Wages and working conditions

 

We now come, in this chapter of our manpower story, to the second of the three basic principles on which the whole structure of mobilisation rests, namely, to set that working and living conditions are as satisfactory as is possible in war time.

First, a brief note about wages. On that famous afternoon in May, 1940, when Regulation 58A was born, the Minister of Labour and National Services was empowered to direct persons to perform services under such terms and conditions as he may determine; but in determining the terms and conditions the Minister was required to keep in mind “the rate for the job,” that is, appropriate terms and conditions provided for by collective agreement between organised employers and worker, or in the absence of such agreement the terms and conditions prevailing among good employers.

Obviously the only alternative to this was to put the whole pre-war economic system into cold storage – or the dust-bin – and declare a complete national moratorium, pay everybody on a war-time functional basis and behave in fact like a thorough-going Socialist State (Many people who have advocated service rate for workers do not appear to have worked out the full implications of their schemes.) And as only a few were ready to be as drastic as this, and as in any event the country had to be mobilised for total war with all possible speed, this was not a practicable alternative and “the rate for the job,” and all it implied, became firmly embedded in the scheme.

Inequalities of pay were inevitable, though they are probably neither as widespread nor as shocking as many people imagine. If a man is paid for a job at a basic rate, probably a pre-war rate, and then you implore him and list employers to speed up the job and work the longest possible hours at it, you can hardly be surprised if after a time his wage packet is much larger and heavier than it ever was before. He may now be drawing three or four times as much pay as friends who are risking limbs and lives in the fighting services. This is an unfortunate inequality.

But war-time inequalities and anomalies are not confined to this worker-soldier level. Owing to the rapid speeding-up piece-rate jobs in many war factories, there may be absurd inequalities even inside a single workshop. Thus, a semi-skilled worker on such piece-rates may contrive to even more in a week than the skilled charge-hand or foreman who is held to be responsible for the work.

But then the whole structure of the war industry had to be built up, indeed it had to be rapidly improvised, on the foundations of our pre-war economic life. And all that the Government could ensure was that national service would not result in anybody being sweated or half-starved. There could at least be a reasonable minimum of pay.

Safeguarding conditions

The policy on the wages cannot be taken alone. The various orders for the general control and direction of manpower are complementary: taken together they have a powerful stabilizing influence. Moreover, these steps have taken with the consent and support of the Trades Union Congress and the British Confederation of Employers. The various steps taken may be summarized as follows:-

1)      The Conditions of Employment and National Arbitration Order, 1940, provided that any trade dispute may be reported to the Minister and that, failing settlement by other means, he must refer the dispute for settlement to the National Arbitration Tribunal. Under the Order, an obligation is placed on employers to observe recognized terms and conditions of employment settled by joint machinery. The Order also provides for the recording of any departure from trade practices during the war.

2)      Apart from statutory arrangements, co-operation between organised workers and employers by the strengthening of existing joint machinery has been encouraged, as has also the establishment of new machinery for the settlement of wages and conditions. As part of this policy about 60 joint industries councils and similar bodies have been established since the outbreak of war.

3)      Under the defence Regulation 58A, persons may be directed to perform service under such terms, remuneration and conditions of service as the Minister or the National Service Officer may direct. In fixing these terms, regard must be paid to the agreements of organizations of workers and employers or the decisions of joint industrial councils or arbitration tribunals. Thus, a worker who is transferred in the interests of war production from one employment to another is required to take the recognized wages for the job.

4)      The essential Work Orders, the first of which was made in March, 1941, have now been applied to over eight and a half million workers. These Orders make it illegal in the case of work scheduled under the Order for an employer to dismiss a worker (except on the ground of serious misconduct in the factory), or for a worker to leave his employer, without the permission of the National Service Officer. The Orders also provide for the payment of a guaranteed weekly wage in the case of time workers and a guaranteed daily wage in respect of piece workers. Before an undertaking is scheduled under the Orders, the Minister satisfies himself that there is adequate machinery for determining wages and conditions in the industry. No undertaking is scheduled if there is reason to believe that the terms and conditions of employment in the particular undertaking are less favorable than those recognised under the Arbitration Order.

The general effect of the Essential Work Orders is to control the movement of labour while providing  necessary safeguards for the protection of recognised standards of wages and conditions and ensuring the payment of guaranteed wage.

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