INDUSTRY AND POLITICS

Otago Daily Times, Issue 19199, 16 June 1924, Page 2

INDUSTRY AND POLITICS

By Professor R. A. Woodtiiorpe, M.A., F.S.S.

A PLEA FOR GOODWILL AND CO-OPERATION. VII. Written for the Otago Daily Times

THE TREND OF INDUSTRIAL DEVELOPMENT.—(Continued). THE WHITLEY COUNCILS IN OPERATION. 4. By the close of 1921 National Councils were in operation in 60 industries, including- nearly 4,000,000 workers. They had dealt with wages and conditions, as part of ordinary trade union corporate bargaining’, but it is interesting to observe how other questions have been covered—education, training, output, annual holidays, safety, unemployment insurance, provision ■tor old age. In fact, in the vast majority of cases the committee has grown out of the shops’ stewards, and the shops’ stewards have themselves developed from being mere guardians of right into being constructive administrators. Usually the decisions must ho unanimous, but there are cases where a majority vote is a<xfept.od as decisive. The proposals of the Whitley scheme were accepted by the Federation of British Industries and also by the British Trades Union Congress of 1917 on behalf of its millions of organised workers, and the congress of 1918 called on the British Government to apply the scheme to all departments of State service. It is interesting to notice how the scheme has been applied in (1) Government departments, (2) municipal services, (3) company-owned public utilities, and (4) in non-industrial departments of the civil service. Those who are interested in municipal matters would do well to study the scheme of the Joint Industrial Council of the Citv Corporation of the city of Bradford, England, with its 7000 employees, such as school teachers, clerks, etc., and employees in the various public services, such as tramways and the municipal gas, electricity, and waterworks, etc. We can see the working of a complete scheme in the English railways, and this scheme has authoritative sanction. There are three bodies-the Loral Departmental Committee, the Sectional Railway Council, and the Railway Council. The Local Departmental Committee is established at any station or centre where the number of regular employees in a department or in a group of grades exceeds 75. The committee consists of four representing the workers and four representing the railway companies. The objects are to provide a means of communication between the employees and the local officials, and to give (ho employees a wider interest in the conditions under which their work is performed. 'lhe range of subjects includes suggestions for a satisfactory arrangement of working hours, breaks, time-recording, questions of physical welfare, safety appliances and the like, holiday arrangements, publicity a-s regards rules, suggestions for improvement of working and of efficiency. The Sectional Council, with 12 representatives on each side, has powers as regards the local application of national agreements relating to standard salaries, wages, hours of duty, and conditions of services of the grades of employees in the scheme, suggestions as to operating, working, and kindred subjects; co-opera-lion with a view to increased business, greater efficiemw and economy; the wellbeing of the staff; recruitment and terms of service. The Railway Council, with 10 representatives on each side, deals with the correlation of the work of the Sectional Councils. All the representatives on the Local Departmental Committee must be in the employ of the Railway Company, hut, as regards the Sectional and the Railway Councils there may he a secretary from outside, and these secretaries may attend any meeting and may take part in the proceedings. There can he no doubt that the work of these organisations is of great, value. In England a number of works’ committees are reported to have marie valuable suggestions on questions of technique and the organisation of work. The most remarkable instance is a memorandum hy the shop stewards’ committee of the British Wes tinghouse Company on foundry management. which caused the company to rescind its decision to close down its foundry. Such committees have also brought forward tho inventions of individuals, and have seen that thev were duly considered and justly rewarded. 'The feeling that inventive power is allowed to go waste by nnreceptivo officials, and that production and earning are kept down by inefficient organisation, seems to be among tho strongest elements in the demand for “workers' control”; and there can be no doubt that in this respect there is a largo field for the acquisition by works committees of a positive and constructive part in tho government of industry. In the caso of tho Hans Renold Companies there is a further development. The workshop committee is a really administrative hodv. Jt is provided with the fullest confidential information and is in the full confidence of the directorate. It has evolved such an authority that its decisions arc accepted officially by all trade unions represented in the works. In adds, of course, to tho difficulty of management, but, as Mr Charles Renold says, “management is going to he far more difficult in future- in any event,” and he added that bv the Hans Renold scheme “various causes of friction had been removed hy tire activities of the committee and the ncouiroment by the worker of a knowledge of difficulties and of the technique of management.” Apart from the Council of the Social Unior and tho Welfare Committee, there is a third commitlce which I have described as tho Worksnop Committee. It is based upon the shop stewards, elected by the trade unionists. It elects its own chairman and secretary; is in close touch with the District Committee of the trade union; it has important duties in connection with a most promising profit-sharing scheme. It meets once a month and then sends a list of proposed questions for discussion to the management, and tho management sends a list in turn, and thou both sides meet. Thev# sometimes have foremen present, and liberal arrangements have been made to permit tho members of enmmilto through secretary to consult Individual workers. The whole scheme works admirably and seems to bo a full justification of tho confidence of the firm in its employees. The weak part of the scheme in England is the slow development of the district councils. Another difficulty is the lack of a general national council or trade parliament. Whether or not there should be one is still a subject for discussion. Such a council for all industry was proposed in 1919 by a very influential industrial conference which was summoned by the Government at a time of very serious unrest. This conference .appointed a joint committee of 69 members, and the report which was presented to the Prime Minister proposed, among other things,_ “the establishment of a permanent National Industrial Advisory Council of 400 members.” It was seriously nut forward hy a joint, committee of employers and trade union representatives, who were called together at a time of grave crisis. So far the industrial parliament, has not come into existence. In the meantime students of industrial organisation are examining carefully tho Gorman scheme and tho working of their trade parliament. THE NEED OF EDUCATED WORKERS AND ENLIGITPENED EMPLOYERS. There ca.n he no doubt that Great Britain is suffering from a want of thought with regard to the criticism of her organisations. A very competent observer, Mr Orton, states that "the Pottery and Wire Manufacturing Councils not only dealt with questions remitted to them by the British Government, but also instituted general inquiries into the whole financial position of their industries a task which must at least have resulted in extending the acquaintance of the workers’ representatives with the economic problems of the employers.” It cannot, however, lie said that the trade union delegates as a whole displayed any remarkable initiative in respect of such matters. One thing, however, is clear, that the general organisation of industry in Great Britain, imperfect though it may be, doea contain germs of a fully-develo|>ed scheme, adaptable to new conditions, but it demands a body of educated workers and also an enlightened leadership on the part of employers. It is interesting to notice the, remark made bv a distinguished American captain of industry in our present labour unrest. He says that it “is the most natural rosult of diverting the creative instinct of the workman from constructive into destructive channels. The repressive form of most of our industrial organisations is responsible for this state of affairs. The remedy lies in making our industrial organisation democratic so that the workman will have a voice in the determination of working conditions. Until wo have changed

