§ 134d reads as follows: “Before the issue of the working rules or of an addition to the rules, opportunity shall be given to the workers in the factory to express their opinion on the contents. In those factories in which there is a standing committee of the workmen it will be sufficient to receive the opinions of the committee on the contents of the working rules.”
It is further recommended that the factory rules shall include the publication of legal enactments regarding protection by limitations of employment, protection in occupation and in intercourse, the necessary conditions and limitations of these, the possibilities of appeal, and methods of payment of overtime wage, also of instructions for precaution against accidents, and lastly of the name and address of the club doctor and dispenser, of the company and their representatives, the name of the factory inspector and his office address and office hours.
But we have seen that contract protection is not only afforded by these formal regulations but also by judicial rulings on special cases. These latter have a threefold task: to prevent the drawing up of unfair contracts, to supply deficiencies in the contract, by adding subsidiary rulings suited to the nature of the industrial service relations, and lastly, to secure the fulfilment of service contract; i.e. they have to provide protection by limitation and completion of contract and to secure fulfilment of contract.
This kind of protection of contract is of special importance in dealing with contract fines, proportional output (“efficiency work”), the supply of tools and materials of work, and lastly with payment of wage.
Labour Protection seeks to guard against abuse of contract fines, by fixing the highest permissible amount of fines, and by handing over the proceeds of the fines to the workmen’s provident fund. This is a matter of the highest moment, and must find a place in the drawing up and in the enforcement of the working rules (see above). Hitherto it has only been extended to factory labour.
A second task of protection of contract lies in the protection of “efficiency work,” i.e. protection of the wage-worker against an undue deduction from his “efficiency wage” on account of the alleged inferior quality of the output, and against neglect to reckon in the full amount of the output in the calculation of wage. This measure of protection has been placed on the orders of the day of the present labour protective movement, by the adoption e.g. of the system of checking the weight of the output in mining.
In the third place we come to protection of the workman against loss sustained in buying his tools and materials of work from the employer. This measure of protection in purchase of materials is applied to the whole of industrial labour by means of its insertion in the general rules for truck protection contained in the Imp. Ind. Code.
A fourth point, very closely allied to protection of intercourse, but which has to be dealt with protectively by those judicial rulings on protection of contract, concerns the permanence of rate of wage, the day, place, and period of payment, and by whom, and to whom, payments are to be made. Protection of payment may be more completely secured by the inclusion in the working rules of directions on these points. It must be applied to the whole of industrial wage-labour according to circumstances. The prohibition of payment of wages in public-houses and on Saturdays, the fixing of the wage by the employer himself, not by a subordinate official; the obligation to make the agreement as to “efficiency wage” at the time of undertaking the work, in order that the bargain may not be broken off should it prove specially favourable for the workers; also payment of wage at least weekly or fortnightly; and lastly, the payment of minors’ wages into the hands of parents or guardians, which constitutes a measure of educational protection of the minors against themselves—such are the principal requirements of protection of payment of wages, requirements which are already more or less fulfilled.
[13] That is, after the largest portion of it.
If the various chief branches of Labour Protection are compared with each other after they have all been examined separately, they appear to be indispensable and inseparable members of one system, for no one branch can be spared. But they are very different in nature, and by no means equal in importance.
Protection of truck and contract have long ago reached their full development. Both are almost universal in their extension, and are exercised by the regular administrative courts and petty courts of justice. They are characterised on the whole by legal precision, which affords little room for interpretation and extension at the will of the administration. Protection of contract and protection of intercourse are required less in the immediate interest of the whole State than in that of individuals.
But when we come to protection in occupation, it is altogether another matter.
Protection by limitations of employment, which forms the central point of the latest protective movement, is in all its aims more or less in contrast to protection of contract and intercourse. It is not a matter of universal application. It requires special administrative organs, special methods of procedure with many technical differences of detail adapted to the peculiarities of different trades. Its full development requires general legal enactments, a central authority, and a uniform exercise of administration; it has to deal with the entire working class, nay more, with the whole body of citizens, and with the spiritual as well as the material life of the workers and of the nation, because it constantly affects and influences the lives of larger masses of labourers.
It must not be supposed that any one branch of protection by limitation of employment is more important in itself than all the rest. It is not protection of holidays alone, nor the maximum working-day alone that will restore the workman to himself, to his place in the human family, to civic life, to his family, to the performances of his spiritual duties; but all measures of protection by prohibiting and limiting employment must work together to effect this. Protection by limitation of employment, as a whole, seeks to ensure those moral benefits so finely emphasised in the preamble of the Confederate Factory Act: “The benefits which may accrue to the country from the factory system depend almost entirely upon its being ensured that the worker shall not be deprived of time or inclination to be the educator of his children, and the head and prop of his family.” The maximum working-day effects this by securing the evening free to all—to fathers, mothers, children, and young people. Protection of holidays works towards the same end by securing to everyone the seventh day free for his own life, the life of his family, and intercourse with his fellow citizens, and for the performance of his spiritual duties. Prohibition of night work also contributes its quota towards the same result. Without all this protection by limitation of employment, the father of the family would lose his family, the child would lose its training and care, the mother and wife would lose her children and husband; and all of them would lose their joint life as citizens, as members of society, and of a religious community.
It is from these considerations that we must justify the immense importance which it is the growing tendency of Labour Protection in the present day to attach to the whole question of protection by limitation of employment.
The demand for a legal minimum wage, for wage tariffs, and the sliding scale of wages, form no part of Labour Protection. The State cannot, as we have seen, regulate wages directly, but only indirectly, by favouring an adjustment of wages that shall be fair to each side. But even in measures of that kind it does not interfere for the purpose of protecting the persons of the wage earners in their relations of dependence on the employer. Politico-social proposals for indirectly influencing the movement of wages, do not for this very reason, belong to Labour Protection, in the sense which I have assigned to the term in this book. Therefore, I shall content myself, on the one hand, with clearing up a misunderstanding concerning the minimum wage and the wage tariff; and on the other hand, with supplementing my former contribution to the subject (Jahrg., 1889, Die Zeitschrift für die gesammte Staatswissenschaft) from the reports of the Berlin Conference, having special reference to the regulation of wage in the English mining industries.
