COMPULSORY INSURANCE.

Dominion, Volume 3, Issue 624, 29 September 1909, Page 5

COMPULSORY INSURANCE.

• THE LIBERALS' .PROPOSAL, MORE AMBITIOUS THANi GERMANY'S,- „ SYSTEM., ■ •■•..; : A'lWriUjr:in a Home paper,sets.out, to.show the -'.inwardriess "of"', the, British' Government's proposals : for tlio compulsory contributory insurance: of workers. .He'.TV.as .granted: an'-.in-terview by the. President of .tte Board'of Trade, Mr.' Churchill, f and he write£ Amorig the schemes which'' the Chancellor of tho Exchequer'and ■ tho' President of -the Board of Trade has.matured'in connection with tho Budgot,.. Bpecial interest attaches to -the proposals for. 1 insuring the industrial. workers of thc country against sickness,-incapacity, ajid unemployment. -The "unemployment: insurance system which -Mr.-Churchill.-has'prepared; is particularly well worth studying,.since. it_ is- the first*, schemo/of the kind tin .a large scwe .which has been .put .forward.' anywhere. . Th« Omission in; Germany. ' •' ' In Germany the_ workers' are _ insnredcompulsorily 'against'sickness, invalidity, imd old ago. But although unemployment insuranco has been-muoh talked of there, no plan has.yet been forriiulated.: /Certain ;tp"wns; p in Germany and some' in Switzerland :have/started., local schemes, but they/have riot been very-success-ful. The Board of Trade'had, therefore, no precedents /to 'guide,'.therii.. /The 1 method suggested is an/entirely new devolopment.'and one which, is certain 'to/be .ivatchnd -,rith prcat interest all over the/world ..iii: nn. ; when questions of this. nature ai»: «o much. ,in i. minds of all thoughtful men. :' .>. .. ;' In view of l this /Mr... .Churchill / vas.'good enough to ' receive' rrie' the 'othor day at the Board-of Trade and to give mo .a .very, lucid arid comprehensive account of his proposals.: Three Features. • " The main features of ' the .scheme, ..ho ..explained;' aro ; these: It, will be (1) .'compulsory; ©'•contributory; (3) divided up into, different 6ections/for different .trades. : , Coinpulsion was necessary. -That appeared clearly/ at,-,the'.outset.; ■ Voluntary. schemes fail .for the reason ..that 'most of those who' join in them: are/ men '.likely., to Ixi often unemployed.. It, is only ,by./striking anayern^o" among/good and in .different-workers aliketh'at an, insurance scheme becomes possible. •. Contributions ; from men - and' employers wero also'necessary.- /. To; begiri /with,';.the country could' not. afford' .to do , without them ; and, i, moreover,;/ the .idea .is to increase, the .stability of./our /iristitutibns by./giving-..the :mass of indnstrial workers ii direct interest in mainthi'nr irig'-them. With a "stako in'tho country"'-iu the/form ■ pMrisnrarices.. against- cvil/'days i these worjeers. -wil!,:pa,v no' atterition' vague promises, 'of :r«jvolutipriar.V' Socialism. ./" ... .; flivision; into'trades. Vias : » causo it meii>togethor,in-a 'common interest;'■ (b) hecatiso it' will.lead-.to steps',being'taken l to; fegulariso/.employriientias niuch as/possiblp. in'order to avoid paying',out-of-work ■ allowances;, (c)" ; bcca"use /iff one; 'trade wore particularly 'depressed':-the. scale of corir trifti'tioiis'ior: allowances''-couH be altered, without 'affecting,/other. trades.' Most Affected . Trades. ; , . : '. Having: settled .these points viri .favour,-of,insuring all.,workers- in;s.ome trades rather than; soirio .workers/in-, all,/ it", was Tnecessary to.fix upon' the trade's"tb'^which'tthe,scheme ' should at",first bo' applied. /:' Tho' history/ oflabour'fluctuations, and cyclical,';,,was studied,; with the result that the following" industries were - found, to.,.be;, most 'severely; affected by /them t-r ;- ; V. '' ' v'C'• ' . Building. ■V .' " • / Shipbuuding., 1 • 'EngineerinK. /;': .',. : /', '/■•'' : , : Vehicle-maKiEgi' ' i: ;,/v ' :,The'scheme,'.therefore, covers'/half ;the .field in unemployment, is 'most , disastrous; prcbaUy the worse half; -' It is-a schomo witli a strictly liniitcd;.xisk.-, : '.There;,is; no./seritimont 'about • it,', ../It. 'docs! 'riot. , jn'toVferoV.