Cornell University Library HD5367.M21 1922 Industrial courts act, 1919.Report by a HD Gt, Brit. Court of Inquiry. 5367 Report. M21 1922 53^ M2/ THE LIBRARY OF THE NEW YORK STATE SCHOOL OF INDUSTRIAL AND LABOR RELATIONS AT CORNELL UNIVERSITY INDUSTRIAL COURTS ACT, 1919. REPORT BY A COURT OF INQUIRY CONCERNING The Engineering Trades Dispute, 1922. Presented to Parliament by Command of His Majesty. LONDON ; FEINTED & PUBLISHED BY HIS MAJESTY'S STATIONEEY OFFICE To be purchased through any Bookseller or directly from H.M. STATIONERY OFFICE at the following addresses : Imperial House, KingsTyay, London, ■W'.C.2, and 28 Abingdon Street, London, S.W.I; 37 Peter Street, Manchester; 1 St. Andrew's Crescent, Cardiff; and- 23 Forth Street, Edinburgh; or from EASON & SON, Limited, 40 & 41 Lower Sackville Street, Dublin. 1922 Price 6d. net. Cmd. 1653. APPOINTMENT OF COURT OF INQUIRY AND RULES OF PROCEDURE. ENGINEERING DISPUTE. Whereas by tke Industrial Courts Act, 1919, the Minister of Labour has pow6|- to appoint a Court of Inquny to inquire into the causes and circumstances of any existing or apprehended trade dispute, and any matters appearing to him to be connected with or relevant to the dispute, and to make rules regulating the procedure of any such Court ; And whereas a dispute has arisen between the Engineering and the National Employers' Federations and the Amalgamated Engineering Union in relation to the Memorandum of 17th and 18th November (Schedule I., attached hereto), and between the Engineering and National Employers' Federations and the Trade Unions specified in Schedule II. attached hereto in relation to clauses 1, 2 and 3 of the aforesaid Memorandum. Now, therefore, the Minister of Labour by virtue of the powers vested in him by the said Act, and all other powers enabling him in that behalf, appoints Sir William W. Mackenzie, K.B.E., K.C., to be a Court of Inquiry, and directs him to inquire into and report upon the causes and circumstances of the dispute ; And the Minister of Labour directs that the following rules regarding the procedure of the Court shall have effect, that is to say : — (1) (i) Any person may, by notice in writing signed hy the said Sir William W. Mackenzie, be requested to attend as a witness and give evidence before the Court, or to attend and produce any documents relevant to the subject-matter of inquiry, or to furnish, in writing or otherwise as the Court may direct, such particulars in relation to the subject-matter of the inquiry as the Court may require, (ii) The Court may require any witness to give evidence on oath, and may administer an oath for that pui-pose. (2) The report of the Court or any interim report shall be made to the Minister in writing. (3) Subject to these Eules the Court may regulate its own procedure as it thinks fit. (4) In these Bules the expression " Act " means the In- dustrial Courts Act, 1919 ; the expression " Minister " means the Minister of Labour; and the expression ' ' Court ' ' means the Court of Inquiry appointed above by the Minister under the Act. And the Minister further appoints Mr. G. H. Ince to be Secretary to the Court. Dated this 27th day of April, 1922. Given under the Official Seal of the Minister of Labour. H.J. Wilson., Secretary, Ministry of Labour. SCHEDULE I. Memorandum of Conference between The Engineering and The National Employers' Federations and The Amal- gamated Engineering Union, held at Broadway House, Tothill Street, Westminster, London, S.W.I, on 17th and 18th November, 1921. I. — General. 1. The Trade Union shall not interfere with the right of the Employers to exercise managerial functions in their establish- ments and the Federations shall not interfere with the proper functions of the Trade Union. 2. In the exercise of these functions, the parties shall have regard to the Provisions for Avoiding Disputes of 17th April, 1914, which are amplified by the Shop Stewards and Works Com- mittee Agreement of 20th May, 1919, and to the terms of other National and Local Agreements between the parties. 3. Instructions of the Management shall be observed pending any question in connection therewith being discussed in accord- ance with the provisions referred to. II. — Overtime. It is agreed that in terms of the Overtime and Nightshift Agreement of 29th and 30th September, 1920, the Employers have the right to decide when overtime is necessary, the work- people or their representatives being entitled to bring forward under the provision referred to any cases of overtime they desire discussed. Meantime the overtime required shall be proceeded with. Signed on behalf of : — The Engineering and the The Amalgamated Engineering National Employers' Federa- Union : tions : J. T. Brownlie, Allan M. Smith, Chairman. Chairman. A. H. Smethurst, James Brown, Secretary. Secretary. PROPERTY OF LIBRARY NEW YORK STATE SCHOOL ''"'' INDUSTRIAL AND LABOR RELATIONS ' ' • CORNELL UNIVERSITY SCHEDULE II. (1) The Federation of Engineering and Shipbuilding Trades comprising the following Unions : — Amalgamated Society of Brassworkers. Amalgamated Society of Farriers and Blacksmiths. Amalgamated Society of Wheelwrights, Smiths and Motor Body Makers. Amalgamated Society of Woodcutting Machinists. Amalgamated Society of