BRITISH LIBRARY OF POLITICAL AND ECONOMIC SCIENCE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE r. l i -J ..J. / ~ • I 0 "'., S"J.F...,. I :c A K-1 j .., .J !.-.::. ..... ..1 !J..J 1 ... .r.:..l "11 __. Ci. D. II. COl [ ts Chic hcle Proft:'> or of Social ancl P > litic~tl Tl1 't'~r) at 0 rord anJ Pr ., itL nt or th abian So ·it.:t \' . A Bi t 'r TP .. C l ~() l -·-- } Thi..., r amrhlct is b.l cd in p.trt lH1 a t:>ric-.; l f artidcc;; whi ch appt:.l red in Trillfll( .t rl) in !l)5() . Til E fAn ! ' ·· St.lCt! 1 Y. I I, D.trtnwulh S r: ·t. ~.\\'. 1 No1c.-T hi\' flu11 f '·' :. I1A. c all pubI i cations ( t1'..: FA !?!A 1 ' .)0 1i 1 } ·, rL·pre ent. · not tire colic l i\ c \'icn· of t/.L .)·(wier_ but only the view of tl •:"i,fua! H'ho prepared it. The rc:spon~ibility ( 'ty i.\ lim 't r/ to ep,ll()\'l -? tla· puhlicatiol1 l.\.m ·• • ·ort/z of con. idcH lio.'l H'ith •ur lot," ,,. · I. • 0 ~ "'' 'I--H1 'u rv .iIS VI ADE U !OJ' G. D. . COLE 1. TI-IE \VAGES QU -S 'IOI~ -. ') T-IL -,0 b a1n with, i anything wrong? If the only purpos~ of a Trade Union ~ -is to trike the b,st possible bargain on its mcm r~' behalf in the matlcr wage , working hour~. and phy ica] conditions of employment, I do n t ink thcr i much ami s. The pre ent leader· of the Trad nion , by and ·ge, arc comp lent negotiators and hon st m n wh h av found them~clve tring t 1e pa t sixteen year -that is, since I 940,-in a p osition of unprece-. _n tccl bargaining strenath, but also in one of v r c nsiderabl difficult . It\ b en \ ithin ts1ei1 power at any tim , than s to full em yment, to .'act ~her wage and a horter workin k than they have actually attcmpt·'d · ecure; but in pra tice wha l they have cur~;d ha amounted to a qu~tchidt:rable improvement in real a well as in money wage , a moderate juction in lh length of the stan ar working ' c ', and ther'with an provem ·nt in overtime earnino-. I rnings isc A compar c with O ctober 1938, the last prvwar year, averag w e ·Iy ·ning_ in the indu trits cover d by th Ministry of Labour return· had ri en 242 p r c nt in April I9.55, and wage-rate :clu:ivc f overtime and pi c~; ··rk p.•yrncnt by abLut 145 pt..r ent. Actual hour w r ·ed had increased ::r the <:.elm~ p riou by rallr·r under ha lf-an-hour a.\\ c ·; but average hourly ·ning· hLtd irh:rc.ls._cJ by 2-W p'r cent -almo-..t a much~.... wee ·Iy carnin·~·-. inl b 'CLtll men, \\ ho a mor ... highly p.-tid , work m re crtim t un m n or ju cnilc . f cour-..t:, thc.... c i rLre.t-..~.., in mon~y wag~ h.1 t.: been largely c . .1n ell c1 higher l)'> t of II\ in~. Ac ordin" t the oftlcial in lic.~s, the o t of living by a.b 1ut :o r ·r c~nt b"t\\e ·n 193~ an l Jl).n t of II\ in~. Ac ordin" t the oftlcial in lic.~s, the o t of living by a.b 1ut :o r ·r c~nt b"t\\e ·n 193~ an l Jl).n c of profits, but on\\ 111 term-. \\ hich kad tn inflation Mtd thu b 1th increase living costs ' - and de -rc:a'-C e·q orh and the pl)\\t:f tn p.ty ft)r imp 1rt->. There is a ICIOll<> circle, whi ·It can be brL)ken only by a fundamental change in the economic system ac;; a w ole. ln fact, up to the pre. cnt, the majnr part of incrca ·eel productivity has been going, not into the spendable income. of the dividend receiver , but into investment either out of the reserved pr )fits of bu inc s or out of taxation used to finance public capital expenditure--for example, on houses, chools, roa s, and other pu 1lic .ef\'icc. . Thi expenditure i necessary-inde