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INTERNATIONAX LABOUR OFFICE
S T U D I E S A N D REPORTS
Series A (Industrial Relations) No. 33

STUDIES
ON

INDUSTRIAL RELATIONS
I
Siemens Works — Lens Mining Company
London Traffic Combine — State Mines of thé Saar Basin
Bata Boot and Shoe Factory

GENEVA
1980
Published in the United Kingdom
For

the

INTERNATIONAL LABOUR OFFICE (LEAGUE OF NATIONS)

By P. S. KING & SON, Ltd.
Orchard House, 14 Great Smith Street, Westminster, LonJon, S.W.1

REPRODUIT PAR LES PROCEDES DOREL
-îà Rue oe Tocouevii_i_e — PABIS xvir

CONTENTS

Page
INTRODUCTION

THE SIEMENS WORKS
The Scope and Character of the Works
The Organisation and Administration of Industrial Relations . .
Wages, Hours, and General Conditions of Service
Employment Procedure
Education, Apprenticeship and Training
Accidents and Health
Insurance, Workmen's Compensation, Pensions and Other Financial
Benefits
'.
: . . . .
Welfare
Cost of Some Industrial Relations Services and Relationship to State
and Private Welfare Organisations
Conclusion

1
5
28
27
38
44
49
53
59
61

THE LENS MINING COMPANY
The Destruction of the Mines during the Hostilities from 1914 to
1918, and their Reconstruction
Present Position of the Company
Internal Organisation
The Mechanism of Industrial Relations
Working of Industrial Relations
Social Insurance
Social Institutions
*

03
64
66
69
76
85
87

APPENDICES :

I . Miners' Trade Union of the Pas-de-Calais : List of Claims
I I . Regulations concerning the Houses belonging to the Company, etc

94
9»">

OONTKXTS

THE LONDON TRAFFIC COMBINE
l'ape

The Scope and Character of the Work of the Combine
The Organisation and Administration of Industrial Relations . .
Kelations with Joint Bodies, Employers 7 Organisations, and Trade
Unions ; Staff Council Schemes
General Principles of Industrial Relations
Wages, Hours, and General Conditions of Service
Employment Procedure
Training and Education
Accident Prevention
First-Aid Facilities and Training
Insurance, Workmen's Compensation, Pensions, and Friendly Benehts
Welfare
Conclusion

101
105
108
124
125
132
134
138
140
141
147
153

THE STATE MINES OF THE SAAR BASIN
General Conditions of Production
The Staff
The Organisation of Relations with the Staff
Technical Education
Hygiene and Safety
Wages
Conclusion

. . .

155
166
174
193
197
200
212

THE BATA BOOT AND SHOE FACTORY
The Development of the Undertaking
The Organisation of the Work
Workshop Autonomy
Relations with the Staff
Recruitment
Apprenticeship
Hours of Work
Wages and Social Insurance
Safety and Industrial Hygiene
Living Conditions
Conclusion

218
220
229
234
240
242
245
248
253
256
261

INTRODUCTION

While the International Labour Office has been interested
from its establishment in various aspects of the general problem
of industrial relations, it was only in 1928 that it was requested
by the International Labour Conference to devote special attention
to that feature of the problem which is concerned with methods
of collaboration between employers and workers. On this question the Eleventh Session of the International Labour Conference
adopted the following resolution proposed by Mr. H. H. Champ,
Employers' Delegate of Canada, and seconded by the Canadian
Workers' Adviser, Mr. R. J. Talion :
Whereas it is contended that a policy of active collaboration
between employers and employed, such as exists in certain
countries, has resulted both in. an improvement in the level of
real wages and working conditions, and. also in greater and
more economical production ; and
Whereas the economies resulting from such collaboration
can also be made available for the benefit alike of the employers,
employed and the community as a whole ;
Therefore be it resolved :
That this Conference requests the Governing Body to consider
the advisability of instructing the International Labour Office
to follow with due attention the progress of the spirit of collaboration between employers and employed and to report on the
subject from time to time.
This resolution was the reflection in the international sphere
of the growing attention which had been paid to the scientific
study of industrial relations since the war. Much of the impetus
to this study was derived from North America, and as a result
of his visit to that country in the previous year the Office
published a Report by the Deputy-Director on Industrial Relations
in the United States in 1927. In all the reports, whether official
or unofficial, which have been made on American industrial
conditions—whether they have emanated from employers, workers
or independent observers—stress has invariably, been laid on the

Vili

INTRODUCTION

importance attached to the relations between employers and
workers, particularly in the works, which is now' a characteristic
feature of American industrial life. Moreover, quite apart from
American developments, the whole question of the technique of
joint consultation and collaboration between employers and
"workers has been the subject of a great deal of study and discussion in other countries also.
Conferences have been held
in Australia, Finland, Great Britain, Netherlands, New Zealand
and Sweden, to mention only some of them, sometimes under
Government auspices, sometimes on the initiative of employers'
and workers' organisations.
Another illustration of the same
tendency may be found in the creation of the
Reichswirtschaftsrat
in Germany, the Conseil national économique in France, and
the procedure now established for regular consultation between
the representative employers' and trade union organisations in
Great Britain. Indeed, the interest in the subject was so widespread that when the Governing Body discussed the Resolution
of the Conference in October 1928, it authorised the Office to
undertake a fairly comprehensive programme of study.

The aim of the series of, monographs on industrial relations,
of which this volume is the first, is not to build up any theory.
or to inculcate any doctrine. Its primary object is to ascertain
the actual development of the relations between employers and
workers, both in the works and in collective negotiation between
representative organisations. This development naturally differs
to some extent from country to country, as it must necessarily
be largely influenced by the conditions in which industry has
grown up, by national habits of thought and other factors of
a national character. But it may none the less be found that
its general problems are common to all countries and that, despite
diversities in method, the attempts to solve them proceed on
general principles which are largely similar.
The main purpose of the studies on industrial relations in
this volume is to make available some of the extraordinarily
valuable experience acquired in actual industrial operation by
these firms.
It is important both for the management and
the workers of industrial enterprises to have accurate and full
information as to the actual practice of industrial relations. It is
worth while knowing just what is taking place in a few of the

INTRODUCTION

many firms in all industrial countries in which efforts are being
made to develop satisfactory relations between management and
workpeople. The wider the range of experience covered the more
fruitful will be the results of this study.
Two explanations are perhaps necessary as to the scope and
purpose of these studies. In the first place, the aim of the
Office in making them has not been to secure international
comparability. On the contrary, its primary purpose was to
study industrial relations in the diverse conditions in which they
may develop. The undertakings selected for study were chosen
rather as illustrations than as patterns. The examples are therefore taken from a variety of industries and from different
industrial countries, without regard to the particular conceptions
on which the heads of the undertakings based the organisation
of their relations with their staffs. The countries concerned are
Czechoslovakia, France, Germany, Great Britain, and the Saar.
The industries involved are boot and shoe manufacture, coal
mining, electrical equipment, and passenger' transport. All of the
undertakings are generally recognised as successful representatives of their industries and countries, and many are of worldwide importance.
Secondly, these studies of industrial relations in particular
firms do not pretend to be complete or exhaustive. It would
have been possible, with the information placed at the disposal
of the Office, to have prepared much fuller and more detailed
accounts. Every effort has been made to condense the statements in order to include only the relevant facts necessary to
a clear description of the anatomy of industrial relations in each
firm. By entering into much greater detail, a more minute
picture of the inner working of these firms would have been
presented, but the essential outlines of the picture might have
been blurred rather than sharpened, if surrounded by a mass
of interesting but comparatively superfluous minor facts.
When the possibility of making studies of industrial relations
in European establishments was first considered by the Office,
the view was frequently expressed that it would be difficult to
obtain information, both because the management of important
industrial undertakings would be unwilling to give permission
for such studies to be made and also because of the lack of
adequate statistical and other information in the undertakings
themselves. The experience of the Office has shown conclusively

INTRODUCTION

that these views were devoid of foundation. The management
of all the firms concerned readily granted permission to the
Office to send representatives to visit them and to make reports
on their systems of industrial relations \ It is with their cordial
and active assistance that the reports in this volume have been
made. In all cases the heads of the firms concerned, or other
leading representatives of the management, gave much of their
own time to Ihe representatives of the Office and authorised the
preparation for them of special memoranda. Access was given
to all the documents and records asked for, all the questions
put by the representatives of the Office were answered fully and
clearly, they were freely allowed to get into touch with representatives of the workpeople, and, in fact, everything possible was done
to enable them to obtain the fullest acquaintance with all aspects
of the work of the undertakings having a bearing on industrial
relations.
The presentation of the results of the study in each firm
follows generally similar lines. No attempt has been made,
however, to force the experience of the firms into the mpuld
of any rigid schema. In every case the study, after a brief
introduction dealing with the general history of the firm, its size,
the number of workpeople, its capitalisation, and so forth, deals
with the organisation and administration of industrial relations
including the internal organisation of the industrial relations
department of the particular firm, a history of its relations with
the employers' organisations and trade unions, and a description
of the works councils or other bodies in operation in connection
with the firm. Full information is given with regard to the
functioning of the system of industrial relations, the procedure
with regard to employment management, training, apprenticeship
and education, health and sanitation, accident prevention, pensions, profit-sharing and co-partnership, insurance, savings plans
and various forms of welfare activities. In each case special
1
Those who visited the various undertakings on behalf of the Office were as
follows :
The Siemens Works : Mr. O. BACH, member of the staff of the Berlin Office ;
Mr. G. A. JOHNSTON, Chief of Section, Intelligence and Liaison Division ;
Mr. T. G. SPATES, Industrial Relations Counselors, Inc. — The Lens Mining
Company : Mr. P. HENRY, Chief of the Employers' Relations Service, and
Mr. T. G. SPATES. — The London Traffic Combine : Mr. G. A. JOHNSTON and
Mr. T. G. SPATES. — The Slate Mines of the Saar Basin, Mr. P. WAELBROECK,
Chief of the E litorial Section, and Mr. T. G. SPATES. — The Bata Boot and Shoe
Forlorn : Mr. P. DEVINÂT, formerly. Chief of the Employers' Relations Service.

INTRODUCTION"

reference is made to the extent to which the active collaboration
of management and workpeople is concerned in the actual organisation and functioning of these various schemes.
As has been already suggested, these firms illustrate great
diversity of practice in the matter of industrial relations. In all
cases legislation may be said to furnish a broad basis for the
practice of industrial relations, but that legislation varies considerably from country to country.
If in all cases but one
collective agreements play a large part in constituting the framework of industrial relations, the actual characteristics of that
framework differ considerably from case to case. Finally, if
in all cases the free initiative of the management of the firm
is a highly significant element in the situation, that free initiative
manifests itself in a wide variety of methods. T h e practice in
each firm 'would appear to be a progressive development arising
spontaneously from the particular conditions in the country concerned and in close connection with the history and traditions
of the firm.
There is nothing spectacular about industrial
relations as practised in any of these firms, but though they
are clearly regarded as one of the normal functions of good
management, the importance attached to them indicates the part
which they play in the general economy of industrial production.
It is not the purpose of the Office in publishing these studies
to draw conclusions from them.
Each reader will no doubt
select for himself the lessons ¡which they suggest. One general
observation is, however, likely to occur to the minds of most
readers. It is that legislation and collective agreements, however
far-reaching in their effects, leave open, for free development by
both management and workers, a wide field of constructive
activity of vital importance both to day-to-day operations within
the individual enterprise, and to the health, comfort and
efficiency with which the individual worker is enabled to
perform his work.
A second series of studies is in preparation, which will, it
is hoped, as far as possible, cover industries and countries not
touched in the first series. This second series will include,
among others, studies of industrial relations in the Fiat Motor
Works, Italy, and the Sandviken Steel Works, Sweden.
No attempt is made in any of these studies to connect experience in the particular firm with the wider background of industrial relations practice in the country as a whole. The study

XII

INTRODUCTION

of the development of industrial relations in particular countries
is intended as the subject of the second part of the programme
of industrial relations studies, which provides for the publication
of a series of monographs on the development of industrial
relations since the war in some of the principal industrial
countries.
It remains to express our sincere gratitude to the firms which
have been good enough to allow studies to be made, and to
the members of their staffs who gave their time and energy
so ungrudgingly to those who undertook the investigations on
behalf of the Office.
Lastly, the Office wishes to place on record its large debt
of gratitude to Industrial Relations Counselors, Inc., of New
York, for the -assistance which it has at all times 'received in
developing its study of industrial relations and, in particular,
for the generous financial help which made it possible to carry
through the present series of studies and to present the results
so promptly.

THE SIEMENS WORKS

T H E S C O P E AND CHARACTER OF THE

WORKS

The history of the Siemens Works is closely bound up with
the history of the electrical industry in Europe. The original
firm was founded in 1847 in Berlin by Werner Siemens and
Johann Georg Halske, for the manufacture of telegraph apparatus.
Halske remained with the firm only 20 years, but the Siemens
family has continued to guide its destinies without interruption
throughout its long history. Werner Siemens remained at the
head of the firm until 1890, when he was succeeded by his
eldest son, Wilhelm von Siemens, who managed it until his
death in 1919. In that year the youngest son of Werner Siemens,
Karl Friedrich von Siemens, undertook the direction of the
Siemens Works as Chairman of the Supervisory Boards both
of Siemens and Halske and of the Siemens-Schuckert Works,
positions he still holds to-day. For over eighty years, therefore,
the firm has been directed by two generations of the Siemens
family.
The history of the firm may be divided into six periods.
The first period, from 1847 to 1852, was a time of gradual
development from slow beginnings, culminating with an annual
turnover of only some 300,000 marks. The second period, from
1853 to 1857, saw the first international development of the
Siemens Companies through the establishment of the Russian
Telegraph Company. The third period, from 1857 to 1869, witnessed the rapid growth of the firm's activities outside Germany.
The English Cable Company was founded, a cable was laid
from Carthagena to Oran, and the Indo-European telegraph line,
linking Berlin, Moscow, Teheran and India, was laid.
The
fourth period, 1869 to 1885, was specially marked by the rapid
development of the headquarters of the Company in Berlin ;
overseas activities also developed, however, and it was in this
period that the Trans-Atlantic cable was laid. The fifth period,

INDUSTRIAL RELATIONS

1885 to 1903, saw a very rapid financial development of the
Companies, not only in Germany but abroad. New inventions
in the field of electro-technics, especially as regards high tension
work, were made or adapted, and by 1900 the annual turn-over
had reached 84 million marks. It may by noted that in 1899
the first factory was built at Siemensstadt. The sixth period
extends from 1903 to the present day. In 1903 the SiemensSchuckert Works were founded through the amalgamation of
the high-tension department of Siemens and Halske with the
Schuckert Works in Nuremberg. The development of the firm
in this period was marked by the specialisation in low-tension
work of Siemens and Halske, resulting in the rapid growth of
low-tension technique which followed the institution of the automatic and induction coil telephone, and also the progress of radio
technique ; meanwhile the Siemens-Schuckert Works made
steady advance in the production of high-tension apparatus and
in long-distance transmission, and generally promoted the rapid
adoption or extension of the use of electrical power in connection
with numerous processes. By the end of 1929 the annual turnover of the Siemens-Schuckert Works had reached 550 million
marks and that of Siemens and Halske 300 million marks.
The two firms of Siemens and Halske and the SiemensSchuckert Works are closely associated along three lines. In
the first place there is association from the point of view of
capitalisation of the Companies.
The firm of Siemens and
Halske, with a total of 107.09 million marks of share capital,
is in part a manufacturing company and in part a holding
company. The Siemens-Schuckert Works is almost entirely
a manufacturing company, with a total share capital of 120
million marks.
Of this capital, 61.90 millions are held by
Siemens and Halske, and 58.10 millions by Schuckert & Co., a
pure holding company with a share capital of 60 million marks.
The three firms of Siemens and Halske, Siemens-Schuckert and
Schuckert & Co. all have certain financial interests in a variety
of other companies, which it is not necessary here to detail.
The second line of association between Siemens and Halske
and the Siemens-Schuckert Works is of a personal character.
Dr. Karl Friedrich von Siemens is Chairman of the Supervisory
Board of both Companies. The Financial Director of both
companies is the same person, and the same persons exercise
other important functions in both Companies.

THE SIEMENS WORKS

In the third place, there is administrative connection between
the two Companies, which possess a considerable number of
common central departments. The following departments, for
example, are common to both firms : Industrial Relations Department, Economic Department, Legal Department, Building Department, Patent Department, Fire Protection Department, the
General Secretariat, etc. Further, the greater number of the
Works of both Companies are closely associated geographically
at Siemensstadt.
The Works of Siemens and Halske are at Siemensstadt, Gartenfeld, Vienna, and Milan ; those of the Siemens-Schuckert Works
are at Siemensstadt, Nuremberg, Mühlheim, Vienna, Müglitz,
Bratislava, Budapest, and Cornelia.
Branch offices of both
Companies are to be found in most of the countries of the world.
The main products of the two firms are as follows : Siemens
and Halske produces automatic and manual telephone systems
of all kinds, telegraph apparatus, audible, visible and recording
signalling systems, all kinds of electric cells and batteries, aeroengines and internal combustion engines for agricultural purposes, land, overhead and submarine cables and accessories, telephone-repeater installation, safety and time-service installations,
including all types of electric alarms, syrens, clocking-in apparatus, traffic-signalling devices and so on, electric measuring instruments of all types, such as indicating and'recording instruments
for current voltage, power-factor frequency resistance and insulation measurements for switchboard, workshop and precision use,
experimentory and laboratory equipment, -thermal-measuring
instruments of all kinds for indicating, recording and metering,
water meters for all duties in public and private water-works,
electro-chemical plants, such as electric smelting furnaces and
high-frequency furnaces for use in all foundries and in various
branches of the heavy chemical industry, ozone plant for deodorising, sterilising, purifying, and so forth.
The main products of the Siemens-Schuckert Works are the
following : Construction of complete power stations and overland
power stations, converter and transformer stations, cable and
overhead transmission lines as well as their entire equipment
with machines, apparatus and all accessories, plants and drives
for all industries, crafts and farms, electric equipments and
fittings for ships, electric railways and tramways of all descriptions for main and side lines, urban and suburban railways,

INDUSTRIAI, RELATIONS

elevated and underground railways, works railways, steam
turbines, steam accumulators and superpressure steam plants,
cable and wiring materials of all descriptions, electricity meters,
lighting plants, house-wiring, " Protos " household appliances
"and devices, electric cooking and heating apparatus, vacuuhi
cleaners, floor polishers and other domestic machines, electric
tools, electric welding machines, electrical dust precipitation
plants, industrial electric furnaces and heating plants, fans and
pumps, electric trucks and tractors, rubber goods and insulating
materials for industrial purposes, search-lights, flood-light projectors, motor-boats and ferries with electric drives, rotary tillers,
and irrigation plants.
It will be seen that the main distinction between the field
of activity of Siemens and Halske and Siemens-Schuckert is that
Siemens and Halske is mainly concerned with the manufacture
of low-tension appliances, while the Siemens-Schuckert Works
are mainly interested in the production of high-tension apparatus,
from heavy machine construction down to small household
apparatus.
In general, individual works, either at Siemensstadt or elsewhere, are specialised for the production of particular articles ;
for example, in the case of the Siemens-Schuckert Works, the
Dynamo Works at Siemensstadt manufactures large motors,
while the Nuremberg Works produces medium-sized motors and
the Elmo Works small motors. The Switch Works at Siemensstadt, a remarkable building twelve stories high, produces medium and large-sized switch apparatus. The Cable Works at
Siemensstadt manufactures cables and lines, the Neuhaus Works
porcelain, and so forth. The Siemens Bauunion at Siemmensstadt, a separate associated Company, is responsible for underground construction of all kinds, concrete and reinforced-concrete constructions, construction of hydro-electric plants, pressure conduits and penstock pipe lines, tunnels, barrages, dams
and weirs, locks, docks, underground railways, railways, bridges,
water supplies and sewage disposals for towns and industries,
ground-water lowering, and well-boring.
Finally, to close this brief introductory account of the scope
and character of the Siemens Works, something must be said
of the financial results of the Companies. The capitalisation in
share capital has already been indicated. The turn-over of
the whole concern in 1928-1929 was 945 million marks. In that

THE SIEMENS WORKS

year over one-third of the sales of Siemens and Halske were
made abroad. The following table gives figures for the last
four years of the net earnings of" Siemens and Halske and the
Siemens-Schuckert Works, and the dividends paids on the shares
of Siemens and Halske and the Siemens-Schuckert Works respectively :

1925-26

1926-27

1927-28

Net earnings, in million
Reichsmarks

32.42

34.02

32.50

3 7 . SO

Dividends :
Siemens and Halske

10%

12%

14%

10 %

10%

Siemens-Schuckert

THE

ORGANISATION

sy2 %

AND

ADMINISTRATION

1928-29

INDUSTRIAL

RELATIONS

It is obvious that no single form of industrial relations would
suffice to cover the wide diversity of conditions under which
the operations of the various factories of the Siemens combine
are carried on in various parts of Germany and abroad. In
this report no attempt will be made to explain the administration and functioning of industrial relations in any of the Siemens
factories outside Siemensstadt, for the visit of the authors of
the report was limited, at their own request, to Siemensstadt.
It is in Siemensstadt that are situated both the headquarters of
the firm and the works employing the majority of its workers.
And it is in Siemensstadt that all the characteristic features of
industrial relations in the Siemens Combine are to be found.
Of the total staff of over 138,000 employed by the Siemens
Companies, over 76,000 work in Siemensstadt.
Thé following
table indicates by occupational category and geographical locality
the division of these totals into their component parts \

These figures relate to the end of September 1029.

INDUSTRIAL RELATIONS

STAFF OF THE SIEMENS

COMPANIES

Salaried
employees

Wage-earning
workers

Total

22,18-1

54,495

76,679

Nuremberg

2,518

8,439

10,957

Other firms in Germany

7,450

16,463

23,913

Total for Germany

32,152

79,397

111,549

8,979

17,651

26,630

41,131

97,048

138,179

Group
Greater Berlin

Outside Germany
Grand Total

Siemensstadt lies in the north-west of Greater Berlin, 10 kilometres from the centre of the town, and spreads into the districts of Charlottenburg and Spandau. Its situation is so beautiful that it has been called " The industrial city in the greenwood " (Industriestadt
im Grünen).
To the north, south and
west forests and parks extend uninterruptedly. To the south the
ground is bordered by the river Spree. The Siemensstadt Works
are closely concentrated in these attractive surroundings. From
the summit of the clock-tower of the Werner Works or from the
top of the twelve-story Switch Works, Siemensstadt presents
a picture of unusual architectural homogeneity and beauty. This
geographical concentration of the Works at some little distance
from the main centres of population of Berlin, while it undoubtedly has many advantages, also involves certain difficulties.
The main difficulty arises in assuring satisfactory transport facilities for the workers. Of the total staff employed at the Siemensstadt Works, only about 3,000 live in Siemensstadt itself. The
rest, over 70,000, travel daily from various parts of Greater
Berlin, and even from outside that area from distances as great
as 70 or 80 kilometers.
The firm has been actively concerned with the question of
the development of transport facilities, and some years ago a
special branch line was built right into the Works from the main
line of the Reichsbahn. Special trains for the workpeople are
run on this branch to the main junctions. The other means
of transport mainly used are tramways, motor-buses, motor-cars
and bicycles.

THE SIEMENS WORKS

A careful enquiry made in April 1927 by the Industrial
Relations Department of the firms showed that the distribution
of the workers living in various parts of Greater Berlin was as
follows :
Iministrative district

Workers employed by the
Siemens firms

Central Berlin
Charlottenburg
Spandau
Wilmersdorf
Zehlendorf
Schöneberg
Steglitz
Tempelhof
Neukölln
Treptow
Cöpenick
Lichtenberg
Weissensee
Pankow
Reinickendorf

21,962
10,832
12,846
1,157
137
1,071
659
363
1,284
184
129
984
207
728
638

Greater Berlin

53,181

The map on p. 8 shows clearly the position of Siemensstadt and the density of the Siemens population living in each
of the postal areas of Greater Berlin.
The enquiry further showed that there were, on 1 April 1927,
no fewer than 2,221 members of the staff of the Siemens firms
living at distances greater than 10 kilometres from the Works.
Of these, 37 lived at a greater distance than 50 kilometres from
Siemensstadt. The detailed figures are as follows :
Over 10 kilometers
15
»»
20
25
,
30
»
35
t
40
»
45
»
50
•
Total

117 persons
1,210
,,
280
,,
427
»,
65
»,
53
»»
17
»»
15
»»
37
»»
2,221 persons

It is clear that this wide distribution of the working population of Siemensstadt creates difficulties not only from the
point of view of transport, but also in connection with the provision of midday meals. The measures taken by the firm to
deal with the latter problem will be indicated in detail in the
section of this report dealing with welfare.

INDUSTRIAL RELATIONS

The department of the firm specially concerned with the
organisation and administration of industrial relations is the
Industrial Relations Department (Sozialpolitische Abteilung). The
Industrial Relations Department forms one of the central departments common to both Siemens and Halske and the SiemensSchuckert Works, and its Director and most of its officials are
located in the central administration building at Siemensstadt.
The Department naturally works in the closest concert, in matters
of general policy, with the Managing Directors of Siemens and
Halske and the Siemens-Schuckert Works. With regard to questions of detailed execution, it operates in close co-ordination
with the works managers in charge of the various individual
works.
The functions of the Industrial Relations Department comprise all questions relating to labour and employment in accordDISTRIBUTION OF EMPLOYEES OF THE GREATER BERLIN
SIEMENS WORKS, ACCORDING TO THE POSTAL DISTRICTS THEY
INHABIT ( 1 APRIL 1 9 2 7 )

THE SIEMENS

WORKS

aneé with legislation, collective and individual agreements.
Its duties comprise questions relating to hours and conditions of service, wages and salaries and other similar questions
affecting the staffs as a whole, with a view to securing uniform
and consistent treatment in all the Works of the firm ; the elaboration of the system for the registration and documentation
relating to the employees, the setting-up of a central staffindexing system covering all the Greater Berlin works and departments ; relations with the United Works Council ; the administration or co-ordination of questions relating to health, accidents,
pensions, workers' transport and housing conditions, education.
apprenticeship, and so forth ; the management and control of
restaurants, institutes and other premises set aside for the staff,
and also of the catering stores ; and finally the general supervision of the welfare work of the firms in all its various aspects.
The organisation and administration of particular matters
appertaining to industrial relations in the various works are,
in principle, decentralised. Questions of employment, for example, and contacts with the Works Council in each works are dealt
with by management in the works concerned. In each of the
largest works there is an industrial relations officer who assures
at all times and in all circumstances the closest liaison between
the works administration concerned with the details of industrial relations and the general industrial relations policy of the
firm as developed by the Industrial Relations Department.
The internal organisation of the Industrial Relations Department is shown in the table on page 10.
Relations with Joint Bodies, Employers'
Organisations
and Trades Unions : Collective Bargaining
In connection with the organisation and administration of
industrial relations, the firm is related to various joint bodies,
employers' organisations and trades unions.
The firm is a
member of the Association of Iron and Steel Manufacturers of
Berlin (Verband Berliner Metall-Industrieller),
and the workers
are members of various trades unions in the metal and associated
industries. General conditions of work in the firm are laid down
in collective agreements concluded between the Association of
Iron and Steel Manufacturers of Berlin on the one hand and the
respective trades unions on the other.

SPHERE

OF ACTIVITY OF THE INDUSTRIAL RELATIONS DEPART
(Siemensstadt. .Berlin. Position as at 1 July 1
HEAD OF DEPARTMENT

I
Section for
Labour ^Questions
and
Workers' Employment Exchange
1. German and international labour
questions.
2. Contracts of service.
3. Industrial apprentices/
4. Protection of seriously disabled
workers.
5. Statistics.

Section for
Questions Affecting Salaried Employees and
Employees' Employment Exchange
1. German and international questions affecting salaried employees.
2. Contracts of service.
3. Contracts of probationers, working students and commercial
apprentices.
4. Statistics.

1
2
3
4
5
6
7
8
9

Office
for
Labour Disputes

Central Office
1.
2.
3.
4.
5

Reports.
Card-index.
Vocational schools.
Accounts and book-keeping.
General office administration.

Registry
Archives

1. Administration of works committees (Committee on Collective A
Education Committee, Meetings of Social Secretaries, Welfare C
2. Representation on Employers' and other industrial organisations
3. Representation on public bodies^

THE SIEMENS WORKS

Two collective agreements regulate the working conditions
of wage-earning workers and of salaried employees respectively.
The one relating to wage-earners is that adopted in a codified
form on 16 July 1928 between the Association of Iron and Steel
Manufacturers of Berlin on the one hand and the German Metal
Workers Association, Berlin District, on the other, entitled : " Collective Agreement for male and female workers employed in the
Berlin metal industry ". This collective agreement, published
jointly by the two parties to it, is a carefully arranged and
indexed document of 104 pages, dealing in detail with hours
of work, rest pauses, employment, holidays, dismissals, wage
rates, including piece work and time work, representation of
the workers, conciliation, and so forth. The provisions with
regard to wage rates are particularly detailed and contain most
careful classifications of the various forms of industrial occupa :
tion for which men and women may be employed. This collective agreement contains provisions of various dates in the
post-war period. Its validity was fixed at its coming into force
for a period of two years, which is automatically prolonged
six months at a time provided neither party denounces it. The
wage provisions, however, are valid only for a shorter period,
and certain alterations were made in 1929.
In the case of salaried employees a similar codified collective
agreement was concluded on 20 October 1928 between the Association of Iron and Steel Manufacturers of Berlin on the one
hand and the following associations of salaried employees on the
other : The Union of Technical Employees and Officials (Bund
der technischen Angestellten und Beamten), the German Foremen's Federation (Deutscher Werkmeister-Verband),
the Central
Federation of Salaried Employees (Zentralverband der Angestellten), the German National Federation of Commercial Employees
(Deutschnationaler
Handlungsgehilfen-Verband),
the Federation
of Female Commercial and Office Employees (Verband der weiblichen Handels- und Büro-Angestellten),
the Federation of German Technicians (Verband Deutscher Techniker), the Berlin District Branch of the German Foremen's Association (Deutscher
Werkmeisterbund),
and the Trade Union Federation of Salaried
Employees (Gewerkschaftsbund
der
Angestellten).
This collective agreement, like that mentioned above, is
published by the parties to it, and is a printed document of
40 pages. It enters into great detail with regard to hours of

INDUSTRIAL RELATIONS

work, overtime, holidays, accidents and insurance, salaries, con ;
ciliation, employment and dismissal. With regard to salary rates,
an annex resulting from an agreement of 24 September 1929
fixes the rates. This collective agreement remains in force for
one year, and is thereafter tacitly renewed, unless either side
wishes to introduce changes, in which case it has to give notice*
to that effect three months before the expiry of the period
of validity.
In the event of a dispute arising with regard to the interpretation of the collective agreement, the matter is referred to a
special Superior Committee consisting of five representatives of
each of the parties. This Committee may also formulate decisions
without being called upon by either party. Its decisions are
binding. As regards disputes concerning the classification into
groups of the salaried employees, these come before a " Grouping Committee " (Eingruppierungskammer)
consisting of two
employers, two workers, and one impartial assessor. For the
rest, conciliation procedure for all disputes arising out of collective-agreement terms follow the lines laid down by law.
Although the collective agreements are extremely detailed,
they leave room for further agreements on points of greater
detail to be concluded within the individual works and, as we
shall see in the next section of this report, such agreements
have, in fact, been concluded in the various works of the Siemens
firm.
Apart from the relations which the firm has through the
Employers' Association with the trade unions, it has little direct
contact with the trade unions. Such relations as it has are
relations in various official or joint bodies which provide for
representation of employers and workpeople. Among these
bodies, reference may be made in particular to the Employment
Offices (Arbeitsämter), Social Insurance Offices
(Versicherungsämter), Committees for the Employment of Disabled Men
(Schwerbeschädigtenausschüsse),
and Labour Courts.
Industrial

Relations

within

the Firms :

Works

Councils

The Siemens Works have a long tradition of workers' representation. In the year 1872, a committee, consisting of representatives elected by the whole staff, was set up to co-operate with
the management of Siemens and Halske's pension funds. This,

T H E SIEMENS

WORKS

however, was not "workers' representation " in the modern sense,
since the committee's functions were restricted to the one question of pensions. Yet it was the first expression of the idea of cooperation with the workers — an idea which in 1903 led to
the creation of the first workers' committees, consisting of
workers' representatives, some of whom were appointed by the
management and some elected by their own fellow workers.
In 1906 the firm renounced its right to appoint workers' representatives, and from that time until the war the appointment
of representatives of the workers on these workers' committees
was made entirely by free election.
The scope of the work of these committees was wide. They
dealt with all questions of interest to the workers, including
wages and hours, complaints and grievances, the application of
legislation, accidents, health, and so forth. It should be noted
that these committees were voluntarily set up in the Siemens
firm and were not the result of any form of legislation. In 1916,
however, an Auxiliary National Service Law
(Hilfsdienstgesetz)
provided for the creation of workers' committees. Since 1920,
the representation of the workers within the firm has been
assured in accordance with the Works Councils Act of 4 February
1920
(Betriebsrätegesetz).
The detailed application of this Act in the Siemens Works
at Siemensstadt is provided for in an agreement dated 4 November 1920, concluded between the management of the firm and
the United Works Council. While this agreement of 4 November
1920 has been subsequently amended, the main provisions of
it remain in their original form.
The general provisions of the German Works Councils Act
are well known, but it is of much interest to study the detailed
application of the Act, which has given rise to so much discussion both in Germany and abroad, in a particular firm.
The Act provides that, in order to protect the common
economic interests of salaried and wage-earning employees in
relation to their employers and to support employers in effectively carrying on their businesses, works councils should be
constituted in all works normally employing not less than ten
persons. Separate councils for salaried employees and wageearning workers are to be constituted in every works when'
both wage-earners and salaried employees are employed. It was
also provided that if several works serving allied purposes and

INDUSTRIAL RELATIONS

belonging to the same proprietor are situated in the same commune, united works councils may be constituted in addition to
the councils for individual works. In accordance with this provision, councils for salaried employees and for wage-earning
-workers have been set up in the various work of the Siemens
firm and a United Works Council (Gesamtbetriebsrat) has also
been established.
The Act further provides that all members and supplementary
members of works councils are to be chosen at the same election
by the employees of the undertaking from among their own
ranks by direct ballot vote on the system of proportional representation, and' that they shall hold office for one year. Members
and supplementary members who are salaried employees shall
be similarly elected by the salaried employees. Wage-earning
workers arid salaried employees of both sexes who have attained
the age of 18 years and who are in possession of civic rights
shall be entitled to vote. s To be eligible for election as member
of the councils, it is necessary to have attained the age of 24 years,
to be a German citizen, to have completed training in a particular
occupation, and to have been employed on the day of election for not less than six months in the particular works or
undertaking and for not less than three years in the branch of
industry or occupation in which the worker is engaged on the
day of election.
'
The following tables give particulars with regard to the wageearning workers and salaried employees, members of the works
councils in the Siemens firm. The first table gives the total
number of works council representatives, both for the Greater
Berlin works and for the Nuremberg, works, and the second
table shows, for the Greater Berlin works only, the trade-union
affiliation of the members of the works councils.
NUMBER A N D

DISTRIBUTION

OF WORKS

Works council
members
Salaried Wageem- earning
ployees workers

Total

COUNCIL MEMBERS,

Substitute
members
Salaried Wageem- earning
ployees workers

1930

Totals

Total

Salaried Wageeinj èarning
ployees workers

Total

Greater
Berlin
Nuremberg

149

228

71 "

-34

Total

174

262

117

150

195

345

136

171

227

398

T H E SIEMENS WORKS

AFFILIATION OF WORKS COUNCIL MEMBERS

Works council
members

Totals

Substitute
members

Salaried WageSalaried WageSalaried Wageearning Total
emearning Total
emearning Total
employees workers:
ployees workers
ployees workers:

Representatives
of
the
three
leading
trade-union
organisations
Socialist tradeunions
(Free
and AFA)
Hirsch - D u n k l e r
organisations,
etc>
Christian national
trade - u n i o n s
(Gedag)
Representatives
of
political parties, etc.
L e f t parties :
communists,
anti-tradeunionists, e t c .
R i g h t parties :
Fatherland,
National socialists, e t c .
Unaffiliated
to
trade-unions or
political parties
Total

135

104

138

197

149

228

117

150

195

345

, In each individual works of the Siemens firms there exists a
works council (Betriebsrat) which in the largest works attains
to the statutory maximum of 30 members, and also a salaried
employees' council (Angestelltenrat), and a wage-earners' council
(Arbeiterrat). A United Works Council for the whole of the firms,
consisting also of 30 members, is composed of representatives of
the various constituent works councils. A committee of five
members of the United Works Council constitutes the ultimate
voice of the workers in the Siemens firms.
A special agreement between the management of the firms
and the United Works Council provides in detail for the number
of working hours for which works council members on council
business will be paid by the firms. The law provides that a

INDUSTRIAL RELATIONS

works council shall meet outside working hours as a rule and
whenever possible, and that when it is necessary to hold a
meeting during working hours the employer shall be given proper
notice. It further provides that members and substitute members
of works councils shall fulfil their duties without remuneration
in working hours, but that unavoidable loss of working time
shall not be made a ground for the reduction of wages or salaries.
These clauses in the Act have given rise to considerable dispute
in various German firms, but in the Siemens works the arrangements concluded have worked entirely smoothly.
The agreement provides that 35 members of works councils,
including the five members of the committee of the United
Works Council, shall devote their time to works council business.
They are paid by the firm on a wage-earning or salary basis,
in accordance with the rates of earnings of their category. A
large number of the other members of the works councils
devote a considerable proportion of their time to works council
business and are remunerated for this time by the firm. The
detailed distribution of hours per week placed at the disposal
of the works council representatives is amended from time to
time by agreement between the management and the United
Works Council.
In addition to this, provision is made, in accordance with
another section of the Act, for hours being set aside, also at
the expense of the firm, for interviews between members of the
works councils and the workers. The Act provides that works
councils may arrange for regular hours for interviews on one
or more days in each week, when the employees may make
requests and complaints. If the hours for interviews fall within
working hours, the arrangement must be made by agreement
with the employer. It is provided in a special Siemens agreement that all works council members not employed full time
on works council business must inform the foreman in good
time of the probable duration of their absence on works council
business and must report to him on their return to work.
At present over 2,000 hours per week, including the time of
the whole-time representatives is, in the Greater Berlin Works,
devoted to works council business and interviews.
The distribution among individual works is regulated by agreement
with the United Works Council, and varies between 2 hours for
small works up to 560 for the largest. That for works council

T H E SIEMENS

WORKS

business and for interviews is fixed by agreement between the
management and the works council representative.
In accordance with the provisions of the Act, a special Siemens
agreement provides for the placing at the disposal of the works
council by the firm of room space, etc. The Article of the Act
providing that the employer shall place rooms and other business
necessaries at the disposal of the works council has been interpreted in a liberal sense by the management.
In works in
which nine or less works council members are employed, one
room is placed permanently at the disposal of the works council,
and in works with over nine works council members, two rooms.
Each room is furnished at the expense of the firm with the
usual office equipment, including tables, chairs, wardrobes,
book-cases and other furniture. Telephones and stationery and
reference books are also provided.
Four typists are placed
at the disposal of the works councils. Certain provision is also
made for the personal expenses of works council members.
The powers and duties of the various councils are laid down
in detail in the Act. It will be useful to recapitulate or summarise them here.
The powers and duties of the works council (Betriebsrat)
are usually distinguished into economic and social aspects. The
economic functions include the duty to co-operate in the achievement of the maximum degree of economy in production in the
undertaking, to co-operate in the introduction of new methods
of work, and to guard the undertaking against disturbances. The
other duties of the works council, while they involve an economic
aspect, are rather social in their orientation. The works council
has to supervise the execution of decisions accepted by both
parties in respect of matters affecting the undertaking as a whole
which have been issued by a conciliation or arbitration committee or other organ. It must also promote good understanding
among the employees themselves and between them and the
employer, and safeguard the employees' right of association.
It must come to an agreement with the employer as regards
rules of employment, and must endeavour to secure the removal
of the causes of complaint by negotiation with the employer.
The works council has further duties in connection with the
prevention of accidents and injury to health, and in the participation in the administration of pension funds, dwellings
attached to the works and other welfare arrangements.
t

INDUSTRIAL RELATIONS

The duties of councils of wage-earning workers (Arbeiterrat)
and of salaried employees (AngesteUtenrat) are more restricted
than those of the works council and do not extend to the purely
economic field.
Their functions involve the more detailed
application of the social duties of the works council.
Thus
they are to see that legal provisions for the benefit of employees
and collective agreements respecting conditions of employment,
and also decisions accepted by the parties of a conciliation committee or of any other organ of conciliation or arbitration agreed
upon, are carried out in the undertaking. They are to take partin the fixing of wages and other conditions of employment in
so far as they are not already regulated under collective agreements. They have further detailed duties on the same lines
as those of the works council with regard to agreements with
the employer respecting rules of employment, the investigation
of complaints and the removal of their causes by negotiation
with the employer, the taking of action to prevent accidents
and injury to health, and, in particular, intervention on the
behalf of persons disabled in the war or by accidents. These
councils finally have a duty to come to an agreement with the
employer respecting general principles for the engagement of
employees and to intervene in cases of dismissal of employees.
The, general distinction, it will be seen, between the functions
of the works council on the one hand and the councils of wageearning workers and salaried employees on the other is that the
works council possesses certain functions of a purely or predominently economic type, and further that the works council's
functions relate in general to questions of general principle, while
the councils of wage-earning workers and of salaried employees
deal in greater detail with the actual application of these principles.
*
The Works Council Act, as is well known, does not provide
for the setting up of any joint committee of representatives of
the management and of the workers. It does, however, make
provision at various stages for relations between the works
councils and the management.
It is provided in the Siemens
firm that the works council, the salaried employees" council and
the wage-earning workers' council in each works negotiate
directly with the works manager of the particular works. Only
if it is not possible to reach agreement by direct negotiations, is
the matter brought by the local works council to the United

TBE SIEMENS WORKS

Works Council.
The relations of the United Works Council
are with the Central Industrial Relations Department and with
the Board of Directors.
The management may be invited to take part in the meetings
of the works councils. The management cannot take part in any
meeting of the works councils unless invited to do so.
Minutes must be kept of every meeting of the works councils, and if a member of the management has been present and
has given explanations in the course of a debate, the minutes
must be submitted to him for signature.
The works council has the right to ask the employer to give
access to all transactions of the undertaking which affect the
contract of employment or the activities of the employees and
to the wages books and information required in connection with
the carrying out of existing agreements, in so far as business
or trade secrets are not endangered thereby and legal provisions
do not prevent it.
It is further provided ihat the employer should make a
quarterly report on the position and progress of the undertaking
and of the industry generally and, in particular, on the output
of the works and on anticipated requirements in respect of labour.
It is also laid down that in works over a minimum size the
works council may require an annual balance sheet to be submitted for the inspection of the works committee. The members
of the works committee or works council are bound to preserve
secrecy in respect of confidential matters communicated to them
by the employer.
These various provisions are carried out regularly in the
Siemens firms, and particular care is taken to explain the
financial and industrial situation to the works council members.
The committee of the United Works Council has at present
in preparation a historical work which will give an account
of the development of the works council and of the position of
industrial relations in the Siemens firm as seen from the point
of view of the works council. That work will show in detail
the way in which the various questions which have come before
the works council during these years have been dealt with.
The works council has, in fact, been concerned especially with
the following questions : the settlement of grievances, either
through direct negotiations with the management or before the
conciliation court ; accident prevention ; insurance questions ;

INDUSTRIAL RELATIONS

wage disputes arising out of the interpretation of collective agreements and works agreements ; changes in the nature of work
or methods ; introduction or alteration of machinery ; the consideration of employment procedure ; and the review of discharges.
The development of industrial relations in special connection
with the evolution of the works council system has been
particularly smooth in the Siemens firm, owing in part to the
sincere desire on the part of the Industrial Relations Department
to obtain the best results, and in part to the fact that a considerable proportion of works council members, including the Chairman of the Committee of the United Works Council, have been
re-elected year after year since the establishment by law of
works council machinery. The advantages of such permanence
in the direction of the policy of the works councils are so obvious
that there is general agreement, both on the part of management
and on the part of the workers in the Siemens firm, that it would
be desirable that elections should take place not every year, as
provided by law, but every two years. It is felt that a longer
term of office on the part of works council members would be
advantageous both from the point of view of the workers and
from that of the management.
In addition to the provisions for collaboration between management and workers through the works councils' scheme,
arrangements are in operation for securing representation of the
workers on various bodies functioning for the direct benefit of
the workers. Thus, in addition to statutory representation, the
workers are represented at the firm's suggestion on the Board
of Directors of the Industrial Sick Fund, the committee of the
Pensions Fund, in the Advisory Council of the Welfare Foundation, on the Accident Prevention Commission, on the restaurant
committees, and so forth. The firm has, in fact, done its best
not to limit co-operation between management and the representatives of the workers to the strict provisions of the law
embodied in the Works Councils Act, but has endeavoured at
every point to extend the principle of representation, whenever
possible, in other domains.
In accordance with the provisions of the Act, two representatives of the Works Councils have seats on the Supervisory Board
(Aufsichtsrat)
of the two main companies. These representatives who, in the case of the Siemens firm, include the Chairman

THE SIEMENS

WORKS

and Vice-chairman of the Committee of the United Works Council, have the right to attend and to vote at all meetings of the
Supervisory Board, in order to represent the claims and interests
of the workers and to put forward their opinions and desires in
respect of the organisation of the undertaking.
One of the provisions of the Works Councils Act is that
the works councils shall, subject to the terms of existing collective agreements, negotiate agreements with the employer respecting general rules of employment. In accordance with this
stipulation, negotiations have taken place at Siemensstadt between
the management and the works council, and a corpus of
general rules of employment has been adopted and put into
force both for wage-earning workers and for salaried employees.
The Work Rules (Arbeitsordnungen)
applying to wage-earning
workers were agreed upon on 16 January 1922, with validity
from 1 February 1922, and have since remained unchanged.
Some difficulty was experienced in securing agreement between
management and the United Works Council, and points in dispute had to be submitted to the decision of the Conciliation
Committee for Greater Berlin, sitting under an impartial chairman, on 31 January 1921, 7 February 1921, and 17 October
1921. The purpose of the Work Rules is to regulate details of
employment, with special reference to conditions in the particular
works, in application of the principles laid down in the collective
agreement.
If at any time any inconsistency should arise
between the Work Rules and the collective agreement, the provisions of the collective agreement, an instrument of superior
instance, must in all cases prevail. The Work Rules deal in
detail with the procedure for the engagement and dismissal of
workers, distribution of hours of work, overtime, rest pauses,
methods of calculation and payment of wages, provisions for
the prevention of fire and accidents, the cleaning of machinery
and tools, gate control, methods of dealing with grievances, and
so forth.
The Service Rules (Dienstordnung),
applying to salaried employees, were agreed upon on 3 August 1929, with validity from
1 October 1929. They also regulate details of employment in
accordance with the general principles laid down in the collective
agreement The Service Rules differ somewhat in scope and
character from the Work Rules, in view of the differences in

INDUSTRIAL RELATION'S

functions between the salaried employee and the wage-earning
worker. The Service Rules contain provisions with regard to
the duties and responsibilities of supervisors, the maintenance
of secrecy concerning the firm's work, the distribution of hours
of service, identity papers, door control, announcement of sickness and delays, subsidiary activities outside the firm, such as
writing or lecturing, procedure for dealing with grievances, and
so forth.

