Industrial courts having juris diction in the manufacturing industries (Ge werbeqerichte) had been established in various localities in Germany since the first quarter of the 19th century, and previous to 1869 three states—Prussia, Saxony and Saxe-Weimar had passed laws providing for the establish ment of such courts. By a provision of the industrial code of 1869 local authorities were authorized to establish such courts, provided and employees were equally repre sented thereon. In 1890 an imperial act was passed establishing uniform regulations gov erning the form and procedure of the local courts and extending their functions so as to provide for the arbitration of collective dis putes. An act passed in 1901 amended in cer tain important particulars the act of 1890, es pecially with reference to the settlement of collective disputes, which prior to that date had not been arbitrated with any large measure of success.. The act of 1901 authorized the courts to act on their own initiative without waiting for either party to the dispute to make application for its services, and provided that the arbitrators should be appointed by the parties concerned in the controversy. The ap pearance of the parties to the dispute was made compulsory and a penalty was provided for non-attendance. When both parties ask for arbitration the court then ceases to be a board of conciliation and becomes a board of arbi tration; and if only one party makes applica tion it is the president's duty to urge arbitration upon the other party. Decisions in 'cases of arbitrations are rendered by a majority of the arbitrators, but the president may abstain from voting in case of tie. The acceptance of the decision is not compulsory except when both parties have previously agreed to abide by the award. The act of 1901 further provided for the compulsory establishment of industrial courts in all cities having a population of over 20,000, and they may be formed elsewhere at the option of the state or upon joint appli cation of employers and wage earners. In 1904 mercantile courts (Kaufmannsgerichte) for the settlement of disputes between mer chants and their employees were established. Although the records for recent years show that there has been a growing disposition to refer industrial disputes to the courts, never theless the number of disputes thus referred has constituted only a very small percentage of the total number arising.
Great Several important acts with reference to the settlement of industrial disputes by conciliation or arbitration were passed in Great Britain during the 19th century, among which may be mentioned the Consolidation Act of 1824, the Con ciliation Act of 1867, the Arbitration (Masters and Workmen) Act of 1872 and the Conciliation Act of 1896. Of these four acts, the last named may well be described briefly in this connection. This act provides for the registration of private conciliation or arbi tration boards by the British Board of Trade. Registration is optional, but any board so registered is required to •furnish such returns of the proceedings and other documents as the Board of Trade may reasonably require.) Should it appear to the Board of Trade that no adequate conciliation board has been estab lished to which may be submitted disputes which might arise in any locality or industry, the board is authorized to inquire into the causes and circumstances and to take such steps as are deemed expedient for the purpose of bringing the parties together with a view to conciliation and, on application of either partY, to appoint one or more persons as conciliators, and on application of both parties to appoint an arbitrator. In 1911, following the great
railway strike, an Industrial Council was es tablished for the purpose of considering mat ters referred to it, especially with reference to disputes which would affect the principal trades of the country. The Industrial Council has no compulsory powers. Its primary function ap pears to be the encouragement of voluntary arbitration and the establishment of rules and regulations governing the procedure of unoffi cial boards. In 1915 and 1916 acts known as The Munitions of War Acts,) providing for conciliation and arbitration of disputes arising in munition manufacturing industries, were passed, and in making awards under these acts it is held that the rights of employers and employees engaged in these industries may not be exercised as freely as in times of peace, and although parties to the controversies are not compelled to abide by any award, they are called upon and expected, during the continuance of the war, to forego certain principles, in order that harmonious relationships may be main tained and production continued without in terruption. In the settlement of minor disputes the English system appears to have been quite successful, and undoubtedly the number of serious industrial disputes has been somewhat diminished, but a large number of very serious disturbances have arisen notwithstanding the provision which has been made for voluntary arbitration.
New Zealand.—A statute enacted in New Zealand in 1894 provided for the compulsory arbitration of industrial disputes, and several other Australian states have since passed simi lar measures. An act of this character, passed by the commonwealth in 1914, was made appli cable to disputes "extending beyond the bound aries of any one state.) Under the provisions of the New Zealand act district boards of con ciliation are created, on which board associa tions of employers and of workmen are equally represented, and an "imperial chairman) is elected by each board. In 1909 the act was amended so as to provide for the appointment of three commissioners of conciliation. When a controversy arises one of these commission ers endeavors to bring about a settlement and, if successful, he organizes a council of con ciliation, consisting of two or more representa tives of each party, to whom the matter is referred. Should such council fail to effect a settlement of the dispute, it is then referred to the Industrial Court, which consists of three members appointed by the governor for a term of three years, one of whom (the presiding officer) is a judge of the Supreme Court, an other a representative of the employers, and another a representative of the employees. Cases also may be referred directly to the court without first having been referred to the coun cil of conciliation. Pending consideration of a dispute by the court, strikes and lockouts are forbidden. The awards of the court are bind ing upon _both parties and penalties are im posed for failure of either party to observe the conditions of the award. The factory in spectors are charged with the enforcement of the awards. For some years, under this sys tem of compulsory arbitration, New Zealand was properly described as "a country without but during recent years strikes have been wholly prevented in that state, even though rather heavy penalties have been im posed for failure to observe the awards of the court. Some of these controversies, however, which have resulted in open conflict, have not come within the scope of the law.