Labour Policy—False and True

Part I. the False Policy of Labour

CHAP.

I The Labour Party’s Constitution and Its Defects 21

Origin of the Labour Party—Reconstitution in 1918—The Trades Union Congress—The National Joint Council—The Parliamentary Labour Party—The Labour Party, a Class Party—The Party’s Want of Leadership.

II An Outline of the Labour Party’s General Policy 32

A National Minimum Standard of Living—Effective Personal Freedom—Socialization of Land and Industry—A Revolution in Public Finance—The Surplus Wealth for the Common Good—International Co-operation—No Protective Tariffs—Freedom of International Trade.

III The Labour Party’s Adoption of Socialism 40

1. Meaning of Socialism.—The Common Characteristics of all Socialistic Creeds—State Socialism—Syndicalism—National Guildism—Nationalization and Democratic Control.

IV The Labour Party’s Adoption of Socialism 46

2. History of the Alliance.—Labour’s Struggle for Political Power, 1825-1832—Labour’s Alliance with Revolutionary Socialism, 1832-1842—Labour’s Renunciation of Socialism, 1842-1885—The Era of Constitutional State Socialism, 1885-1905—The New Syndicalist Revolutionary Ferment of 1905—The Socialist Societies—The Social Democratic Federation—The Communist Party—The Fabian Society—The Independent Labour Party—The Socialist Labour Party—The Socialist Party of Great Britain—The National Guilds League.

V The Labour Party’s Adoption of Socialism 56

3. The Home Socialistic Programme.—Nationalization of the Means of Production, Distribution and Exchange—The Labour Addendum to the Whitley Report, 1918—The Industrial Programme of 1918—Land Nationalization—The Control of Industry—Labour’s Report to the Industrial Conference, 1919—Nationalization of the Coal Industry.

VI The Labour Party’s Adoption of Socialism 65

4. The International Socialistic Programme.—The First International—The Old Second International—The International Labour Charter of 1919—The New Second International—The Geneva Resolutions on Socialism of 1920—The Second International and Bolshevism—The Third or Moscow International.

VII The Labour Party’s Adoption of Socialism 76

5. Approval of Direct Action.—The Meaning and Qualities of Direct Action—Direct Action on the Clyde, 1916—Conversion of the Labour Party to Use of Direct Action—Establishment of the Council of Action—Setting-up of Local Soviets.

VIII The Labour Party’s Industrial and Land Policy 85

1. Details of the Proposals.—The Industries and Businesses to be Nationalized—Extension of Municipal Enterprise—Control of Capitalistic Industries and Businesses—Labour’s Agricultural Policy—Abolition of Landlordism—Councils for Agriculture—A Legal Minimum Agricultural Wage—Workers’ Control of Agriculture.

IX The Labour Party’s Industrial and Land Policy 92

2. A Criticism.—What Capitalism is—Our Debt to Capitalism—The Alleged Defects of Capitalism—Where Reform is Admittedly Needed—The Failure of Past Socialistic Experiments—Limits within which Nationalization is Practicable—The Different Schemes of Land Nationalization—The Taxing-out Scheme—The State Purchase Scheme—The Socialistic Confiscation Schemes—The Conceptions Underlying Each Scheme—The Disadvantages of State Ownership of Land.

X The Labour Party’s Policy for Unemployment 106

1. Work or Maintenance.—The Manchester Resolution of 1917—The Memorandum on War Aims, 1917—The Memorandum on Unemployment after the War, 1917—The London Resolution of 1918—The Prevention of Unemployment Bill, 1919—Labour’s Recommendations to the Industrial Conference, 1919—The Right Hon. A. Henderson’s Addendum—The Southport Resolution of 1919—The Resolution of September 1919—The Recommendations of the Joint Committee on Cost of Living, September 1920—Vote of Censure in Parliament, October 1920—Resolution of December 1920—Labour’s Refusal to Co-operate with the Government, 1921—Labour’s Statement of Policy for Unemployment, 1921—Manifesto on Unemployment, 1921.

