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§ 7. Probabilities of Industrial Peace. This concentrative process at work in both capital and labour, consolidating the smaller industrial units into larger ones, and tending to a unification of the masses of capital and of labour engaged respectively in the several industries, is at the present time by far the most important factor of industrial history. How far these two movements in capital and in labour react on one another for peace or for strife is a delicate and difficult question. Consideration of the common interest of capital and labour dependent on their necessary co-operation in industry might lead us to suppose that along with the growing organization of the two forces there would come an increased recognition of this community of interest which would make constantly and rapidly for industrial peace. But we must not be misled by the stress which is rightly laid on the identity of interest between capital and labour. The identity which is based on the general consideration that capital and labour are both required in the conduct of a given business, is no effective guarantee against a genuine clash of interests between the actual forms of capital and the labourers engaged at a given time in that particular business. To a body of employés who are seeking to extract a rise of wages from their employers, or to resist a reduction of wages, it is no argument to point out that if they gain their point the fall of profit in their employers' business will have some effect in lowering the average interest on invested capital, and will thus prevent the accumulation of some capital which would have helped to find employment for some more working men. The immediate direct interests of a particular body of workmen and a particular company of employers may, and frequently will, impel them to a course directly opposed to the wider interests of their fellow- capitalists or fellow-workers. But it is evident that the smaller the industrial unit, the more frequent will these conflicts between the immediate special interest and the wider class interest be. Since this is so, it would follow that the establishment of larger industrial units, such as workmen's unions and employers' unions, based on a cancelling of minor conflicting interests, will diminish the aggregate quantity of friction between capital and labour. If there were a close union between all the river-side and carrying trades of the country, it is far less likely that a particular local body of dock-labourers would, in order to seize some temporary advantage for themselves, be allowed to take a course which might throw out of work, or otherwise injure, the other workers concerned in the industries allied to theirs. One of the important educative effects of labour organizations will be a growing recognition of the intricate rapport which subsists not only between the interests of different classes of workers, but between capital and labour in its more general aspect. This lesson again is driven home by the dramatic scale of the terrible though less frequent conflicts which still occur between capital and labour. Industrial war seems to follow the same law of change as military war. As the incessant bickering of private guerilla warfare has given way in modern times to occasional, large, organized, brief, and terribly destructive campaigns, so it is in trade. In both cases the aggregate of friction and waste is probably much less under the modern régime, but the dread of these dramatic lessons is growing ever greater, and the tendency to postponement and conciliation grows apace. But just as the fact of a growing identity in the interest of different nations, the growing recognition of that fact, and the growing horror of war, potent factors as they seem to reasonable men, make very slow progress towards the substitution of international arbitration for appeals to the sword, so in industry we cannot presume that the existence of reasonable grounds for conciliation will speedily rid us of the terror and waste of industrial conflicts. It is even possible that just as the speedy formation of a strong national unity, like that of Prussia under Frederick the Great, out of weak, disordered, smaller units, may engender for a time a bellicose spirit which works itself out in strife, so the rapid rise and union of weak and oppressed bodies of poorer labourers make for a shortsighted policy of blind aggression. Such considerations as this must, at any rate, temper the hopes of speedy industrial pacification we may form from dwelling on the more reasonable effects and teaching of organization. Although the very growth and existence of the larger industrial units implies, as we saw, a laying aside of smaller conflicts, we cannot assume that the forces at present working directly for the pacification of capital and labour, and for their ultimate fusion, are at all commensurate in importance with the concentrative forces operating in the two industrial elements respectively. It is indisputably true that the recent development of organization, especially of labour unions, acts as a direct restraint of industrial warfare, and a facilitation of peaceable settlements of trade disputes. Mr. Burnett, in his Report to the Board of Trade, on Strikes and Lock-outs in 1888, remarks
Care must, however, be taken, never to press for a larger gain than is covered by the difficulty of replacing the body of present employés by outside labour. Miscalculations of the amount of this inherent power of Union are the chief causes of "lock-outs" and failures in strikes.
In 1910, 8,269 industrial plants were affected, in which 372,119 persons were employed, and 2,209 plants were obliged to shut down entirely. There were as many as 154,093 persons on strike at the same time. In 1910 there were also 1,121 lock-outs, affecting 10,381 plants and 314,988 persons.
This is but one of the forms of usury, by which wealth is heaped from the earnings of the many. The difficulties between employers and their laborers do not cease. The continued strikes and lock-outs show how general and deep the trouble is. Laborers organize into unions to protect themselves from discharge and to promote their interests. They ask for better wages and shorter hours.
A harassed manager and a deputation of jaded workmen may be really very good fellows and yet find that some comparatively small question raises strong feeling and mutual recrimination, and then leads to rash action resulting in open strife, strikes, and lock-outs, and the judicial proceedings which may be necessary in consequence of them.
If disagreements terminating in strikes and lock-outs remained as numerous as they are at present, there would result both for the producer and consumer a condition of perilous and perhaps intolerable uncertitude. But this objection, although serious, is not unanswerable.
A master should be the friend, the helper of his men. They should be one family." She looked at him a little incredulously, remembering the bitter periods of strikes and lock-outs. "Did you ever try, Dad?" she asked. "Oh, yes," he answered. "But I tried the wrong way." "The right way might be found," he added, "by the right man, and woman."
In the meantime there were rumors that a lock-out was being prepared, affecting every occupation, and intended to destroy the Federation at one blow. But that was inconceivable. They had experienced only small lock-outs, when there was disagreement about some particular point.
In the meantime there were rumors that a lock-out was being prepared, affecting every occupation, and intended to destroy the Federation at one blow. But that was inconceivable. They had experienced only small lock-outs, when there was disagreement about some particular point.
It is instructive to notice that in dealing with the question of industrial disputes, which are in many ways analogous to international, at least where they arise between organised bodies of employers and of workpeople, the Whitley Committee, in a supplemental report issued in January, 1918, expressed the opinion: that no attempt should be made to establish compulsory arbitration or compulsory legislation to prevent strikes and lock-outs; that there should be standing arbitration councils or panels of arbitrators to whom disputes arising could be voluntarily referred; that provision should be made for independent inquiry and report as to the merits of trade disputes; that legal penalties for breach of an award or of an agreement made to settle a trade dispute should not be imposed; that the decisions of industrial tribunals and arbitrators should be co-ordinated as far as possible, and that there should be opportunity for interchange of opinion between the arbitrators whose awards should be circulated.
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