Labour policy—false and true

by Lynden Livingston Macassey

The Strike of October 1920

Consistently from the beginning of 1920, the Miners’ Federation had advanced new wages claims—the complicated details of which will be found in the Labour Gazette for August, September, October and November 1920. They contended that their wages had not kept pace with the cost of living—that the coal trade was able to afford the increases claimed—that if wages had been nationally governed by price, as they used to be locally governed, either expressly or virtually, all districts would have received a considerable rise in wages. It was strongly argued that the Sankey National Award of 2s. was intended to improve the pre-war standard of living of the miners, and not to meet war-time increases in cost of living—a contention for which it is hard to see the justification. Negotiations broke down, and a miners’ strike began on October 18, 1920, and continued till November 4, 1920, when it was settled on terms agreed between the Government, the Mining Association and the Miners’ Federation. The first clause of the Agreement was as follows:

“(1) Recognizing that on the increased production of coal there depend not only the prosperity of all who are engaged in the coal industry, but also the welfare of the nation and the cost of life of the people, and having in view that this urgent need can only be met if the miners and mine-owners throughout the country work together cordially for this common purpose; and further, having regard to the necessity of setting up machinery for regulating wages in the coal trade so as to get rid of present anomalies and provide against future difficulties,

“The Mining Association and the Miners’ Federation solemnly pledge themselves to make every effort to achieve these objects.

“To that end they shall:

“(a) Co-operate to the fullest extent to obtain increased output, and for this purpose will arrange to set up district committees and a national committee;

“(b) Proceed forthwith to prepare a scheme for submission to the Government at the earliest possible moment, and not later than March 31, for the regulation of wages in the industry, having regard, among other considerations, to the profits of the industry, and to the principles upon which any surplus profits are to be dealt with.”

The Strike of April 1921

Prolonged negotiations then took place between owners and men under this settlement. These revealed a fundamental difference: the owners were claiming to return to the old district basis of wages; the miners were insisting on continuance of a national pool and the national settlement of wages as under control. No agreement had been concluded when all remaining Government control was terminated on March 31, 1921, by the Coal Mines (Decontrol) Act, 1921. In spite of failure to agree, both miners and owners indicated their willingness to do all possible to avoid a stoppage. A conference took place, on March 30, 1921, between both sides and the President of the Board of Trade, the miners asking for a continuance of Government subsidy to the industry as long as the then existing depression of trade lasted, but this the Government refused. The owners had previously issued notices terminating contracts of employment on March 31, and indicating the new terms upon which men would be re-engaged. Practically all the men ceased work in accordance with this notice, and refused to resume on the new terms. A stoppage of work took place from April 1 to July 4, 1921. On June 25, terms of settlement were arranged between the Mining Association and the Miners’ Federation which were accepted by the votes of a large majority of miners on July 1. This agreement (Parliamentary Paper, 1921, Cmd. 1387) was of a remarkable and far-reaching character. By it the miners dropped their claim for a national pool; provision was made for the constitution of a National Board, consisting of equal numbers of persons chosen by the Mining Association and by the Miners’ Federation, and of District Boards consisting in equal numbers of persons representing owners and workmen in each district—each Board having an independent Chairman. It was provided that (1) the proceeds in each district of the mining industry should be determined by independent accountants appointed by each side to check by joint test audit, the owners’ books; (2) standard wages for each district should be fixed on the basis of the district basis rates of March 31, 1921, plus district percentages of July 1914, plus percentage additions for piece-workers made on the reduction of hours from eight to seven; (3) minimum wages should be standard wages plus 20 per cent.; (4) for each district the total should periodically be ascertained for certain test periods of the standard wages, the cost of production other than wages, and standard profits at the rate of 17 per cent. of the standard wages. This aggregate should then be deducted from the amount of the district proceeds for those periods, and 83 per cent. of the surplus should be applied for payment in the district of an increase of wage above the minimum rates. But 83 per cent. might not be, and indeed in some districts has not been, enough to bring standard wages up to minimum wages. As against this contingency Parliament voted, on July 1, 1921, a subsidy which was not to exceed £10,000,000 to be used to prevent the reduction of adult wages in any district exceeding 2s. per shift during July, 2s. 6d. during August, and 3s. during September. £7,000,000 was actually expended under this arrangement.