XI The Labour Party’s Policy for Unemployment 124

2. Its Impracticability.—The Unsoundness of the Right to Work—The Failure of Work or Maintenance in France—Impossibility of Providing Suitable Work—Employment Depends Primarily on Demand—The Farm Colony Fiascos.

Part Ii. Government Labour Policy

XII War-time Labour Regulation and Its Effects 133

Co-operation between Employers and Unions at Beginning of War—The Unsettling Effect of Shortage of Labour—The “Treasury” Agreements of March, 1915—The Limitation of Employers’ Profits—Failure of Compulsory Arbitration—Effect of Relieving Employers of Responsibility for Labour Management—Increases of Wages and Prices—Relation of Wages to Cost of Living.

XIII Normal Government Labour Policy 142

Government Departments Concerned—Conciliation and Arbitration—Whitley Councils—Industry’s Own Conciliation Machinery—State Conciliation Machinery—Statutory Minimum Wages—Employment Exchanges—The Work of the Ministry of Labour.

XIV Government Labour Policy for the Coal Industry 155

Pre-war Conditions—The South Wales Strike of 1915—Government War-time Control—The Sankey Commission—The Mining Industry Act, 1920—The Strike of October 1920—The Strike of April 1921—The Failure of Part II of the Act of 1920—Royalties—Summary of Government Policy.

XV Government Labour Policy for Railways 164

Pre-war Conditions—Government War-time Control—The Wage Agreement of March 1919—The Railway Strike of September 1919—The Wage Agreement of March 1920—The Railways Act, 1921—The Railway Conciliation Machinery of 1921—Sectional Railway Councils—Railway Councils.

XVI Government Labour Policy for Agriculture 171

Government War-time Control—Government’s New Policy in 1921—The Establishment of Joint Conciliation Committees in England and Wales—The Work of the Conciliation Committees—Agriculture and Unemployment Insurance.

XVII Government Policy for Unemployment 175

1. State Unemployment Insurance.—The Present Scheme of 1920—Emergency Provisions—Temporary Act of March 1921—Temporary Act of July 1921—Temporary Provision for Dependents’ Act of November 1921—Temporary Act of April 1922—The Efficiency of the State Scheme 176

2. Construction Of Works of Public Utility.—Unemployment Grants Committee—The Scheme of 1920—The Extended Scheme of 1921 187

3. Expedited Road Schemes.—The 1920-21 Programme—The 1921-22 Programme—The Special Metropolitan Schemes—The Provincial Schemes—Conditions Attaching to Grants 191

4. Poor Law Relief.—Principles Governing Administration of Relief—Ascertainment of Applicant’s Income—Assistance to Guardians to Carry out Works—Funding of Cost of Relief—Help to Poorer Metropolitan Unions—Assistance to Guardians to Raise Loans 195

XVIII Government Policy for Unemployment 199

5. Guarantee of Loans.—The Trade Facilities Act, 1921—Policy of Advisory Committee—Difficulties of the Committee—Guarantees already Given 199

6. The Export Credits Scheme.—Specific Guarantees or Credits—General Guarantees or Credits 204

7. Other Miscellaneous Schemes.—Summary of National Expenditure 207

Part Iii. the True Labour Policy

XIX The Outlook of the Worker 211

Ignorance about Industry—Misconceptions as to Wages—Discontent and its Causes—Effect of Bad Environment—Fear of Unemployment—Dissatisfaction with Status in Industry—Belief in Agitation—Desire for Improvement—Low Conception of Work—Suspicion of Employers—The Worker and his Trade Union—The Worker and the Community.

XX Reform of Industry instead of Socialization 222

The Three Dominant Aspirations of the Workers—Can and Ought they to be Satisfied?—The Vagueness of Labour’s Scheme of Reconstruction—The Recent Change in Labour’s Proposals—Reform of Industry v. Reconstruction.

XXI The Human Relationships to be Rectified in Industry 230

Capital and the Administrative Staff—Capital and the Manual Workers—The Manual Workers inter se—The Administrative Staff and the Manual Workers—Industry and the Consuming Community—Industry and the Nation.

