The Theory and Policy of Labour Protection Part 13

Beyond the ordinary judicial protection afforded by the obligations attached to service contract, special guarantees of protection are in part already granted, in part demanded, against abuse of contract, incomplete fulfilment and non-fulfilment of service contract to the disadvantage, as a rule, but of course not in all cases, of wage-labour.

This protection is afforded partly by formal regulations, partly by judicial rulings on special cases. The latter form of protection in contract is closely allied to protection in intercourse (see above); the two overlap each other.

The protection afforded by contract regulations consists in the enforcement of certain formal requirements, and the granting of certain remissions, such as _e.g._ the requirement of written agreements and the remission of duty on written agreements, etc. First and foremost stands the obligation to post up the working rules. _A parte potiori_[13] all protection of contract might be called protection of working rules.

The working rules serve in reality to give the workman himself the control over his own rights, but they also are to the interest of the employer.

The _von Berlepsch_ Bill further extends this sort of method to factory and quasi-factory labour (-- 134_a_-134_g_), permitting the workmen in any business to exert a considerable influence upon the drawing up of the working rules. Sections 134_b_ and 134_c_ read thus: "-- 134_b_.

Working rules shall contain directions: (1) as to the time of beginning and ending the daily work, and as to the intervals provided for adult workers; (2) as to the time and manner of settling accounts and paying wages; (3) as to the grounds on which dismissal from service or quitting service may be allowable without notice, wherever such are not determined by law; (4) as to the kind of severity of punishments, where such are permitted; as to the way in which punishments shall be imposed, and, if they take the form of fines, as to the manner of collecting them and the purpose to which they shall be devoted. No punishments offensive to self-respect and decency shall be admitted in the working rules.

Fines shall not exceed twice the amount of the customary day's wage (-- 8. Insurance against Sickness Act, June 15th, 1883), and they shall be devoted to the benefit of the workers in the factory. The right of the employer to demand compensation for damage is not affected by this rule.

It is left in the hands of the owner of the factory to add to rules I to 4 further rules for the regulation of the business and the conduct of the workmen in the business. The conduct of young workers outside the business shall also be regulated. The working rules may direct that wages earned by minors shall be paid to the parents and guardians, and only by their written consent to the minors directly; also that a minor shall not give notice to quit without the expressed consent of his father or guardian."

-- 134_d_ reads as follows: "Before the issue of the working rules or of an addition to the rules, opportunity shall be given to the workers in the factory to express their opinion on the contents. In those factories in which there is a standing committee of the workmen it will be sufficient to receive the opinions of the committee on the contents of the working rules."

It is further recommended that the factory rules shall include the publication of legal enactments regarding _protection by limitations of employment, protection in occupation_ and in _intercourse_, the necessary conditions and limitations of these, the possibilities of appeal, and methods of payment of overtime wage, also of instructions for precaution against accidents, and lastly of the name and address of the club doctor and dispenser, of the company and their representatives, the name of the factory inspector and his office address and office hours.

But we have seen that contract protection is not only afforded by these formal regulations but also by judicial rulings on special cases. These latter have a threefold task: to prevent the drawing up of unfair contracts, to supply deficiencies in the contract, by adding subsidiary rulings suited to the nature of the industrial service relations, and lastly, to secure the fulfilment of service contract; _i.e._ they have to provide protection by limitation and completion of contract and to secure fulfilment of contract.

This kind of protection of contract is of special importance in dealing with contract fines, proportional output ("efficiency work"), the supply of tools and materials of work, and lastly with payment of wage.

Labour Protection seeks to guard against abuse of contract fines, by fixing the highest permissible amount of fines, and by handing over the proceeds of the fines to the workmen's provident fund. This is a matter of the highest moment, and must find a place in the drawing up and in the enforcement of the working rules (see above). Hitherto it has only been extended to factory labour.

A second task of protection of contract lies in the protection of "efficiency work," _i.e._ protection of the wage-worker against an undue deduction from his "efficiency wage" on account of the alleged inferior quality of the output, and against neglect to reckon in the full amount of the output in the calculation of wage. This measure of protection has been placed on the orders of the day of the present labour protective movement, by the adoption _e.g._ of the system of checking the weight of the output in mining.

In the third place we come to protection of the workman against loss sustained in buying his tools and materials of work from the employer.

