INTERNATIONAL LABOUR OFFICE GENEVA Studies and Reports Series A No. November 5th, 11 iQ2o. The Dispute in the Metal Industry in Italy. Trade Union control in Industry.1 INTERVENTION TRADE UNION or CONTROL I N THE GOVERNMENT. I N D U S T R Y ESTABLISHED B Y DECREE. Plenary Assembli] of the Manufacturers. On September 16th the manufacturers met in plenary session at Milan to hear the report of their delegates on the result of thé Turin negotiations. During the session Mr. Pirelli read a communiqué from the Stefani News Agency concerning the Decree establishing Trade Union control which had just been published in the press. This information made a deep impression on the assembly, and some one accused the President and the General Secretary of the General Confederation of Industry. Messrs. Conti and Olivetti, of having exceeded the powers granted them in giving their assent to the project of the Premier without having immediately infcrmed the assembly. The assembly had just learned the news from the press and was thus confronted with a "fait accompli" 2. 1 The first part of this Study appeared in Series A, No. 2, September 24th, 1920. 2 On this difference between the manufacturers and the leaders of their Federation, Mr. Crespi, President of the Banca Commerciale Italiana, published the following explanations in the Giornale d'Italia : "In a resolution submitted to the assembly of the Federation of Employers on September 14th, the necessity for considering the question of Trade Union control was recognised. ' This resolution, submitted 36 hours before the meeting of Messrs. Conti and Olivetti with the Premier, was passed unanimously amidst the applause of the assembly, which proves that Senator Conti had received the absolute consent of the assembly on the Question of workers' control, before the Turin interview". IL0-SB/A11 ENGL COP. 4 9 A lively discussion ensued, and the manufacturers finally adopted the principle of control whilst requesting the Governing Body of the General Confederation of Industry "to make its collaboration in the Joint Commission mentioned by the Decree absolutely conditional on previous evacuation of the factories" \ The Meeting of the Employers' and Workers' Delegates in Rome. On September 18th, the President of the Council, desirous of finding a solution of this and other pressing questions, invited both sides to a meeting in Rome. The meeting took place during the afternoon of the 19th at the Ministry of the Interior. The manufacturers were represented by : Senator Conti, President of the General Confederation of Industry ; Mr. Olivetti, General Secretary of the Confederation ; with Messrs. Crespi, Falk, Pirelli, Riva, Sacerdote, Ichino. The workers' delegation consisted of : Mr. d'Aragona, General Secretary of the General Confederation of Labour ; Messrs. Colombino and Baldesi, secretaries ; Messrs. Marchiaro, Raineri. and Misiroli, workers. The Premier read the Draft Decree on Trade Union control, and expressed the desire that a compromise on the economic and disciplinary questions be arrived at on the same day. He proposed that a general increase for the whole country" of 4 lire per 1 The following is the .text-of the manufacturers' resolution :— "The General Confederation of Industry notes that in spite of the ¡decisions of the General Confederation of Labour, there has been a spread of. occupation of establishments by the workers, which shows that its actual decisions either differ from the official .decisions, or are not obeyed by the masses ; "It deplores the fact that the Government persists in not understanding that the occupation of the factories and the violation of -personal liberty on the part of the workers have transferred the conflict from the economic to the political order of ideas ; "It notes that for the first time in an industrial country these acts of violence were in Italy directed against the manufacturers to whom is due the first application in Europe of the eight hour day, and the realisation of the majority of social reforms which are now being put into execution with the collaboration of the most prominent manufacturers ; "It affirms that the manufacturers in refusing to conclude negotiations before obtaining by the evacuation of the factories the admission that such methods are incompatible wih a civilised regime, are acting in defence of the whole of Society, and with the object of averting the complete discredit and dissolution of the country ; "It demands that the establishments be restored to their legal and normal state taking account of the absolute necessity for restoring order and discipline in the workshops by means of sanctions laid down by law — in particular, in order that the chiefs and employees who have been subjected to physical or moral violence might not lose their authority or their prestige ; — 3 — day be agreed to by both sides, a n exception, however, being made — on the request of the employers — in the case of the small scale industries. An agreement was arrived at to consider as small scale industries those employing not more than 75 workers. To these would be a p p l e d a reduction of 20 % on the new rates fixed for the other industriees. The question of discipline gave rise to a long discussion. Mr. Crespi declared that the manufacturers could accept the reinstatement of those workers who had been guilty of acts of violence only as a thing imposed on them by the Government. The Premier stated that the Government accepted the responsibility. An agreement having been reached, the text was immediately drawn up, and on the same evening Mr. Olivetti, representing the General Confederation of Industry, and Mr. d'Aragona, representing the General Confederation of Labour, signed the following :— "The Parties in a meeting presided over by Mr. Giolitti, President of the Council, have, after long discussion, concluded the following agreement :— "Whereas the mechanics demand — and the manufacturers do not agree — that increases in wages.be retrospective to July 1st and that wages be paid for the period of occupation of the factories ; "Whereas the manufacturers demand — and the workers refuse — payment for damage caused, taking into account the difficulty cf controlling production ; the principle must also be taken into account that no wages shall be paid for days of illegal occupation of the workshops nor for the days necessary for restoring the industries to their normal state, and that suitable compensation be made for the damage inflicted ; "The General Confederation of Industry reaffirms that in order to increase production, which is essential for the safety of the country, it is necessary that the present state of antagonism between the manufacturers and the working classes should cease, so that by means of harmonious collaboration between the (manufacturers themselves on >the one hand, arid the administrative employees, the technical staff, and the workers, on the other, the intensity and the disciplined development of production be again ensured. "if the other side is also animated by the same intentions, the General Confederation of Industry consents to the ¡principle of workers' control applied by legislative means, provided this control imply neither monopoly nor .privilege for Trad« Union organisations, that it mean co-operation and co-responsibility of the different elements of industry, that it be applied in the interests of the collectivity, and that it do not hinder the liberty of action necessary to industry. "Nevertheless, confronted with the promulgation of the Ministerial Decree on the control of industry, the General Confederation of Industry requests the Governing Body to make its collaboration in the Joint Commission mentioned by the Decree absolutely conditional on the previous evacuation of the factories. "Lastly, the Confederation decides to leave to the National Federation of the Engineering and Metal Industry, the solution of economic questions arising between its members and their own workers". — 4 — • ' t "The parties