The National Insurance Act of 1911 opened the door to trade union participation in its administration. Part I. of the act dealt with health insurance and provided, in general, for the payment of State benefit under the scheme by approved societies. Many trade unions formed trade union approved societies to administer the health insurance scheme, and these have become important agencies in the conduct of this vast system of social insurance. A National Association of Trade Union Approved Societies exists to protect the interests of the constituent societies, and it played a prominent part in the opposition to Part I. of the Economy Act of 1926, which reduced the State contribution to health insur ance. The insurance activities of the unions have not only asso ciated them with the working of an important piece of legislation, but have consolidated, and in some cases strengthened, the posi tion of the unions with their own members.
Part II. of the National Insurance Act, 191i, dealt with unem ployment insurance, but the scheme was a limited one. Compul sory insurance against unemployment was widely extended by the Unemployment Act of 192o to cover nearly 12,000,000 workers. Provision was made whereby trade unions which ordinarily dis tributed out-of-work pay to their members should, subject to certain conditions, be allowed to administer the State Scheme, and pay the State benefit to their members, for which service the unions received an allowance. Many unions applied this provision of the act, but the reduction of the administration allowance from Is. per week benefit paid to sixpence led to some unions ceasing to administer the act. At the end of 1928, however, unions with a membership of 962,37o were still operating under Section 17 of the Act of 192o, and in order to secure a common policy on matters affecting their position under the Unemployment Insur ance Acts, the unions concerned set up a standing committee, which acts with the Trades Union congress general council.
On the local employment committees and juvenile advisory committees attached to the employment exchanges and on the juvenile choice of employment committees of local authorities, the trade unions are represented, whilst when "uncovenanted" or "extended" benefit was introduced, they were actively associated with the employment exchange rota committees for the adminis tration of this form of benefit.
During the progress of the war the trade unions were intimately connected with the conduct of certain phases of national affairs. In March, 1915, the Government came to an agreement (known as the Treasury agreement) regarding the production of munitions, which included compulsory arbitration, the relaxation where nec essary of trade union rules, and the limitation of profits in muni tions industries. From then onwards, the unions were called upon to assist in accelerating the production of munitions, in adminis tering certain of the controls which were instituted (such as those in the cotton and wool textile industries) and in the selection of men for war service. Parts of the Treasury Agreement were embodied in the Munitions Acts, and offences under these Acts, except such as were brought before the ordinary courts, were dealt with by specially appointed munitions tribunals. Each tri bunal consisted of a chairman, with either two or four assessors, drawn equally from panels representing employers and workers respectively. These bodies played a great part in the adminis tration of the Munitions of War Acts.
A "national labour advisory committee on war output" was es tablished early in the war, together with local labour advisory boards in each munitions area. The national committee was re placed in 1917 by the Ministry of Munitions trade union advisory committee, which was divided into three sections representing the engineering group, the shipbuilding group and the general labour group. A special women's trade union advisory committee was also appointed in the same year to advise the minister on all ques tions relating to women's work. Towards the end of the war further steps were taken arising out of unofficial strikes in Coven try and Birmingham, which, though speedily settled by the trade unions concerned, led to the appointment of a Government com mittee (on which there was trade union representation). This committee, which was critical of the policy of the Ministry of Munitions, recommended the establishment of a joint committee of employers and trade unionists and the closest possible consulta tion, both nationally and locally, upon changes and developments of policy—a proposal which the Government accepted.