POSITION OF SHOP STEWARDS Works Committees and Councils in Great Britain.— Works committees may be of two main kinds (a) committees of workpeople or their representatives or (b) joint committees of the management and the workpeople. As the works became organized in trade unions, official shop representatives, known as shop stewards or delegates, were appointed either by the workpeople or by the union for various purposes, such as the collection of dues, and representing the workers in the discussion of griev ances with the management. During the War the application of dilution and the introduction of payment by results raised many questions of detail, and works machinery gained a new importance. Committees of shop stewards became common and, although in some cases shop stewards of unions of skilled and unskilled workers were in conflict on matters such as the manning of machines, committees were usually representative of all trades in the establishments. The stress of the War conditions in the shops also made it necessary to promote the physical welfare of workers and many welfare committees were formed which were known as works committees. Further impetus was given to the formation of joint works committees by the report of the Whitley committee on works committees. The committee regarded "the establishment of works committees representative of the manage ment and the workpeople, and appointed from within the works, as an essential part of the scheme of organization suggested to secure improved relations between employers and employed," and stated that "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 work shop or factory." They urged strongly that such committees should be set up with the co-operation of employers' organiza tions and trade unions. There had arisen early in the War a strong shop stewards' movement by association between works organiza tions in different undertakings which was of a somewhat extreme political character, and which acted independently of trade unions. In Germany, Italy and Russia, and other countries also, such movements occurred with revolutionary results. Trade unions are suspicious of works committees with which they are not di rectly concerned, in view of the menace to their organization which arises from isolated arrangements. On the other hand, workpeople are apt to lose interest in works committees when the conditions of employment in which they are mainly interested, wages and hours, are settled by other machinery or are otherwise generally satisfactory.
In addition to the creation of works committees following the Whitley reports, the position of shop stewards was regularized in some industries, e.g., engineering, in order to enable works discus sions to be conducted in a constitutional manner and with due regard to existing agreements in the industry.
Works committees are sometimes composed entirely of indi vidual workers elected by ballot, secret or otherwise, by occupa tions or by departments. Some are composed entirely of members of trade unions so elected. In some cases officials of unions may attend meetings regularly or in special circumstances. In large undertakings there is often a general committee comprised of dele gates from departmental committees. It is usual for meetings to be allowed during working hours and for wages to be paid for time so lost. Among subjects which are dealt with by works committees are welfare, benevolent, holiday and loan funds, pen sions schemes, sports and recreation, accident prevention, share purchase schemes, piece-price fixing and education. In some cases dismissals of individuals, or, in case of slackness of business, of numbers of individuals, are subject to review by works com mittees. This is greatly valued as it gives individuals greater security of employment and protection against victimization. At a time of depression prior consultation enables plans for the shar ing of work or regularization of employment to be discussed. Methods of production, regularity of output and prevention of waste are other matters dealt with by committees. They are in some cases informed regularly of the state of business.
In Germany the Weimar Constitution provided for tie estab lishment of workers' councils, regional workers' councils and re gional economic councils, a federal workers' council and a federal economic council, all in organic connection. A provisional federal economic council was established, which has now been reconsti tuted, but regional councils have not been set up. The Works Councils Act of 192o was not in accord with this workers' control movement which was antagonistic to trade unions. This act pro vided that "workers' representative bodies" should be established in all industrial and commercial undertakings, including agriculture but excluding shipping, employing not less than 20 persons. Within the council there are sections for wage-earners and for salaried employees. In smaller undertakings employing more than five persons, shop stewards were to be appointed. Appointments, which are for a year and can be terminated only by a labour court, are confined to workers aged 24 years and upwards with not less than three years' continuous service and are made by ballot of workers over 18 years old. In certain circumstances a repre sentative body set up by collective agreement ("tarifliche Betriebs vertretung") may be substituted for a works council. In a com posite undertaking a joint works council ("Gesambetriebsrat") may be formed, the councils for the constituent works continuing to f unction. In exceptional cases a "common works council" ("gemeinsamer Betriebsrat") may be formed, the individual works councils being eliminated. Representatives receive their wages for the time spent in their work in that capacity within working hours. By an act of 1922 one or two members of works councils are appointed to the control board (this is not a board of directors) of a joint stock company, a limited partnership with share capital ("Kommanditgesellschaft auf Aktien"), a registered co-operative society, a mutual insurance association, a company established under the mining laws, or, optionally, the control board of a lim ited liability company. Agreements between works councils and employers must always be subordinate to any collective agree ments in force. Subject to this, the councils deal with such mat ters as wages and other working conditions, methods of produc tion, staffing, discipline and dismissals, and employers must keep the councils informed of all action taken which affects these mat ters, of the trading position of the undertaking, and of the anticipated demand for labour. In large undertakings a profit and loss account and a balance sheet must be presented and explained. In case of disagreement with the employers appeals may be made to the State conciliation boards and the labour courts. These ap peals resolve deadlocks and are substantial aids to the mainte nance of peace. The power given to the council in respect of the review of dismissals is highly valued.
Since the years of depression r 9 23-2 5 the councils have largely disappeared from commercial establishments. In spite of the statutory provisions, the working of the councils has been to a considerable degree dependent upon the extent to which the workers have been organized in trade unions. There is, however, a tendency among some employers to favour works agreements in place of general collective agreements. The trade unions have tended to become industrial unions covering whole industries, and have formed organizations of works councils corresponding with the main groups of the trade union movement, with works councils headquarters in various localities, divided into groups for each branch of industry: There is a trade union central works com mittee for the whole country and all the councils are linked up in industrial groups. A movement of some importance has been the linking up of the councils in undertakings which form vertical trusts, i.e., covering the whole process of production from the raw material to the finished products. These are voluntary associations known as trust works councils ("Konzarnbetriebsrat"). The effect on the trade unions has been to cause them to concentrate more attention on the production problems of industry and to produce a type of leader who is more closely associated with the work and the workmen in the undertakings.
In Austria the act of March i 5, r 9 r 9, is similar to the German act. Agriculture is excluded and there are special arrangements for railways, Government departments and postal services. Dis putes with regard to the working or establishment of councils are referred to a conciliation board which usually works through com mittees constituted of one representative nominated by the em ployers and workers, respectively, and an impartial chairman, usually a judge, all appointed by the Ministry of Social Adminis tration. Failing settlement by agreement the board gives a final decision against which there is no appeal, but the administrative court, which is not in terms debarred from action, has allowed appeals to be made to it. In Austria the expenses of the councils other than wages are a charge upon the workers.