U.S. LABOR UNREST.

Wanganui Herald, Volume LIII, Issue 16035, 28 January 1920, Page 7

U.S. LABOR UNREST.

INTERESTING EXPERIMENTS

THE FIGHT FOE, UNION RECOGNITION.

America has not solved tic Labour problem as the cable news is no doubt telling you, says a correspondent of the Daily Mail, Writing from New York. Far from it. But some employers are making experiments which arc interesting. The tremendous difference between the American and the British Labour situation should always be borne in mind: England is solidly trade unionist as to her principal industries; here in America the so-called “open shop” largely predominates. A British Labour leader said to me the other day: “These Americans are mediaeval in their methods of handling Labour.” However, certain experiments are taking place which are worth while looking at. The Du Pont Company, the famous makers of explosives, has made a Labour record in the United States, This firm is more than a century old. Its profits during the last five years have been probably larger than those of any other dingle business in the world, reaching nearly sixty millions sterling. In tire whole of the hundred years of its history it has never had a serious strike among its employees. A few days ago I visited Wilmington, its headquarters, to learn the reason. There is no secret about the Du Pont plan. Its fundamental principles have always been the same—a consideration for the workers and a willingness to let them share in the prosperity of the owners.

The Du Pouts believe that the longer a man serves them the more he ought to receive, provided that he does his work properly. All who have been continuously employed for one year and have served satisfactorily receive a bonus of 5 per cent, on their regular pay. After two years they receive 10 per cent., after five years 15 per cent., and after ten years 20 per cent. This bonus is paid monthly by separate cheque, and is quite distinct from any individual increase that the man may earn.

The company insures the lives of its employees free after they have been in its service for six months or more. The anu unt of insurance is based on the length of service, starting at £2OO and rising to .£3OO. No part of the pi’eminm is charged to the men; no medical examination is required. The office boy is protected as much as the vicepresident, provided the vice-president has served as long as the office toy. Employees are encouraged to become stockholders; an additional 3 per cent, of interest is paid for five years on their investment. There is a profit-sharing bonus plan to reward in a special manner those who have contributed in an unusual degree to the success of the company, by their inventions, ability, industry, or loyalty. The value of the bonuses distributed between 1915 and 1918 was considerably over £3,200,000.

These bonus shares are not delivered outright. A bonus trustee is appointed. He opens an account with each beneficiary, charging him with the par value of hia stock and crediting him each month, beginning with. January of the year in which the award is made, with one-sixtieth of the amount. At the end of five years, provided the man has remained continuously in the company’s employ during that period, the stock certificates are handed over to him, fully paid and free of all restrictions.

NOT PHILANTHROPY. If you want to make the heads of Du Pont Company angry suggest to them that they are philanthropists. “Wo are not actuated by any false notion of philanthropy or paternalism,” they will tell you. “But we recognise that the success of our business depends very largely upon the loyalty existing among the members of our organisation.”

'They provide insurance, for example, because they know that it is 1 bad to hare an employee worrying about what will become of his family if he dies. They govern their works not by arbitrary decisions hut by conferences representing the workers and the management. As I said, there arc no strikes in the Du Pont works.

When- Mr John D. Rockefeller, junr,, travelled to Colorado for the purpose of discovering Dio real facts about the dispute between the mine managers and the Fuel and Iron Company, people realised that the relations between Capital and Labour had changed. The Fuel and Iron Company was a Standard. Oil concern. For years Colorado miners and managers had been at daggers drawn, and some of the most strenuous Labour laws were fought there. “Young Jawn” (the U.S. name for Mr Rockefeller, junr.) took a hand in the game, saw the men and their leaders, visited their homes, and drew up a plan which settled the Colorado troubles. Since then the Standard Oil Company itself has adopted this plan, and the results are noteworthy.

The Standard Oil Company has the reputation of being the most efficient capitalist organisation in America, if not in the world. When Standard Oil undertook Labour conciliation, even Die dullest employer recognised that this thing must be good business. The Industrial Representation Plan of the Standard Oil Company of New Jersey has now been enforced for a little over a year and a half. Mr Rockefeller recognised that the great weakness of modem industrialism; is the. fact that the real directors of capital do not as a rule get in genuine touch with tho workers.

i’HE CONFERENCE SYSTEM,

Standard Oil invited the employees oc three of its refineries to elect, by secret ballot, representatives who would meet the management in joint conference. As a result of their debates a mutual agreement was arranged. The foundation principles are that men should have some security of tenure and be protected by right of appeal and other means from injustice owing to the whims or prejudices of individual foremen or managers, and that the management and the employees should freely and regularly confer to solve everyday problems.

The employee with a grievance has the right to take it up, stage by stage, to the very heads of the company. °lf he cannot oome to a satisfactory arrangement with his foreman, the matter is considered in a joint conference of representatives of both sides.

If this fails to agree, an appeal may be made to an executive council at the works or to a general conference. If this fails to satisfy, officials from other plants can be called in who regard the matter independently. Questions of wages are considered by representatives of the company and of the jrorkers.

The wage decisions, however, have to he approved by the board of directors. There are joint conferences at least quarterly. In these gatherings there must never be moic representatives of the management than of the men to discuss ail matters of future interest. The Standard Oil Company of New Jersey has largely increased its employees since the industrial relationship began, has added one million pounds a year to its annual pay roll, and has successfully weathered the labour storms of the last year. “We were doubting Thomases, we delegates, a year ago,” said the leading representative of the employees recently. “But as meeting succeeded meeting and wo grow in strong confidence, matters were discussed with absolute unrestraint, and our requests were heard and in many cases granted. The men are confident now as never before of a .square deal.” The National Industrial Conference Board formed by the united national organisations of employers rn America is noteworthy. It is the business of this board to employ experts to study Labour problems, to tell the employers the truth, and to show them how to promote understanding and satisfactory relations with the men under them. It inquires into hours of work, wages, and all allied matters. It encourages the study of industrial economics by the offer of prises; it sends commissions to different countries to learn in them; it does work that in most lands is undertaken only by big Government departments. And it pays. But what the American worker-really wants is to have his trade union recognised, and it looks as if there 'will be bloodshed in America until the worker is given that recognition which he long enjoyed in Great Britain.