RECONSTRUCTION EXPERIMENTS.

Northern Advocate, 25 September 1919, Page 6

RECONSTRUCTION EXPERIMENTS.

MODERN INDUSTRY. EMPLOYEES AS EMPLOYERS. Experiments of large employers in America in giving employees a voice in the management of their enterprises (luring the last three months have produced various results, in one case a strike, in others avalanches of demands for increased wages, and in some substantial benefits for the concerns adopting it, according to a survey of cooperative industrial plans by the Nalional Association of Corporation Schools, in which 133 large industrial corporations have membership. The survey, which included several hundred industrial plants, shows that a considerable number of the large concerns have adopted some plan of giving employees representation in tho management, especially on questions of wages, hours, and working conditions. The plans adopted are of three general types, known as the "Works Committee" plan, the "Industrial Council" plan, and the "House and Senate" plan, each accomplishing about the same results tinder different methods of operation. None of the plans yet adopted, according to the association, involved the appointment of workers to boards of directors. Some concerns expect, it is stated, to place representatives selected by employees on the board of directors if present steps in the direction of co-operation prove satisfactory. To be successful, it is stated, the co-operative policy calls for acceptance by employees of the responsibility for increasing production in return for larger pay, and a share in tho management. LABOUR CRITICISM. Co-operative plans with this purpose have been attacked by Samuel Gompers and other Labour leaders on the ground that the tendency of co-operative projects breaks up the solidarity of labour by making the labour unit the group of employees of a single concern, rather than all men engaged in a given craft or occupation. On this subject the association says: — The belief expressed by Judge Gary, chairman of the United States Steel Corporation, that efforts to unionise the employees in the various subsidiary companies of that corporation would not succeed because the men realise that they are better off under 'open shop' conditions, than they would be under the control of unions is assumed by many other industrial executives. In fact, that present effort is not only to secure employees of co-operative effort in management, with proportionate responsibility, but also to provide conditions whereby the workers of the large industrial institutions will receive a greater degree of advantage than would be possible under a union's control and direction." EFFECTS OF EMPLOYEES' VOTE. The experience of some of the firms adopting co-operative plans is stated as follows: — "In one of the largest industrial institutions, where the industrial council plan has been mado effective, the immediate result was a request on the part of the employees' representatives in the industrial council for an increase in wages and shorter working hours. This was followed by an avalanche of requests from individual employees for increases in wages. When it was pointed out to the representatives of the employees by the members of the industrial council representing the stockholders and management, that such action would necessarily involve an increase in the cost of the product of the company, and that this increase would bring the selling price of the company's product to a figure considerably high-

or than the selling price of their competitors, the request for shorter hours and increased wages was temporarily, at least, withdrawn, lv other words, the immediate results of giving a voice to employees thiough delegated representatives were wholly selfish and not based upon investigation as to conditions, and were made without any assumption of responsibility whatsoever. STRIKES AND SETTLEMENTS. " In at least three large industrial institutions where some of these plans have been introduced, strikes have followed within a period of one month. In other companies the plans have worked well, although the period of trial is of too short duration to admit of any conclusions as to what will be the final results and as to what definite attitude the representatives of employees may ultimately take. HOME-OWNING BENEFITS. "The asumption may be safely made, however, that employees of industrial corporations will continue to demand a voice in those problems of management which affect wages, working conditions, and hours of labour. Whether or not the representatives of the workers in industrial councils will assume a fair portion of responsibility remains to be determined. So long as shorter hours and higher wages can be secured through strikes it is probable that the new co-operative plans will make slow progress, but when the time arrives, as it inevitably, must arrive, that strikes are no longer successful, and when the public will demand to be heard in the settlement of wage disputes, it is believed that more constructive progress can be made in the working out of co-operative management, and that the workers will then assume a more definite responsibility for production. It is obvious that responsibility must be assumed by the workers, if the industries of the United States are to be placed upon a more democratic or co-operative basis. Efforts to introduce better training systems and more scientific employment methods are meeting with no opposition, and are progressing steadily. Also, efforts to encourage thrift, including home-owning, group insurance, and sick and death benefit features, are meeting with encouragement."