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.

Policies for the solution of the Labour problem fall, broadly speaking, into two main categories. Those which insist upon, or imply, the reconstruction of industry by eliminating private enterprise and the capitalist. Of this type is the policy for which the Labour Party stands—the vague abstraction of “nationalization and democratic control.” All other policies are of the type which postulates, as essential to industrial progress, continuance of the so-called capitalistic organization of industry with, however, amendments and reforms of varying character. There is not always that clear-cut distinction. Many opponents of the Labour Party’s policy are advocates of the particular method of socializing industries known as municipalization, and even of the State running certain quasi-industrial ventures like the Post Office. Such overlapping and border-line cases must always occur. Human affairs can never wholly be regulated by precise formulae; were that possible, the world would be a dull place wherein to live.

If the Labour problem is to be solved, there must be more clear thinking, critical analysis, and decisive action on the part of the general public, who forget how vitally they are interested. With the object of placing before them its various elements in logical sequence and balanced perspective, I have, after much consideration, adopted the following scheme for this book: I set out in Part I the policy of the Labour Party for solution of the problem, and examine its fundamentals; next, I describe in Part II the Government’s Labour policy, so far as it has been declared, or evidenced in departmental practice, and consider it; then, lastly, I outline in Part III what, in amplification of the Government policy and in opposition to that of Labour, I conceive to be the true solution, and the one most calculated to promote the interests of the nation.

The Labour Party heralds itself as “the true national democratic party,” and as such claims to have formulated a national Labour policy, which, on the most superficial examination, exhibits many indications of purely sectarian objectives. My effort has been to appraise that policy critically but fairly, and see how far it is likely to advance the common welfare. This cannot be done unless one clearly appreciates the industrial root on to which the so-called national democratic party has recently been grafted, and from which it draws all its nurture and virility. Part I, therefore, explains in some detail the history and constitution of the Labour Party, and also the nature of the root, which, called by the most euphemistic name, is merely a particular species of Socialism. At the moment, the Labour Party does not seem unduly proud of its lineage, nor inordinately anxious to force upon the attention of the country its real socialistic aims. But it is essential that they should be laid bare, and this I endeavour to do in Part I, not by quotations from Labour leaders’ speeches, which express considerable difference in views, according to the forum, are not conspicuous by consistency, and are regarded as of no binding force by the Party. I give actual extracts from official documents published by the Labour Party, not generally known or accessible to the ordinary reader, and which state, if not with clarity, at any rate in its own language, the principles to which the Party declares that it has pledged the allegiance of all its followers.

The Labour Party arraigns before the bar of public opinion the present Government, and, indeed, all past “Capitalistic Governments,” and charges them with having neglected the interests of the workers, and of being devoid of any consistent Labour policy. Such an accusation, if sufficiently repeated, obtains a certain validity of currency, because the public know little of what has been really achieved under Government direction. I hold no brief for the present Coalition Government—I have often criticized its unfortunate opportunist action in regard to industrial matters, and do so freely in this book—but it is vital that the public should understand, if only as the foundation on which to build a new and amplified Labour policy, what it and former Governments have done, at the expense of the nation, for the workers of the country. This is the theme of Part II, and, as any future solution of our Labour difficulties must be materially influenced by the effect upon industry, upon employers and employed, of the emergency measures taken by Government for the regulation of Labour during the war, a chapter in Part II is devoted to this important matter.

In Part III I then proceed to the true purpose of the book—to indicate in broad outline what seems to me to be the only possible Labour policy for the future. It must satisfy, and be attuned to, the human qualities of the workers; Part III, therefore, starts with a description of the aspirations and sentiments of the workers as I found them in real life, and then proceeds to set out the principles that I think should govern the three greatest relationships in industry—that of the Government to industry—that between employers and employed—that between industry and the community.

In my treatment of the subject I have tried to avoid academic disquisition, and to produce a discussion fitting as closely as possible to the actual realities of workshop life, as they came within my practical experience, first, as an engineer, and, later, in discharging for Government the duties of many war-time offices involving the control of labour. My own ascertainment of facts is opposed in many respects to what has been stated by other writers, but some three thousand close and intimate conferences during the war with employers’ organizations, Trade Union executives, district and branch committees, together with many mass meetings—at all of which careful notes were taken—to say nothing of having one’s finger daily on the pulse of over one million men, supply me with a groundwork of facts sufficiently convincing at any rate to my own judgment.

That the Labour problem can eventually be solved with success by resolute perseverance along the line of principles suggested in Part III I feel certain. In the robust common sense of the British employer and the British workmen I have the utmost confidence. Of its ultimate triumph I am convinced. Time after time, during the war, when an industrial catastrophe seemed inevitable, I have seen common sense, acting on the national genius for compromise, serve to prevent both sides from going over the brink of the abyss that suddenly yawned. Along these principles a solution can be secured that will be stable and satisfactory alike to employers, the workers and the community. The first essential step to a solution is knowledge of the ingredients that make up the Labour problem, and there is no book, as far as I am aware, available to the general reader that states the matter plainly from a wide and practical experience quite as I have striven to do. That is my apology for publication of this book.

My criticisms, I trust, will leave no rancour; I have stated my views with directness, but in words I have weighed, and there is nothing behind them, for I am neither an employer nor a politician. I am but anxious to see a brotherly, just and nation-saving solution of the problem. Labour and I have had many a fierce tussle in the past, but I think we have learned to respect each other. No section of the community so revels in and honours straightforward and downright criticism as does Labour, provided it is really honest and the critic is sincere. It is something to be able to say, after so much official controversy as I have had, that on no occasion did we ever descend from discussing principles to personalities. I hope this book may not contain a single involuntary lapse from that standard, as I count myself fortunate, in spite of acute differences in economic views, to enjoy the friendship of many persons, both great and humble, in the Labour movement, a valued possession I would not lightly jeopardize. It is with principles, and principles only, that this book is concerned, and not with persons.