agree that the new wages be paid from the 15th July, 1920, and not from the moment of normal resumption of work, all compensation for the period following the occupation of thé 'factories being excluded. "For thé occupied establishments not included in the agreement 1 compensation Will be'admitted in principle, and will be fixed at a sum between the damage caused and the amount of the production, eventually ascertained, under reserve of an equitable arrangement between the parties in each particular case. The sums to be paid will be distributed proportionately among those who were present in the works on the day preceding the occupation. "The manufacturers' delegation insists, in virtue of the mandate which it has expressly received, that it cannot accept the Premier's proposal concerning the conditions of re-instatement of the workers, and declares that this proposal will be adopted as having been imposed by the Government, on which is laid the entire responsibility in this matter. Rome, September 19th, 1920. Olivetti."D'Aragona," The parties also agreed to meet at Milan in order to settle the details of the agreement and to determine the methods of applying it. Text of the Decree on Trade Union Control. On September 20th, the Stefani News Agency published the text cf the Decree establishing Trade Union control in industry. This text differs very little, except in the last paragraph on the question of discipline, from tljat published by the Stampa :— "Whereas the General Confederation cf Labour affirms that it intends to modify the present relations between employers and employees in order that the latter may, through their Trade Unions, be free to control the industries with the object of improving these relations and increasing production which is essential for the economic reconstruction of the country ; "Whereas the General Confederation of Industry is not opposed to the experiment of control of industries by categories With the above-named object ; "The President of the Council registers this agreement and decrees the formation cf a Joint Commission composed of six members nominated by the General Confederation of 1 The chemical, textile and other works occupbd during the acute phase of the conflict. Industry and six members representing the General Confederation of Labour, each side to include two technicians or non-manual employees. The Commission is entrusted with the drafting of the laws to be proposed to the Government, organising industry on a basis of the workers' intervention in technical, financial and administrative control. The Commission is also entrusted with the drawing up of measures for the solution of questions which may arise in the matter of employment and dismissal of the workers \ "The workers will return to their posts. However, if the presence in the same works of certain workers and chiefs becomes incompatible, a Commission composed of two members chosen by the manufacturers and two nominated by the workers will decide on the measures to be taken." RATIFICATION OF THE R O M E AGREEMENT B Y T H E N A T I O N A L CONGRESS O F T H E F. I. O. The Workers' Referendum on the Action of the M. Leaders. The struggle between the different tendencies which had begun during the plenary sittings of the National Council of the General Confederation of Labour (10th and 11th September), and which ended by the passing of a resolution limiting the agitation of the metal workers to purely Trade Union attestions, seemed 1 According to information received, the Joint Commission will be presided over not by the Minister of Industry or the Minister of Labour, as certain newspapers had announced, but by a manufacturer and a worker alternately from1 amongst the members of the Commission itself. Both Confederations were absolutely in agreement in excluding from the Chairmanship persons outside the Commission, even though they be Ministers. The Bill will be drafted according to the proposals of the Joint Commission, the different Parliamentary groups and the different organisations. The Supreme Labour Council, which is to meet on the 26th October, will also be consulted. The "Battaglie Sindacali", the organ of the General Confederation of Labour, published on the 9th October, the following draft rule for the Workers' Control Commissions in undertakings :— ll The Workers, Council shall control the purchase of raw material, supervise the sale of the finished article, supervise the scales of wages, control discharges, decide what type of work is suitable to each worker, settle conditions of employment in the works, control the general expenditure of the undertaking with the special object of limiting the expenses of the present directors and proprietors who are considered as sharers in the profits, supervise hygienic conditions, insist that the [proprietors supply tools, avert artificial industrial crises, /prohibit dumping." — 6 — to augur a difficulty as to the acceptance and execution of the agreement concluded at Rome between the employers' and workers' organisations under the auspices of the Government. The official Socialist Party, after having published in the Avanti, its official organ, the Decree on the establishment of Trade Union control in industry and commented on it on the whole favourably, forthwith began a campaign in the same paper against the action of the leaders of the General Confederation of Labour and the F. I. O. M., and called upon the workers to remain in the occupied factories pending further orders. Mereover, the extremists, particu larly the organs of the Unione Sindacale Italiana, were very violent in their criticism of the concessions obtained ; the Decree on Trade union control was qualified as "dupery", and "treason" was the term applied to the work of Messrs. Buozzi and D'Aragona. The workers were called upon to rise against their leaders, and refuse to ratify the Rome agreement. On September 21st, the Chamber of Labour of Turin published a proclamation saying that "the works should not be avacuated without an order from the Committee of the Chamber of Labour". Amidst these manifestations the Executive Committee of the F. I. O. M. called a meeting at Milan of the delegates of all the national sections of the organisation in order to ask them to ratify the agreement. This National Congress met on September 22nd. Buozzi, the General Secretary of the F. I. O. M., gave a detailed account of the Rome negotiations and proposed a resolution to the assembly emphasising the points gained, approving the action of the Propaganda Committee and deciding to have a referendum of the workers on the resolution itself \ A contrary resolution was put forward by the anarchists Ferrerò and Garino. This resolution, whilst recognising the fact that the agreement represented a remarkable victory for Trade Union 1 The following is the text of Buozzi's resolution :— "The F. I. 0. M. Congress, having heard the Report of the Propaganda Committee on the result of the discussions with the manufacturers' delegates at Rome on the different points on which no agreement had resulted from direct negotiations, expresses its satisfaction at having gained Trade Union control over works and over 'man-<power, the proletariat considering the exercise of this control to be the most efficacious and the most rapid means of defending its rights and its labour in the works, and of taking into its hands all the elements of production which will help to increase its technical crpabilities and to hasten and render more radical the acti'on of the Trade Unions in their endeavours to suppress the wage system. It emphasises the fact that the insistence of the workers' delegation succeeded in securing that the workers, the technicians, and non-manual employees who took part in the movement will not be exposed to reprisals on the part of employers. It engages the employers and the Government not to commit any acts of victimisation against those who took a.n active part in the movement, and it engages the masses to defend by every means the manual and non-manual workers, and the supervisory staff who may be threatened with punish- workers, declared that the signatories had "submitted to" the agreement ; the control as established by the Decree should be considered as an anti-revolutionary solution of the conflict, whilst, had the General Confederation of Labour wished, the movement could have terminated in an attempt at revolution which might have ensured the definite possession of the factories and perhaps led to the realisation of communism. The resolution added that the agreement could not be ratified until the manufacturers had consented to pay for the days of occupation instead of considering the retrospective effect of the new rales of wages as compensation for them. Other resolutions were proposed but subsequently withdrawn, and a vote was taken on the resolutions of Buozzi and FerreroGarino. The result was as follows :— For Buozzi's resolution (for the ratification of the agreement) . 