The New Year and Industry O NE of the most conspicuous
and pleasing movements of the past year has been the tentative feeling after peace in industry. The New Year starts hopefully, for there have been many friendly discussions since the Trades Union Congress at Edinburgh declared provi- sionally in favour of peace, and it is quite reasonable to hope that by the end of the year new conditions will have been established by consent in many of the most im- portant industries.
A Supplement on industrial relations, recently pub- lished by the Manchester Guardian, is a symposium by several leaders of Capital and Labour, and we have not read for a long time anything more informing or encour- aging. It is evident that the gap to be bridged is not nearly so wide as it used to be. One side or the other will have to bear disgrace if the bridge is not built. "The question of industrial peace," says Mr. Ramsay MacDonald, "is in reality the question of industrial co-operation, mutual confidence, and enduring goodwill. Is that an impossible ideal ? I do not believe that it is." He takes in general the view which is taken by all the other Labour contributors to the Supplement, that Labour has nothing to gain by obstructing or destroying Capitalism. Every Socialist who is an evolutionary, and not a revolutionary, agrees with this, for he sees that When the time comes--if it ever does—for a Labour Govern- ment to turn Britain into a Socialist State, the thing may be done if industry is a going concern, but cannot possibly be done if it is a heap of ruins. From the Socialist's point of view, again, the present tendency towards amalgama- tion and " rationalization "—as the new phrase is—is all to the good ; large unified concerns will 'be more ripe for his handling than small, scattered and discordant entities. The general willingness of Labour, however, need not be doubted. The only doubt is about the satisfaction of certain immediate claims which are the condition of collaboration. Mr. MacDonald very truly says that the schoolmaster has produced a new type of workman who looks upon a broader social landscape, is less docile, and has a new scale of values. He is a man" to be negotiated with, not to be ordered about."
Sir Josiah Stamp approaches relations through a study of prices. He points out, to begin with, that since December, 1924, the wholesale price index has fallen by nearly 20 per .cent., and that in the same period the cost of hying index has fallen by 18 per cent In three years, therefore, there has been an all-round rise in real wages of 18 per cent. " After all the vicissitudes in price levels before the War," he says, "there has not in modern times been a change of this magnitude in so short a period." He adds, however-, that gold relatively. to goods as a whole has decreased more than is consistent with a stable standard on which equitable contracts With organized Labour can be made. He sees that the United States has been through the same danger but has escaped it. She has been exceedingly prosperous while price levels have been falling so rapidly that the ordinary economist would have said that prosperity was impossible. • Another seemingly impossible feat which the United States has performed was to divide the goods market from the stock market and to have a substantial inflation in the stock market while there was deflation in the goods market. -He attributes these fortunate phenomena to. definite causes --the psychology of the worker who has,. mastered the secrets of output, increased purchasing power and productivity due to Prohibition, the "extraordinary 'spread of purchase by instalment,. and . the reduction Of taxation.
So far British trade has been recovering in spite.of. .01W falling price level, and .Sir Josiah therefore regards the future as full of promise, but he is careful, to. put in caveat—" I pray for the .sake of trade revival and for industrial relations that there may be a check to the price fall ! " All this means that an economic ,fact, may rise like a spectre between Capital and Labour, but that. if does not the two sides will almost certainly work :together as friends, "We are learning," says Sir Josiah, " to play the game together, to understand each other, and to join in drawing up the .best rules." As for the methods of drawing up the rules he is against general conferences and prefers negotiations in individual industries,,.. All Conferences which cover many. trades, he explains:, tend to agree upon a Highest Common Factor ; in 'other words, a vague generality. When such a generality. is presented to the workers in their particular industries they at Once have their own reservations to make. The generality iS further whittled down. In brief, Sir Josiah believes in working from the bottom upwards and not from the top downwards.
There is an apparent contradiction between this 100 the argument of Mr. W. M. Citrine, the General Secretary of the Trades Union Congress, who desires a general body for negotiations. He suggests that the National Federa- tion of Employers' Organizations should periodically meet the General Council of the Trades Union Congress. He would have councils, of course, for the individual industries, but he would haye a National Industrial. Council presiding over all. . The apparent contradiction disappears if we may suppose that Sir Josiah Stamp would not object to a presiding council as a culmination, though he evidently thinks that it would be of no use or importance at present.. "
Sir Alfred Mond restates his scheme, which :has,already been published in the Spectator. Our readers rp: member how he provides in his own works for personal contact, improved status, increased security, .participation in profits, and information about the progress of .business. Mr. Citrine probably has' Sir Alfred Mond's improvements in mind when he .raises an objection to " pront-A.axiqg and employee-sharing, schemes on an individnalistle basis." He remarks, however, that such .scheniestraight be placed on another, basis ; there, might be a eollectivist basis with . the trade unions acting as stewards. .a71 trustees.• Mr. Cathie says that the degree of opposition in. the trade unions to new processes, labour-saving machinery, and changes in workshop practices has been greatly exaggerated. As almost. everything depends upon the possibility of agreement about trade-union, pragic(ps, What Mr. Citrine says on this subject is very important, We will give his actual words :-- . • . .
".In general terms I am convinced that the, co-operation of the. tradp unions can be secured for the realization of a maxinnon„of efficiency in the employment of labour, the reduction. of costs of production and the elimination of waste in all branches Of PrOdnetion and distribution, provided that Adequate guarantees aie • given to ensure security of employment and in equitable share 41 the gains resulting from increased productivity and economies achieved as the process of ' rationalization ' goes on. Inevit4.ly, consideration must be given to the allegation that production restricted by ca'-cannY ' methods, demarcation, and :trade. union rules and customs. It is a reciprocal responsibility WIrtehAtle trade unions will not be afraid to facemben, titelaee. and fonetions in thy sphere of i,ndustrial administration have Pe911:-.K931(NAY defined."
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