d, it ought to be much higher than it is if industrial equipment i to be kept p roperly up to date and social s rvice-are to advance at a satisfactory pace. The Trade Union leaders arc well aware that Great Brit~ in ca1 not afford to fall b"-hind in either of rhc">c respects, and th<.st until 'e have put a great effort into mec1 anising industri' 1 e uipmcnt an( ckvek1ping th~ capital eq tipmcnt of th social service. there cannot b ~ ntuch rL"'lOm for improving real wages, at any rak unless mean can be found of preventing e ery v..·ugc-incrca"e from r.d prcvcPt!on l.r rnt ;10 l l) pr.tc:i ·c , designed specific~ ly to being passed n to the consumer in higher prices. B·:t 11'1\V, ac;; nY\.tters stand to-day, can this be prevented? Not by Trade Ulli H, ~~.:~ion; fc):the Umun'> rpvc: no contro over prices. O nly by trict pnc ·-L: )!ltrol"> c. WHAT IS W ONG WITH TI IE 1 RADE UNIONS ? squeeze the profit-makers and explicitly limit dividends and keep clown interest rates. It cannot be done at all under the,_ o-called 'free economy' which the Torie. have been trying to bring back ince their return to office in 1951. Moreover, even if price· and monopolies were brought under etTective control, the need would rcmain to invest, in. teacl of spending on con ·umption, a very large part of the total product: so that working-class, as well a other, spending would have to be held down in order to enable the British economy to bring its methods thoroughly up to date. The great difference would be, not that the wage-e:uners could have much more to spend in the irnmcdiate futur'-, but that the benefits of higher productivity, as they are ;,c!Jievcd, could be passe on to the workers instead of being approvriatt:d by capitali-t inve tor. throu h reserved profits, as they are at pr sent. ce in~ U iJ the }lressure Trade Union leaders, whose business it is to have such facts as these in mind, cannot properly b blamed for not havino pre sec hard for the highe-:.t wage they could exact at the cost of letting inflation rip; for erious inflation would hit the wor ·er. a elisa trous blow. The leaders, however, cannot afford . ' on this orouncl to refrain from wage-pres ·ure that \Vill at any rate prevent the wor er ' share in the total of personal incomes from actually falling off. They have at lea t to meet any mea ure which threaten this-e.g. the Tories recent financial manoeuvres with equivalent vvage-clemands; and any failure to do this would soon lose them their members' confidence and lead to a ran ,and- file revolt. I do not, however, feel that they can be char ed, so far, with any grave failure on thi account. T hat i, not to say that I believe the leadership of the Trade Union's to have been equally wise in other re pects. Subsequent sections of this pamphlet will _'how 'here I thin, it ha gone rung. \-Vhnt I 1:1 sa ·ing in tni:; o 'ening section is t at in respect of . gcs the Tn de Unions have mar !1°C< tn ho p .to 110\''t' t e su stan'-ia acvantag s gainc during the war yc~1rs, an cou d ot have t.m n uc : 2Hcr .than t 1is un ess there h3 be n a fro~1t::.. rtc n ca·Jitalism as a sysl.em---an nttac ( rc iring po itical '.l"lcti.on of a drastic odaHs ldn . 