INDUSTRIAL POLICY

Dominion, Volume 11, Issue 285, 21 August 1918, Page 8

INDUSTRIAL POLICY

THE GARTON MEMORANDUM

PROBLEMS AND SUGGESTIONS

Tho emergency problem is lo avert an outbreak of induslrial anarchy in the period immediately following the war. Whatever tho upshot 'of such an outbreak, its effects would bo .almost equally disastrous io alb clhsses of tho community.

The constructive problem is io readjust and reorganise our industries to meet the new conditions, to provide for replenishing the national capital and maintaining or increasing the national income, to remove the evils which hnv> rendered tlio industrial problem an irritant in our social life, to reconcile tlio conflicting claims of efficient induction and fulness of life for the workers. Friction must be replaced by co-opera-tiffn. The measures adopted for me'eting lhe emergency problem should be so framed as to lay the foundations of a permanent reconstruction, The direct economic effects of the war can be dealt with by special measures framed with a viow to meeting specific dangers; some designed to carry us through the period of transition with a minimum of friction and suffering, others of a more constructive kind intended to increase our general industrial efficiency. The fundamental problem of industrial unrest can be solved only by a broader and more far-re-uhing treatment, based upon a survey of tho permanent factors of our indus - - trial life. Two things are essential: _ (a) Clear thinking on the essential principles of industrial lifo and a united effort by thoso concerned to give them fuller expression in their joint activities. (b) Avoidance of clashing or overlapping by tli9 various movements represented. Demobilisation. The difficulty of bringing together the workman and the job may be met by the creation of joint committees representing employers, trades unions, iind Labour generally, working with the Board of Trade to obtain the necessary knowledge as to the conditions of demand in particular localities and grades. A register should be compiled of the previous occupations and capacities of the men to lie disbanded. A central conference of representatives of Ihe State, employers, and Labour could co-ordinate the work of the various committees and of the labour exchanges, and direct the stream of demobilised men towards those districts and industries where the probability of immediate reinstatement or absorption waa greatest. Those workers for whose services there is an assured need should 1)® the first to bo disbanded, and a.n early discharge given to those for whom situations are actually waiting. The preliminary work of investigation and the creation of machinery should be pushed rapidly forward, «>_ that there may be no* delay or, uncertainty in taking action when the time comes for disbaiulrneiit. Tho margin of unemployment can bn largely reduced by State and municipal expenditure upon works of definite utility—undertakings of a productive nature or connected with ihe restoration of the national plant. There is a large amount of valuable work to be done in connection with housing, the repair and improvement of roads, afforestation, tho reclamation of waste land, which would prove a sound investment both from the social and economic point of view, and which the training of the returned soldiers in trench warfare have fitted them to accomplish efficiently. ' Wagos. Men returning to civil life .should be pli\cfxl ill R, position mo worse than that which they occupied before the war. Since the cost of living has risen and will remain high, this will involve a demand for proportionately increased wages. Any attempt to use ex-servico men as a means of substituting the old rates of wages for those _ which have been granted to meet tho increased cost of living might well cause ' serious trouble. If the hostility of employers and employed can be replaced by a spirit of co-operation based oil mutual understanding, there will be less likelihood of friction over details of the wane question and a better chance of an allround improvement in the condition of workers due to increased efliciency in production. Tho settlement of returned soldiers on the land is desirable, and in this connection the questions of organised settlement of individuals or groups on created holdings, the promotion of agriculture generally and its status as an occupation so that men will be drawn to' it- by economic and social attractions, and of agricultural credit, on a co-operative basis or otherwise, should be considered. Largo numbers of, skilled workers may find themselves compelled to seek employment in trades for which they have not.been trained, and should_ be taught those trades in which there is the best prospect of employment. -The nation too must know its obligation to teach partially disabled men some trade within their present capacity. Constructive Measures. After discussing the adaptation o£ munitions plant to tlio purposes of civil industry and the problem of women stopgap and cinergeucy workers, many of whom will remaiii as wage-earners either from necessity or preference, a problem which must bo treated on tho same lines as that of demobilisation, the memorandum discusses constructive measures. The. first essential of industrial efficiency is the will to produce, which can only be obtained by providing sufficient incentive ami promoting confidence. Efficiency may be promoted by an all-round improvement in our industrial organisation, and the following practical steps aro suggested:— ' . Improvement' in tho health and physical efficiency of tho people must bo sought along two lines—the improvement of conditions and the spread of knowledge. Increased attention to the care of child life, tho improving of housing conditions, tho creation of open spaces, healthful conditions of work, are all essential to the health and character of tho nation. The assurance of a-minimum standard of maintenance, enabling sufficient iood and clothing to be provided for every member of a family is bound up with the question of wages. The laws against adulteration should bo strengthened both in tlynr provisions, and enforcement. Adulterated food and impure milk are responsible for much malnutrition. Greater national attention should be given to physical training and tho teaching of elementary hygieno and domestic economy. An infinite amount of waste and loss oould be saved by spreading among all classes a sounder knowledge of how to lay out the family income and employ the domestic equipment so as to secure the best return. A knowledge of simple facts in elementary economics should form part of the teaching in all' schools.' Education, Vocational and technical instruction at the primary schools are pronounced injurious to mental development: Tho cramping effect of a purely utilitarian education upon intelligence and character renders it a poor preparation even for industrial life. ■ Tho modern educational systems which aim at fostering the child's intelligence and developing its powers of self-expression, even moro than imparting instruction, can be made t6 form the best possible . basis for subsequent specialised training. Simplify the curriculum and lay increased emphasis on tho formative side of education. Sneeial attention should bo given to that part of tho course which is devoted to bringing out the child's power of observation, and placing it in an iiltclligcn't relation with its environment.