Woodworkers. Amalgamated Union of Upholsterers. Associated Blacksmiths' and Ironworkers' Society. Birmingham Operative Tinplate and Sheet Metal Workers' Society. Boilermakers and Iron and Steel Shipbuilders' Society. Dock, Wharf, Eiverside and General Workers' Union. Electrical Trades Union. General Iron Fitters' Association. Iron, Steel and Metal Dressers' Society. London United Brass and General Metal Founders' Society. National Amalgamated Furnishing Trades' Association. National Amalgamateid Union of Labour. National Amalgamated Union of Bnginemen, Firemen, Mechanics, Motormen and Electrical Workers. National Brassworkers and Metal Mechanics. National Society of Coppersmiths, Braziers and Metal Workers. National Union of General Workers. National Union of Operative Heating and Domestic Engineers. National Union of Sheet Metal Workers and Braziers. National Union of Stove, Grate and General Metal Workers. National Union of Vehicle Builders. United Kingdom Society of Coachmakers. Operative House and Ship Painters. Amalgamated Society of Eailway Vehicle Builders, Wheel- wrights, Carpenters and Mechanics. Scottish Brass Moulders' Union. Scottish Painters' Society. Ship Constructors' and Shipwrights' Association. United Operative Plumbers' Association. United Patternmakers' Association. West of Scotland Brass Turners, &c. Winding -and. General Engineers' Society. Northern' United Enginemen's Association. (2) The National Federation of General Workers comprising the following Unions : — Amalgamated Society of Gas, Municipal and General Workers. Dock, Wharf, Eiverside and General Workers' Union. Municipal Employees' Association. National Amalgamated Union of Enginemen, Firemen, Mechanics, Motormen and Electrical Workers. National Amalgamated Labourers' Union of Great Britain and Ireland. National Amalgamated Union of Labour. National Union of General Workers. National Union of Vehicle Workers. Northern United Enginemen 's Association. Public Works and Constructional Operatives' Union. Scottish Union of Dock Labourers. Workers' Union. (3) The National Union of Foundry Workers. (4) Amalgamated Moulders and Kindred Industries Trades Union. (6) United Operative Spindle and Flyer Makers' Trade and Friendly Society. REPORT. To the Eight Hon. The Minister of Labour. Sir, I HAVE the honour to submit the following Eeport : — 1. The Court of Inquiry constituted by the prefixed Minute of Appointment has held five meetings at which the parties to the dispute referred to in the Minute were present, two in camera and three in public. The meetings were held at No. 5, Old Palace Ward, London, on the 28th April, 3rd, 4th, 5th and 6th May, 1922. 2. At the enquiry Sir Allan Smith, K.B.B., M.P., represented the Engineering and National Employers' Federation; Mr. J. T. Brownlie, J.P., the Amalgamated Engineering Union ; Mr. H. H. Slesser and Mr. Arthur Henderson, Jr. (instructed by Mr. P. W. Cole) the Federation of Engineering and Shipbuilding Trades, the National Union of Foundry Workers, the Amalgamated Moulders and Kindred Industries Trades Union, and the United Operative Spindle and Flyer Makers' Trade and Friendly Society ; and Mr. J. N. Bell, J.P., Mr. Will Sherwood, Mr. G. Parker and Mr. W. T. Kelly, the National Federation of General Workers. 3. Only two witnesses were called in the course of the Inquiry, Mr. W. H. Hutchinson and Mr. Peter Dickinson, who were called on behalf of the Amalgamated Engineering Union. The above- mentioned parties, however, put in a considerable amount of documentary evidence. Dispute re Overtitne between the Employers and the A.E.U. 4. The immediate cause of the dispute which was the subject of inquiry was a difference between the Engineering and" the National Employers' Federation and the Amalgamated Engineering Union as to the interpretation of a Clause known as Clause (j) in an agreement embodied in a memorandum of con- ference held between those organisations on 29th and 30th September, 1920, concerning the question of overtime. The Clause in question is as follows : — (j) The Federations and the Trade Union agree that systematic overtime is deprecated as a method of production and that when overtime is necessajy the following pro- visions shall apply, viz. v — No Union workman shall be required to work more than 30 hours' overtime in any four weeks after full shop hours have been worked, allowance being made for time lost through sickness, absence with leave or enforced idleness. In the following cases overtime is not to be restricted — Breakdowns "^ Eepairs f Whether for the Employers or their Replacements ( customers. Alterations ; Trial trips. Completion of work against delivery dates. So far as repairs to ships are concerned the removal of restriction on overtime shall not affect the operation of any agreement made by the Union or its constituent Trade Unions with organisations of ship repairing employers." 5. The agreement (see Appendix) from which the above-quoted Clause is extracted was submitted to the members of the Amalgamated Engineering Union, and on a ballot was accepted by a majority of some 43,000 out of a total vote of some 81,000 ; and " took effect on and from the commencement of the fourth full pay day after acceptance by the parties," that is to say, on or about 19th December, 1920. 