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It should be an absolute minimum upon which the conduct of industry should be based, just as there is a minimum of sanitary requirements. The increases which market fluctuations might permit should be granted for a lesser period, say not exceeding two years. The determination of wages would thus involve: first, the fixing of the Standard Living Wage for a trade; second, ascertaining the additions allowed by movements in the market; and, third, the application of these general rates to particular cases. The Standard Wage would not be as high as Mr. Pickard's ideal of 16s. a day for coalminers, but it would not fall as low as the 6s. per week which the sweated seamstress receives. It might be even somewhat under the wage now current in the given trade. These principles, therefore, should be set forth in the Act of Parliament to guide the Arbitration Boards in the determination of wages, and, in fact, in addition to their ordinary function of settling disputes referred to them, they should have the special duty of ascertaining and fixing Standard Rates of Wage. The terms of the Act would necessarily, to a certain degree, be lacking in precision, but they would still act as an effective guidance. The Admiralty finds no difficulty in obtaining through its own officials, or the Labor Department, the information on which to base a living wage for its employees.

The battle for a standard limit to the hours of labor is at present being fought out before Parliament; but there is no reason why the Arbitration Boards should not be utilized as legislative bodies on the lines already laid down in "Eight Hours by Law." Both in this question and in that of wages it should be a legal rule that regard should be had to uniformity of conditions throughout the trade. It is adhesion to this principle which forms the strength of the Joint Committees in the cotton trade.

Constitution and Powers of the Boards.

Generally speaking wherever Arbitration Boards have been created the District and not the Trade has been the unit. Despite the success with which this system has worked in New Zealand it is doubtful whether it is applicable to this country. The failure of voluntary District Boards and the comparative success of Trade Boards is certainly significant. In a country where industry is much localized, a District Board would inevitably in its composition be confined to the dominant industry, and would be unsuited to determine questions dealing with the unrepresented trades. It is essential, in order to ensure confidence in its decisions, that the members of a Board should be fully qualified to deal with all practical details, and the trade is therefore the best administrative unit for this country.

Again, bearing in mind the experience of the coal and cotton industries, it would be expedient to distinguish between "local" and "trade" questions. Local Boards should be established in the different centres of the trade, and a Trade Board should be established for the whole trade. To the Local Boards should be assigned full power to settle all questions arising out of the interpretation of a contract,

Fabian Tract No. 48.

or the application of a general rule to particular cases. In the settlement of new contracts Local Boards would first act as conciliators to facilitate collective bargaining between the two sides. If conciliation failed, the Board would give a decision, from which an appeal would lie to the Trade Board. In cases where the Board was unanimous it would probably be well to follow the precedent of the New Zealand Act of 1900 and allow no appeal. Besides dealing with appeals the Trade Boards would consider questions affecting the whole trade, such as an identical demand from several centres, Standard Living Wage, etc. It would on the whole be better to confine the Local Boards to interpretative cases, and the Trade Boards to the framing of trade rules; but while experience shows this to be possible in industries like the coal and cotton trades covering a number of competing centres, it would not be applicable to the building trades where the various localities are non-competing. In any case the Local Boards would only have to deal with market fluctuations above the Standard.

The Boards should be small in size, and each side should separately elect its own members. The suffrage might be given to all employers, but in the case of workmen only organized bodies of men should be dealt with. Trade Unions should be the labor electoral bodies, as they are responsible organizations which can be made to suffer for the default of their members. They should be corporate bodies for the purposes of this Act only, otherwise every petty-fogging solicitor would be encouraging men expelled from a society for blacklegging, etc., to bring actions for reinstatement or compensation for loss of friendly benefits. Members of Local Boards should reside continuously in their district during their term of office. The Trade Board might be elected by the members of the Local Boards, the two sides voting separately. At the first meeting of every Board a chairman should be chosen from outside. The Board of Trade should have power to settle all questions as to electoral areas, to nominate representatives where either side refused to take part in an election, and to nominate chairmen in cases of deadlock. The Boards should have full powers to conduct the necessary enquiries, inspect factories, appoint investigators, compel the attendance of witnesses, award costs, etc. The examination of complaints by experts, as in the cotton industry, should be in every way encouraged by the Board of Trade. The expenses of the Boards, including compensation to members for loss of time, should be borne by public funds.

Disputes should be referred to the Boards on the initiative either of an employer, or of an association of employers, or of a trade union, and no strike or lock-out after the reference should be permitted under pain of severe penalties. Parties could appear by their agents, but only by legal representatives with the consent of all concerned. Want of formality should not invalidate proceedings. Final awards should specify the persons upon whom, and the period, not exceeding two years, for which they are binding, and breach of an award should be made punishable by fine on the union or person concerned, as in New Zealand. Collective agreements made between parties volun

tarily could be registered before a Board, and thereby become enforceable in the same manner as awards, provided they contained no worse terms for the workmen than those already contained in an award relating to the whole trade.

Finally, it may be pointed out that local authorities can anticipate the action of Parliament by specifying schedules of wages to be paid by the contractors to whom they give out work, and by making it a condition of the contract that all disputes between employer and workmen shall be referred to arbitration.

The Position of Trade Unions.

Under such a law the position of trade unions would be much altered from what it is at present. The drain on their funds to resist strikes and lock-outs, and to fight the masters in their attempts to put down picketing and restrict the right of combination, would cease, and it would consequently be in their power to increase their out-of-work and other benefits. While a trade union which occupied a strong strategic position in the labor market would have to resign its power to exact the full remuneration which the law of supply and demand might give it, a weak union would not be crushed by the mere money-power of capital. Their status would be greatly raised by the conferring of powers to take their share in the legal determination of the wages and other conditions of labor. In fact this would be their chief function in the future. For the right to strike would be substituted the power to legislate. A strong attraction would thus be exerted on the eight millions of workers who are at present outside the unions, while the raising of the wage-standard among the lowest ranks would enable many hundreds of thousands to join their organizations who are at present prevented by their poverty. Finally the wage-depressing competition of non-unionists would be stopped by decisions, on the New Zealand model, that unionists should be preferred to non-unionists when equally qualified for employment.

CONSULT:

State Experiments in Australia and New Zealand, by the Hon. W. P. REEVES. (Grant Richards; 1902.)

Industrial Democracy, by S. and B. WEBB. (Longmans; 1902.) Preface to 1902 Edition.

"State Arbitration and the Minimum Wage in Australasia," by H. W. MACROSTY. (Political Science Quarterly, March, 1903.)

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