owners' statement
The Durham Coal Owners' Association feel that the time has come when they must press for a substantial reduction of wages. They are paying 35 per cent. above the standard rates, whilst the ascertainment of selling prices for the quarter ending September 30th last brought out results corresponding with wages only 23¾ per cent. above the standard. The excess measured in this manner is therefore 11¼ per cent.; but prices are continuing to decline, and this should also be taken into account in considering what reduction ought to be made. The last advance of 5 per cent. arranged in November 1890, to take effect from January 1st, 1891, was given in the expectation that prices were likely to rise; instead of this proving to be the case they have declined to an extent equivalent to a 5 per cent. reduction in wages, thus placing the owners in a worse position to the extent of 10 per cent. as compared with this time last year.
This is the smallest amount of reduction that the owners feel ought to at once be conceded, and they are willing either to accept this as an instalment of the relief that the state of trade imperatively calls for, or to submit to open arbitration the question of what change in wages ought to be made.
Lindsay Wood,
Chairman.Coal Trade Office,
November 27th, 1891.
The Board promised to place the statement before the members as soon as they had time to examine it, and at the same time they would send the employers a statement with regard to the application for an advance.
Nothing more was heard of the subject until the 19th of December, when the owners wrote to the Federation Board as follows:—
I am desired to ask you when the Owners' Association may expect the reply to the proposal as to the reduction of wages made to your Federation Board at the meeting on November 27th.
This was brought before the Board, when they suggested that the questions should lie in abeyance until the New Year, after which they would be prepared to arrange for an early meeting. On January 14th, 1892, the Board met the Owners' Wages Committee, when three propositions were handed to them—(1) An immediate reduction of ten per cent.; (2) to submit to open arbitration the question of what change in wages ought to be made; (3) to submit any proposal the Board might have to make to the Coal Owners' Association. Failing to receive an intimation from the Board at the earliest date that they accepted one of those propositions, then the Wage Committee must at once lay the position of affairs before their Association, and obtain instructions as to the steps to be taken to press for an immediate reduction.
These questions were at once placed before the workmen by the Board. They, in the first instance, said they did not consider they had the power to make any settlement, and therefore were compelled to take that course. Then they reminded their constituents that when the markets were advancing (and on sufficient reason being shown) the employers gave advances by mutual arrangement, and therefore that mutuality should be reciprocated. They hoped the members would not be rash nor doubtful, for these were dangerous and destructive to their interests. "We must meet these situations like business men. The greatest safeguard is confidence in each other, and, as in the past, we have done all we could to merit that confidence from you, so in this most critical period, if you entrust us with the care of this matter, we shall do all we can to bring about the greatest benefit for our various Associations."
There were three modes of settlement open to them: the first to grant the immediate reduction of ten per cent.—this they would not recommend; the second was arbitration; and the third to place the matter in the hands of the Board to negotiate the best settlement possible. They pointed to the last advance of five per cent., which was got so speedily by acting in the latter manner. Upon these three questions the ballot would be taken, the papers to be returned on or before February 3rd. The voting was: for accepting the ten per cent., 605; arbitration, 2050; Board to have power to settle, 7102; for refusing the whole, 41,887.
The Board then put in operation Rule 14, which gives them power to call the Committees of the four sections if they deem it necessary. They arranged for such a meeting, and laid before it an amended offer made by the employers: an immediate reduction of seven and a half per cent., or five per cent. immediate, and five per cent. on the first of May. If neither of these was accepted then notices would be given on February 27th. With these offers the united Committees sent out a circular. In it they supplemented the one sent out by the Board in January, prior to the last voting being taken, and they warned the county not to be deceived, because it was quite clear that the owners were in earnest, and resolved not to be put off any longer. The question had waited six months. If they accepted one of the alternatives the dispute would be arranged. If they chose a strike, then they must prepare for taking the consequences. On the 27th of February, the day upon which the notices were given, they met and decided:
"That all members of any of the four sections who have not received notice from the owners must put them in at once, except the collieries who are not associated with the Durham Coal Owners' Association, who must work on, providing their wages are not interfered with."
These instructions were altered three days after, and the members were informed that "all workmen, whether employed at associated or non-associated collieries, and who have not received notices, must give them in at once."