This measure of protection in purchase of materials is applied to the whole of industrial labour by means of its insertion in the general rules for truck protection contained in the Imp. Ind. Code.

A fourth point, very closely allied to protection of intercourse, but which has to be dealt with protectively by those judicial rulings on protection of contract, concerns the permanence of rate of wage, the day, place, and period of payment, and by whom, and to whom, payments are to be made. Protection of payment may be more completely secured by the inclusion in the working rules of directions on these points. It must be applied to the whole of industrial wage-labour according to circ.u.mstances. The prohibition of payment of wages in public-houses and on Sat.u.r.days, the fixing of the wage by the employer himself, not by a subordinate official; the obligation to make the agreement as to "efficiency wage" at the time of undertaking the work, in order that the bargain may not be broken off should it prove specially favourable for the workers; also payment of wage at least weekly or fortnightly; and lastly, the payment of minors' wages into the hands of parents or guardians, which const.i.tutes a measure of educational protection of the minors against themselves--such are the princ.i.p.al requirements of protection of payment of wages, requirements which are already more or less fulfilled.

FOOTNOTE:

[13] That is, _after the largest portion of it_.

CHAPTER IX.

THE RELATIONS OF THE VARIOUS BRANCHES OF LABOUR PROTECTION TO EACH OTHER.

If the various chief branches of Labour Protection are compared with each other after they have all been examined separately, they appear to be indispensable and inseparable members of one system, for no one branch can be spared. But they are very different in nature, and by no means equal in importance.

Protection of truck and contract have long ago reached their full development. Both are almost universal in their extension, and are exercised by the regular administrative courts and petty courts of justice. They are characterised on the whole by legal precision, which affords little room for interpretation and extension at the will of the administration. Protection of contract and protection of intercourse are required less in the immediate interest of the whole State than in that of individuals.

But when we come to protection in occupation, it is altogether another matter.

_Protection by limitations of employment_, which forms the central point of the latest protective movement, is in all its aims more or less in contrast to protection of contract and intercourse. It is not a matter of universal application. It requires special administrative organs, special methods of procedure with many technical differences of detail adapted to the peculiarities of different trades. Its full development requires general legal enactments, a central authority, and a uniform exercise of administration; it has to deal with the entire working cla.s.s, nay more, with the whole body of citizens, and with the spiritual as well as the material life of the workers and of the nation, because it constantly affects and influences the lives of larger ma.s.ses of labourers.

It must not be supposed that any one branch of protection by limitation of employment is more important in itself than all the rest. It is not protection of holidays alone, nor the maximum working-day alone that will restore the workman to himself, to his place in the human family, to civic life, to his family, to the performances of his spiritual duties; but all measures of protection by prohibiting and limiting employment must work together to effect this. Protection by limitation of employment, as a whole, seeks to ensure those moral benefits so finely emphasised in the preamble of the Confederate Factory Act: "The benefits which may accrue to the country from the factory system depend almost entirely upon its being ensured that the worker shall not be deprived of time or inclination to be the educator of his children, and the head and prop of his family." The maximum working-day effects this by securing the evening free to all--to fathers, mothers, children, and young people. Protection of holidays works towards the same end by securing to everyone the seventh day free for his own life, the life of his family, and intercourse with his fellow citizens, and for the performance of his spiritual duties. Prohibition of night work also contributes its quota towards the same result. Without all this protection by limitation of employment, the father of the family would lose his family, the child would lose its training and care, the mother and wife would lose her children and husband; and all of them would lose their joint life as citizens, as members of society, and of a religious community.

It is from these considerations that we must justify the immense importance which it is the growing tendency of Labour Protection in the present day to attach to the whole question of protection by limitation of employment.

CHAPTER X.

TRANSACTIONS OF THE BERLIN LABOUR CONFERENCE, DEALING WITH MATTERS BEYOND THE RANGE OF LABOUR PROTECTION; DALE'S DEPOSITIONS ON COURTS OF ARBITRATION, AND THE SLIDING SCALE OF WAGES IN MINING.