Individual Relations between Management and Workers
Great importance is attached at Siemensstadt, in connection
with industrial relations, to the establishment of direct contact
between .management and the workers. Dr. von Siemens himself
emphasises the necessity, for the maintenance of the traditions
of the firm, of multiplying opportunities for this direct contact.
It is clear that it is not possible for the relations of the head of
the firm to his 76,000 workers at Siemensstadt to be as intimate
as were the relations of his father, 83 years ago, to the handful
of workers with whom he founded the firm. Methods must
be adapted to circumstances. Dr. von Siemens has sought to
establish direct relations between himself and his workpeople
in two ways ; on the one hand, through the printed word with
all the workers in the firm, and on the other, through the spoken
word with selected groups of workers.
The printed word is represented in -two forms. In the first
place, the firm issues a works magazine, Siemens-Mitteilungen,
in which announcements that Dr. von Siemens wishes to make
to the whole staff are printed. This magazine includes also, in
addition to other matter, records of Dr. von Siemens' speeches at
the shareholders' meeting and on other occasions of interest to
the workers. To ensure that this magazine should be as widely
read as possible, it is not given put at the works, but is posted
free to the homes of all thé workers.
In addition, Dr. von Siemens occasionally issues announcements which are posted on all notice boards in the works, with
regard to such questions as, for instance, the Apprentice Foundation (Lehrlingsstiftung), German Safety First Week (Reichsunfallverhütungswoche), Annual Bonuses (Abschlussprämie).
These bring directly to the attention of all workers, from the

T H E SIEMENS

WORKS

head of the firm himself, questions to which he attaches special
interest and which are of particular importance.
The spoken word is necessarily more limited in scope than
the written word. The head of the firm cannot hope to reach
all workers through personal addresses, and therefore he necessarily confines himself to special groups on special occasions.
For example, Dr. von Siemens himself presents at a special
annual festival the gifts or certificates given in the name of the
firm to workers who have completed 25 years' service and to
others specially deserving of recognition. On this and other
occasions Dr. von Siemens attempts to enter into direct touch with
specific groups of the workers.
In accordance with the example of Dr. von Siemens, the
heads of all departments take every reasonable opportunity of
developing personal contact with their staffs. Christmas parties
are arranged in various departments and sections, in which all
members of the department and section take part, and summer
excursions are also organised by the individual works.
Every endeavour is made, finally, to interest the workers
in the progress of the firm, not only through the Siemens-Mitteilungen, but also by organising works exhibitions, arranging representations of cinema films showing various aspects of the work
of the firm, and the giving of lectures. Lectures on the history
and development of the firm are given to all newly engaged
salaried employees, in groups of 50-100, and lectures in individual
works are also arranged from time to time as opportunity
occurs.

W A G E S , H O U R S , AND G E N E R A L

CONDITIONS

OF SERVICE

Wages, hours, and general conditions of service of wageearning workers and salaried employees are determined partly
by legislation, partly by collective agreement and partly by work
or service regulations.
The legislative provisions are numerous, and only the principal ones need be mentioned here. These are the Civil Code
(Bürgerliches
Gesetzbuch), the Commercial Code (Handelsgesetzbuch), the Industrial Regulations (Gewerbeordnung),
the

INDUSTRIAL RELATIONS

Regulations on Hours of Work (Arbeitszeit-Verordnung) of
21 December 1923, the Emergency Act on Hours of Work (Arbeitszeit-Notgesetz) of 14 April 1927, the Works Councils Act (Betriebsrätegesetz) of 2 April 1920, the Maternity Act (Mutterschutzgesetz) of 16 July 1927, the Act on the Employment of Disabled
Men (Gesetz über die Beschäftigung Schwerbeschädigter) of
12 January 1923, and the Act on Notice of Dismissal (Kündigungschutz-Gesetz) of 9 July 1926.
The collective agreements and work and service regulations
have already been described.
It is in accordance with this mass of legislation and regulation — part of it national in scope, part of it district, and part
of it confined, to the particular firm—that conditions of service
are determined.
It will be convenient to give a tabular presentation of the main conditions of service resulting, on the
basis of legislation, from the functioning of the system of industrial relations which has just been described.

THE SIEMENS WORKS

MAIN CONDITIONS OF SERVICE
Condition
Rates of pay

Wage-earning workers

Salaried employees

For the purposes of rates of
pay, wage-earning work is divided into four main classes :
A. specialised work ; B. i ormai
.skilled ' work ; C. semi-skilled
work ; D. unskilled work.
Time rates are as follows :
Men
Warnen
Class A 112 Pf.
— Pf.
" B 100 "
—
"
" C 89 "
. 62.5 "
" D 84 "
59.0 "
Time rates are minimum
rates, and the firm may give
allowances in accordance with
the special duties and responsibilities of the particular job.
Piece-work rates are calculated to provide that the average
worker can earn 15 per cent.
above the time rates. Normal
piece-work rates, therefore, are
as follows :

For rates of pay, salaried
employees are classified in four
main groups : A. Employees
who have received no regular
training ; B. Apprentice employees ; C. Office employees
occupied on subordinate or
simple mechanical functions.
This class is subdivided into
three sub-classes ; (a) messengers and assistant clerks under
18 ; (b) subordinate office assistants over 18 ; and (c) pay
office messengers, etc. ; D. Employees having terminated apprenticeship or vocational training. This class is subdivided
into several sub-classes ; (1)
employees under 18, (2) employees over 18 (a) commercial employees and works employees (again sub-divided into
four classes), (b)
technical
office and works employees
(sub-divided into eight classes),
and (c) foremen (sub-divided
into nine classes). ,
In each of the grades provision is made for increments
running until the employee has
been from three to five full
years in the same grade.
Female employees receive in
each grade a somewhat lower
salary, than the corresponding
male employee.
The rates for males vary from
45 RM. to 116 RM. monthly,
Grade A ; 32-68 RM., Grade B ;
102-202 RM., Grade C (b) (c) ;
and 89-420 RM., Grade D .

M i
Women
Class A 129 Pf.
— Pf.
" B 115 "
—
"
" C 102 "
72.0 "
" D 97 "
68.0 "
The piece-work rates given
are average rates (but not guaranteed minimum rates) and
actual earnings are considerably
higher. For purposes of comparison, the results of an official enquiry into the metal industry in Germany l shows the
average piece-work rates in the
German metal industry to be :
Specialised and skilled worker
corresponding to Classes A
andB
Time 107 Pf. ; Piece 118 Pf.

These salary rates are all
fixed in the collective agreement.

Semi-skilled worker, corresponding to Class C
Time
88 Pf. ; Piece 108 Pf.
Unskilled worker, correspond. ing to Class D
Time
79 Pf. ; Piece
96 Pf.
Woman worker, corresponding
to Classes C and D
Time
56 Pf. : Piece
67 Pf.
•ikt October 1928. At I he present timj tue tate« ara Iram 3 to 5 PL higher.

INDUSTRIAL RELATIONS

MAIN CONDITIONS
Condition
Overtime rates

O F SERVICE

(continued)

Wage-earning workers

Salaried employees

Ordinary overtime, 15 per
cent. Work on Sunday and holidays, 50 per cent. ; in both cases
on time rates. In the case of
piece rates, similar percentage
on the average piece rates.

Overtime rates at the rate of
6 per thousand for ordinary
overtime, and 8 per thousand
for time on Saturdays and Sundays and after 8 p.m. on other
days. No overtime paid until
48 hours a week have been
worked.

Allowances

Certain allowances are provided for in the collective agreement. These are family allowances of 10 RM. for the wife
and for each child up t o the
age of 15, and telephonists'
allowance of 9 RM. Special
allowances are also given t o
employees holding supervisory
J functions. These monthly alI lowances are flat rates. In addition to these allowances, pro! vided for in the collective agreeI ment, Siemens pay certain adj ditional allowances ; charge al! lowances and bonus allowances
| for special duties ; allowances
I for dependants other than wives
| and children — for example, pa: rents and sisters ; children's
allowances up to 18 years ; end
of year bonuses, details of which
are given later.

Normal working week

48 hours weekly ; in cases of
urgency, up to 54 hours provided that the total additional
hours for the month do not exceed 10.

48 hours weekly ; in cases of
urgency up to 54 houi\, provided that the total additional
hours for the month do not exceed 10.

Overtime

By collective agreement, the
firm can impose 15 hours' overtime in every period of thirteen
weeks. If more overtime than
this is required, the agreement
of the wage-earning workers'
council is necessary.

Overtime exceeding 0 hours
in the week and 10 in the month
must be agreed with the representatives of the salaried employees unless in cases permitted by the Order on Hours
of Work.

Spread-over
and
hours
of duty

For a variety of reasons, one
of which is t o avoid traffic congestion, wage-earning workers
are divided into six groups, according to the works in which
they are employed.
These
groups begin and finish work
ten minutes after one another,
the hour of starting duty varying according to the group from
6.20 to 7.10 a.m. and the hour

Salaried employees are also
divided into six groups, which
begin work at 10-minute intervals, from 7.20 to 8.10 a.m.,
finishing work at 4.20 to 5.10
p.m., Monday t o Friday, and
at 12.50 to 1.40 p.m. on Saturday.
Meal intervals are the
same as for wage-earning workers.

TBE SIEMENS WOBKS
MAIN CONDITIONS OF SERVICE
Condition

Annual leave
with pay

(continued)

Wage-earning workers

Salaried employees

of finishing work varying from
3.5 p.m. to 3.55 p.m. Monday
to Friday, and from 1.20 to 2.10
p.m. on Saturday. The break- .
fast period consists of Ì0-15 minutes taken between 9 and 10
a.m., and the dinner period from
20-30 minutes taken between
mid-day and I p.m., Monday to
Friday. On Saturday, 10-15 minutes breakfast period is given
between 10 and 11 a.m.

The working hours amount
to 8 y2 hours from Monday to
Friday and 5% on Saturdays,
not including an interval of
y2 hour at midday, which also
takes place on Saturdays.

Every worker with-six months'
service on 1 April of any year is
entitled to holidays with pay.
The period given varies from 3
working days in the case of a
worker with not more than one
year's service to 8 days for a
worker with over ten years' service. Years of service in all
plants of the firm are valid. Service must, however, be uninterrupted, with the proviso that a
break up to a period of two
months is not regarded as an interruption. During leave workers are entitled to full wages.
If the department is working
overtime, he is entitled to overtime pay during bis holiday. On
the other hand, if the Department is working short time, he
is paid for full time on holidays.
Special leave is given for long
service (Jubilee workers) ; 2529 years' service, 12 working
days per annum ; 30-34 years'
service, 15 working days, and
over 35 years' service, 18 working days.

Annual leave with pay is
granted to all employees who,
on 30 June of each year, have
had six months' unbroken service with the firm. The number of working days varies in
accordance with grade from 6
to 20. In addition, employees
over 30 years of age and with
six months' service receive in
all grades two additional working days' leave. In principle
leave to be taken all at one
time.

EMPLOYMENT

PROCEDURE

The general principles of employment procedure are in part
regulated by agreement between employers.'and workers and
in part by legislation.
Collective agreements, for example, provide what proportion
of workpeople may be employed otherwise than through employment exchanges, and legislation what proportion of disabled

INDUSTRIAL RELATIONS

men must be employed, what notice must be given on the termination of employment and, through the Works Councils Act,
provides machinery for agreement within the works on the
general principles of employment. The Works Councils Act provides that in so far as the general principles for the engagement
of workers are not regulated by collective agreements, these
principles should be agreed upon between the employer and his
workpeople. Further, the Act provides for the possibility of
intervention of the works councils in cases of dismissal.
The
principles of industrial relations are thus applied in respect of
employment and dismissal. On the basis, however, of the general
principles laid down in legislation and collective agreement, and
within the limits provided for negotiation through the works
council system, employment procedure is entirely a matter for
administration by the management.
It will be convenient to deal separately with the administration of employment in the Siemens Works as it affects salaried
employees and wage-earning workers.
There is, however, one provision relating to employment of
concern both to salaried employees and wage-earning workers
which is of sufficient general interest to mention here. Every
person engaged at Siemensstadt, whether of the ranks of management,, as salaried employee or as wage-earning worker, must
have a pass. In the case of wage-earning workers this pass
is made of stout cardboard, approximately 10 Yi Xl% cm. in
size. It is enclosed in a holder of aluminium with a mica faca
The card contains the name of the person employed, the category
in which he is employed, the name of the works, the section
of the works, the number of the working place and of the normal
door of entry to the works.
Finally, it must be signed by
the holder. The cards differ in colour according to the works
and sections of the works in which the individuals are employed.
The validity of the cards is in some cases limited. This is done
by pasting a small coloured mark upon a corner of the cards :
after the date of issue of this mark no card which is without
it will be accepted. The passes for salaried employees differ
in shape and colour. They also carry a photograph of the bearer.
While the ordinary passes only permit the workers to enter or
leave their place of work at the beginning or end of their period
of duty, special temporary cards are issued to salaried employees permitting them to leave at any moment. It is intended

TJTE SIEMENS

WORKS

in future to apply the principle of limiting the validity of salaried
employees' passes also. The purpose of this system, which at
first sight would appear very complicated, is to secure adequate
control over the entry of workers to the works and to prevent
unauthorised entry. Owing to the very large forces employed
at Siemensstadt as a whole, and in the individual works in particular, it is impossible for the doorkeepers to recognise all
workers employed. It is therefore necessary that workers should
have a pass to show at the door. Doorkeepers are in no case
authorised to admit any person not provided with a pass indicating that he is an employee of the works. In cases where persons
from one works must visit another works, they must be suitably
vouched for in writing or by telephone before entry is permitted.
Strangers must be suitably accompanied.
The reason why passes are made out for a limited duration
is that is was found by experience that abuse of two kinds took
place. In the first place, owing to the fact that employment at
Siemensstadt is regarded as good employment, the possession of a
pass indicating that the holder was employed at Siemensstadt had
a certain commercial value in securing credit from tradespeople,
and business was in fact done by unscrupulous workpeople in
selling their passes, pretending that they had lost them, and
getting fresh ones. In the second place, a system providing for
the unlimited duration of passes made it more difficult to prevent
unauthorised entry into the firm. The new provision for limited
duration guards against both these two abuses.
Salaried

Employees

All applications for employment as salaried employee in
all the Siemens Works at Siemensstadt, and in some cases for
employment in the German works outside Siemensstadt, are
received, sifted and examined in the Industrial Relations Department, Salaried Employees' Section. The Department receives
applications froom the following sources :
(1) Recommendations for the promotion of particular employees.
(2) Requests from employees of the firm for promotion.
(3) General written applications from outside.
(4) Personal applications from outside.

INDUSTRIAL RELATIONS

(5) Applications received in accordance with information
which has appeared in the technical or daily press.
(6) Applications through public employment offices.
(7) Applications through employment offices of professional
or scientific organisations.
(8) Applications through high schools, universities, commercial high schools and technical schools.
(9) Applications in response to notification of vacancies
posted on the Works blackboards, or in accordance with
announcements appearing in the magazine of the Siemens
officials' association (Verein der Siemens-Beamten).
(10) Applications in response to advertisements in the daily
or technical press.
• All applicants are required to give particulars with regard
to their career and to attach copies of their certificates. They are
also required to fill up a very detailed questionnaire in their
own handwriting, giving information with regard to their previous training and experience. These questionnaires are then
carefully examined by the Salaried Employees' Employment
Office, and candidates who appear prima facie to be suitable for
employment are, as far as possible, interviewed personally. In
the year 1 October 1928 to 30 September 1929, over 25,000 applications for employment as salaried employees were registered
by the Salaried Employees' Employment Office and over 9,800
personal interviews were given to candidates. A carefully classified card-index is kept by the Bureau of the Industrial Relations
Department of all applications for employment.
A card
of special colour is used for applications which appear to be
particularly worth retaining. When the individual works require
salaried employees, they fill up and send in to the Salaried
Employees' Employment Office a requisition form indicating
in detail the grade of the employee required, the particular job
for which he is needed and the qualifications required. The
form used varies, with regard to contents and colour, according
to the main category of salaried employee concerned. On receipt
of the requisition form, the Salaried Employees' Employment
Office ascertains from its card-index the candidates which seem
most nearly to satisfy the needs of the work concerned, and the
candidate or candidates selected are then sent, with their, papers,
to the particular works making the requisition. The responsible

THE SIEMENS WORKS

officer in the works concerned decides whether the candidate is
satisfactory or not, and returns him to the Salaried Employees'
Employment Office, indicating on a special form whether he
wishes to employ the candidate concerned, and if not, the reasons
for his unsuitability. The criterion used in all cases of employment is solely the capacity of the applicant for the particular
job. If both the Central Office and the particular works are in
agreement as to the suitability for employment of a particular
man, he is medically examined. The medical examination is
strict. While the firm does not insist that only persons who
are 100 per cent, sound should be engaged, it considers that it
is essential for the efficiency of the work that men should be
physically adapted for the particular work on which they will
be employed. It further considers that it is a social duty to the
rest of the workpeople to avoid the employment of persons suffering from diseases such as tuberculosis and others which would
constitute a danger to the community of workers. If the candidate passes the medical examination, he is given a letter of
engagement by the Staff Branch of the Works concerned indicating the conditions of employment offered, the rate of pay, etc.,
with a copy of the rules of service governing his employment.
When the employee accepts employment, a personal file is
opened for him which contains room for the following particulars :
(1) Papers relating to engagement, such as questionnaires,
curriculum vitae, certificates, application, medical examination, and other correspondence in regard to engagement.
(2) Contract of service, letter of appointment, changes in
salary, promotions, leave, supplementary work, etc.
(3) Reports, including confidential reports, encomiums, bonuses, results of examinations, special duties, warnings, and
sanctions.
(4) Leave, sickness, medical reports, strikes.
(5) Advances and other forms of financial accommodation.
(6) Miscellaneous, including matters concerning insurance,
taxes, etc.
(7) Papers referring to separation, dismissal, resignation, pensions, and widows' allowances.
( ,
(8) Correspondence after separation, either with the particular salaried employee or with the firm to which he goes.

INDUSTRIAL RELATIONS

The personal file is kept in the Staff Branch of the particular
works in which the man is to be employed. Specially promising
applicants who cannot be placed in employment at once are
registered in a card-index in the Central Salaried Employees'
Employment Office. The cards used in this index are of five
colours, corresponding to the different main categories of salaried
employees. Red is used for electro-technical employees, blue for
machine construction and building construction, orange for
miscellaneous technical employees, such as physicists and
chemists, mining engineers, draughtsmen, laboratory assistants,
foremen, etc. A yellow card is used for male commercial
employees, and a white card for female commercial employees.
Each card is provided with ten tabs, each corresponding to a
sub-classification. The card index therefore makes it possible to
control the numbers and categories of persons employed in each
works in Greater Berlin—a total of some 20,000 salaried
employees and 35,000 workers.
Voluntary separation is rare. Salaried employees, once appointed, retain their employment if possible. A special feature of
the employment policy of the firm consists in emphasising the
desirability of long service. With a view to this, various
advantages are given to long service employees, details of which
will be indicated in the section of this report dealing with
welfare. In the meantime, however, the following table is of
interest as indicating the proportion of salaried employees in the
firm of various periods of service :
PERCENTAGE DISTRIBUTION OF SALARIED EMPLOYEES
ACCORDING TO LENGTH OF SERVICE 1
Year» of service

1st year
2 to 3 years
4 to 5
,»
6 to 10
>*
11 to 15
,»
16 to 20
,»
21 to 25
i»
26 to 30
»'
31 to 35
?»
36 to 40
,,
41 to 45
"
1

Men

Women

15.2
14.6
12.5
22.2

18.4
18.0
16.0
24.8
16.5

6.2

13.5

3.7
1.9
0.5
0.2

8.8
3.5
2.5
0.8
0.2

—
—

100

These statistics refer to male and female salaried employees employed in the works
at Siemensstadt. They do not include messengers.

THE SIEMENS

WORKS

The following table shows thé percentage distribution of
salaried employees according to age.
Age

Up to 20 years
21 to 25
"
26 to 30
"
31 to 35
"
36 to 40
"
41 to 45
'*
46 to 50
"
51 to 55
"
56 to 60
"
61 to 65
"
66 to 70
"

Men
Per ceni.

3.1
15.4
23.2
16.4
13.Ö
11.5
8.2
5.2
2.7
1.1
0.2
100

Women
Per cent.

15,2
29.3
22.8
14.9
8.6
4.8
2.9
1.0
0.4
0.1
—
100

It is provided by legislation (Kündigungsschutzgesetz of
9 July 1926) that a longer notice of termination of employment
must be given to all salaried employees over 25 years of age who
have been employed for at least five years in the same firm.
Salaried employees over 25 years of age who have been employed
by the same employer for five years must receive 3 months'
notice, for eight years 4 months' notice, for ten years 5 months'
notice, and for twelve years 6 months' notice. These provisions
do not, however, cancel certain provisions made for dismissal
without notice in previous legislation, for example, the Civil Code
(Bürgerliches Gesetzbuch) § 626, Commercial Code (Handelsgesetzbuch) §§ 70 et seq., the Industrial Ordinance (Gewerbeordnung) §§ 123, 124 and 133 b, and the Works Councils Act
(Betriebsrätegesetz) §§ 84-90.
If shortage of work in some particular works should involve
giving notice to salaried employees, every attempt is made to
secure employment for them in other works of the firm. If, in
spite of every effort to retain salaried employees in employment.
it should be found necessary, owing to slackness of business, to
make dismissals, the principles regulating such cases of dismissal are as far as possible agreed on with the Salaried
Employees' Council. Other things being equal, questions of
family charges are assigned great • weight in deciding on th;«
dismissals to be effected.
A considerable number of foreign salaried employees are in
employment at Siemensstadt. All arrangements in connection
with their passports, employment permits, etc., are made by the

INDUSTRIAL RELATIONS

Central Salaried Employees' Office.
Most of these foreign
salaried employees are Austrian, Czech and Hungarian, but a
certain proportion are from England, America, Russia and other
countries, in some cases people employed in associated firms
who come to Siemensstadt to secure additional experience. Some
600 foreign salaried employees were in employment at Siemensstadt in April 1930.
Wage-earning Workers
In explaining the employment procedure adopted at Siemensstadt for wage-earning workers, it will be possible to be relatively
brief, in view of the fact that, ceteris paribus, the procedure with
regard to salaried employees is generally similar to that regarding wage-earning workers. There are, however, a certain number
of differences which arise from the nature of the case. The main
difference is that the employment of wage-earning workers is
less highly centralised than that of salaried employees. This is
due in part to the much larger number of wage-earning workers,
and in part to the nature of their work.
Even in the case of wage-earning workers, however, the
degree of centralisation with regard to employment matters is
very considerable. The Industrial Relations Department, through
its Central Wage-earning Workers' Employment Office, is
responsible for (1) the general employment policy of the firm;
(2) employment exchange work within the firm; (3) keeping
of a central card index of all wage-earning workers employed in
the firm; and (4) the direct control of the employment of
disabled men. Each of these four functions of the Central Wageearning Workers' Employment Office requires some comment.
(1) The general provisions with regard to employment and
dismissal, in so far as they are not determined by legislation and
collective agreement, are subject to negotiation between the
management and the workers and are laid down in the Work
Regulations agreed upon between the management and the works
councils. Sections 3-4 of the Work Regulations deal with the
question of recruitment and sections 5-7 with the question of
dismissal. They indicate clearly the application of the legislative
provisions and contain various provisions particular to the firm,
for example, the provision that every wage-earning worker on

THE SIEMENS

WORKS

3.5

employment receives a copy of the Work Regulations which he
must sign as an indication that he is in agreement with their
application. Various particulars with regard to dismissal are also
laid down, for example, the provision that every worker, on separation from the firm, is obliged to return all tools, instructions,
work rules, passes and other articles and documents handed lo
him.
(2) In connection with general policy, the Central Employment Office is responsible for taking a general view of the needs
of the firm as a whole. It has a central clearing house for
employment within the firm. If in any individual works the
necessity arises, owing to a slackening of business, to lay off
workers, the employment office of the particular works is
obliged to send to the Central Wage-earning Workers' Employment Office a notification on a form of the number and
occupational classification of the workers whom it is proposed
to lay off. The Central Office is then responsible for attempting
to secure employment for these workers in any works which are
making new engagements. The general principle is that new
engagements from outside are not made unless no workers
already employed in the firm are available for transfer. The
Central Office is also responsible for attempting to secure
vocational adjustment of workers who appear to be good
workers but not entirely adapted to the work on which they are
actually placed.
(3) The Central Office is responsible for keeping a central
card index of all wage-earning workers employed in the
firm. Detailed particulars with regard to the worker are kept
in the individual works. The central index, however, makes it
possible centrally to trace any worker to his individual works.
(4) Finally, the Central Office is responsible for the employment of all disabled men. In accordance with the Act on disabled
men (Schwerbeschädigtengesetz)
of 12 January 1923, employers
are obliged for the first 20 to 69 workers employed to employ
at least one disabled man, with one additional disabled man for
each further 50 workers. The Central Employment Office is
responsible for seeing that the number of disabled men employed
in the firm does not fall below this quota. Disabled men enjoy
certain advantages with regard to conditions of employment..
In the first place, no disabled man can be dismissed without the
agreement of the Central Welfare Office. If the Central Welfare

I í í D U S T R I A L RELATIONS

Office decides in favour of dismissal, appeal may be made
against its decision to a disabled men's committee composed of
one impartial president, two disabled men and two employers.
The decision of this committee is final. Disabled men also enjoy
certain advantages with regard to annual holidays with pay.
They may obtain u p to six additional days. At the end of
February 1930, 1,257 disabled men were in employment at
Siemensstadt. Every endeavour is of course made to secure that
disabled men are employed on work on which it is possible for
them, without injury to their health, to undertake a normal day's
work. Disabled men suffering from shock, nerve troubles and
lung weakness are employed, as far as possible, in the open air
as caretakers, watchmen, messengers, etc. Disabled men suffering from disablement or amputation of the arm are employed
as messengers, liftmen and watchmen. It maj r be mentioned that
one man, both of whose arms were amputated, is employed as a
liftman in the headquarters office. Men suffering from disablement or amputation of the legs are employed on mechanical
work, such as inspection, in which it is possible to maintain
constantly a sitting posture. The employment of the blind gives
rise to special difficulties, but these have been overcome with
remarkable success, and over 100 blind men are in regular
employment at Siemensstadt, mostly On various forms of
machine work. Details with regard to the employment of the
blind have been specially issued by the firm in an illustrated
pamphlet.
Apart from the four respects in which the employment
of wage-earning workers is thus centralised in the Central Office,
responsibility for employment and dismissal of wage-earning
workers rests with the employment office in the individual
works. There are at Siemensstadt some twelve such employment offices. Any department in a particular works requiring
additional hands applies to the works employment office, which
has three main sources from which to draw. The first is the
Labour Exchange, with which the works employment office is
in telephonic communication. In general specialised and skilled
workers are engaged through the employment . exchanges.
In the second place, if the employment exchange cannot supply
the workers required, they may be obtained by advertisement in
thé press. The last source from which workers may be employed
is that of personal or written request for employment. A good

3Î

THE SIEMENS WOBK8

many requests for employment are received in this way from
friends of workers already in employment with the firm.
The works employment office makes all applicants for
employment fill up in their own handwriting a questionnaire
asking for details with regard to personal circumstances and previous experience. The works employment office may subject the
applicant to a simple practical examination adapted to the
particular kind of work for which the worker is destined,
intended to test, for example, eyesight, delicacy of touch, carefulness, etc. If the applicant is satisfactory on general grounds.
he is then sent to the foreman concerned for further technical
examination. If the foreman concerned is satisfied with ¡lieapplicant, he is then formally engaged by the employment office
in the particular works.
In certain cases, but by no means in all, it is considered
desirable that the applicant for work should pass a psychotechnical test. A special department is organised for this work.
Most of the activities of the department are carried on in connection with the training of apprentices, but in certain cases
applicants for employment are also required to pass these
psychological tests. The tests have been devised with much
ingenuity, and with every endeavour to render them practical
and to ensure that they are carried out with regard to actual
works conditions. For example, while candidates are passing
the tests they are subjected to various interruptions and loud
and unexpected noises of various kinds are produced.
Voluntary separations from the firms are rare, and workers
with a long record of service make up a large proportion of the
total employed. The following table shows the percentage
distribution of the wage-earning wTorkers in accordance witrt?
years of service :
Length oí service

Male
Per cent.

1st year
2nd .,
3rd to 5th „
6th to 10th „
11th to 15th „
16th to 20th „
2lst to 25th „
26^1 to 30th „
31st to 35th „
36th ,, and over

37.2
15.20.4
15.2
3.3
4.8
2.4
0.9
0.6
0.2
100

Female
Per cent.

41.1
17.8
23.8
12-.3
3.4
0.9
0.5
0.2

100

INDUSTRIAL RELATIONS

The following table is also of interest from the point of view
of employment, for it shows the percentage distribution of wageearning workers in accordance with age groups l :
Age group

ider 20 years
21-25
26-30
31-35
36-^0
41-45
46-50
51-55
56-60
61-65
66-70
71-75

„
„

.,
„

Male

Female

Fer cent.

Pe cent.

10.4
15.4
13.3
12.7
13.4
10.2
9.2
6.9
4.7
2.6
0.9
0.3

15.1
2-*.2
20.5
14.7
10.2
v 6.3
4.2.5
1.6
0.7
0.2

100

—

E D U C A T I O N , A P P R E N T I C E S H I P AND T R A I N I N G

Particular attention is devoted in the firm to questions of
education, training and apprenticeship. The firm retains a
strong conviction that while rationalisation and machine production have affected in many cases the position of the skilled
worker, yet industry still needs, and needs more intensely than
ever before, the highly skilled worker. It is true that industrial
dislocation has resulted from the development of mass production and the advent of the automatic machine. Certain groups
of skilled workers have been displaced and in some cases have
almost been eliminated. But the new methods in industrj' have
called for the development of higher skill than ever before in
certain categories of skilled workers. So long as a machine is
running it may be tended by unskilled workers, but the erecting
of the machine and its maintenance require technical knowledge
and* skill of a high order. Specialised craftsmen are required,
not only for the original setting up of the machines, but also for
their maintenance and for their repair. For such work in connection with the highly complicated machinery now used, a
specially skilled type of specialised worker is required.
Statistics prepared in the firm with regard to the percentage
1
Both these, tables refer to wage-earning woik^rs in the works in Greater
Berlin only. •

THE SIEMENS WOBKS

of skilled workers employed before the war and at the present
time show, as might be expected, that while in certain occupations the proportion of skilled workers has decreased, in highly
skilled occupations it has increased. For example, the percentage
of turners, which in 1907 was 4.3 per cent, of the total staff of
the firm, has now fallen to 3.5 per cent., and the number of
fitters which in 1907 was 2.5 per cent, of the staff, has now
fallen to 2 per cent. On the other hand, the percentage, of
machine erectors, which in 1907 was 1.7 per cent., has now risen
to 3.9 per cent, of the total staff, and the number of machine
tool makers, which in 1907 was 2.9 per cent., has now risen to
4.3 per cent, of the total staff. The conviction of the firm that
modernised industry will continue to call for the services of
highly skilled craftsmen explains the interest which is increasingly taken by the firm in the training of apprentices and the
continued vocational education of other categories of workers.

Apprentices
The systematic training of apprentices was begun in Siemens
and Halske in 1908, and in the Siemens-Schuckert Works in
1910. Since that date over a thousand apprentices have been
trained in the firm. Of this number 72.6 per cent, are at present
employed in the firm ; 53.5 per cent, of the total number have
been uninterruptedly employed by the firm, the remainder having
left the firm and then returned; 15.5 per-cent, of the total
number of apprentices have been appointed to the ranks of
works officials.
About 100 apprentices start their apprenticeship every year. The apprentices are carefully selected. There
are about eight times as many applicants as room is available
for.
Preference is given to sons of persons employed in Unworks, provided that their educational qualifications are satisfactory. The number of apprentices trained in particular crafls
varies in accordance with the anticipation of the firm of its
future needs and the further needs of the electrical industry in
general.
Thus, the proportion of apprentices who have been
trained to the total number of workpeople employed in tinfirm on particular crafts varies greatly in accordance with the
firm's estimate of the probable development of industry.
This
is clearly indicated in the following table :

I N D U S T R I A L RELATIONS

PROPORTION OF APPRENTICES TRAINED I N D I F F E R E N T CRAFTS

Number of
apprentices
trained

Proportion of number
of apprentices trained
to number of workpeople employed in the
finn

41.7

Mechanics

2,389

311

13.0

Tool makers

1,126

121

10.7

Fitters

3,329

261

7.8

Electro-fitters

1,095

4.1

Turners

949

3.1

Smiths

110

1.8

Ciait

Number of workpeople employed
in the firm

%
Moulders

Apprentices are trained in five apprentice schools in various.
works in the firms, both at Siemensstadt and elsewhere.
The apprentice course lasts in general for four years ; in
certain exceptional cases only, three years. In general the
first two years are spent by the apprentice in the apprentice
school in which he lays a sound foundation for his future crafL
The apprentice training is both theoretical and practical..
Theoretical work is carried on in classes under experienced;
masters, and practical work at the bench under the direction of
specially chosen craftsmen. The third and fourth years are
spent in the works and in the department in which the apprentice
is to become specialised. Here he is not simply allowed to
pick up Information as best he can, but he is placed under the
definite supervision of specially trained craftsmen.
The last
half year of the four-year course is spent by the apprentice
in the apprentice school, where he passes through a final revision
course with a view to the taking of his diploma. The careful
training given, together with the systematic and careful selection
of applicants, has resulted in the fact that remarkably high results
are achieved by the apprentice school in the final theoretical
and practical examinations which are conducted by un
independent outside body.
Apprentices who have shown themselves particularly ablemay. after having spent two years after their apprenticeship in

THE SIEMENS WORKS

the works of the firm as journeymen, receive a bursary enabling
them to attend a crafts school or higher technical institution.
All apprentices when they enter upon their course are informed
of the possibility of obtaining such bursaries. The Foundation
(Lehrlingsstiftung) was established in 1922. the date of the 75
years' anniversary of Siemens and Halske, and the number of
bursars has now reached 88, 21 of whom were appointed during
the last year. The bursary amounts to from 75 to 150 marks
per month, varying in accordance with the economic situation
of the bursar. The bursary may be held generally from two
to three years according to the school attended, and may be
extended to four years if the bursar is attending a technical
high school. The selection of bursars is made in accordance
with their capacities, but preference is given to the sons of workpeople employed in the firm. On the conclusion of study,
bursars generally return to the works as technicians or engineers :
there is, however, no obligation to return to the firm.
Engineers
The firm attaches importance not only to the training of
skilled craftsmen, but also to the training of engineers. Special
attention is therefore devoted to the training of youths who intend
to attend technical high schools and middle schools. At present
there are in training at Siemens and Halske, 57 high scJiool
and 111 middle school improver engineers, and in the SiemensSchuckert Works 54 high school and 59 middle school improver
engineers. In the case of high school improver engineers¡ their
practical training is divided into two half yearSj one of which
is passed in the apprentice workshops of the firm before the
beginning of the high school course, the other, after the passing
of the previous examination for a diploma, being devoted to
acquiring practical knowledge of the methods of the undertaking.
The training of middle-school improvers takes three years. It
resembles the training of apprentices, and includes everything
which touches upon practical knowledge of special occupations,
together with experience of the multiplicity of operations carried
on and a bird's eye view of the whole field of production.
Commercial. Apprentices
Special attention is also devoted to the training of commercial
apprentices, of whom there are at present 69 at Siemens and

INDUSTRIAL RELATIONS

Halske, a n d 67 in the Siemens-Schuckert works. Young people
to be accepted as commercial apprentices in the Siemens firms
must possess the diploma (Reifezeugnis)
of a gymnasium or
other secondary or high school. The period of training is three
years, the first three months of which constitute a probation.
The first two years are passed in the works at Siemenstadt,
a n d the last year in one of the sales branches. The object of
the training is to give these apprentices on the one hand a clear
knowledge of the various processes of production in the works,
a n d in the second place, a practical training in the commercial
activities of the sales departments of the firm.
Most of these
apprentices after the conclusion of their apprenticeship pass into
the employment of the firm in its commercial departments or
in technical bureaux as salaried employees.
Some of them,
after their apprenticeship, go to a commercial high school or
university and then return to the firm.
In such a case their
apprenticeship lasts two years—one before and one after the
high-school or university course.
Vocational

Training of Commercial

Employees

Specially capable commercial employees are selected i'or
intensive vocational training. Some 200 students are usually in
training at a time. They receive lectures .of a general educational
type, and also with regard to details of the work of the firm.
Seminar classes give instruction in smaller groups of 15 to 25.
T h e course also contains instruction in foreign languages. The
aim of this course is to give the highest possible training to
specially selected groups of commercial employees.
Vocational

Training of

Typists

Four years ago the special preliminary training of typists
was introduced in the firm. Now a large proportion of typists
on first engagement in the firm pass through a special course.
If they satisfactorily pass the examination at the end of this
course they go then to permanent employment in the various
departments. The course is partly technical and partly general.
The technical part includes training in the ten-finger system of
typing, with special attention to style and beauty of typescript.
Further, in order that the typists should understand the things
they are typing, they are taken through the works and shown
generators, transformers, cables, and telephonic and telegraphic

THE SIEMENS

WORKS

apparatus, etc. The principle is that if the typists are familiar
with the things whose names they are typing, they will take
a greater interest in their work, with resulting benefit both to
themselves and the firm.
Vocational

Education

Engineers

It was decided in 1922 to organise special vocational courses
for young diploma engineers.
Similar vocational training since
1925 has been given to graduates of technical craft schools. At
present 134 such engineers are under training in Siemens and
Halske, and 267 in the Siemens-Schuckert Works. The period
of vocational training lasts from two to three years. The. main
object of the course is to give these young engineers a wide
knowledge of the various departments of the firm.
An acute
problem in any great firm is that the specialist in some particular
department generally knows nothing of what is being done
in the next department.
It is desirable that this tendency to
too great specialisation should be corrected in the works
engineers, and every endeavour is therefore made by the firm
to ensure that its works engineers should obtain during this two
or three years' vocational course a wide knowledge of the various
processes of manufacture carried on in the various departments
of the firm.
Training of

Foremen

The firm recognises also that every endeavour must be made
to enable the foremen to keep up to dale, and to meet the
increasing supervisory responsibilities imposed by modern
industry.
Arrangements are therefore made in all the constituent works to provide for continuation courses and special
intensive courses for foremen. These courses include instruction
in the application of modern technical methods, not only in Ihr
Siemens firm, but in other firms in the electrical industry, and
also lectures with regard to questions of works control and
management, accident prevention, and so forth.
The purpose
of these courses is to enable the foreman to perform his task
with greater efficiency and with greater facility. It is recognised
that while modern methods of production have affected greatly
the position of the foreman in certain respects, he still remains
an essential element in the process of manufacture, and from

INDUSTRIAL RELATIONS

the point of view of industrial relations his importance is greater
than ever before.
A C C I D E N T S AND H E A L T H

Active collaboration takes place between the management and
the workers with a view to the prevention of accidents. This
collaboration is of three kinds.
(1) Collaboration takes place in accordance with legal provisions, notably those of the Works Councils Act, which provides that the Works Councils should collaborate with the
management with a view to the prevention of accidents.
An
Order of the Ministry of Commerce provides further for permanent contact between representatives of the workpeople and
the factory inspectors. Both these provisions are actively applied
at Siemensstadt. As an example of the interest taken by the
Works Councils in accident prevention, reference may be made
to a proclamation addressed to all workers by the United Works
Council. This proclamation begins : "Fellow workers ! Protect
your life, protect your health, help to prevent accidents.
The
Works Gouncils have the duty, in virtue of the Works Councils
Act, to combat accidents and dangers to health in the works.
They need your support and your help. Inform the members
of the Accidents Commission of even the slightest source of
danger. Make proposals yourselves for the improvement of the
safety measures in force. Be careful to observe the warnings
against accidents." In this spirit the various works councils
actively collaborate with the management of the various works
in securing the observance of safety provisions and in making
suggestions for improvements.
(2) In the second place, apart from legal provisions, voluntary
arrangements exist in the firm for active collaboration between
management and the workers. This collaboration takes place
both through meetings of the Accident Commissions and through
the issue of propaganda material. Workers are members of
the accident commissions set up in the firm, and it is their duty
to pay particular attention, in consultation with their fellow
workers, to improvements that may be introduced in the already
existing measures for avoiding accidents, and further to try to
secure an increased interest on the part of the workers themselves in the observation of the various regulations in force.

