Evening star., 1938-09-11
Report on British Industrial
Disputes Machinery Reviewed
Organized Labor Factions in y. S. Shy at
Weakening Position-No Barriers Against
Adopting System.
BY John II. Cline.

portant lesson that is just beginning to be
dmly appreciated in this country: namely.
that harmonious industrial relations can
be secured only after the creation of strong
unions and strong employer associations
In England that fact was accepted after
efforts by unions and employers to weaken
each other had brought nothing but discord
and strife. On that point the Presidents
commission had this to say:
Labor and employer organizations have
been further strengthened by the FREQUENT
support and encouragement which they
render each other. Repeatedly EMPLOYERS
and representatives of organizations of en-
ployers stated to us that they preferred
strong unions to weak ones, because the
strong union is better able to secure the
fulflllment Of agreements and is better able
to bring competitors (of the employers) up
to the wage and hour standards of the
industry as set by the agreements. Re-
peatedly labor representatives stated to US
that they preferred strong employer organi-
cations to weak ones, because the stronger
the organization the fewer the units which
remain outside to undermine industry
Standards"
Employers in Strong Groups.
British employers in the major industries
are generally members of these industry
wide associations which negotiate collective
agreements with labor unions or with
groups or associations Of unions Formed
originally to combat the growth of unions,
they have become, as indicated by the
report, IAN integral part Of q collective bar
gaining system in which they respect one
another and mutually attribute real value
to the agreements and to the relations that
have been built up between them"
The practice of negotiating on an in
dustry-Wide basis, the commission also
found. has contributed to industrial peace
because the very gravity of the situation,
when differences arise in negotiations ap-
plying to the whole or to a considerable
portion of an industry, is such as to counsel
resort to peaceful means Of settlement"
Contrasting with prevailing conditions in
the United States, arrangements which
have been embodied in British agreements
for settling basic terms of employment, dis
putes and grievances have certain common
characteristics.
First, basic changes in wages and hours
are commonly negotiated by the national
unions. not with each employer individually,
but with associations Of employers
Second, if negotiations on those basic
subjects fail resort is generally had, either
by the terms of the agreement or by mutual
agreement at the time, to some impartial
agency. whose decision Is generally fol-
lowed, though the parties rarely bind them
selves in advance to follow it.
Third, when local dispute as to the
application or Interpretation Of an agree
ment, or a grievance. arises which cannot
be settled between the particular worker
and employer, it is then taken up by the
local union representative or Works Com
mittee. Failing of settlement there the
matter often is referred to a joint body
composed of representatives of district
employers association and of district union
representatives. If they can't settle the
dispute it is then submitted, under the
terms of the agreement, to a joint body
composed of representatives of the national
union and the employers association.
Preserves Appeal Principle.
The salient feature OF that procedure is
that it preserves the principle of referring
local disputes which cannot be settled
locally to employer and union representa-
tives who are not themselves directly con-
cerned with the controversy, and who can
hrif, 10 koo ~ to.
lively detached judgment. The commission
also felt that the time element involved was
short enough to satisfy the workers in
volved, but long enough to provide a cool
ing period.
The British system also provides for an
industrial court composed of representa-
tives of industry, labor and the public.
Unless otherwise agreed the courts awards
are not binding, but they are generally ac-
cepted.
In industries lacking satisfactory negoti-
ating machinery the Minister Of Labor is
empowered to appoint trade boards COM
posed at representatives Of employers, en-
ployes and the public, which have power
to fix minimum wages and to declare nor
AiA"A "oA AAAlS Aiou1S. AS d RUE, however,
trade boards are not set up until all means
of securing voluntary agreement on wages
and working conditions have been ex-
hausted
significant feature of the British indus
trial relations is the fact that the govern
ment will not now undertake any drastic
changes in economic policy without the
fullest consultation with both labor and
employer organizations.
Public Standing Enhanced.
Such consultation" the commission re-
ported, "had been general throughout the
World War, and we were informed that to-
day, before legislative or administrative ac-
ton is taken that may affect labor, its con-
tinuity of employment, its wages, hours,
cost of living, or working conditions, the
views of labor and employers alike are in
variably sought This governmental recog-
milton and utilization of the services Of
these organizations is thought to have
played part in enhancing their public
standing and increasing their sense of pub
lie obligation and the breadth of their
viewpoint"
The failure to give such full considera-
ton to the views of employers ind the pub
lie in this country when the Wagner Act
was passed undoubtedly accounts for some
of the friction which has surrounded the
enforcement of that statute and underlies
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