6. On 28th December, 1920, a circular letter was addressed to the District Delegates of the Amalgamated Engineering Union by the (jreneral Secretary which contained the following observations : — ' ' With regard to Section (j) of the Agreement which deals with the maximum amount of overtime that Members are called upon to work, it should be understood that the para- graph implies that it is considered necessary by both parties. District Committees should have due regard to the num- bers of men unemployed, and whether such overtime will tend to absorb members who are unemployed." 7. The Employers on becoming acquainted with the construc- tion which had been placed by the Amalgamated Engineering Union on the Clause in question challenged its accuracy, and the parties met in conference to consider the matter on 7th April, 1921. Following this conference a letter was addressed on behalf of the Employers' Federations to the President of the Amal- gamated Engineering Union, which contains the following :es : — " Embargo on Overtime. — The Overtime Agreement arrived at so recently as 29th and 30th September, 1920, and confirmed by the vote of your members, provides that over- time may be worked up to 30 hours in any four weeks, and that in certain cases, specified in the Agreement, overtime is unrestricted. Notwithstanding that the Agreement pro- vides in this way for the working of overtime, in many districts an embargo has been placed by your officials on the working of overtime. " Prior Consent to the Working of Overtime. — During the discussion which preceded the making of the Agreement referred to, suggestions were made by your deputation that overtime should not be worked without the prior consent of representatives of your Union. The employers could not see their way to agree to this condition, and it was ultimately departed from by your representatives. " I may remind you that similar claims have been made in practically every discussion which has taken place on over- time and the position has been maintained that, subject to agreed limitations from time to time, the employers are entitled to require their workpeople to work such overtime as may be necessary. "Notwithstanding this, your Council has thought fit to issue an instruction to your District Officials to the effect that their prior consent to overtime is necessary. " On this question you will further keep in mind that, although the employers contended, and you by your agree- ment accepted the contention, that overtime cannot be dis- pensed with, both parties agreed that systematic overtime is deprecated, and it was explained to your representatives that, in accordance with the Provisions for Avoiding Disputes, if any case arose where your members thought that such advantage was being taken of the Agreement as resulted in systematic overtime, you were entitled to raise the question and have it discussed in local conference and if necessary in central conference. This, as you are aware, has always been open to your members." The letter also refers to some cases of difficulty which had arisen at certain firms respecting the manning of machines and the employment of apprentices on systems of payment by results. The letter proceeds : — " At the conference to-day it was pointed out to your deputation that the Federations had very seriously considered the position arising out of the demands which had been made and the action taken in connection with the questions above referred to, "and had come to the conclusion that the issues involved, and the attitude of your members created a situation in the engineering and allied industries which was, without exaggeration, one of the utmost gravity." 8. It was stated in this communication that the employers were prepared to resume negotiations on the basis that the " embargo " on overtime was withdrawn, that certain stoppages of work were terminated, that on questions of detail respecting the manning of machines and apprentices no action be taken by members of the Amalgamated Engineering Union until the general question had been- fully dis- cussed and that the Union should agree that the prior consent of the representatives of the Union was not required, the only restriction on overtime being the qualified limitation contained in paragraph (j) of the Overtime Agreement of 29th and 30th Sep- tember, 1920. In this last connection the Union were reminded that the employers had offered, in the event of the acceptance of the contentions put forward by them respecting overtime, to discuss further with the Union the effect of the terms of paragraph (j). 9 9. The " embargo " on overtime referred to in the letter and the matters respecting individual firms were disposed of, but not the question of prior consent to the working of overtime. 