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will need to be considered before it can be decided definitely how far any of our proposals can be applied in particular instances, and we have refrained from attempting to suggest any exact degree of organisation which would be requisite before a particular proposal could be applied. We think, however, that the suggestion we have made in the preceding paragraph to confer upon a National Industrial Council the powers of a Trade Board should be adopted only in those cases in which the Minister of Labour is satisfied that the Council represents a substantial majority of the industry concerned.

17. We are of opinion that most of the chief industries of the country could be brought under one or other of the schemes contained in this and the preceding Report. There would then be broadly two classes of industries in the country-industries with Industrial Councils and industries with Trade Boards.

18. In the former group the National Industrial Councils would be constituted either in the manner we have indicated in our first Report, carrying with them District Councils and Works Committees, or on the lines suggested in the present Report, i. e., each Council coming within the scope of this Report having associated with it one, or two, official representatives to act in an advisory capacity and as a link with the Government, in addition to the representatives of the employers and employed.

19. It should be noted that in the case of industries in which there is a National Industrial Council, Trade Boards might, in some instances, be associated with the Council in order to determine wages and hours, &c. in certain sections or areas. It is possible that in some allied trades, really forming part of the same industry, both sets of proposals might, in the first instance, be in operation side by side, one trade having its Industrial Council and the other its Trade Board. Where these circumstances obtain, we anticipate that the Trade Board would be a stepping stone to the full Industrial Council status.

20. It may be useful to present a brief outline of the proposals which we have so far put forward:(a) In the more highly organised industries (Group A.) we

propose a triple organisation of national, district, and

workshop bodies, as outlined in our first Report. (b) In industries where there are representative associations

of employers and employed, which, however, do not possess the authority of those in Group A. industries,

or

we propose that the triple organisation should be modified by attaching to each National Industrial Council one or at most two representatives of the Ministry of

Labour to act in an advisory capacity. (c) In industries in both Groups A. and B., we propose that

unorganised areas or branches of an industry should be provided, on the application of the National Industrial Council and with the approval of the Ministry of Labour, with Trade Boards for such areas branches, the Trade Boards being linked with the In

dustrial Council. (d) In industries having no adequate organisation of em

ployers or employed, we recommend that Trade Boards should be continued or established, and that these should, with the approval of the Ministry of Labour, be enabled to formulate a scheme for an Industrial Council, which might include in an advisory capacity

the “appointed members” of the Trade Board. 21. It will be observed that the policy we recommend is based upon organisation on the part of both employers and employed. Where this is adequate, as in Group A. industries, there is no need of external assistance. In Group B. industries, we think that the organisations concerned would be glad to have the services of an official representative who would act as adviser and as a link with the Government. In unorganised sections of both groups of industries we believe that a larger measure of Government assistance will be both desirable and acceptable, and we have therefore suggested the adoption of the machinery of the Trade Boards Act in this connection. In Group C. industries we think that organisation will be encouraged by the use of the powers under the Trade Boards Act, and where National Industrial Councils are set up we recommend that the "appointed members” of the Trade Board should act on the Councils in an advisory capacity. Briefly, our proposals are that the extent of State assistance should vary inversely with the degree of organisation in industries.

22. We do not, however, regard Government assistance as an alternative to the organisation of employers and employed. On the contrary, we regard it as a means of furthering the growth and development of such organisation.

23. We think it advisable in this connection to repeat the following paragraph from our former Report :

"It may be desirable to state here our considered opinion that an essential condition of securing a permanent improvement in the relations between employers and employed is that there should be adequate organisation on the part of both employers and workpeople. The proposals outlined for joint co-operation throughout the several industries depend for their ultimate success upon there being such organisation on both sides; and such organisation is necessary also to provide means whereby the arrangements and agreements made for the industry may be effectively carried out."

24. In considering the scope of the matters referred to us we have formed the opinion that the expression "employers and workmen” in our reference covers State and Municipal authorities and persons employed by them. Accordingly we recommend that such authorities and their workpeople should take into consideration the proposals made in this and in our first Report, with a view to determining how far such proposals can suitably be adopted in their case.

