Labour policy—false and true

by Lynden Livingston Macassey

Following the Armistice, the National Union of Railwaymen gave notice to terminate the truce agreement of October 1914, but early in December 1918, the principle of an 8-hour day[13] was conceded by the Government for all members of the wages staff as from February 1, 1919. In March 1919, an agreement was made between the Government, the Railway Executive Committee and the Unions which provided for increased rates for overtime, night-duty and Sunday-work, but provided for stabilizing other wages till December 31, 1919. An important provision was contained in it providing for a continuance of negotiations to standardize rates so that all men throughout the country doing the same work under the same conditions should receive the same rate of wages. This agreement also provided for the setting up of a joint committee consisting of representatives of the Railway Executive Committee and the two Unions concerned[14] to deal with questions of pay and conditions until “some final arrangement is arrived at in regard to the future position of railways.” The agreement stipulated that “when the new Ministry of Ways and Communications is set up it is the intention of the Government to provide in the organization for, and avail itself fully of, the advantage of assistance, co-operation and advice from the workers in the transportation industry.” Standard rates were agreed between the Government and the two Unions for drivers, firemen and cleaners by an agreement in August 1919, and negotiations were continued to standardize the rates for other railwaymen.

The Railway Strike of September 1919

The Government’s proposals for standardization were rejected by the Unions, who precipitated a strike, on September 26, 1919, on the railways throughout Great Britain. Terms of settlement were signed, on October 5, 1919, providing for standardization at the then existing level of wages up to September 30, 1920, and providing that no adult railwaymen in Great Britain should receive less than 51s. per week so long as the cost of living was not less than 110 per cent. above pre-war level. Work was resumed on October 6. Subsequently an agreement was made between the Government and the two Unions that, apart from the wage negotiations then in progress, questions of wages and conditions of service should, during the remainder of the period of control under the Ministry of Transport Act, be dealt with by a Central Board consisting of five railway representatives and five representatives of the two Unions. Failing agreement by the Central Board, disputes should be referred to a National Wages Board consisting of four railway managers, four railway workers or their representatives, and four users of railways, one nominated by the Parliamentary Committee of the Trades Union Congress, one by the Co-operative Union, one by the Federation of British Industries, and one by the Associated Chambers of Commerce, with an independent chairman appointed by the Government. The agreement also provided for Local Committees, to which matters of local importance would be referred. The Railway Executive Committee became unnecessary in view of the Ministry of Transport Act, 1919, and a new Advisory Committee was set up, consisting of twelve general managers and four representatives of the workers.

The Wage Agreement of March 1920

As a result of the negotiations, an agreement was completed on March 20, 1920,[15] providing for standardization of rates of pay, for wages to rise and fall according to cost of living, and for a standard rate below which wages should not fall. This is one of the most important industrial agreements. The principle of the arrangement was as follows. There were many classes of men on different railways graded by different names and receiving different rates of pay although doing substantially the same work. These various classes were reduced into a small number of specified grades. Further, in regard to certain grades, the country was divided up into sections, for example: (1) London area; (2) provincial, industrial and mining areas and large towns, and (3) rural districts. Then, on a system of averages, the mean pre-war weekly rate of pay of the men of a particular grade on all the railways in a particular section of the country was ascertained; to that a sum of 38s. as war-wage was added. This combined sum was to form, as from January 1, 1920, the wage to be paid as long as the cost of living remained at 125 per cent. above pre-war cost of living. For every five points rise or fall in the cost of living there was to be an increase or reduction of 1s. per week. Standard or minimum rates were fixed representing generally 100 per cent. increase on the average pre-war rates of the respective grades. These were rates below which wages would not fall, however much the cost of living might go down. This agreement provided on a more fully developed basis for a Central Wages Board of ten members, five representing railway administration and five the Unions, and for an appellate or National Wages Board of twelve members, four representing the railway companies, four the Unions and four the users of the railways, with an independent Chairman appointed by the Government. In promulgating the settlement the Government made this announcement: “In dealing with questions of wages it has been kept clearly in view by the Government that some addition to railway wages was due before the war, and that the claims of the railwaymen to a higher standard of remuneration were only then postponed because of the country’s necessities.” After this agreement certain claims for improvements in pay and working conditions were submitted by the Unions to the Central Wages Board, and, on the latter’s failing to agree, referred to the National Wages Board. The Board by a majority agreed that certain advances of wages should be given, but they said they could not be justified on the ground of increase in the cost of living as that was provided for by an automatic advance under the sliding scale. The Government agreed to the advances being given.