148,740 For the resolution of Ferrerò and Garino (against ratification) 42,140 Abstentions 5,059 Instructions were immediately given by the Propaganda Committee to proceed with the referendum on the following day. Buozzi and his colleagues of the Committee wished thus to demonstrate — in opposition to the secessionist propagada of the maximalist and anarchist elements — that they represented the large majority of the organised workers. The vote began on Septembei 24th, and was carried out in the factories which were still occupied by the workers. The ballot papers were checked by the 'representatives of the works committees. On September 26lh the National Propaganda Committee of the F. I. O. M. published the results of the referendum in the different parts of Italy. Only the results of some small centres whose ment. It notes that on the whole the economic concessions obtained are satisfactory, and by obtaining holidays and dismissal allowances for the workers, they consecrate the normal rights of the working classes which up to the present had neither been admitted nor made effective. It draws the attention of the workers to the fact that the principle of payment for the days of occupation was recognised by the concession of fifteen days of retrospective pay besides those obtained by the negotiations which preceded those of Rome. And whilst recognising that in many places the productive value of the days of occupation exceeds that of the retrospective period conceded, it approves the action of the Propaganda Committee and confirms the mandate given to it to carry on the negotiations for the complete settlement, insisting that the difference between the actual amount of output and the retro-activity conceded if not paid to the workers, should be accorded to the victims of the movement and to those of the earthquake in Tuscany. It decides to submit the present resolution to a ballot of all the workers, and requests the workers to remain at their posts until the organisation gives the order for evacuation ». .— 8 votes would have very little influence on the general result are not contained in this list. The final vole was clearly in favour of Buozzi's resolution and the ratification of the Rome agreement. Region Piedmont Lombardy Liguria Venice Tuscany Emilia Umbria Latium Campagna Sicily Total No. of Sections 39 41 15 8 13 8 2 1 5 1 133 For BUOZZI's resolution 30,839 57,272 20,066 2,202 5,871 3,214 2,203 373 x5,864 — 127,904 Against BUOZZI's resolution 19,645 10,633 3,598 601 5,719 1,149 1,149 902 66 2,000 44,531 Abstentions 940 1,061 418 2 23 3 3 19 — — 3,006 It is worthy of note that a large number of the votes against the Buozzi resolution are from the small establishments employing less than 75 workers, to whom the Rome agreement had accorded a wage increase of 3,20 lire instead of the 4 lire per day which had been granted to the workers of the large factories. There was, therefore, no question of a maximalist manifestation, but rather of the expression of discontent from the economic point of view. Firm opposition on the part of the Socialist Party might have defeated the conciliatory view by rallying to the contrary opinion the Maximalists, the Trade Union anarchists and the many workers who were displeased at not having obtained payment for the days of occupation. The leaders of the Socialist Party, however, did not think it advisable to take the responsibility for a split, a fact which rendered easier the victory of the F. I. O. M. In view of the result of the referendum, the Propaganda Committee gave orders that the works be evacuated on September 27th and that normal work should begin not later than Monday, October 4th. E N D OF T H E D I S P U T E . — A T T E M P T S OF T H E EXTREMISTS. — EVACUATION OF THE FACTORIES AND T H E RESUMPTION OF WORK. The referendum of the F. I. O. M. marked the end of the dispute. On September 27th, in execution of the orders given by the Propaganda Committee, the workers began the evacuation of the factories in Rome, Venice, Genoa, and Brescia, and the red and black flags were removed. According to the instructions received from their organisations, the restitution of the factories to the owners was effected through the Shop Committees. The employers, - 9 — on receiving them, were to draw the attention of the Committees to the damage caused, compensation for which, according to the agreement, was to be deducted from the payment made for production during the days of occupation. Here and there conflicts arose between the manufacturers and the workers, and serious incidents took place at Pestri, and in Pirelli's factories in Milan, between the workers and the non-manual employees who had left their posts during the days of occupation. As a result of these incidents Pirelli's works were occupied by troops. The non-manual employees refused to resume work unless their personal safety was guaranteed. A meeting to discuss this subject took place in Milan on September 28th between the leaders of the F . I. O. M. and those of the Lombard Federation of non-manual Employees in Private Industries (Federazione Lombarda degli Impiegati dell' Industria privata). Both parties were in agreement as to the necessity for, returning as soon as possible to the former cordial relations and resuming work together in the common interest. A circular of the F . I. 0 . M. called upon the workers to abstain from acts of violence against the non-manual employees. "During the days of occupation," said this circular, "workers had the opportunity of seeing that the closest possible co-operation is necessary with the supervisory and administrative grades. In spite of dissensions in the past, in spite of the desertions which took place during the present movement, the workers, instead of widening the breach between the different categories, should try to help in the work of persuasion which the organisation is developing. Wherever an alliance has been formed between the workers, the non-manual employees and the supervisory staff, there the Trade Union organisation can exercise its activities with the greatest success. Let us not forget that the success of our movement depends largely on the rallying to our cause of the technical staff." Nevertheless, in spite of endeavours of the F. I. O. M., the extremists at Turin tried by every means to impose their will in the factories ; even during the referendum sanguinary conflicts took place in the course of which 4 soldiers of the Royal Guard and a workman were killed. On September 24th the factories of Narni and Senigallia and the textile factories of Biella, were evacuated without incident ; on the 26th evacuations began in Rome, Venice, Genoa, Brescia and Leghorn. On the 27th, 28th and 29th it spread to the large factories of Milan, Tarni, and Savona. On the 2nd October the factories of Turin and Sestri Ponente -— the two centres of the extremist resistance — were evacuated. At Verona difficult negotiations on the question of payment for production during the days of occupation lasted until October 5th. An