2. I-IA'T IS RIGI-IT vVITl-I I'HE TRADE UNIONS EFORE I begin di~cussino what I believe to be the shortcominP"s of the Trade Union movement I want to make clear that I have a deep admiration for its achievement ·. o mov ment in the country elicits from it mem crs anythimr :lpproaching the same amount of devoted voluntary -:;ervice or· acts high a proportion of its c ·~ential work done by volunteers ho lab ur for it because they believe in it and without any pro p ct of ·per ·onal ad antage OVt.::l their fellow-member . othing that I all have to 'ay about the widcspr .t apathy am ng Trade Unionists i.' inCl)nsistent \\ ith this notable f;tct, on \\hid1 the strength and vitdlity of th~ ntire mo\cOPiit \\ l I \T ~~~ \\ t{(J~Ll I,TfH T! IE '! R \DE NI001. ? dep~n l. Hmvc'v er well the paid offki.:ds serve their Unions-and the great m 1jority of them arc C()tllpetcnt. hardwor ·ing and faithful st.:rvants of their munbcrs--thc b:tsis of Trade Cnivn pO\\ r is in the unpai cay-to-day ser ·ice of the lc'..:~tl adi\ i'ts \v!to :1tt ··nd branch meeting', . crvc as hop steward~ CL)mmittec mcm Y'rs, and take the trouble to under 'tand how their Unions ""·ork. and to maskr the problems\\ ith which they arc rt.: uired to deal. 1'v1L st of these activi ·ts, I rejL icc to ay, arc animated by loyal y, not only to th ir own Unions, but to the wider wor · ing-clas · movement a wt:ll. They :He Socialists · s \Vcll as Trad Unionists, and play their part politically as well as on the work.shop t1oor. They have every rca ·on to be proud of \ 'hat they have achicv 'd; and the shortcomings of whi ·h I ·hall have to spea, are not at all their fault. It i larg ly owing to them that the Trade Unions have b"en abk so greatly to add to their po\\ er and prestig during the year~ since 1939; and I h:1ve nothincr but praise for them. ut~if) ~u·ng Ac Jicvch1~.·-ts Trade Union oftl.ciab to de er 'C on th whole to be congratulated on their uccessfuJ efTort · to imprL) ~~ the tatu · and conditions of the organised wor ·ing class. M personal memory goe bac-not only to the bad time· of . the depres:i· n in tl e 1930s, but furth r to the year of· Labour unrest ' before the \Vorld war of 191-l. Nowad· ys I occasionally hear youno-Trade Unionists, who have no clear memory o[ either of these periods, denying that there ha~ been ·my re~d improvemnt in the condition or the: \VOrkers, or even sur.g .... sting that it has got worse be 'au~e of the increasing' contradictions ' of capitali..;m. \Vhat nonsense! Since 191--J., and inc ccd since 1939, there ha · been an enormou · improve- m~.;nt in the posi ion of the worker:::., not only in re. pcct o( standards f living, but even more in o 'ial and economic status; and with this has gone an imrnense advance in Trad"' Union pO\\ er and pre;:,ti0 t:. What above all else haq made these advance· possible has been full employment, which has ior..:ed the employing cia'>:::. to treat the worker with much greater consideration (or fear of losing his services and not being able to repbce him, and ha thus radic needed for winning pO\\ Cr and for preventing the great gain of tbc pa,:,t two decade-frorn being frittered a\'vay. WHAT IS RONG WJ1H TH£ R\DE tJ. 'IO.L ? 