THE SIEMENS WORKS

From time to time special measures are adopted to stimulate
interest in accident prevention in the firm. One of these occasions is the German " Safety First Week "
(Reichsunfallverhütungswoche).
In connection with this week a special publication is issued by the firm with a message by Dr. Karl Friedrich
von Siemens, a message from the United Works Council, and a
series of articles illustrated with reproductions of posters giving
practical advice with a view to the prevention of accidents.
In the paper issued in February-March 1929, Dr. Karl Friedrich
von Siemens contributes the following foreword.
" Irreparable
damage to the health and strength of the people results daily
from accidents, many of which could be prevented by the observation of safety regulations. Everyone should help in the avoidance of accidents. In the field of accident prevention the cooperation of all employed in the Works is an urgent necessity."
With a view to encouraging interest and furthering collaboration
in accident prevention, prize competitibns have been organised
by the management.
The purpose of these prize competitions
is to stimulate interest in accident prevention among the workers.
The 1929 competition contained three parts : first, a competition
for the drafting of accident prevention posters, posters drawing
attention to the danger of accidents with special reference to
conditions in the Siemens Works. The second competition was
for the composition of a striking motto, in verse or in prose.
relating to the necessity and importance of accident prevention.
The third competition was for an essay on the question : " Howcan I stimulate the interest of my fellows workers in accident
prevention." For each oempetition five prizes were offered :
first prize, 250 M.; second prize, 100 M.; third to fifth prizes
50 M. each.
(3) Collaboration between management and workers takes
place, thirdly, through voluntary suggestions for improvements
in accident prevention measures made by individual workers to
the management of individual firms. Such voluntary suggestions
are welcomed by the management and put into operation whenever practicable.
Every endeavour is, in fact, made by the firm to reduce the
percentage of accidents.
Elaborate guards are provided for
machines, usually painted in red, and notices are prominently
displayed where there is a particular risk of accident. Wherever possible, overhead power transmission gear is dispensed

INDUSTRIAL RELATIONS

with, machines being directly electrically operated or having
their own motors. Special measures are taken to instruct new
workers in the dangers of accidents, because it has been found
that young and new workers are particularly liable to accidents.
In accordance with legislation, all accidents involving incapacity for work of more than three days must be officially notified.
In the case of the Siemens firm, notification of such accidents
must be made on a special form, in all cases in five copies,
of which two copies go to the local police authorities, two to
the appropriate section of the Insurance Company
(Berufsgenossenschaft der Feinmechanik
und Elektrotechnik),
and one
copy to the Industrial Relations Department of the firm.
Elaborate statistics are compiled on the basis of this information.
It is not necessary here to quote all the details of these statistics,
but the table on page 47 may be of general interest.
In order to bring home the necessity of special measures
being taken to instruct newly-engaged workers in the necessity
of accident prevention, careful statistics are also compiled showing the incidence of accidents in accordance with the duration
of employment of workers in the firm.
The following table
shows the proportion of accidents occurring to workers of various
periods of employment.

DISTRIBUTION OF ACCIDENTS ACCORDING TO DURATION OF EMPLOYMENT

Duration of
employment

Number of
workpeople

Percentage
of total

Number of
accidents

Percentage of
accidents

1 month
2 months
3 months

2,010
2,326
1,852

5.7
5.1
4.0

250
170
127

9.58
7.31
6.86

iBt to 3rd month
4th to 6th month
7th to 12th month

0,788
4,270
0,618

14.8
9.3
14.4

547
301
492

8.06
7.05
7.43

17,070
28,284

38.5
01.5

1,340
1,817

7.58
6.42

45,900

100.00

3,157

6.87

In 1st year
Over 1 year

It is clear from this table that the incidence of accidents is
greater in the case of newly-engaged workers than in the case
of those who have, been a considerable period with the firm.

THE SIEMENS

NUMBEK OF ACCIDENTS IN THE Y E A R

Occasion and source of the accident
I.
II.
III.

Miscellaneous
Boilers, etc.
Levers
Cranes
Lifts

Total
Motors of all kinds
Transmission gear
Electric current
Stamps
I Presses
] Other metal working machines
VII. Circular saws
J Other wood-working machines
1 Operating machines of other
'
kinds
Total
| Miscellaneous falls
I Falls from ladders
I Falls from stairs
VTU
' j Falls from above or to a lower
1 level
( Falls on the level
Total
1 Loading and unloading by hand
I Leverage
_ , ) Carrying loads
' \ Transport within the works
1 Railway transport
[ Water transport
Total
X . Tools and implements
{ Explosions
t Incendiary materials
„ . i Hot and acid liquids
* J Poisonous gasses and steam
f Damage to the eyes through
\
splinters
Total
Grand total of notified accidents
Total staff employed in the
works to which statistics
apply
Number of notified accidents per 100 workers
Experience shows that about
6 per cent, of notified
accidents give rise to
compensation for the first
time, in other words, the
number of such cases of
compensation paid is about
Percentage of workers comDensatcd
IV.
V.
VI.

WORKS

Total number
of accidents
notified
107
1
1
1
7
9

1928-1929

Percentage
of giand total
3.04

o.oa
0.03
0.03
0.20
0.26
—

10
24
12
116
275
55
9

0.28
0.68
0.34
3.80
7.82
1.56
0.26

52
519
46G
37
80

1.48
14.76
13.24
1.05
2.27

62
314
959
339
97
7
366
23
—
832
845
7
49
106
21

1.76
8.92
27.24
9.63
2.76
0.20
10.40
0.66

30
213

0.85
6.05

3,519

100%

45,960
7.66

211
I1..W

—

23.65
24.01
0.20
1.39
3.01
0.60

INDUSTRIAL RELATIONS

Efforts made to reduce accidents showed good results in the
last statistical period. ' The average number of accidents, including accidents not calling for notification in accordance with the
law, amounted, per 10,000 working days, to 2.72 in 1928-1929,
compared with 3.46 in 1927-1928. The number of accidents
calling for notification amounted, per 10,000 working days, to
2.48 in 1928-1929, compared with 2.90 in 1927-1928. The number
of accidents occurring on the way from and to the place of work
showed, however, an increase, the figures being 9.8 per cent, of
the grand total of accidents in 1928-1929 compared with 8.1 per
cent, in 1927-1928.
Statistics are also prepared showing the number and proportion of accidents occurring in each of the individual works.
These statistics, together with a graphical representation of them,
are circulated with a view to encouraging competition between
the individual works for the reduction of accidents.

In the matter of health also, collaboration takes place between
the management and the workers.
In the first place, as far as possible, endeavours are made
by the firm to prevent the engagement of workers suffering
from contagious diseases. As has previously been mentioned, a
medical examination is made of all salaried employees before
engagement. It has not yet been found possible to extend this
system to all workers, but this is being considered.
Once the worker has been engaged, every endeavour is made
to keep him in good health. The firm attaches particular importance to the cleanliness of the workshops and to matters
such as heating and ventilation. The removal of dust, sawdust,
etc., is undertaken by forced draught conduits. In some of
the works, in order to ensure satisfactory ventilation and at the
same time avoid draughts, special arrangements are made by
means of green and red electric lamps placed at easily visible
spots to indicate on which side, on a given date, windows should
be opened. Arrangements are also made for the complete aeration of rooms during the mid-day pauses. Special attention is
devoted, in the case of work-rooms where this is possible, to
the use of bright and warm colours, floral decorations, etc. The
works are constructed in the most modern way from the point
of view of light. Special attention is also devoted to the seating

THE SIEMENS WORKS

4»

of the workers and to comfort at the work bench. A special
award has been given to the Siemens firm in connection with
the " Sitz und Tisch " (seating and work-bench) exhibition
organised by the German Labour Protection Museum.
Individual lockers are provided for all workœople and full
facilities are provided for washing (hot water, baths, toilet
facilities, and so forth). In all the Works first-aid rooms are
installed, with qualified first-aid men in attendance. These
first-aid rooms deal not only with cases of accident, but also
with cases of illness, weakness, etc., taking place in the works.
With a view to the prevention of industrial diseases, dangerous
processes such as nickeling are performed by automatic machines,
all acids being moved and pumped by compressed air.
It is recognised that the collaboration of the workers themselves is necessary in the maintenance of health, and the Works
Councils actively co-operate in the preparation of posters and
in the preparation of articles on personal hygiene which appear
in the Siemens-Mitteilungen.
INSURANCE, WORKMEN'S COMPENSATION, PENSIONS AND OTHER
FINANCIAL BENEFITS

In the fields of insurance, workmen's compensation, pensions
and other benefits, a wide variety of systems is in operation
at Siemensstadt. These systems may be classified in two main
groups : (1) statutory systems ; (2) non-statutory systems ;
further distinguished into two sub-groups : (a) those administered by the firm entirely at its own expense, and (b) those
administered at the expense of the insured with financial and
other support from the firm.
Statutory Systems
The extensive system of compulsory social insurance in force
in Germany is of course applied in the Siemens firms. This
system includes workmen's compensation for accidents, unemployment insurance, invalidity insurance, sickness insurance and
salaried employees' insurance. The application of this State
system in the Siemens works calls for no special comment, except
in so far as the administration of the sickness insurance scheme
is concerned.

INDUSTRIAL RELATIONS

For the administration of sickness insurance a works sickness fund (Betriebskrankelikasse) has been constituted in the
Siemens firms, which is the largest industrial works sickness
fund in Germany. The administration of the" fund is almost
entirely in the hands of the workers themselves. Its committee
consists of one representative of the firm as chairman and 50
representatives of the insured. Of these 50 representatives, 44
belong to the free trade unions, 5 to the opposition trade unions
(K.P.D.) and one to the national trade unions. The board of
management of the fund consists of one representative of the
firm as chairman, and 6 representatives of the insured ; 5 of
these 6 representatives belong to the free trade unions and one
to the opposition (K.P.D.). The board of management is elected
by the committee. The representative of the firm is the Director
of the Industrial Relations Department.
The benefits provided by this fund, which is now in the
twenty-third year of its activity, go considerably beyond those
provided for by legislation.
Contributions amount to 7 V¡ per
cent, of the basic wage. A member of the fund who wishes to
obtain family benefits pays an additional flat rate of 5 pfennig
per day. Sickness benefit is paid at the rate of 50 per cent.
of the basic wage. Married men and other members having
dependants at their charge receive from the fourth week of sickness 60 per cent, of the basic wage. Medical attendance is
provided from the beginning of sickness. Benefit and attendance continue for 52 weeks. Pregnant women who have belonged
to the fund for at least six months receive benefit at the sickness
benefit rate for six weeks. During childbirth they receive
medical and nursing assistance, and maternity benefit at the
same rate as sickness benefit for a duration of ten weeks. If
they feed their infants themselves they receive 50 per cent, of
the sickness benefit for a period of twelve weeks. Death benefit
is paid at the rate of 40 times the basic wage with a minimum
of 50 RM. The family of members receives various benefits
for a period of 52 weeks. Other benefits are also paid. The
firm maintains convalescent homes at the seaside and in the
country, managed and controlled by the fund ; and special
measures are also taken to deal with pulmonary diseases.

T H E SIEMENS

Non-Statutory

WOBKS

Systems

A variety of non-statutory systems of insurance is administered either at the expense of the firm or at the expense of the
insured with participation of the firm. Into the first category
fall the following :
(1) All workpeople sent on the business of the firm abroad
are insured against accident and death.
(2) All workpeople sent on the business of the firm to other
parts of Germany are insured against accident due to any form
of transport.
(3) A system of four pension funds has been set up by the
firm. The operation of these pension funds goes back without
interruption to 1872. The four funds, the provisions of which
are generally similar, apply respectively to wage-earning workers,
Siemens and Halske ; wage-earning workers, Siemens-Schuckert
Works ; salaried employees, Siemens and Halske ; salaried employees, Siemens-Schuckert Works.
These funds are supported
entirely by the firm without any contribution from the workpeople. The pensions and other benefits are not paid in accordance with rates of pay or grades occupied by the workpeople
but in accordance with the needs of individuals.
There is one
exception to this general rule, which is that all those who have
been employed for 50 years with the firm receive as a pension
the full wage which they were earning on completing the fiftyyear period of service. The benefits paid include allowances
to wives and orphans, funeral benefits, Christmas benefits, christening and golden wedding gifts and so forth.
The benefits
paid by these pension funds do not take account of the benefits
that workpeople may be receiving under the various forms of
State insurance, with the exception that a pension is not paid to
a person receiving workmen's compensation benefit for accidents
at a higher rate than would give him, if added to compensation
benefit, 70 per cent, of the wage he was drawing at the time of
his accident.
Apart from these systems of insurance and pensions entirely
at the expense of the firms, the workers are also encouraged
to participate in various forms of group insurance additional to
State insurance :

INDUSTRIAL RELATIONS

(1) A group insurance system has been set up by the firm in
conjunction with a life insurance company, the Gerling Konzern.
This system provides life insurance benefits with a payment of
premiums 10 to 15 per cent, below those normally charged for
individual life insurance. The premiums paid under the special
Siemens tariff are from 3 to 5 per cent, lower than those paid
in other group insurance systems. These low premiums are
made possible partly owing to the fact that the company is able
to quote lower rates owing to <the group system and partly to a
subsidy from the Siemens firm. A variety of different life insurance systems is provided, and workpeople of the firm may
choose any one of these. The particular system having been
chosen, the contract is completed and the premiums are paid by
the firm through deduction from the wages or salaries. If the
particular workman or employee should leave the service of the
firm, he can continue his policy by making an individual agreement with the Gerling Konzern, continuing to pay, however, at
the group tariff rate.
(2) An arrangement has also been made by the Siemens firm
with another insurance company, the Allianz und Stüttgarterverein, to provide additional accident insurance.
As in the
previous case, lower rates than those normally charged are provided and a wide variety of different forms of insurance is open
to the individual workman. In this case also premiums are paid
by the firm through deduction from wages.
In addition to the statutory and non-statutory systems of
insurance and pensions described above, the firms have in
operation three schemes involving financial benefits to the workpeople, to which reference may conveniently be made at this
point.
\
End-of-Year Bonuses
The system of end-of-year bonuses in operation at Siemensstadt has a history which goes back to the middle of the last
century.
The system originated in the so-called stock-taking
bonuses paid to salaried employees and wage-earning workers
at Christmas. In the case of salaried employees, this bonus was
later transformed into a thirteenth-month pay in the form of a
Christmas bonus. The system was reorganised in 1926-1927,
with a return to the original character of profit-sharing.

THF. SIEMENS

WORKS

The principle of the present system is that when a dividend
of at least 6 per cent, is paid by the firm on its ordinary shares
the Supervisory Board decides on a proportion of the net profits
to be distributed among the workers. At first the workers
entitled to participate in profits were those having at least ten
years' service in the firm.
This qualification has now been
reduced to one of eight years. The bonus distributed varies from
60 to 200 RM., in accordance with the category of the worker.
The number of workpeople classified by categories participating
in the last bonus distribution, 1928-1929, was as follows :
176
1,249
6,416
4,442
3,379
15,662
23
9,671
88.8

master erectors and master representatives.
specially qualified workmen.
craftsmen.
other wage-earning workers.
women workers.
sum total of wage-earning workers (Germany).
per cent of total staff of wage-earning workers.
salaried employees.
per cent, of total staff of salaried employees.

Jubilee Gifts
All workpeople, on completing 25 years' service with the
firms, receive a jubilee gift. This gift varies from 400 to
1,200 RM,, in, accordance with grade. Up to the end of 1929,
about 6,084 workpeople in the Siemens firms, including the
Vienna works, had celebrated their 25th year's service jubilee.
The number of jubilee workers still in service in the firms on
30 September 1929 was 4,505.
Salaried Employees' Savings Scheme
In order to encourage saving, the firms have made an agreement with the Siemensstadt Savings Bank to facilitate the deposit
of savings in this bank by salaried employees of the firm.
Salaried employees may deposit sums in the savings bank
through the pay offices in the various works and receive receipts
for the sums deposited from the bank within two hours of
deposit. Interest is allowed on these savings accounts, at present
at the rate of 7 per cent.
WELFARE

The firms have always paid particular attention to the welfare of their staffs. Some of the welfare institutions have a

INDUSTRIAL RELATIONS

history which goes back for eighty years. The purpose of welfare schemes must always be related to the conditions of the
particular firm. Conditions at Siemensstadt, where the majority
of the workers live a long way from their work and cannot go
home at lunch time, have exercised a considerable influence on
the form assumed by some of its welfare institutions. Thus
particular attention is devoted to the provision of mess rooms.
Mess Rooms and Shops
In order to provide a hot midday meal for the workpeople,
mess rooms have been established in all the works. Special
rooms are provided for higher officials, salaried employees and
wage-earning workers respectively. In these mess rooms hot
mid-day meals are provided consisting in each case of one main
course with other subsidiary courses at the choice of the individual consumer. The main course always consists of meat of
some kind, with fish once a week, and potatoes and vegetables.
The meat portion consists of at least 100 grm. of meat, or
130 grm. of meat with bones. The charge for the main course
is, in the case of salaried employees, 55 Pf., and for wage-earning
workers 50 Pf. The subsidiary courses, soup, compote, salad,
fruit, coffee, cheese, etc., cost 10 to 20 Pf. each. Apprentices and
messenger boys receive the midday mèal free. The prices charged
to salaried employees and wage-earning workers are not sufficient to cover the costs, and the firm contributes about 45 Pf.
per meal in the case of salaried employees and about 30 Pf.
per meal in the case of wage-earning workers.
The administration of the mess rooms is, with one exception,
entirely in the hands of the firm. In this one exception, the
administration is undertaken by a committee of the workers,
with the assistance of the firm.
The wishes of the workers
are expressed either through special mess-room committees or
through the Works Council representatives.
The fact that the various mess rooms are in the particular
works makes it possible for the workpeople to reach them without delay during the midday meal hour.
In one works the
midday meal is brought in mess wagons to the work benches.
About 44 per cent, of the salaried employees and 18 per cent.
of the wage-earning workers regularly take their midday meal
in the mess rooms. The main reason for the fact that but a small

THE SIEMENS WORKS

proportion of the wage-earning workers take advantage of the
hot meals provided is to be found in the convention of the Berlin
worker to eat at midday a cold meal of bread and sausage.
That the explanation is to be found in this convention is suggested by the fact that in the Vienna works of the firm almost
100 per cent, of the staff eat in the mess rooms, although the
price of the meal in Vienna bears a slightly higher proportion
to the wage than it does in Berlin. The only alcoholic liquor
sold in the mess rooms is beer. If the workpeople prefer to
bring their midday meal with them from home, the firm provides hot closets in which the meal may be kept hot.
In addition to the mess rooms, special shops are maintained
by the firm in the works, at which various forms of foodstuffs
and household articles may be obtained. The workpeople do
not themselves come to buy in these shops, but give their orders
to special messengers, one of which is employed for each 200
-workers. These messengers are paid by the firm, and their sole
duty consists in taking the orders of the workpeople in the
particular works, fetching the goods from the shops and delivering them to the workpeople. The foodstuffs chiefly bought in
the shops are bread and sausage. About 80-90 per cent, of the
staff take advantage of the facilities afforded by these shops,
where goods are sold at 10 per cent, lower prices, on an average,
than they can be obtained elsewhere.
A central purchasing department is maintained by the firm
to buy for all the mess rooms and shops. In addition, a special
butcher's shop is managed by the firm which is responsible for
all slaughtering and also for the preparation of ham and sausage,
of which fifty different varieties are produced.
It may also be mentioned here that a bureau is maintained
for the sale to salaried employees of products of the Siemens
firm. Any such products may be obtained at a reduction of
.33 % per cent, of the normal prices.
Homes and Institutions
The firms, maintain their own convalescent homes on the
shores of the Baltic and in the Harz Mountains.
With the
assistance of the Works Sick Fund, the workers may go for.
four weeks, receiving free passage money, free board and lodging,
and the payment of pocket money, either, in the case of men,

INDUSTRIAL RELATIONS

to the convalescent home at Koserow, or, in the case of female
workers, to the home at Ahlbeck. The former has room for
120, and the latter for 90 inmates. In cases where a change
of air does not appear to be necessary, convalescent workers,
male and female, may be sent to a home in Siemensstadt itself,
The Siemens firm also possesses a holiday house, the SiemensEtterphaus at Bad Harzburg, with accommodation for 60 inmates, to which officials and salaried employees of .the firm may
go for their holidays at a nominal cost.
For workpeople affected with lung trouble, two medical treatment centres have been set up by the firms ; arrangements have
also been made with the lung establishment at Belzig, which
has accommodation for 180 patients. An agreement has also
been made by the firms with the Paulinenhaus Hospital, according to which preferential treatment is accorded to workpeople
of the firms and members of their families.
In cases where the wives of workpeople are sick, the firm
assumes, in whole or in part, the expense of domestic help in
the household concerned. A children's home is maintained in
Siemensstadt, to which women working in the firms may bring
their children in the morning and leave them during the day
until they are ready to take them away in the evening. In some
cases fresh clothing is given to the children. With the Children's
Home is associated an Infant Welfare Centre, in which free
medical advice is given to mothers and expectant mothers.
In the school at Siemensstadt, a school nurse is maintained
by the firms. In cases where children require change of air,
they are sent, almost exclusively at the expense of the firms,
to the Siemens Eleonorenheim, Neuhof, near Häringsdorf on the
Baltic. Over 800 children in the course of the summer are sent
to this home.
An Apprentices' Institute is also maintained, with gymnasium,
reading-room, hobby rooms, etc., for the use of the Siemens
apprentices after the hours of work.
Library and Magazine
The firms maintain a works
which is at the free disposal of
earning workers. Most of the
literature. Technical matter is

library of about 33,000 volumes,
salaried employees and of wagevolumes are volumes of general
not included in this library, but

THE SIEMENS WORKS

in the special technical libraries of the particular works.
A remarkable feature of this library is the wide use made of it.
In the year 1928-1929, 400,000 books were lent ; about half of
these were loaned to salaried employees and half to wage-earning
workers. The number of books loaned has quintupled since
1914-1915.
The workers are not required io come to the works library
to borrow or return books.
Printed catalogues are available
in the various works, and requests for books may be made out
m the individual works and forwarded to the works library.
The books are then delivered by members of the library staff
to the works and obtained there by the workers.
The ease
with which it is possible to obtain books on loan is undoubtedly
one of the reasons why the library is so largely utilised.
A special section of the library, containing some 3,000
volumes, has been established with a special view to the needs
and desires of the apprentices in the Siemens Works.
In connection with the works library and under the direction
of the division of the Industrial Relations Department devoted
to its management, there is a section responsible for the organisation of general lectures, film representations, concerts and
theatrical performances of special interest to the workpeople.
A* Works Magazine, the Siemens-Mitteilungen, richly illustrated, gives information with regard to the Siemens firms and
also contains articles of a general kind. The number for 1 March
I 1930, for example, contains a general accouni with illustrations
of the various Works, with an indication of their principal products. A further article deals with the various loans contracted
by the Siemens firms. One page contains ihe photographs of
some of the jubilee workers ; another page a list of worker»
whose death has been announced. The Magazine also contains
short notes with regard to new accessions of books in the works
library and notes with regard to new products of the firm. One
or two comic pages and some articles of general interest are"
also included. This Magazine is posted free to the homes of
all the workers, and is not distributed in the .works.
Clubs
The various Clubs of the employees of the firms are associated
in the Association of Siemens Employees (Verband der Siemens-

INDUSTRIAL RELATIONS

Beamten).
Some 7,000 salaried employees of the firm belong
to this association. The firms supply free accommodation, free
secretariat, and thus cover nearly 20 per cent, of the operation
expenses of the Association.
The other expenses are covered
By membership fees, which vary from 3 RM. to 25 RM. per
annum. The associated clubs include associations for the following activities : wireless, gardening, swimming, tennis, foreign
language conversation, rowing, photography,
stenography,
orchestral and choral music, rhythmic gymnastics, philately,
chess, shooting, glee singing. In addition, the Association maintains a welfare branch, providing friendly benefits in case of
death.
It also possesses a domestic economy branch, which
provides for its members certain advantages in lower prices of
goods of common consumption. The Association also maintains
a shop of its own in which some such goods may be obtained.
A magazine, the Nachrichten des Vereins der
Siemens-Beamten,
is also issued. This magazine, which accepts advertisements,
contains information with regard to the activities of all the constituent clubs and also a certain number of general articles.
There are also in connection with the firms a Foremen's Club
a n d an Apprentices' Club, the Werner Siemens
Jugendoerein.

Housing
With a view to meeting the need for housing at Siemensstadt,
the firms undertook in 1922 the construction of a Garden City.
In this Garden City some 500 dwellings have now been erected.
Some of them are flats, others individual houses. Every house
has a large garden attached to it. In the case of the flats there
is a communal garden. The number of rooms per fiai or house
varies from two to five.
Two other garden cities have also
been constructed at Siemensstadt by independent companies with
loans provided by the firms. Each of these two other garden
cities contains approximately 500 dwellings. The total number
of dwellings in the Siemensstadt garden cities, therefore, amounts
to about 1,500. These houses are all of the most modern con* struction, with electric light and, in many cases, electric heating
and cooking installations.
The firms have also been concerned with the provision of
churches. Owing to the growth of Sieniensstadt. an evangelical

THE SIEMENS

WORKS

church became necessary ; this is at present being built, in connection with a large new town-hall.
In the immediate neighbourhood of the Works temporary
dwelling accommodation has been constructed by the firm for
the housing of unmarried workers, usually specialists in some
craft, who come to Siemensstadt to work in the firm, to accommodate them until they can find permanent quarters.
A part of the grounds in the neighbourhood of the Garden
City has been set aside by the firm as allotments, and workers
not living at Siemensstadt are granted allotments in this area.
The firm also maintains a nursery from which plants and seeds
may be obtained at a low cost by the workers, either for planting
in their allotments at Siemensstadt or elsewhere.

COST O F S O M E I N D U S T R I A L
RELATIONSHIP

R E L A T I O N S SERVICES

TO S T A T E AND P R I V A T E

AND

WELFARE

ORGANISATIONS

The following, figures indicate the cost to the Siemens firms
of some of its industrial relations and welfare work.
These
figures refer to the annual outlay.
(1) Social

Charges Imposed

Legislation
RM.

Salaried Employees' Insuraiice
Invalidity Insurance
Sickness Insurance
Unemployment Insurance
Accident Insurance
Other social outlays outside Germany

2,042,000
3,114,000
4,644,000
3,291,000
1,825,000
1,198,000

Total :
(2)

Voluntary

Social

16,114,000

Charges

assistance.
.aurants for workers and ennploycts

Provision of Rest Homes.
Own homes and contributions to institutions
Care of Children and Young Persons.
Welfare centres, children's homes, school treatment,
apprentices' homes, dietary care
Hygiene.
Sport facilities, bath establishments, lung treatment, firstaid services

RM.

1,272,500

300,000

• 587,000
480,000

«o

INDUSTRIAL RELATIONS

General Culture and Recreation.
Works library, educational facilities, lectures, etc.''

199,000

Relief.
Various benefits, payment in addition to statutory sick
benefit, relief of persons excluded from pensions,
widows' pensions, jubilee gifts

1,603,000

Pensions.
Pensions and widows' support, etc.

6,221,000

Household and Dwellings Assistance.
Factory and home care

171,500

INDUSTRIAL SOCIAL POLICY I N CONNECTION WITH THE NON-INDUSTRIAL
SOCIAL A N D PUBLIC A N D PRIVATE WELFARE INSTITUTIONS, WITH
SPECIAL R E F E R E N C E TO CONDITIONS IN GREATER B E R L I N

Department

. /.

Company institutions and participation
in non-company institutions

Social and public and private
welfare institutions

Preventive health
work. .
1. Construction of Siemensstadt Housing Estate Berlin municipal hout !ng
offices.
Company.
houses and laying out of Small gardens in Siemensstadt.
gardens.
Siemensstadt sports ground.
2. Sport.
Siemenswerder b. Spandau aquatic sports establishment.
Workers' rest home in Koserow
3. Rest homes.
and Eschenbach.
Women workers' rest home in
Ahlbeck.
Women workers' rest home in
Siemensstadt.
Employees' holiday home in
Harzburg.
Commercial and industrial workers' holiday home.
4. Dietary assist- Restaurants for workers and
employees.
ance.
Provision of milk during working
hours.
Factory inspectorates.
/ / . Industrial hygiene Bath houses.
Mutual insurance association
and accident Casualty stations.
for the electrical engineerprevention.
First aid service.
ing and precision instruTransport of the sick.
ment industry.
Pauline Hospital.
Steam Boiler Inspection Association.
The German Society for
Industrial Hygiene.
Institutes for the care of
Works sick funds.
III. Medical aid.
consumptives.
Pauline Hospital.
Associations for home treatFactory, treatment.
ment.
Rest homes.
Medical aid foundation.
Communal treatment.
Emergency funds.
Berlin municipal welfare offices.
German Red Cross.

THE SIEMENS WORKS

INDUSTRIAL SOCIAL POLICY

(continued)

Department

Company institutions and participation
in non-company institutions

Social and public and private
welfare institutions

1V. Care of the disabled.

Medical specialists (especially
pulmonary).
Factory treatment.
Medical aid foundation.
Emergency funds.
Employment agencies.
Pension funds.
Welfare centre for infants and
young children.
School treatment.
Factory treatment.
Siemensstadt children's home.
Children's rest home at Neuhof.
Dietary care of young persons.
Apprentices' home and sports.

Central Institute for the Care
of Disabled Soldiers.

V. Care of children and
young persons.

VI.

Consumers' assistance.
VII. Provision for old
age.

Federal Institute for Combating Infant mortality.
Berlin municipal offices for
the welfare of young persons.
Advisory educational council
for orphans who have left
school.

Premises for the sale of provisions
Supply of coal.
Pension funds.
State insurance institution.
Jubilee Gifts.
Federal insurance institution
Emergency funds.
for employees.
Works sick fund.
Welfare offices.
Savings bank.

VIII. Educational work.
I. General, not Works library.
Art and lecture evenings.
technical ;
Siemens' bulletins.
Encouragement of workers' associations.
2. Technical : pri- Apprentices.
Clerical workers.
mary ;
Typing staff.
Salesmen.
Engineers.
continuation.
Salesmen.
Administration officials.
Foremen.

German Association for
Technical Education.

CONCLUSION

The working of industrial relations a t Siemensstadt is the
resultant of the operation of two factors which are often considered to be inconsistent : in the first place, the thorough-going
application of the principles of scientific method to all industrial
relationships ; and in the second place, the development of
essentially personal relations between the head of Ihe firm and
his workpeople, on the basis of an old tradition of family con-

INDUSTRIAL RELATIONS

tacts. The mere framework of industrial relations is, indeed,
the same at Siemensstadt as in all other German firms, for it is
constituted by legislation and collective agreement. The particular significance of Siemensstadt resides in the fact that it
represents the filling in of this framework on the largest scale
and in the most complete manner. The organisation of industrial relations in the Siemens firms has been carried to a very
high pitch of efficiency. The industrial relations policy of the
firms is very completely centralised in the Industrial Relations
Department, and the application of the policy is loyally and
effectively carried out in the works, where every detail is in
charge of some highly qualified official.
On the side of the
workers, the fact that a large number of works council representatives devote their whole time to questions of industrial
relations would appear to ensure that the interests and desires
of the workpeople can be centralised,' systematised and discussed
with the representatives of the management with the fullest
possible recognition of. principles and attention to details.
It would, however, be possible for such a system, however admirably organised, to be merely formal, failing to produce fruitful
results in improved relations and closer collaboration. At Siemensstadt any danger of this kind would appear to have been
effectually removed by the deep personal interest taken in industrial relations by the head of the firm, Dr. Karl Friedrich von
Siemens, and the inspiration of his personal example. Siemensstadt is undoubtedly a remarkable example, in a firm of the
largest size, of the maintenance of direct personal relations
between management and the workers side by side with and
in addition to the relations through representation provided for
by the works councils and otherwise. It is a striking illustration
of the view that the application of legal machinery for ensuring
industrial relations is not inconsistent with the retention and
even the development of freer and less formal contacts between.
management and the workers.

THE LENS MININO COMPANY

The Lens Mining Company, instituted as a private company
in 1852 and transformed into a joint stock company in August
152O, obtained on 15 January 1853 the perpetual concession
for mining work in the district of Lens, Douvrin and Meurchih.
This concession lies in the North of France, practically equidistant from Arras, the capital of the Departement du Pas-deCalais, and Lille, the capital of the Département du Nord. It is
situated about one-third of the way along from the Western end
of the mining basin of the North of France, which extends into
Belgium, past Mons, Namur and Liege, and then, with several
breaks, into the Ruhr area. Taking the geographical distinction
of the surface of coalfields of the Nord, the Pas-de-Calais and
Anzin, it belongs to the Pas-de-Calais coalfields.
The Lens
concession is bordered on the South by that of Liévin, on the
West by that of Béthune, and on the East by that of Courrières.
It includes the 'town of Lens and the village of Loos in the
Southern part, and the villages of Pont-à-Vendin, Vendin-le-Vieil,
Wingles, Meurchin and Douvrin in the Northern part.

THE

DESTRUCTION
FROM

1914

OF THE
1918,

MINES
AND

DURING T H E

THEIR

HOSTILITIES

RECONSTRUCTION

The Lens Mining Company, which was already one of the
most important before the war, not only was forced to cease
work, but had its mines completely destroyed during the hostilities. To-day, scarcely a trace of this destruction remains, and
one can only admire the patient and determined effort which
has been required to remove the last traces of the terrible struggle
which took place for four years in the immediate neighbourhood,
and even on the ground of the concession itself.

INDUSTRIAI. RELATIONS

A quotation may be given from an article by Mr. Ernest
Cuvelette, General Manager of the Lens Mining Company ' :
At the Armistice, nothing remained but a heap of ruins. The whole
concession, like the neighbouring concession at Liévin, had been
destroyed, and the ground ploughed up by shells ; in the outskirts of
the town and in the surrounding districts among the trenches of Hill 70,
where the struggle was particularly fierce, the shell-holes were touching
each other.
The work that had to be done by way of reconstruction can be
shown by a few very expressive figures :
All the shafts had been blown up ;
23 pits entirely destroyed ;
No roads and no railways ;
8,000 houses to be cleared and re-built.
40 million cubic metres of water to be drained.
600 kilometres of underground rails to be re-laid.
A few months after the Armistice the work of reconstruction
began, and in May 1919 the railway from Lens to Violaines,
which is the main artery of the concession, was open for traffic.
In July 1919 the work of clearing the debris was begun by
large undertakings, a considerable network for power supply was
constructed, provisional underpinning had to be erected in the old
shafts, and, finally, on 2 November 1920, pumping operations
began.
In 1924, when the similar mines in the coalfield of the Nord
had reached their pre-war production, the pits in the Pas-deCalais were still 20 per cent, short of this figure. Of the latter,
Lens was the last to be reconstructed, because the devastation
in that area, which had seen so many struggles, was unprecedented in history.
The Lens Mining Company has now reached its pre-war output, the last pit which had to be reconstructed having been
opened on 1 March 1930. Ten years of work and a sum of
over 1,250,000,000 francs (French currency) will have been
required to achieve this.
PRESENT

POSITION

THE

COMPANY

The Lens Mining Company has a capital of 225 millions,
held by 40,000 to 50,000 shareholders, and employs 20,000 workers in the undertakings which it manages directly, including
1
" L'Etat actuel de la reconstruction des mines de Lens ", Bulletin de la Société
d'encouragement pour rindustrie nationale, May 1925. Paris.

THE

LENS

MINING

COMPAQ-

14,000 engaged in underground work. According to law, women
cannot be employed except on surface work, but the rules of
the Company are still more restrictive, since no married women
are employed. Even the number of girls is small, being only
935. The number of young persons from 13 to 16 years of age
is 916, and the number of those from 16 to 18 years, 948.
It may be added that the total number of salaried employees,
including overseers, is 616, of whom 58 are engineers.
The following undertakings are directly managed by the
Company :
(1) For coal-getting.
This is done in 17 pits, with a total
output of 14,500 tons per day, and 4,400,000 tons per year. 1
Of these 17 pits, 11 are near Lens and produce rich coal, while
the other pits are in the Northern district and give poor coal.
(2) Ancillary undertakings.
These are : a power station
at Pont-à-Vendin, providing electricity for the whole concession ;
coke furnaces in the same district, which take 40 per cent, of
the output from the pits ; a factory for synthetic ammonia, also
at Pont-à-Vendin ; a factory for calcium carbide and cyanamide
at Wingles ; a factory for refining copper by electrolysis, and
central repair workshops, also situated at Wingles. Two factories for briquettes, and similar preparations, situated at Meurchin and Douvrin respectively, complete the list of ancillary
undertakings directly managed by the Company.
It is interesting to note that the Lens Mining Company also
holds shares in the following undertakings :
(1) The Ammonia Company, whose factories at Wingles transform
synthetic ammonia into nitric acid.
(2) A company for producing oil, tar, and their derivatives, with
factories to the North-East of Lens.
(8) The Lens Financial and Industrial Company, recently set
up for the manufacture of chemical manure, whose budding
is at present being constructed at Douvrin. This latter company is, indeed, a branch of the Lens Mining Company, and
has the same Board of Directors.
Finally, the Company has a less important share in the
following undertakings in the district :
(1) The Franco-Belgian Company for the manufacture of glass
by machinery (factories at Wingles).
1
The average output in the Pas-de-Calais coalfield is 975 kilograms per worker
per day.

INDUSTRIAL RELATIONS

(2) A joint stock company for explosives and chemical products
(factories at Bauvin).
(3) A company for fireproof and pottery goods (factories at
Douvnn).
The various undertakings are connected by a railway of a
total length of 375 kilometres. In particular, all the pits are
connected by railway with Pont-à-Vendin and Meurchin, where
the coal is washed, since the pits themselves merely sort the coal.
All the factories are also connected with the electric power station
at Pont-à-Vendin.
INTERNAL

ORGANISATION

Central

Organisation

The Lens Mining Company has offices both in Paris and near
the mines.
The financial policy of the Company is settled
chiefly in Paris under the supervision of the General Manager
of the Company. The offices at Lens are under a Manager who
is permanently stationed there. The services are divided into
various groups, each under the orders of a chief engineer : underground service, surface service, materials branch, electric service,
commercial and central services.
The central services, which are of special interest from the
point of view of industrial relations, deal with questions of
staff, accounts, litigation and supplies for the different units.
The various activities and institutions of the Company on behalf
of its staff are attached to the central services : education and
physical educational work, workers' gardens, co-operative stores,
etc. These services also control, either directly or, as will be seen
later, through the various pits, the hygiene and social welfare
work of the Company. The staff branch has 17 employees in
the central offices at Lens, and 22 distributed through the
workers' villages, which will be described later. It deals with
the hiring of workers, the accident fund, the pensions fund, and
general questions concerning workers' housing, which it supervises.
Organisation

of the Pits

A complete study of the internal organisation of each of
the undertakings controlled by the Lens Mining Company would

THE

LKNS

MINING

COMPANY

make this article too long. Since its chief activity is coal-mining,
it will suffice to describe the organisation of the pits.
The 17 pits owned by the Company 1 are each under the
orders of an engineer.
He has two classes of persons under
his orders : the underground workers and the surface workers.
The surface staff is very small, consisting of an accountant, with
three or four assistants, machine men, wagon tippers and coal
sorters.
The underground workers are under the orders of a chief
overseer, known as the chief overman, or principal chief overman, the latter being a higher rank granted by the Company
to chief overmen "who satisfy certain conditions of age and
seniority.
In order to make clear the various duties in the
pits, it will be well to explain briefly the organisation of the
work of coal-getting. Even before the War, the Lens Mining
Company had adopted the system of coal-hewing by a single
shift, while all the supplementary work (with a few exceptions,
such as the timbering of galleries which were being extended)
was entrusted to another shift which began work after the first
had stopped. The Company believed, and still believes, that it
is desirable to keep the two tasks entirely separate, and that
the hewers work more enthusiastically and with more sense of
responsibility -when they resume the work at the point where
they left off on the preceding day, while the work of clearing and
repairing the galleries, adits, etc., is accomplished in the interval.
In short, they feel more clearly that the section of the seam on
which they are working is " their job " from the moment the
gallery is opened until it is exhausted. The work is therefore
better performed, and there is less risk of accident.
It was only during the years immediately following the War
that the Company was forced to give up this method and introduce the two-shift system for hewers. When working conditions again became normal, it immediately returned to its old
habits. Work begins in the mine at 5.30 a.m. and continues
with the two successive shifts until 9.30 p.m. The only persons
remaining in the mine at night are a few watchmen and workers
looking after the horses which are used for the haulage of the
trucks where electric haulage has not yet been introduced.
It
may be added that all mining companies of the North of France

Each pit has two shafts : une for coal-gétting and the other for ventilation.

