In England voluntary and unofficial arbitra tion was instituted early in the nineteenth cen tury. and has made greater progress than in any other country. In 18:36 disputes in the pottery trade were settled in this way; and within the following decades several important trades adopt ed the same practice. Committees of employers and employed meet informally to discuss griev ances, and usually succeed in reaching an amica ble agreement; and where these committees are best organized. as in the coal trade of Durham, the decisions of the committee are rarely rejected by the disputants. In the last decade, upon the initiative of the London Chamber of Commerce and the trade unions, local boards not connected with any particular trade have been created in large numbers, and have been successful in di minishing the number of serious disturbances in industry. But in England, as in France, the more important disagreements have had to be ad justed by protracted and costly strikes and lock outs.
New Zealand enjoys the distinction of being the only country which undertakes systematically to prevent strikes and lockouts by a general law of compulsory arbitration. In 1894 a law was enacted creating boards of conciliation and a court of arbitration, the latter having power to enforce its awards by penalties. The boards of conciliation consist of four to six members, one-half representing the labor asso ciations, the other half representing associations of employers. They are elected every three years by the associations of employers and em ployed. Each board elects as chairman an im partial outsider, who votes in case of a tic. The arbitration court is composed of three member appointed by the Governor, one from a list nomi nated by the employers, a second from nominees of the laborers, and the third from the judges of the Supreme Court. Cases are tried before the court only upon the request of one of the dis putants. and all means of conciliation are at tempted before resort is had to arbitration. Strikes and lockouts are forbidden while the case is pending. Awards of the court may be ex tended to a whole district. Under the act trade unions are recognized as corporate bodies; and only by belonging to such a body does a work man secure standing in the court. Numerous disputes have been settled by the court. and light fines have hitherto been sufficient to enforce its awards.
The first noteworthy case of unofficial arbitra tion in the United States was in 1885. when a committee was appointed to arbitrate differences between the Sons of Vulcan and their em ployers. Since that date arbitration committees Lave been chosen in many trades, often operating with marked success. Much attention has been attracted by the signal success of an unofficial board \\ hien operates in the coal-mining industry of Illinois. The activity of this board dates trout 1s9s and since that year innumerable grievances which might have led to strikes have been (-ably adjusted. VI, hen such disputes arise, rep t( sentativcs of the coal operators and of the United Mine NVorkers (q.v.) meet, together with the miners and operators immediately interested. The mere liseussion of the points at issue fre quently results in explaining away alleged gricy at Cu.-..
Official boards of arbitration were established in Nlassacnusetts and New York in 1886. At present twAity-four States in the Union have i nude statutory or constitutional provision for industrial arbitration or conciliation. Seven teen of these contemplate the administration of arbitration through permanent boards: Massa chusetts. New York, :Montana. :Michigan, Cali fornia, New Jersey, Ohio. Louisiana. Wisconsin, :Minnesota, Connecticut. Illinois, Utah, Indiana, Idaho, Colorado, and Kansas. The Constitution of Wyoming directs the 1,•gislature to establish courts of arbitration to determine all disputes between employer and employed. Provision is made for appeals to the Supreme Court from the decision of compulsory boards of arbitration. Kansas enacted eompulsory arbitration in 3898, but in the following year the enactment was de clared unconstitutional. In addition to the State courts, temporary tribunals were created by Federal statute in 1888 to settle grievances be tween railroads engaged in interstate commerce and their employees. These tribunals consisted of one member chosen by each party, and a third chosen by these two. The law was repealed in
1898, but was rei_;naeted in the same year in its essent la' features.
The organization of the State hoards varies in detail, but lift- feature of equal representation of employers and employed is general. Their prin cipal function is to investignte disputed ques tions, rather than arbitration being the end in vi.nv. In .1rissachtisetts the arbitra tion board has power to summon witnesses, to take testimony under oath, and to require books and writings to be p•odueeil. The results of the investigation may be made puldie at any point in the proceedings. In other States the powers of the courts or boards are generally of a similar nature. The Nassaelinsetts board has won n national reputation for edicieney, and while 1111 :11 le to prevent all strikes. has unquestionably done much to diminish their frequency.• An examination of the working: of hoards of voluntary arbitration shows that for the settle ment of disputes which are due to misunder standings, or which involve matters of minor int• portanee, their usefulness is unquestioned. Wher ever they have been judieimisly eondueted they have served to lessen frietion between employer and employed, and have often averted strikes and lockouts. Rul there are certain questions of general poliey which have defied settlement by voluntary arbitration. Such. for example. arc the recognition of labor Organizations by the em ployer, exclusion of non-union labor from em ployment, a general and material increase or lowering of wages. These questions are still usually determined by the strength and endur ance of the contending parties. Investigations by impartial boards of arbitration may direct pub lie sentiment, and so may bring pressure to hear upon the pally whose ethical position is the N\ calker. But this pressure has lat proved suf ficient to prevent prolonged strikes, causing wide spread distress to the public, as well as to the parties to the struggle. It is for this reason that a growing sentiment manifests itself in fat or of compulsory arbitration. it is pointed out that under a system of industrial concentration a strike may wholly cut off the of one of the necessaries of life—a condition which is mani festly iutulwablc. Adv(s•ates of compulsory arbi tration to the example of New Zealand, where for seven years disputes have been adjudi cated 1111110IIL cessation of industry. upponents of compulsory arbitration are, however, no less decided in their views than are the advocates of it. It is pointed out that laborers will frequent ly demand terms to which employers Can accede only by producing a loss; and that courts of arbitraticn, under the intluenw of a public. senti ment naturally favorable to the laborer, trill often give awards which will discourage business enterprise. IL is alleged that this is the case in New Zealand, although this is vehemently de nied, and there is DO evidence that capital is with drawing from the colony. Noreover, it mould obviously he difficult to force the laborers to abide by a decision unfavorable to theni, since men cannot lie compelled to continue to work against their will. The ineorp(wation of laborers into associations with collective responsibility (see TRADE UNIONS) is advocated as a measure which will obviate this difficulty; but such a measure is strongly opposed by the better or ganized labor unions. as well as by those who view with suspicion any tendency away from in dividual freedom and responsibility. In spite of the difficulties which beset compulsory arbitra tion, however. it would appear to be obvious that social welfare demands that judicial means should he developed for settling IN-am-fully those disputes which can now he settled only through strikes involving untold losses and suffering.
IlinuoratArilY. Article "Arbitration and Con ciliation," in Encyr/op(rdia of Social Reform (W. D. P. Ifliss, editor, New York, 1897) ; Jeans, Onciliatimt and Arbitration in Labor Disputes (London, 1894) ; (Wei- gewerbliehe Nrhicdsgerirhto (Zurich• 1895) ; IIrumcl, De la conciliation en. mat %I'll" Co 111 e rri le (Paris, 1598) Lloyd, .1 Country Without Strikes (New York, 1900) ; Congress on Industrial Concilia tion and Arbitration (Chicago, 1894) ; Massa chusetts State Board of Arbitration, Annual Re ports ( Bost on. 188G-1901 ) ; Report of Industrial Commission, vol. xvii. (Washington, 1901).