10. A national conference of the Union was convened, in the report of which it was stated that the Executive Council " believii^ that the correct interpretation of Clause (j) was that in all cases where overtime was required on production work, con- sultation would take place and the necessity for overtime proved to our local official prior to the same being worked, conveyed this interpretation to the Districts and Organising District Delegates in their communication dated 28th December, 1920." The conference confirmed the Executive Council in the position they had taken up and passed the following resolution : — " That this National Conference wholeheartedly suppo;rt the E.G. in their interpretation of the overtime and night- shift agreement ; further, we pledge ourselves to meet this threat of a national lock-out by the Employers by using the full strength of our organisation in such a manner as shall be agreed upon by the E.C." 11. On 2nd June, 1921, a^ further conference between the Amalgamated Engineering Union and the Employers' Federa- tions took place on the subject of Clause (j) : no agreement was reached, but it was jointly resolved, " that further consideration of the question stand adjourned until a suitable date can be arranged by the parties .~" 12. An offer had been made by the Union to submit the matter of the interpretation of the clause to an independent arbitrator, but this offer was refused by the employers. Dispute re " Managerial Functions " between Employers and A.E.U. 13. Then followed an interval during which other matters appear to have occupied the attention of the parties and the ques- tion of Clause (j) was not raised again until 10th November, 1921, when the parties met in conference. The employers, as I was told by their representatives at the hearing, from the dis- cussions with the Union representatives at those conferences, cam© to the conclusion that the motive power behind those dis- cussions was not so much a question of overtime or no overtime, but as to whether or not the employers were to have the right to exercise their functions without prior consultation with and prior consent of the workpeople and their representatives. At the conference of 10th November, 1921, the question which came to be known as that of " managerial functions " was thereupon raised by the employers. The conference was succeeded by another on the subject on 17th which was continued into the 18th November, 1921. The matter having been raised it was deemed by the employers to be advisable to have it made clear and at the conference held on the latter date the Memorandimi which forms Schedule I of the Minute of Appointment was agreed between the representatives of the parties. It was on the teniis of this Memorandum that the whole of the subsequent trouble arose. 10 14. The provisions of the Memorandum are as follow : — I. — G-ENBRAL. 1. The Trade Union shall not interfere with the right of the Employers to exercise managerial functions in their establishments, and the Federations shall not interfere with the proper functions of the Trade Union. 2. In the exercise of these functions, the parties shall have regard to the Provisions for Avoiding Disputes, 1914, which are amphfied by the Shop Stewards and WorKs Com- mittee Agreement of 20th May, 1919, and to the terms of other National and Local Agreements between the parties. 3. Instructions of the Management shall be observed pending any question in connection therewith being dis- cussed in accordance with the provisions referred to. II. — OVMRTIMB. It is agreed that in terms of the Overtime and Night- shift Agreement of 29th and 30th September, 1920, the Employers have the right to decide when overtime is neces- sary, the workpeople, or their representatives, being entitled to bring forward under the provisions referred to any cases of overtime they desire discussed. Meantime, the overtime required shall be proceeded with. 15. The Memorandum was subject to ratification by the mem- bers of the Amalgamated Engineering Union according to their constitution, and it was duly submitted to a ballot of the Amal- gamated Engineering Union. A copy of the ballot paper and the letter accompanying and forming part of it was put in evidence. It appears to set out the issues fairly and clearly. It reminded those who were to vote that the consequences of rejec- tion would be serious, and drew attention to the fact that 90,000 members of the Union were at that time unemployed, that there was a condition of industrial stagnation, and that the Union had been and would probably for some time be subjected to severe financial strain. It stated that the Executive Counicil and National and Divisional Organisers in conference had decided by resolution to recommend acceptanice. The result of the ballot was communicated to the Employers' Federations on 27th January, 1922, and was a-s follows : — In favour of accepting the proposed Memorandum 35,525 Against 50,240 The total votes cast thus numbered 85,765. The total membership of the Union at the time was about 404,000 or 405,000. Therefore only about 21 per cent, of the members voted ; but it was stated that the smallness of this percentage was not unusual in ballots taken by the Union. 