INDUSTRIAL RELATIONS

do not adopt this method.
Others, such as the neighbouring
mines at Bruay and Liévin, use two shifts for hewing.
The system of distribution of the work between the shifts
is comparatively simple, being as follows :
(1) The hewers are distributed over districts, each corresponding to a gallery or working face. They are classified as
skilled miners or as ordinary miners, who. in turn, are subdivided
into three classes according to their occupational capacity. The
number of men in each district varies according to the size of
the working face, but each group is under the direct orders of
the chief hewer. The latter is a miner, like the others, receiving
the same rates of pay as skilled miners, but accepting the
responsibility of directing the work of his comrades. He is
granted certain allowances in kind, wrhich will be mentioned later.
He has also the possibility of rising to the post of overman. The
chief hewers are appointed by the engineer in charge of the pit.
at the suggestion of the chief overman.
A certain number of districts taken together form a party,
under the orders of an overman. The overmen themselves are
under the supervision of the chief overman. This system is the
general rule in mines. In the Lens pits there are four or five
parties.
(2) The workers of the second shift are distributed into units
corresponding to the districts. These units are grouped under
the orders of overseers corresponding to the overmen, and these,
in turn, are under the supervision of a chief overseer for the
whole pit.
The overseer receives the necessary instructions from the
overman as to the work which will have to be done when the
first shift leaves. From the moment at which the shift for supplementary work begins work, it is under the orders of the chief
overseer. He, in turn, is subordinate to the chief overman, to
whom he must report on the work performed. The chief overman then gives his instructions to the overmen for the following
day. This completes the cycle, and does away with any necessity
for the direct intervention of the engineer of the pit so long as the
work progresses normally. The small number of workers employed at night as watchmen and attending to the horses are
under the supervision of an overseer, who is directly responsible
to the chief overman.

THE

LENS

Organisation

MINING

COMPANY

of Workers'

Villages

When the Lens Mining Concession began work the district
was sparsely inhabited and it was therefore necessary Io set up
complete workers' villages and to meet all the needs of thoso
who would inhabit them. These villages are chiefly in the
Southern section, in the proportion of one village to each pit,
under the supervision of the engineer of the pit, assisted by an
attendant who is under the orders of the chief of the Staff Branch
in the Central Administration. There are thirteen such villages
altogether.
In addition to the workers' villages there are what aré known
as " centres ". The centre includes all the health and social
institutions necessary or desirable in the villages. There is not
necessarily one centre for each village. In some cases the system
of one centre for two villages has been adopted. In this case
the management of the centre is entrusted to the engineer of the
nearest pit.
There is no need to enter here into details of the organisation
of the centres, which wilL be- described at length in the section
dealing with the conditions of life of the workers of the Lens
Mining Company. It may be well to point out that the complete
centre includes :
a dispensary with a doctor and three or four nurses (sisters
of charity) ;
a church with a spaerai organisation for the children ;
an infant school ;
a boys' school ;
a girls' school ;
a school for housekeeping and sewing ;
- a dressmaking workshop ;
a workers' club and one or more sports clubs ;
a branch of the Distributive Co-operative Society of the Lens
Mines.

THE

MECHANISM

INDUSTRIAL

RELATIONS

In the Lens Mines, as in the mines of other French coalfields. there is a threefold system of industrial relations : in the
pits (or ancillary undertakings), in the company and in district

INDUSTRIAL RELATIONS

agreements. The most striking characteristic is the traditional
spirit of co-operation and mutual assistance. The special conditions of life of the underground workers and the sense of
danger aroused by the thought of millions of cubic metres separatjng the worker from the open air, as well as the other dangers,
which are still real, although fortunately less frequent, of falling
earth, fire and explosions, create a spirit of fraternity which it
would be difficult to find to the same extent in other industries.
The first stage of industrial relations is those in the pit. 1 It
may be thought that this term is somewhat exaggerated in speaking of the relationships between miners and their chief hewers,
overmen and chief overman, or between them and their overseers
and chief overseer, or with the engineer of the pit. The miners
themselves would be the first to express surprise if their conversations and discussions were thus described, for it cannot be too
strongly stressed that the whole proceedings are of a family or
at least of a friendly nature. They are nevertheless the basis of
the system, which is strengthened more by tradition and by the
natural accumulation of customs than by the application of any
definite plan. The details of the system- will be described in the
chapter dealing with the working of industrial relations. At
present it may be noted that the chief question dealt with is
that oT wages, and especially the fixing of task rates. In general
an agreement is arrived at. If not, the questions are brought
before *the second instance, which is the management of the
undertaking.
It is here that the trade unions and the workers' safety delegates take action. These safety delegates are provided for by
legislation (sections 120 to 157 of Book II of the Labour Code).
They generally act at the same time as the workers' representatives on trade union questions in the pit in which they exercise
their functions.
In order to facilitate contact between the workers and the
management of the mining undertakings, that is, industrial rela-

l
Or in the ancillary undertaking. Generally speaking this study refers only
rto the pits. All the provisions concerning pits are in principle applied in the ancillary
undertakings, and the workers in the latter are included in the term " surface
workers ". The surface workers are not mentioned except when special provisions
exist for them. In the group of surface workers, those employed in ancillary undertakings are mentioned only when a separate system is applied to them differing
from that for surface workers as a whole. The same is true in the case of salaried
employees.

THE LENS MINING COMPANY

lions, the miners' unions * have provided a central organisation
of trade union sections in each undertaking, known as the Federation of Trade Union Sections of, say, the Lens Mining Company. This Federation acts side by side with the actual trade
union and remains in close touch with it.
All the workers employed by the mining companies of the
Northern French coalfields are organised (if they so desire) in
the trade union of miners of the geographical area in which the
company is situated : the Miners' Union of the Pas-de-Calais, the
Miners' Union of the Nord, the Miners' Union of Anzin. The
trade union consists of all the trade union sections taken together,
there being one or two sections in each workers' or other village :
generally one section for underground workers and one for surface workers, with a subsection for foreign workers in each case
if required. Consequently, all the trade union sections of the
workers in the undertakings controlled by the Lens Mining Company are affiliated to the Miners' Trade Union of the Pas-deCalais. They are at the same time members of the Federation
of Trade Union Sections of the Lens Mining Company.
It is the Federation of Trade Union Sections which takes
action in the second stage of industrial relations. In the Lens
Mining Company a meeting is held approximately every three
months between the Manager, the chief engineers and the representatives of the Federation. The latter draw up a memorandum,
which is communicated to the Manager before the meeting, stating all the claims which have not been given satisfaction in
the first stage of industrial relations. These may be questions
concerning task rates which have not been settled by discussion
between miners, overmen, the chief overman and the engineer
in the pit ; there may again be demands concerning the hygienic
conditions of the workplaces or of the dwellings. Questions concerning safety are mostly dealt with in special memoranda submitted to the manager by the workers' safety delegates. The most

1
The reference here is to the trade unions of miners affiliated to the General
Confederation of Labour (also known as reformist trade unions). The General
Confederation of Labour covers the majority of the miners who belong to unions
in the Northern French coalñeld. As far as the Lens Mines are concerned, all the
miners who belong to unions are affiliated to the General Confederation of Labour.
By way of information it may be mentioned that there are about 100,000 miners
in the Pas-de-Calais coalfield, 30,000 in the Nord coalfield, and 20,000 in Anzin.
Of these the trade unions of miners affiliated to the General Confederation of
Labour have a membership of 36,000 in the Pas-de-Calais coalfield, 7,000 in the
North and 6,500 in Anzin.

INDUSTRIAL RELATIONS

recent list of claims received by the Management will be found in
Appendix I. * Certain of its requests will not be perfectly clear
to the reader until he has read the information given in the
following section, but the text as a whole gives a clear idea of •
the nature of the demands and the spirit in which they are formulated. It should be added that if these questions are rejected
they do not go to a higher instance except in the case of general
questions, such as the fixing of the minimum wage or of the
average agreed wage. There again an agreement is generally
arrived at. If not, the demands are discussed at the following
meetings until such time as satisfaction is obtained or until the
workers' sections voluntarily withdraw their claims.
A description of the last stage of industrial relations, known
as Douai meetings, will need more space.
We will use, in '
addition to the information gathered on the spot, the general
outlines given by Mr. Robert Fabre, Chief of the Economic Service of the Central Committee of the Collieries of France, in.
his Memorandum on the Principles and Methods of Wage-Ffaing
in French Coal Mines, written for the Preparatory Technical
Conference on Conditions of Work in Coal Mines, held at Geneva'
in January last.
In order to avoid any confusion it must be stated at the
outset that in no case does the central organisation of employers,
the Central Committee of the Collieries of France, admit any
higher instance than the district organisation. The agreements
arrived at between employers and wage-earners in coal mines
are drawn up solely for one coalfield or for a group of coalfields
in one part of France. It is the Northern French coalfield, as
described at the beginning of this article, which leads the way,
and the methods adopted there are rapidly followed in the other
French coalfields. No arbitration procedure is provided for and
it will be seen later that the attempts made in this direction after
the war have been abandoned. Here again, one can repeat the
leitmotif of industrial relations in the French coal mines : an
agreement is generally arrived at. Moreover, this agreement
is reached without any intervention of the public authorities,
without violence and without threats. In point of fact, there
has been no strike in the Northern coalfield during the last ten
years, and in the rest of the country there has only been a single

See below, p. !'4.

THE LENS MINING COMPANY

strike, lasting for about three weeks and limited to a certain
number of mines in the Centre and South. This strike was
brought about by the extremist elements and was expressly condemned by the trade unions belonging to the General Confederation of labour.
The historical development of these regional agreements is
described by Mr. Fabre in the following words :
Even before the war, wage questions in most French coal mines
were the subject of collective discussion between qualified delegates
of the mining companies and the staff. These discussions were organised
regionally.
Thus, from 1889, in the Nord and Pas-de-Calais, collective agreements known as the " Arras " agreements governed wage questions
for the whole of the coalfield. In the Loire, too, the employers' and
workers' organisations had concluded agreements for the settlement
of conditions of work, wages, and pensions.
It should be observed that, besides dealing with actual wages, this
system of regional agreements also allowed of settling related questions, such as that of pensions. As far back as 1902, that is to say,
long before the establishment of the autonomous Miners' Pensions
Fund by legislation in 1914, several Arras agreements had fixed the
rates of the pensions then paid directly by the companies of this
coalfield to their workers. The 1914 Act was to some extent based
on the actual position resulting from the provisions agreed on by the
parties concerned, and it maintained some of these provisions.
During the war, the special conditions imposed on all industries
directly concerned with national defence led to the temporary suspension of these methods. Two-thirds of the workers employed in
the mines were mobilised and became dependent on the military
authorities. The Government bought virtually all the output of the
mines aftd fixed prices as it fixed the prices of foodstuffs. It was
logical that the public authorities — in this particular case, the Ministers of Labour and Munitions — should assume a direct and decisive
part in fixing wages.
As from September 1918, in accordance with the procedure adopted
in all war industries, the fixing of minimum wages was entrusted to
regional mixed committees, sitting under the chairmanship of the
prefect and composed of an equal number of workers' and employers'
representatives designated by him. The local mixed committees were
to discuss for each undertaking the establishment of wage schedules,
with due regard to the minima fixed by the regional committees. . . .
If it was found impossible to set up a mixed committee, or if its
work did not result in an agreement, the fixing of wages was to be
referred to arbitration by the Ministers of Public Works and Labour.
The introduction of mixed committees in no way affected the
practice allowed in the Northern coalfield, where the workers' and
employers' delegates continued to meet and discuss as they had before.
But in the Central and Southern coalfields, where contact was officially
established in this way, the mixed committees failed almost everywhere, and it became necessary to resort to arbitration in most cases.
This system was maintained until 7 July 1921, when a circular of the
Minister of Labour, addressed to the prefects, confirmed the rejection

INDUSTRIAL RELATIONS

of the system of mixed committees, the suppression of arbitration,
and the return to the traditional practice of direct contact between
those concerned, by giving the latter full freedom to enter on and
conduct the customary discussions on the lines indicated by local
experience.
However, apart from the sole exception of the agreement of 21 December 1917, introducing a uniform rise not in wages proper but in
the cost of living bonus for all coal mines then worked, special agreements were concluded, or arbitration awards given, either for the
Central and Southern coal mines, or for the Loire coal mines alone,
or for those of the unoccupied districts of the Pas-de-Calais, or, after
the armistice, for the coalfields of the Nord and the Pas-de-Calais.
Thus, even in the exceptional conditions prevailing under the system
of war economy, there was only once a deviation from that principle
of fixing wages by region or by undertaking which has constantly
been observed in the French eoal-mining industry ; and even that
exception related only to a fraction of the wage.
In order to make perfectly clear the spirit in which these
conversations are carried out between representatives of the
trade union organisations and the managers of the mines, some
more detailed reference must be made to the circular of 7 July
1921 already mentioned. This circular states that the public
authorities should look with favour on the resumption of direct
negotiations which, although they do not always bring about an
immediate agreement, at least enable the parties to define their
point of view, to remove misunderstandings, and thus to pave
the way for future agreements. It recommends the administrative authorities, when called upon to guide such négociations.
to have the fullest possible regard for the local situation, traditions, precedents and the previous relationships between the
organisations concerned. It expressly states that, contrary to
4he procedure hitherto followed, the prefects should not take the
initiative in arranging for meetings between representatives of
the parties concerned, except when asked to do so by the parties,
or when they are certain, from enquiries which they have made.
that their action will be favourably received by those concerned.
When direct negotiations do not lead lo a successful
sion and it is feared that a serious dispute may arise, the
can offer their services, but they must remember that
no legal provision enabling them to impose arbitration
parties.

concluprefects
there is,
on the

In fixing wages, the mixed committees had based their action
mainly on the variations in the cost of living. The Ministerial
circular of 7 July 1921 points out that, in addition to the general

THE LENS MINING COMPANY

information on variations in the cost of living collected by the
Ministry of Labour, account should be taken of local circum-'
stances and, more especially, the conditions of working and
marketing in the coal industry.
The circular, in short, merely confirmed the return to a
well-established tradition, and it is therefore not surprising that
the principles which it laid down should have been faithfully
followed. None of the coalfields has, in any form, applied a
system of sliding scales leading to an automatic change of wages
according to the fluctuations of a simple or compound index. In
discussing wages, the variations in the cost of living, measured
either according to the indexes prepared by the District Committees or according to the lists of prices drawn up by the cooperative societies, stores and retail shops, have been taken into
consideration. Account has also been taken of the position of
the market^ selling facilities, the needs of competition, the conditions of labour recruiting, the general economic situation and
the rates of wages in other basic industries. There is no direct
relationship between the scale of coal prices and the agreed wages
of the miners, but over a long period it has been found that the
wages curve and the price curve have followed more or. less
parallel courses.
With regard to the machinery for those meetings, it should
be pointed out that they are not held at regular intervals. Sometimes the managers of tjie mines inform the elected representatives of the miners that they wish to examine with them the
possibility of adapting wages to new variations in the cost of
living, changes in* the commercial situation of the mines, or some
other factor affecting 4he working of the undertaking and the
conditions of life of the Àyorker. More often, it is the workers'
representatives themselves who take the initiative in bringing
about the interview.
For the » Northern French coalfields, these meetings have,
Since the War, been held at Douai instead of at Arras, as formerly.
They occur, on the average, two or three times a year, and are
attended by ten or twelve managers of mines and the representatives of the Miners' Trade Unions of the coalfields of the Pasde-Calais, the Nord, and Anzin.
The main arguments brought
forward, and the results of the interview, are noted in the
minutes, which, signed by two representatives of the workers and
two representatives of the managers, are published, and have

76 .

INDUSTRIAL RELATIONS

the force of an agreement. These agreements can only be terminated on one month's notice. A similar practice is employed
in the other French coalfields.

WOKKÌNG OF INDUSTRIAL RELATIONS
In order to study the working of industrial relations" in any
given undertaking, it is necessary to give a rapid survey of the
conditions of work and life of the workers, and to consider at
any given point how these relations are applied and what results
are obtained. This is the plan that will be followed in considering the Lens Mining Company.
The Engagement

Workers

This is carried out in two ways : on the spot or abroad.
In the case of recruiting on the spot, the family character,
several times referred to in the preceding section, again appears.
There is n o centralised system for the engagement of workers.
Miners in search of employment learn through their families
or their friends that such and such a pit is in want of workers.
They apply personally to the engineer of the pit in which they
want to be employed. The engineer questions the worker and
briefly examines his past history in the light of the certificates
which he provides. If the result is satisfactory, he gives the
applicant a voucher, with which he presents himself to the Chief
of the Staff Branch at the Central Office.
As a rule, the formalities are carried out at once : photograph,
finger prints, complete information as to past employment,
the situation of the family, etc., all of. which is noted on a
special form known as the engagement file. A medical examination is then carried out under the direction of the Chief Doctor
of the Company, assisted by two other doctors chosen in rotation from among those in the workers' villages. The eyes are
particularly carefully examined by an oculist attached to the
Company. The medical information is noted on the engagement
file, which is kept by the Staff Branch at the Central Office.
It goes without saying that the miner is not taken on unless his
state of health is satisfactory. He then returns to the pit from
\yhich he was sent, with a certificate stating that he has been
engaged. He thereupon carries out the necessary formalities

THE LENS MINING COMPANY

for registration in the Accounts Department of the pit. It should
be added that these details apply, without distinction, to French
and to foreign -workers.
Recruiting abroad is carried out through the central organisation of employers : the Central Committee of the Collieries
of France. This organisation transmits all the demands from
the managements of the different mines which are affiliated to
it, to the Société générale d'Immigration, a private organisation
set up by the Central Committee of the Collieries to facilitate
the importation of the necessary labour. At present, this organisation also works for other central organisations of French
employers. The worker's travelling expenses, and 75 per cent.
of the travelling expenses of his family, are refunded. The contract is for one year, during which 45 per cent, of the travelling
expenses of the family are deducted from the worker's wages.
When the contract is terminated, whether voluntarily or otherwise, the employers' obligations cease.
The percentage of foreign workers employed by the Lens
Mining Company is relatively high. The most recent figures are
as follows : French, 69.15 per cent.; Poles, 18.79 per cent.;
Yugoslavs, 4.79 per cent.; Belgians, 2.61 per cent.; Czechoslovaks, 1.70 per cent.; Hungarians, 1.35 per cent.; Italians, 0.88
per cent; Portuguese, 0.24 per cent.; Spaniards, 0.14 per cent.;
various, 0.35 per cent. At the moment (May 1930), the Company
is not recruiting any workers abroad, since it has all that are
required for its present production.
Stability of Employment
A miner who feels himself physically unfit, or who wishes
to change his employment for any other reason, applies through
the .proper channels to the chief engineer of the pit. The latter
very often arranges the matter, but, as a general rule, in the case
of a change of occupation for reasons of physical unfitness, the
miner has to submit to a medical examination by three doctors.
He is granted a change of occupation when a certificate states
that such a change is necessary. In the case of older workers
who have been employed by the Company for quite a long time.
the worker, who is moved to a lower-paid group, receives a higher
wage than that of the group to which he is transferred, so as
to compensate him, to some extent, for the loss of earnings which
will result. This, of course, does not apply to the transfer

INDUSTRIAL RELATIONS

(retrogression) of a worker who continues to carry out the same
occupation, as may be the case, for example, with hewers. Such
action is never taken for reasons of physical unfitness, but is
decided by the engineer in order to take account of decreased
output in distributing the earnings over a group of workers.
It is extremely rare for a worker to be dismissed from a
pit because of lack of employment. If such a step has to be
taken, it is done only after the possibilities of employment in
other pits, or even in ancillary undertakings, have been examined;
this examination is carried out either by the chief engineer in
charge of underground work, or by the engineer in charge of
surface work, as the case may be.
On the whole, there is considerable stability of employment,
as is shown by the number of workers who have obtained medals
for thirty years' continuous service with the Company. This
number is 1,400. The stability of employment is greater than
before the War, even when account is taken of the floating
element of foreign workers. "
Practically always the departure of workers is voluntary.
Dismissal for disobedience or for insufficient output is quite
exceptional.
Workers are given a week's notice. In the case of salaried
employees, there is no fixed rule, as they are scarcely ever dismissed. In case of voluntary departure, the salaried employee
is asked to give a month's or six weeks' notice.
There is no procedure for appeal in the case of dismissal.
The worker is informed at the pit that he has been dismissed.
In case of serious injustice, and particularly in the case of the
collective dismissal of a certain number of workers, action would
be taken by the Federation of Trade Union Sections. This
Federation also intervenes in favour of workers who have been
changed to a different category of employment or transferred
within the same employment.*
AH these provisions are applied in the same way to the staff
of the ancillary undertakings.

1
In March, 1930, there were 400 foreign workers who entered the service of
the Company, and 193 who left. This considerable movement of foreign workers
explains why dismissal on account of unfavourable economic conditions is unnecessary. The mere fact of voluntary departures restores equilibrium in the labour
supply.
8
Cf. Appendix I, paragraphs 3, 4 and 9.

T H E LENS MININO

Hours of

COMPANY

Work

All the staff employed at the surface comes under the Act
of 23 April 1919, fixing the hours of work at 8 in the day or
48 in the week. The underground workers are covered by the
Act of 25 June 1919, which also fixes the hours of work at 8
in the day, but with certain special methods of calculation.
The hours of work include both winding times for each
category, from the entrance of the first worker of the category
until the last worker of the category leaves the pit. In the Lens
Mines, five minutes is reckoned for the descent of a category,
and about twenty to thirty minutes' travelling time underground.
A break of about twenty minutes is~provided during the working
hours for a light meal. The actual hours of work are therefore
reduced to about 6 hours 50 minutes and even 6 hours 40 minutes.
For the coal-getting shift (about 75 per cent, of the total number
of underground workers, including haulers), the hours of work
are reckoned from 5.30 a.m. t o 1.30 p.m., with a break at 9 a.m.
For the shift for supplementary work, the hours are reckoned
from 1.30 p.m. to 9.30 -p.m., with a break at 5 p.m.
In the case of surface workers, the hours of work of the
workers and girls employed for sorting the coal synchronise
with those of the hewing shift, and are therefore from 5.30 a.m.
to 1.30 p.m. The hours of the others are from 7. a.m. to 11 a.m.
and from 12 to 4 p.m.
The only persons working on a three-shift system are the
machine men at the pits, the workers in the electric power station
and those in coke furnaces. Their hours are from 6 a.m. to
2 p.m., from 2 p.m. to 10 p.m., and from 10 p.m. to 6 a.m.
The overmen and overseers have the same hours as the
workers, with an additional hour of office work.
The chief
overman and the chief overseer have no fixed hours, but work
under the same system as the engineers. It should be pointed
out that they enter the pit later than the workers and leave
it earlier, which, to some extent, compensates for the extra
office work which they have to perform. The office clerks at
the pits and in the ancillary undertakings, or at the central
Office, have the following hours of work : 8 a.m. to midday,
and 2 p.m. to 6 p.m.
The discussions with the staff on hours of work refer chiefly
to the interpretation of the word " categories ", mentioned in the

INDUSTRIAL RELATIONS

Act. The Management of the Lens Mines, as of other French
Mining Companies, as far as is known to the present writer, interprets the word " category " as meaning the party or group of
workers under one overman. A party includes from 200 to
300 workers. The miners and their representatives consider
that the category should include all workers who have the
same occupation—for example, all those employed at the
coal face, all those employed on haulage, or all those employed
on supplementary work. The question has been brought up
several times at the meetings at Douai, but it seems at the
moment to have been settled. It will be noted in Appendix I
that the meetings of the management with the Federation of
Trade Union Sections of the Company have had to deal with
demands for changes in the time-table. In the particular case
referred to (paragraph 8), there is a demand from the workers
in the workshop attached to Pit 16 that the midday rest should
be from 12 to 1 instead of from 11 to 12.
The workers are not entitled to holidays with pay. Salaried
employees, as well as overmen and overseers, have a week's holiday with pay, while engineers and higher officials have twentyone days.
In addition to the weekly rest and legal holidays, the following three days in each year are considered as holidays : 1 May,
Sainte-Barbe (4 December), and the Monday after " Ducasse ",
a fair which is held once a year on some Sunday which varies
according to the pit or ancillary undertaking.
Wages
This is the sphere in which industrial relations will be found
to work most actively. There is one distinction which must
be made at the outset : the workers receive wages in cash and
certain allowances in kind, which make a considerable difference
to their total earnings. For the whole of the Company the
number of workers paid by the day exceeds those paid by piece
rates. The former group constitutes a proportion of rather less
than two-thirds. Piece rates are found almost exclusively on
underground work in the pits,, and are subdivided into three
main groups : wages of hewers, stone-men and haulers. In the
first two cases the wages are paid by groups and are distributed
according to fixed coefficients.

THE LENS MINING COMPANY

At present, for the whole of the Northern French coalfields,
this distribution is carried out by classifying the workers into
four classes, Skilled miners, including chief hewers, have a
coefficient of 10, while others have coefficients of 9.3, 8.5 or 8.
All these workers do the same work, but are classified so as to
take account of differences in their occupational capacity. The
engineer decides the class to which any worker shall belong,
a n d may change him from one class to another.
Hewers' wages are calculated by the number of trucks filled,
subject to two conditions.
The trucks must each contain an
average weight of coal. Those which are not sufficiently full
are rejected, a n d therefore do not count in reckoning the wages
of the shift.
Moreover, those which are found during sorting
operations to contain too high a proportion of minerals which
cannot be used as fuel (stone and waste), involve a fine for
the shift which is distributed over all the workers.
In fixing the price per truck, the chief engineer of the pit
prepares a very simple scale, which takes account of the thickness
of the seam. This scale is handed to the chief overman and
overman. The actual price is fixed by the chief overman after
discussion with the overman in charge of the working face in
question, according to the scale, but allowing for the hardness
of the seam, the difficulties of timbering and advancing the
gallery, and any other general' difficulties connected with the
working face or the supplementary work which may have to be
carried out.
If the workers are not satisfied with the price
fixed, they can discuss the question with the overman, who will
examine the scale again and report to the chief overman, who,
in turn, reports to the engineer.
If the latter considers the
demand to be justified, he may fix a different price from that
originally stated. If he has any doubts as to the justification
for the demand, he may carry out a time test, but it is only
on rare occasions that this is necessary.
It should be added
that a time test is sometimes carried out as an experiment iu
the case of new galleries at the request of the overmen and in
the interests of the workers.
A difficulty may arise from differences in the thickness of
the seams. A seam may, for example, be 0.70 metres thick at
the beginning (which is the average in that part of the coalfield
worked by the Lens Mines), and as the work proceeds, it may
fall to 0.60 or 0.50. In this case, the chief hewer reports to
6

INDUSTRIAL RELATIONS

the overman and the matter is brought before the chief overman
and, if necessary, the engineer. An agreement is arrived at byraising the price per truck.
Every working group has a number, which is marked on a
set of slips so as to identify the trucks when they arrive at the
surface. The presence of the workers at the mine is checked
at the lamp house, where each worker, before descending, hands
in a token in exchange for his lamp ; it is also checked underground by the overmen. The earnings are therefore distributed
automatically according to the class to which the miner belongs.
The rates of wages of stone-men and those employed in
cutting galleries are fixed in proportion to the number of metres of
rock cut. They are determined similarly to those of the other
groups mentioned above, and can be discussed in the same way.
No comments are necessary on the wages of haulers. This work
is carried out by young workers, and often paid for at time
rates, so as to avoid any injustice.
If no agreement can be arrived at in the pit, the workers
request the Federation of Trade Union Sections to take action.
Reference to this will be found in the Appendix showing the
most recent claims made by the miners in this Company (paragraphs 1, 2, 3, 4, 5 and 9).
Finally (and this is where the third instance can take action),
the wages of mining workers cannot fall below a minimum
fixed by the agreements at Douai.
When the earnings of a
group at the working face are not sufficient to ensure this
minimum the deficit is made good by the Company. The basic
prices are then examined and revised. If the inadequate earnings are the result of bad work, the group is tested several times
and, if necessary, broken up, so that workers who are clearly
unfitted for the work can be transferred, or even dismissed.
The minimum wage fixed by the agreement of 1 October
1929, and at present in force for the whole Northern French
coalfield, is 32.90 francs for miners with a coefficient of 10,
and a bonus of 25 per cent, is added to this figure. This bonus,
which will be found on all wages, varies over the whole coalfield according to the cost of living, the state of the market and
working conditions, and must be agreed to at the Douai meetings.
fn addition to the minimum wage, there is also an average
agreed daily wage, which has been fixed by the same agreement
at 35 francs for adult miners, plus 25 per cent, making a total

THE

LENS

MIKING

COMPANY

of 43.75 francs per day. This figure is used as the basis for
establishing the scales referred to above. The actual average
wages exceed the agreed average wages by an amount which
varies according to the output and the economic possibilities.
In the mines of Lens it is considerably higher. The wages in
these mines, including the bonus of 25 per cent., are approximately as follows : miners, 45 to 55 francs per day ; assistants
(young workers), 30 to 35 francs per day. Surface workers are
paid at time rates, and skilled workers earn about 40 francs
per day. The girls employed on hauling trucks at the surface
and sorting coal earn from 15 to 20 francs a day. Wages arcpaid once a fortnight, and the pay sheet shows the method by
which the earnings, and the sum actually paid, have been
reckoned, as well as the amount and nature of the deductions
(for relief fund, pensions fund, housing, etc.).
Salaried employees are paid by the month. The following
are a few approximate figures for certain of these employees :
overmen earn from 15,000 to 20,000 francs a year, and chief
overmen, from 20,000 to 30,000. There is no profit-sharing.
except in the case of engineers.
In addition to these wages, there are a certain number of
allowances, either in cash or in kind. The first group includes
family allowances, which, in the case of workers, are 1 franc a day
for the first child, 1.50 for the second, and 2 francs per day and
per child for three or more children. These family allowances are
fixed in the wages agreements drawn up at the Douai meetings.
There are also allowances in kind, the most important of
which are the allowances of fuel, which involve a considerable expenditure for the Company. In March 1930, for example.
these allowances amounted to 7,273 tons. For the distribution
of fuel, the underground workers arc classified in three groups.
the first including workers with a coefficient of 10 who an;
married or heads of families, the second including other underground workers who are married or heads of families, and the
third including underground workers who are not married and
live alone, or with their parents, provided that the latter are
not employed by the Company. The first group receives 6,900
kilograms per year, the second, 5,700, and the third, 4,800.
Chief hewers receive 8,100 kilograms per year, which is. as has
been mentioned, the only material advantage which they obtain
from I heir special duties.

INDUSTRIAI. RELATIONS

The surface workers are divided into two categories : specialists receive 7,500 kilograms per year, and labourers, 4,800.
There are also two categories of salaried employees. Those
whose position is equal to, or higher than, that of overmen,
receive from 7,500 to 8,500 kilograms per year, while the others
receive 5,700.
There is only one allowance of coal for each family, but
the following supplements are provided : when three workers
or salaried employees employed by the company share the same
dwelling or when the family numbers 7 persons or over, but
less than ten, there is an extra allowance of 1,200 kilograms per
year.
If four workers or salaried employees of the company
share the same dwelling, or if the family consists of ten or more
persons, the extra allowance is 2,400 kilograms per year. There
are also distributions of old wood.
All these allowances of
fuel may form the subject of workers' claims. 1
Housing is a further advantage, • and a considerable one,
granted to the workers and salaried employees of the Lens
Mining Company.
It is in reality a form of wages in kind.
In principle the Company finds accommodation for all its
workers.
The houses are neat and comfortable, of varying
dimensions according to the size of the family. All have an
enclosed courtyard with a wash-house, wood-shed, rabbit hutch,
hen-run and pigeon house. In addition, each house has a garden
of a n average area of 370 square metres. On the basis of present
prices, it may be estimated that each of these gardens can give
an annual produce of vegetables, fruit and flowers worth about
1,200 francs. The company had those houses built for its workers a n d devoted a sum of 400 millions to their reconstruction
after the war. There are now 9,953 houses providing accommodation for 41,000 persons. The monthly rent paid by the
workers is 11 francs for three rooms and 15 francs for six rooms,
which is not even enough to cover the cost of repairs.
The accommodation is distributed by the engineer of the pit
to which the village is attached. For this purpose each engineer
has at his disposal sufficient accommodation to cover the average
requirements, whether the houses are grouped in villages or not.
Before entering into possession of his dwelling, the worker is
given a copy of the regulations concerning the Company's
1

Cf. Appendix I, paragraphs 1, :t and 7.

THK LENS MINING COMPANY

workers' houses. He must sign the declaration on the last page
of these regulations, accepting all the conditions and obligations.
A copy of this is given in Appendix II. 1 A certain number of
documents are drawn up whenever the house changes hands,
and are sent to the staff office.
These are known as house
vouchers, and in the case of salaried employees they must be
approved by the general manager.
All applications for a change of dwelling are addressed to
the engineer either directly or through the chief accountant of
the pit. General questions regarding housing are dealt with by
the Federation of Trade Union Sections. 2
The facilities granted by the Lens mines to the Distributive
Co-operative Society of its workers and salaried employees may
also be considered as an indirect supplement to wages. These
facilities are : the free provision of the buildings required by
the Co-operative Society for its central office, its wholesale store
and its branches ; the maintenance of the buildings and free
transport of goods on the railway belonging to the concession.
The number of co-operative members is 5,450 and the turn-over
amounts to almost 22 million francs annually.

SOCIAL

INSURANCE

Accident insurance is governed by the general legislation
(Act of 9 April 1898 with later amendments). The total number
of days lost through accident was 82,400 in 1929. There were
4,500 accidents, of which thirteen were fatal.
The workers"
safety delegates are immediately informed of any accident occurring -in the district for which they are responsible. In the case
of a serious accident (involving incapacity for work for more
than twenty days) the management also reports to the State
supervision service. If the original diagnosis of the doctor in
attendance is twenty days or more of incapacity for employment,
this service is immediately informed.
Otherwise no report is
made until the end of the twenty days. Two reports are drawn
up in connection with every serious accident : one by the safety
delegate and the other by the State supervision service.
The
1
1

See p. 96.
Cf. for example, Appendix I, paragraph 1.

INDUSTRIAL RELATIONS

first is sent to the management of the company and the second
to the Attorney-General, but it is only in very rare cases that
the latter takes action. Usually the chief departmental mining
engineer unofficially requests the company to take certain
measures to prevent a recurrence of the accident.
No special propaganda for accident prevention is undertaken
apart from handing to every worker, and obtaining a receipt
for, an extract from the Decree of 13 August 1911 as amended
by the Decree of 25 September 1913, containing general regulations on the working of mines for the production of fuel. The
Company does not consider special propaganda to be necessary,
because in the first place there are a great number of older
workers who train the new arrivals and the apprentices, who
are generally members of the same family or friends of the
other workers, and in the second place, the causes of the accidents
are frequently the same (falling earth, run-away trucks, etc.).
In connection with the question of accidents, it should be
noted that the Company has set up a centre for radiography,
ultra-violet rays, and electro-therapy, also a centre for mechanotherapy for the retraining of the victims of accidents.
This
institution is also at the disposal of all the workers and salaried
employees of the company and their families.
Sickness insurance is carried out by the Mutual Aid Society
of the Lens mines, which has been in existence for more than
thirty years, in conformity with the Act of 29 June 1894 concerning mutual aid and pensions for miners.
Equal contributions are paid by employer and worker.
A copy of
the rules of the fund are handed to each worker, who must
sign a receipt.
Two Articles should be particularly noted :
Article 3, which lays down that membership is compulsory for
all workers and salaried employees, and Article 6, which entrusts
the management of the fund to a committee, two-thirds of whom
represent the members, while the other third is appointed by
the management.
The Mutual Aid Society emploj's specialists
for diseases of the stomach and intestines, and diseases of the
ear, nose and throat. It also possesses a dental clinic and utilises
the centres for radiography and mechano-therapy of the Company. All these institutions are at the disposal of the families
of members.
In 1929 the number of days of sickness was
231,485. The workers are not subject to any periodical examination because there have never been any occupational diseases.

THE

LENS

MININÍÍ

COMPANY

The Company does not carry out any special health propaganda
apart from distributing the regulations (Decree of 13 August
191-1) mentioned above. Any complaints or demands from the
workers concerning hygiene and safety are lodged directly or
through the usual channels in each pit or else through the
Federation of Trade Union Sections.'
Invalidity and old age insurance is also regulated by the Act
of 29 June 1894 (and later amendments).
The contribution
is 5.5 per cent, of the wages to be paid by the worker
and an equal percentage to be paid by the company.
After
thirty years of service and at the age of 55, a pension of 5,000
francs a year is granted. This pension is paid even if the worker
continues to work.
The Company generally pays a supplementary pension to salaried employees provided they have been
in the service of the company for a long time.
The Lens Mining Company also grants special allowances
to salaried employees or workers who have been emploj'ed for
thirty years in its service, and who have received the long service
medal on this account. Each of these is granted a free share
(worth about 1,400 francs), and the income from four other
shares every year. Coal is also distributed to them free of charge
at the rate of 3,600 kilograms per year. Finally, a subsidy of
15,000 francs annually is also paid to the Association of Long
Service Medallists of the Lens Mines, which was set up in 1904
chiefly for the purpose of assisting those members " whose
situation is particularly unfortunate ".
Workers in receipt of a pension who have ceased work eithei
of their own free will or at the request of the Company cannot
continue to live in the Company's houses. ' The miners have
protested against this for some considerable time, and the matter
is mentioned again in the list of demands given in Appendix I
(paragraph 13) along with a demand concerning the distribution
of coal vouchors to pensioned workers (paragraph 1).

SOCIAL INSTITUTIONS
The social institutions of the Lens Mining Company may be
classified in the following three groups : child welfare work,
workers' education, workers' recreation and sports.
1

Cf., for example, Appendix I, paragraph 6 and 8.

INDUSTRIAL RELATION8

Child

Welfare

In the description of the centre attached to the workers'
villages, mention was made of the dispensaries. Each of these
has a doctor in charge and nurses, and was set up by the management for dealing with the victims of accidents. They are
also placed at the disposal of the Mutual Aid Society for cases
of sickness.
They have,' however, a third function, that of
giving consultations free of charge with regard to infants.
Children are admitted between the ages of 15 days and 1&
to 18 months ; after that age they receive the necessary attention
by visits from the doctor. Consultations are held once a fortnight, and the total number in 1929 was 777 in the 18 dispensaries
attached to the mines.
The doctors who are in charge of the dispensaries receive
their salary from different sources on account of their different
functions. At present 60 per cent, is paid by the Mutual Aid
Society, and the remainder is covered by thè management of
the mines, which also grants them free coal and housing.
Education
The Society has organised three kinds of schools : elementary*
technical, and domestic. In principle, as was mentioned in the
section dealing with internal organisation, each of the centres.
in the workers' villages has an infant school, a boys' school, and
a girls' school. Elementary education is given to children of
from 4 to 13 years. The total number of pupils is 5,837. The
infant schools are mixed (children from 4 to 7 years), after which
the children attend separate schools for boys and girls, each containing from five to ten classes, according to the size of the
village. The children sit for the examination for school certificates
when they have the necessary qualifications. The schools, which.
are models of cleanliness and as neat as the workers' houses,
are entirely free and maintained by the company.
According
to law, the schools are inspected by State officials.
Evening classes are held separately for underground workers,
and surface workers.
In the case of the former, the classes
are held twice a week in six centres in the boys' school. They
are usually attended by boys of from 14 to 18 years, and the
total number in 1929 was 250.
These evening schools are
devoted partly to general education and partly to technical train-

THE LENS MINING COMPANY

8»

ing. Special courses are organised by the engineers of the
centres in which these classes are held to prepare pupils for the
overmen's school in Douai. These courses are attended by forty
young workers, but the number of those chosen to attend the
school is much smaller, being only three or four each year.
When they leave the school at Douai, they are, if they apply for
it, engaged as surveyors or overseers or even in exceptional cases
immediately as overmen.
The evening classes, both general and technical, for surface
workers are held at Pont-à-Vendin, and are organised in a similar
fashion.
For the last three years the management of the Lens Mining
Company has organised a central course for workers who have
distinguished themselves by their work or their intelligence, but
who do not satisfy the necessary age conditions for the entrance
examination to the overmen's school. This training, which is
given at the central office outside working hours by engineers.
specially designated for the purpose, lasts for one year, the classes
being held twice a week for an hour and a half. The number
of workers at present attending these courses is 26. The company does not give any guarantee of promotion, but if the pupils
get good results they stand a better chance of being appointed
overseers or overmen at an early date. It should be added that
the company also subsidies the municipal occupational schools.
in Lens.
There remains domestic education.1
" Each boy's school ", says Mr. Cuvelette, " has a school
garden of from 10 to 12 ares, in which the young children fronv
the age of nine onwards have their first lessons in gardening. The
school garden has a section reserved for flowers, which is divided
into two plots, the first being a small model flower-bed, which the
children try to copy in front of their own house, while the other
is kept for perennial plants. There is also a small nursery in
which the children practise grafting and budding. The cultivation of vegetables naturally occupies the greater part — about
two-thirds — of the garden. This section is divided into plots of
from 12 to 16 square metres, each entrusted to two or three
pupils of varying ages. The arrangement of this miniature
1
In this part of the article the author has made use of a very remarkable
lecture given by Mr. Cuvelette at the Musée social on 23 January 1925, on " Workera' Dwellings and Social Institutions at the Lens Mines ".