flic autocratic ellaracter of our industries, which really dominate the political situation, it will be impossible to have a democratic society. By a democratic society I mean that form of social structure which encourages and aids the growth of the creative spirit in man, expressing itself through the trades and professions and the organised industries. 11l is I do not believe can be accomplished until the executive, legislative, and judicial functions of the government co-operate with the trades and professional associations and industrial organisations to give greater opportunity for the free expression of individuality. When this is done, we shall have an organisation of society based _ upon respect for the individual, which is the only true democracy.” When a workman is conscious of lus true part in the whole productive process, ho will become really interested 'in his work, and will begin to think and to plan how to improve the operating conditions. Modern industry, while it must conform to the natural laws inherent in the raw materials, is primarily concerned with individual creative effort. The creative power which sustains our civilisation resides in the originating, selecting, and adapting faculty of the human intellect. But this faculty of mental ereativeness is not confined to a few individuals who are in charge of our industries It is common to all mankind. This is easily /n<}n in the fact that the majority of onr industrial leaders have risen from the ranks. What right have we then to expect a high development of productive effort when we limit the intelligent handling of materials and forces to the few who autocratically claim it as their right to dominate the wills of others? —especially when their contact in the actual work, because of the increasing size of onr industrial organisations, is becoming constantly more remote. Of course wo must have leaders; otherwise there can be no organisation, but leading is vastly different from driving. “Teach, don’t boss,’’ is a sign to be seen posted in industrial plants quite frequently in America at the present time, and it is one of the healthy signs of the times. This is a lesson that we need to learn —that man is a free, self-determining, self-conscious being, who has the power to work with or against the natural law of evolution, (hat is. constructively or destructively. He must therefore have an opportunity of first-hand experimentation in industry. Otherwise there can lie no real intelligent industrial growth. The autocratic industrial methods of Germany, which largely helped to cause her notorious lack of inventive spirit in industry, has certainly taught us this. We need greatly to take this lesson to heart. The recent statement put forth by a Chamber of Commerce in a large city deserves to bo pondered. ( "Wo believe that that man renders the greatest social service who so co-operates in the organisation of industry as to afford to the largest number of men the greatest opportunity for selfdevelopment and the enjoyment by every man of those benefits which his own work adds to the wealth of civilisation.” ADVANTAGES OF THE WHITLEY SCHEME. 5. Tlie adoption of the Whitley scheme will (a) tend to remove many causes of friction and misunderstandings between the employers and the employed. A Works Committee can deal with a grievance at the source. Most of the difficulties arise through misunderstanding. If these difficulties can bo dealt with hy the persons most intimately connected in industry, they will be easily managed. Another advantage is that through their intimate touch with the management they will appreciate the point of view of those who nave to make rapid decisions and undertake great risks. At the same time, the management will understand more and more the point of view of the worker. All this will tend to remove misconceptions on either side, and I believe it will lead to a deeper sense of responsibility in the working of industry. (h) Probably the most important result cf the Whitley Scheme will be its -effect ou the mind and character of the worker. It will not only raise the status and develop the self-respect of the worker by enabling him to understand the inner difficulties of the business organisation, but it will help him to get a clear idea of the policy of the industry. In so far aa ho is able to form a fair judgment on the difficdt i '’s that are involved in the work in which he is engaged, he will become more, restrained and moderate in dealing with the wider questions of policy. The workers quite realise that many businesses are run on merely traditional lines, and that little progress is made in the industry. They will readily grasp the truth that Marshall has pointed out in his great book on “Industry and Trade”: “Progress has boon effected on the scientific side by students and business men; on the practical side by those business men who have bean alert to invent or adopt new ideas, i <’ e-o into practice, bearing the risks of loss, to im"-nm on them, and again to improve on them. At each step .• w ■non have weighed marrv complex considerations, one acainst another, and finally they have acted bold'v and freely, because that whie.h they risked was their own.” The workers will realise more and more the value of leadership in industry. The more they understand the problems of in-dn«t-v. science, accountancy, end business manacement. the greater will be their lo'-afiv. ami the more valuable the eon)r:i„q;on fhm-- -'-ill bring to the solution nf industrial problems. Pome of the ablest lenders in modern enterprise -re those who eome from the workers. There is nnt a muffle industry to-dnv that is not eonfrelled bv a man who started from the bottom. Tf is sliffiemut, tO menllou n-mps pf the l ol „ ,01a PVn-arA TTelrfon. Jd-a Tilermoe. T-n-d T/Ove-hulme and the late Lord (-•hanepPor of England. who was OOt, ashamed to s-.n that his fa* her entered Btr’-mibead w : th a en hb back and had been a private in the Brißdi Army.