EXTENT OF STATE INTERVENTION Conciliation and Arbitration.—Conciliation and arbitration form an important part of State intervention in every country. In Great Britain conciliation or arbitration action can be taken only with the consent of the parties. In Germany, Denmark, Sweden, Finland, Norway, Austria, Holland, Australia, New Zealand, South Africa (public utilities) and in some South American countries, conciliation procedure can be enforced on the parties. In Bel gium, unless conciliation procedure is utilized, the parties are pe nalized in respect of payments from the unemployment insurance fund. In Australia the presidents of arbitration boards or concil iation committees have power to intervene on their own initiative before the compulsory arbitration procedure, which follows failure to settle, is put into operation. In Italy there are "co-ordinating bodies" which have a statutory right to intervene and stoppages of work are prohibited. In Germany the proposals of conciliation tribunals, if not accepted, can be made binding on the parties, al though the use of this power is strictly confined to disputes seriously affecting the public interest. In Austria the conciliator may proceed to arbitration. In Norway a stoppage of work can be prohibited by the conciliator pending conciliation proceedings and a settlement by arbitration may be ordered in disputes endan gering the public interests. In Denmark, Sweden, Finland and New Zealand the conciliation authority may make proposals and publish them with the facts. In Italy the "co-ordinating bodies" may determine the conditions to be put into operation. In Hol land the facts as elicited by conciliation proceedings may be pub lished or, in serious disputes, a committee of investigation may be ordered. In Canada, besides conciliation under similar conditions to those in Great Britain, there is, in respect of five provinces, power to compel submission of a dispute in mining, transport and public utility industries to a board of conciliation and arbitration, stoppage of work in the meantime being prohibited.
There is usually provision for arbitration in which a decision is made on the matters in dispute by a third party, either a single arbitrator, a board of arbitration or a labour court. Arbitration may be voluntary and the awards open to voluntary acceptance, or compulsory in both cases.
The great difficulty in compulsory measures is the enforcement of penalties when large numbers of workers are involved. More over, the fact that either party can force the other to arbitration tends to make conciliation procedure ineffective. Conciliation and arbitration machinery is constantly being modified in the various countries. National circumstances and psychology, the size and distribution of the population, the nature of the industries, and the economic conditions prevailing must all be taken into account in estimating the suitability of the machinery in any country.
Although arbitration awards are not compulsorily binding, agreement to refer a dispute to arbitration is regarded as a settle ment of a dispute, work being resumed in the case of a stoppage on the conditions operating when the stoppage occurred. Arbitration proceedings under voluntary conditions are informal and are free from restrictions such as apply to proceedings in courts of justice. The parties are encouraged to state their case freely and without hostility.
For the purposes of its conciliation work the Ministry of Labour has six district conciliation officers who keep in touch with industrial movements in their areas. Discussion with an im partial and experienced person at an early stage often directs negotiations into a course which leads to an amicable settlement. Circumstances arise in which one party cannot approach another or make proposals for settlement without the appearance of giving way, and in such cases a mediator renders useful service. There is no general prohibition of strikes and lock-outs but strikes in breach of contract are illegal, under penalty, in gas, water, elec tricity supply and local authorities' services (Conspiracy and Pro tection of Property Act 1875, Electricity Act 1919, Trade Union Act i927).
In New Zealand the system of compulsory arbitration applies to registered unions. Disputes are referred to the court of arbi tration if they have not been settled by a district conciliation officer sitting with assessors as conciliation councils. These have compulsory powers. A strike or lock-out is prohibited while a dispute is under consideration or during the currency of an award. For other workers there is compulsory reference of dis putes to a conciliation commissioner and later to a labour dispute committee composed of representatives of the parties and an in dependent chairman. Failing a settlement within 14 days of the publication of a committee's findings, a secret ballot may be taken. Strikes and lock-outs are prohibited if an award or agree ment is in force or a period of three weeks has not been allowed for investigation and a ballot. The provision as to awards and agreements is similar to that in Australia. A minimum wage is in operation.
In South Africa strikes in public utility undertakings are pro hibited and compulsory arbitration applies to these cases. The main provision for the settlement of disputes is by the creation of joint industrial councils in organized trades and boards of conciliation in others. The Minister of Labour can appoint arbi trators on application and if a majority of employers and workers agree to be bound by the award a stoppage becomes unlawful before the award is issued. Agreements may be made binding in any district.
