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ments with unpaid holiday clauses provided premium holiday pay for work done (chart 2).

It is apparent from table 3 that, while double time is most frequently provided for work on paid holidays, time and a half is the pay rate most commonly granted for work on unpaid holidays. Although 8 percent of the contracts with paid holidays provided for time and one-half, the agreements did not always state clearly whether time. and one-half was to be paid in lieu of, or in addition to, straight time allowed for holidays not worked. The following clause illustrates this:

The following legal holidays shall be observed with pay: New Year's Day, Decoration Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. * * The Employer agrees to pay for all work performed on such legal holidays at the rate of time and one-half the regular rate of pay.

Table 3 indicates for major industry groups the premium rates specified when employees perform work on designated paid holidays. Of the contracts in 20 of the 28 major industry groups 60

automobile repair shops, amusement and recreation establishments, medical and other health services, and hotels and restaurants.

Includes farming, fishing, educational institutions, nonprofit membership organizations, and government establishments.

percent or more stipulated twice the regular rate of pay for time worked on such days. In other words, employees called to work on holidays received an additional day's pay for work performed. In 8 of these major industry groups, double time for holidays worked was provided by 80 percent or more of the contracts.

Corresponding information for work on days

1 Agreements included in this study were in effect during all or some part of 1950. Employment data were available for 1,705 agreements covering 3,963,000 employees. Of the 1,701 agreements providing paid holidays employment data available for 1,247 covered 2,632,036 employees.

The American Federation of Labor, the Congress of Industrial Organizations, and unaffiliated unions, respectively, negotiated 50, 38, and 12 percent of the agreements. Twenty major manufacturing and 8 nonmanufacturing industries were represented.

Premium Pay, Holiday and Shift Provisions in Selected Union Agreements, 1948-49, U. S. Department of Labor, Bureau of Labor Statistics, p. 17. * See National Industrial Conference Board, Personnel Practices Governing Factory and Office Administration, 1936, p. 16; and Studies in Personnel Policy No. 75, Vacation and Holiday Practices, 1946, pp. 16-17. Because the NICB reports do not distinguish between companies whose workers are covered by collective bargaining agreements and those whose workers are not so covered, it is not possible to compare their findings with conclusions published in this survey. The NICB studies do reveal clearly that the granting of paid holidays was relatively rare in 1936.

designated as unpaid holidays is also shown in table 3. By and large it will be noted that most agreements tended, as might be expected, to pay somewhat lower premium rates for work performed on unpaid holidays. Thus, the rate of time and one-half the regular rate was most frequently specified, occurring in 60 percent or more in 15 of the 28 industry groups.

-IRVING RUBENSTEIN and ROSE THEODORE
Division of Industrial Relations

Development of

British Industrial Relations

EDITOR'S NOTE.-Since production depends on industrial harmony, in large measure, the machinery and methods that Britons employ to maintain amicable labor-management relations is of wide interest. Sir Godfrey Ince, Permanent Secretary, Ministry of Labor and National Service, recently presented an address on British labormanagement relations, from which the following condensed account is derived.

ONE OF THE MOST STRIKING FACTORS in British industry today is the high degree of responsibility accepted by both trades-unions' and employers' organizations. The Government, since the early years of this century, has aimed to develop that responsibility and to assist the parties in creating their own system of collective bargaining and settlement of disputes.

The Trades Union Congress and the British Employers' Confederation represent respectively the great mass of organized workers and the organized employers. The Government consults representatives of these organizations on questions affecting labor through its National Joint Advisory Council (established in 1939), on which the management boards of the nationalized industries are also now represented. All the difficult war labor problems were taken up by the Government through the Council, and the country's manpower was mobilized for war purposes to the highest possible degree. The transition from a war to a

peace economy was effected with a minimum of friction and progress made towards economic rehabilitation through increased production and increased productivity.