The demand for a legal minimum wage, for wage tariffs, and the sliding scale of wages, form no part of Labour Protection. The State cannot, as we have seen, regulate wages directly, but only indirectly, by favouring an adjustment of wages that shall be fair to each side. But even in measures of that kind it does not interfere for the purpose of protecting the persons of the wage earners in their _relations of dependence_ on the employer. Politico-social proposals for indirectly influencing the movement of wages, do not for this very reason, belong to Labour Protection, in the sense which I have a.s.signed to the term in this book. Therefore, I shall content myself, on the one hand, with clearing up a misunderstanding concerning the minimum wage and the wage tariff; and on the other hand, with supplementing my former contribution to the subject (_Jahrg., 1889, Die Zeitschrift fur die gesammte Staatswissenschaft_) from the reports of the Berlin Conference, having special reference to the regulation of wage in the English mining industries.

These proposals, dealing with minimum wage and the wage tariff, which I shall now introduce into my treatise on Labour Protection, do not aim at enforcing a minimum rate of wage from above, regardless of the individual value of the labour, they merely aim at providing as far as possible a stable adjustment and cla.s.sification of efforts and rewards between the whole body of employers and the whole body of workers in any branch of industry or industrial district, _i.e._ at subst.i.tuting _general_ for _individual_ control, for the protection not of the worker alone, but also of the employer, _i.e._ against exploiting compet.i.tors.

In Germany the printers have led the way; the number of their followers in other industries is increasing. But this is a matter that must be settled by the two cla.s.ses, not by the State.

Questions of wage policy, however, even when unconnected with protective policy, are often drawn into discussions on protective policy; and even the Berlin Conference, which was officially designated[14] "an international conference on the regulation of labour in industrial establishments, and in mining industries," frequently overstepped the limits of questions of purely protective policy. I feel myself fully justified, therefore, in touching upon a few of the further questions dealt with by the Conference.

In an earlier treatise, written before the proclamation of the Imperial Decree of February 4th, 1890, I pointed out the need for the special cultivation of Labour Protection in mining industry, particularly in coal mining, and I expressed an opinion as to the advisability of establishing government mines as a kind of politico-social model to the rest; while, on the other hand, I declared against the necessity for the nationalisation of coal mines.

Pamphlets of an opposing tendency, which circulated freely in the wake of the great coal strike of 1889, have, it is true, brought to light more and more reliable evidence; but hitherto I have found in them nothing to shake my confidence in the correctness of my fundamental contention: as far as I am concerned, I await without anxiety the issue of the latest Coal Trust.

As I pointed out in the same treatise, the special danger of the strike agitation, attacking as it does the very centres of activity and channels of healthy movement in the social body, has unfortunately been only too fully exemplified. The coal strike, and the railway and dock strikes, have become samples, and are triumphantly quoted as typical instances of the success of the method.

In the same treatise I raised the question whether the branches of industry under consideration should be const.i.tuted a department of the public service, involving special obligations and special safeguards against breach of contract, but also ensuring special security of work and a good standard of pay. This question has also risen to a high level of importance since that time; it does not, however, belong to the sphere of Labour Protection, and in this treatise I must therefore leave it on one side.