7 3. APATI-IYC:AND CE:t'fTR ALISATION ~ HERE are at present about 9} million Trade Unionists, of whom more than 8 million arc afliliated to the Trades Union Congrc~s, a"i compared with 6 million and 4~ million in 1938. The number of Trade Unionists has thus increa cd by more than one hal[, v.hcreac:; the number of Trade Union-s has been fallin(Y sharply-in the T.U.C. from 216 in 1 93~ to lRJ in 1955. Individual Unionc:; have been getting bigger, ac:; a cons~quencc both of amalgamations and of successful recruiting of new members. Over the same period, Trade Union bargaining has been gettin(Y more centrali">cd, as well as spreading over a wider fl eld. ran-·h Interest Lost In mo:.;t induc;tries to-day, wage-rate and general conditions are settled by nation-wide bargainin or arbitration, which applic to large masscc:; of workers. Thi~ type of bargaining is ncces arily done by quite small groups of full-time national official· and executive r1\cmber , o that the local branches ancl . hop organi ·at ions of the workers have only a remote part in it, though the member may be called upon to vote for or aga inst a particular agreement, eith r directly by referendum or through some sort of delegate onference. The result is that the average Trade Union branch or district has much less say than it u cd to ha in bargaining about such matters and has come to deal much le with the fixing of \vage-ratc and general working conditions than with applying national agr em nt · to local circumstances and traditions. Such application, moreover, ha · toy be done largely in each separate establi ·hment, throuoh shop steward and shop committee., rather than in a whole town or di trict: so that the branch or the district committee has lost power both to the centre and to the wor ·place organisation-abo c all, in engineering and in coal-minino. T he e changes tend to make branch meetings both less important an les interc. ting than they used to be when bar ainin(Y was larg ly local and a go-ahead branch or district committee could affect local wa (Yc and condition · much more directly than it can to-day. The ri:e in membership has had another irnportant efiect. Trade Unions, v. hen they had fewer member ·, con i ·ted ITHlinly of those workers who were keener and more active than the re t. But no\.vadays a great n1any wor ·er belong to a Trade Union not b cause they are keen on it but becau c tltcy have to in order to get ~r hold their jobs. It is a natural consequence that the pro ortion of apathetic members has increased. Dcvo ution 0 c Answ 'l' Thirdly, it mu t n l be forgotten that Trade Union·, like many other boclic., have to face the competition of many m 1re ri al attractions than \Vere open to their members in past years. Trade Union bran h meetina need" to be more intere ·ting and important th"m fonn~::rl in order to induce more t an ,., ' ~ ... n ... • a. Pf-'~·E:~ _'CU PI" t H'HLr;:f'·; 16 7 CoLO.. 1.\L -r !Z \DI·. uI 1!0, 1S \Valtcr D wen. 1/ 6 16R rv·. Clllt 'I RY OF Pee.. ·o: llC POL1L Y. Robin :rvran i'. 2/6 IGtl REl ORM OI· T!I E LOt..D3 Lord Chorle ', Bc:rn:ud Cric ·, D. Chapman. 1.P. 2/ 170 P OLICY I·OR THE BUILnlNG { NDUS'T .!"?. ,· Kenneth Albert I I 171 NEW ~ .f~NSIONS [·OR THE O LD Brian Abei-Smith a11d Peter T ov.nsen 1/ 6 172 T HE N ...-V TOWNS. Norman 1-.Iac :r"nzi~ l/6 173 /\ Soc! ALJS r EoucATI00! roucy H. D. Hughes l /6 174 RENT' A :0 SoriAL Poll Y David E cr"~ ~Y· 2/ 175 FOOD P OLICY I'\ orman \Vood 1/ 6 176 P LA:---. roR ·r ilE :\Ir'CRAf· r l,...;ou. ·rR Y Frank Be. \Vick, LP. 1I 177 T HI.:. F TUIZE 0 -: RETA lUK'G Richard Evcl) 2/6 J7'f: h , 1.\:":CL 'G LOCAL GOVLR0:~!1?:'\ l A. H. Hanson 1 16 -. 179 T HE \Vr:.sT l NDL\1 • JN BRJ r I'\ Clarence Senior and Dougb ).1 P LA'r I·OR SmPuun DING f·. T . Willey; Ivf.P. { \ 300 SocJAJ I~ , AND NATin;"AUS-\ no:-~ · Hugh Gaits 'ell, }.l.P. 2/ . j 0 •· >: 1 i.t lt>n.lon by Dt·lunpurl l'rcYS I it[. H'l:! '