INDUSTRIAL ilËLATION'S

garden is left entirely to the initiative of the children ; the products are their property ; under the supervision of the teachers
they learn to dig, sow, transplant, hoe and water, and, in short,
they look after the vegetables like real gardeners. The border
plots along the walls are kept for seedlings and transplanting.
There is a special bed for growing plants for seed ; the pupils
are taught how vegetables should be chosen and treated for
this purpose. The soil in the concession is mainly calcareous,
with a very thin layer of mould. As there is often no manure
available, the pupils are taught how to prepare composts to be
used as manure or as fertilisers. The company provides all the
seeds and the necessary tools free of charge, and it also offers
special prizes for the pupils who obtain the best results.
" This training is continued at the pit for adults. A notice
is posted up in the yard showing a plan of rotation which will
give the maximum output from the workers' gardens. Another
notice, which is a real gardening calendar, shows every month
the work which should be done in the kitchen garden and the
attention required by trees. This is supplemented in the village
by visits from the Inspector of gardens and plantations, who
assists the gardeners with advice, and who has written for them
an admirable little book entitled Le Jardin du Mineur, which
is full of practical advice, and shows deep sympathy for our
workers. "
Annual competitions create a spirit of rivalry among the
miners ; they are held in June, and numerous prizes are given
to the successful competitors, who meet at a banquet presided
over by the General Manager of the Company. The judges, who
are appointed by the General Manager at the suggestion of the
Inspector of gardens and plantations, are pensioned workers
and salaried employees with a real knowledge of gardening.
Domestic training is naturally more highly developed for
girls. It is given in special schools of housekeeping which exist
in five centres. There is a total of 235 pupils between the ages of
13 and 20.
" The school of housekeeping has a dressmaking and meetingroom, a dining-room and kitchen, a wash-house and laundry
and a school garden with a hen-run and a rabbit hutch. The
schools are open every day throughout the school year from
3 to 8 p.m. and on Thursday from 9 a.m. to midday. The
daughters of salaried employees and workers employed by the

THE

LENS

MININO

COMPANY

Company are admitted without formalities at their request.
They do not go to these schools to obtain vocational training
but merely to prepare themselves for their future tasks as housekeepers.
" In the workrooms the girls are taught all kinds of needlework and are given some instruction in cutting out. One day
each week is devoted to mending : the pupils bring their own
linen to be mended and work under the supervision of the
sewing mistress. The other days are devoted to the making
of new underclothing and simple garments. Everything made
in the workrooms becomes the girls' property and the Lens
Mining Company supplies all the necessary materials free of
charge. Prizes are also given to each pupil by way of encouragement in the form of table, toilet or kitchen linen, which
is a very acceptable addition to the girls' trousseaux.
" There are two mistresses for cooking. Two hours a week
are devoted to practical exercises consisting in the preparation
of a lunch or dinner, preceded by a lesson in theory which
lasts for about half an hour. The girls prepare the meal in
groups of four and five ; they weigh and prepare the vegetables
a n d the meat, they select the necessary utensils, put the food on
the fire, season it and supervise the cooking. The cost and the
weight of all the substances used are marked in a notebook
by the other girls attending the lesson. They thus learn to
estimate the price of things and to realise that the most economical food may also be the most substantial. The cookery
lessons are varied by certain hours devoted to other forms of
housework or to gardening. All the pupils in turn have practice in washing, ironing and removing stains from clothes under
the supervision of a mistress who points out the best methods.
" In the school garden the girl learns the principles of the
work to be done by her father and her brothers in the garden
of her own home and the way in which she can and should
help them. She as housekeeper must remind them of the
needs of the table and of the period for sowing or transplanting ;
she will attend to hoeing, watering and the gathering of vegetables
and she will also attend to the flowers. The practical wofk
is accompanied by certain lectures on theory and courses on
hygiene, domestic economy and household accounts. "
In addition, the Office Familial Ménager in Paris has for
the last two years sent three mistresses to Lens who visit the

INDUSTRIAL RELATIONS

different villages and give courses in cooking, dressmaking, etc.,
for a period of six weeks or two months. These courses are
intended for the wives of the workers.
The Mining •Company has also set up dressmaking workshops for girls between 13 and 20 years of age who are not
employed in the mines, in order to give them some remunerative occupation. The Company supplies the workroom, the
necessary teachers and the electricity for driving the machines
and for lighting. It does not supply the materials nor does
it undertake to sell the goods. The girls work at piece rates for
outfitters, and the sums earned are distributed between the
girls without any deductions. The six workshops at present in
existence employ 426 girls. Each workshop is supervised and
managed by a committee consisting of ten workers or salaried
employees whose daughters are working in the workshop. This
committee meets once a year under the chairmanship of the
engineer of the pit to which the centre where the workshop is
situated is attached.
Physical education is compulsory between the ages of 7 and
13 years. It is given in the schools by the teachers under the
supervision of the chief of the physical training service in the
central administration. The teachers, male and female, are
obliged, up to the age of 25, to attend courses of physical training. These courses are organised by the chief of the physical
training service and are attended at present by 9 men and 24
women teachers.
Workers' Recreation and Sports
Each village has a workers' club under the management of 3
committee elected by the inhabitants. The Company supplies a
building free of charge for this club. The committee appoints
a manager from among its members and this manager is responsible for the sale of non-alcoholic drinks, which are the only
ones permitted. The. club is open on Sundays.
The Company also organises cinematograph performances
with instructional films. These are given in each centre every
week from the beginning of the winter until Easter. They are
held in the girls' school, which is specially fitted out for this
purpose, and the same hall can be used for theatrical performances organised by the pupils.

THE LF.NS MINING COMPANY

Lastly, the Company favours the creation of workers' sports
clubs. An enumeration and detailed description of all these
clubs would exceed the scope of this article. There are, musical
societies, clubs for gymnastics, archery, football and basket-ball
and a society of pigeon fanciers. The Mining Company supplies
the necessary ground free of charge. There is also an official
îjand, organised by the workers and salaried employees, with
a membership of 137, and the Company pays all the cost of
uniforms, instruments and music and also organises courses in
music and various instruments.
*

What conclusions can be drawn from this rapid survey of
the relations between employers and employed in the Lens
Mining Company ? The conclusion has already been suggested
several times in the different chapters of this article, in the
phrase used on several occasions by the manager and by the
engineers in reply to questions : an agreement is usually arrived
at. This is the characteristic feature of this undertaking, and,
in the opinion of the present author, of the other mining undertakings in the North of France. Goodwill exists on both sides.
Both parties have a sincere love of the mining industry, despite
the difficulties of their work, its dangers and the monotony
(more apparent than real) of their daily life at a distance from
any large centre.
In the pits goodwill and camaraderie are found without
relaxation of the discipline, which the worker realises to be
necessary in view of the dangers by which he is constantly
threatened.
The same spirit of collaboration and of devotion to common
interests prevails in the discussions of the management of the
undertaking with the representatives of the Federation of Trade
Union Sections of the Lens Mining Company.
At Douai the representatives of the Miners' Union, while
strongly defending the interests of the miners, realise that
they must do nothing to endanger the future of the mining
industry. The Company's representatives show the same desire
to do all in their power to improve the welfare of their workers,
and the result is that there has been no labour dispute in the
last ten vears.

INDUSTRIAL RELATIONS

This article has described industrial relations with regard to
working conditions : recruiting, stability of employment, hours
of work and more especially the fixing of wages. The same
relations have been seen in the working of social insurance and
the close collaboration between the Mutual Aid Society organised
by the workers and the management of the mines. In each
village the doctor in charge of the dispensary is at the same time
an official of the management and an official of the workers'
Mutual Aid Society. The appliances in the dispensary are used
by both parties. There is no impenetrable barrier, no friction,
no conflict of competence and not even any discussion.
Reference has also been made to the large share which the
Mining Company allows to the workers in the control of social
institutions, for which at the same time the Company pays most
of the cost.
All these measures, like those which have been studied in
other undertakings, should be widely known and may provide
useful suggestions for similar industries in other countries.

APPENDIX I

Miners' Trade Union of the
Pas-de- Calais
14 March 1930.
Sir,
I beg to submit the enclosed list of special claims on behalf of t h e
underground workers.
I should be very glad if you would receive a delegation of the
workers to examine these claims at an early date and at the usual
hour (3.30 p.m.).
I have the honour to be, etc.
(Signed)

LIÉVAL,

Secretary to the Federation of
Trade Union Sections of the Lens
Mining Company.
The General Manager, Lens Mining Compan)% Lens.

THE

I.ENS

MINING

LIST

COMPANY

CLAIMS

(1) Pit No. 2 at Lens.
(a) That the allowance of fuel for surface workers in summer should
never be less than 4 quintals.
(b) Fixed rate of wages for repairers.
(c) The extension to other pits of allowances of old wood and an
increase in the amount allowed.
(d) That the distribution of coal vouchers for pensioned miners
should be carried out in each service and not at the central
otlices.
(c) That houses should lu: redecorated each time they change
hands.
(J) Abolition of the deduction for tools (disks, overalls, etc.).
{'1) Cleaning of the Coal.
(a) Improvement of the quality.
(b) That the deduction for dirty coal should be calculated according
to the classification of the workers.
(3) Pit 3.
• (a) That the workers who resume work a t the coal face after a
period of special work should return t o their original class.
(b) That the allowance of fuel to workers transferred to a different
class should not be reduced.
(c) That the grindstone should be driven by electricity.
(d) That the washing accommodation should be placed at the
disposal of the woTkers as early as possible, especially in the
ease of the workers coming from Frévent.
(4) Pits 4
(a)
( b)
(c)

and S.
Transfers in pit 4.
Low wages in pit 5.
Lack of material in both pits.

(5) Pit 7.
(a) That the last workers t o wash should have warmer water.
(b) That the workers from Wingles who work in pit 10 should be
brought back to the yard of pit 7 near the wash-house.
(c) T h a t the maximum weight of earth for reckoning deductions
for dirty coal should be raised.
(6) Pit 8. That an endeavour should be made to remove, the dust from
the main galleries, because it causes great inconvenience to
the workers returning to the foot of the shaft.
(7) Pit 15. That the allowance of fuel should be increased in the case of
workers living in houses which are known to be damp (this
demand applies to all villages).
(8) Pit 16.
(a) That surface workers should have their meal from 12 to 1 instead
of from 11 to 12.
(b) That the safety devices for the cages should be working when
the workers are using the cage (this question is a general one).
(c) That boards should be placed on the floor of each section of
the cages when the workers are descending or ascending.

INDUSTRIAL RELATIONS

(9) Pits 3 and 4 at Meurchin.
(a) Reinstatement of workers moved to a lower class.
(b) Abolition of the rejection"of trucks which are not sufficiently
full.
(c) Observance of the agreement concerning the wages of workers
between 13 and 16 years of age.
flO) Lighting in village No. 7 at Wingles on Sundays and holidays.
(11) Electric light inside and outside in the village " of the 90 ".
{12) Installation of electricity in houses belonging to the Company and
occupied by the workers in the communes of Wavrin and Annoeulin.
{18) Housing and heating for miners in receipt of pensions.

ii xidNaddv

Regulations concerning the Houses belonging to the Company
their Allocation, their Withdrawal, the Conditions
of Tenure, Supervision, etc.

Article 1
The houses of the Lens Mining Company shall be occupied only
with the permission of the Manager or of the engineers who have
powers to this effect after the keys have been handed over by the
superintendent of the village. The tenants shall not be entitled to
demand anything in the way of interior fittings, changes or exchanges
of houses and shall be obliged to conform with the instructions issued
to them.
Article 2
The houses of the Lens Mining Company shall be occupied by the
staff only for such time as they remain in the service or are not dismissed. The payment to be made in exchange for the accommodation
may differ for each house and shall not be considered as rent, but as
a fee corresponding to the general expenses of the Company for each
building ; the worker shall therefore not on this account consider
himself as being a tenant.

THE

LENS

MINING

COMPANY

Article 3
The various sums due by the occupiers shall be deducted from
their wages. The occupier when taking possession of the house allotted
to him, whether occupying it as a worker or in any other manner,
shall undertake in taking possession of the house to leave the building
as soon as he ceases to be employed or as soon as he is notified by
registered letter.
Article 4
The occupiers of houses are prohibited from taking lodgers not
belonging to the company, or unmarried couples, and in case of doing
so their permit to occupy the houses shall be withdrawn.
Article 6
In principle the occupier shall not be permitted to carry out any
trade in the houses belonging to the Company. If, however, as an
exceptional favour such permission is granted, the permission shall
be precarious and may be withdrawn if any complaint is put forward,
if the nature of the business might endanger the cleanliness or the '
preservation of the building, or for any other reason of which the
Company shall be the sole judge. Every request for a permit shall,
moreover, state the type of trade which is to .be undertaken.
Article 6
Occupiers are forbidden :
(1) to have within their houses stocks of straw, faggots, paraffin,
or other combustibles ;
(2) to have farmyard animals or animals kept in special buildings
other than goats, fowls, rabbits, pigeons, geese and ducks ;
(3) to keep in their houses explosives such as dynamite, gunpowder,
percussion caps, fireworks, etc. ;
(4) to light fires in the rooms in which there is no fireplace or no
tiled hearth, or to beat corn inside the house ;
(5) to carry live embers about the house or to deposit ashes therein ;
(6) to set up in the gardens attached to the houses any stack or
supply of faggots or other combustibles without permission ;
(7) to burn straw mattresses at a distance of less than 15 metres
from the dwelling house.
Article 7
The occupier shall be bound to maintain the house in good condition at his own expense. This shall not apply to the expenditure necessary for repairs (or for reasons of health) ; in this case the resultant
expense will be borne by the maintenance fund.
When a worker changes his dwelling at his own request he shall
pay the cost of whitewashing and the repair of any damage. The same
shall hold good in the case of departure, whether voluntary or
involuntary.
T

INDUSTRIAL RELATIONS

Article 8
The occupier shall not consume more than the quantity of water
strictly required by him, and for this purpose he is expressly forbidden
t o leave the taps open or to alter the water fittings in any way whatsoever. The slightest damage to the water supply shall be at once
reported to the superintendent of the village.
Article 9
Any occupier wishing to use the electric fittings shall communicate
the fact when the house is allotted to him. He shall be obliged to take
out a contract with the Lighting Company which holds the concession
and shall be bound to pay the fees and various charges made by this
company. In any case, whether he uses the electric fittings or not,
he shall be prohibited from making any change or addition.
Any damage discovered shall be estimated and the cost of repair
borne by the occupier. In case of any damage the occupier shall
inform the superintendent of the village and shall not be entitled to
make the repair himself.
Article 10
The houses shall be washed and the gutters cleaned twice a week
on Wednesday and Saturday, at an hour to be fixed by the superintendent of the village, so that the cleaning may take place simultaneously. When one or more houses are not inhabited the inhabitants
of the two nearest houses shall clean the gutter passing in front of those
houses.
Article 11
The cleaning of latrines may not take place except during the
months from September to March, unless special permission is given.
It shall be carried out under the supervision of the superintendent,
who shall order disinfectants to be used if necessary.
Article 12
Ashes and refuse shall be placed in boxes opposite the houses ;
they shall be removed by the appropriate service. The superintendent
of the village shall fix the hours and days for the collection of refuse.
The deposit of ashes or refuse in. the streets is prohibited.
Article 13
Occupiers shall not be permitted to make any change or addition
to the house which they inhabit or to construct any supplementarybuilding or change in any way the exterior, aspect of the houses. If
-in exceptional circumstances they are authorised to build a supplementary building, the latter must conform to the types laid down by the
building service.
Under special circumstances, at a request submitted through
the superintendent, the Company itself may build a dovecot or pigeon
house. The occupiers shall be permitted to use the same on payment

THE

LENS

MININO

COMPANY

of a monthly fee. If the house allotted to them is already provided
with such supplementary fittings, the latter shall not be changed in,
any way even if they are not used.
In case of departure the occupier, no matter what his claim to be
an occupant, shall leave any such building or any plantation in good
condition without any indemnity being paid, even although he himself bore the original cost.
Article 14
All woodwork, locks, window-panes, tiles, etc., which are broken,
destroyed or damaged in the dwellings by the occupiers shall be replaced
at their expense. All voluntary damage inside or outside shall also
be repaired at the cost of those responsible for it and fines may also
be collected according to the seriousness of the case.
Article 15
When an occupier is on the point of leaving his dwelling the superint"ndent sha'l visit the house and the occupier shall pay all sums due
for damage of any kind, for whitewashing, for occupation fees, etc.
Article 16
The superintendent may visit any house in his area and the occupiers must permit him to enter to ensure that the houses are clean
and that all the provisions of the present regulations are observed.
He shall inform the maintenance service of any repairs which are
required.
Article 17
Any occupiers who infringe the present regulations shall be liable
to a fine, without prejudice to any police penalties in case of offences
against persons or property.
In case of a recurrence of the offence, of habitual dirtiness in the
houses, or of damage to buildings, tiles, land, or plantations, as well
as in the cases referred to in Articles 4 and 5, the occupiers may be
ejected and may be dismissed from the service of the Company.
Article 18
The officials entrusted with the supervision and maintenance of
order in the Company's property and with the maintenance of the
houses are expressly prohibited from accepting any remuneration
from the occupiers.

J, the undersigned, acknowledge having received from the Lens
Mining Company a copy of the regulations concerning the Company's
houses.
I certify that I have studied these regulations and that I accept all
the terms, conditions and obligations laid down therein.

THE LONDON TRAFFIC COMBINE
The group of Companies forming what is generally but not
officially known as the London Traffic Combine is engaged in
passenger transport within the area of Greater London and it
carries the majority of those who travel to and fro in that area.
Before proceeding to describe industrial relations in the Combine
it would appear desirable to give a few facts to indicate the
scope and character of its work.
T H E S C O P E AND CHARACTER OF THE W O R K O F T H E

COMBINE

The term " London Traffic Combine" is used to denote the
transport companies controlled either directly or indirectly by
the Underground Electric Railways Company of London, Limited,
which is a holding company and was incorporated in 1902. The
transport companies under its control are as follows :
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Metropolitan District Railway Company.
London Electric Railway Company.
City and South London Railway Company.
Central London Railway Company.
London General Omnibus Company, Limited.
Metropolitan Electric Tramways Limited.
London United Tramways Limited.
South Metropolitan Electric Tramways and Lighting
Company, Limited.
(9) Tramways (M. E. T.) Omnibus Company, Limited.

These companies can be divided into two distinct groups.
The first group is known as the Common Fund Group of
Companies and consists of the first five companies named above,
which are controlled directly through their share capital by the
Underground Company.
By the London Electric Railways
Facilities Act of 1915 it was provided that the balance of revenue
of all these companies, after providing for working expenses and
other revenue liabilities, should be pooled and tin- available

102

INDUSTRIAL RELATIONS

balance divided amongst the several companies participating in
the Common Fund in agreed proportions.
The second group, consisting of the last four companies
named above,-is known as the London and Suburban Traction
Group of Companies ; they are controlled directly through their
share capital by the London and Suburban Traction Company,
Limited, which is a holding company and which in turn is controlled through its capital by the Underground Company.
In addition to the transport undertakings referred to above,
the Underground Company also wholly, or partially controls a
number of sma'ller undertakings which it is unnecessary here to
refer to.
"What is most striking in London", wrote Disraeli in Tancred,
"is its vastness." Equally might it be said that what is most
striking in the London Traffic Combine is its vastness. A few
figures, the significance of which will be indicated in detail later,
will show the immense scale of the organisation.
The transport companies controlled by the Underground
Company have a total capital of .£68,000,000 and employ a staff
of over 44,000 persons. The total number of passengers carried
in 1929 was 2,175,000,000. The total number of car-miles run
by the Companies' trains, omnibuses and trams in 1929 was
288,000,000.
The conception conveyed by such astronomical figures is pal«
and nebulous. Cokrar and form can be added to it by visitors to
London from that most familiar of all the familiar sights of
London streets, the unending stream of red omnibuses, and the
ubiquitous illuminated signs of the underground railways which
are ceaselessly engaged in passenger transport for some twenty
hours out of the twenty-four.
Unity in the direction of the policy of all the Companies
embraced in these two groups is ensured by the fact that Lord
Ashfield, who is Chairman and Managing Director of the supreme
holding Company, the Underground Electric Railways Company
of London, Limited, is also Chairman of each of the other Companies in both groups ; and that Mr. Frank Pick is Managing
Director of each of the operating Companies in both groups.
From the point of view of management all the Companies in
both groups are regarded as constituting a single unit. All higher
administration is centralised at the head office at 55 Broadway,
S.W.I. There is no duplication or overlapping. Thus, the Staff
Officer is responsible for industrial relations throughout the

THF. LONDON TRAFFIC COMBINE

108

whole Combine. In spite of the complexity of the organisation
of the Combine, and in spite of the complexity of the work it has
to do, its operations in all the variety of its activities are inspired
by a dominant unity of purpose arid of policy.
Brief mention may be made in passing of the financial results
of the operation of these Companies.
In 1929, the Common Fund Group of Companies paid in
dividends on ordinary stocks and shares £1,127,147, representing an average rate of 5.69 per cent. Each of t h e railway companies paid dividends upon its ordinary stocks and shares in
1929 at the rate of 5 per cent, for the year, and the London
General Omnibus Company Limited at the rate of 8 per cent.
free^of tax for the year.
The Tramways Companies, it should be pointed out, have
only recently come completely under the control of the Underground Company. For the year 1929, the Metropolitan Electric
and London United Tramways Companies did not pay any
dividend on their ordinary shares ; the South Metropolitan
Electric Tramway and Lighting Company paid an ordinary
dividend of 5 per cent.
In addition to their ordinary stocks and shares, the various
Companies have a variety of Debentures and Preference Shares,
ranging from 3 per cent, to 7 per cent.
The following table shows, for the Common Fund Companies,
the average return per annum paid on total capital, after operation of the Common Fund, by the Underground Company and
each of the operating Companies over a series of years.
AVERAGE PERCENTAGE UETUKN ON CAPITAL PAID B Y COMMON
COMPANIES, 1 9 1 3 AND 1 9 2 4 - 1 0 2 0

FUND

1913

192 i

m.-,

192G

1927

192S

1929

U.E.R.

a.9

4.0

4..".

5.0

3.9

G.:i

0.0

M.D.R.

:$.<)

4.1

4.2

t.r.

4.5

L.E.K.

2..-Í

4.0

:{.8

8.1»

4.1

4.5

C. & S.L.H.

2.1

4.:!

4.1

4.2

4.4

4.0

C.L.K.

:t.4

4.1

*•'.

4.7

L.G.O.

10.0

0.1

0.0

5.0

(¡.4

o.r.

. (¡.5

Company

4.0
4.7

M.E.T.

4.20

1.88

1.84

1.77

1.70

1.04

1.58

I..U.T.

2.01

i .:in

1 .¡JO

l.:59

!.»!>

l.:¡!l

1.30

104

INDUSTRIAL RELATIONS

The London Traffic Combine is inspired by the desire to be
of the best possible service to the travelling community. This
desire^ embodied in a definite policy, is manifested in various
ways. It is shown by the steady growth in the services given and
the steady improvement in the facilities afforded for cheap,
convenient, punctual and safe travel. Some figures may be given
at this point to indicate the immensity of the services thus
rendered to the travelling public. The following table indicates
by category for the year 1929, as compared with the year 1928,
the numbers of passengers carried, the number of car-miles ran
by Companies' trains, trams, and omnibuses, and the number of
cars and omnibuses owned.
Item

1929

Passengers carried :
Ordinary
Workmen
Seasons

Increase
over 1921

2,011,640,435
100,054,258
63,541,894

40,277,898
4,820,268
4,202,401

2,175,236,587

49,300,567

Average daily number of passengers
carried

6,435,611

155,150

Total number of car-miles run by
Companies' trains, omnibuses or
trams :
In relation to traffic receipts
Over all lines

280,763,620
288,161,517

6,828,632
7,047,50»

Number of cars or omnibuses owned

7,190

396

Total

A careful record is kept of all complaints received from passengers. In 1929 there were 11,097 complaints — only 5.1 per
million passengers carried. Rather fewer than half of these were
complaints against the staff.
Over a period of the last five years the volume of traffic
controlled by the Companies has regularly and steadily increased.
On the average there has been an increase of nearly 100,000,000
passengers per annum. Additional services have, however, been
given in order to deal with this increase in traffic. Between 1924
and 1929 traffic has increased by 25 per cent., and the corresponding car-miles run have increased by 24 per cent. Additional
service has, therefore, been given in accordance with the increasing needs of the travelling public.

THE LONDON TRAFFIC COMBINE

105

And what is the price to the public of the services rendered ?
On all trains, omnibuses and trams, fares vary with distance, the
minimum fare in each case being Id. The following table shows
for each of the companies the average rate of fare per mile and
Company

M. D. R.
L. E. R.
C. & S. L. R.
C. L. R.
L. G. O. C.
M. E. T.
L. U. T.
S. M. E. T.

Average rate of fare
charged per mile
(pence)

Average length of journey
possible for Id. fare
(miles)

0.776
0.862
0.723
0.961
0.956
0.824
0.837
0.923

1.288
1.161
1.384
1.041
1.046
1.214
1.195
1.083

THE ORGANISATION AND ADMINISTRATION
OF

INDUSTRIAL

RELATIONS

The London Traffic Combine keeps constantly in view that
its aim is and must be a single one, namely, the transport of
passengers from one part of London to another. Nothing is
allowed to obscure that aim. It is, however, surprising how many
different subsidiary operations are necessary in order to contribute to the carrying out of that purpose.
In addition to working the underground railways, omnibuses
and tramways, the Combine operates its own power station, and
its own repair shops, in which a certain amount of construction
is also done, effects its own publicity and advertising, and carries
out catering and a number of other subsidiary activities.
It is clear that no single form of industrial relations would be
adequate to cover such a wide range of functions and occupations
as the operations of the Combine involve ; and in fact, as we
shall see, there is considerable variety in the practice of industrial relations. This variety is, however, as the philosopher
would say, subsumed within the dominant unity of the policy
applied under the single direction of the Company.
The total staff employed by the Common Fund and Tramway
Companies is, as we have already pointed out, over 44,000. The
following table indicates by category and group of companies
the division of this total into its component parts.

106

INDUSTRIAL RELATIONS

STAFF

THE

COMMON

FUND

AND

TRAMWAY

COMPANIES

• Administrative

Supervisory

Wages

Total

L.G.O.C.

1,239

1,156

27,596

29,991

Railways

1,021

370

9,308

10,699

244

134

3,481

3,859

2,504

1,660

40,385

44,549

Group

Tramways
Total

The officer of the Companies primarily concerned with industrial relations is the Staff Officer. The Staff Officer is responsible
to and reports direct to the Managing Director, but acts in concert with the head of the several departments in matters concerning these departments. The various departments into which the
headquarters organisation of the Companies is divided are the
following :
Department of the Secretary and Treasurer (Undergound
Company and Common Fund Companies) ;
Department of the Comptroller and Accountant (Underground
Company and Common Fund Companies) ;
Department of the Chief Engineer (Railway Companies) ;
Department of the Chief Mechanical Engineer (Railway Companies) ;
Department of the Chief Engineer (London General Omnibus
Company) ;
Department of the Operating Manager (Railway Companies) ;
Department of the Operating Manager (London General
Omnibus Company) ;
Department of the Commercial Manager (All Companies) ;
Department of the Publicity Manager (All Companies) ;
Department of the Chief Stores Superintendent (All Companies) :
Department of the General Manager (Tramways) ;
Extra-Departmental Officers :
The Claims Agent ;
The Legal and Parliamentary Officer ;
The Staff Officer ;
The Estate Agent.

THE LONDON TRAFFIC COMBINE

107

The duties of the Staff Officer relate to all Companies and
comprise the review and check of salaries, wages, hours, conditions of service, and similar questions affecting the staffs as a
whole to secure uniform and consistent treatment ; the establishment and maintenance of records of salaries and classification
of administrative staff ; the conduct of the Suggestions Bureau ;
the conduct of the Employment Registry for administrative staff :
the control of common services (such äs central typing section,
printing and duplicating machines, traffic drafting section, etc.) ;
the management and control of mess-rooms, institutes, and other
premises set aside for the staff, and also the catering stores and
the costing work of the Catering Section ; the supervision of
welfare work ; the control and supervision of the office buildings,
furniture, telephones, and other office equipment of the Companies.
In the discharge of this dual responsibility of co-ordinating
officer and personnel director he has reporting to him an assistant
staff officer who is in charge of the catering service and incidental office services for the Combine, a chief assistant who is
in charge of rates, wages, agreements, staff meetings, and the
suggestion system for the Combine, and a principal clerk under
whose direction come all the records pertaining to the administrative staff of approximately 2,500 people. These three principal
assistants have a total of more than 50 people, acting mainly in
clerical capacities, as aids in the execution of their respective
responsibilities.
The organisation and administration for detailed and routine
matters pertaining to industrial relations in the several affiliated
companies and departments thereof are in principle decentralised
relative to the Combine, with responsibility centralised in one
individual in each operating unit. Under the principal officer of
each of the operating units is a staff clerk, who is responsible for
the maintenance and control of records and classification of the
local staff. In the shop units of the Combine, where there artlarge concentrations of workers, there are labour superintendents
reporting to the principal officer, who have responsibility for
staff discipline and training.
As a part of his responsibility for the co-ordination of industrial relations for the Combine,- the Staff Officer transmits all
press items relating to labour conditions in England, which arc
despatched with a memorandum to the company officers most
interested in the specific item, who in turn record their comments

108

INDUSTRIAL RELATIONS

as a guide to the Staff Officer in formulating a policy of action.
As general aids to effective administration the Management
prepares printed circulars describing operating practice, and
detailed organisation charts setting forth staff duties.

RELATIONS WITH J O I N T BODIES, EMPLOYERS'

ORGANISATIONS,

AND T R A D E U N I O N S ; S T A F F COUNCIL SCHEMES

In connection with the organisation and administration of
industrial relations the Combine is related to various joint bodies.
employers' organisations, and trade unions. Thus it is associated with the Railways Staff Conference, which deals with
working conditions on the railways. In connection with its
omnibuses, the Combine may and does associate itself with other
omnibus companies in its negotiations with the trade unions.
Finally, in connection with its tramway work, it has representation on the National Joint Industrial Council for the tramways.
It, however, prefers direct to joint negotiation, and would sever
its joint connection if it disagreed with the joint policy.
The Combine also maintains direct and independent relations
with the trade unions to which its employees belong. In the
main the operating staff of the underground railways belong to
the National Union of Railwaymen, the Associated Society of
Locomotive Engineers and Firemen, and the Railway Clerks'
Association ; the operating staff of the buses and tramways to
the Transport and General Workers' Union ; the staff of the
power station and sub-station to the National Union of Railwaymen and the Electrical Trades Union ; the staff of the overhaul
and repair shops of all Companies to the National Union of
Vehicle Builders, the Amalgamated Engineers' Union, and the
Transport and General Workers' Union. The clerical staff of all
Companies are represented by the Railway Clerks' Association.
The general attitude of the Combine towards the trade unions
is one of complete willingness to negotiate with regard to conditions. of work. The Combine makes it clear, however, that
none of its negotiations with the trade unions shall involve any
interference on the part of the trade unions in regard to questions
of management (including disciplinary matters).
Relations between the management and workers within the
Combine are extremely good. Though the Combine was in-

THE LONDON TRAFFIC COMBINE

109

volved in the General Strike of 1926, and, together with the Main
Line Railways, in the National Railway Strike of 1919, it is safe
to say that the origin of those strikes was foreign to conditions
of work within the system of the Combine.
In explaining in detail the machinery of industrial relations
it is necessary to keep distinct the three categories of work for
which the Combine is mainly responsible, namely, the railways,
the buses, and the tramways.

Railways
In the case of the railways, conditions of work are in general
regulated by a series of collective agreements, and other instru
ments, the basic agreement being the National Agreement of 1920,
concluded between, on the one hand, all the railway companies
of the country and, on the other, the railway unions.
If questions now arise between the Companies and the railway unions with regard to new questions at issue, they are in
the first place discussed directly between the Companies and the
union concerned. Then, if an agreement cannot be reached the
questions at issue may, by agreement, be referred to the Industrial
Court. 1 If considered desirable, however, they may, in the first
instance, be referred to the Railways Staff Conference with a
view to ascertaining whether the Main Line Railways are likely to
be involved, so that in such event the matters could be discussed
by the Railways Staff Conference with the unions concerned and
thereafter — failing agreement — go to the Industria'! Court for
a ruling.
In addition to this machinery for negotiations between the
Companies and the trade unions, a scheme is in operation which
provides for discussion and negotiation within the Companies
between their own officers and representatives of the men
employed. This is known as the "London Underground Railways
Staff Council Scheme" and deals with questions of wages, hours.
and conditions of service, and other matters affecting the staff.
This scheme was agreed upon in 1921 between the Companies
on the one hand and the National Union of Raîlwaymen, the
1
For the functions and procedure of the Industrial Court, cf. International
Labour Reoiac, Vol. Ill, Nos. 1-2, July-Aug. 1921, pp. 41-50 : "The British Industrial
Court", by Sir William MACKENZIE.

INDUSTRIAL RELATIONS

Associated Society of Locomotive Engineers and Firemen, and
the Railway Clerks' Association on the other.
One of the first provisions of this scheme — a provision
which is common to all the industrial relations schemes in operalion in the Combine — is that nothing in the scheme shall be
taken to cancel the regular channels by which employees communicate with the officials and officers of the Companies on
matters which concern them, it being understood that every
employee in the first instance is to address his case to the official
immediately over him, or through him to the official or officer
authorised to deal with it. It is only if a satisfactory settlement
should fail to be arrived at by this normal procedure that the
special scheme applies.
The scheme provides a hierarchy of three series of committees
or councils. Lowest in the hierarchy come "sectional committees" established in such numbers as are necessary to provide
a recognised means for the discussion and settlement between
the employees and the local officials of questions arising out of
their employment, such as (a) the local interpretation and administration of the agreements governing employment; (b) questions relating to conditions of employment, i.e. working hours,
reliefs, timekeeping, holidays, rosters, seniority, suggestions, and
welfare ; (c) questions of mutual interest affecting the efficiency
or economy of operation. Some ten of these sectional committees
have been set up, each comprising from six to fourteen members.
Each sectional committee consists of a certain number of elected
members of the staff, together with not more than a corresponding number of officials nominated on behalf of the companies.
No sectional committee may come to a decision on any matter
which does not fall within the authority of the officials who are
members of the committee ; nor may it make any vital alteration
in existing practice in regard to the conditions of any grade
of the staff until a fortnight has elapsed to enable the staff
concerned to express their views thereon.
While, however,
sectional committees may not reach decisions, they may discuss
questions not covered by this provision, and their recommendations may be put forward to the management of the Companion
through the regular channels.
In the second grade of the hierarchy are "departmental .
councils " for the discussion and settlement between the representatives of the employees and the higher officials of the Companies of questions common to two or more sectional committees.

THE LONDON TRAFFIC COMBINE

111

There are four departmental councils : (1) clerical, (2) traffic,
(3) supervisory, and (4) engineering. The membership of the
councils is composed, on the one hand, of members of the staff
nominated by and from the respective sectional committees, and,
on the other hand, of officers and officials, nominated by the
Companies, not to exceed in numl>er the representatives of the
employees.
Finally, and at the apex of the scheme, there is an "Underground Railway Council". This deals with any questions which
may concern two or more departmental councils ; it consists of
the proper departmental councils sitting together. Any questions
involving all departments come before the full Underground Railway Council, consisting of all departmental councils sitting
together.
Each council and each sectional committee has two secretaries, one nominated by the Companies, and one, who need not
necessarily be in the employ of the Companies, nominated by the
elected representatives of the staff. No items may be placed on
the agenda of a meeting except by agreement of the two secretaries. If a sectional committee, a departmental council, or the
Underground Railway Council fails to come to a satisfactory
settlement by agreement, the question under discussion is referred
in the first instance to the management of the Companies, and
subsequently, if necessary, to the "negotiating committee". T h e
negotiating committee consists of representatives of the Companies and of the trade unions concerned in the scheme. This
negotiating committee deals in particular with every alteration
or variation of any agreement between the Companies and the
trade unions governing employment.
To be effective, every decision, whether of a sectional committee, departmental council, underground railway council, or
negotiating committee, must be by the agreement of both sides.
With the exception of the last named, the committees remain in
office for two years. The scheme contains details with regard
to regulations governing the election of representatives of the
staff to the sectional committees, and gives the schedule of grades
of the staff covered by the scheme.
Minutes of the proceedings of the various councils and committees are carefully kept, roneoed and circulated. An examination of these minutes shows clearly that great use is made of
this machinery for settling the difficulties and grievances which

112

INDUSTRIAL RELATIONS

inevitably arise in the day-to-day operations of such a complicated undertaking as the Underground Railways.
In the great majority of questions which come before the
committees and councils agreement is reached between the two
sides represented on the committees and councils. In some cases
where agreement cannot be reached at first, the question is
deferred and further investigation enables agreement ultimately
to be obtained.
In addition to the general joint machinery which has just
been described, provision is made for special machinery in the
case of three other categories of men employed by the Underground Railway Companies to whom the General Staff Council
Scheme does not apply, as follows. The first two of these additional schemes do not provide for joint committees, but set up
representative shop committees of the men for negotiation with
the Management.
(1) Departmental Shop Committees and Lines Committee for
Staff employed in the Mechanical Engineering, the Civil Engineering, and the Signal Engineering Departments,
represented
by the National Union of Railwaymen.
This scheme was
accepted on 27 August 1925, on behalf of the Companies on the
one hand and the National Union of Railwaymen and the shop
staff concerned on the other hand. It consists of three departmental Shop Committees covering (a) the Mechanical Engineering Department, (ft) the Civil Engineering Department, and
(c) the Signal Engineering Department.
Above these three parallel departmental Shop Committees,
there is a Lines Committee, the object of which is to provide
machinery additional to that existing for the departmental Shop
Committee, for the discussion and settlement (subject to National
Agreements and/or Awards) of questions relating to rates of pay,
hours of duty, conditions of service and other matters, which are
of common interest or concern to the staff of the above-mentioned departments who are represented by the National Union of
Railwaymen, and with which the departmental Shop Committees
are not competent to deal.
The Lines Committee consists of seven representatives of the
staff nominated by the three departmental Shop Committees.
(2) Departmental Committees and Lines Committee for Electrical Staff employed in the Mechanical Engineering and the

THE LONDON' TRAFFIC COMBINE

113

Signal Engineering Departments, represented by the . Electrical
Trades Union. This scheme was accepted on 31 October 1924,
on behalf of the Companies on the one hand and the electrical
staff concerned on the other. It consists of two departmental
committees covering (a) the Mechanical Engineering Department
and (b) the Signal Engineering. Department.
In addition to these departmental committees, there is a Lines
Committee which functions in a similar manner to the Lines
Committee referred to above for the staff represented by the
National Union of Railwaymen. The Lines Committee consists
of six representatives of the staff nominated by the two departmental committees.
These two schemes are now in course of review, and will be
modified in order to fit in with departmental reorganisations
which have taken place ; the main principles of the schemes,
however, will not be altered.
13) A Local Committee (which is a joint committee) for Staff
solely employed in Railway Electricity Generating Stations and
Sub-stalions.
This Committee was set up on 26 April 1928, in
accordance with a national agreement of 22 August 1927, between
all railway companies on the one hand and the National Union of
Railwaymen and the Electrical Trades Union on the other hand,
to afford facilities for discussion of questions relating to rates
of pay. hours of duty, and general conditions of employment.
The procedure under this scheme is as follows :
(a) An employee, or group of employees, who desire to raise
any question within the scope of this scheme in which he or they
are directly concerned, shall, in the first instance, make representations
to the Foreman or other official in charge.
(b) If the answer to the application is not regarded as satisfactory, the employee or group of employees concerned shall refer
the matter to their representative or representatives on the Local
Committee, who will discuss the matter with the Assistant Engineer
concerned.
(c) In the event of failure to secure agreement at the meeting
between the Sectional Staff representatives and the Assistant Engineer
concerned, the matter will be referred to the full Local Committee.
(d) In the event of failure to secure agreement at-the full Local
Committee, direct negotiations may, if required, be opened by (a)
the District Staff Officer of the trade union concerned, or (¿;) theHeadquarters Officials of the trade unions concerned, jointly or
severally, with the Chief Engineer of the London Underground Railways.

114

INDUSTRIAL RELATIONS

The Local Committee is part of the general scheme of national
organisation. It is, therefore, provided that :
If the trade unions desire to raise any question of a general character within the scope of this scheme, they may take the matter up
jointly with the General Managers of the Railway Companies parties
hereto.
A National Council to be established for dealing with national
questions within the scheme affecting the employees concerned.
Any necessary negotiations-in regard to such national or general
questions will be conducted on behalf of the Railway Companies
by the Railways Staff Conference, and on behalf of the trade unions
by eight delegates to be appointed by the trade unions, and if, failing
a settlement, it is decided to submit to arbitration any matter in
difference, the reference shall be to the Industrial Court.
Omnibuses
In the case of the omnibuses the problem of industrial relations is in one sense simpler than in the case of the railways.
This is due to the fact that whereas in the case of the railways
basic conditions are generally fixed between on the one hand the
Main Line Railways and the Underground Railways and on the
other the three railway trade unions, in the case of the omnibuses
basic conditions are regulated between the L.G:O.C. 1 on the
one hand and the unions concerned on the other.
Conditions of work for drivers and conductors are regulated
by an agreement signed on 31 May 1929, between the London
General Omnibus Company, Limited, and two other Omnibus
Companies on the one hand, and the Transport and General
Workers' Union on the other. This Agreement took the place
of an Agreement of 1926.
The old Agreement was terminated by the Transport Workers,
and various demands for improvements in conditions were made.
Finally, after some months of negotiations, this new Agreement
was reached. It includes concessions with regard to meal times
and annual holidays. Provision is made in this Agreement with
regard to disputes arising in the interpretation of the Agreement.
This provision is as follows :
Any dispute as to the interpretation of any clause of this agreement or of any agreed minute relating to practices, payments and
1
With the L.G.O.C. are sometimes associated other omnibus companies,
which, however, are of much less magnitude than the L.G.O.C.

THE LONDON TRAFFIC COMBINE

115

privileges arising out of this agreement or covered by clause 14 hereof,
shall be discussed at a meeting between representatives of the Companies and of the Union, and failing agreement such dispute shall
be referred to a Board of Referees, consisting of two members to be
elected by the Companies and two by the Union, with a Chairman
to be mutually agreed on, or, failing agreement, to be appointed by
the Minister of Labour.
In the case of the omnibuses, there is no general scheme
corresponding to the Staff Council Scheme of the Underground
Railways. The reason is that the organisation of the L.G.O.C.
on the one hand, and of the Transport and General Workers'
Union on the other, makes it relatively simple to arrange for
direct negotiations between the management of the L.G.O.C.
and the Union at every stage in the hierarchy of administration.
In order to understand this system of negotiations, it is necessary to know how the L.G.O.C. system is organised and how the
Transport and General Workers' Union is organised.
The organisation of the administration of the omnibuses
comprises a hierarchy of three elements—first, there is the garage,
from which a number of buses start on the roads ; secondly, the
district, of which there are 15, each including a certain number
of garages ; and finally, the division, including a certain number
of districts. There are three divisions, which in turn report to
Headquarters. Officials of the Company are in charge of each
garage, each district, and each division.
The corresponding local organisation of the trade union is
as follows.1 In each garage there is a branch of the Union, with
its Branch Secretary. Each branch elects one representative to
the divisional committee. The divisional committees, of which
there are three, corresponding to the three divisions into which
the Company is organised for operation, each elect two members
to the Central Bus Committee. The Central Bus Committee,
consisting of these six members plus two representatives of the
workers in two other omnibus companies and a representative
for the indoor staffs, is responsible, under the Executive of the
Union, for all dealings with the Company, with regard to questions arising in connection with the schedules' and rotas on which
the men work. The Union has four officials operating under the
Central Bus Committee and London District Secretary, who
1
The information in this paragraph with regard to Union organisation was
supplied by Mr. Harold E. Clay, of the Transport and General Workers' I'nion.