XXII The Right Relationship of Government to Industry 235

1. The Policy for the Present Depression.—Establishment of International Peace—Reduction of National Expenditure—Lowering of Taxation—Stabilizing the Exchanges—Revision of Financial Policy—Reconsideration of Reparations Policy—Inter-Allies Debts—Export Credits—Bringing down Costs of Production.

XXIII The Right Relationship of Government to Industry 246

2. The Normal Position Of Government in Relation to Industry.—Regulation of Factory Conditions—Conciliation and not Intervention—Protection of the Community—Wages in Unorganized Industries—Industrial Research—Need of a Real Ministry of Labour—Regulation of Combinations and Monopolies.

XXIV The Right Relationship between Employers and Employed 256

1. Contentment in Industry.—(a) Provision against Unemployment.—Equalization of Demand for Labour—Insurance against Unemployment—Need of a Job-Finding Organization—Insurance by State or Industry—State Insurance—Insurance by Industry or Industries—Reform of Present Outdoor Relief System—Unemployment Insurance by Firms.

XXV The Right Relationship between Employers and Employed 263

1. Contentment in Industry.—(b) Human Status of the Worker in Industry.—The Slowness of Ordinary Conciliation Machinery—The Whitley Councils Scheme—Joint National and District Industrial Councils—Works’ Committees—The Slow Progress of Works’ Committees—The Success of Works’ Committees on the Clyde—Executive Management a Matter for Employers.

XXVI The Right Relationship between Employers and Employed 271

1. Contentment in Industry.—(c) Remuneration of the Worker.—Uniform National Wages—Wage Relationships among the Workers—Wages and the Community—Are Higher Wages Practicable?—The Settlement of Wages—Systems of Remuneration—What is a Fair Wage?—Other Essentials to Industrial Contentment.

XXVII The Right Relationship between Employers and Employed 280

2. Co-operation in Industry.—The Workers’ Own Resort to Co-operation—The Marxian Argument against Co-operation—Some Workshop Applications—The Marxian Fallacy of the Origin of Capital—The Marxian Fallacy of Value—The Need of Sympathy in Workshop Life—The Need of Strict Justice—The Money Value of Sympathy in Industry—The Sympathetic Handling of Labour a Special Art—An Illustration of its Successful Application.

XXVIII The Right Relationship between Employers and Employed 290

3. Production in Industry.—The Importance of Production—What Production Depends on—The Workers’ Notion of the Secret Fund—“Passing it on”—The Workers’ Belief in Restricted Output—Introduction of Time- and Labour-Saving Appliances—Payment by Results—Subdivision and Simplification of Process—No “Niggling” at Prices.

XXIX The Right Relationship between Industry and the Community 303

The Formation of Sound Public Opinion—The Responsibility of the Consumer—The Duty of the Citizen.

Index 313

INTRODUCTION

Our great industrial difficulty, under modern conditions, is to combine human development with human work, and persuade people to be industrious. Formerly, men worked to benefit themselves; now, they are apt to refrain from working for fear they may benefit other persons. The injury to employers from such a course is evident; but the detriment to the workers themselves is less obvious, and the calamitous effect on the community is seldom realized. That difficulty is what we call “the Labour problem”; a knowledge of the principles on which it can best be solved is our chief national necessity.

This book strives to criticize the wrong, and indicate the right, solution. The test which it applies is whether a solution places the community before section or party, or is one designed primarily to advance sectarian interests, political or industrial, either avowedly, or speciously, under professions of solicitude for the public good. Nowadays, one has to look well below the surface of words, however distinguished may be their origin. There is little to choose between the revolutionary Socialist, whose solution consists in thrusting industrial democracy into supreme economic or political power through ruthless direct action and then socializing industry, and the constitutional anti-Socialist, who would solve the problem by pledges to inaugurate a new industrial Heaven and Earth, and other “ninepenny-for-fourpence” promises, which he has no honest conviction can be redeemed, and which, if he seriously considered, he would know can never be fulfilled. On the whole, during the last few years, the latter has proved the greater menace to the nation.

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