those engaged in the work, and to avoid dispute by agreeing action beforehand wherever possible. Thirdly, in this as in most other cases where power is given to representatives of organised bodies, there is a risk of undue interference with the liberty of those who do not belong to them or who are in a minority. A dead level of uniformity may be secured, experiments and new lines of action by enterprising and original minds may be interfered with. The old problem of reconciling high organisation and corporate action with individual liberty may present itself in an acute form.
Already before the War the tendency to crush out individuality was becoming stronger and stronger, the private firms of manufacturers were being squeezed out by highly organised combines, or tempted by high prices offered to hand over their businesses to them. In banking, similarly, the absorption and amalgamation of smaller banks has been going on with startling rapidity. The personal relations.h.i.+p between the customer and the banker, who would grant loans and overdrafts because he knew the character and position of the borrower in each case, will no longer exist. The business was safe enough when the manager of a country bank probably knew whether a customer's butcher's bills were becoming excessive. Now everything must be referred to London for decision according to some fixed general rule. The convenience and the accommodation of the man with a small account count for very little. A more serious question is the effect which these amalgamations may have on the relations between bankers and those who are engaged in manufacturing business.
The old personal relations.h.i.+p between the mill-owner and his employees, when his garden adjoined the mill yard, when they spoke of him by his Christian name, and he knew their family affairs and was ready to help in time of difficulty and distress and to take a lead in any local effort or support any local charity, has been rapidly disappearing.
There still are, however, many employers to whom the happiness and welfare of their workpeople is a matter of deepest concern. They have a human interest in them, and take a pride in improving the conditions of their life. They have other aims than simply securing as big a dividend as possible for the eager shareholders of a huge combine. It is, no doubt, usually large employers of labour who are thus able and willing to make provision for the welfare of the people in their employ. Some have established libraries and reading-rooms, and have provided cla.s.ses for giving instruction likely to be useful to the boys and young men engaged in their works. Conditions of labour would be greatly improved if the example of the best firms in such matters were generally followed.
The more complete organisation of trades under powerful councils may tend to a virtual monopoly being obtained by a limited number of large and influential firms, and the result may be prejudicial to the consumer by limiting compet.i.tion. That is not certainly the object, but it may be an incidental effect of the organisation which is needed for full development of the system of councils. In some cases State support and control acting in conjunction with private firms of great influence is to be introduced to unify an industry under one management. Support and control may possibly be necessary in some cases, but the extension of such methods should be jealously watched. In the manufacture of dyes, for example, it seems that the Government and a very powerful manufacturing firm or combination are arranging to act together. Those outside this combination will have no chance of competing. In this particular case the scheme may be useful, but careful provision is necessary to protect customers for the commodities produced. It may become a very serious thing for manufacturers of piece goods when struggling to maintain their position in the world markets, and the slightest addition to cost of production may close a market to them, if they find that they cannot purchase the dyes they require in the cheapest market, or those who dye goods for them must increase their charges, because one organisation can fix prices, and import from abroad is prohibited in order to protect a special home industry.
Possibly it may be necessary for a time to give such protection to certain industries, involving a preliminary expenditure of a large capital; but the fact that the dye industry had gone from England to Germany was, in the opinion of many, due not so much to free and open compet.i.tion as to the circ.u.mstances that (1) the German producers paid more attention to systematic chemical research bearing on the industry, and (2) that our absurd patent law operated to throttle English production. The founder of the successful firm of Levinstein, Limited, Mr. Ivan Levinstein, seeing by his own experience how our patent laws prevented the development of the dye industry in England, devoted years of work to obtain an alteration of these laws, but with only partial success. The Government, after very long delays, attempted to deal with the matter, but it is not yet satisfactorily settled. A Bill on the subject is now before Parliament. A list can be given of more than a dozen cases--there may have been many others--in which the Badische-Anilin Fabrik was plaintiff against firms in this country. The result was to aid the rapid development of the huge works near Mannheim now used to manufacture poisonous gases, while the works in this country were crippled. Strangely enough, it was an English chemist (Sir W.
Perkin) who made the discoveries which led to the development of this industry; but it is generally possible where compet.i.tion is keen to take out subsidiary patents for small improvements which really enable the subsequent patentee to command the market. Sometimes the root invention for some reason cannot be made the subject of a valid patent, or the patent for it expires before its full commercial value has been realised, and the minor improvements give the holder of patents for them a virtual monopoly.
All along the line, too, the big firm is favoured at the expense of the smaller. The position of the small tradesman is often a very hard one.
The shopkeeper in a village or small town near the metropolis pays heavy rates for the upkeep of roads which are torn to pieces by the heavy motors of the great distributing firms delivering goods to those who would otherwise be his customers, perhaps with petrol specially exempted from taxation. The firm which by widespread advertis.e.m.e.nts can induce people to buy an article with some familiar name attached, reaps a gigantic fortune, while the man who makes the same article and cannot spend money on advertis.e.m.e.nt gains a mere pittance. The advertis.e.m.e.nts which disfigure the country are not taxed, as in other countries, and the issue of advertising circulars has been subsidised by the Post Office, which delivered them at a rate lower than that charged for delivery of the letters, or even the postcards, of the poorest, though the trouble involved is the same. The patent laws, again, have been exploited to protect the large manufacturer, who fences some form of production by taking out a string of patents often where there is no meritorious invention at all. The rubbishy specifications are flourished in the face of a poor compet.i.tor, and form a basis for threats which a man who is not wealthy dare not resist, knowing the heavy cost of fighting any patent action whether successful or not. ”To him that hath shall be given” ought not to be a maxim to guide legislators or any department of Government.
To return from this digression. One great advantage of the councils would be that those who represent the workmen upon them will probably be men who are actually engaged in manual work in the trades concerned, or have been so engaged, and who will look at each question practically.
The agitator who lives on grievances and disputes, the politician ”on the make,” or the well-meaning and half-informed enthusiast from outside, is not likely to find a place on councils whose object it is to see how interests which investors, managers, and workmen have in common can best be promoted, and how the share of each in the work and its profits can be more fairly a.s.signed and distributed instead of attention being concentrated on matters in which their interests seem to be in conflict.
Another difficulty of more direct importance with regard to the proposed councils is already arising. The relative powers and position of the shop stewards chosen by the men in each works and of the unions representing industry as a whole in any district have to be settled.
There are also overlapping unions competing for influence and support, and sometimes doing so by making excessive demands. The events of the next few months may lead either to an accentuation or to a partial solution of these questions which are perhaps the most serious at present affecting industrial peace. It is better not to antic.i.p.ate.