Definition of strikes. may not interfere with individual liberty, the American people have neglected a problem which cannot easily adjust itself.1 271. Some Aspects of Industrial Warfare. A strike is a and benefits concerted temporary withdrawal from work of a group of employees for the purpose of securing more favorable contracts with their employers. Strikes have been used chiefly to secure higher wages. When we notice that only one worker in four in a period of twenty-five years is involved in a strike,3 that the resulting increase of wages has usually within three or four years made up all losses of laborers in strikes, that workers in related industries have in time gained an increase of wages due indirectly to the strike, and that employers often make concessions solely for the purpose of avoiding strikes, we can understand how valuable a means the strike has been in raising the wages of labor. Is industrial warfare necessary? Is it necessary for society to allow industrial warfare, that is, permit labor to make war on capital through strikes and boycotts, while capital retaliates by lockouts and blacklists, in order that labor should receive a just wage? If so, something is radically wrong with us and with our methods of treating the members of our largest industrial class. Certainly there are some businesses in which the public should 1 In several countries of Europe, notably Germany and Great Britain, some arrangements are made for insurance against unemployment. Provision is made that workmen who are employed shall contribute a small amount to a fund to which both the employer and the government add sums which are probably larger. This fund is used under certain conditions by workers of these classes who are unemployed. Furthermore E iropean employment agencies do valuable work in reducing unemployment. 2 At first widespread strikes were used chiefly as means to raise wages. In recent years as many strikes have been caused by the desire for collective bargaining, but as the chief object of collective bargaining is an increase of wages, we may say that most strikes are caused by a demand for higher wages. 3 The average number of strikes which are called each year is about two thousand, involving two or three hundred thousand strikers. They last as a rule less than a month. During the last twenty years of the nineteenth century, they caused losses to workers and employers of many hundred million dollars. More than half of those called by labor unions have been successful in obtaining the demands of labor, and others have brought partial gains. Those conducted without organization of the employees have been far less productive of results. We should not permit strikes, boycotts,1 and lockouts. 4 state boards 272. Conciliation and Arbitration. - To avoid the losses National and incident to labor disputes, various remedies have been sug- of conciliagested. Chief among these are trade agreements, concilia- tion and artion, and voluntary or compulsory arbitration. Compulsory bitration. arbitration of difficulties between employers and employees has not been used in the United States because it might be considered unconstitutional, but there are several state 1 A boycott is a concerted refusal of a group of buyers to patronize some seller. If the buyers have no grievance of their own, but use the boycott as a means of injuring or coercing the seller, the boycott is compound and illegal. 2 In these industries strikes should be prevented. If the employees need higher wages or better treatment by their employers, the public must see that they have the improvements which they need. But if this can be done in public utilities, why not to some extent in other businesses also? To avert a threatened general railway strike, Congress (1916) passed a law making eight hours a day's work at the same wages, temporarily, as had been paid for the old ten-hour day. Later it refused to consider a bill similar to the Canadian Industrial Disputes Act (p. 304, n. 2), and compulsory arbitration was not favored at all. Other laws regarding railways were passed, however. The law declares that sympathetic strikes in which the strikers have no grievance of their own, but seek to benefit coworkers and thus injure the latter's employers are conspiracies and therefore illegal. It prohibits compound boycotts, for these have as their primary object the injury of the producers whose goods are boycotted. It does not allow a group of employers to keep a blacklist of employees who have been discharged by one and may not be reëmployed by another. It does not allow strikers to intimidate workers who have been brought in to fill their places, although in many states the laws permit "pickets of strikers, if possible to persuade the new workers not to go on with work which will make the strike a failure." 4 A trade agreement is an arrangement made by representatives of an organized group of employers and an organized group of employees concerning wages and all other conditions of work. It has been said that when masters and men can get their feet under the same table the worst of their misunderstanding and difficulties disappear. The public cannot force the two parties to make reasonable trade agreements, but it can use its influence to settle disputes without warfare in one of two ways, (1) by conciliation, or attempts by a third party to bring labor and capital together, or (2) by arbitration, that is, the settlement of disputes by a third party. Methods states. boards of conciliation and arbitration 1 and a national board, which have often been able to prevent strikes and to adjust differences. In two thirds of the states there are permanent boards on which employers and employees are represented equally. In most of these states investigation of disputes may be used by the begun by the board, while with one exception, they must offer mediation in case of actual or threatened strike or lockout. Cases are never considered by these bodies unless one party asks for arbitration, but if both parties agree to arbitrate, eight states insist that the award be accepted. Other states offer mediation through the state commissioners of labor, still others have local arbitration boards, and a few provide for separate boards for special disputes. The results have been fairly satisfactory in those few states which have undertaken the work with the determination to escape the losses of industrial warfare.2 It is probable that the near future will see more interest in industrial arbitration and will develop better means for the successful settlement of industrial disputes. 