116

INDUSTRIAL RELATIONS

undertake this work ; one of these officials is the Schedules
Officer, the other three are Divisional Officers.
If any grievance with regard to schedules and rotas should
arise in a garage, it is normally brought to the attention of the
Chief Depot Inspector (the head of the garage) by the Union
Branch Secretary, and endeavours are made to settle the difficulty directly and immediately. If agreement cannot be
reached locally, provision is made by an agreement of 10 July
1929 between the Company and the Transport and General
Workers' Union for the joint consideration of the grievance.
This organisation for dealing with complaints is as follows :

Schedule and Rota Complaints
1. Complaints which arise in connection with schedules or rotas
shall, in the first instance, be considered by the Chief Depot Inspector
of the garage concerned and a Schedule Representative of the
Union.
2. In the event of the Chief Depot Inspector and the Schedule
Representative of the Union being unable satisfactorily to adjust
the complaint, it will then be formulated, on a form to be provided,
to the Joint Secretaries of the Committee set out below.
3. The Joint Secretaries will then endeavour to reach a settlement
of the complaint, taking such instructions or advice as may be
necessary for the purpose.
4. If the Joint Secretaries fail to reach a settlement of the difficulty or if a question of principle is involved, the matter shall immediately be considered by the following Committee :
Representing the Omnibus Company :
Traffic Superintendent ;
Superintendent of Schedules ;
Staff Superintendent (Operating) ;
Joint Secretary.
Representing the Trade Union :
Schedule Sub-Committee—3 members ;
Schedule Officer of the Union and Joint Secretary.
The Union shall be entitled to arrange for a local representative
at representatives to be present either when the complaint is being
discussed by the Joint Secretaries, or by the whole Committee. The
Local Officials of the Company may also be present if required to
assist in the consideration of the complaint.
The Joint Secretaries shall be responsible for the convening of
meetings of the Committee ; for taking minutes, and recording
decisions both in the case of meetings between themselves, as provided
in paragraph 3 above, and of meetings of the full Committee.

THE LONDON TRAFFIC COMBINE

"117

General Complaints
1. General complaints shall in the first instance be considered
by the Chief Depot Inspector of the garage concerned and the Branch
Representatives of the Trade Union.
2. In cases where a settlement cannot be reached locally, the matter
will be referred, on a form to be provided, to the Divisional Superintendent of the Company and the Divisional Officer of thé Union.
3. If the complaint cannot be settled in accordance with the
procedure set out in paragraphs 1 and 2, the details of the complaintwill be forwarded to the Traffic Superintendent of the Company
and the London District Secretary of the Union.
Where complaints are lodged immediate attention will be given
to them in the manner provided so that a speedy decision may be
arrived at.
The machinery which has just been described for direct
negotiation between the management and the Trade Union
covers all men employed in the direct operation of the buses.
There are, however, four other main categories of workers
employed by the L.G.O.C, who are not covered by this machinery
and for whom special schemes have been set up.
(1) A Works Committee has been set up at the Chiswick
Works, in which are situated the Repair Shops for the buses.
The men concerned are, for the most part, members of the
Transport and General Workers' Union, "the Amalgamated
Society of Engineers, the Electrical Trades Union, and the
National Union of Vehicle Builders. This Works Committee is
recognised both by the Management and by the trade unions
concerned.
(2) Provision is also made in the case of the ticket-sorting
staff for a Staff Committee to deal with questions relating to
conditions of service and other matters affecting the staff. This
staff is composed of women who work at Chiswick.
This
scheme was agreed upon by the Management on the one hand
and the Railway Clerks' Association, to which the ticket-sorting
staff belong, on the other.
(3) and (4) In the case of the administrative technical
grades and traffic supervisory grades, provision is made for
granting them representation for the discussion of conditions of
work with the Management. These administrative technical
grades and traffic supervisory grades comprise men in positions
of authority and responsibility and they are not represented by
the trade unions.

118

INDUSTRIAL RELATIONS

Tramways
The Companies are represented on the National Joint Industrial Council for the Tramway Industry, and also on its District
Council for the Metropolitan area. Their representative has
frequently been the Chairman of the National Council. The
objects and functions of the National Joint Industrial Council
for the Tramway Industry and its District Council are as follows :
Objects of the National Council. To secure the largest possible
measure of joint action between employers and employees by the
regular consideration and settlement of matters affecting the wellbeing and progress of the tramway industry as part of the national life.
It will be open to the Council to take any action that falls within
the scope of this general definition. Its more specific objects will
be the consideration and (if found practicable) settlement of matters
relating to the following :
(a)

The establishment and definition of functions of District
Councils and Works Committees.
(b) Effecting the inclusion of all employers and employees in
their respective organisations, and securing the observance
by them of collective agreements.
(c) Wages, hours and working conditions which affect the industry
as a whole. The rates of wages and conditions of service
of the Supervisory, Administrative and Clerical Staffs shall
not be within the objects of the Council.
(d) The machinery for the settlement of differences between
the parties and sections in the industry.
(e) The measures for securing regular employment, while providing the public with the most efficient services.
(/) The improvement of conditions with a view to removing
danger to the health of the workpeople and minimising
accidents.
(g) The safeguarding of the rights of workpeople inventing or
designing improvements in machinery and method.
(h) Training for the industry, and co-operation with educational
authorities in arranging education in all its branches for
the industry.
(i) Enquiries into special problems of the industry, including
the study of the organisation and methods of the industry
in this and other countries, and, where desirable, the publication of reports.
(j) The collection of statistics and information on matters appertaining to the industry.
(k) Representation to any appropriate authority of the needs
and opinions of the industry in respect of any matters affecting the constitution and continuance of the Undertakings
and the material well-being of all concerned in the industry.

THE LONDON TRAFFIC COMBINE

119

(I)

Any matters that may be referred to it by the Government
or any Government Department.
(m) Co-operation with the Joint Industrial Councils for other
Industries and other bodies to deal with problems of common
interest.
Functions of the District Councils. The main functions of the
District Councils shall be as follows :
1. To consider any matters that may be referred to them by
the National Council, and to take executive action within their
districts in connection with decisions arrived at and matters deputed
to them by it ; to consider any matters of interest to their district,
including matters referred to them by Works Committees, and to
take executive action with regard to matters that affect only their
particular district, subject to the right of the National Council to
veto any action if it be found to involve the interests of other districts ;
to make recommendations to the National Council.
Among the more specific functions falling under this head are :
(a)

The consideration of working conditions, including the
codification, unification, and amendment of working rules
relating to holidays, juvenile labour, overtime, the shift
system, and similar matters.
(ft) The co-ordination of local working conditions.
(c) General district matters relating to the well-being of the workpeople.
(d) The consideration of safeguarding the rights of workpeople
inventing or designing improvements in machinery and
method.
• (e) The improvement of conditions with a view to removing
" danger to the health of the workpeople and minimising
accidents.
(/) Training for the industry, and co-operation with the educational authorities in arranging education in all its branches
for the industry.
2. Co-operation with the.District Councils for other industries
to deal with problems of common interest.
3. To consider any differences which may be referred to them
and cannot be settled within an individual undertaking, and, if
necessary, to refer the same to the National Council.
4. It is competent for District Councils to consider and arrive
at decisions upon any of the subjects above referred to. No decision
which may affect other districts shall become operative until it has
been confirmed by the National Council.
Questions at issue between the Companies and their Tramway
employees, most of whom belong to the Transport and General
Workers' Union, are either settled by direct negotiations or are
referred to the District Council or National Joint Industrial

ISO

INDUSTRIAL RELATIONS

Council. On one occasion, in 1924, it became clear that the
issues were so serious that it would be necessary for the National
Joint Industrial Council to constitute special machinery to deal
with them.
In the month of May 1924 the National Joint Industrial Council
•appointed a Special Committee "to enquire and report as to what
steps, if any, may be taken to improve the existing machinery of
the Council, with a special reference to the procedure to be
followed in the event of a failure to arrive at a decision on any
question." In an Interim Report the Special Committee reconi
mended, among other matters, the constitution of a "Tribunal"
to deal with matters referred to it by the National Council in
respect to the revision or modification of any national agreement,
and such other matters of national importance as the Council
might from time to time decide. The Special Committee also
recommended that the Tribunal should consist of ten members
of the National Council, five to be elected by each side, with the
addition of four persons who are not members of the National
Council, two to be nominated by each side, together with a
Chairman appointed by the National Council. The Special Committee's recommendations further dealt with matters affecting
the procedure of the Tribunal.
This Interim Report was received by the National Council on
10 July 1924, and recommended by them to the constituent associations for adoption. The Report was adopted by the constituent
associations and this was duly communicated to tne National
Council. The National Council was thereupon constituted a
Tribunal for the Tramway Industry.
This Tribunal, after hearing both sides, issued on 1 November
1924 a unanimous decision and report on grouping, standardisation, increase in wages, stabilisation, and night work. Basic
conditions continue to be regulated in accordance with this
report.
In the case of the administrative clerical staff employed on
the Tramways, an Agreement was made on 10 January 1925,
between the Tramway Companies on the one hand and the
Railway Clerks' Association on the other, for the establishment
of an administrative clerical staff committee scheme for the
discussion of questions relative to rates of pay, hours, conditions
of work, conditions of service, and other matters affecting the
staff. This scheme is generally similar to that which operates in
the case of the head office administrative clerical staff.

THE LONDON TRAFFIC COMBINE

Administrative

121

Clerical Staff

The conditions of work of the administrative clerical staff
employed at Headquarters are regulated in accordance with a
series of collective agreements and other instruments, the basic
agreement being that of 1920 between the Committee of Railway
Managers and the National Union of Railwaymen and the
Railway Clerks' Association.
Within the combine there is in existence an administrative
clerical staff committee scheme for dealing with questions of
wages, hours, conditions of service, and other matters affecting
the staff. This scheme, which applies only to members of the
male and female administrative clerical staff below the " special " class, was brought into operation by an Agreement of
11 August 1922 between the London General Omnibus Company
and the Railway Clerks' Association.
The functions and
mechanism of this Committee are generally similar to those of
the Sectional Committees under the Staff ^ u n c i l Scheme on the .
railways.
Half-Yeariy

Salaries

Committee

Provision is made for the reviewing of salaries of the administrative (clerical and technical) grade twice a year — shortly
before 1 January and 1 July—by the Managing Director, assisted
by the Principal Officers of the Companies, i.e. the heads of the
departments, sitting as a Committee called the " Salaries Committee". The object of dealing with the matter in this manner
is to ensure uniformity of treatment throughout the departments,
but the decision of the Managing Director in each case is final.
The Principal Officers forward to the Staff Officer any proposals
they have to make. The Staff Officer, who holds a central record
of all members of the administrative staff, compiles data in
respect of each case submitted, for the assistance of the Committee in considering the recommendations put forward.
The proposals may consist of recommendations for :
(1) Promotion,

involving a passage from class to class.

(2) Merit Increases.
These are special increases given in
recognition of particularly good service. They are distinct
from the normal increments given within the classes in
accordance with the scales provided in the agreement.

122

INDUSTRIAL RELATIONS

(3) Lump-Sum Bonuses.
These may be granted in certain
exceptional cases where some special work has been done
by an official in circumstances which would not come
under category \2) above.
The total cost of the recommendations approved by the
Managing Director at the Salaries Committee is submitted to the
Chairman of the Companies for final confirmation.
The Salaries Committee's functions are confined to recommendations for promotion, etc., in individual cases. It does not
deal with recommendations for increases in the number of staff
employed by the respective departments, such recommendations
being made direct to the Chairman's Meeting, which is a regular
weekly meeting of the Principal Officers presided over by the
Chairman of the Companies.
If a member of the administrative staff considers that his
present responsibilities warrant a higher salary than he is receiving, he may make application to his Departmental Officer. If
the Officer does not approve, or if he submits a recommendation
which is not approved by the Managing Director at the meeting
of the Salaries Committee, the employee in question has the
right to appeal to a Committee called the "Salaries Appeals Committee", which consists of the Managing Director, supported by
two of the Principal Officers not directly concerned in the appeal.
The appellant may, if he so desires,- be represented at the meeting
of the Appeals Committee at which his appeal is to be heard, by an
advocate, who may be either a fellow employee or a representative
of a trade union. The Officer under whom the appellant is
employed is also present when the case is heard.
The Appeals Committee usually sits about one month after the
meeting of the Salaries Committee, in order that there may be
no undue delay in dealing with any appeals which may arise
after the decisions of the Salaries Committee are made known.

Suggestions

Scheme

It is convenient, at this point, as a further instance of collaboration between the Management and the workers, to consider
the Suggestions Scheme. The Companies have in operation a
Suggestions Scheme whereby any member of the staff may
submit suggestions for improvements of any kind in regard to

THE LONDON TRAFFIC COMBINE

123

either the running of thé railways, omnibuses, or tramways, or
the plant and equipment used.
Suggestions are invited from employees in regard to such
subjects as :
Methods of increasing traffic and the provision of better
traffic facilities ;
Improved methods of working trains, omnibuses, and trams ;
Improvements in rolling stock and equipment ;
Improvements in connection with works, garages, depots,
stations, lifts and escalators, etc.;
Improved methods of lighting, heating, ventilation, signalling,
etc.
Suggestions submitted for consideration under this scheme
must contain something original and show evidence of having
been carefully thought out. Merely to call attention to an
omission or error or to propose the extension of some existing
practice,.is insufficient, unless the matter is of some exceptional
importance.
Forms on which suggestions must be submitted (and envelopes for despatching them to'55 Broadwaj7) can be obtained at
every local office.
The form is so arranged that the upper portion, giving the
name, occupation, and other particulars of the suggester will be
detached in the Suggestions Bureau prior to forwarding the
suggestion to the departments concerned for report. The anonymity of those putting forward suggestions is thus preserved
whilst the proposals are under consideration.
The Suggestions Scheme in its present. form has been in
operation since 1917. Since its inauguration, 52,856 suggestions
have been received. During 1929, 3,632 suggestions were submitted, of which 153 were wholly adopted and monetary awards
granted.
There were 111 other cases in which awards were made either
for suggestions leading to some definite action being taken or
considered of sufficient merit to justify recognition.
The usual award made for adopted suggestions (the majority
of which relate mainly to detail and assist to Reep a standard of
accuracy arid care) is £1. Higher amounts have, however, not
infrequently been paid. In one case an award of £ 2 5 was made

124

INDUSTRIAL RELATIONS

to an assistant craftsman at one of the Companies' works for an
improvement in connection with the working of valve-grinding
machines. A list of awards is published monthly in the Traffic
Circulars and posted on the notice boards. Particulars of the
awards are also entered on the employees' staff records.
It is of interest to note that it has been ascertained that a
much larger proportion of suggestions is received during the
winter months than in summer. The obvious deduction is that
the men occupy some of their leisure during the winter month?
in thinking out suggestions for improvements.

G E N E R A L P R I N C I P L E S OF I N D U S T R I A L

RELATIONS

It is clear from the account that has been given that the
machinery for discussion between Management and workers
assumes a wide variety of forms. Can any underlying principle?
be discerned ? Is there any unity in all the diversity of application ? In our opinion, the policy of the Combine in its relatimi
with its workers is inspired by a unity of purpose which consider?
that consistency is important but symmetry is not. The general
aim has been to provide everywhere for machinery .to facilitate
relations between Management and workers. The precise form
of the machinery adopted necessarily varies, however, in accordance with circumstances.
The general principles of industrial relations in the Combine.
it may be suggested, are the following :
(1) Basic conditions of work are regulated in accordance
with collective agreements. In all cases the Combine has been
associated with other undertakings engaged in passenger transport in the negotiations with the trade unions which led to these
collective agreements.
(2) The Combine remains in direct contact with the trade
unions concerned, and makes direct settlements with them on
matters which concern its employees.
(3) In conjunction with the trade unions concerned the
Combine has set up a wide variety of schemes to facilitate
industrial relation« within the Combine.
(4) Negotiations between the Combine and the trade unions
and between Management and workers cover wages, hours, an>l

125

THE LONDON TRAFFIC COMBINE

conditions of service. They expressly exclude questions of
management and discipline. 1
(5) Nothing in the various schemes is to be taken to cancel
the regular channels by which employees communicate with the
officials and officers on matters which concern them, it being
understood that every employee shall, in the first instance,
address his case to the official immediately over him, or through
him to the official or officer authorised to deal with it. It is
a gênerai principle that all disputes shall be dealt with in the
first place locally and as rapidly as possible.

W A G E S , H O U R S , AND G E N E R A L CONDITIONS O F S E R V I C E

The main conditions of service of wage grades employed by
the London General Omnibus Company, the Underground Railway Companies, and the Tramway Companies axe detailed in the
table on pages 126 to 129. Conditions or service of similar grades
employed by the Main Line Railways, in accordance with the
Agreement with the National Union of Railwaymen dated 9 April
1929, are given for purposes of comparison.
It is to be noted that the standard-rates of wages indicated
in the chart are in fact considerably exceeded by the average
earnings of the men. The table on page 130 shows for selected
categories the standard rates and average earnings for a week.
The administrative clerical staff is classified in eight grades,
the denomination and remuneration of which are as follows :
Grade

Junior (15 - 17 years of age)
Class 5 (age scale from 18 to 31)
,, 4 1
,.
3 1
„ 2 i

„
I1
Special
Assistant
1

Salary

£45
£90
£220
£250
£280
£330
£380
£650

£65
£210
£240
£270
£310
£360
£600
£900

Biennial increments of £10 per annum.

1
Questions of discipline are dealt with by disciplinary boards representing
exclusively the Management. A man brought before a disciplinary board is,
however, permitted to have the assistance, in presenting his case, of a representative
of his trade union.

COMPARISON OF KATES OF PAY AND MAIN CONDITIONS OF SERVICE OF
BY THE MAIN LINE IIAILWAYS AND Till'. LONDON TRA
Main Line Railways

L.G.O.C.

Motor Bus Drivers and Conductors (London Area)

Drivers and Conductors

- Condition

Rates of pay Motor bus drivers (public) 64s.*
(per week)
Motor bus conductors 58s.
These rates are subject to the 2 y2 per cent, reduction a t present applicable to Main Line Railways.
* The agreement provides also for leading motor
bus drivers Class 1 (74s.) and Class 2 (68s.) for
men who are responsible for the supervision of
motor drivers at a small depot, including running repairs, stores, and discipline.

Drivers :
Minimum 80s. 0(1.
Maximum 80s. 6d.

Conductors :
Minimum 7!is. 6d.
Maximum 79s. 6d.

(Maximum rate
6 months.)

after

Class 1 : where weekly depot mileage is above
1,000 per week.
Class 2 : where weekly depot mileage is 1,000
or below per week.

Normal
working
week

48 hours, usually consisting of 6 turns of duty
rostercd as the Company may require. Where
necessary, the 48 hours may be worked in less
than tt turns, provided the duration of each turn
inclusive of meal intervals does not exceed
\'£ hours. Kach rostercd turn of duty to carry
not less than 8 hours' pay at the standard rate.

48.hours, consisting of
6 scheduled duties each
carrying not less than
8 hours' pay at the
standard rate.

] Spreadover
and hours
I of duty
I

Spreadover turns of duty to be worked as and
when required, subject to maximum spreadover
of 12 hours for any one turn of duty as mentioned
above.

Weekdays :
75 per cent, of the
scheduled duties not to
exceed 8V2 hours' work
in 9 hours :
15 per cent, not to
exceed 9 hours' work in
10 hours ;
10 per cent, not to
exceed 9 horn's' work in
12 hours.

Dr
wh
str
wh
rel
pe
on
30
an
ma
ad
be
of

Sundays and Bank holidays :
80 per cent, of the
duties not to exceed 8 y2
hours' work in 9 hours ;
20 per cent, not to
exceed 9 hours' work in
10 hours.

wh
sp
wh
ho
of

N.B. On all duties where
spreadover exceeds 10
hours, an allowance of
Is. öd. is paid.

Cìn

wh
str
inc

(The above are calculated on a route basis
—two routes from one
garage treated as one.)

du
ma
ad

¡5
: m
! ad
at
| aI wh
! lin
I 12
: 1111
!

COMPARISON OF RATES OF PAY A N D MAIN CONDITIONS OK SERVICE OF S
IIY THE MAIN LINE KAII.AVAYS A N D THE LONDON TRAFFIC CO
.Main l.inu ltailways

L.ii.O.l'..

liutiilitinii

Mulur l>us Drivers and lámduclors (Lomluu Area)
Meal

reliefs

Hosiers of
duties

One or t w o meal intervals t o be t a k e n
reasonable times c o n v e n i e n t to t.lie service
eaeb rostercd turn of d u t y .

N o special provision.

I iriv ITS anil Uuiulurliirs
at
in

U n t i e s with spreadovcr
not e x c e e d i n g 'J hours,
minimum
20
minutes.
m a x i m u m 30
minutes.
If over 30 m i n u t e s , the
e x c e s s to be counted as
time worked and paid for.
D u t i e s w i t h spreadovcr
e x c e e d i n g !» hours but
not e x c e e d i n g 10 hours,
minimum
40
minutes,
m a x i m u m GO m i n u t e s .
If o v e r (50 m i n u t e s , the
e x c e s s to be counted as
time w o r k e d a n d paid for.

:i
to c
thir
dut
sari
the
any
doe
in
half
rate
if
relie
soo

D u t i e s rostercd as earD
ly, m i d d l e , and late shifts. earl
E a r l y shifts finish not
to
later t h a n 0 p.m. on
the
w e e k d a y s and 7 p.m. on
rest
Sundays.
port
and
(75 per cent, of the
spreadovcr d u t i e s exceeding JO hours finish b y
9 p.m. e x c e p t Saturdays.)
E a r l y shifts shall c o m prise a t least 35 per cent.
of the scheduled duties
o n a n y d a y . Middle shifts
not t o comprise more
t h a n 10 per cent, of t h e
scheduled duties on a n y
day.

Host period

Rosters to provide a period of not less than
0 hours' rest from the time of signing off to signing
on for the next turn of duty.

A scheduled duty shall
not commence within 12
hours of the termination
of the previous scheduled
duty, except for spare
men or on a change of
shift, in which event the
interval shall not be less
than 8 hours.

In al
period o

Special rates
of p a y : .
Sunday duty

Time-and-a-quarter.

Christmas
> Time-and-a-half.
Day
Good Friday

/ Double time.
Time-and-a-quarter.

Time
)
8 ho
> actuall
) rate.
N. B.
Day fal
ment is
of timetime w

Hank holiday Ordinary rate.

Time-and-a-half.

Night duty

No special provision.

Time-and-a-quarter.

Time
(betwee
4 a.m.

Overtime
payment

Timc-and-a-quarter.

First 2 hours time-anda-quarter,
afterwards
time-and-a-half.

Time
or if be
of 10 p
time-an

8 days after 12 months'
service.

6 we
months

Annual leave G weekdays after 12 months' service.
with pay

Ordin

130

INDUSTRIAL

RELATIONS

R A T E S OF PAY A N D AVERAGE E A R N I N G S OF S E L E C T E D G R A D E S
E M P L O Y E D BY T H E L O N D O N T R A F F I C COMBINE

Company or
group

Standard rate per week (48 hours)
Grade
Minimum

Underground
Railways

L.G.O.C.

Tramways

Motormen
Guards
Gatemen
Porters
Booking clerks

75
53

0
0

42
35

Drivers
Conductors
I n s p e c t o r s , 2nd class
General
hands
(garages)
Motormen
Conductors
Permanent-way
labourers
Greasers (depots)

Flat
s.

Maximum
d.

93
68

0
0

48
80

80
73
76

6
6
0

Average
earnings
per week
s.

0
9

103
78
55
57
73

4
6
5
10
4

86
79
86

6
6
0

92
84
89

2
4
3

64
64

0
0

73
73

0
0

75
75

7
7

67
70

9
1

Overtime rates vary from 9d. per hour for juniors to 3s. 6d.
per hour for class 1. Sunday duty is paid at rates varying from
Is. per hour for juniors to 4s. per hour for class 1.
Overtime and Sunday rates are not paid to men in the special
and assistants' grades.
Hours of work are 38 per week for head office staff and 48
per week for booking office staff.
Annual leave with pay is granted at the rate of 12 weekdays
for grades junior to class 3 inclusive, 15 weekdays for grades 1
and 2, 18 weekdays for the special grade, and 20 weekdays for
assistants.
Full détails with regard to the rates of pay and conditions of
service of all grades of staff have been compiled and printed for
the use of officials of the Companies. This document is
obviously so useful that it may be of interest to describe it. Its
format is that of a loose-leaf album of large quarto size. The
loosenleaf system is adopted in order to render revision simple on
a change of conditions of service. The document contains at
present 138 pages. It is divided into three sections, relating
respectively to railways, omnibuses, and tramways. Different
colours of paper are used for each section, in order to facilitale
reference.

THE LONDON TRAFFIC COMBINE

131

The document gives not only full details with regard to wages,
overtime, hours, etc., but also contains, carefully classified, the
texts of the various collective agreements, decisions of wages
boards, circular letters, memoranda of interpretation, decisions of
councils and committees, etc., on which these conditions are
based.
It is of interest to note that the total wages bills of the Companies represent 60 per cent, of their total operating expenditure..
The improvement in the position of the workers between the
years 1924 and 1929 has been indicated as follows :
In 1924 the Underground Group of Companies employed 41,700
people and paid them an average wage of £3 17s. 9d. a week. They,
in turn, provided 227 millions of car-miles—either train, tram or bus—for the public services.
In 1929 the same Group of Companies employed 44,549 people
and paid them an average wage of £4 3s. 7d. a week. They, in turn,
provided 281 millions of car-miles—either train, tram or bus—for the
public service.
Between 1924 and 1929 the cost of living steadily fell from 180
points to 167 points, or by 7 per cent. The average wages paid went
up in the same period by 7.5 per cent. The .real monetary gain to
the employee was, therefore, over 14 per cent.
This improvement in the material situation of the employees
was rendered possible by the increasing efficiency of the operation of the Companies.
The principles for which rationalisation stands are constantly
being applied in the Combine. In the first place, its whole history
has been one of amalgamation, consolidation, and co-ordination,
with a view to the elimination of waste and the avoidance of
duplication. In the second place, every possible mechanical
improvement is progressively introduced.
One or* two instances of this may be given. The new buses
now being put on the road comprise four-wheeled and sixwheeled omnibuses with six cylinders, having seating capacities
of 49 and 60 seats respectively, instead of 34 in the case of the
" B " type of 1910/1913, 46 in the case of the " K " type of 1919,
and 50 in the case of the " NS " type of 1923. Again, mechanical
improvements have been made in the rolling-stock of the Underground Railways in connection with the automatic opening and
closing of doors, and in others ways. Finally, additions are
being made to the installation of escalators, working automati-'
cally, which take the place of the lifts.
As a result of the application of these methods of rationalisation, a considerable increase has taken place in the number of

132

INDUSTRIAL RELATIONS

car-miles run per man employed. In 1924 the Companies were
able to supply 5,400 car-mdles per man employed per annum ; in
1929 6,300 car-miles per man employed per annum, a gain of
16 per cent, and a measure of increased efficiency. In order to
secure it about .£6,000,000 was spent on new equipment and
improvements.
There is, however, no discharge of regular staff on account
of the improvements and more economical methods of working
which are put into operation from tame to time, as it is the policy
of the Companies to retain any men who may thereby become
redundant until such time as they can be absorbed by natural
wastage or in the newly created services which result from the
constant extension and development of the Undertakings. It is
found in practice that this policy assists very considerably in
securing the support of the staff for the introduction of laboursaving machinery and other improvements.
In a number of cases the Companies pay rates which are considerably above the current London District rates for the grades
concerned. For example, craftsmen and other grades of labour
employed in the Engineering Shops — where piece work is not
in vogue — work under an output bonus scheme which assures
them considerable additions to the normal weekly rates applicable
to their grades. Moreover, a policy is being pursued of raising the
rates of the lower grades of employees engaged upon unskilled,
work with a view ito ensuring that their minimum weekly earnings shall not be less than 60s.
EMPLOYMENT PROCEDURE

The Staff Officer is responsable for co-ordinating matters of
principle affecting more than one department. Recruiting of
administrative clerical staff is also the responsibility of this
Officer.
Recruiting of administrative technical staff and of nonadministrative staff in the various departments is the responsibility of the particular Officer concerned.
Applicants for employment in the non-administrative grades
are individual and are dealt with at employment centres in
various parts of London.
All units of the Combine use a uniform employee record card
of the visible index type measuring approximately 5 X 8 inches.

T H E LONDON TRAFFIC COMBINE

138

This employee record card contains the employee's name with
brief general statistics and a complete record of salary changes
and remuneration during the full period of service. Employee
record cards for the administrative staff a r e centralised in the
office of the Staff Officer. Corresponding records for the nonadministrative staff on the railways and in the Omnibus Company are centralised in the head office of the Combine under the
respective staff clerks. So far as employee records are concerned
the principle of decentralisation is applied by the; inclusion of the
application, reference, medical examination, and appointment
forms and all subsequent correspondence or papers in a single
file which accompanies the employee as he is transferred from
one department, office, or section to another. For purposes of coordination and control of changes in staff, a monthly statement
giving particulars of new appointments, dismissals, resignations,
transfers, and other changes is prepared by t h e audit officer for
the administrative staff and by each officer concerned for the
non-administrative staffs and reviewed by the Staff Officer.
The Companies of the Combine have not been faced with any
difficulty in regard to recruitment, there having been at all times
a surplus of applicants, applications for employment having
reached a figure of 45,000 in one year. Responsibility for hiring
rests with the officers in charge of local units.
At the time of employment every employee is given a copy of
the rules and regulations affecting him and a brief explanation
of the Companies' industrial relations policies. Local principal
officers are also given the authority to make dismissals, all of
which are finaflly reviewed by the Staff Officer.
The policy of promotion from within is maintained as far as
practicable. As vacancies occur in all except the lower classes
of the administrative staff, they are advertised within the Companies through t h e medium of a circular letter over the signature
of t h e Staff Officer. The most rigid standard of selection is
maintained throughout the Combine as regards physical fitness.
Every applicant is required to submit to a medical examination
made by a physician selected by the Company. The Company
maintains the right to require a re-examination at any time. All
memibers of the wages staff are re-examined on the occasion of
every promotion. An indication of the stability of employment
in the Combine is given by the following figures of the wastage
of non-administrative staff for the year 1929.

184

INDUSTRIAL RELATIONS

WASTAGE OF N O N - A D M I N I S T R A T I V E

S T A F F IN T H E

COMBINE

IN 1 9 2 9
Railways

|Causeofwastaee

Number

Per
cent,

L.G.O.C.
Number

Per
cent.

Tramways
Number

Total

Per
cent.

Number

Per
cent.

Disciplinary, a c t i o n

0.4

220

0.7

0.53

281

0.6

Death

0.5

112

0.3

0.67

190

0.4

Discharge >

579

5.9

146

0.5

1.03

762

1.8

Resignation

239

2.4

377

1.8

1.36

665

1.5

0.4

0.3

0.97

161

0.3

0.1

0.05

0.39

0.1

966

10.0

957

3.3

178

4.95

2,101

5.3

Retirement :
Age limit
Ill-health

Total
1

Mainly due to discharge of temporary holiday staff at end of season.

T R A I N I N G AND E D U C A T I O N

As a means of developing new material for the later acceptance of supervisory and executive responsibility, the Combine
experimented several years ago with a system of " cadet " training. According to the provisions of this system, a limited number
of young men from school and college were employed for a series
of brief periods in various departments of ithe Combine. This
system was abandoned, as it proved to be unsatisfactory to the
principal officers of the units do which the men were periodically
assigned and failed to produce the desired results. Considerable
care is exercised in the selection of juniors, special consideration
being given to the possibilities of their development in the service
of the Companies.
In addition to this interest in the development of future supervisory and executive staff, the Combine maintains a training
school for the operating department of the railways and a training school of the Omnibus Company for the training of conductors, drivers, and inspectors. The cost of training and equipping a driver or conductor for the Omnibus is £ 2 5 , and in the
Railway Companies the cost varies from £ 8 for porters to
approximately £ 1 5 for motormen.

THE LONDON TRAFFIC COMBINE

Railway Training

135

School

The training school for the underground railways deals with
the engagement and training of staff for the operation department and (the education of staff with a view to promotion.
The preliminary grades are junior booking clerks (minimum
age 16) and station porters (minimum.age 23). Candidates for
these positions have to pass a medical and eyesight test, after
which they are placed on probation for six days, and Teceive
instruction in their duties before actual appointment.
During the winter months classes are held for instruction
dealing with both the theoretical and practical side of the duties
of all grades. These classes are quite voluntary and open to all
members of the operating staff, the object being to give every
assistance to the men to become proficient in the grades to which
they may be promoted.
The session is divided into two terms, an examination being
held at «the end of each term, i.e. December and March, and
certificates issued to successful candidates.
A synopsis of these lectures ds given below.
Gateman's and Guard's Duties. Train equipment, signals and
signal failures ; instruction re wrong line and single line working ;
train and current failures ; etc.
Station Masters (Clerical Side), Passenger Agent's Duties. Equipment of booking offices ; issue of ordinary and season tickets ; accompanied merchandise and cloakroom revenue books ; proofbooks
and abstracts ; etc.
Station Masters, Station Inspector's and Station Foreman's Duties
(Traffic Side).
Control and supervision of stations ; signal and
signalling rules ; trains stopped by accident ; wrong line and single
line working; cutting off current in emergency; isolating switches; etc.
Motorman's Duties. Westinghouse brake ; description of control
equipment ; preparation of trains for service ; dealing with failures ; etc.
Ticket Inspector's, Ticket Collector's and Liftman's Ticket Collecting
Duties. Charging of excess fares ; some methods in detection of fraudulent travelling ; etc.
Signalman's Duties. Manual and semi-automatic signal cabins ;
signals and signalling rules ; regulation train services ; etc.
Liftman's Duties. Operation of lifts and escalators ; method of
dealing with failures ; safety devices and hand winding of lifts ; etc.
Candidates for promotion to higher grades are re-examined
and, if fit, are required to pass t h e standard examination in
theoretical and practical knowledge of the duties of the grade

186

INDUSTRIAL RELATIONS

concerned ; in the case of certain grades, such as guards and
motormen, actual training on the line by competent instructors
is given prior to taking the examination.
Omnibus Training School
The training school of the Omnibus Company deals with the
engagement and training of drivers, conductors, and inspectors
and ¡the education of staff with a view to promotion.
Drivers. The Company does not accept new drivers for
employment under 28 years of age or over 35, and the minimiim
height measurement is 5 ft. 7 ins. The medical examination is
strict, particularly in regard to sight and hearing, and men who
find it necessary to use spectacles are not accepted. The services
of the most capable and experienced drivers in the employ of
the Company are utilised as instructors, and these, with special
learners' buses, are attached to the training school.
After men have been accepted for tuition, they are put through
the first stages of their training at the training schodi, where,
contemporaneously with lectures, practical lessons are given in
gear changing and general control <5f the vehicle. Driving instruction is first given on the school premises, and subsequently
in quiet neighbourhoods, where there is little or no traffic.
Subject to satisfactory progress, learners are then taken into
streets carrying heavier traffic. After being finally tested by one
of the chief instructors, they submit to the Scotland Yard Police
test, which includes an examination in a short-arm reverse and
actual driving through the busiest West End thoroughfares. The
average time taken to train a fully competent driver is 28 days.
Conductors. Conductors are not employed under 24 years of
age, and must not be less than 5 ft. 6 ins. or more than 5 ft. 11 ins.
in height. The conductors' course of training is both varied and
complex, consisting of much detail, some part of which is strictly
technical, dealing with matters such as schedules and time-tables,
appertaining to their daily work. Methods of issue, punching and
accounting for tickets sold : this necessitates accurate and quick
calculation and here many fail to reach the standard desired by
the Company and are not permitted to pass from the school as
conductors. Approximately one in every sixteen accepted applicants fails toi pass the tests and examinations given at the school.
Other than ordinary bus tickets have to be discussed and under-

THE LONDON TRAFFIC COMBINE

137

stood — through-booking from bus to rail, exchange, children's
etc., are only some of those that are dealt with. Police regulations
and the " Metropolitan Stage Carriage Act " proving the privileges
of passengers and the limitations of conductors whilst on service
are thoroughly gone into. Such subsidiary matters as " lost property ", " carriage of dogs ", " luggage ". " pickpockets ", and
undesirable passengers, each take their turn in the syllabus, which
is given dn a series} of lectures that are held in the classrooms.
A special lecture is given on " accidents ", when both drivers
and conductors are present. This is held in the classrooms
cinema, when pictures are displayed of accidents which have/
occurred, and lessons expounded showing how each accident
might ¡have been avoided. The principle of " Safety First " is
urged, and unison between drivers and conductors to acquire the
habit of the safety and comfort of the passengers. One half-day
is devoted to the " accident " lecture alone,
Conductors are taken on a " private " bus under the guidance
of an experienced inspector, when traffic conditions are explained
to them, bell and hand signals are demonstrated to them, and the
art of standing on a moving vehicle without support whilst in the
act of punching tickets. They, too, must be observant of the
route taken, as they are questioned on their return as to what
streets and buildings they passed — this, to impress the importance of the " Knowledge of London "
An examination paper is put before them near the end of
their training. Learners, as a result of their replies, may attend
further classes, or by their own request attend lectures a second
time ; every facility is offered to the man who tries.
Having passed all tests and examination, and being in possession of. his licence, he is then fitted out with uniform and sent
to Chief Office to be allocated to a garage. After a short practice
on a service bus with an experienced conductor he then commences duty on his own. The average time taken to train a conductor is 14 days.
Learners, both drivers and conductors, receive a food allowance of 4s. per day whilst under tuition, this being for a maximum
period of 32 days for drivers and 14 days for conductors.
Inspectors. Inspectors are promoted from the ranks of the
drivers and conductors. First, the qualifications of an inspector
as desired by the Company are explained to them. They consist
of their duties to the passenger, to the Company, and to the men.

138

INDUSTRIAL RELATIONS

The importance of personal appearance and habits is impressed
upon <them. Official organisation and divisional operations,
together with their connection with the Traffic Controller, are
carefully explained. Other subjects dealt with include their
duties in dealing with traffic emergencies due to outbreak of fire,
accident, presence of Royalty, etc., which may cause stoppage or
diversion of traffic ; public complaints, dereliction of duty on the
part of the staff, confidence, and the necessity for tact and
discretion in dealing with all work before them ; reports, their
meaning, truth, subject, dispatch, and possible results ; terminal
ticket inspection, regulating and special duties ; queue forming
and headways of buses. Two days are spent under the supervision of an inspector at a busy terminus, where the new inspector gets tuition under service conditions, finally returning to
the school to answer an examination paper. The period of training is one week.
Cookery School
To meet the requirements of their extensive catering service
for the various messrooms that are maintained by the Company
a cookery scñool has been established, where the cooks for the
various messrooms are trained under expert supervision before
assignment.
ACCIDENT

PREVENTION

Responsibility for accident prevention rests with the principal
officers of local units. One means of co-ordinating the efforts
of the local units is by the use of the bulletins and literature
issued by the National Safety First Association, which was
organised in 1918 and has its headquarters in London.
The Omnibus Company's Scheme
The drivers and conductors of the Omnibus Company compete
for medals which are given each year by this Association for
periods of service completed without serious accident. Eight
men of the Omnibus Company have received a gold medal for
ten years of service without serious accident, and 939 men have
received silver medals for five years of service without serious
accident. In addition to this incentive the Omnibus Company

T H E LONDON TRAFFIC COMBINE

189

grants an accident bonus to its drivers and conductors according
to the following provisions.
A daily bonus of Id. per working day is paid to drivers free
from accidents for which they are held to be to blame. This
bonus is paid quarterly, but any employee leaving tJhe service
during the quarter is credited with any daily bonus payments he
has earned.
In addition a quarterly bonus is paid to drivers in the service
at the end of each quarter who have been employed as such
during the whole or part of each of the previous two quarters ;
the conditions to be complied with and the amount of the bonus
are shown in the following table :
CONDITIONS

AND

AMOUNT OF
FROM

QUARTERLY
ACCIDENTS

BONUS

FOR

FREEDOM

Number of accidents for which driver is to blame
Days worked by driver
in the quarter

None

Only one

Only two

">2-G4

s. d.
6

«5-77

1
1

78 and over

Conductors receive a bonus of Id. for each day they work free
from accidents for which they are held to be to blame. This is
paid weekly, each week being a full period of seven days.
The total sum paid as accident bonuses in 1929 amounted to
approximately £48,000.
A rather novel scheme used by the Omnibus Company to
stimulate interest in the reduction of accidents is a ilarge bulletin
board placed in each of the garages and made up in the form of
a target. There is competition among the many buses in the
three divisions of the Company to score a bull's-eye based upon
an arbitrary score of accidents per month per 10,000 car-miles
Organisation in the Railway

Companies

In the mechanical engineering department of the Railway
Companies the accident prevention organisation has been
developed as follows :

140

INDUSTRIAL RELATIONS

1. The Local Committees at each of the works of this department
each appoint one of their number to be a representative of a Safety
Committee to deal with the prevention of accidents to employees.
The Company appoints a representative to be a member of the Committee.
2. Arrangements are made to supply the Committee with particulars of all accidents for consideration in the matter of prevention,
and all suggestions made by employees with this object in view are
referred to the Committee for recommendation.
Recommendations and suggestions are forwarded to the Chief
Mechanical Engineer for approval.
3. The Committee brings up any cases of breaches of Safety Rules
coming to notice, and makes recommendations as to future avoidance.
The Central Committee meets periodically—not less than once a
year—for the purpose of securing uniformity of action and standardisation.
F I R S T - A I D F A C I L I T I E S AND T R A I N I N G

Shops, Depots, and Power House (Railways).
First-aid boxes
are supplied in accordance with the requirements of the Factories
Act, and qualified first-aid men are recruited from amongst the
members of the staff of the various sections, who receive a bonus
in recognition of their services.
Permanent Way Staff. Each gang is supplied with a first-aid
box, and in the case of extra igangs large outfits are carried on
the train in case of serious accidents.
Stations.
stretcher.

Each station is supplied with a first-aid. box and a

Overhaul Works (L.G.O.C.). There is in existence a first-aid
station, which is staffed by 1 qualified nursing sister, 1 qualified
St. John's Ambulance nurse, and 2 qualified volunteer first-aid
men ; in addition there are three stretcher squads, each consisting
of 7 qualified first-aid men, who cover various sections of the
works, and are detailed for duty in cases of serious accidents
happening in the works. In the absence of the first-aid sister, or
if the station is closed, the firemen, all of whom are qualified
first-aid men, take charge of any case, the fire station being used
as an emergency ambulance room.
Garages. The usual first-aid equipment is kept at all garages.
To ensure that there is always a qualified first-aid man present,
all garage wardens, who work on rotating shifts, are required to
hold first-aid certificates as a condition of employment ; these
certificates must be renewed every two years.