agreement was finally signed between the manufacturers and the workers. — 10 — Serious incidents took place again at Turin, Milan, Brescia, Naples and Spezia, but the orders of the F . I. O. M. were being put into execution everywhere, and by October 7 th normal work had begun throughout the country. In some places, at Florence, for example, manufacturers seeing that the output of nearly all the workers had been satisfactory during the days of occupation, decided to pay for the work of those days according to the amount of work done. Though unfortunate incidents took place during the final phase of the struggle, such as acts of violence against the non-manual employees who had not joined the movement and attempted rebellion on the part of certain groups, there were other manifestations of a contrary nature. Nearly everywhere the owners found the factories in excellent condition, and the reconciliation of the workers with the manufacturers was in some places quite cordial. T E X T OF T H E FINAL AGREEMENT SIGNED I N M I L A N . The Commission entrusted with the settlement of the details of the Rome agreement and the determination of the methods of applying it began its work in Milan on September 27th ; on the 1st October the principal clauses were signed. This text follows in its main lines the plan indicated in the F . I. O. M. memorandum. "The following agreement is hereby made between the representatives of the National Federation of the Metal and Engineering Industry and those of the Italian Federation of Metal Workers in answer to the demands presented by the latter in its memorial of June 18th, 1920 :—1. Classification of Workers. The workers in the engineering and cognate industries shall be divided into four groups as follows :— (1) Women of every age, boys and apprentices up to 18 years ; (2) Unskilled labour of every age, and semi-skilled labour up to 20 years. (3) Skilled labour. (4) Highly skilled labour. 2. Revision of Wages. In all the provinces of Italy, with the exception of Julian Venice, the present total wage shall be increased as follows :— — 11 — 4 lire per day for males over 20 years ; 80 % (3,20 lire) for males between 20 and 18 years of age, and to women over 20 years ; 60 % (2,40 lire) to males between 18-15 years and to women under 20 years ; 30 % (1,20 lire) to males below 15 years. In the small scale industries of all regions (employing less than 75 workers), the increases shall be equal to 80 % of the above rates. The above total increases shall be distributed among the different component parts of the wage. Deduction shall be made in the case of the increases granted in certain vindertakings after the 15th May, 1920. If these increases are variable, the maximum fixed for each category shall be taken into account. These rates of inorease will take effect from the 15th July, 1920. 3. Work on bonus systems. If is possible and seems desirable a scheme of profit sharing shall be established for work on bonus systems so that the highly skilled workers may follow the variations in the earnings of workers on piece-rates. 4. Minimum Wage. The total minima shall be increased by districts on a basis of the quota of the general increase granted. The regional organisations shall see to the repartition of the total earnings mentioned in Article 2. 5. Bonus for increased cost of living. It is agreed that for all districts of Italy a part of the wage be regarded as a bonus for the increased cost of living, which shall be liable 'lo variations to be established by agreement according to a percentage corresponding to the cost of living. In the case of a decrease in the cost of living, the principle is admitted that the bonus for the cost of living may be diminished by 75 % of the increase. For the variations the article of the Rome agreement concerning Lombardy (September 27 th, 1919) shall be followed, with this difference, that the increases shall be 7 centimes for every increase of two points and that modifications shall take place every two months. On November 1st the alteration shall be made only in case of increase. The new formula which the organisations are at present considering should come into force for the 1st January. — 12 — 6. Overtime and Nightwork. The percentages of increase for overtime and nightwork shall be raised as follows :— (a) For workers in the engineering and shipbuilding industries, etc. : 30 % of the wage payable per hour for the first two hours after the eight hours of the normal day ; 50 % for the next three hours ; 100 % for the subsequent hours ; 20 % for nightwork ; 60 % for holidays. (b) For workers in the iron ore industry — Category of workers in continuous processes : 25 % for working days ; 40 % for holidays. For the other categories, the percentages established for mechanics shall be applied. 7. Holidays. Workers who have served in an undertaking for at least one year will have the right to 6 days (48 hours) holiday on full pay. (8) Allowance for Dismissal. Workers not having a seniority of three years in an undertaking will not have the right to an allowance in case of dismissal. Having completed three years, the worker dismissed for non-disciplinary reasons, will have the right, besides regular notice, to two days (16 hours) of normal pay for each year's service completed. The present staff will be considered as having a maximum seniority of 10 years. Service after the 10th October, 1920, will be calculated over and above this. No allowance is due to a worker who resigns of his own free will. 9. Work executed during the period of obstructionism. Whereas during the period of obstructionism, workers doing piece work would only have had the right to a sum corresponding to the work done, they are granted as a compromise the nominal wage and the bonus for the cost of living for the days of obstructionism, considering them as workers on the bonus system who have the nominal wage and the allowance for the cost of living without any supplement. For other work not begun and finished during this period, the workers will be paid in the usual way. 10. Responsibility 13 — for material taken away. It is decided that the workers' organisation binds' itself to have everything which was taken away either given back or paid for. In the case of non-restitution or nonpayment, the undertaking is authorised to deduct the cost of the article taken away from the sums to be paid. Special cases of non-justified appropriation will be submitted to the organisation ; intimations to the Shop Committee shall be annulled. 11. Regulations. The old regulations remain in force until the Joint Commission shall have settled the new disciplinary relations. 12. Transfer of workers. The local organisations will come to an agreement on the allowances or the supplements to be given according to the distance and the existing communications, to workers obliged to work outside or far from the establishments. Read and signed at Milan, 1st October, 1920. Bruno BUOZZI. Frederic JARACH. LUISIGNOLI, Prefect. D I S C U S S I O N IN THE S E N A T E ON THE ACTION OF THE GOVERNMENT. A T T I T U D E OF T H E CATHOLIC PARTY. At the end of September, the policy of thé Government in the metal workers' dispute was discussed in the Senate. During the Session of the 25th, Mr. Dante Ferraris, former Minister of Industry, made a speech against the Premier, Mr. Giolitti, the Minister of Labour, Mr Labriola, and the Minister cf Justice, Mr. Fera. He accused these three Ministers of having, during the first phase of the agitation, taken up an attitude which encouraged the workers to have recourse to methods which were without precedent and of having afterw&rds allowed the workers to commit the worst possible acts of violence and of having taken no measures to protect the rights of property and individual liberty and safety. Manufacturers, for example, were obliged to fire on the workers in self-defence after having requested in vain the help of the forces of the Crown. Mr. Fera declared that 14 cases were before the Courts