11 16. At this time, when the result of the ballot was communi- cated to the employers, certain conferences known as Composite Conferences on matters of local concern were pending. On 28th January, 1922, the Union were informed that in view of the result of the ballot these Composite Conferences could not be proceeded with. On 13th February the Employers' Federations requested a conference with representatives of the Amalgamated Engineering Union. The Union made it a condition that the Composite Con- ferences should be held. On 21st February, 1922, the Secretary of the Employers' Federations wrote to the Amalgamated Engineering Union as follows : — ' ' Memorandum op Confbebnce of 17th and 18th >■ November, 1921. I have to advise you that your letter of 20th February, 1922, was the subject of consideration at. a meeting held to-day. I am desired to express regret that your Executive Council should have thought fit to attach importance to questions of detail rather than to a question of principle of such magnitude as is involved in the result of the adverse ballot vote of your members. The Federations have resolved that as from Saturday, 11th March, 1922, it is not possible for federated employers to give employment to the members of your Union in view of the situation created by their ballot, and instructions have been given to federated firms to post notices in their works accordingly. I am desired again to impress upon your Council the gravity of the situation which has arisen owing to your members having thought fit to call in question a basic principle on which industry is conducted. The Employers f eeT that in view of the fundamental altera- tion which the ballot has brought forward there is no alterna- tive open to them but to face the situation and in the national interest to place the industry on a sound economic basis, and accordingly the relations between the Employers and their workpeople, the working conditions, and the wages will require to be brought under review." Lock-out Notice. 17. The notice referred to in the Employers' letter was posted on 25th February, 1922, and was as follows : — The Engineering and the National Employers' Federations. The members of the Amalgamated Engineering Union having by ballot refused to accept the Memorandum of 12 Agreement arrived at in Conference on 17th and 18th November, 1921, which was jointly recommended . by the Federations and by the Executive Council and the National and Divisional Organisers of the Union for acceptance by their constituent bodies, and which Memorandum provides for the maintenance of the right of the Employers to exercise managerial functions in their estabhshments, the Federa- tions have resolved that as from Saturday, 11th March, 1922, it is not possible for federated employers to give employment to members of the Union in view of the situation created by their ballot. By Order, James Brown, Secretary. London, 25th February, 1922. Notice is hereby given to the members of the Amalgamated Engineering Union in accordance with the foregoing Eesolution. 18. The difficulty regarding the Composite Conferences was adjusted and the parties met in conference on 28th February, 1922, that is between the date on which the notice was posted and that on which it took effect, but without result ; and the stoppage of work so far as the Amalgamated Engineering Union were con- cerned began in accordance with the notice on 11th March, 1922. Dispute between Employers and the Unions other than the A.E.U. 19. On 21st February, 1922, that is the date of the letter to the Amalgamated Engineering Union referred to in paragraph 16, the employers, through the Secretary of their Federations, sent to the Unions (other than the Amalgamated Engineering Union) whose members were employed in the Federated Engineering Shops the following letter : — " Maintenance op Eight of Employees to Exercise Managerial Functions. I am desired to send herewith copy memorandum of con- ference of 17th and 18th November, 1921, between the Federations and the Amalgamated Engineering Union. The memorandum was balloted upon by the members of the Amalgamated Engineering Union, with the result that the memorandum was not accepted. The position of matters has been under the consideration of the Federations. I am desired to send you copy of correspondence which has passed with the A.E.U. in regard thereto, and to say that, having regard to the fifth paragraph of the letter to the A.E.U. of this date, representatives of the Federations will be glad to meet representatives of your organisation in con- ference. 13 If you will be good enough to let me have an option of days in the week commencing Monday, 27th February, 1922, con- venient to your organisation, I shall be pleased to make the necessary arrangements for the conference." 20. Conferences between them took place on 1st, 2nd and 4th March, 1922. The position of the Employers at these conferences, as put before me by Sir Allan Smith, was that they deemed the action of the Amalgamated Engineering Union as an attack upon the ' ' whole principle of control ' ' ; that it was essential for the Employers to know what the attitude of the other Unions was ; and that if these Unions had no quarrel with the Employers on the subject the easiest way for them to say so was by signing a docujment consisting of the first three Clauses of the Memor- andum of 17th and 18th November, 1921, with the addition of the words at the end of Clause 2 " so far as such agreements at present exist." 