These proposals, dealing with minimum wage and the wage tariff, which I shall now introduce into my treatise on Labour Protection, do not aim at enforcing a minimum rate of wage from above, regardless of the individual value of the labour, they merely aim at providing as far as possible a stable adjustment and classification of efforts and rewards between the whole body of employers and the whole body of workers in any branch of industry or industrial district, i.e. at substituting general for individual control, for the protection not of the worker alone, but also of the employer, i.e. against exploiting competitors. In Germany the printers have led the way; the number of their followers in other industries is increasing. But this is a matter that must be settled by the two classes, not by the State.
Questions of wage policy, however, even when unconnected with protective policy, are often drawn into discussions on protective policy; and even the Berlin Conference, which was officially designated[14] “an international conference on the regulation of labour in industrial establishments, and in mining industries,” frequently overstepped the limits of questions of purely protective policy. I feel myself fully justified, therefore, in touching upon a few of the further questions dealt with by the Conference.
In an earlier treatise, written before the proclamation of the Imperial Decree of February 4th, 1890, I pointed out the need for the special cultivation of Labour Protection in mining industry, particularly in coal mining, and I expressed an opinion as to the advisability of establishing government mines as a kind of politico-social model to the rest; while, on the other hand, I declared against the necessity for the nationalisation of coal mines.
Pamphlets of an opposing tendency, which circulated freely in the wake of the great coal strike of 1889, have, it is true, brought to light more and more reliable evidence; but hitherto I have found in them nothing to shake my confidence in the correctness of my fundamental contention: as far as I am concerned, I await without anxiety the issue of the latest Coal Trust.
As I pointed out in the same treatise, the special danger of the strike agitation, attacking as it does the very centres of activity and channels of healthy movement in the social body, has unfortunately been only too fully exemplified. The coal strike, and the railway and dock strikes, have become samples, and are triumphantly quoted as typical instances of the success of the method.
In the same treatise I raised the question whether the branches of industry under consideration should be constituted a department of the public service, involving special obligations and special safeguards against breach of contract, but also ensuring special security of work and a good standard of pay. This question has also risen to a high level of importance since that time; it does not, however, belong to the sphere of Labour Protection, and in this treatise I must therefore leave it on one side.
But I consider myself bound to supplement the information given as to the means of avoiding strikes in the mining industry by bringing forward the communications made by the best informed English expert, who sat in the Berlin Conference (session of March 4). The reports read as follows: “Mr. Dale reminded the Conference that about twenty-five years ago numerous and protracted strikes took place in the north of England (in mining). In consequence of this, the employers met together to discuss means of regulating the wage question. At first they refused to treat with the workmen in corpore, but they finally decided on the advice of a few of their number more far-seeing than the rest, to recognise the union of miners belonging to one and the same mining district. This principle once admitted formed the groundwork of the prevailing system of the day for the settlement of all disputes. This method has obtained for twenty years. At first the representatives of the employers and workmen were only summoned to negotiate on special questions. The principle of settlement by arbitration was admitted in all questions, and was applied in the following manner: each party nominates an equal number of arbitrators, usually two, and these elect an umpire; this last office is willingly accepted by persons of the highest standing. Since the questions laid before the board of arbitration mostly concern the relation of wages to the market price of coal, this relation has to be first ascertained from examination of the employers’ books by a legally qualified auditor, before a decision can be given. The most important experimental method, which has so far been adopted for regulating the relations between the rate of wage and the market price, has been the sliding scale. The sliding scale aims at the establishment of a numerical ratio between the rate of wage and the price of coal. At first this was sometimes determined by the following method: five consecutive years are taken, in the course of which considerable fluctuations have taken place in the market prices and the price of coal (the latter brought about by strikes, agreements, and arbitration). These five years are divided into twenty quarters; the average price of coal and the average rate of wage for each quarter is ascertained, and by this means the numerical ratio of the two amounts to each other is determined. The average of these numerical ratios is taken to express the normal relation which must exist between the rate of wage and and the market price of coal. Upon the scale thus determined the average market price for all coal produced in the district for the last preceding quarter is reckoned. The required numerical normal proportion between prices and wages is now computed on this basis, and the rate of wage for the current quarter thus determined. This calculation takes place for every ensuing quarter. These calculations are made by two qualified auditors, who are appointed by the labourers’ union and the employers’ union. The books of all the works are submitted to these experts, who are bound to the strictest secrecy as to the information thus obtained. They confine themselves to the task of attesting: (1) that during the latest preceding quarter, the average price of coal in the district is such and such; (2) that such and such a rate of wage results therefrom. In this way the workmen obtain, without the necessity of negotiation, of strikes, or arbitration, the same wages which they could not otherwise have obtained except by repeated efforts. The numerical ratio between wages and market prices is generally fixed for two years. After that time each party may give a half year’s notice; but during six years, the first sliding scale introduced has only been subjected to very slight alterations. Notice will shortly be given by the employers in Northumberland and the miners in Durham. Mr. Dale believes that this double notice does not aim at the abolition of the system, but only at revision of the existing scale. In the districts where for the moment the sliding scale has been abolished, an attempt is being made to take the nearest conjectural price of the current quarter as the basis, instead of the price of the previous quarter. In this way the workmen would receive official information as to the market prices, which would be a great advantage, for strikes are most frequently caused by the ignorance of the workmen as to the real position of the coal trade. As to local questions which do not affect the whole district, they are settled by so-called ‘joint committees,’ or mixed commissions formed by an equal number of workmen and employers; either the President of the county court, or some other person of high position, is chosen as chairman. These commissions meet generally once a fortnight; their decisions operate from the date of the complaint. Mr. Dale asserts that the heads of the labour unions are, for the most part, intelligent men, and when this is the case, the relations between workmen and employers are easily arranged; in Durham, e.g., the miners union has four secretaries, who devote their whole time to the affairs of the association. In this district more than 500 disputes yearly are settled by the joint committee.”
At the request of the President, Mr. Dale gave some information as to the strike of the past year; it did not affect the northern district where good relations existed, although notice had previously been given on the sliding scale. He further pointed out that former strikes had often been caused by the fault of the foremen, who treated the workmen with undue harshness. “The introduction of joint committees, on which the workmen are equally represented, has had the effect of establishing better relations between the foremen and the miners. Mr. Dale considers this the best system for the avoidance of crises. The decisions pronounced by the board of arbitration, and by the joint committees, are generally accepted; thus the principle of decision by arbitration takes the place of that of decision by strikes.”