at Milan involving the authors of crimes committed during the agitation. Other cases were before the Courts of Naples, — 14 — Genoa and Turin. Far from counselling weakness, he had never ceased to demand the appâcation of the law. Messrs. Giolitti and Labriola declared that the manufactures were responsible for the serious turn of events, as they had persisted in declaring a lockout against the advice of the Government. During the Session of the 26th, the Premier made an important speech : "The problems which have been raised," he said, "during this grave discussion are so serious that they concern the entire action of the Government. It is not merely a matter of internal politics but of the future of the country. In order to have a correct idea of the state of things and of what should be done, I think it is useful to recall the events which preceded this period. We are confronted with a real social transformation. It is useless to hide it, and all those connected with the Government should remember this truth. The advent of a i o u r t h estate began to appear during the latter part of the last century and the attempts made then to check it did not have very happy consequences. These are dangerous movements, but they are regular and cannot be stopped. In 1901-02, there was a great movement during the Government of Mr. Zanardelli, when I was Minister of the Interior. After these movements, we were obliged to recognise the right to strike. "At that period, the working classes of the towns, and still more those of the country districts, had a wage which was absolutely insufficient. If the right to strike had been refused, there would have been serious disturbance. There were w7ages of one franc per day, and you may remember that there were strikes in order to obtain an increase of 25 centimes. Even in 1875, Senator Jacini, in his report on the Agrarian Enquiry, showed that in the province of Lombardy itself, wages were absolutely insufficient to satisfy the most elementary needs. Twenty years later wages were even less (applause). The right to strike is the recognition of the most elementary liberty of man ; since it has been recognised, wages have more than trebled and agriculture has progressed. The war has had economic, social and financial consequences of the greatest importance. The trench was the most effective propaganda school ; all parties made promises impossible to fulfil, but the class to whom they were made regarded them as rights. Moreover, the habit of serious and disciplined work is lost, and that not only in Italy. During the war, special industries were created which had only one customer, the Slate, and the manufacturers consented to raise wages because they doubled these increases in the prices which they received from the State. Since the war the worker has also seen the sad spectacle of ill-gotten wealth obtained during the war blazoned — 15 — forth with impudence (loud applause). The country thought that the war once finished, all these effects would cease immediately and that life would resume its previous tenour. This was a mistake. "I do not agree with Senator Ferraris with regard to the intervention of the Government in simple disputes between capital and labour ; in such cases the Government should remain neutral — a vigilant neutrality — unless its intervention is needed for the purpose of conciliation. If every time the working classes asked for an increase the Government intervened to oblige the manufacturers to give it, industry would, become impossible. I advised the manufacturers against declaring a lock-out and I told them that they could not count upon the forces of the Crown. The Government, therefore, did not break its promises. It has been said that the Government should have prevented occupation of the factories, or should have had them evacuated. In order to prevent the occupation, admitting that we could have arrived in time, it would have been necessary to put a garrison in each of the 600 establishments ; all the forces at the disposal of the Government would have been necessary- The workers outside the factories would have been left without supervision and public safety would have been neglected. In the establishments, the forces of the Crown ran the risk of being surrounded. In order to have the factories evacuated, it would have been necessary to fight and run the risk of very serious consequences at a time when the General Confederation of Labour gave the assurance that the movement was not a political one but an economic one. "I remember that the present occupation of the factories had a precedent last year when Mazzoni's factories were occupied. Mr. Dante Ferraris was then a Minister ; he recognised the occupation and sent a Government representative to manage the factories. Could I have followed such an example ? Would I have done my duty such as Mr. Ferraris conceives it ? It is certain that the dangerous example which he gave had an influence on the recent occupation. When such a vast movement is in question, it is impossible to apply ordinary rules, the worker who occupies premises from which the owner wishes to expel him, commits an offence. To employ force against the worker would be to punish this offence with death. "I considered it my duty to intervene between manufacturers and workers, and the Senate knows that an agreement has been concluded whose essential idea is to transform the organisation of industry in such a way that the worker can know exactly the situation of the factory which, up to the present, he had no means of knowing. When the worker will have knowledge of this situation, he will be — l o able to form an idea as to the way in which his demands are treated. The Decree prejudges nothing. The Joint Commission must present proposals which will serve for the preparation of a Bill organising industries on the basis of intervention of the workers in the technical, financial and administrative control of enterprises. "The same Commission will propose standards for the regulations for the employment and dismissal of workers. Thus the workman will be in the position of an * associate, and not an adversary of the manufacturer. "The question of workers' control has not arisen to-day for the first time. The principle was explicitly approved by the congress of employers' representatives on the 5th March, 1915. "The present Ministry came before Parliament on the 26th June with eight very important Bills. It only obtained a vote of confidence in July. How could it have completed a profound study in the brief lapse of time at its disposal, when Senator Ferraris who, since the 5th May, 1919, had had more than a year at his disposal, had not succeeded. I remind you, moreover, that in 1919, in the Chamber of Deputies, the Deputy Reina proposed an amendment to the Address to the Crown which was approved by a large majority. This amendment expressed the desire for an energetic policy in order to prevent the abandoning of the land, to assure the workers that Parliament would investigate means of expropriating abandoned or ill-cultivaled land to the advantage of productive cooperation and that it Avould study the question of workers' control in industry. It is not right that Mr. Ferraris should find it strange that they have not solved the problem in 15 days, when he himself did nothing during the year which he had at his disposal to prevent the events which have taken place during the last few months. Day by day the factories are being evacuated, and I hope that regular work will gradually be resumed. "The prefects, the officials and the forces* of the Crown have done their duty according to the instructions which they have received. I thank Senator Fraseara for his kind words with reference to the agents who died in the execution of their duty. Their memory should be just as sacred to us as that of the soldiers who died for their country. The Government is quite disposed to listen to advice from whatever party it may come, and it will try to render as perfect as