THE LONDON TRAFFIC COMBINE

141

Head Offices. A room is set apart for the use of female staff.
This is in charge of a qualified first-aid member of the female
staff. So far as the other members of the staff are concerned,
volunteers are asked for from amongst t h e staff to render any
assistance which may be necessary.
Training. First-aid training classes are held during the winter
months at various centres on t h e Comipanies' premises under the
auspices of tìie St. John's Ambulance Brigade. Members of the
staff aTe invited to attend the courses, either for the purpose of
obtaining first-aid certificates, or for re-examination. A record
is kept in the various departments of successful candidates, and
consideration is given to these as and when vacancies occur for
appointment to the various first-aid posts. All the cost of these
classes is borne by the Companies.

I N S U R A N C E , W O R K M E N ' S COMPENSATION, P E N S I O N S ,
AND F R I E N D L Y B E N E F I T S

In the field of insurance, workmen's compensation, and
friendly benefits a wade variety of systems is in operation. These
systems may be classified in four groups : (a) statutory systems ;
(b) non-statutory systems administered by the Companies ;
(c) voluntary systems administered by the Companies and their
staffs jointly ; [d) voluntary systems administered b y the staff.
Statutory

Systems

The Companies are liable, in accordance with various Acts, to
make provision for their employees in the following fields :
(1) National Health Insurance.
Under the National Health.
Insurance Acts contributions are made by employers and
employees as follows. The Company pays 9d. per week for all
men employed and 7d. per week for all women employed, male
employees contributing 9d. per week and women employees 6d.
per week.
(2) Unemployment Insurance. In accordance with t h e Unemployment Insurance Acts contributions are made by the Companies and the employees as follows. The Company pays 8d. per
week in the case of male employees and 7dj per week in the case
of women employees, male employees contributing 7d. per week
and women employees 6d. per week.

142

INDUSTRIAL RELATIONS

(3) Workmen's Compensation.
pensation Acts the Companies are
sation for accidents, in accordance
No contribution ¡is made from the

Under the Workmen's Comliable for workmen's compenwith the provisions of the Act.
staff.

(4) Superannuation.
Under the Railway Clearing System
Staff Superannuation Fund, the Company has certain liabilities
for a small number of its salaried railway staff. In the case of
present employees the Company contributes an equal amount to
that subscribed by the members, but the responsibility of the
Company under various Acts involves additional payments in
respect of certain of the superannuated staff.
The scale of contributions varies from 2Vi per cent, of salary
at 20 years of age on entry to 6 per cent, at 45 years of age in
the case of those employees who entered the Fund prior to 1 July
1913, the rate for new entrants on and after that date being 3 per
cent, at 20 years of age to 6 ^ per cent, at 45 years.
The Company pays an amount equal to the member's contribution, but under various Acts is responsible in addition for
payment of the pension and the full contribution after the
member retires, so far as old members of the Fund are concerned,
viz. those who joined prior to 1 July 1913.
Any employee may retire at 60 years of age, and all employees
must retire at 65 years of age. The general pension provided on
retirement, for employees who entered the Fund after 1 December
1904, is based on a percentage of average salary during total
years of membership — varying from 25 per cent, of salary for a
membership of 10 years to 85 per cent, for a membership of
51 years and upwards, with a minimum pension of ¿£30 per
annum. In the case of those members who entered the Fund
prior to 1 December 1904, the pension is based on two-thirds of
the average salary during the last seven years of membership.
Non-Statutory Systems Administered by the Companies
(1) Superannuation Fund. The Companies have in operation
a contributory staff Superannuation Fund, which all male
members of the permanent administrative staff, other than those
in the Railway Clearing System Fund above referred to, are
required to join. This fund is called the Omnibus, Railway and
Equipment Companies Staff Superannuation Fund. The Companies contribute a like amount annually to that paid by the

THK LONDON TRAFFIC COMBINE

143

employee. The scale of contribution of employees is determined
in accordance with the age at which they enter the Fund.
Employees entering under 21 pay annually 3 per cent, of salary.
The percentage increases in accordance with the age at which
members of the Fund enter the Fund, and in the case of members
entering the iFund at the age of 42 the percentage of salary is
6 per cent. In the case of members of the Fund entering at an
age exceeding 42, the percentage is determined by the actuary.
Any employee may retire at 60 years of age, and all employees
must retire not later than 65 years of age. The annua1! pension
provided on retirement is 2 per cent, of the aggregate amount upon
which contributions have been made by the employee during the
whole of his period of membership of the Fund. The minimum
pension granted is .£60 per annum. The management and direction of the Fund, including the determination of all daims made
upon it, is vested in the Managing Committee, which consists of
7 persons, including the Chairman of the Fund, of whom 3
represent the members and 4 represent the Companies.
(2) Pensions to Supervisory Staff. The Companies pay certain
pensions to the supervisory staff. According to this scheme, an
employee with not less than 10 years' continuous service who
having attained the age of 65 years retires from the service is
qualified for a pension, and an employee with not less than
10 years' continuous service who is required to retire owing to
incapacitation, not being the result of his own misconduct or
negligence, may be granted a pension in the entire discretion of
the Companies. Prior to 31 July 1929 the scale of pensions was
as follows :
Years of continuous service worked in
both wages and/or supervisory grades

Over
,,
;,
„

40
35 and up to 40
25
„
35
15
„
25

Per week

20s.
15s.
12s.
10s.

As from 31 July 1929 a revised scale was put into operation
under which retirement pensions are based on 1 per cent, per
annum of the aggregate salary or wage of the employee during
the whole period of service, with a minimum scale pension of
£30 per annum.
In the event of the pension payable under the new scalo
amounting to less than would have been payable under the old
" years of service " scale, the old scale will be applied.

144

INDUSTRIAL RELATIONS

Consequent upon the operation of the Widows', Orphans' and
Old-Age Contributory Pensions Act, pensions payable under this
scheme are subject to a reduction of 5s. per week, in the case
of compullsorily insured staff retired at 65 years of age (or if
retired before reaching that age, upon reaching 65 years of age)
until thè pensioners Teach 70 years of age, when the existing scale
of pensions will apply.
It should be noted that this system does not involve any contribution on the part of the employees.
(3) Ex gratia Pensions and Grants. Ex gratia pensions and
grants are paid to wages grades on retirement. The amount
paid varies according to service from a grant of three months'
pay to a pension of 16s. per week. In determining years of service
all Companies in the group are treated as one, and service with
any Company which was formerly associated with the group and
has now been liquidated also counts for pensions and grants.
Voluntary Schemes Jointly Administered
The only scheme in this category is the T.O.T. Benevolent
Fund. Under this Fund any member of the staff may subscribe
Id. per week. The Companies undertake to subscribe Id. per
week for each member.
The purpose of the Fund is to assist the members of the,Fund
in time of difficulty or distress. The report of the ¡Fund for 1929
shows that the membership for the end of the year was 39,800,
an increase of 1,300 over the figure shown for the previous year.
The members now represent about 90 per cent, of the staff of the
Companies.
During 1929 ilocal committees dealt with 2,159 applications
for assistance and the Central Relief Committee considered 662
cases. The total grants made amounted to over .£9,740. During
the year 199 applications for legal and housing advice were
received. Great use continued to be made of the convalescent
facilities provided free of charge for members of the Fund
recovering from illness. These convalescent facilities are provided
by a convalescent home belonging to the Fund called " Philbeach '-', near Hythe, Kent. During the year 388 women and 350
children were received at the home.
It may be of interest to note that all! the Directors and

145

THE LONDON TBAFFIC COMBINE

Officers of the Companies, from Lord Ashfield downwards, are
members of t h e Benevolent Fund.
The administration and management of the Fund is throughout a joint affair. The unit of management is the local committee, half of the members of which, called nominated members,
are nominated by the Companies, a n d half, called elected
members, are elected by the members of the Fund. The supreme
management of t h e Fund is vested in the Council, constituted also
on a joint basis, of representatives nominated and elected respectively from local committees, together with a certain number
of other members. There are three Committees of t h e Council :
(1) the Finance Committee, (2) the Relief Committee, a n d (3) the
General Purposes a n d Publicity Committee. These Committees
also are all joint committees, each consisting of ten members,
five being elected members and five nominated members, together
with the President, Chairman, and Vice-Chairman of t h e Council.
The Board of Trustees is also a joint board, two of the
trustees being respectively a director and a secretary of the Companies and two being members of the staff.
Voluntary

Schemes Administered

by the Staff

The three voluntary schemes administered by the staff, of
which particulars follows, are all friendly societies. While the
administration of them is completely in the hands of the staff,
the Companies encourage them in the following ways. In each
case they supply free office accommodation ; in each case they
facilitate the administration of the societies by deducting
members' contributions from the pay-rolls of t h e Companies ;
and in each case directors or officers of the Companies act, on
the request of the staff, as trustees, and officers are prepared also
to serve as auditors if desired. Apart, however, from giving
encouragement to the societies in these a n d other ways, the Companies take n o part in their administration or management.
(1) The L.G.O.C. Employees'
Friendly Society.

Death

Levy,

Distress

and

Sick

The objects of this Society a r e stated to be as follows :
(a) To provide for the assurance of various sums on the death of
members and for the funeral expenses upon the death of the wife of
a member ;
m

146

INDUSTRIAL RELATIONS

(¿>) To relieve and assist its members during sickness and convalescence or during any other infirmity, whether bodily or mental.
and in old age ;
(c) To provide funds for convalescence and for surgical, dental
and other medical treatment ;
(d) To providé funds for incapacity benefit in accordance with the
table set out in these Rules.
There are three separate sections of the Society, the Death
Levy Section, the Sick Section, and the Provident Section. Scales
of contribution and scales of benefit are laid down in the rules,
as in the case of all friendly societies. The Committee of Management consists of a representative from each depot or works with
not less than 150 members of the Society, ejected by the members
at their respective depot or works.

(2) Underground

Railways

Death, Distress and Provident

Fund.

The objects of this F u n d are stated to be as follows :
(a) Ensuring money to be paid on the death of a member and of
a member's wife, single member's mother (who is a widow and totally
dependent upon the member at the time of her death), and/or for
the funeral expenses of a member who has no nominee.
(b) To provide for a member who is permanently incapacitated
from following any employment.
(c) The relief of members during sickness, and when in distressed
circumstances arising out of prolonged or exceptional sickness or
misfortune of such members.
(d) To provide, through the medium of the Provident Section, a
specified sum on retirement on attaining the age as stipulated by Rule.
The Committee of Management is elected by the various
grades of the employees of the Company in accordance with a
detailed schedule contained in the rules.
(3) Supervisory

Staffs Supplemental

Pension

Fund.

The supervisory staffs organised a Pensions Fund to supplement the pensions granted by the Companies. 1 This is a friendly
society which provides for the payment of pensions at the age
of 65, varying from 10s. to £1 per week, in accordance with the
contributions paid by members. For a weekly contribution of
1

See jip. 142-144 above.

THE LONDON TRAFFIC COMBINE

141

Is. commencing at the age of 25, for example, a pension of lOsJ
a week at the age of 65 is assured. The Fund is administered by
a Committee of Management consisting of five members elected
annually by and from among the members. It has recently been
decided to extend membership of this Fund to the whole of the
wages staffs of the Combine.
The British Electrical Endowment

Fund

This Fund covers all salaried staff of the Tramways Companies in receipt of a salary of over ¿£160 per annum.
Members pay a contribution of 6 per cent, of their salary and
the Companies pay a like amount in respect of each member.
Members who have contributed for less than 10 years, on
leaving the service, receive back the whole of their contributions
plus one-tenth of the Companies' contributions for each complete
year of contribution. Those who have contributed for 10 years
and over receive back the whole of their own and the Companies'
contributions.
Tramways

Employees'

Savings

Association

This Association is open to members of the Tramways staff,
and their wives and children over 16 years of age.
Deposits are received of any amount, subject to a minimum
amount of 6d., and interest is allowed at the rate of 5 per cent.
on every complete pound deposited.
Depositors wishing to withdraw any amount standing to their
credit must give three clear days' notice in writing, but in cases
of urgency sums of not more than £b or less than 10s. may be
withdrawn without notice.

WELFARE

The Companies pay particular attention to the welfare.
health, and comfort of their staff. They consider, however, that
welfare work is definitely secondary in importance to the primary
task of the establishing of satisfactory wages, hours, and general
conditions of work. With this proviso, t h e Companies actively
encourage a wide variety of welfare schemes. For this purpose
a Welfare Committee has been appointed consisting of the

148

INDUSTRIAL RELATIONS

Managing Director and three ordinary directors selected from
the Companies, for the review of :
(1) Staff welfare work ;
(2) the management of clubs, institutes, messrooms, sports
associations, etc., for the benefit and use of the staff;
and t h e appointment of any company representatives
thereto ;
(3) pensions, gratuities, allowances, sick-pay and any other
payments to the staff not being remuneration for services
rendered ;
(4) subscriptions, direct or indirect, for the benefit of the
staff ;
(5) educational facilities for the staff ;
(6) the staff magazine.
The main forms of special provisions for welfare are the
following.
Messrooms
The Companies have provided 46 ¡messrooms, of which 13 are
for the use of t h e railway staff, a n d 33 for the staff of t h e
London General Omnibus Company. These messroonls are part
of or adjoin the railway depots or the omnibus garages. The
staff can obtain hot meals at a n y time of the day, and in the case
of the traffic sheds they keep open in many instances until 12
midnight, or even later.
These messrooms vary greatly in size corresponding to the
number of men to be served and the character of the meals which
they take. The wiessrooms at Chiswick and Acton, which serve
respectively the staff occupied on repair of buses and on underground rolling stock, are capable of serving up to 1,000 midday
meals at a sitting. That at Lots Road Power Station serves
about 400 (midday meals in three sittings. The others vary in
size, some of them being quite small. The messroom at Victoria
Station is intended mainly to serve cups of tea and hasty snacks
to the omnibus drivers and conductors who have a minute or
two to spare at that important terminus between their terms of
duty. There is a central buying and distribution organisation

T H E LONDON TRAFFIC COMBINE

149

for the running of these messrooms. Practically all food (with
the exception of milk and vegetables) is bought centrally and
distributed in the Companies' vans to messrooms in various parts
of the Companies' area. An interesting feature of this Central
Organisation is that it employs a full-time chemist whose duty it
is to analyse samples of the foodstuffs bought by the Companies,
with a view to seeing that they are in accordance with specification, and to visit the various messrooms to examine and analyse
samples of the food actually supplied to the men. A remarkably
high standard of quality and cleanliness, combined with low
prices, is characteristic of the messrooms.
A very considerable trade is done at the messrooms, the turnover in 1929 approaching a quarter of a million pounds. In
adddition to being able to buy meals for consumption in the
messrooms, the staff can buy in the messrooms goods for home
consumption such as tea, sugar, bacon, flour, etc. It may be of
interest to note that the messrooms sell on the average between 5
and 6 tons of tea per week. The messrooms are not operated for
a profit, but if any surplus accrues as a result of their operating, it is utilised for the purpose of improving the messrooms or
their equipment.
About 360 catering staff are employed in running these messrooms.
Sports Associations
Each of the separate companies has its own Sports Association, and there are numerous other associations of a similar
nature throughout the organisation. The Companies have
recently provided sports grounds in various parts of London for
the use of the associations. It is impossible, owing to the
distance between the various districts in which the staff live, to
have a central ground, and it is for this reason that the separate
grounds have been provided. The grounds are handed over free
of charge to the association concerned with certain initial equipment, and the association itself is then responsible for the upkeep
of the ground. In the main the sports associations are in a satisfactory financial condition, and they have met with considerable
, success in matches with other similar organisations.
The extent and variety of these sports associations are extraordinary. They include sections or clubs, not only for the playing

150

INDUSTRIAL RELATION'S

of football and of cricket, but also for swimming, quoits, cycling,
golf, tennis, angling, motor cycling, bowls, and all indoor games
such as billiards, chess, etc. There is also a rifle club, a dming
club, and a philharmonic society which organises amateur
theatricals and orchestral and concert performances. Preparations are being made for the holding of a " T.O.T. Gala " in which
every officially recognised sports association within the T.O.T.
Group is collaborating.
Institutes
Another enterprise which falls within the general heading of
" Welfare " is that of the provision of institutes.
At various centres where large bodies of staff are concentrated
the Companies have provided institutes (six in number), which
are available for the use of the staff for general, social, and
educational! purposes.
These buildings, whilst remaining the Companies' property
and maintained by them, are handed over to the Staff Associations for their free use, and the Executives of such Associations
are entirely responsible for their management.
The largest of these institutes, the Albert Stanley Institute
(called after Lord Ashfield), is at Hammersmith. The Institute
contains a large hall for lectures, whist drives, dances, etc.,
together with billiard rooms, library, buffet, and various other
facilities. In this Institute the staff provides various forms of
entertainment for its members, one of which is the series of
Christmas parties arranged for the children of members.
The general principle maintained 'by the Companies with
regard to the sports associations and institutes is that the Companies confine their participation in them to the free provision
and installation of the sports grounds and institutes. They,
therefore, do not interfere with the management of these sports
grounds and institutes, which is left entirely in the hands of the
workers' own associations. The management does not take part
in any of the activities of the associations and institutes unless it
is invited to do so. As a matter of fact, the Chairman, Managing
Director, and other directors and officers are frequently invited
by the men to participate in galas, meetings, and other events.
Directors and officers also frequently present cups and shields
for competition between the various clubs and associations.

THE LONDON TRAFFIC COMBINE

151

Staff Magazine
Reference should be made finally to the staff magazine ; this
is called the T.O.T. It is edited by members of the staff, includes
contributions from them, and devotes a large amount of space
to detailed accounts of the doings of the various institutes, clubs,
and sports associations.
The following figures for 1929 will give some idea of. the
importance of the work accomplished by this magazine.
The twelve numbers for the year 1929 comprised eight
28-page issues and four 32-page issues, a total of 352 pages in afll.
Of these, 181 were devoted to the Companies' affairs and general
articles, 158 to social and sporting news, and 13 to staff advertisements ; 285 blocks were published, 1 less than in 1928. Of the
285 blocks, 51 related to the 'Companies' affairs ; 92 were illustrations to general articles or humorous sketches furnished by the
staff ; 97 were concerned with social and sporting matters ; and
45 were small blocks of deceased members of the staff.
The total number of magazines sold >(4he price is one penny)
during 1929 was 307,141, a decrease of 1,107 as compared with
1928. For 1929 the net cost per copy sold was increased by
0.033d. from 0.824d. in 1928 to 0.857d. in 1929. There was a
deficit on the cost of running the magazine of £1,097 13s., which
was paid by the Companies. During the year, 5,861 magazines
were sent out (free) to retired members of the staff out of the
totals returned by the agents.

The table on page 152 indicates the cost to the Companies in
1929 of the services described above under the headings " Insurance, etc. " and " Welfare ".

ANALYSIS OF WELFARE COSTS INCURRED BY THE COMMON FUND
COMPANIES IN 1 9 2 9
Details

Railways L.G.O.C.

Toi al

Remarks

7,689

—

7,689

I n t h e case of present
employees the Company contributes an equal amount
t o t h a t subscribed b y the
members, but the responsibility of t h e Company
under various Acts involves additional payments
in respect of certain of t h e
superannuated staff, and
these are included in the
total costs shown.

15,960

55,999

71,959

Weekly contributions are
made by employees and
employers as follows :
Employee Company
Men
9d.
9d.
Women
6d.
7d.

(6) Unemployment

5,518

48,776

54,294

Weekly contributions are
made by employees a n d
employers as follows :
Employee Company
Men
7d.
8d.
Women
6d.
7d.

3 . Workmen's
Compensation

8,272

9,357

12,629

. This is a Companies'liability under the Workmen's
Compensation
Acts—no
contribution from staff.

5,818

22,385

28,208

Thè members 'and Companies contribute equal
amounts.

2 . T.O.T. Benevofent Fund

1,651

5,809

7,460

The members and Companies contribute equal
amounts.

3 . Sick pay and
additional benefits in connection with National
Health
Insurance

7,894

26,303

34,197

4 . Ex-gratia pensions and grants

10,271

20,570

30,841

Sick pay granted to
employees in accordance
with a scale varying for
different grades ; additional benefits t o members of
Companies' Approved Societies.

5 . Deficit on working of messrooms

8,440

3,766

12,206

6 . Institutes

1,852

3,333

5,185

864

3,498

4,362

A. Statutory Liabilities :
1. Railway Clearing System Staff
Superannuation
Fund

2 . National Insurance :
(a) Health

B Non-Statutory
Liabilities :
1. Omnibus, Railway, and Equipment Companies
Staff
Superannuation F u n d

7 . Miscellaneous
education and
miscellaneous
expenditure
Total

69,229 199,796 269,025

THE LONDON TBAFFIC COMBINE

153

CONCLUSION

We may fittingly conclude this account of industrial relations
in the London Traffic Combine by quoting two extracts from
speeches of recent years by Lord Ashfield, Chairman of the Companies :
We have always shared our prosperity with our employees, and even
when we were unable to pay anything like adequate dividends we
have not failed to maintain our wage levels at and even above those
paid in comparable businesses. In the last five years, although the
index number for the cost of living has fallen from 180 to 167 points,
we have slightly increased the average wage paid to our staff ; the
ercentage increase being 6 per cent. We have achieved this result
y two means. We have received better service from our staff, and
for this I would make full acknowledgment, and we have enabled
that better service by putting at their disposal the best equipment
and machinery that we could obtain. From 1924 to 1928, in five
years, we have increased the car mileage run by trains, omnibuses
and trams from 227 to 274 millions of miles, or by 21 per cent. Yet
the number of persons employed has only increased from 41,700 to
43,500, or by 4 per cent. In this last year our services have expanded
by 6 per cent., yet our staff has been kept practically stationary.
Paying, therefore, as we do, as good or better wages than any other
transport undertaking, we should be entitled to expect that we have
a contented and loyal staff. Certainly, I know of nothing to the
contrary, but rather find everywhere a good and friendly spirit which
adds much to the happiness of our family of officers and men. I am
glad to be able to tell you of it. *
Upon the railways the average cost of operation per car-mile has
fallen nearly 5 per cent., a noticeable advance under the circumstances,
for these economies are not easily obtained, and it is only by a constant
and active attention to the details of your business that ways and
means are found by which costs may be diminished. For we have not
proceeded by means of any reduction of wages. ' We thought that
you would not wish us in our circumstances to take advantage of the
agreement reached between the trade unions and the Main Line
Railway Companies for a reduction of 2 % per cent, in the wages and
salaries paid. Indeed we have during the year, of our own initiative,
raised the wages of some of our employees, being those whose wages were
at the lowest level, hoping by this to raise their standard of livelihood.
Nor have we proceeded by any dismissal of established employees.
We have, indeed, carried throughout the year some surplus of staff
rather than cause unmerited hardship by our own measures for elimination of labour and increase of efficiency. Rather we have sought,
by the introduction of new and better machinery, the wider application of power, the adoption of .whatever would seem usefully to meet
our purpose to increase the volume of service rendered by our staffs, to
convert our staffs as far as we reasonably can from unskilled to semi-

1
Report of the Proceedings at Annual General Meeting of the Underground
Electric Railways Co. of London, Ltd., 7 March 1029, p. 4.

154

INDUSTRIAL RELATIONS

skilled and eventually to skilled labour. In the year 1928, although the
bona fide increased operating expenditure was only £531,000, or less than
5 per cent., the number of miles run by our cars and omnibuses was
increased 14,000,000, or over 6 per cent. I t is a slight indication of
the efforts put forward by those responsible for the conduct of your
affairs to make their contribution to the results which I am now
.privileged to place before you. I am sure you would wish me on an
occasion such as this to thank them all. They include every rank of
our employees. From top to bottom we get suggestions. Last year
we dealt with 5,480 suggestiona of varying merit, but none t o e small
for consideration. They help us in our labours. From top to bottom
we get discipline and courtesy ; we get patience and persistence ; we
get ingenuity and care. And throughout the year we have had no discord. We have lived in the friendliest relationships bent only on discharging as best we were able the tasks before us. 1

Minutes of the Proceedings of the Company, 21 February 1920, pp. 11-13.

THE STATE MINES OF THE
SAAE BASIN
GENERAL CONDITIONS OF PRODUCTION

The Saar Basin is an elongated zone of coal-bearing land
stretching from south-west to north-east ; the best-known part
is dome-shaped, while the ends of the zone lie at inaccessible
depths. Only the central region of the Basin is worked at present.
that is to say, where the dome approaches the surface and in the
neighbourhood of the outcrops. This region extends for about
50 kilometres, varying in width, which is at most 20 kilometres,
from Frankenholz on the north-east frontier of the Saar Territory
to a little beyond the borders of Lorraine.
The presence of coal in this region appears to have been
known in the Middle Ages, but for a long time there was only
some scratching of the outcrops, and it was not until thè
eighteenth century that any organised exploitation of the coal
began. In the Saar, as elsewhere, it was the development of
large-scale industry and the consequent rise in the demand for
fuel that finally set the coal-mining industry on its feet. The
oldest statistics of production available give a figure of 14,292
tons for the output in 1767. This output increased rapidly under
the French occupation. It was about 30,000 tons in the troublous
years of 1794 and 1795, and rose to 104,680 tons in 1811. It continued to increase by leaps and bounds under the German regime,
rising from 100,320 tons in 1816 to 701,689 tons in 1850,
6,572,468 tons in 1890, and 13,216,309 tons in 1913:
This huge increase in output would have been impossible
without a steady influx of workers, most of whom came from
the neighbouring districts of Germany. At the beginning of the
nineteenth century the total population of the Territory was only
a few thousand ; yet the number of persons employed in the
mines alone was no less than 5,163 as early as 1850, 31,166 in
1890, and 56,539 in 1913, if salaried employees and officials are
included.

156

INDUSTRIAL RELATIONS

By that time, moreover, the coal-mining industry was not the
only great industry of the country. Its existence had attracted
other branches of production, especially the heavy metal industry,
which now employs nearly 35,000 workers. In brief, the Saar
Basin had become one of the most highly industrialised areas in
Europe, with a particularly dense population 1 , which offered a
reserve of labour heir to long-established industrial traditions.
But the coal industry easily held first place, since it employed
56,000 persons, or over one-third of the working population.
This vast mining area 2 was exploited under the German
regime by four separate undertakings. Since 1815 it had been
divided between Prussia and Bavaria, and nearly the whole area
was worked by the State. Besides the State mines there we/e
only two private undertakings, the small mine of Hostenbach in
Prussia and that of Frankenholz in Bavaria. The Prussian State
mine was by far the most important. Its administrative organisation, established in 1861, was much the same as in Westphalia
and Silesia. The great extent of the coalfield, at a period when
the means of communication were far behind their present
stage of development, had obliged the Government to divide its
administration into a certain number of districts. The administrative working unit was the inspectorate, whose director was
immediately responsible to the Minister of Commerce and
Industry in Berlin. Twelve inspectorates with separate administration and finance had thus been organised. The Bergwerksdirektion sitting at Saarbrücken was in fact a body for supervision and the reasoned transmission of instructions rather than
one holding true powers of management.
When France, under Article 45 of the Treaty of Versailles,
had acquired the ownership of all the mines in the Saar Territory,
she decided to concentrate their exploitation under the direct
administration of the State. The only exception made was for
the Frankenholz mine, a relatively unimportant one, which was
leased to a French company. For the rest, while maintaining
the old division into inspectorates, with only slight modifications,
the French State organised the Basin as a single undertaking,
1

374 persons per square kilometre ( = 969 per square mile) in 1913.
* We are here speaking only of the exploited part of the Basin which is at
present comprised within the frontiers of the Saar Territory, excluding what is
beyond the Lorraine frontier. Even under the German regime the latter part
was worked by private enterprise.

THE STATE MINES OF THE SAAR BASIN

157

placing the mines situated within 30 kilometres of Saarbrücken
under a single technical and commercial management.
This system of organisation, as defined by the Decree of
23 October 1919, was put into operation as soon as the Basin
was taken over on 18 January 1920. Under these provisions the
management of the State mines in the Saar is subordinate to the
Minister of Public Works in Paris, who delegates his executive
authority to a Director-General at Saarbrücken, assisted by a
Board of fifteen members. This Board, of which Mr. Arthur
Fontaine, Chairman of the Governing Body of the International
Labour Office, is Chairman, includes representatives of the
ministerial departments concerned, persons selected for their
expert knowledge from among coal consumers, mine owners,
and former French miners. Although a purely advisory body,
the part it in fact plays m a y well be compared to that of the
board of directors of a mining company. Similarly, the powers
of the Director-General at Saarbrücken resemble those of the
head of a great private undertaking, and it is the customs of
private industry that have been followed in drawing up the staff
regulations, the systems of administration and accounting, and
the methods of technical and commercial exploitation. 1
At the time when the working of the Saar mines was taken
over by the French Administration, the output was well below
the pre-war level. In 1919, the last year of the German Administration, it was only 8,981,299 tons as compared with 13,216,309
tons in 1913, while the number of persons employed had risen
from 56,589 to 61,964. The average daily output (underground
and surface workers together), which before the war was 777
kilograms, had fallen to 524 kilograms in Í919. In January
1920, the month when the French took over the working of the
mines, it was only 475 kilograms.
There were many reasons for this decline. During the war
the calling up of members of the managing and supervisory
staffs had seriously disorganised the exploitation. The search
for easily worked seams involving a minimum of preparatorywork had led to a wide dispersion of the working faces. It had
not been possible to renew in time the mechanical equipment
worn out by five years of war working. The workers themselves
were tired and physically and morally weakened. The relaxation
1
Cf. Science et Industrie. J a n . 1924 (number devote«! to the Saar): " Les mines
domaniales de la Sarre" . pp. 51-00.

1-5 8

INDUSTRIAI, RELATIONS

of discipline due to the Revolution had affected the output of
the productive workers and swollen the numbers of the unproductive. Hours of work had been considerably reduced \ but as
yet no steps could be taken to compensate for this reduction.
Finally, the German engineers were themselves demoralised by
the certainty of shortly being compelled to leave the mines they
were running.
In this critical situation all the attention of the French
Administration was obviously devoted to increasing the total
output and improving the output per worker. The following
figures, taken from a table communicated to the writer by the
Technical Directorate of the Mines Administration, shows the
results obtained in this respect during the last ten years.

AVERAGE DAILY OUTPUT ( U N D E R G R O U N D A N D SURFACE WORKERS,
INCLUDING GENERAL SERVICES) FOR ALL THE STATE MINES, 1 9 2 0 - 1 9 2 9

(In

kilograms)
Year

.Month
1920

1921

1922

1924

1925

1926

1027

1928

1929

January

475

538

621

710

February

505

508

641

439

770

787

785

837

906

787 »

783

793

798

854

919

March

500

510

657

124

934

795

805

. 808

837

937

965

April

488

514

647

May

478

533

642

249

782

788

783

821

904

971

456

772

777

779

826

917

June

473

552

658

959

663

767

768

784

887

932

July

477

573

970

677

698

784

561

778

837

920

August

447

991

586

684

723

792

722

782

851

948

1,001

1923

September

479

600

683

744

791

783

782 .

860

944

976

October

497

588

682

749

793

798

793

874

972

1,000

November

500

588

681

747

779

791

805

899

971

1,010

December

505

617

687

743

797

794

824

889

965

1,012

' The figures used (or this table arc those of the output after screening, i.e. they give the
weight after deducting the dirt removed by screening, but not that removed t'-y washing. The
monthly figures of net output for 1929 would be on the average 87.7 per cent, of those given in
the table.
• Strike of 100 days.
a
Ca' canny strike.

' The time spent in the mine, including descent and ascent, had been reduced
from sy2 to 7% hours for underground workers, representing 6 hours of actual
work instead of 7. The hours of attendance of surface workers had been fixed at
8 instead of 12 a day, representing an actual working day of 7% to 7% hours
instead of 10.

THE STATE MINES OF THE SAAR BASI*

159

In a note commenting on these figures thé Technical Directorate discusses the reasons for the successive changes in output,
and from this point of view distinguishes three periods.
The first period is from the beginning of 1920 to the beginning of 1923. The increase in output during this period, which
was about 49 per cent., seems to be due to personal rather than
to material factors. Greater concentration of the work and better
organisation of the administrative services resulted in a progressive increase in the percentage of productive workers. The ratio
of the number of days worked at the face to that of the total
number of days worked (underground and at the surface) was
raised from 38 per cent, in January 1920 to 48 per cent, in
September 1922, and was then stabilised round about the latter
figure. At the same time there was also an improvement in the
output of the productive workers under the influence of various
moral factors, among which the payment of the miners in
French francs seems to have played an essential part. This
measure, adopted at a time when the mark was still current in
the Saar and was rapidly depreciating, increased the purchasing
power of the miners' wages ; the conséquent improvement in
their general well-being created an atmosphere favourable to the
progressive re-establishment of discipline and technical skill, as
well as to the workers' acceptance of new methods of working.
The average output per worker at the face, which is the best
measure of this revival of individual output, thus rose from
1,239 kilograms a day in January 1920 to 1,376 kilograms in
January 1922, and to 1,452 kilograms in December of the same
year.
The second period, from July 1923 to the end of 1926 \
opened under less favourable auspices so far as the moral factor
is concerned. The depreciation in the French franc ; the rise in
the cost of living ; the fall in the purchasing power of wages,
which was felt more especially by the German workers living
outside the Saar, who saw wages being revalorised in the rest of
Germany owing to the stabilisation of the mark : all these tended
to create in 1924 a psychological atmosphere unfavourable to the
French Administration. To these circumstances the depression
1
Between the first and second periods there was a strike of 100 days, which
disorganised the working of the Saar mines at the time of the occupation of the Ruhr
(February-May 1923) ; its effects on production were felt until the end of the first
half-year. As the reasons for this strike were political rather than economic—the
dispute breaking out at a time when the purchasing power of wages had reached
its highest point—it seems unnecessary to discuss it here.

160

INDUSTRIAL RELATIONS

in the coal industry, which began in 1925, added discontent
eaused by short time and the fear of dismissal. Agitation reached
its culminating point at the beginning of July 1925, when the
workers started a ca' canny strike. The daily output, which was
still 41,474 tons on 1 July, fell to an average of 25,500 tons
between 3 and 25 July. Finally, on 27 July the trade unions
declared a full strike, which lasted five days and was followed
by a general resumption of work after the conclusion of a new
wage agreement.
Nevertheless, this second period taken as a whole shows an
increase, slower but gradual, in output, amounting in all to
20 per cent, of the initial figure. It seems therefore that this
increase should not be attributed to the same causes as that in
the first period. Circumstances were on the whole unfavourable
to the zeal and discipline of the workers. Furthermore, the
process of concentrating the work had already been carried out ;
there was scarcely any further change in organisation and the
proportion of productive workers remained constant. The factor
that had a preponderating influence during this period was the
material factor.
As a matter of fact, the Administration had not waited until
now to attend to this side of the question but had at once taken
in hand a whole programme of new schemes to increase
individual output and so compensate by mechanical means for
the loss due to the reduction in hours of work.
With a view to increasing the mechanical power available
for underground workers, the production of compressed air was
increased. In order to reduce the time spent by the workers on
the journey between the shaft and the face, landings on two
levels were made in several pits so as to speed up the process of
filling and emptying the cages for the descent and ascent of the
men. Similarly, auxiliary shafts were made for the descent of
men working at more distant places in the mine.
But this programme took some time to carry out and its
effects could not be felt at once. It was not until 1922 that the
first five compressors of the new standard model adopted could
be installed. Nine more were installed in 1923, two in 1924, four
in 1925, and five in 1926. The annual consumption of compressed air, which was about 1,558 million cubic metres in 1920,
rose to over 2,232 million cubic metres in 1925, and to 2,433%
million cubic metres in 1926, a level which was maintained until

THE STATE MINES OF THE SAAB BASIN

1G1

the end of 1928. This increased mechanical power was used to
operate a steadily improving equipment for assisting or replacing
hand labour. The number of mechanical drills rose from 2,016
at the beginning of 1920 to 3,277 at the end of 1926 ; that of
mechanical picks from 4 to 2,493, and that of coal-cutting.
machines from 824 to 1,564. The length of suspended shaker
conveyors for the transport of coal or waste rock between the
working face and the tubs rose from 14,027 metres at the beginning of 1920 to 25,049 metres at the end of 1926. The length of
belt conveyors, which were non-éxistent in 1920, was 1,160 metres
at the end of 1925 and 2,200 metres at the end of 1926.
By the end of the second period the principal parts of the
new programme * had been .completed. Their effects on output
were to be increasingly felt during the following years.
This third period, which opened at the end of 1926, was
characterised from the outset by a marked improvement in the
psychological atmosphere, owing to the rapid rise, followed by
the stabilisation, of the French franc, which resulted in a
revalorisation of the miners'" wages. Furthermore, the depression
in the coal industry, which was intensified after the English
strike, was soon to drive the Administration to adopt a series of
measures that by increasing output helped to bring down the cost
of production.
Faced with an accumulation of stocks, which had risen from
68,000 tons to over 300,000 tons in three months, the management decided on 27 March to cease engaging new workers. This
purely negative measure was insufficient to prevent the increase
in stocks, which was still nearly 80,000 tons in one month, and
the management decided on a first reduction of staff. On 2 May
it dismissed all workers holding a pension, and pensioned off
all those of over 65 years of age, as well as those of 60 to
65 years of age not occupying useful positions. It was thus able
to eliminate about a thousand workers whose output was generally rather low.
The combined effect ofr these various measures was that the
number of workers employed fell by slightly over 6,500 in ten
months, from 73,938 in February to 67,345 in December 1927.
1
It is clearly not within the purview of this article to study the process of
rationalisation carried out in the Saar mines. All that can be done is to give a
few examples of special interest from the point of view of individual output and the
material conditions of the work.
11

162

INDUSTRIAL RELATIONS

But the depression in the market for coal continued to grow
worse. In spite of 22 days of forced unemployment during tho
year, stocks at the end of December passed the disquieting figure
of 600,000 tons, having nearly doubled since the end of March.
In these circumstances the management decided at the beginning of 1928 to continue the process of dismissal, and this time
to make a radical, and if possible definitive, reduction which,
once effected, would relieve the remaining workers from the
constant threat of dismissal and the burden of short time. This
measure was applied to specific categories. On the ground that
it was to the general interest of the Territory to keep the Saar
workers employed wherever possible, the management dismissed
about 2,000 workers living outside the Saar, including nearly
750 surface workers. It also dismissed Saar workers who had a
subsidiary occupation, and all those who had been engaged at an
age of over 18 years and had worked in the mines for less than
two years, the argument being that they must previously have
been engaged in some other occupation and were not yet so
far trained as ininers as to make it difficult for them to be
reabsorbed in some other industry. Fathers of families, however,
with four or more dependent children were exempt from dismissal.
This time the effect was decisive. In addition, the unsatisfactory situation of the coal-mining industry had already induced
a large number of workers to leave the mines to look for work
elsewhere, and the prohibition against engaging new workers
continued to produce its effects, so that the number of workers
fell rapidly. From 66,579 at the end of January 1928, it fell to
61,362 at the end of March, arid to 59,663 at the end of April,
and remained round about this figure until the end of the year.
By the beginning of May 1929 stocks had fallen to 64,000 tons,
and the prohibition against engagements was relaxed. The
inspectorates were authorised to engage workers of under
18 years of age, and it was stated that consideration would be
given to individual applications for employment above that age. *
The number of workers, which had fallen to 59,483 on 31 May
1929, thus rose to 60,359 on 31 October.
This total reduction of some 12,000 to 14,000 workers not
1
Immediately after a serious accident in a Lorraine pit close to the Saar frontier
the neighbouring inspectorates were even authorised to engage Saar miners of up
to 80 years of age who had been thrown out of work by the accident.

THE STATE MINES OF T H E SAAR BASIN

163

only enabled the Administration to bring down production lo
within the limits of marketing possibilities ; it also tended to
improve the quality of the staff. By pensioning off aged and
infirm workers, by dismissing miners with less than two years'
service whose training was still incomplete, and f inali y by the
voluntary departure of a large number of mediocre workers who
feared the possibility of dismissal, the management found itself
at the head of a younger, better selected, and more tractable
staff, whose output was no longer affected by uncertainty for
the morrow. It took advantage of this favourable atmosphere
to carry out a set of rationalisation measures that were profoundly to modify the individual miner's methods of work and
would in other circumstances have run the risk of meeting with
strong resistance from the workers affected.
The tendency of this new programme was to introduce.
wherever circumstances did not make it absolutely impossible, a
uniform method of working, the long-wall method being given
the preference over the pillar-and-stall method. It is true that
there were already several cases of long-wall working in the
Saar, and their number had increased during the last few years,
but so far there had been no idea of standardising the type of
working face and adopting the same working unit for all mines.
To give an idea of the scope of this reform and its effects on
"working conditions, we cannot do better than quote the terms of
the docunient of the Technical Directorate already mentioned :
The economic principle of the reform consisted in the systematic
rejection of the advantages presented by the existence of certain
pillar-and-stall units worked by specially expert miners. A few
particularly brilliant workers have thus been lost in the mass, but the
output of the average worker has been increased by applying the
principles of modern large-scale industry to mining. The transition
from pillar-and-stall to long-wall working is in effect a change from
a sort of home work, subject to the control at longer or shorter
intervals of a passing foreman', to work in a workshop under constant
supervision.
The general adoption of long-wall working has also made it possible
to apply to the extraction of coal that system which is the cardinal
feature of rationalisation, namely, flow work. In long-wall working,
equipped with a shaker conveyor that removes the coal and brings
back waste rock for packing, each worker is an element in a chain
of workers ; the rhythm of his work is determined by a transport
device under mechanical control, and this rhythm he must maintain
on pain of interfering with the work of the other workers in the
chain.
The conveyor, which disposes of the produce at a given rate and
moves along the face with a fixed rhythm, makes the long-wall

164

INDUSTRIAL RELATIONS

shift into a sort of composite individual, capable of a personal effort
and endowed with a collective consciousness. Moreover, this mechanical regulation by the conveyor may at any time be modified by the
supervisory staff ; up to a certain point, therefore, it invests the longwall shift with the qualities of an individual, so that the psychological
weaknesses otherwise inherent in large shifts are no longer feared,
and it has been possible gradually to increase the size of the productive
«nit. In point of fact, the size of a long-wall working is now limited
only by the efficiency of the haulage ways serving it, and the tendency
in the State mines of the Saar appears to be towards the adoption of a
standard working face producing 800 to 400 tons a day.
The increased size of the working face leads also to a further
concentration of the work \ which in turn allows of better and
more concentrated organisation of the administrative services
without a relative increase in their staff. It also makes possible
a more complete and general use of mechanical equipment,
in particular shaker and belt conveyors, the length of which
increased from 25,049 metres (at the end of 1926) to 35,320
metres (on 1 October 1929) for suspended shaker conveyors ;
from 4,965 metres to 18,163 metres for shaker conveyors on
roller or ball bearings, and from 2,220 metres to 4,470 metres for
belt conveyors. Finally, it necessitated a reform in the system
of raising and lowering the workers in the pits, which in turn
reacted on output.
It was found necessary, in fact, to prevent the work of the
whole gang from being disturbed for a few moments at the
beginning and end of every shift, owing to the irregular arrival
of the men at the working face. The elimination of these disturbances, which tended to reduce the hours of actual work, was
all the more important for the large shifts, for with the system
of flow work the delay of some was likely to paralyse the work
of all. According to the new instructions, all the workers had to
descend and ascend together with their foreman in such a way
that the whole number could be at work from the moment they
arrived at the working face until they left for the ascent. Furthermore, to reduce fatigue and loss of time on the journey between
the shaft and the face, trains of trucks were placed at the
disposal of the men whenever circumstances allowed.
The reform of the system of descent was to lead to another,
again directly affecting the workers. To facilitate the descent of
' _.» In one inspectorate visited by the writer the number of v/orkplaces, which
• was 73 at the beginning of 1920, has now been reduced to 8 ; a t the same time the
daily output has been more than doubled and the number of workers has been
reduced from 2,000 t o 2,400.