[14] Concluding speech of the Prussian Minister of Commerce.
Of all the problems with which the science of government is confronted in the present and the near future, there are few in the domain of Social Policy of greater importance, or more fraught with serious possibilities in their results, than the establishment on a democratic basis, both in constitution and in administration, of the organs of Labour Protection.
This tendency appears already in the demand for equal representation of both classes in the organisation of Labour Protection. The establishment by local governing authorities of industrial courts of arbitration has been a step in this direction, a step which has not entirely been retraced by recent legislation in Germany, dealing with such courts.
The form which Social Democracy has given to this idea by the proposal of “Labour Boards” and “Labour Chambers,” brought forward in the Auer Motion, is a matter of the highest interest. So far as I know, this form has received very little, or at any rate insufficient, attention in the Reichstag or the Press. This is the more surprising for two reasons, viz., the justice of its attempt at a better protective organisation, and the serious import of its evident tendency to evolve out of the Capitalist System a Social Democratic order of society.
I think, therefore, that just because of this extreme step in organisation which the Auer Motion takes in proposing Labour Boards and Labour Chambers, as instruments of Labour Protection, it behoves me not to pass it by with indifference, but on the contrary to dwell upon it at some length.
In the first place let us construct in our own minds a picture of the new form of organisation proposed in the Auer Motion.
In the place of Art. IX. in the existing Imp. Ind. Code, a new Chap. IX. would have to be inserted, dealing with “an Imperial Labour Board, District Labour Boards, Labour Chambers, and Labour Courts of Administration” (§§ 131-143).
1. The Imperial Labour Board and the Imperial Labour Parliament.
The Imperial Labour Board. Its organisation would be determined by special Imperial legislation. Probably equal representation of classes is intended in this Central Bureau, which would act together with the hitherto essentially bureaucratic Imperial Insurance Board. Its duties would consist: first, in supervising so far as possible, the whole system of Labour Protection as demanded in the Auer Bill (§§ 105-125); further, in affording protection against the competition of penal labour; finally, “in enforcing such measures and conducting such enquiries as may be necessary to the well-being of the whole body of wage-earners, including apprentices, in any kind of industry.” Its duties would therefore extend far beyond the limits of Labour Protection in the strict sense, and it would be a general Central Bureau of aids to Labour, in which the Imperial Insurance Board would soon become incorporated.
The Labour Parliament (Diet of Labour Chambers). I take leave thus to designate the representative central organ proposed (although of course it is not brought forward in these terms in the heading of the new Chap. IX. of the Auer Bill) since it is clear that the Imperial Labour Board is practically only intended to be the executive organ of this democratic industrial Council of the nation. Sections 140-142 of the Auer Motion require that: § 140 “It shall be the duty of the Imperial Labour Board to summon once a year representatives from the collective Labour Chambers to a general deliberation on industrial interests. To this General Council each Labour Chamber shall send one delegate to represent the employers, and one the body of wage-earners. The choice of the representatives shall be made by each class separately. The chair shall be taken at the Council by a member of the Imperial Labour Board, but he and his colleagues shall have no right to vote. The Council shall determine its own standing orders and the orders of the day; the sittings to be public. § 141. The members of the Labour Chambers shall receive daily pay and defrayment of travelling expenses. § 142. The Imperial Government shall pay the costs of the arrangements enumerated in §§ 131-140; they shall be entered yearly in the imperial accounts.”
Thus we should have a national Labour Parliament—formed from the district Labour Chambers—with equal representation of both classes, receiving grants from the Imperial exchequer, undertaking the general supervision of industrial interests and acting as a check on the Imperial Labour Board. By the simple process of throwing overboard the nominees of the employers, this Labour Parliament might at any time become a pure parliament of labourers, or “People’s Parliament,” and the Imperial Labour Board might resolve itself into the central ministry of a purely “People’s State.”
Such a state of things would obviously be the realisation of the extreme Social Democratic order of State.
It must be admitted that no secret is made of this fact, nor yet of the basis on which the whole edifice is raised.
(2) Labour Boards and Labour Courts of Arbitration, Labour Chambers.
The basis of the edifice is formed by Labour Boards and Courts of Arbitration, on the one hand (i.e. for executive purposes), and Labour Chambers on the other (i.e., for purposes of regulation). We shall, as far as possible, give the explanation of the matter in the words of the motion.
Labour Boards. On this head the Auer Motion reads as follows: “§ 132a. Below the Imperial Labour Board come the Labour Boards which shall be appointed throughout the German Empire, in districts of not less than 200,000, nor more than 400,000 inhabitants, at the latest by Oct. 1, 1891. § 133. The Labour Board shall consist of a Labour Councillor and at least two paid officers; it must pass its rulings and decisions in full sitting. The Imperial Labour Board shall select the labour councillor from two candidates nominated by the Labour Chamber. The permanent paid officers, whose duty it is to assist the labour councillor in his task of supervision, shall be elected by the Labour Chamber, half from the employers, and half from the employed. In districts in which there are a considerable number of works employing chiefly female labour, some of the officials appointed shall be women. The same rules with regard to invalid and superannuation pensions shall apply to the officers of the Labour Boards, as apply to all other imperial officials. § 133a. The officers of the Imperial Labour Board, and the labour councillors or their paid assistants, shall have the right at any time to inspect all places of business (whether of State, municipal, or private enterprise) and to make such regulations as may appear necessary for the life and health of the workers employed. In the exercise of such supervision they shall be empowered with all the official authority of the local police magistrates. In so far as the rules laid down are within the official authority of the supervising officers, the employers and their staff shall be bound to render unhesitating obedience. The employer or his representatives shall have a right of appeal to the District Labour Board, to be lodged within a week, against the orders and rulings of individual officials, and a right of appeal against the District Labour Board’s decision, also within a week, to the Imperial Labour Board. The Labour Board shall be bound to inspect all the works within a district at least once a year. The employers shall permit the official inspection to take place at any time when the work is being carried on, especially also at night. The inspecting officers shall be bound, except in cases of infringement of the law, to observe secrecy as to all information on the concerns of a business obtained by them in pursuit of their official duties. § 133b. The local police magistrates shall uphold the Labour Board in the exercise of its authority, and shall enforce obedience to its directions. § 133c. The Labour Board shall organize all free labour intelligence within its district, and serve in fact as a central bureau for this purpose. It shall also be empowered to appoint branch bureaux with this object, in such places as may seem suitable, and if there is no industrial union to undertake the duties the local police magistrates shall undertake them. § 133d. Every Labour Board shall publish a yearly report of its proceedings, copies of which shall be distributed gratuitously to the members of the Labour Chambers by the Imperial Labour Board and the Central District Courts. The report shall be submitted to the approval of the Labour Chamber before publication. The Imperial Labour Board shall draw up yearly, from the annual reports of the Labour Boards, a general report to be submitted to the Bundesrath and the Reichstag. The reports of the District Labour Boards and the Imperial Labour Board shall be accessible to the public at cost price.”