- with':,: any natural law.'; Itvmerely; :tp substitute for, - the" blind ' and / cruel,,forfeit J of:.-, charico, the mathematical; pressiire. p£;aV,erages.:lt will Help, to. ; remove/.the dangerous,,element jof .-uncertainty / from i tho /.exisferice. of ;'/th'6 ;iittifstrial 'wb'rkor.' - .that'his ;hbme,'/gpt,:together.; throrigh-. long, years';arid .with affectioriate ; sacrifices;- will not .;be-brbken up,, sent/bit'.by .Bit' fo 'tUe/pawrishop," just.:be'-: carisb,; through, no fault/ofj.his-iown, maybe,;' he' ifalli.out of-, work. / It/mil malf'p'hini a better citizeri",a.; iriore r-efficibiitworker;'.'a. happier; man/.;,./'// / r .' Amount .of'.Contribution.-v. , ■ .■• :. ! : / •' Now/as to, details. -',Thb!;amount of "cdntribujtions: is 'not ; .ybt idofinitbly. fiied.';. But iit.-. ; .#i1l bo somcthing,.liko 21(1. :from.,,,tne' worker, 21d.' n! week /from: tho. employer, rind, 25d,. a wb'eV.liom - tho:State. ■ 'Evoty.j?qrk6r . Trill; have' an insurance'..card;/ and upon .this' Pt.amps to the valub - of" hi»< ow'u- and '.his>. contribution/must. bo/'6tuck 6very,iw:cek. • Itiijllt be ithe -'employer's duty /tb: db . this>. deducting .th«/wpif^ers;2}d.:trom ! Vlito'.wigM;' Eut:,if,.the < employer chooses;'ho" call -send; ail 1 his 1 workers' cards to the local labour .oxchango.. Then , all ho will have to' do' is to send ,a .chbque'. to.'th'o cxchango every vwcel?;!' arid ~tbe card? .will', bo stamped-.without any : furthe'r• trouble >to hirii./•--Tho labour, exoliinges and.,the'iirisu'i'aubo plan will' work ,;.very c ciosely,'/togother. t.r They, late really, ttfo' parteiofi ono .sbhomei-a.'great' sohem'e, for,:fighting against wr6gularity,:ol'Vwprk., iind introducing order /in , : .p}ace >. ot 'chaos, into':, tho 'lib'our/iri'arket.' / As-soon! as',:a,;,wbrkor.:loses liis: oraployment ho; must report' himself at the. ex-, change,' ivhich''immediately /trie's 1 to /find. hiin : another job.-.. /" ; /.i ■ '••,;'■ /■''- r r■ When' the. exchange <hears', of.~work ..likely to ./suit: him - th'o ;inan / must , cither ■ tako; it; or. 'ex-: plain .to a cbmriiitteb,. composed of masters,'and. men,; wily/.it/dbbs ; ::'iot;'suit. b'im/ • Jf.; they brush' his' objection' aside no-is boiind'to take it. or: : olse - losb • liisoutrof-work, allowance. Suppose, on' the/other , ''harid,';..ieither..the':exchange.. nor. the man-hiMseifvtan-.find work,then/he. begins after seven days ro, receive: something: like/eight shillings a week, 'which' niay/go/on for fifteen weeks,', or more .if .. tho v bene'fits;'.*'are;/ slightly: loss. ,■ .If it /does', go on". fot;twerity';.w'epks,.arid he is' still "out" he drops .out of' tne .scheme ' arid . whei..h6.-'next, gets, employment; miist vbegin all ; over., again'.: > But ■ twenty weeks ..would cover, the : whole.;rineteploymbnt-.of /riirie/ nieri'iof.ten in the.;insured , trades,'; /: •.••; - r . '■/: ' /' Not for "Habituals," , Tho second time ho will have to . 'subscribe longer bofor'o,:ho.'becomes ..eligible: for- benefit. The. original periodvpf proh'ation ;is likely to be fixed at about'oight/moriths.'/The.next period (for thbsb". who have dro'riped out) will -be/iriore extended,.' and. ahe'.,third;, iriore: still. This, will' h'ave'the' effect,of freeirig. thb.fiirid from thbse who are,habitually unemployed:ibr ■ long spoils.,/ The' scbelne . is.-irieant for . regular,' competent/workers. The frequently oht-of-work must - seek - relief :rbni the.: distress* 'committees or the Poor . Law or any; improved,arrangements of 'a relieving: character, which 'may be made as .the result- of the'Popf : Law, .Coinmissibn. '■ Compared /with the, good it will 'do the. expenditure required cf the/ .Treasury. is I 'very small—not more^lha'n 1 500,000 a/year.:- This will 'co,ver ; the/State additions .tb,-.. ; premiums and' -rilSo -the'.expenses/.of 'management.''. The whole schemo;/indeed,'works out more, oheaply than was imagined to 'be possible.' It; will./cbst ' the/ worker only the/'price .of,'a",glass, or two . of-beer eaoh It,'will-cost'.a-big'employer —say.'.one ,'wh'o;pays/wages .to, 500, men—only about £250 a .year, whioh iii:a;DUsiness'of that magnitu'dei'is a;.very:small;iteiri.;