A History of the Durham Miner's Association 1870-1904

by John Wilson

1898

The Wages Question—The Compensation Act

The uncertainty which the Federation Board had pointed out as the inevitable result of the abolition of the Conciliation Board soon made itself manifest. There were continual demands being made upon the Federation Board to seek advances, but they felt how difficult it was to get reliable data upon which to found a claim. On March 22nd they gave the county an account of an interview they had with the employers on the 12th of that month. The suggestion as to the claim for an advance being made was not supported by any data, and when they met, the employers pointed out that the indications were in the direction of depression more than the expansion of trade, and therefore the Wage Committee could not recommend to the owners to concede an advance. That refusal the Board advised the workmen to accept until there was some better trade prospects.

"Like prudent men, and, acting upon the lines you would have us proceed upon, we are convinced it will be more hurtful than useful to initiate or press a demand for an advance unless the state of the markets warrant such a course."

Another meeting on the wages question was held on May 25th. A strike took place in South Wales in the beginning of April, the effect of which was felt in an increased demand for the class of coal produced in this district. Their supply being cut off consumers turned to other sources, and as a consequence there was a natural feeling of unrest in Durham among the workmen. They had the impression that the whole of the produce of the county would be affected by the demand, and therefore the increase in price would be an all-round one. The Federation Board met that "false impression which we fear rests in the minds of many of our members" in a statement they sent out on the 26th of May. They pointed out two very important considerations, which the generality of members would lose sight of. There was a large amount of coal sold under contract, which would not be affected by the temporarily increased price, even if all the output of Durham had been steam coal, but it must be remembered that only nine per cent. was of that class. They then gave a calculation to show how a rise on a small percentage would affect the whole. The steam coal being the only part feeling the increase, and that class forming only nine per cent. of the total, what would be its universal effect?

"Without contending for the accuracy of the quantities let us give a calculation which may suggest a key to the position. Of the nine per cent. of steam coal let us suppose two-thirds of it was sold under contract at a normal market price. We should then have only three per cent. of the entire output getting a higher price. Let us further suppose that this three per cent. secured an advance in the abnormal state of the market of 6s. per ton during the strike; we should only have realised a general increase equal to, say, 2.16d. per ton over the whole of the coals produced."

Considering, then, the purely temporary nature of the rise in price the Board agreed to accept an advance of five per cent.—two and a half on basis rates under the usual conditions, and, with the view of meeting the exceptional circumstances, a temporary advance of two and a half for six pays. The advances were to date back for a fortnight in each case, the understanding being that if the prices fell at the end of the six pays the temporary two and a half would be discontinued. On July 22nd the Board met the employers, when the temporary advance was continued for other six pays. A subsequent meeting was held on October 29th. The employers offered to increase the temporary advance of two and a half to five for a further period of six pays. The Board was willing to take the five per cent. if it were considered a permanent advance. The settlement agreed to was an advance of two and a half, and a continuance of the temporary advance of two and a half for six pays more.

THE COMPENSATION ACT

During the Parliamentary session of 1897 the first Compensation Act was passed. The date of commencement was fixed for the 1st of July 1898. While the Act was under discussion the representative of the Durham Miners in Parliament urged strongly that, not only should facilities be given for the formation of Committees, but means should be adopted to induce employers and employed to take steps in that direction as a means of avoiding the friction and litigation which the new law involved. The idea of a Compensation Committee was from the very commencement very favourably received by the members of the Association, and the employers were as desirous on their part to join in the endeavour. There was a natural desire on the part of the Permanent Fund officials to formulate a scheme to strengthen their fund. It was found that the attempt between the Trade Unions of Northumberland, the Federation Board, and the Permanent Relief Fund to arrange a Scheme was a failure. A number of meetings of Joint Committees and Sub-Committees, representative of the various Associations, and between those Sub-Committees and the Employers, were held. The failure arose from the character of the proposition—that there should be an Insurance Fund, which would take over all the liabilities of the owners, and insure all the workmen, which, said the employers, was the primary condition. The Miners' Executive in Durham could not accept such a scheme, and they turned to the formation of a Committee representative of their Association alone, and the owners. Negotiations went on with the owners, and finally the Executive Committee asked for full power on lines which they indicated. This the county agreed to give, and an agreement was come to in time for the commencement of the Act on July 1st. The system of class average obtaining in the county lent itself to the formation and working of such a Committee. This the men readily adopted, and it was another illustration of the hold mutuality and compromise had on the men of the county as a whole. Some men would have made above the average wage, and have worked more than the agreed number of days, and as a consequence their compensation would have been greater, but it would have entailed a large amount of labour if it had been on an individual basis. But by the Committee arrangement the system worked automatically. In the formation of the Compensation Committee Durham stood alone. There was nothing like it in any other district or trade, and its action was of the greatest benefit to employers and workmen alike.