Development of Collective Bargaining

By 1850, the first stage in the struggle of unions for recognition by employers and their associations was over, and the establishment of more stable relationships began. A rapid development in the several trades and industries of both workers' and employers' organizations followed the removal of legal disabilities by the Trades Union Act of 1871. After the turn of the century, unions began to amalgamate into larger and more powerful organizations, paralleled by the organization of employers. Since 1868, the trade-union movement has been centralized in the Trades Union Congress. It has no power to instruct affiliated unions, but has a considerable influence on matters of general labor policy. The centralization of employers' organizations developed much later, the British Employers' Confederation being founded in 1919. Again, the affiliated employers' federations retained their autonomy, but the BEC, like the TUC, exercises considerable influence on labor matters.

Collective bargaining grew with the development of these organizations. Some unions, particularly the more powerful craft unions, secured two types of agreements with employers: (1) establishing joint machinery for dealing with disputes by conciliation and in some cases by arbitration; and (2) determining rates of wages, hours of work, holidays, overtime, piece work, allowances, work allocation, employment of apprentices, and working conditions generally. These collective agreements have become a most important part of the regulation of terms of employment. British industrial relations rest on a sound foundation because of the parallel development of joint machinery for dealing with disputes and of the standard-setting agreements. In its origins this was a spontaneous growth within industry itself, not inspired or even explicitly encouraged by the Government.

Development of Conciliation

A Royal Commission, broadly reviewing the situation in 1891, made recommendations which

brought in the State as a third party for the first time, in the Conciliation Act of 1896. This act placed on a government department the responsibility to foster voluntary agreements in industry and gave powers to assist in the settlement of trades disputes. These powers, subsequently transferred to the Ministry of Labor and still operative, include those: (1) to inquire into the causes and circumstances of a dispute; (2) to bring the parties to a dispute together; (3) to appoint a conciliator, or board, on the application of either side; and (4) to appoint an arbitrator on the application of both parties.

Up to the time of World War I conciliation officers intervened officially, only at the request of one of the parties. Since then, both employers and workers have unreservedly accepted them as friends and counselors. Conciliation officers operate mainly behind the scenes, in daily contact with unions and employers' representatives, and often prevent disputes coming to a head. If, however, the department considers it in the public interest to intervene, it does so, and in these circumstances intervention is welcomed.

No action is taken by the department conciliation officers unless and until existing joint negotiating machinery has been fully used. The Government believes in preserving the authority of recognized negotiating machinery and the fundamental principle of industrial self-government.

The 1896 act also enabled the State to provide facilities for arbitration, but left industries free to make their own arrangements as they preferred. Disputes are not referred to arbitration under the act until full use has been made of the regular joint negotiating machinery, and then only at the request of and with the consent of both parties.

The Whitley Report

The recommendations of the Whitley Committee, made at the end of World War I, did not introduce anything particularly new, but gave precise form and meaning to the industrial relations system which had developed, and pointed the way towards more rapid progress on traditional lines. Effect has been given in the succeeding years, to each of the committee's major recommendations: (1) the setting up of joint industrial councils; (2) the statutory regulation of wages in badly organized trades; (3) the appointment of a

permanent court of arbitration, and (4) the setting up of works committees representative of the management and workers in individual establishments.

The joint industrial councils, representing both sides of an industry, were intended to meet regularly to discuss not only questions of wages and working conditions, but also employment, apprenticeship, training, and welfare. A considerable number were established after World War I, some with lasting success, others only temporary. However, during World War II, about 70 new ones were created. By the end of 1949, there were 123 councils. Their regular meetings to discuss matters not in dispute, have helped employers' associations and trade-unions to think of their problems in common, and to see each other as partners rather than as bitter rivals. These councils are one of the factors contributing to the British record of industrial peace: in the years 1946-49, days lost through industrial disputes numbered one-twentieth of those lost in 1919-22.