In Italy, under the act of April 1926, strikes and lock-outs are prohibited. Provision is made for the recognition of one associa tion only for employers and workers, respectively, for each occupa tion in a district, the associations being federated. There are six employers' confederations covering large sections such as in dustry, agriculture, commerce and one confederation for trade unions, which have authority over the constituent associations, approve collective agreements and give permission for action to be taken before the labour magistracy. There are also national federations under the confederations. Agreements between as sociations are binding under penalty on all employers and workers in the category and district covered. All organizations are con trolled by the Minister of Corporations. Co-ordinating bodies or corporations of employers' and workers' associations may deal with collective labour questions and disputes. For the purpose of settling disputes arising out of collective agreements or de mands for new conditions of employment there is a labour magis tracy constituted, as special sections of the 16 courts of appeal, of the president and two experts on production and labour, with an appeal to the court of cassation. A charter of labour defines the position of the Fascist State in relation to problems of labour and production.
In Norway, following serious disputes in 1927, compulsory arbitration was re-introduced by the Labour Disputes Act. If conciliation (which may be compulsory) fails to settle a dispute and it is likely to injure public interests the Government, on the report of the national conciliator, may order settlement by arbi tration and prohibit a stoppage of work. Ballots on proposals made by conciliators may also be required and a report made giving the numbers voting for and against the proposal. In any case stoppage of work must not commence within four days of notice being given to a conciliator.
In France there are, as in Belgium, conseils de prud'hommes which conciliate in disputes affecting individuals. These consist of a justice and representatives of employers and workers. There is also conciliation by Government officials by consent of the parties.
In Belgium there is a system of conciliation boards, constituted by industries themselves or by the Government. Employment exchange committees also have power to intervene in disputes.
In Austria there are central and district conciliation boards, the chairman acting alone in the first place. The boards may act as arbitration tribunals. Factory inspectors also act as conciliators.
The above provisions were based on the Industrial Disputes In vestigation Act 1907, of Canada, which, however, is of a more compulsory character, and is confined to mines and public utilities. During the War its scope was extended temporarily and boards may be appointed in other industries by joint consent of parties. A board of conciliation and investigation may be appointed by the Minister of Labour on his own initiative or on the application of a party to a dispute. In practice boards have never been ap pointed except on such application which must be accompanied by a declaration that a stoppage is imminent. When a board has been applied for or appointed, a strike or lock-out is prohibited under penalty pending the report of the board. Thirty days' notice of changes in working conditions is required. A board consists of one member nominated by each party and an independent chair man agreed upon by the members or nominated by the Minister, the latter being the usual procedure. There are penalties for fail ure to attend or supply evidence but these do not appear to be enforced. Of the 642 cases up to 1926 in which action was taken either by conciliation or by the appointment of a board, a stop page was averted or ended in all but 37 cases. In all these cases one or both parties had indicated by making application, a desire to avoid a stoppage. Where illegal stoppages have taken place no action has been taken by the Government, enforcement being left to the parties. In the report of the Nova Scotia coal commission in 1926 it was indicated that the commission had come to the con clusion that the power of a party to secure the appointment of a board of investigation, if and when it so desired, had the effect in some cases of making prior negotiations unreal and of operating against the settlement of disputes by the parties themselves. It has also been suggested that the existence of this power has caused claims to be made and to be pressed to the point of a dis pute which would not otherwise have been allowed to reach that stage. The administration of the act, like that of the Industrial Courts Act, has been on a voluntary basis.
In 1925 the act was declared by the judicial committee of the privy council ultra vires of the Dominion parliament under the constitution. The act has since been amended to render it possible for each province to make itself subject to the provisions. British Columbia, Saskatchewan, Manitoba, New Brunswick and Nova Scotia have passed laws for this purpose.
In the Netherlands there is similar power to appoint a commit tee of enquiry in a dispute which may seriously affect the interests of the community and in which at least 30o workpeople are involved, if all other means of settlement have failed.
Under the Australian Industrial Peace Act, the Commonwealth council of employers and employees may appoint committees of enquiry and may itself conduct enquiries, and in many countries conciliation officers and conciliation tribunals have power to pub lish facts and recommendations. In New Zealand this action is taken for the purpose of allowing the proposals to be balloted upon.
In special circumstances, royal commissions are appointed in Great Britain. These are established by act of parliament and have power to compel persons to attend and to supply evidence. This procedure permits a longer and more thorough investigation than is possible to a court of enquiry which has to act in the diffi cult circumstances created by a threatened or existing stoppage of work.