possible the Bill which will be presented to Parliament. Both the Senate and the Chamber have now all the necessary elements for the accomplishment of a great work. We must be convinced, all of us, that the future of our country depends principally on the solution of the great social question." (Applause.) — 17 — • Whilst Mr. Giolitti was thus explaining his line of conduct before the Senate, the Catholic party (Partía populare italiana), seeing itself excluded from the Joint Commission which was entrusted with drawing up a scheme of trade union control, manifested most lively discontent with the Premier. The leaders of the party went so far as to threaten that the Catholic Ministers would leave the Government. This would have entailed the fall of the Cabinet. The political secretary of the party, Don Sturzo, and deputy Bronchi, Secretary-general of the Catholic Confederation of Workers (Confederazione italiana dei Lavoratori), had had on September 24th a long interview with the President of the Council. The Catholic representatives had called Mr. Giolitti's attention to the serious impression produced by the recent decree, both in party circles and in the Catholic trade union organisations. They declared that it was their opinion that a legislative solution could only have been found by giving a very wide basis to the joint commission so that all classes and all the important parties should be represented on it. The Premier declared that the Joint Commission was only entrusted with the approving of proposals which would be discussed by the Chamber, and that for the final preparation of the law he wished also to have the help of all the political and trade union forces of the country. The political secretary of the Catholic party replied that the Catholic parliamentary group would, nevertheless, present to the Chamber a counter proposal of law for the institution of trade union control in industry at the same lime as that which would be drafted by the Joint Commission nominated by the Government, as the Catholic party could not accept solutions adopted without the participation of its representatives. T H E ATTITUDE O F T H E P R E S S . During the months of August and September the political and social life of Italy was almost entirely dominated by the agitation of the metal workers which represented the greatest conflict between capital and labour which Italy has ever known. Even the period 1901-03, during which the right to organise and to strike was recognised, appears less significant and less revolutionary than the present movement which almost transformed at one moment, in the most radical way, the entire political life of the country, and which elicited the recognition on the part of the State of the necessity for democratising the means of production and of exchange and of laying the foundations for a "novum jus" on the relations between capital and labour. During the first days of the struggle, however, the Italian Press did not seem to realise sufficiently the importance and the probable repercussion of the movement. It only began to be — 18 — seriously alarmed on September 10th, when the National Council of the General Confederation of Labour had to decide between the extremist tendency, which aimed at a dictatorship of the proletariat, and the moderate tendency, which permitted a peaceful solution of the dispute. All the newspapers, with the exception of the semi-official press, were unanimous in criticising the action of Mr. Labriola and deploring the absence from the capital of Mr. Giolitli. Later on, the bourgeois press was divided into two groups, composed of nationalist or conservative newspapers such as the Idea Nazionale, the Giornale d'Italia, the Corriere della Sera which definitely supported the manufacturers and continued to demand State action, if necessary very energetic, in order to drive the workers from the factories and restore the latter to their lawful owners. After the publication of the Decree on trade union control, the Corriere della Sera expressed the fear that this control might have serious consequences and severely criticised the Government which, after having shown the greatest weakness when it could have mastered the agitation, had afterwards obliged the manufacturers to accept very onerous conditions, thus creating for the masses the most dangerous of precedents. In an article by Senator Einaudi, the well-known economist, the newspaper describes the action it would have approved on the part of the Government. According to him, the State, as representing the general interest, should have nominated an arbitrator who was not a political personage but a magistrate of recognised probity who should be asked to study the question as to who was right, in other words, whether the employers could or could not give the increased wages. As to the reception of the Rome agreement, the great Milanese drily said that even among the workers this agreement has displeased for reasons of tactics or political orientation the Maximalists, trade unionists and the anarchists. Favouring the same arguments, the Messagero of Rome wrote : "Whilst a part of the proletarian and socialist world is celebrating the unhoped-for success of the battle waged by the metal workers, the extremists, trade unionists and anarchists who are trying to have the upper hand of socialists not yet converted to Bolshevism and of the "labourites" of the General Confederation of Labour, not only declare themselves to be without enthusiasm for the Rome agreement, but go so far as to accuse D'Aragona, Buozzi, Colombino, etc., of treason, and whilst the General Confederation of Labour with the adhesion of the Executive of the socialist party has ordered the evacuation of the occupied factories according to the new agreement, the trade unionists at Sestri, Turin and elsewhere incite the masses to disobedience to the orders of the great workers' organisations and ask them to remain in the factories." The same newspaper is pre-occupied with the lack of discipline which the creation of Shop Committees may create in the factories. It says :— 19 "The creation of Shop Committees had already, in spite of their limited powers, shaken the principles of discipline. The new Committees threaten to break down definitely all order, all method, all sense of discipline. If we do not wish to see the factories transformed into perpetual meetings, we must consent to the eliminatian of all disturbing elements in order that those who have the responsibility for the management of the undertaking should not be at the mercy of anarchist minorities." The other group, composed of Government and radical newspapers (Tempo, Tribuna, Stampa, Secolo), saw in workers' control an inevitable concession, a letter of credit whose payment had fallen due and which Mr. Giolitti was right in paying. The Secolo, however, did not accept the whole line of action of the President of the Council as he outlined it in the Senate : "Mr. Giolitti has spoken of the industrial world which he does not know, which he does not trust and in which he sees still the old legend of men swimming in cross-currents of exchange and banking, but whose effort of organisation and production he does not see; whose illegal gains he fears, but whose obscur heroism he does not see. Historically, the President of the Council has based the justification of his action and the justice of his views on the strength of the workers' movement and he has come out of the difficult examination of contingencies very easily by pronouncing simply the impossibility of applying ordinary rules to such a vast movement. Mr. Giolitti attributes to himself the merit of having formerly reclaimed the uncultivated land of labour rights by recognising the right io strike, but it is also true that he has supervised the exercise of this right and has not hesitated, when he judged it opportune, to break up by reactionary methods vast agrarian movements which threatened the harvest. With still greater reason the crisis which