For tho salco of the future of British industry, and from tho po,int of view of Hie development ot ini< citizens, it is essential that general education should be continued after the close of the primary school period. This is the more important because tho conditions of modern industry are such ns "to. malto its impossible to rely 011 apprenticeship as n gonorally satisfactory, method of industrial training Tho superior success' of Germany in so ninny departments of activity is due to the fact that st> much greater a proportion of young pcoplo 111 that country receive any systematic education at nil during the all-important

years between 14 and 13. Evening continuation classes are opc-n to serious objection because of the heavy strain on mind and body, and further progress cannot lie expected from a development of tlio system. A system should be adopted of compulsory part time by continuation schools l'or all between 14 and 18, who aro not receiving whole time education. Employers must allow their young employees a substantial period every week for attendance at school. _ These schools must not be purely technical or specialised in character, but must continue tho general civic education from tho point where it wits left at the primary school, and must lay due etrcss on tlio physical side of development and on tho corporate life which is the essence of tho "public-school spirit." Education at this stage must still be primarily formative on its purpose. The true period for specialisation is after 'the age of 18; for it is only then that most young people become fixed in what is likely to be a life-long occupation, and have the necessary knowledge and general equipment lo understand tho bearings of the special work which falls 'to their lot. For this specialised training the part-timo schools, with'skilled craftsman teachers, afford the best opportunity. Much'more could bo done to bring the University life of the country into closer touch with the professional and industrial classes. A University should not only bo a training ground for the recognised professions, but a centre of research in connection with the industries of the country. Moreover, it has a distinctive and peculiar part to play in what has como ■to be termed the work of adult education. It should form a meeting-place for those engaged in every department of life, and the natural home of the thought and discussion of tho country on public affairs. Labour-Saving Machinery, An increase in tho industrial output could bo obtained by a wider utilisation of labour-saving machinery, the cost.of whioli would be repaid in a very short period and would yield a high return on the capital invested. Before such extension can bo advocated as an item in the programme of reconstruction, the grounds of the workman's opposition to it must be examined from tho point of view of" the men as well as of the employer. This opposition rests , mainly upon a human and not an economic; basis. 'live tendency of work uuder modern conditions 'Lo become a mere mechanical rouliie, and of the worker himself to become dehumanised during the hours of. labour, is at the. bottom of the widespread intellectual revol't against the industrial system. But a complete return to the oid conditions of is impossible. The defeitfo* of labour-saving ! machinery from tjio human standpoint is that it removes the sheer muscular drudgery from such work and. enables a greater amount to be produced in shorter hours and with less strain and exhaustion ; to the worker. Moreover, the increased complexity of machinery is continually operating in the direction of restoring the balance, by calling upon the operator for a care and a degree ot skill approaching more nearly to craitsmanship. This tendency would be largely fortified if more care were, taken to explain to operators tlie purpose of their task, and the ip&rt it plays in, the process of production. There is no reason why even the unskilled labour connected with labour-saving machinery should not be based upon a foundation of intelligence and responsibility in the worker which -would preserve his self-respect. Nor must it be forgotten that the construction and maintenance of labour-saving machinery gives rise in itself to the employment, of a largo amount of highly skilled labour. The chief economic objection of the worker to the introduction of laboursaving machinery arises from his belief, unhappily founded on experience, that its immediate effect is to lower his wages or deprive him of his job. With some qualifications, this objection is well founded. That such a result is not invariable ai/ses partly from the fact that many labour-saving machines are very costly, so that a wise employer will offer a journeyman's wage to anyone who will work them to their full capacity, rather than pay a labourer's wage for them to be worked at half or two-thirds capacity. Moreover, the ultimate effect of la-bour-saving machinery is, to lower the price of tire article produced and thereby to increase the demand for it, which, in turn, will react upon the demand fOT labour. It