The wages, therefore, of railwaymen in the conciliation grades consist of certain rates agreed upon in March 1920, which represented the average pre-war weekly rate of pay of the men in any grade or group of grades, plus 38s. per week, together with further increases ranging from 2s. to 7s. 6d. per week, or 2s. to 8s. 6d. in the case of signalmen, granted in June 1920, by the National Wages Board, the whole being subject to variations under the sliding scale, whereby there is a reduction or increase of 1s. per week for every fall or rise of five points in the cost of living as shown in the figures published by the Ministry of Labour. Adjustments in the bonus due under the sliding scale are considered by the Central Wages Board. A difference arose in regard to the operation of the sliding scale, and a modus operandi was agreed on by the Central Wages Board which is described in the Labour Gazette of April 1921.

The Railways Act, 1921

On August 19, 1921, the Railways Act, 1921, was passed, and Section 62 provided that, as from the date when the railways ceased to be in the possession of the Minister of Transport—which was August 15, 1921—and until otherwise determined by twelve months’ notice, such notices not to be given before January 1, 1923, all questions of wages, hours and conditions of railway servants should, in default of agreement between a company and the Unions, be referred to the Central Wages Board, or on appeal to the National Wages Board. The Act reconstituted both Boards, and provided that the Central Wages Board should consist of eight representatives of railway companies and eight representatives of the railway employees—four appointed by the National Union of Railwaymen, two by the Associated Society of Locomotive Engineers and Firemen, and two by the Railway Clerks’ Association. The National Wages Board was provided to consist of six representatives of the railway way companies, six representatives of the railway employees—two appointed by the National Union of Railwaymen—two by the Associated Society of Locomotive Engineers and Firemen, and two by the Railway Clerks’ Association—and four representatives of the users of railways—one appointed by the Parliamentary Committee of the Trades Union Congress,[16] one by the Co-operative Union, one by the Associated Chambers of Commerce, and one by the Federation of British Industries, with an independent Chairman nominated by the Minister of Labour. The Minister has nominated Sir Wm. Mackenzie, K.B.E., K.C.—the President of the Industrial Court.

The Railway Conciliation Machinery of 1921

The Act further provided that councils on the lines of the Whitley Councils should be established for each railway company on the general basis of schemes to be prepared by a committee consisting of six representatives of the General Managers’ Committee of the Railway Clearing House and six representatives of the National Union of Railwaymen, the Associated Society of Locomotive Engineers and Firemen, and the Railway Clerks’ Association. These schemes, which have now been prepared, provide for: (1) local consultation; (2) local departmental committees; (3) Sectional Railway Councils, and (4) Railway Councils. At stations or depôts with a number of employees in a department or group of grades less than seventy-five, such employees are to be entitled to appoint representatives to discuss local matters with the Company’s local officials. At stations or depôts where the number exceeds seventy-five, a committee is to be set up, consisting of not more than four elected representatives of the employees in the department or group of grades concerned, and not more than four representatives of the company. The objects of the local committee are to provide a recognized means of communication between the employees and the local officials, and to give the employees a wider interest in the conditions under which their work is performed. A local committee is to discuss: (a) suggestions for the satisfactory arrangement of working hours, breaks, time-recording, etc.; (b) questions of physical welfare; (c) holiday arrangements; (d) publicity in regard to rules; (e) suggestions as to improvements in organization of work, labour-saving appliances and other matters; (f) investigation of circumstances tending to reduce efficiency, and (g) the correct loading of traffic to ensure safe transit and the reduction of claims. Before a matter is discussed by a local committee it must first be submitted by the employees to the officials of the company in the ordinary manner, but, failing a satisfactory reply within fourteen days, it may be reported to the secretary of the employees’ side of the committee. The company in the same way must exhaust the constitutional machinery.