21. On 2nd March, 1922, a letter was sent on behalf of the Employers to the Federation of Engineering and Shipbuilding Trades stating that the Employers would expect to receive on or before 11th March, 1922, an intimation that the Unions affiliated to the Federation would sign either by way of agree- ment or joint recommendation the memorandum in question. Eeference to the Federation of Engineering and Shipbuilding Trades may in this connection be regarded, as including a reference to the National Federation of General Workers and the remaining three Unions. 22. The Federation replied stating that the notice was too short, expressing surprise that " Unions which have no quarrel with the Employers on overtime and working conditions should without iprovocation have an ultimatum in regard to these important questions thrust upon them." 23. The conferences led to no agreement, but the representa- tives of the Unions concerned in the negotiations decided to submit the Employers' proposals to a ballot vote without recommendation. On 24th March, 1922, the Employers were informed by letter of the result of the ballot, which, was as follows : — For acceptance of the Employers' Memorandum 49,503 Against acceptance ... ... ... 164,759 24. The number of members engaged in these branches of trade now affected and entitled to vote was stated at the hearing before me to be 870,800, of whom 214,462 voted. 25. Through the efforts of the Prime Minister and also of Mr. Arthur Henderson, Mr. Clynes, Mr. Bowerman, and others of the National Joint Council of the Labour Party and Trade Union Congress negotiations continued, and an effort was made to arrive at a basis of settlement, unfortunately without success. The 14 stoppage of work was extended to the unions other than the Amalgamated Engineering Union and became effective on 2nd May, 1922. Considerations. 26. From the above narrative it will be seen that the real cause of the stoppage of work in the case of the members of the Amal- gamated Engineering Union and in the case of the members of the other Unions was — the refusal of the workpeople through their ballot to assent to the proposition that Instructions of the Management shall be observed pending any question in connection therewith being discussed in accordance with the procedure for avoiding disputes : Which means that where the Management has introduced a change in the recognised working conditions of the workshop the workpeople through their ballot had refused — in the case of dis- agreement between the Management and the workpeople — to assent to the change becoming operative until after the procedure for avoiding disputes had been gone through — a period varying from about three to six weeks. 27. In order adequately to measure the dimensions and character of the dispute, notice needs to be taken of the agree- ment referred to in Clause 2 of the Memorandum of 17th and 18th November, 1921. (See Par. 14.) The relations between certain of the Trade Unions and the Employers' Federations have a long and honourable history. Sir Allan Smith, in addressing me, said : " We have lived with the Trade Unions, and particularly with the Engineering Trade Unions, for the last twenty-five years. We have had our differences ; at times these differences have become acute ; but the relations between the Engineering Employers and the Trade Unions in the Engineering Trade for that period leave very little to be desired." 28. The eariiest agreement to which reference was made at the hearing was entered into in 1898. In that year an agreement was concluded between the Federated Engineering Employers, the Amalgamated Society of Engineers (now included in the A.E.U., and other Trade Unions, which contained Pro- visions for Avoiding Disputes based on the method of discussion and conference in the works, by local associations and officials, and by the central authorities of the respective organisations. In 1907 a fresh agreement was arrived at, and continued until 1913, when it was terminated. On 17th April, 1914, the agreement between the Engineering Employers' Federations and the Amalgamated Society of Engineers rwas concluded and is referred to in the Memorandum of 17th and 18th November, 1921, as the Provisions for Avoiding Disputes. Though, as stated, the agreement was originally made with the Amalgamated Society of Engineers, certain other Unions subse- quently became parties. A Hmited number of Unions represented before me are still, however, not parties to this or any similar agreement. They , or such of them as were parties to the 47 Hours' 15 Agreement, have undertaken to enter into such agreements. Under the 47 Hours' Agreement dated 19th November, 1918, all the Unions parties to that agreement, in consideration of the working week being reduced to 47 hours, undertook immediately to enter into provisions for avoiding disputes. This agreement is set out in the Appendix. 