(F. W. L.) Industrial Relations in the United States have been coloured at every turn by the individualistic traditions of the country and by the absence of caste distinctions. These two strains in Ameri can life should be kept in mind in attempting to understand the various aspects of labour relations, such as trade unionism, social legislation, arbitration and conciliation, and the latter-day empha sis on securing co-operation within the individual plant. The rela tions between employers and employees can be divided into a controversial phase and a constructive phase, though these aspects overlap. The historical developments are largely concerned with the controversial phase.
Trade Unionism.—American trade unionism has quite a differ ent complexion from the European. In Europe unionism has ful filled not only economic functions but also political and social; its purpose has been not only to raise the economic status of the worker, but also to compensate him for his inferior social status by giving him vicarious prestige through the power of the unions. In America, on the other hand, labour organization has largely taken the form of "business unionism" for purely practical bar gaining purposes. Unionism in the United States is a much more recent phenomenon than in other countries. The industrial revolu tion, which was in full swing in England around i 800, did not produce its full effects in the United States until about the middle of the century. Thus American unionism did riot gain any momentum until after 185o, and no existing union traces its history beyond that time. In colonial days, the newness of the environment, the predominance of agriculture, the local industrial development retarded through the fixed policy of the English Government, kept difficulties between organized workers and em ployers from being a national problem. The earliest known workers' association is that of the Philadelphia shoemakers of 1792, which was followed by a few other sporadic societies. It was not until the end of the first third of the century that labour organizations became numerous enough to be conspicuous.
Even to-day union organization has not reached foreign pro portions. As late as 'goo the American Federation of Labour (q.v.) embraced less than 600,000 members. At present the total membership of all unions combined is less than 4,500,000. The late development of trade unionism is perhaps one reason for this ; another is the persistent opposition of employers. Various court decisions have made organization more difficult, since unions do not have the legal position they achieved in England. In some of the recent decisions of the supreme court it has been made illegal for a union to attempt to organize workers into unions if these workers have signed a so-called individual ("yellow dog") contract with the employer agreeing not to do so. Union leaders have also complained that the process of injunction has seriously hampered their activities.
Unionism is embodied largely in the American Federation of Labour, a loosely federated group of national unions, each to some degree with its own economic aims. But there are certain charac teristics common to all groups. American labour for the most part has for over 4o years renounced the struggle for independent po litical power and is the most determined enemy of communism and, to a large degree, of socialism. There has been much bitter ness against individual and group employers, but the philosophy of class conflict as such is not much in evidence. American workers are not inclined to regard their status as immutable. It is true that unions, though started with economic purposes, soon took on a considerable political complexion. But though at first they at tempted to use legislation to improve the conditions of the worker, latterly they have shown little interest in labour legislation and indeed at times union leaders have opposed certain measures intended particularly for the benefit of the worker.
Equality of citizenship for the wage earner was a much nearer goal for early American unions than it was for those in other countries. A political democracy had already been established in principle. A few States still lagged behind with property quali fications attached to the franchise, and these and other injustices gave occasion for a good deal of political activity. But with the advent of practically universal suffrage it was easy to remedy certain other abuses. The unions took a prominent place every where in intensive campaigns to abolish imprisonment for debt, to establish laws providing for a mechanics' lien, to reform the regulations concerning compulsory militia service, to develop a system of public education having no taint of charity, and to exclude Mongolians from immigrating to compete with American workmen.
With success in the more purely political programmes, unions turned to legislation for economic reforms. The limitation of hours of labour formed the earliest of the major issues upon which labour organizations co-operated. They were successful, in 184o, in securing, by an executive order of President Van Buren, a limitation to ten hours a day for certain Government employees, and in 1868 in securing, through the action of Congress, a general eight hour day for these employees.
When, however, labour unions tried to secure the limitation of hours and the improvement of wages and other economic condi tions in private industry through Government action, they en countered such obstacles that in time their faith in this approach was much weakened. Among the difficulties which they met was the hostile attitude of the agrarians on the one hand, who were not much in sympathy with legislation pampering the city workers, and of the employers and the commercial group on the other. Furthermore, progress had to be achieved in 48 States. Not only had public opinion to be roused, but legislation had to run the gauntlet of the courts and be watched at every point to keep it from being nullified by ineffective enforcement. The courts proved the greatest obstacle, for they were none too favourable to legisla tion suggesting an abandonment of freedom of contract. Latterly, therefore, unions have evinced comparatively little interest in labour legislation and have to a large extent left the field to out side groups. (See further TRADE UNIONS.)