It may, for one thing, put an end to unionism, or render it much less important. It is pretty sure to interfere with the organization of industrial unionism, which might prove to be the road to revolution. While union leaders in England favor the idea because they can approach it on an equality with the employers, in America, union leaders fear it. Instead of stabilizing unionism as it is doing in England, here it is choking unionism out.
“Chattel-slavery,” said John Fitzpatrick, President of the Chicago Federation of Labor, when I mentioned the industrial conference. “A way to get men into such a position of humble obedience that they belong body and soul to their employer.”
What the I. W. W. has to say against it is worse. It is, whatever may be the means, easing off on the social unrest, and the I. W. W. thrives on discontent.
Big Industries Independent.
On the other side the heavy industries, coal, steel and copper, refuse to have anything to do with it. The United States Steel Corporation has not even an industrial manager. Similar great industries in Europe cannot take so independent an attitude, but here it is obvious that neither now nor in the immediate future can the great masses of factory workers get together and force recognition. They will eventually, of course, if the situation demands, but they are, on account of their lack of organization, for the time being helpless.
This makes the American experiments in “industrial councils” the more interesting. While they have been motived often by an expensive strike that set employers to thinking, the actual development of the system comes from a sense of the practical. It is also growing rapidly enough to make it appear American industry may be soon dominated by the idea. A year and a half ago there were perhaps fifty concerns working with shop committees. Now there are at least 700, and there may be many more.
Impersonal Capital.
To give a list of the important concerns is like reading the Stock Exchange list, General Electric, Westinghouse, du Pont, General Motors, International Harvester. These are concerns of a similar type. Most of the money invested is from the outside, mere impersonal capital. The managements have grown up from within the plants. The labor is in much closer human relationship to the management than the capital. If capital earns big dividends it is satisfied, but the other two elements, management and labor, live and work together every day. Once an industrial council is established reuniting the management and the workshops, it is rarely let drop. It eases up the day to day difficulties. No matter what system is used the daily contact is certain to avoid some strikes. There are three systems, generally speaking, in vogue:
To organize the industrial councils on the same plan as the Federal Government, with Senate, House and President the employees elect the House, the Senate is made up of superintendents and the President and his managers are the Cabinet. This plan is popular in the textile trades. It keeps firm control in the hands of the management.
A second plan, which also keeps the control firmly in hand is arrived at by the management asking the employees in a factory to form a “shop committee,” which will recommend, but has no vote.