We understand that the Ministry of Labour has up to the present circulated our first Report only to employers' and workpeople's associations in the ordinary private industries. think, however, that both it and the present Report should also be brought to the notice of State Departments and Municipal Authorities employing Labour.

25. The proposals we have set forth above do not require legislation except on three points, namely, to provide

(1) That the Trade Boards shall have power, in addition to determining minimum rates of wages, to deal with hours of labour and questions cognate to wages and hours.

(2) That the Trade Boards shall have power to initiate enquiries, and make proposals to the Government Departments concerned, on matters affecting the industrial conditions of the trade, as well as on questions of general interest to the industries concerned respectively.

(3) That when an Industrial Council sufficiently representative of an industry makes application, the Minister of Labour shall have power, if satisfied that the case is a suitable one, to make an Order instituting for a section of the industry a Trade Board on which the Industrial Council shall be represented, or constituting the Council a Trade Board under the Trade Boards Acts.

26. The proposals which we have made must necessarily be adapted to meet the varying needs and circumstances of different industries, and it is not anticipated that there will be uniformity in practice. Our recommendations are intended merely to set forth the main lines of development which we believe to be essential to ensure better relations between employers and employed. Their application to the several industries we can safely leave to those intimately concerned, with the conviction that the flexibility and adaptability of industrial organisation which have been so large a factor in enabling industry to stand the enormous strain of the war will not fail the country when peace returns.

27. Other problems affecting the relations between employers and employed are engaging our attention, but we believe that, whatever further steps may be necessary to accomplish the object we have in view, the lines of development suggested in the present Report and the one which preceded it are fundamental. We believe that in each industry there is a sufficiently large body of opinion willing to adopt the proposals we have made as a means of establishing a new relation in industry.

J. H. WHITLEY, Chairman, F. S. BUTTON, S. J. CHAPMAN, G. H. CLAUGHTON, J. R. CLYNES, F. N. HEPWORTH, WILFRID Hill, J. A. HOBSON, A. SUSAN LAWRENCE, MAURICE LEVY, J. J. MALLON, Thos. R. RATCLIFFE-ELLIS, ALLAN M. SMITH, D. R. H. WILLIAMS, Mona Wilson.'

H. J. WILSON, A. GREENWOOD, Secretaries. 18th October, 1917. * Sir G. J. Carter and Mr. Smillie were unable to attend any of the meetings at which this Report was considered and they therefore do not sign it.

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APPENDIX IX

SUPPLEMENTARY REPORT ON WORKS COMMITTEES

COMMITTEE ON RELATIONS BETWEEN EMPLOYERS AND EMPLOYED;

MINISTRY OF RECONSTRUCTION

To the Right Honourable D. Lloyd George, M. P., Prime

Minister.

SIR, In our first and second Reports we have referred to the establishment of Works Committees,' representative of the management and of the workpeople, and appointed from within the works, as an essential part of the scheme of organisation suggested to secure improved relations between employers and employed. The purpose of the present Report is to deal more fully with the proposal to institute such Committees.

2. Better relations between employers and their workpeople can best be arrived at by granting to the latter a greater share in the consideration of matters with which they are concerned. In every industry there are certain questions, such as rates of wages and hours of work, which should be settled by District or National agreement, and with any matter so settled no Works Committee should be allowed to interfere; but there are also many questions closely affecting daily life and comfort in, and the success of, the business, and affecting in no small degree efficiency of working, which are peculiar to the individual workshop or factory. The purpose of a Works Committee is to establish and maintain a system of co-operation in all these workshop matters.

3. We have throughout our recommendations proceeded upon the assumption that the greatest success is likely to be

* In the use of the term "Works Committees" in this Report it is not intended to use the word "works” in a technical sense; in such an industry as the Coal Trade, for example, the term “Pit Committees” would probably be the term used in adopting the scheme.

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