threatens the country to-day demands intelligent and vigilant action on the part of the Government. The authority of the State must be restored, the moral forces of the country must be reanimated and social progress within legitimate limits should be accelerated. In matters of Government, methods of renunciation produce the same disastrous effects as reactionary methods. A just equilibrium must be found if we wish to prevent anarchy from swamping civilisation." The Catholic newspaper, the Corriere d'Italia, would have been satisfied if the white trade unions had been admitted to the Joint Commission. Certain organs, led by the nationalist jour-. nal, the Idea Nazionale, spread the rumour that the large banks had fomented the troubles. Mr. Crespi, president of the Banca Commerciale Italiana, in an interview accorded to the Giornale d'Italia on the 21st September, protested against this insinuation \ The Giornale d'Italia and the Resto del Carlino, two agrarian newspapers not controlled by banking or industrial enterprises, examined the scheme of workers' control from the point of view of general interest and voiced the fear that the collaboration of the employers and the workers in industry may have as. its only consequence an increased protectionism of which the expenses will be paid by agriculture. The Popolo d'Italia, national-socialist organ, supports the workers. It considers that their demands are just, but it disapproves of the direct action which they employ. The Avanti? organ of the Executive of the socialist party, naturally supportea the movement, but it avoided, especially after the vote of the National Congress of the General Confederation of Labour, giving a definite opinion as between the extremists and the moderates and contented itself with relating events. But its attitude became very peculiar and contradictory after the publication of the Decree on trade union control. This newspaper, which publishes three editions (in Rome, Milan and Turin) recognised in the Turin edition that the manufacturers had been completely beaten, whilst the Milan edition claimed that the control granted had no value, called it an "act of collaboration" and criticised the conduct of the F . I. O. M. and of the General Confederation of Labour. This difference of view soon gave rise to a very bitter dispute between the two editions. The director of the newspaper, Mr. Serrati powerless to control the dispute, sent in his resignation. 1 These rumours arose from the conflict which always existed between the Banca Commerciate Italiana which is supported by Senator Conti, President of the General Confederation of Industry, and the Banca Italiana di Sconto, which is in the hands of the Ansaldo Manufacturers' group and which owns newspapers like the Messagero and the Idea Nazionale. These journals made allusions to the alleged rôle which the Banca Commerciale had played during the conflict. They gave it to be understood that it had supported and even financed the workers. Mr. Crespi was accused of having made a pact with the workers on the ground that he had not ceased to advocate conciliation and even surrender, whilst Mr. Rotigliano, representative of the manufacturers wished resistance. In a communiqué published in the newspapers, Mr. Crespi declared definitely that it was the duty of the Banca Commerciale to be interested in the conflict which might have the most serious consequences for finance. The delegates of the other banks had no other attitude, but it is false that the delegate of the Banca Commerciale could have even thought of financing the enemies of public order, the adversaries of Italian industry, when the Board of Directors of this Bank is composed of the largest manufacturers. — 21 — TOE OPINION OF MESSRS. TURATI, BALDESI AND ElNAUDI. It is still very difficult to distinguish in the comments of the press on trade union control the technical side of the question from the purely political side. It could even be said that, with a few exceptions, the analysis of the political consequences of this innovation in the relations between capital and labour is that which dominates the discussions. It is, nevertheless, easy to foresee that the discussions will be conducted on the technical methods of applying control as soon as the different legislative proposals are known. The following is a summary of the opinion of certain prominent personalities. The Deputy Turati writes in the Critica Sociale of September 24th : - "Workers' control represents a revolution. The greatT ness of this revolution consists in its ability to last and to develop. It will allow the worker to participate in the administration of a factory so that he will be able to learn its mechanism and work with more energy and vigour, and finally it will contribute to the moral elevation of the worker. By what road shall we arrive at it ? There is no doubt that [he trade unions and the workers' committees will be the starting point. The committee and the trade unioi? will nominate those who are entrusted with the control, but there we have a serious question. Should the action of control cerne from outside and against the Boards of Directors or should it be exercised in the undertaking itself alongside the Boards of Directors ? W e must bring together", says Mr. Turati, "the representatives òf capital and of thé undertaking, the representatives of manual laboirr and of the engineers and a representative of the State. The latter, instead of levying taxes, should thus participate in the profits of the undertaking. The control which comes from outside not only would not be efficacious but also would not allow the creation of a workers' élite in view of future socialisation. The control which comes from outside would only hinder the administration by annoying it with protests and opposition. We must also consider that workers' control will not be confined to factories. The multiplicity of business which connects the factories with banks, the State, the national .and international markets, will force the worker who is entrusted with control to examine what has happened outside his undertaking. We can see here already a system of local or national councils of industry and of co-operatives which will dominate the numerous industries whose defenders they will be. But ' there is yet another question", concludes Mr. Turali, "is it possible that this mixture of representation admitted to the Governing Body can allow the necessary rapidity in the — 22 — conduct of business ? Is it possible that trade secrets will be kept ? It would seem preferable to place the workers' representatives among the "syndics". It is true that the present "syndics" exercise practically no function, but it would be quite different with workers' "syndics". The union of these "syndics" of labour might constitute the nucleus of a permanent Industrial Commission." Mr. Baldesi, one of the leaders of the General Confederation of Labour and prospective member of the Joint Commission entrusted with the preparation of the Bill on trade union control, considers the victory as a stage on the way to a social transformation, which he considers realisable by degrees. He believes. that under the new regime, production will increase, especially if the manufacturers do not try to nullify the work of control. He considers that workers' control should be quite distinct from profit-sharing. The worker should simply control the undertaking first of all in order to learn how it functions, and to take possession of it later. Senator Einaudi, expressing ideas on this matter which are identical with those of the majority of the manufacturers, say3 that no experiment can succeed unless the opponents try to find at least the advantages of the point around which the dispute turns. At present the state of mind favourable to a loyal experiment of cc-operation and control is beginning to exist only on the side of the employers 1 . It is right to note that we have here a state of mind imposed by necessity. But nothing of the