29. The provisions of the Agreement of 17th April, 1914, are important. These also are set out at length in the Appendix. They provide means whereby questions arising in the workshop may be settled in the works failing which, after intermediate steps, the matter may be carried to a local conference and ultimately to central conference which meets at York, and the last provision is : — " Until the procedure provided above has been carried through, there shall be no stoppa-ge of work, either of a partial of a general character. ' ' 30. This agreement is supplemented by a further agreement of 20th May, 1919, respecting appointment and functions of Shop Stewards and Works Committees. This further agreement which is of considerable length and is also set out in the Appendix, pro- vides that in each federated establishment each Trade Union which is a party to the agreement may have its Shop Steward who ' ' shall be afforded facilities to deal with questions raised in the shop or portion of a shop in which they are employed." The agreement also provides for the setting up in each estabhshment ol a Works Committee consisting of not more than seven repre- sentatives of the Management and not more than seven Shop Stewards, representative of the various classes of workpeople employed. The following provisions of the agreement relating to the functions of the Shop Stewards and Works Committees deserve special attention : — (a) A worker or workers deciding to raise any question in which they are directly concerned shall, in the first ia'stance, discuss the same with their foreman. (b) Failing settlement the question shall be taken up with the Shop Manager and/or Head Shop Foreman by the appropriate Shop Steward and one of the workers directly concerned. (c) If no settlement is arrived at, the question may, at the request of either party, be further considered at a meeting of the Works' Committee. At this meeting the Organising District Delegate may be present, in which event a representative of the Employers' Association shall also be present. {d) Any question arising which affects more than one branch of trade or more than one department of the works may be referred to the Works Committee. (e) The question may thereafter be referred for further consideration in terms of the " Provisions for Avoiding Disputes." 16 (/) No stoppage of work shall take place until the question has been fully dealt with in accordance with this agreement and with the " Provisions for Avoiding Disputes. ' ' 31. Experience of the working of these agreements appears to confirm what a perusal of them suggests : that they do great credit to the ingenuity and good sense of the parties and afford a safeguard against the nurturing and continuance of grievances or difficulties which, if not ventilated, would have grave consequences. 32. Naturally, if the question raised is one which, on account .of its importance, goes right through to the Central Conference, its determination is a matter of time ; but it was put before me that the period elapsing between the discussion of the matter in the shop and its joint consideration by the chief authorities of the respective organisations does not normally exceed six weeks and may, if the dates are propitious, he considerably less. It is apprehended, however, that this period might be shortened to the advantage of all parties. 33. Clauses 1 and 2 of the Memorandum of 17th and 18th November, 1921, are not in any sense the subject of difference or dispute. It is unnecessary, therefore, to consider what are and what are not ' ' managerial functions ' ' and ' ' proper functions of the Trade Union. ' ' So far as the Unions, other than the Amalga- mated Engineering Union, are concerned, difference arises solely in respect to clause 3. In the case of the Amalgamated Engineer- ing Union, the section respecting overtime is also contested. 34. The differences with which this inquiry deals are thus two in number : both affecting all the Unions including the A.E.U. and one affects the A.E.U. only. The question which arises upon clause 3 is whether, when any change in the workshop conditions IS being introduced, it should be introduced and given effect to pending the procedure laid down in the Provisions for Avoiding Disputes being followed, or whether the matter should be held up pending such procedure being followed — which may, as already stated, be a period extending up to 6 weeks. In the case of the Amalgamated Engineering Union alone the question which arises on the meaning of the overtime clause, is whether when the occasion for working overtime on production work (not on repair work) arises, the employer alone is to decide that it is " necessary " within the limit of 30 hours in the four weeks, or whether the employer and the Union should agree that it is " necessary." 35. No doubt was left in my mind as to the genuineness of the desire on all sides to find a settlement of the present difficulty which would bring satisfaction to all parties. In presenting the case for the Amalgamated Engineering Union Mr. Brownlie was commendably frank in stating that the ideal of himself and his colleagues was a readjustment of the present relationship between employers and workers. But he made it also clear that, in his view, movement in such a direction was limited and regulated by the state of public opinion. He and Mr. Hutchinson and Mr. 17 Dickinson, whom he called as witnesses, were emphatic that their Union had no desire to interfere with management functions provided that the agreements between the parties were honoured and that, in the absence of agreements, the practices and customs of the various districts were observed. Similar declarations were mad© on behalf