1 "When a third party in the form of a private or a public board brings employers and employees together with a view to settling some dispute between the two parties, the process is called conciliation or mediation. Arbitration implies an authoritive board or court which is empowered to make an investigation and to settle the dispute. The suggestions or findings of a board of conciliation may or may not be accepted; the mandates of a board of arbitration are binding upon both parties. Arbitration may be voluntary or compulsory, and primary or secondary. Arbitration is voluntary when both employers and employees agree beforehand to accept the awards of the board. Arbitration is compulsory when the government compels the interested parties to submit the case to the board and to abide by its findings." Carlton, History and Problems of Organized Labor, 232. 2 In Canada an Industrial Disputes Act forbids strikes in public utilities and mines pending the investigation of the dispute by a specially appointed "board of conciliation and investigation." The board is a publicity body which states the facts, not an arbitration board to decide terms between the parties. New Zealand and Australia have made use of compulsory arbitration. On application of either party of the dispute, government boards of conciliation try to settle the affair. If they fail, the dispute is left to arbitration. New South Wales has a wage board for each important industry. These boards have done a valuable work in the settlement of disputes because they know conditions in the industry better than those can be known by a general board. THE PROMOTION OF INDUSTRY relations. 273. Government in its Relation to Business. - Modern Views of governments are very closely connected with the business desirable interests of the people, although there is considerable difference of opinion regarding the closeness and character of these relations. Many people believe that a government should limit itself to warding off dangers from which a business man cannot possibly protect himself; others advocate the greatest amount of aid to business in the form of favorable legislation and actual money subsidies; but the majority believe that business should be protected and promoted as far as is demanded by the best interests of the whole people. business. So much of our ordinary business is transacted through Government corporations, which are really artificial persons created by and ordinary the state, that supervision of corporations is essential. Since at least ninety-five per cent of our business is done not with cash, but on credit, safeguards are necessary to preserve a credit system. Contracts, written or unwritten, play so large a part in commercial transactions that indefiniteness in the law of contracts, or uncertainty in its enforcement, would be fatal to industry and commerce. Moreover, every line of activity is depressed by unjust, discriminating laws, and is benefited by wise, fostering legislation. interests. Many undertakings are of such nature that they must Government be performed or specially supervised by our governments. and public Since canals or railways are semipublic enterprises, they are common carriers and must not manage their business to the disadvantage of any person or community. Public improvements, such as the location and improvement of highways, should not be left to private parties. Essentials such as water for cities should be owned and managed by the public. Government must have special power of regulation, and, if necessary, prohibition over necessary but dangerous or objectionable industries, such as powder factories, gas works, or garbage incinerators. In its final analysis the power to regulate must include, if necessary, the power to prohibit. Corporations as public beneficiaries and Modern 274. Protection and Organization of Industry. society has encouraged the saving of wealth because it is desirable that we have as much capital as possible. In order as public ser- to increase wealth we permit persons with savings to com vants. bine their capital in a single business organization known as a corporation. A corporation is a group of persons legally associated and empowered by a government to act as one person in doing business or performing some other social task. Corporations are endowed by the public with many (This plant covers 276 acres; there are 47.5 acres of floor space actually under roof.) privileges, including monopoly rights to the use of patented machines,2 in order that they may do as useful a work as possible. They should be subject to public supervision and control; otherwise the privileges may be used for private gain, not for the public good. 1 Corporations not only combine the capital of many savers, but they continue to exist even when their members die. If one stockholder in a corporation wishes to sell his stock, he can transfer it to another person. Corporations are therefore more useful forms of business organizations than partnerships. 2 In order to encourage the invention of mechanical devices, Congress permits the Patent Bureau to issue to inventors patents which grant them the |