The Labour Board of a district of from 200,000 to 400,000 inhabitants would be in the first place a modern kind of industrial inspectorate with offices filled from both classes—employers and employed—with a democratic system of election, and to which women would also be eligible. Even the presidency of this inspectorate would not be freely appointed by the government, which would have only the power of electing one out of two nominees of the Labour Chambers. The primary task of the board would take the form of Labour Protection, of centralization of labour intelligence, and of drawing up reports on matters concerning labour. The Labour Board is intended as the executive organ of the Labour Chambers, the parliamentary administration would therefore be general; even in reporting on industry the Labour Board would be subject to the approval of the Labour Chamber. It is evident that this Democratic organisation of courts, which would be powerless to act so long as both classes obstructed each other, might easily at one stroke, by turning out the nominees of the employers, be changed and developed into purely democratic district courts for the general protection of labour and the control of production.
Courts of Arbitration. The Court of Arbitration as proposed by the Auer Motion, is, so to speak, the judicial twin brother of the Labour Board. According to § 137-137e, the Court of Arbitration would be a court of the first instance, for the settlement of disputes between employers and workmen. It would be formed by each Labour Chamber out of its numbers, and would consist of equal numbers of employers and of workmen. The chair would be taken by the labour councillor or one of his paid assistants. Equal representation of both classes would be required when pronouncing decisions. None but relations, employés, and partners in the business, would be permitted to be present during the deliberations in support of the disagreeing parties. There would be right of appeal to the Labour Chamber. The members of this Court of Arbitration would (like those of the Labour Chamber) (§ 130a) receive daily pay and defrayment of travelling expenses. Such would evidently be the working out of this system of combined class representation, of which, indeed, we already have an instance in the industrial courts of arbitration.
Labour Chambers. These would form the foundation stone of the edifice, and they deserve the special attention of all who wish to know how Social Democracy means to attain her ends. I give verbatim the clauses dealing with this: “§ 134. For the representation of the interests of employers and their workmen, as well as for the support of the Labour Boards in the exercise of their authority, there shall be appointed from Oct. 1, 1891, in every Labour Board district, a Labour Chamber, to consist of not less than 24, and not more than 36 members, according to the number of different firms established in the district. The number of members for the separate districts shall be determined by the Imperial Labour Board. The members of the Labour Chambers shall be elected, the one half by employers of full age from amongst their numbers, the other half by workers of full age from amongst their numbers. The election shall be made on the principle of direct, individual, ballot voting by both sexes, a simple majority only to decide. Each class shall elect its own representatives. The mandate of the members of the Labour Chamber shall last for two years, opening and closing in each case with the calendar year. Simultaneously with the election of the members of the Labour Chamber proxies to the number of one-half shall be appointed. The proxies shall be those candidates who receive the greatest number of votes next after the elected members. In the case of equal votes lots shall be drawn. The selection of the polling day, which must be either a Sunday or festival, shall rest with the Imperial Labour Board, which shall also lay down the rules of procedure for the election. Employers and workmen shall be equally represented on the election committees. The time appointed for taking the votes shall be fixed in such a manner that both day and night shifts may be able to go to the poll. § 135. Besides fulfilling the functions assigned to them in §§ 106a, 110 and 121, the Labour Chambers shall support the Labour Boards by advice and active help in all questions touching the industrial life of their district. It shall be their special duty to make enquiry into the carrying out of commercial and shipping contracts; into customs, taxes, duties, and into the rate of wage, price of provisions, rent, competitive relations, educational and industrial establishments, collections of models and patterns, condition of dwellings, and into the health and mortality of the working population. They shall bring before the courts all complaints as to the conditions of industrial life, and they shall give opinion on all measures and legal proposals affecting industrial life in their district. Finally, they shall be courts of appeal against the decisions of the Courts of Arbitration. § 136. The president of the Labour Chamber shall be the labour councillor, or failing him, one of his paid officials. The president shall have no vote, except in cases in which the Labour Chamber is giving decision as a court of appeal against the decision of the Court of Arbitration. Equality of voting shall be counted as a negative. The president shall be bound to summon the Labour Chamber at least once a month, and also when required on the motion of at least one-third of the members of the Chamber. The Labour Chambers shall lay down their own working rules; their sittings shall be public.” According to § 139 of the motion, the members of the Labour Chambers shall also be entitled to claim daily pay and defrayment of travelling expenses.
Such are the Labour Chambers according to the proposals of the Social Democrats in 1885 and 1890.
It is not without some astonishment that I note the tactical ingenuity displayed by the party even here. Everything that has anywhere appeared in literature, in popular representation, in judicial and administrative organisation, in the way of proposals for the centralisation and extension of labour intelligence, or of proposals for the representation of labour in Labour Protection, and in all agencies for the care of labour,—every scheme that has ever been put forward under different forms, either purely theoretic or practical, as, e.g., “Popular Industrial Councils,” and “Industrial Courts of Arbitration”—is here used to make a part of a broad bridge, leading across to a “People’s State.” Nothing is lacking but the lowest planks, which could not, however, be dispensed with, a Local Labour Board and a Local Labour Chamber, as the sub-structure of the District Labour Boards and District Labour Chambers.