But I consider myself bound to supplement the information given as to the means of avoiding strikes in the mining industry by bringing forward the communications made by the best informed English expert, who sat in the Berlin Conference (session of March 4). The reports read as follows: "Mr. Dale reminded the Conference that about twenty-five years ago numerous and protracted strikes took place in the north of England (in mining). In consequence of this, the employers met together to discuss means of regulating the wage question. At first they refused to treat with the workmen _in corpore_, but they finally decided on the advice of a few of their number more far-seeing than the rest, to recognise the union of miners belonging to one and the same mining district. This principle once admitted formed the groundwork of the prevailing system of the day for the settlement of all disputes. This method has obtained for twenty years. At first the representatives of the employers and workmen were only summoned to negotiate on special questions. The principle of settlement by arbitration was admitted in all questions, and was applied in the following manner: each party nominates an equal number of arbitrators, usually two, and these elect an umpire; this last office is willingly accepted by persons of the highest standing. Since the questions laid before the board of arbitration mostly concern the relation of wages to the market price of coal, this relation has to be first ascertained from examination of the employers' books by a legally qualified auditor, before a decision can be given. The most important experimental method, which has so far been adopted for regulating the relations between the rate of wage and the market price, has been the sliding scale. The sliding scale aims at the establishment of a numerical ratio between the rate of wage and the price of coal. At first this was sometimes determined by the following method: five consecutive years are taken, in the course of which considerable fluctuations have taken place in the market prices and the price of coal (the latter brought about by strikes, agreements, and arbitration). These five years are divided into twenty quarters; the average price of coal and the average rate of wage for each quarter is ascertained, and by this means the numerical ratio of the two amounts to each other is determined. The average of these numerical ratios is taken to express the normal relation which must exist between the rate of wage and and the market price of coal. Upon the scale thus determined the average market price for all coal produced in the district for the last preceding quarter is reckoned. The required numerical normal proportion between prices and wages is now computed on this basis, and the rate of wage for the current quarter thus determined. This calculation takes place for every ensuing quarter. These calculations are made by two qualified auditors, who are appointed by the labourers' union and the employers' union. The books of all the works are submitted to these experts, who are bound to the strictest secrecy as to the information thus obtained. They confine themselves to the task of attesting: (1) that during the latest preceding quarter, the average price of coal in the district is such and such; (2) that such and such a rate of wage results therefrom. In this way the workmen obtain, without the necessity of negotiation, of strikes, or arbitration, the same wages which they could not otherwise have obtained except by repeated efforts. The numerical ratio between wages and market prices is generally fixed for two years. After that time each party may give a half year's notice; but during six years, the first sliding scale introduced has only been subjected to very slight alterations. Notice will shortly be given by the employers in Northumberland and the miners in Durham. Mr. Dale believes that this double notice does not aim at the abolition of the system, but only at revision of the existing scale. In the districts where for the moment the sliding scale has been abolished, an attempt is being made to take the nearest conjectural price of the current quarter as the basis, instead of the price of the previous quarter. In this way the workmen would receive official information as to the market prices, which would be a great advantage, for strikes are most frequently caused by the ignorance of the workmen as to the real position of the coal trade. As to local questions which do not affect the whole district, they are settled by so-called 'joint committees,' or mixed commissions formed by an equal number of workmen and employers; either the President of the county court, or some other person of high position, is chosen as chairman. These commissions meet generally once a fortnight; their decisions operate from the date of the complaint. Mr. Dale a.s.serts that the heads of the labour unions are, for the most part, intelligent men, and when this is the case, the relations between workmen and employers are easily arranged; in Durham, _e.g._, the miners union has four secretaries, who devote their whole time to the affairs of the a.s.sociation. In this district more than 500 disputes yearly are settled by the joint committee."

At the request of the President, Mr. Dale gave some information as to the strike of the past year; it did not affect the northern district where good relations existed, although notice had previously been given on the sliding scale. He further pointed out that former strikes had often been caused by the fault of the foremen, who treated the workmen with undue harshness. "The introduction of joint committees, on which the workmen are equally represented, has had the effect of establishing better relations between the foremen and the miners. Mr. Dale considers this the best system for the avoidance of crises. The decisions p.r.o.nounced by the board of arbitration, and by the joint committees, are generally accepted; thus the principle of decision by arbitration takes the place of that of decision by strikes."

FOOTNOTE:

[14] Concluding speech of the Prussian Minister of Commerce.

CHAPTER XI.

THE "LABOUR BOARDS" AND "LABOUR CHAMBERS" OF SOCIAL DEMOCRACY.

Of all the problems with which the science of government is confronted in the present and the near future, there are few in the domain of Social Policy of greater importance, or more fraught with serious possibilities in their results, than the establishment on a democratic basis, both in const.i.tution and in administration, of the organs of Labour Protection.

This tendency appears already in the demand for equal representation of both cla.s.ses in the organisation of Labour Protection. The establishment by local governing authorities of industrial courts of arbitration has been a step in this direction, a step which has not entirely been retraced by recent legislation in Germany, dealing with such courts.

The form which Social Democracy has given to this idea by the proposal of "Labour Boards" and "Labour Chambers," brought forward in the Auer Motion, is a matter of the highest interest. So far as I know, this form has received very little, or at any rate insufficient, attention in the Reichstag or the Press. This is the more surprising for two reasons, viz., the justice of its attempt at a better protective organisation, and the serious import of its evident tendency to evolve out of the Capitalist System a Social Democratic order of society.

I think, therefore, that just because of this extreme step in organisation which the Auer Motion takes in proposing Labour Boards and Labour Chambers, as instruments of Labour Protection, it behoves me not to pa.s.s it by with indifference, but on the contrary to dwell upon it at some length.