kind is to be found on the other side. The workers desire complete victory, and control is only a means of obtaining the whole. If this state of mind continues, it will bring both parties ta inevitable ruin. It is a mistake to think that the present struggle is one between capital and labour. It is between man and man, between officials and subordinates, between organiser and organised. In Italy there are only a few dozen men capable of directing large undertakings of world importance. It is perfectly absurd to think that these people can be compelled to give their abilities 1 Einaudi alludes to the declarations of Mr. Agnelli, managing director of the F. I A. T. Motor Works, who in an interviewostated that since therecent events his colleagues and he had come to the conclusion that it was impossible for them to continue working. In the control of the factories, he stated, the workers 'demand a preponderant part. Industry can, owing io revolutionary propaganda, no longer be directed according to the rules of a capitalist regime. In. the factories we no longer have faithful collaborators, but enemies. He thinks that if the workers succeed in working exclusively for the interests of the proletariat, the F. I. A. T. can continue its progress. Rather than see this great undertaking fall miserably to the ground, he prefers that its management should pass into the hands of the workers. The ' latter should therefore compensate the shareholders, and buy back the capital —200,000,000 lire. The National Co-operative Institute could advance this sum. The Executive of the Socialist Party immediately vetoed this proposal. — 23 — for the benefit of their undertakings which have been taken over by the masses. The world is wide, and these organisers will easily be able to apply their activities elsewhere, without having to submit to the will of those whom they consider inferior to them in ability. Thus a dilemma presents itself. Either the working masses, drunk with victory, will force the present industrial lea•derSj the creators of the undertakings, to flee, in which case the conquest will have been in vain. Buildings, machinery, money, all will be nothing in the absence of the man capable of organising them and inspiring the new capital — which in five or six years will take the place of the old — with confidence. Wages must inevitably decrease and the number of workers will be less. Or, on the other hand, the masters will be convinced that the experiment of co-operative or collective enterprise should be carried cut loyally, in a spirit of mutual confidence, and then it may happen that Italy will give to the world an example of enterprise conquering the markets, and productive of well-being for all its collaborators. This very difficult experiment is worth trying ; outside it there is only the prospect of misery and ruin, but it will only give good results if it is dominated by a spirit of loyal co-operation. But it is just this collaboration desired by Mr. Einaudi that the Executive of the Socialist Party refuses. It affirms that "workers' control should be effected not in the sense of collaboration a n d participation in the management and in the profits of the enterprises, but as a conquest by the workers, which increases the revolutionary possibilities of the proletariat, and demonstrates continually the necessity for taking hold of power by direct action, in order to realise communism". The resolutions passed at Milan by the National Council of the General. Confederation of Labour on September 11th, and the result of the referendum of the F. I. O. M. would seem to point to the conclusion that this point of view is not shared by the trade union organisations adhering to the National Confederation of Labour. Thus, since the victory of the "Labourism" of the Genera] Confederation of Labour over the idea of the Parly Executive, the antagonism between the moderate elements and extremists has become very marked. The socialist party is passing through a very serious crisis, and it is probable that very soon there will be a schism in its ranks. Serrati and Bombacci have already taken par as representatives of the Italian Socialist Party in the Congress cf the Third International, and it is well known that Moscow has given distinct orders that non-communists, like Turati, Treves, Modigliani, d'Aragona, Bianchi, Baldini, Prampolini, etc., should be expelled from the party. These men, — the leaders of the Italian socialist movement, created and supported by them during long years of struggle, — met at Reggio Emilia on the 11th October, with the other "centrist" elements of the party, in order to decide on a line of action in view of the approaching National Socialist Congress which — 24.— has been convoked, at Florence, for the end of the year. The meeting al Reggio pronounced against exclusion, and in favour ,cf the. unity, of. the party, but during the sittings it was several times affirmed that if the centrists were nevertheless expelled .from the party they .would be followed by the great trade union .organisations of which they -are the leaders. It is impossible at present to foresee exactly the issue of this struggle between the different tendencies, but the National Socialist Congress of Florence will perhaps pronounce definitely on this question, which is of the utmost importance for the political .and .trade union future of the country. STUDIES AND REPORTS ALREADY I S S U E D . In cases where the English or French text of a Report has not yet been published it • will be issued at a later date. Series A. N° 1. T H E AGREEMENT GANISATIONS, English » 2. B E T W E E N T H E SPANISH W O R K E R S ' O R - issued on September 25th 1920. In and in French, T H E DISPUTE I N TRADES UNION T H E METAL INDUSTRY CONTROL OF INDUSTRY, September 25th 1920. In English » 3. ANNUAL MEETING O F T H E TRADES 1920, issued on October 4 t h 1920. in French. » 4. 5. ITALY. issued on and in French. UNION CONGRESS In English and INTERNATIONAL CONGRESS O F W O R K E R ' S I N T H E FOOD AND DRINK TRADES, issued on October 11th 1920. In English » IN and in French. T H E BRITISH GOVERNMENT AND THE MINERS' FEDERA- T I O N OF GREAT BRITAIN. CONFERENCE BETWEEN SIR ROBERT HORNE AND THE MINERS' FEDERATION, i s s u e d on October 11th 1920. » 6. In English T H E CONGRESS OF T H E LABOUR NATIONAL, issued on October and in French. AND SOCIALIST 14th 1920. In INTER- English and in French. » 7. T H E MINERS' INTERNATIONAL tober 19th 1920. » 8. T H E INTERNATIONAL LABOUR ORGANISATION. RISON, issued in October 21st 1920. In in » 9. issued on Ocand in French. CONGRESS, In English THE A French. INTERNATIONAL CONGRESS OF METAL issued on October 22nd 1920. In English French. » 10. COMPA- English and T H E BRITISH GOVERNMENT AND T H E M I N E R S ' WORKERS, and in FEDERA- TION OF THE GREAT BRITAIN. CONFERENCE BETWEEN THE GOVERNMENT AND THE TRIPLE INDUSTRIAL ALLIANCE, issued on October 26th 1920. In English only. N° 1. » 2. Series B. Co AL PRODUCTION IN T H E RUHR DISTRICT. Enquiry by t h e International Labour Office end of May 1920, issued on September 1st 1920. In English and in French. P A P E R S RELATING TO SCHEMES OF INTERNATIONAL ORGANISATION FOR T H E DISTRIBUTION O F RAW MATERIALS AND FOOD STUFFS, issued on October 5th. In English and in French. Series C. N° 1. T H E BRITISH LEGISLATION ON UNEMPLOYMENT RANCE, issued on October 26th 1920. In and in » 2. French. L ' A C T I O N GOUVERNEMENTALE DANS LA LUTTE CONTRE LE CHÔMAGE E N ITALIE, issued on October 27th In French » 3. INSU- English only. issued French. T H E BULGARIAN LAW ON COMPULSORY LABOUR, on November 4 t h 19^0. In English and in Series D. N° 1. S T A F F REGULATION ON THE FRENCH on September 4th 1920. RAILWAYS, In English and in issued French. Series H . N° 1. THE CONSUMERS' CO-OPERATIVE SOCIETIES IN .1919 (Denmark and Sweden), issued on September 8th 1920. In English and in French. » 2. S E V E N T H CONGRESS OFFICE, issued on and in French. OF THE BELGIAN CO-OPERATIVE September 25th 1920. In English