The leaders of Social Democracy in the German Reichstag maintain that they are willing to join hands with the representatives of the existing order in their schemes of organisation. We have, therefore, no right to treat their scheme as consciously revolutionary. But this hardly affects the question. The question is whether—setting aside altogether the originators of the plan—such an organisation as that described above might not in fact readily lend itself as a battering-ram to overthrow the existing order and realise the aim of Socialism, whether, in fact, it would not of necessity be so used. This question may well be answered in the affirmative without casting the slightest reproach at the present leaders of the party.
The regulating representative organs would have full and comprehensive authority in all questions of industry, social policy, and health, and in inspection of dwellings; and the executive organs, even up to the Imperial Labour Board, might be empowered by the mere alteration of a few sections of the Bill to exercise the same authority, subject to the consent of the majority in the National and District Chambers, and eventually in the Local Chambers.
If these representative and administrative bodies ever came into existence, they would slowly but surely oust, not only the whole existing organisation of Chambers of Commerce and Industrial Councils, but also the Reichstag itself, and the Imperial Government, as well as the local corporate bodies; they would tear down every part of the existing social edifice. By the combined action of the Social Democrats in the Reichstag with the increasingly democratic tendencies of the local bodies, all this might come to pass in a very short space of time.
I do not forget that the organisation is to be based in the first instance on equal representation of classes. On the first two, and eventually on the third, step of the judicial and representative edifice, as many representatives are given to capital as to labour. In so far the organisation is a hybrid of Capitalism and Social Democracy. For the moment, and in the present stage, it is, for this very reason, of special value to the Social Democrats, as it supplies a method of completely crippling the forces opposed to them in the existing order. For it will be sufficient in the day of fulfilment, i.e. when all is ripe for the intended change, to give one shake, so to speak, in order to burst open the half capitalistic chrysalis, and let the butterfly of a Social Democratic “People’s State” fly out.
The half capitalistic organisation would, I repeat, be of the greatest value at present, in the early preparatory work of the Social Democrats. First, because the working class would become practically and thoroughly accustomed to co-operation instead of to subordination as hitherto; this is the transition step which cannot be avoided, to the supremacy of the working class over the employers’ class. Then, too, the proposed organisation would offer an excellent opportunity for passing through the transition step by step, by the continued weakening of the capitalist order of society in all its joints. The struggle with capital would have the sanction and the organised force of legislation. It would receive legal organisation, and would even be legally enjoined. This legalised battle would proceed over the whole circuit of industrial activity, including trade and transport, and including also the state regulated portion of it.
In addition to this the organisation would be peculiarly fitted to cripple even the least objectionable bulwarks of capital, even the altogether unbiassed and nonpartisan operation of the local and district, and probably even ultimately of the imperial courts.
The apparently equal coupling of the influence of both classes would lead to the result that the class which had the more energetic representatives and the slighter interest in the maintenance of the “working rules” would be able at any moment and at any point in the national industrial life, to bring everything to a deadlock. The labour councillor would be dependent on the Labour Chambers, and they in turn would be entirely dependent on the leaders of labour. By the provision that the president shall have no vote, and a tie in voting shall therefore count as a defeat, the workmen’s electorate hold in their hands the power to obstruct at will any resolution, and especially to obstruct the issue of the working rules in any business, since the rules must be submitted to the approval of the Labour Chambers.
The function of “supporting the Labour Boards by advice and active help in all questions touching the industrial life of their district,” might very easily, by virtue of the above provision, be so abused by the Labour Chambers as to deprive individual industrial inspectors of all possibility of just and independent action, and hence by degrees to entirely cripple and destroy the value of the inspectorate as a whole; there can, I think be no doubt that before very long these powers would intentionally be used for this purpose.
The action of a positive Social policy would be hopelessly crippled by an equally balanced class representation, while at the same time the existing order of industrial life would be disturbed and shaken down to the very last and smallest branches of industry.
Nor would this be all, for such an organisation would secure fixed salaries for the staff of agitators in the Labour party, since the representatives would receive daily pay and defrayment of travelling expenses from the Imperial exchequer. Debates and discussions might be carried on without intermission, the pay continuing all the time, for each Labour Chamber would be convened, not only once a month, but also at any time at the request of one-third of the members of the Labour Chamber, therefore of two-thirds of the labour representatives in the chamber. By virtue of the provision which gives them unlimited right of intervention, pretexts for convening frequent meetings would never be wanting.
Hence it is evident that no more effectual machinery could be devised for the legal preparation for leading up the existing social order directly to the threshold of the “People’s State.” The attempt to convert the hybrid Capitalist-Socialist state to a pure Socialist state would be a perfectly simple matter, both in the Empire, the provinces, and the local districts, as soon as we had allowed Social Democracy one or two decades in which to turn the two-fold class representation to their own ends. By a single successful revolutionary “coup” in the chief city of the Empire, or in the chief cities of several countries simultaneously, representation of capital in the Labour Courts might be thrown overboard, and the “People’s State” would be ready; the parliament of a purely popular government would hold the field, and the present representation of the nation which includes all classes and watches over the spiritual and material interests of the whole nation, might without difficulty be swept away from Empire, province, district and municipality.
The construction of a complete system of “collective” production would be easy, for it would find the framework ready to its hand, complete from base to summit, fully mapped out on the plan.
Perhaps the leaders themselves are not fully conscious of the lengths to which their proposed organisation may carry them. One can quite understand how from their standpoint they fail to see the end. They have pursued the path that seemed the most likely to lead to their goal of a radical change of the existing social order. The whole responsibility will rest with the parties in power, if they do more than hold out their little finger, which they have already done, to help Social Democracy along this path of organisation.
In spite of all that can be urged against them, however, we may gather much, not merely negative, but also positive, knowledge from the proposals of Social Democracy. An organisation which shall be equipped with full authority, which shall be independent, complete in all its parts, which shall prevail uniformly and equally over the whole nation; an organisation which shall avoid the disintegration of collective aids to labour, which shall encourage industrial representation and prevent the division of authority amongst many different courts: such is the root idea of the proposal, and this idea is just, however unacceptable may appear to us the form in which it is clothed in the Auer Motion. Nothing is omitted in the Auer Motion except the assignment of their various duties to the various branches of the territorial representative bodies, and the working out of an elementary local organisation. I shall therefore try to work out the idea into a legitimate and possible form of development. In order to do this I must distinguish between the organisation required for executive and for representative bodies.