Statutory regulation of wages was first introduced in certain "sweated" trades in 1909. The Whitley Committee recommended trade-board machinery for industries with little or no organization, instead of solely in trades with low wage levels, and this was incorporated in the 1918 Act. Trade Boards were renamed Wages Councils by an act of 1945 which gave them wider powers, but retained the same general principles and preserved their tripartite nature. Each council has an equal number of employer and labor representatives, and a smaller number of independent members (including the chairman) who represent the general consumer and the public interest. The process of fixing the minimum wage is, however, essentially a matter of collective bargaining, with the addition that the councils' decisions have statutory force. This is of great assistance in industries with many small scattered units which are difficult to organize adequately. In 1950, there were o5 Wages Boards and Councils. Wages Councils are an intermediate stage in the development of voluntary collective bargaining which is the ultimate aim.

A permanent court of arbitration, recommended by the Whitley Committee, was created by the Industrial Courts Act of 1919. It consists of an independent president, a representative of

employers and one of workers. While submission of a case to the court requires the consent of both parties, its awards are invariably accepted by the parties. This act also empowered the Minister to appoint Courts of Inquiry for formal investigations of disputes. Although without power to make recommendations, the courts reach conclusions which almost invariably form the basis for an agreed settlement between the parties.

A few works committees existed in Great Britain prior to World War I. Some of those set up during that war survived the interwar period, although general conditions were not conducive to the success of joint consultation. However, World War II, demanding the highest possible rate of production, favored establishment of joint consultative machinery at the plant level. Many joint production committees, as they were then called, functioned well during the war years. While they were allowed to lapse at the end of the war, it soon became obvious that the production need was as great as ever, and the National Joint Advisory Council then sought to reverse the trend. It recommended that joint consultation should retain its voluntary and advisory character and should not deal with questions normally dealt with through ordinary joint negotiation channels, and that each industry should develop its own types of machinery. National agreements were reached in 26 industries, some of which have circulated a model agreement to constituent firms. Agreement in principle was reached in 14 others to be implemented at local discretion. Today the emphasis is less on the committees' direct effect on production and more on their effect on the human factor, and on the possibility of creating a spirit of genuine cooperation between employers and workers in the factories. Joint consultation is seen as a vital element in personnel management and as a tool for fashioning a real industrial democracy.

World War I Changes

To prevent wartime strike losses, the Conditions of Employment and National Arbitration Order of 1940 introduced arbitration at the request of one party only and prohibited strikes and lock-outs unless the dispute had been reported to the Minister and had not been referred by him

920504-51- 3

for settlement within 21 days of the notification. Every care was taken, however, to fit these almost unprecedented provisions into the existing framework of industrial relations. The order itself resulted from recommendations of the National Joint Advisory Council. Compulsory arbitration was resorted to only when no adequate voluntary machinery existed for the settlement of a particular dispute or when the voluntary machinery had been fully used without success. Furthermore, to prevent prejudicing the position of the Industrial Court for voluntary arbitration, a National Arbitration Tribunal was established to hear cases referred for compulsory arbitration.

An equally important section of the order required employers to observe the terms and conditions settled by collective agreement for the district of the trade concerned, thus greatly reinforcing the authority of existing negotiating machinery and encouraging establishment of new machinery where none had formerly existed. The order was not revoked at the end of hostilities, as expected; with the full consent of the TUC and the BEC, it remains in force and is frequently used. The Government has given assurance that, when either side asks it, the order will be repealed.

Although compulsory settlement of disputes was accepted, State control of wages was not. From time to time, the Government issued statements on the economic position. For example, one, in February 1948, made clear that no further general increase in the level of personal incomes was justified without at least a corresponding increase in productivity. The trade-unions accepted a policy of voluntary wage restraint within the framework of collective bargaining and free negotiation, and the employers voluntarily restricted increases in distributed profits. [This stabilization policy was maintained throughout 1949 and during most of 1950.]

1 Sir Godfrey Ince, K. C. B., K. B. E., entered the Ministry of Labor as a career civil servant in 1919 and has served under successive governments: Conservative, Labor, Coalition. During World War II he was the Min. istry's Director-General of Manpower. In the interwar period he administered the British unemployment insurance system, and acted as adviser on this subject to the governments of Australia and New Zealand.