remains no less true, in the main, that when a craftsman's job passes to'the machine,, that Special skill, which is his sole stock-in-trade, loses its monopoly value, and he stands in danger of sinking from an employed craftsman to an unemployed unit. But tho introduction of-Jabour-saving machinery is not, in the long run economically injurious to Labour as a whole, although it may for a time cause individual cases of, hardship. Any sudden change in industry involves a similar displacement. The employer introducing labour-saving machinery should, as -ar as possible provide alternative work fot tho men displaced, take advantage of the normal fluctuations of staff to spread out the period of reduction, allow time for men who caniiot bo Tetained to find another job. The only course, however, which will go to the* loot of the opposition to the introduction of such machinery, is for the employer to take the workers into his confidence; to explain _ to them what is proposed; to discuss with them, through their representatives or their trade union, the machinery required to meet the demands of competition, the rate of its introduction, the conditions under which it is to be worked, and the wages to be paid to the operators. It is only by the co-operation of employers and employed to introduce and use labour-saving machinery as a means of increasing efficiency .of production, and not merely for the' purpose of cutting down wages while increasing profits, that the advantages'to be derived from its use can be attained with the minimum of dislocation and loss to individuals. Works Organisation, "Scientific managoment" is promising in theory, but open to abuse and frustration in practice.' It is based on the conception of a works in which the wholo, routine, down to tho last detail of every operation, is organised by the management, acting through a sTaS of efficiency experts. So far as concerns the ' routing"'of work through tlio shops, no objection can arise. Confusion, over-lap-ping, delay and waste are avoided, and the. course of the work is made run smoothly and rapidly. \ _ With regard to the functions of Labour, tho methods of scientific management are more open, to question, ..lho idea is to stiialvsA and time the pnysical movements made in the performance of each operation' on every job; to reduco eacn task to its simplest eleme.\:s; lo construct a routine from whieil cvo-y superfluous effort or movement is eliminated; and to train workmen to follow the prescribed schedule as a coach might train a boat's 'crew to use their oars. The reactions of environment nnd. tlio limitations of fatigue are studied; no overstrain is allowed;- rest periods are provided. An astonishing increase in output an be achieved along these lines; so that unprccedeutlv high wages can be and are paid to those who will work under the system Nevertheless, it is opposed by iho "eneral run of workers, who give as the reason for flioir hostility that the employer, while paying higher wages, takes care that a much moro than proportionate increase is effected in his own profits, so that tho ratio of distribution becomes losi favourable to Labour than before. But this is not tho mam reason for lho workman's opposition. 'Underlying all economic suspicion is tho worker's institutive aversion to becoming a mindless automntum, performing without variation a cycle of mechanical movements which do not lead to increased general proficiency, which open tho way to no higher grade of employment, and which are prescribed not by himself or by the i'-aditions or master-craftsmen of 'his tfass, but by an outsido and unsympathetic authority in the shape of the scientific expert. Before (lie undoubted advantages of motion training can materialise in workshop practice, full security must bo given agninst these evils. This can lie done only by introducing the system with the full voluntary co-operation of the men; and such co-operation' can only be secured by first putting the whole proposition before them, explaining frankly lho risks to be faced as well as"the benefits to be obtained, and trans-

forming the whole constitution of the works in such a way that the men themselves may have an interest in tlio newsystem and 'somi share of control over the Working of it. The 1 memorandum then advocates the overhauling and- strengthening of the Labour laws, to inVet the demand for a higher general standard of life in such ways as well increase the self-respect, dignity, and efficiency of tlio protected, workers. Further limitation of hours of employees in factories and worksbipis and distributive shops, and an improvement in the environment in which work is carried on are advocated.

The patent laws require revision from 1 , the threefold point of view of stimulating invention, encouraging production,, and tlio protection of the consumer.. Some means should bo devised whereby patentees of small means can obtain guidance, assistance, and protection in tiio commercial development of their invention. Tlio heavy fees demanded prevent the patenting of many • valuable minor inventions.