As regards the executive organs, neither in Germany nor elsewhere is the industrial inspectorate at present furnished with a sufficient number of paid head-inspectors and sub-inspectors. Scarcely any of the sub-inspectors are drawn from the labouring class except in the case of England. Industrial inspection in Germany has not yet attained uniform extension over the whole Empire. The inspectors of the different provinces, and the chief provincial inspectors of the whole Empire require to be brought into regular communication with each other and with a Central Bureau adapted for all forms of aid to labour, including Labour Protection—an organ which of course must not interfere with the imperial, constitutional, and administrative independence of the States of the Bund. If the individual inspectors were everywhere carefully chosen, the assembling of all inspectors for deliberation with the Provincial and Imperial Central Bureaux of Labour Protection would in nowise retard, but on the contrary would serve to promote the complete and equitable administration of Labour Protection and all forms of aid to labour. This is the really fruitful germ contained in the idea of an “Imperial Labour Board.”
A Provincial Labour Board might effect much in the same direction. We are not without the beginnings of a uniform constitution of this kind: England has an Inspector-General, Austria a Central Inspector; in Switzerland the inspectors hold regular conferences; in France a comprehensive scheme of inspectoral combination is projected.
The choice of persons as head and sub-inspectors, which is a matter of such great importance, might be subject to nomination by the united provincial inspectorate, coupled with instructions to direct particular attention to the selection of persons of practical experience, without social bias, well versed in knowledge of technical and hygienic matters, and suited to the special needs of the several posts.
But the mere development of the inspectorate would not be the only step in the progress of the organisation of Labour Protection. We must go much further than this. The combined interests of economy, simplicity, efficiency, and permanence of service, point to the necessity of relieving as far as possible the regular governmental courts of the Empire, of the province, and of the municipality, of the extra burden of judicial and police administration involved in special branches of Labour Protection, and in all other special forms of aid to labour. The same considerations involve the necessity of gradually developing a better organisation of associated labour boards, an imperial board, and provincial, district, and municipal boards. We should thus get rid of the present confusion of divided authority without entirely depriving Labour Protection, both individual and general, of the assistance of the ordinary administrative courts. This is the task that I have repeatedly insisted upon as imperatively requiring to be taken in hand in connexion with Labour Insurance. The Auer Motion attempts to meet this necessity.
Much also that is very just and very practical is contained in the idea of extending the sphere of operations of the Imperial Labour Board and of the District Boards so as to embrace not only Labour Protection but every form of aid to labour. Complaint is made that the organisation of Labour Insurance, in spite of all caution, has frequently proved a unpractical and costly piece of patchwork administration. Would it not then be more to the point, and would it not more easily fulfil the object of Labour Insurance and Labour Protection, and later on also of dwelling reform, inspection of work, etc., to create municipal district and provincial boards, with a great Imperial Central Bureau at the head? In order that each special branch of protection might receive proper attention, care would have to be taken in appointing to the offices of the collective organ, to insure the inclusion of the technical, juristic, police, hygienic, and statistic elements, and it would be necessary to group these elements into sections without destroying the unity of the service. There would be no lack of material, and it would not be difficult to secure a good, efficient, and economical working staff.
No less reasonable is the idea of a “guild” of the eldest in the trade, or of a factory committee for the several large works with representation of both classes to appoint the district, provincial, and imperial labour councils. So far from being extreme in this respect, the Auer Motion is rather to be reproached with incompleteness, and a lack of provision for local Labour Councils and Labour Chambers, a point which we have already mentioned. But the representative bodies would have a significance extending far beyond the limits of Labour Protection—following the example of Switzerland the von Berlepsch Bill admits factory labour-committees for dealing with matters concerning the factory working rules—they would be agencies for the care of labour, for the insurance of social peace, the protection of morality, the settlement of disputes and the maintenance of order in the factory, for the instruction and discipline of apprentices, for the control of the administration of protective legislation, for dealing with the wage question, in a word for softening the severe autocracy of the employers and their managers by the co-operation and advice of the workers. And in this case I have nothing further to add to what I have already said on the matter in a former article.
But the supporter of even the most comprehensive scheme of labour representation does not stand committed to any such system of parliamentary management of industry by democratic majority as is proposed in the Auer Motion. The appointment and the working of the Labour Councils and Labour Chambers seems to me to introduce quite another element into the scheme.
The regular, not merely the accidental and occasional, meeting of the inspectors with the body of employers and workers is a recognised practical necessity; a less bureaucratic system of industrial management is demanded on all sides. Regularly appointed ordinary and special meetings with the Labour Chambers would no doubt accomplish much. The inspector ought to be accessible to the expression of all wishes, advice, and complaints; but, on the other hand, he should not yield blind obedience to the rulings and representations of such organs. The industrial inspector must be, and must remain, an officer of the State, capable of acting independently of either class, appointed by government; only under these circumstances can he perform the duties of his office with firmness and impartial justice; in his appointment, in his salary, and in the exercise of his official duties he should be furnished with every guarantee to insure the independence of his judgment. It is nowise incompatible with this that he should be open to receive representations, whether in the way of advice, information, or complaint. The more he lays himself open to such in the natural course of work, the more important will his duties and position become, both on his circuits and in his office. The right of appeal to higher courts can always be secured to the Labour Chambers in cases of complaint. But how should representative bodies of this kind be formed?
In answering this question care must be taken above all not to confound such public Labour Chambers as are suggested in the Auer proposals with voluntary joint committees of both classes. Each of these representative organs requires its own special constitution.
The voluntary unions appoint committees for the security of class interests, and especially for the purpose of making agreements as to conditions of work. The election of these representative bodies ought to be made by both classes with unrestricted equal eligibility of all, including the female, members of any union, and without predominance of one class over the other, or of any section of one class.
I have already in a former article (see also above, Chap. V.) laid great stress upon the development of this voluntary or conciliatory representation of both classes as a means of union which can never be replaced by the other or legal form of representation.
The need for a representative system in the organs of the different forms of state-aid to labour is quite another matter.