A committee representing employers, labor, and the public, chaired by the Speaker of the House of Commons, which was appointed by the government in 1916 to inquire into causes of industrial unrest and report on methods of assuring industrial peace. See Joint Industrial Councils in Great Britain, Monthly Labor Review, May 1939 (pp. 1046-1054), or Serial No. R. 932. This means in effect giving notice of a deadlock which would otherwise lead to a strike or lock-out.

Trade-Union Movement

in Vietnam

1

VIETNAM, the only country in the Indochinese Federation with sizable workers' organizations, has three distinct trade-union movements. Two of these movements are in areas controlled by the Bao Dai Government. The larger consists of various non-Communist trade-unions which were started by French workers and are generally affiliated with European trade-union federations. The smaller group comprises the Chinese guilds and mutual protection associations, which in some instances have assumed trade-union characteristics. The third movement, organized and directed by Communists in the areas of Vietnam controlled by the rebel Ho Government, claims a much larger membership than either of the other movements. No unbiased data are available to substantiate or disprove this claim.

Bao Dai Area Trade-Unions 2

Although French workers in Indochina, as French citizens, have exercised the right to form unions since the end of World War II, no legislation dealing with the right of Indochinese workers to organize has yet been put into effect. A freedom-of-association decree issued in 1945 during the Japanese occupation, was never recognized by the current regime and was repealed in August 1950. The Labor Code of 1947 for Indochina, which provided for the formation of unions, was not promulgated by the French High Commissioner of Indochina. The Vietnam Government delegate to the Geneva ILO Conference in June 1950 stated that freedom of association is already recognized in practice, and that the Government intends to sanction trade-union activities by measures based upon international conventions. Actually, freedom of association was curtailed by Ordnance No. 10 of August 1950. It provides that no association (or trade-union) may operate without permission of the Ministry of Interior or local government authorities, and that they may refuse permission without indicating any reason.

Unions in areas controlled by Bao Dai are generally affiliated with either (1) the French Confédération Générale de Travail-Force Ouvrière

The

(CGT-FO); (2) the Confédération Française des Travailleurs Chrétiens (CFTC) (3) the Confédération Internationale des Syndicats Chrétiens (CISC), or (4) the French Communist-led Confédération Générale du Travail (CGT). unions affiliated with the CGT-FO and the Christian unions enjoy full official recognition and cooperate closely with the Labor Inspectorate on wage problems and labor-law enforcement. Those affiliated with the CGT operate clandestinely because of their proclaimed sympathy for Viet Minh.

Two Frenchmen organized the unions affiliated with the CGT-FO. One of these, a trade-union organizer, went to Indochina in June 1947, with authorization from the French Ministry of Overseas Affairs, to start trade-unions among European employees. He founded the Association of Labor Unions of Civil Servants in Indochina, which affiliated with the CGT-FO.

Leaders of the CGT-FO movement in Indochina set up, on June 27, 1948, a Departmental Federation of Trade Unions. This federation consisted of the Association of Labor Unions of Civil Servants in Indochina, the Professional Association of French Commercial Employees in Cochinchina, the Union of Agents of Air France, the Labor Union of the Personnel of the Saigon Arsenal, and the Labor Union of the Merchant Marine Officers in Indochina. The CGT-FO formally opened its headquarters in Saigon on August 1, 1948.

The initial organizing drive was primarily concerned with employees of the governmentoperated railroads. Organizers claimed that the Association of Labor Unions of Civil Servants in Indochina, which apparently includes railroad workers, had 2,100 members, including both Europeans and Indochinese, in June 1948. Membership of the CGT-FO unions was estimated by the Labor Inspectorate at about 4,800 at the end of 1949. Included were 3,500 Europeans and 1,000 Indochinese in the civil-service union, and 300 French workers in private industry and commerce, members of the Professional Group of French Employees of Cochinchina."

The Christian trade-union movement has organized two groups. The larger is affiliated with the CFTC, and consists of 4,000 Indochinese and 1,600 French civil servants. The other group is affiliated directly with the CISC, and claimed,

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