Perhaps the most crucial issue arising out of this struggle con cerns the changing relations of organized labour to the Govern ment. Prior to the rise of the C.I.O. the benefits which organized labour received from the Federal Government were acclaimed in all parts of the labour movement. But as the Federal boards, applying the powers conferred on them by law, began to rule o.n matters affecting vital interests of unions and the conduct of their internal affairs, union leaders became increasingly sus picious and critical and began to doubt the value of governmental intervention.
The Federation, fearing the inroads of the C.I.O., was the first to show concern and to modify its policy. Soon, however, the C.I.O. also saw itself weakened by unfavourable rulings. And in his presidential report to the latest convention of the C.I.O., 1939, John L. Lewis raised the question whether unions should not de pend more on their own resources than on law and agencies of government.
As Great Britain was the first country to undergo indus trialisation and the modern capitalist system first made its home there, it was natural that modern trade unionism should have sprung into existence in Britain. Although in some countries trade unionism has departed from the British model, yet the trade union movement in Britain has powerfully influenced developments elsewhere.
In most countries there has been much the same struggle as in Britain, and the process of development has broadly followed the same lines. The French Revolution and the Napoleonic legislation which followed it finally destroyed the guild system in Europe. The rise of large scale industry coincided, as in England, with an era of individualism during which combination was held to be a crime, and was severely punished. In time, however, these penal measures became more or less inoperative, and during the second half of the 19th century in most European countries, and in the loth century in Russia, the laws prohibiting combination for trade purposes were repealed.
In Germany freedom to form associations was not conceded until the latter half of the i9th century. Under the Empire, though trade unions had no status in courts of law, freedom of association was granted. The trade unions increased in power and membership with the establishment of the Republic, the Constitution specifically granted freedom of association to all, including civil servants, and the unions were called upon to co-operate in the economic activities of the State.
In France the story is broadly similar. During the French Revolutionary period association was prohibited. Later there followed a period of de facto tolerance of combination. Asso ciation ceased to be "a penal delict" in 1864, combinations be came finally legal in 1884, and in 1901 an Act of wide scope proclaimed general freedom of association. In 1919 and 1920 legislative powers were conferred on industrial associations to conclude collective agreements, to take legal action to secure the enforcement of agreements, and to take proceedings in respect of infringements of labour laws.
The development of the activities of trade unions has pursued broadly the same course in all countries, though the law with regard to strikes, blacklists, the boycott, etc., varies in different States. Generally, trade unions have concerned themselves with the organisation of workers within their ranks, and with industrial negotiations. Where the latter fails, they have made themselves responsible for controlling the withdrawal of labour. They have provided "friendly benefits" of certain kinds for their members. In course of time the trade unions came to exercise in varying measure an influence on managerial control in industry, and in most countries influence in some degree social and in dustrial legislation. In Russia, the trade unions occupy a privi leged position. During the earlier stages of the Soviet rule, they were a constituent part of the State. Though the State and the Unions are now independent, the latter still enjoy legal powers which are an effective influence within the State. In Italy, since the establishment of the Fascist regime there has been a very close connection between trade combinations and the State through the Ministry of Corporations. Certain duties have been devolved upon the unions, which are in effect direct organs of the State. (See FASCISM.) In Spain, where the course of action was inspired by Italian legislation, corporations were set up by order of the authorities to bring together various trades and in dustries, and the joint commissions of workers and employers which go to form the corporations include members nominated by the State.