Their tasks require special, public, legalised representation, with essentially only the right of deliberation; but they may also decide by a majority of votes questions which lie within the sphere of their competence.
As regards this public representation, it seems to me that joint appointment by direct choice of all the individuals in both classes, and out of either class, tends to the preservation of class enmity rather than to the mutual conciliation of the two classes and to the promotion of their wholesome joint influence on the boards. This kind of appointment might be dispensed with by limiting direct election as far as possible to the appointment of the elementary organs of representation; but for the rest by drawing the already existing authorities of a corporate kind into the formation of the system of general representation. Herein I refer to such already existing organs as those of labour insurance, Chambers of Commerce and Industrial guilds, railway boards, local and parliamentary representatives; and other elementary forms of corporate action might also be pressed into the service. A thoroughly serviceable, fully accredited personnel would thus be secured for all Labour Boards.
This system might even be applied to the election or appointment by lot of the Industrial Court of Arbitration. If the Labour Chambers were corporate bodies really representative of the trade, then the Industrial Courts of Arbitration, both provincial and local, might be constituted as thoroughly trustworthy public organs—without great expense, free from judicial interference, competent as courts of the first and second instance, and not in any way dependent on the communal authorities—either freely elected by the managers of the workmen’s clubs and the employers’ boards or companies, or chosen by lot from the personnel of the already existing corporate institutions above referred to. The system of direct election by the votes of all the individual workers and employers would thus be avoided, and, more important still, this method would meet the difficulty which proved the crux of the whole question when the organisation of Industrial Courts of Arbitration was discussed in the last Reichstag: the distinction between young persons and adults would not enter into consideration, either in the case of Labour Chambers or of the Courts of Arbitration proceeding therefrom.
There would be no need, under this system, that electors of either class should be required to limit their choice of representatives to members of their own class. Each body of electors would be free to fix their choice on the men who possessed their confidence, wherever such might be found. This would further help to stamp out the antagonisms which are excited by the separate corporate representation of both classes. Men would be appointed who would need no special protection against dismissal. But the representatives of the workers when chosen out of the midst of the working electorate might still receive daily pay and defrayment of travelling expenses. If this were entered to the account of the unions which direct the election through members of the managing committee, and if charged pro rata of the electors appointed, a sufficient safeguard would be provided against the temptation to protract the sessions or to bribe professional electors.
The foregoing sketch of the executive and representative development of the organisation of Labour Protection in the direction of united, simple, uniform, specialized organisation of the whole aggregate of aids to labour, ought at least to deserve some attention.
Provided that the upward progress of our civilisation continues generally, this quite modern, hitherto unheard of, development of boards and representative bodies, even if only brought about piecemeal, will eventually be brought to completion, and will effect appreciable results in the State and in society. Some of the best forms of special boards, i.e. special representative bodies are already making their appearance, e.g. the “Labour Secrétariats” in Switzerland, the American “Boards of Labour,” and the Russian “Factory Courts” under the governments of St. Petersburg, Moscow, and Vladimir (Act of June 23, 1868).
Years and years elapsed before the first supporters of international protection received any recognition. Then immediately before the assembling of the Berlin Conference, the idea began to take an enormous hold on the public mind. Switzerland demanded a conference on the subject. Prince Bismark refused it. The Emperor William II. made an attempt towards it by summoning an international convention to discuss questions of Labour Protection.
The inner springs of the movement for international Labour Protection are not, and have not been, the same everywhere.
With some it is motived by the desire to secure for wage labour in all “Christian” States conditions compatible with human dignity and self-respect. This was the basis of the Pope’s negotiations with the labour parties and with certain of the more high-minded sovereigns and princes. Others demand it in the combined interests of international equilibrium of competition and of Labour Protection, believing that these two may be brought into harmony by the international process, since if industry were equally weighted everywhere, and the costs of production, therefore, approximately the same everywhere, protected nations would not suffer in the world’s markets. The first, the more “idealist” motive prevails most strongly among Catholics, and contains no doubt a deeper motive—namely, the preservation of the social influence of the Church. At the International Catholic Economic Congress at Suttich, in September, 1890, this view prevailed, with the support of the English and Germans, against the opposition of the Belgians and French.
The light in which international Labour Protection is viewed depends upon whether the one or the other motive prevails, or whether both are working together.
Two results are possible. Either limits will be set to the right of restricting protection of employment and protection in occupation by means of universal international legislation, or the interchange of moral influence between the various governments will be brought about by means of periodical Labour Protection Conferences and through the Press, which on the one hand would promote this interchange of influence, and on the other hand would, uniformly for all nations, demand and encourage the popular support of all protective efforts outside the limits of the State.
Before the Berlin Conference it was by no means clear what was expected of international Labour Protection. Since the Conference it has been perfectly clear, and this alone is an important result.
The international settlement which Prince Bismark had opposed ten years before did not meet with even timid support at the Berlin Conference. England and France were the strongest opponents of the idea of the control of international protective legislation. This can be proved from the reports of the Berlin Conference.
The representative of Switzerland, H. Blumer, in the session of March 26, 1890, made a proposal, which was drawn up as follows:—
“Measures should be taken in view of carrying out the provisions adopted by the Conference.
“It may be foreseen on this point that the States which have arrived at an agreement on certain measures, will conclude an obligatory arrangement; that the carrying out of such arrangement will take place by national legislation, and that if this legislation is not sufficient it will have to receive the necessary additions.
“It is also safe to predict the creation of a special organ for centralizing the information furnished, for the regular publication of statistical returns, and the execution of preparatory measures for the conferences anticipated in paragraph 2 of the programme.
“Periodical conferences of delegates of the different governments may be anticipated. The principal task of these conferences will be to develop the arrangements agreed on and to solve the questions giving rise to difficulty or opposition.”
