The Washington times., 1919-09-14
PRESIDENT SEEKS
TRADE DEMOCRACY
CONTINUED dom Page one.)


ination. He thinks that a machinery
for the peaceful evolution OF indus-
trial economy can be established, in :
stead of leaving that evolution to be
worked out in the violence and the
waste OF strikes and economic dis
/ turbance- which always threaten to
turn evolution into revolution.
Mr.. Lauck's program for the con
ference follows:
An agreement to the fundamental
| principles which are to govern indus
/ trial relations, by the October confer
ence, or one to follow thereafter.
The creation OF National Labor
Board constituted by agreement be-
! tween employers and trade unions, to
interpret and apply principles and to
act as a court Of last resort in con-
! troversies involving principles or
| policies, involving wages or working
| conditions, or to have primary juris-
/ diction in such cases.
The establishment. by mutual
agreement between employers and
trade unions, Of similar boards in the
basic industries, consisting OF ma
tional, district, and local industrial
boards. These boards would have
complete and final Jurisdiction as to
wages or other working conditions
and discipline, appeals being allowed
from local and district to the Nation
al Industrial Board in each industry.
Appeals could only be taken to the
National Labor Board on the basis OF
violation OF principles. or in other
words, of the industrial code.
Boards On Production.
The establishment in each industry,
also by mutual agreement Of trade
unions and employers OF boards on
production. These would consist OF
shop, department, or industry boards.
Their functions would be, by joint
action, to formulate and agree upon
proper methods OF increasing produc-
tion and decreasing labor costs. Full
access would be given to all labor,
cost, and production records, and a
cost accountant would be assigned
to such committee, the principle to be
established that the wage earners
would participate proportionately
with management in the results Of
his cooperative activity to decrease
costs and accelerate production
By the establishment Of boards in
production, constituted equally Of en-
ployers and employees in individual es-
adjustments, genuine cooperation in
increasing output may be attained.
The employe will have a direct interest
In lowering costs, for It will mean an
increase in his regular earnings for
any given pay period. while, on the
other hand by his representative on
the board Of production, he will be
protected against any excessive speed
ing up, or any measures for accel-
Grating production which are opposed
to his permanent welfare.
The employer, on the other hand,
will have the assurance that a con-
slant effort is being made to reduce
costs and will be freed from his for
mer fear of arbitrary and misguided
restrictions on output This plan
would really constitute eo-operation
and profit-sharing in lower costs at
the source. Profit sharing. as it has
been advocated, has usually been un-
satisfactory to employees. because re-
turns are indeteFminate and long de-
ferred, and because the amount of
profits in which the workers may
participate Is affected by forces over
which the worker has no. control.
such as managerial ability, the policy
Of the corporation, and other factors. |
Ideal Arrangement.
The ideal arrangement. according to ,
Mr.. Lauck, in organizing the national
labor board as well as the Industrial |
boards would be to limit the mem |
bership to equal representation Of
capital and labor, and have represen-
tatives from each side alternate as
chairman. This policy has been
adopted in the United States Railway
Administration, where labor has been
organized for many years, and where
railway managers and representatives |
of the brotherhoods have become ac-
customed to dealing directly with
each other.
The same condition was true OF
the conciliation boards in Great Brit
ain prior to the war. In the United
States, however, labor has not been
SO extensively organized as in Great