Immediately upon the opening of the discussion on this motion, the delegates from Great Britain moved the rejection of the proposal of Switzerland, “since, in their opinion, an International Convention on this matter could not supply the place of special legislation in any one country. The United Kingdom had only consented to take part in the Conference on the understanding that no such idea should be entertained. Even if English statesmen had the wish to contract international obligations with respect to the regulation of factory labour, they would have no power to do so. It is not within their competence to make the industrial laws of their country in any way dependent on a foreign power.” The Austrian delegate suggested that it be made quite clear “that the superintendence of the carrying out of the measures taken to realise the proposals of the Conference is exclusively reserved to the Governments of the States, and that no interference of a foreign power is permitted.” The Belgian delegate “considers it advisable, in order that the deliberations of the Conference may keep their true character, not to employ the word ‘proposals,’ but to substitute for it ‘wishes,’ or ‘labours.’” M. Jules Simon, the French delegate, states that he and his colleagues have received instructions which “forbid them to endorse any resolution which either directly or indirectly would appear to give immediate executive force to the other resolutions formulated by the Conference.” And M. Tolain adds that “it is true that the French Government had always considered the meeting of the Conference exclusively as a means of enquiring into the condition of labour in the States concerned, and into the state of opinion in respect to it, but that they by no means intended to make it, at any rate for the present, the point of departure for international engagements.”
The idea of an international code of Labour Protection could not have been more flatly rejected. Hence the opposition to the idea manifested by Prince Bismark was fully borne out by the Conference. This opposition has everything in its favour, for it is clear that a uniform international code of Labour Protection would supply boundless opportunities for friction and for stirring up international commercial quarrels. If it were desired to establish Labour Protection guaranteed by international agreement, it would be found that there would be as many disturbances of international peace as there are different kinds of industry, nay, I will even say, as there are workmen. The countries whose administration was best and most complete would be the very ones that would be most handicapped: seeing that they could expect only a very minimum of real reciprocity from those other contracting powers whose administration was faulty, and where a strong national sentiment was lacking in the workers, owing to their miserable and penurious condition in the absence of effective protection for labour. Accurately to supervise the observance of such an international agreement we should require an amount of organisation which it is quite beyond our power to supply. But even on paper, international labour legislation has no significance beyond that of creating international discontent and agitation, and of supplying political animosity with inexhaustible materials for arousing international jealousy. The Berlin Conference has negatively produced a favourable effect by the protest of England and France, if one reflects how fiercely the scepticism of Bismark’s policy was attacked before the meeting of the Conference. Repeated readings of the reports of the Conference have confirmed me in the impression that Prince Bismark was fully upheld by the Conference in his opposition to the establishment of Labour Protection by international agreement. But I have felt it necessary to clearly establish the grounds on which the opposition to this form of protection is based.
The moral influence of the international Conference, however, has been on the other hand something more than “vain beating the air.” This is already shown in the increased impetus given to the improvement of national labour-protective legislation.
The conclusions arrived at by the Conference as to the international furtherance of Labour Protection are, it is true, of the nature of recommendations merely, and are in nowise binding on the governmental codes of each country. But even as recommendations they are practically of the greatest value. None of the nations represented will venture, I think, to disregard the force of their moral influence. All the means recommended by the Conference have promise of more or less success. Some of the proposals, for instance, are: the repetition of international Labour Protection Conferences, the appointment of a general, adequate, and fully qualified industrial inspectorate, the international interchange of inspectors reports, the uniform preparation of statistics on all matters of protection, the international interchange of such statistics, and of all protective enactments issued either legislatively or administratively.[15]
But what of the proposal for the appointment of an international commission for the collection and compilation of statistics and legislative materials, for the publication of these materials, and for summoning Labour Protection Conferences, and the like? And what would this proposal involve?
None of the objections which can be urged against the enforcement of an international code of Labour Protection would apply to this. The commission would be well fitted to help forward the international development, on uniform lines, of labour protective legislation, without in any way fettering national independence. Its moral influence would be of great international value.
What it would involve is also easy to determine. Such a commission would be an international administrative organ for the spread and development of Labour Protection on uniform lines in all countries; a provision by International Law for the enforcement of the international moral obligations arising out of protective right.
That is really what the Labour Protection Conferences would be if they met periodically as suggested At the Berlin Conference this at least was felt when it was said that the Conference was indeed less than a treaty-making Congress, but more than a scientific Congress. “International Conferences may be divided into two categories. In the first the Plenipotentiaries of different States have to conclude Treaties, either political or economic, the execution of which is guaranteed by the principles of international law; to the second category belong those Conferences whose members have no actual powers, and give their attention to the scientific study of the questions submitted to them, rather than to their practical and immediate solution. Our Conference, from the nature of its programme, and the attitude of some of the States good enough to take part in it, has a character of its own, for it cannot pass Resolutions binding on the Governments, nor may it restrict itself to studying the scientific sides of the problems submitted to its examination. It could not aspire to the first of these parts; it could not rest content with the second. The considerations which have been admitted in the Commissions relative to all the questions contained in the programme have been inspired by the desire of showing the working population that their lot occupies a high place in the attention of the different Governments; but these considerations have had necessarily to bend to others which we cannot put aside. In the first place, there was the wish to unite all the States represented at the Conference in the same sentiment of devotion to the most numerous and the most interesting portion of society. It would have been grievous not to arrive at the promulgation of general principles, by means of which the solution of the most important half of the social problem should be attempted. It was evidently not possible to arrive at once at an agreement on all its details. But it was necessary to show the world that all the States taking part in the Conference were met in the same motives of humanity.”
The proposal of a commission for summoning repeated conferences, international, uniform gatherings of representatives of all non-governmental agencies of Labour Protection, for the purpose of dealing uniformly with the requirements of a progressive policy in national labour-protective legislation, was a summing up of the demands urged by the Conference for a strong, international, administrative organisation for the furtherance of Labour Protection by the international exchange of moral persuasion, but without the enforcement of a code of international application.
From a scientific point of view it is of the highest interest to observe how international right, and even to some extent an international administrative right, is here breaking out in an entirely new direction. Treaties between two or more, or all, civilized States have hitherto mainly been treaties for combined action in certain eventualities (treaties of alliance), or territorial treaties for defining spheres of influence. Or else they have been treaties for the reciprocal treatment of persons or of goods passing between or remaining in the territories of the respective contracting States: migration treaties, commercial treaties, treaties concerning pauper aliens, tariff treaties and other treaties. Or they have been treaties for the prevention of the spread of infectious diseases. The exercise of international activity in the creation, development, and regulation of an international uniform Social Policy would be quite a new departure. Probably the idea of Switzerland has not been thrown out altogether in vain.