THE STATE MINES OF THE SAAB BASIN

165

the men, and also to shorten costly and fatiguing journeys, a
special recruiting zone was assigned to each pit, corresponding
to the easiest means of communication. Next, on the basis of
this plan, an attempt was made to assign to each inspectorate,
by means of transfers from pit to pit, the workers resident in its
normal recruiting zone ; 7,000 individual transfers have so far
been effected and the operation is not yet terminated.
Under the cumulative effect of all these measures the average
daily output (underground and surface workers together) continued to rise steadily during the third period. From 837 kilo-"
grams in January 1927 it increased to 889 kilograms at the end
of that year, and to 965 kilograms a year later, reaching in
August 1929 the figure of 1,000 kilograms 1 , which meant for the
thirty-two months a further advance of 38 per cent, on the
initial figure (January 1920) and brought the total advance in
less than ten years to over 100 per cent. An examination of the
figures shows that this improvement during the third period was
almost entirely due to an increase in the average output of
workers at the face, which rose from 1,859 kilograms in January
1927 to 2,264 kilograms in August 1929, representing an improvement of over 35 per cent, on the initial figure (January 1920).
Moreover, there was only one noticeable decline during the
period, namely, in January 1929, when a ca' canny strike
reduced the total daily output by 10 to 25 per cent, during a
fortnight and brought down the average daily output of workers
at the face to 1,838 kilograms, and that of all workers (underground and surface) to 787 kilograms. This dispute, which will
be discussed in more detail later *, as a matter of fact had nothing
to do with the introduction of the rationalisation measures.
It was due to the trade unions' opposition on principle to a new
method of calculating wages that the Administration wished to
introduce for hewers, rather than to a difference of opinion as
to the amount of wages.
This brief survey of the general conditions of working of the
Saar mines since 1920 gives some idea of what has been done by
the Administration to increase individual output during each
period. At the present time the 1913 level is far exceeded, in spite
of the substantial reduction in the working day. The work of
1
There has been further progress since the end of 1929. In December the figure
was 1,012 kilograms and in J a n u a r y 1930 1,029 kilograms.
* In the section dealing with wages, p . 200.

166

INDUSTRIAL RELATIONS

the Administration would certainly not have borne the same fruit
if it had been unable to count on the intelligent collaboration of
the intermediate grades and on the goodwill of the workers. For
in the last resort it is the foreman who ensures the proper
application of the methods of work decided on by the management, and the absence of a spirit of collaboration and confidence
among the workers would have made it impossible to bend them
to such far-reaching changes in their habitual methods of working, or to embark without serious friction on such large-scale
measures as the dismissal of several thousands and the transfer
from one pit to another of about 7,000 workers.
Before analysing the methods that facilitated the establishment of these satisfactory relations between the Directorate of
the Saar mines and its staff, some account may be given of the
composition and characteristics of the latter.
THE

STAFF

The registered staff of the Saar mines on 31 October 1929 was
made up of 60,359 manual workers and 3,391 engineers and
salaried employees. 1
The principal characteristic of the staff of manual workers
is its extreme homogeneity. When the French Government took
possession of the mines in 1920 it kept on all the miners
employed in them, and at no time since then has it been obliged
to have recourse to foreign labour. Apart from a few men from
Lorraine, most of whom were already at work under the German
regime and were taken over with the whole staff in 1920, it may
be said that all the workers are of German origin.
The vast reserve of labour that accumulated in the Territory
during the last century and is continuing to grow by natural
increase and by slow attraction exeried on the neighbouring
districts 2 has been sufficient to provide the mines with all the
workers they have needed, even at the time when the staff
reached the high figure of 74,000 in 1927.
1
The corresponding figures on 31 December 1929 were 00,793 workers and
3,383 engineers and salaried employees, and on 28 February 1930, 00,768 workers
and 3,380 engineers and salaried employees.
2
From 1!)20 to 1926 the population of the Saar rose from 697,000 t o 786,000.
The excess of births over deaths was about 67,000, the net immigration about
23,000. (Jahresbericht der Abteilungen Volkswohlfahrt, Landwirtschaft und Forsten,
Arbeitsamt u. Sozialversicherung
der Regierungskommission
des Saargebietes,
1928, p. 8.)

THE STATE MINES OF THE SAAR BA8IX

167

On I December 1925, when there were already nearly 70,000
workers, their distribution by country of origin was as follows * :
Country of origin

Number

Per cent, of total

Saar Germany
France
Other countries

58,035
10,902
495
143

83.41
15.67
0.71
0.21

Among the 10,902 workers bqrn in Germany, about 7,500
came from the Prussian and Bavarian districts nearest to the
Saar Basin, and 1,750 from other districts in the neighbourhood
of Trier and the Bavarian Palatinate. The recruiting zone for
the Saar mines thus remains almost entirely within very narrow
limits around the actual Basin.
A fair proportion of these miners of other than Saar origin,
moreover, come from so near the frontier that they have not had
to change their residence in order to work in the Saar. On
1 December 1925 over 6,700 workers, or nearly 10 per cent, of
the total, had thus kept their homes in Germany. The number
has fallen since then, as the reductions in staff in February and
March 1928 were most drastic among this category. There are
still, however, about 4,300 of them.
This homogeneous and locally recruited staff offers from the
employers' point of view the further advantage of permanent
attachment to the trade. In this mining country, where coal has
been exploited industrially for over a century, a population of
born miners has been formed, whose trade is held in special
honour, so that usually the son's only ambition is to aßcompany
his father down the pit as soon as he is old enough. Marty workers
in other industries, even when better paid, such as the building
trades, would be glad to go down the pits if they could get
employment there. This special esteem in which mining is held
may be partly explained by the advantages that have long been
connected with it : greater stability due to administration by the
State ; the prospect of an old-age pension ; shorter hours of work
for underground workers and therefore more opportunity for
family life. Such workers do not only bring with them strong
traditions handed down from generation to generation ; once
I hey have entered the mining industry, it is fairly certain that
1
Statistique du personnel ouvrier des mines et usines de VAdministration des mines
fin maníales françaises de la Sarre, d'après les résultats du recensement du 1" décembre
lf>:'.. p. 5 and tablo VIII. Saarbrücken, 1927.

168

INDUSTRIAL RELATIONS

they will not leave it again and that their only ambition will be
to spend their life in it. Since in the Saar almost the whole
Basin is under a single management, they have not even the
power of changing their employer. Unless they learn a new
trade—-and this will often be prevented by age, technical specialisation, or the state of the labour market—leaving the industry,
whether voluntarily or compulsorily, entails the most serious
risks and will often lead to expatriation.
Now, expatriation for the Saar miner is all the more serious
in- that he is linked not only with the mine, but in many cases
also with the land. On 1 December 1925, out of a total of just
under 70,000 workers, there were nearly 23,000 owners of real
estate (35 per cent.), namely, 11,094 owning land and houses,
11,707 owning houses only, and 1,068 owning land.1 Assuming
that a worker is usually not in a position to acquire a house
or land before the age of 30 years, and knowing that the number
of workers of over 30 years on 1 December 1925 was under
33,000, we see that the owners of real estate formed about twothirds of this figure. It is not surprising, therefore, that in these
conditions the length of service of miners is usually considerable.
This will be seen from the following figures, taken from the
census of workers of 1 December 1925 * :
Length of service
(years)

Number of workers

Under 1
*- 5
6-10
11-15
16-20
21-25
26-30
31-35
36-40
41-45
Over 45

3,866
16,917
12,768
7,891
7,442
6,787
7,017
4,361
1,923
558
45

It is naturally to the advantage of the management to maintain and encourage this desire of the workers for stability, which
is the result of circumstances as well as of natural inclination.
The seriousness of the effects of dismissal places a formidable
weapon in the hands of the management ; but for this very reason
it will avoid using it unless absolutely necessary, under penalty
1

Statistique du personnel ouvrier, etc., p. 4 and table I.
* Ibid., table IV.

THE STATE MINES OF THE SAAR BASIN

169

of being accused of inhumanity. Besides, future recruiting may
be compromised unless it keeps intact this feature of security,
which has hitherto formed one of the principal attractions of
mining.
This is no doubt one of the reasons why, when economic
conditions made it necessary in 1928 to restrict production, the
Mines Administration preferred a sudden and radical operation
that would at once free the remaining workers from the fear of
dismissal to spreading the dismissals over a long period, and thus
producing general uncertainty, which would not only have
injured output but might have created a certain dislike for the
occupation.
The following table shows the changes in the staff of the
State mines of the Saar during the last two years.*

LABOUR TURNOVER IN THE STATE MINES OF THE SAAR,
1928 A N D 1929
Number leaving
Month

Died

DisPensioned
oS
. missed

Left vol- On prountarily
motion

Total

Number
engaged

1928 :
January
February
March
April
May v
June
July
August
September
October
November
December

28
16
16
28
8
10
19
IS
9
18
8
13

514
450
398
393
292
825
180
138
156
177
160
79

34
2,808
1,006
32
25
20
27
27
27
33
30
15

188
247
264
256
247
242
244
188
205
169
117
57

25
1
3
4
7
7
29
2
5
1
.1
2

734
3,522
1,682
708
579
604
479
870
402
393
816
166

16
4
31
36
32
39
87
327
462
562
475
368

1929 :
January
February
March
April
May
June
July
August
September
October
November
December

17
14
26
13
21
18
20
22
16
17
13
18

90
71
127
109
51
132
128
89
106
113
68
64

22
15
14
23
20
11
43
23
16
18
17
15

111
80
140
199
165
144
154
122
151
118
57
57

248
180
318
847
259
309
360
257
294
270
157
205

166
176
158
233
222
404
430
524
328
720
529
245

11
3
2
4
15
1
5
4
2
51

•

1
These figures, like most of those contained in this study, have been kindly
•applied by the Labour Department of the Mines Administration.

170

INDUSTRIAL RELATIONS

It will be seen that the number of dismissals is quite
insignificant, except in February and March 1928, when the
great reduction of staff took place. It will also be noted that
there was a slight increase in the number of workers leaving
voluntarily during the months following this wholesale dismissal.
Finally, the large number pensioned off during the first six
months of 1928 illustrates the tendency of the management to
apply the process of reduction primarily to elderly workers able
to claim a pension.
It is a corollary of the workers' security of employment and
long service that the average age of the staff is relatively high.
It was 32 Y¡ years on 1 January 1926, at which date there were
in the Saar mines about 1,650 workers over 55 years of age. 1 It
is true that, when the staff was reduced in 1927 and 1928, the
management tried to eliminate the older workers first by pensioning them off ; but as this elimination was accompanied by
an almost complete prohibition against, engaging new workers,
there was hardly any fall in the average age of the staff. On
31 December 1928 it was still 31.6 years. 3
Should the relatively high average age of the staff be taken as
accounting for the sense of discipline and balance that the management attributes to it ? Should it be concluded that the young
single worker is less easy to handle than the older worker with
a family ? The fact remains that in the Saar nearly two-thirds
of the workers are married and that the average number of
persons dependent on the miner is just over two. 3
But in these matters hasty general conclusions should be
avoided. Small though the Saar Territory may be, it offers surprising contrasts from one district to another, and side by side
with one pit where the workers appear to be pliable and ready
to respect the authority of their leaders, there will be others
where they are irritable and easily offended. In the Basin as
a whole, however, the spirit of discipline is by far the most
general. It is not limited to the workplace ; in their spare time
the workers are often willing to submit to collective discipline
instead of engaging in individual amusements. On public holidays, for instance, they will often leave their families to join in
a choir or orchestra, finding their pleasure in the united effort
to produce a general effect.
• Jahresbericht des Saarknappschaftsverein für das Kalenderjahr
2
Idem, 1928.
' Statistique du personnel ouvrier, etc., pp. 3 and 4, and table I.

19lij.

THE STATE MINES OF T H E SAAR BASIN"

171

This collective consciousness has been utilised and at the
same time developed by the trade unions. Before the war the
movement was persistently thwarted by the Prussian Administration, but after the Revolution it conquered the whole territory
in a day. At first the " free " (Social-Democratic) unions benefited most, but since then the workers have shown a tendency
to prefer the Christian trade unions. This tendency, it may be
added, appears to be the result less of any dislike among the
younger workers for the Social-Democratic unions than of a
change in outlook among the older workers, leading them to leave
these unions and join the Christian unions.
At the present time 90 per cent, of the workers employed in
the Saar mines are organised. They are divided among the four
great German unions concerned : the Social-Democratic Miners'
Federation (Verband der Bergarbeiter Deutschlands) has nearly
25,000 members among the workers in the mines, and the
Christian Federation (Gewerkverein Christlicher
Bergarbeiter
Deutschlands) about 28,000 ; in addition 1,500 metal workers
employed in the mines belong to the Christian Metal Workers'
Federation (Christlicher Metallarbeiterverband),
and nearly 1,000
to the Social-Democratic Metal Workers' Federation (Deutscher
Metallarbeiterverband).
The activities of the Saar unions are thus closely bound up
with those of the great German federations. At the same time,
their large membership and the close contact they have always
maintained with each other in economic and social questions
have given them absolute control over collective relations with
the employer.
In addition to the manual workers, whose composition and
characteristics have been discussed above, the Saar mines now
employ about 3,400 engineers and salaried employees. This
group is far from presenting the same homogeneity as that of
the workers. When the French Administration took over the
Saar mines it was unable to keep in its employment the staff of
German engineers who had run the mines until then, who were
dismissed and replaced by a strengthened staff of French engineers.
On the other hand, it retained some 2,000 German salaried employees, who formed the supervisory and clerical staff. Under
the German regime these employees had not all had the same
status : 1,600 or 1,700 were Prussian or Bavarian officials, and

172

INDUSTRIAL RELATIONS

in this capacity were not liable to dismissal (unkündbar), except
for disciplinary reasons ; their pension rights also were much
higher than those of the French officials.
The French
Administration allowed them to keep all their privileges. The
others, who under the German regime were paid by the day or
month without any special guarantee, were taken on under new
regulations, which were drawn up on the basis of the customs
of private industry. It was also decided to apply these regulations to all German employées engaged in future.
In these conditions, it was inevitable that the number of
" officials " should fall year by year. Circumstances accelerated
this process. In August 1920 a strike broke out among them,
which was met by the Mines Administration with the statement
that, since strikes were incompatible wjth the spirit of thè terms
of their appointment, it was compelled to ask for their resignation.
Except for about fifty of the strikers, however, they were not
really dismissed, for they were immediately re-engaged on the
same terms, but without the privilege of exemption from dismissal. Later on, when the fall in the franc at the time of the
stabilisation of the mark brought the salary of the Saar officials
below the pension they could claim in Germany, a large number
of them left so as to obtain a pension. The number who thus
left voluntarily was 200 in 1924, 220 in 1925, and 170 in 1926.
Owing to these various circumstances the number not liable to
dismissal had fallen by 1 January 1929 to about 200.
To fill the vacancies created by these departures the Administration naturally had to engage new employees. Its staff of
technical employees has been derived almost exclusively from
local recruiting, in particular from the School of Mines at Saarbrücken. On one occasion only, immediately after the occupation of the Ruhr, when there were a large number of vacancies,
it engaged about 200 foremen from the Ruhr who had continued
to work there during the French occupation.
It also appointed about 15 French supervisors, who, unlike
the regular German foremen, have no men under their orders.
Nor do these French supervisors have any relations with the
German supervisory staff, which is placed directly under the
orders of the French engineers ; they merely carry out certain
special supervisory duties entrusted to them by the engineers.
Finally, to replace the services formerly organised in Berlin
and Bonn, and at the same time to cope with the new duties

THE STATE MINES OF THE SAAR BASIN

178

resulting from industrial concentration, in particular with regard
to supplies and sales, the French Administration had to enlarge
its central services considerably. About 700 French employees
were engaged for this purpose, bringing the total French staff
of salaried employees, including engineers, up to about 900.
This brief survey will have shown that the composition of
the staff of salaried employees is as varied as that of the manual
workers is homogeneous. Since its function is to form a link
between a French management and a staff of German workers,
it has to include both nationalities. In a general way, the principle appears to have been to appoint only Germans to posts
involving constant touch with the workers, in particular to all
foremen's posts, to reserve for Frenchmen all posts of engineers
responsible for the management of the inspectorates and divisions,
and to divide the clerical work between the two nationalities,
giving a preponderance to Frenchmen in the central offices at
Saarbrücken and to Germans in the offices of the inspectorates.
Thus the cashiers of the inspectorates, for instance, who pay
the workers, are all Germans.
The heterogeneity of the staff of employees due to differences
in nationality is reinforced by differences in legal status and
professional interests. The former Prussian and Bavarian officials, who at first constituted the majority of the German employees, but whose number has gradually fallen, may be contrasted with the German employees engaged by the French
Administration under new regulations. These regulations, again,
differ from those applied to the French employees, for in the
case of the latter allowance had to be made both for expatriation
and for French use and custom, "which in several points differ
from those of the Saar, without always being equally advantageous. Finally, the conditions of remuneration of the various
categories of employees differ so widely according as they
belong to the technical or to the clerical services that there, too,
there are differences in their interests.
This complexity and diversity, which are characteristic of the
staff of engineers and salaried employees, are reflected in their
organisations. There are six trade unions catering for the
German employees engaged under the new regulations : one
Social-Democratic and one Christian union of technical employees ; one Social-Democratic, one Christian, and one GermanNational union of clerical employees ; and finally, a special-

174

INDUSTRIAL RELATIONS

union for former employees from the Ruhr, whom the other
organisations refused to admit. Each of the first five is affiliated
to the corresponding German central organisation. The staff of
French employees, for its part, has formed a union of about 400
members. Only the French engineers remain outside any trade
organisation.
THE

O R G A N I S A T I O N OF R E L A T I O N S W I T H T H E

STAFF

A purely French management, an entirely German staff of
manual workers, and a staff of salaried employees composed of
both Germans and Frenchmen — these are the human factors, so
to speak, of the problem of industrial relations in the Saar, which
for this reason assumes the dimensions of a problem of international administration.
When it is remembered that this
problem arose as early as January 1920, a few months after the
signing of the Treaty of Versailles, at a time when national
passions were still running high, and in an area particularly
affected by the provisions of the Treaty, it is easy to understand
the conclusion reached by an American after a stay in the Saar
in 1922 :
If by all such means, here in the "hot spot", this problem of industrial relationships can be solved, then certainly there is hope for
every employer in the world !*
To-day, ten years have passed, and the brief survey given
above of the progress made during this period confirms the
optimistic view expressed as early as 1922 by the American
observer.
Technical organisation has been substantially
improved, methods of work have been rationalised, and output
has risen considerably in conditions of collaboration between
management and staff that are generally satisfactory.
The
methods by which this result has been achieved are worthy of
attention.
Relations with Manual

Workers

In the Saar, labour law, like other branches of the law, is
governed by paragraph 23 of the Annex to section IV of Part III
of the Treaty of Versailles :
The laws and regulations in force on 11 November 1918 in the
territory of the Saar Basin (except those enacted in consequence of
the state of war) shall continue to apply.
1

Whiting WILLIAMS : Horny Hands and Hampered Elbows, p. 186.

THE STATE MINES OF THE SAAR BASIN

175

If, for general reasons or to bring these laws and regulations into
accord with the provisions of the present Treaty, it is necessary to
introduce modifications, these shall be decided on, and put into effect
by the Governing Commission, after consultation with the elected
representatives of the inhabitants in such a mariner as the Commission
may determine.
No modification may be made in.the legal regime for the exploitation
of the mines, provided for in paragraph 12 \ without the French State
being previously consulted, unless such modification results from a
general regulation respecting labour adopted by the League of Nations.
In fixing the conditions and hours of labour for men, women and
children, the Governing Commission is to take into consideration the
wishes expressed by the local labour organisations, as well as the principles adopted by the League of Nations.
The first and third paragraphs of this passage are the most
important from the present point of view. The first means that
no German legislation subsequent to the Armistice has effect in
the Saar Territory. Neither the Orders on hours of work, collective agreements, and conciliation and .arbitration, nor the
Works Councils Act, nor any social insurance legislation enacted
since the war apply there automatically. The Governing Commission is free to decide whether and to what extent it will
introduce similar regulations in the Territory. But here the third
paragraph endows the French State, as owner of the mines, with
a special privilege. It gives it the right to be consulted in
advance on the application to the mines of provisions that would
modify the conditions of exploitation, unless they are the result
ôf a general regulation respecting labour adopted by the League
of Nations. Otherwise the Governing Commission has full
power over its decisions ; in practice, it takes into consideration
any observations it considers reasonable. Thus the law as it
affects the working of the mines cannot be modified without the
management having been given the opportunity to put forward
its .views.
For the economic revival it had in view, the French Administration had to make sure of the collaboration of the staff, as
otherwise all its technical measures would have been in vain.
The staff wanted safeguards ; the Administration wras able to
choose between giving these the form of law or leaving them in
the form of voluntary measures. It chose the second alternative.
1
That is to say, the regime for the exploitation of the mines and their accessories and subsidiaries, as established by the German laws and regulations in force
on 11 November 1918, excepting provisions adopted exclusively in view of the
state of war.

176

INDUSTRIAL RELATIONS

To get into touch with its enormous staff of 70,000 workers,
whose confidence it wished to obtain, it preferred to deal only
with the trade unions, as being the natural representatives of the
workers, created by themselves, rather than to see representative
bodies of a new type set up by law, resulting in its (the Administration's) being placed under the control of authorities unconnected with the undertaking. By setting out the new conditions
of employment in the mines in collective agreements freely
concluded with the trade unions, and by loyally carrying out
these agreements, it could better prove to the workers the extent
of its good will and gain their confidence. Furthermore, once
the agreement of the trade unions was obtained, trade union
discipline would do the rest. The workers would obey the orders
of their leaders and would set to work, no longer trusting to
outside pressure, to which it would have been difficult for the
French Administration to submit in view of its rather special
position in the Saar.
It was on these grounds that the French Administration
always opposed the creation of works councils in the mines and
thus blocked the introduction of the system in the Territory as
a whole. It was on the same grounds that it rejected the application to the mines of the Conciliation Order of 8 May 1920 of the
Governing Commission, an Order inspired by the German
Auxiliary Service Act of 15 December 1916 (Hilfsdienstgesetz).
The French State was in fact disinclined to entrust the settlement
of disputes between its staff and itself to a committee presided
over by a foreigner.
But at the same time as it refused any legislative intervention
in the organisation of its relations with the staff, the Administration established relations with their trade union representatives
that became closer and closer as time went on. At a moment
when the whole German working class was benefiting by postrevolutionary legislation, it was a matter of urgency to ensure
that the Saar miners, who were excluded from the scope of this
legislation by the Treaty of Versailles, should work under regulations satisfying modern requirements. Negotiations were opened
with the Saar secretariats of the four great German federations
concerned, with the result that on 1 October 1921 new rules of
employment and a collective agreement came into force. The
scope of these texts is extremely wide. They provide for the
uniform regulation of all the conditions of employment and the

THE STATE MINES OF T H E SAAR BASIN

rights and duties of the whole staff of the Saar mines. * The
reciprocal obligations of worker and employer, the engagement
and classification of the workers, hours of work, the method of
fixing wages and computing the work done, the calculation and
payment of wages, annual holidays with pay, penalties and the
hearing of appeals against them, the reasons for terminating
contracts of employment, the supply of coal to the miners at a
reduced price : these are the principal subjects covered by these
texts, which supplement each other.
But the provision that, from the point of view of industrial
relations, involves the principle of the greatest importance is the
first paragraph of the collective agreement, under which " the
signatory trade unions shall be recognised as the authorised
representatives of the workers ", and which adds : " The members
of the signatory trade unions shall have the right to institute
judicial proceedings for the execution of this agreement. " Thus
the application of the agreement is guaranteed simultaneously
with the recognition of the authority of the unions to negotiate
with the management in all matters concerning the workers. The
foundation was thus laid for constant collaboration between the
Administration and the workers' organisations in social questions.
This collaboration, however, the Administration maintained
should be with all four signatory unions at once, considered as
joint and several representatives of the staff ; and for this reason
the last section of the 1921 agreement provided that denunciation
by the Administration must be notified simultaneously to the local
representatives of all four signatory unions, and that denunciation by the unions must be made simultaneously by the local
representatives of all four unions. The two parties to the agreement thus affirmed their intention of regarding the staff of the
mines as a whole, and of making it subject to uniform and
co-ordinated regulations in such a way that if modifications were
proposed for one category their possible repercussions on other
categories would always be taken into account.
The 1921 agreement provided that either party could give
six months' notice to terminate it. As a matter of fact, the
agreement has never been terminated since it came into force,
but amendments have been made in it by agreement between the
1
The leased mine of Frankenholz, the only other mining undertaking in the
region, did not take part in the negotiations, but it applies without discussion the
agreement concluded between the Administration and the unions.

178

INDUSTRIAL RELATIONS

parties on special points that experience had shown were dealt
with inadequately or unsatisfactorily. 1
As these successive
amendments sometimes made the legal situation somewhat
obscure, the Administration drafted a new text of the agreement
at the beginning of 1929 which incorporated the amendments in
force. This text was communicated to the trade unions, was
signed by them on 9 April, and came into force on 1 May 1929,
It is thus not so much a new agreement as a codification of the
original agreement and its successive amendments.
In accordance with the usual custom in Germany, the 1921
agreement dealt only with the regulation of the general conditions
of employment (Manteltarif), leaving it to the parties themselves
to fix basic wages and bonuses by a special agreement (Lohntarif).
This being so, negotiations were opened between the
Administration and the unions, which resulted in the signature
of a first agreement that came into force on 1 August 1922. This
agreement was concluded for a period of three months, after
which it could be terminated at any time by either party with
a fortnight's notice.
Substantial fluctuations in the cost of living and economic
conditions have obviously led to frequent revisions of the original
agreement. The discussions over these numerous revisions sometimes led to serious difficulties. Twice they resulted in disputes
that affected production. In July 1925, when the depreciation of
the French franc had reduced the purchasing power of wages to a
very low level and the onset of the depression in the coal industry
«TOC

r»ailcíníT

CT1»í*ot

Qnviûtir

OT^»yA»*.-*

+V.rt

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r»p

the wages agreement was achieved only after a dispute, which
entailed first a ca' canny strike of some twenty days and then
a complete stoppage of work for a week. Another dispute, which
led to a slowing down of work, broke out at the beginning of
1929. The reason lay less in the rate of wages than in the method
of calculation, which the management had wished to modify for
the productive workers against the wishes of the trade unions. 2
After a fortnight's dispute, during which the average level of
production was lowered by about one-sixth, the Administration

1
The principal points in question are annual holidays with pay and the supply
of coal to the miners.
* See the section on wages (p. 200).

THE STATE MINES OF T H E SAAR BASIN

170

fía ve up trying to impose its system, and, after an agreement on
the new coefficient, normal work was resumed by the workers.
For the settlement of such disputes there is, as explained
above, no official body. When agreement cannot be reached
directly between the unions and the General Directorate at Saarbrücken, the matter may be referred to the Administrative Board
in Paris, or to the Minister of Public Works, to whom the whole
administration of the mines is subordinated. The representatives
of both the unions and the management are heard, but from
the judicial standpoint these proceedings cannot be regarded as
a form of conciliation or arbitration. The Board or the Minister
intervenes simply as a representative of the French State, the
owner and exploiter of the mines. And, although the decision
taken in consequence of the hearing usually represents a compromise between the original views put forward by the trade
unions and by the management, it is none the less, from the
judicial standpoint, a decision taken solely by the employer.
The trade unions regret this state of affairs, while recognising that it is due to the special position of the French State in
the Saar. They are quite ready to admit that it would be difficult
for the State to submit to a system of conciliation and arbitration
lili : that in force in Germany, with its provision allowing the
awards of the conciliation authorities in certain specified cases to
be declared binding. But they consider that the Mines Administration should at least accept the system of conciliation in force for
>ther industries in the Saar, the working of which was settled by
the Governing Commission in its Order of 8 May 1920. They hold
that if recourse to such procedure had been.possible in January
1929, for instance, the dispute of that date could have been
avoided.
It has already been indicated why the French Administration
made use of its powers under the Treaty of Versailles to reject
the proposal to apply the above Order to the mines it exploits.
In addition, it is strongly convinced that the satisfactory results
it has obtained in its relations with the workers' organisations
are due to the purely voluntary character of the whole system,
and that the disadvantageous effect on these .relations of the
intervention of outside elements would outweigh the possible
advantages of an official system of conciliation.
The general collective agreement and the rules of employment both allude in several of their provisions to the workers"

180

INDUSTRIAL RELATIONS

committees (Arbeiterausschüsse), to which they entrust special
duties. These committees are not a post-war innovation. They
were set up by the German Mines Act (Bergwerksgesetz), and it
was in application of this Act that the Mines Administration
issued the Regulations of 15 April 1925 concerning them.
- According to the provisions now in force, the workers in each
subdivision of the pit (Steigabteilung) elect a delegate (Sicherheitsmann), who must satisfy certain conditions as to age and
length of service. In each inspectorate the delegates thus elected
by the underground workers, together with one or more delegates
of the surface workers, form a workers' committee for the inspectorate. The management may appoint nominees of its own to
the committee, provided that they are fewer in number than thè
elected members. Each committee normally meets onoe a quarter
under the chairmanship of the director of the inspectorate.
Independently of the delegates' individual duties in safety
matters 1 , it is a general function of the workers' committees
under section 25 of the 1925 Regulations " to work for the maintenance or restoration of satisfactory relations between the
members of the staff or between the staff and the Administration ". Sections 26 and 28 add certain duties defined in more
detail. For instance, the committee elects a representative to
supervise the working, and check the loads, of the tubs ; it takes
part in drawing up the instructions concerning the use of new
machinery ; it scrutinises the rules of employment and amend-'
ments to these, and gives its opinion on their provisions before
they come into force ; it lays before the management and
examines jointly with it all demands, cumpiainis, and wishes of
the staff concerning the conditions of work and of employment ;
it sees that the rules of employment and health and safety
measures are punctually observed by the workers.
Finally, the rules of employment and the collective agreement
provide for the co-operation of the workers' committee in
specified cases — for instance, the designation of the posts
where young workers are to be employed, the payment of these
workers' wages, the promotion of the workers and their appointment to higher grades s , the fixing of the time at which the
descent is to begin for each shift, the changes to be made in the
normal hours of work before and after public holidays, the
1
1

See the section on safety (p. 197).
See the section on wages (p. 200).

THE STATE MINES OF THE SAAB BASIN

181

organisation of auxiliary or overtime shifts, the fixing of the
rota for annual leave.
Section 28 of the Regulations concerning the workers' committees adds that they may. in no case consider demands or
complaints concerning individual shifts or persons.
What practical significance have these workers' committees
for the relations between the employer and the staff ? Not very
great, it would appear. Apart from the definite duties assigned
to them, they do not seem to be very active as a rule. All the
inspectorates are not of course alike in this respect. Some
committees take their duties more seriously than others. ' In ageneral, way, however, it seems that the workers take little
interest in them. The trade unions consider them antiquated
and would like to have them replaced by works councils on the
German model. In particular, they object that they are not
purely labour institutions, since the management takes part in
the appointment of the members, presides over the meetings, anil
fixes the agenda. Finally, the long intervals between the meetings and the prohibition against discussing individual cases
prevent the committees from doing any real work for the protection of the interests of the staff.
F r o m this point of view the workers' committees are not so
important as the conciliation committees (Tarifausschüsse)
set
up on 2 October 1922 by a collective agreement between the
Administration and the four trade unions concerned, in the
following circumstances.
Paragraph 60 of the rules of employment provided that :
All disputes concerning the interpretation of the rules of employment and the wage agreements shall as far as possible be settled by
amicable agreement. If this method fails, judicial proceedings may
be taken.
"On similar lines, section 10 of the collective
provided that :

agreement

Disputes concerning the application of this collective agreement
shall first of all be settled between the engineer and the worker or
shift concerned. If agreement is not reached, the case shall be examined
1
In one inspectorate visited by the writer the principal engineer said that the
committees were fairly regular in making suggestions for the adaptation or development of the equipment, and that these suggestions were examined with great
attention by the management. At the moment it was considering a proposal for
doing away with a staircase leading to the shaft which involved unnecessary
fatigue for the workers.

1.82

IXDUSTUIAI. KELATIONS

l)v the divisional engineer and the member of the workers' committee
representing the worker. Il" a settlement cannot be obtained by
amicable agreement, ordinar}' judicial proceedings may be taken.
Finally, dealing in a general way with " all complaints or
demands connected with employment ", paragraph 5 of the rules
oí employment provided that these should be submitted to the
worker's immediate superior, and, if satisfaction was not
obtained, they could be laid before the next higher authority.
It added :
A decision shall not be taken until the claimant or the member of
the workers' committee whom he has authorised to represent him has
been given the opportunity of being heard by the authority taking
the decision.
In practice it was found that this procedure was insufficient
lo settle many disputes and to remove numerous causes of friction
between the staff and the management. Too often the foreman,
jealous of his authority, roughly rejected the worker's demand
instead of examining it and passing it on, and sometimes justified
his refusal by referring to orders received. Too often, also, when
the complaint reached the engineer, his attention was fully taken
up with technical considerations, so that he paid very little attention to it, and tended merely to approve the attitude taken by the
worker's immediate superior. The incensed worker then applied
to the local branch of the trade union, which transmitted his
demand to the district branch. From there it was referred to
the central secretariat, which in turn approached the Administration at Saarbrücken. Thus, before the incident had reached the
ears of the Administration, it had had time to embitter the
atmosphere and become a source of discontent.
In addition,
the Administration was in a difficult position for satisfying the
unions' demands. Being without information, all it could do
was to return the case through the ordinary channels to the
engineer concerned so as to obtain materials for a reply, which
were only very rarely in contradiction with the decision complained of.
The effect of this lengthy procedure could only be to delay
settlement and give rise to misunderstanding. It failed to abolish
the causes of discontent, which, as they accumulated, tended to
poison the whole atmosphere. The engineer, to whom the
worker's complaint was referred by the Administration, felt
annoyed with the man, and labelled him " grumbler ". The

T H E STATE MINES OF THE SAAR BASIN

183

worker, for his part, remained convinced that he was in the
right. In some cases he might apply to the probiviral courts in
support of his case. In others he gave way, but continued to
feel that he had been badly treated.
It was to overcome all these difficulties that the trade unions
concluded with the Administration the agreement of 2 October
1922, which has since formed an integral part of the general
collective, agreement. The parties to it state in the preamble
their intention of setting up " a body for the amicable settlement
of disputes arising out of divergencies in the interpretation of
the rules of employment and the collective agreement of
8 October 1921 and, in a general way, of all difficulties arising
out of the employment that cannot be settled by a direct understanding. "
There are two grades of conciliation committees set up under
this agreement : (1) in each of the twelve inspectorates there is
a committee consisting of the chief engineer of the group or the
principal engineer of the inspectorate as chairman, an engineer
of the inspectorate appointed by the principal engineer, and
three members of the workers' committee for the inspectorate
elected by that committee ; (2) at the General Directorate at
Saarbrücken there is a Central Committee, consisting of the
Technical Director as chairman, the chief engineer directly under
the Director-General, the head of the Labour Department, and
one or more representatives of the unions party to the collective
agreement.
The inspectorate committees deal with all disputes, concerning only the inspectorate, that arise out of the application of
the rules of employment and collective agreements, except questions where a principle is involved. The Central Committee
deals with all questions involving points of principle, all disputes
affecting the undertaking as a whole, and all cases in which an
inspectorate committee has not been able to arrive at an agreement.
In each committee the parties must try to reach an agreement.
If in an inspectorate committee the representatives of the Administration and two out of the three workers' representatives accept a
proposed settlement, agreement is deemed to have been reached.
No appeal against the settlement may be made by the General
Directorate or the trade unions, except on the ground of incompetence, when it must be lodged within eight days. Failing

184

INDUSTRIAL RELATIONS

agreement in the inspectorate committee, the chairman transmits the documents of the case to the chairman of the Central
Committee. The latter, before laying the question before his
Committee, may refer it back to the first committee with a
request, for reconsideration.
- Agreements concluded in the Central Committee come into
force as soon as the minutes of the proceedings have been signed.
Failing agreement, ordinary judicial proceedings may be taken.
A very important provision of the agreement of 2 October
1922 is that which insists on the application of section 10 of the
collective agreement of 1921 before allowing the parties to refer
a question to the inspectorate committee. According to this
provision, before any conciliation proceedings are taken before a
committee, the dispute must be discussed between the engineer
and the worker or shift concerned ; if no agreement is reached,
it must be considered by the divisional engineer and the member
of the workers' committee representing the worker. This provision ensures that the engineer will at least have had an opportunity of studying and settling the question before it is brought
before the conciliation committee.
This system, which has been in operation for seven years,
appears to have had excellent results in every respect. * It has
obliged foremen and engineers to whom complaints are addressed
to examine their merits carefully before rejecting them, for they
know that in that case they must justify their attitude before'
the conciliation committees. The worker, for his part, has the
moral satisfaction of knowing from experience that his complaints will not be lightly turned down, but will be given a fair
examination in consulîâliun wiih his authorised representatives.
Finally, for the Administration, the system acts as a sort of
barometer of the psychological atmosphere in the Basin. If
it finds that repeated complaints are being transmitted to the
Central Committee on a particular question, it can look for the
cause and prevent the discontent from becoming general. In
such cases it has often convened the trade unions for a joint
consideration of the difficulty, and has tried to prevent further
complaints by making the disputed section of the agreement or
rules of employment either clearer or fuller.
1
The trade unions state that they are satisfied with the system, which they
have helped to devise. In one respect, however, they would like a change, namely,
that an impartial chairman should take the place of the present chairman.

THE STATE MINES OF THE SAAR BASIN

185

The following figures give some idea of the efficacity of the
system.
Since the conciliation committees were set up on
2 Oétober 1922 and up to 1 January 1929, 5,071 complaints were
brought before them. Out of this total, 300 were rejected on the
ground that the committee was not competent to deal with them,
259 were settled before examination by the committee, 2,978 were
settled by conciliation by the local committees, 1,534 were
referred to the Central Committee, which settled 471. Fourfifths of the cases were thus arranged by mutual agreement. Of
the remaining 1,063 cases, nearly two-thirds were dropped by the
parties, who decided not to take ordinary judicial proceedings ;
397, on the contrary, were brought before the probiviral court.
Out of this number, 201 were settled before judgment by various
compromises, 72 were withdrawn, 70 were decided in favour of
the Administration and 54 in favour of the workers. Thus in
75 months, out of 5,071 complaints made by the staff, only 124
were the subject of a judicial decision. This figure, which is
absurdly small for a total staff of 60,000 to 70,000 workers, is not
only proof of the value of the system ; it is also evidence of the
spirit of mutual conciliation, fairness, and understanding that
animates the parties during the negotiations.
This spirit of harmony and understanding, both parties
declare, is due above all to the good faith displayed by both in
carrying out the settlements reached and the faithful and exact
observance of the provisions of agreements. " We have adopted
the system of having everything in writing," said an official of
the Administration ; " we have considered it best to formulate the
rules of the game clearly, and once formulated, we keep to them.
If experience shows that one of them is lacking in clearness and
precision and gives rise to disputes, we try at once to arrive at
an agreement with the other party on an amended text."
While the reciprocal confidence governing the relations
between the Administration and the workers' organisations is
in part the outcome of the conscientious observance of obligations, it seems also to be due to the direct contact that the
Administration has maintained with the unions for* carrying out
its programme of rationalisation. Without collective negotiations
in the strict sense, the Administration has adopted the rule of
keeping the organisations informed whenever possible of any
measures it proposes to take that may affect the workers,. This

1S6

INDUSTRIAL RELATIONS

method has the advantage of enabling the Administration, if
need be, to explain to the unions in advance the reasons for
each measure, and to prevent troublesome misunderstandings.
Once the union is acquainted with the matter, it can deal with the
complaints of discontented members by explaining to them the
general nature and purpose of the reform and perhaps the need
of submitting to it. The attitude of the union will often be
regarded by the individual worker as a sufficient guarantee of
the reasonableness of the measure or the uselessness of resisting
it. His acceptance will be as much due to the influence of the
union as to the habit of obeying orders.
A few examples will show more clearly the importance in this
respect of the contact maintained between the employer and the
workers' organisations.
When the Administration decided to make long-wall working
general, and therefore to increase the size of the shifts, this
meant for many miners, and particularly the most skilled, a
complete change in their ordinary ways of working. In pillarand-stall working, where they worked with a few assistants as
if in a small workshop, they could get the full advantage of their
skill and earn wages almost exactly proportionate to their merits.
In long-wall working, on the contrary, where gangs of 150 to 200
men, divided into three shifts, are employed, the members of
which do not all know each other, the worker is reduced to a
mere unit whose wages, calculated according to the number of
shifts worked, depend on the collective work done every month
by the group to which he belongs. His personal output is thus
reduced by the rhythm of the machine — the cutter preceding
him or the conveyor following him — to the level of the average
output of his group. Moreover, he is no longer free to settle the
speed and organisation of his work as he pleases. In a large
shift engaged on flow work and equipped with up-to-date
machinery, no interruption can be allowed while the machine is
working. The work must begin and end at the times fixed for
the whole shift. Breaks for meals must be taken collectively,
sometimes at the face itself, to allow of the simultaneous and
rapid resumption of work. And if by chance the machine stops,
if a train of tubs is behind time in collecting the coal, the worker
is obliged, whatever his particular trade, to carry out any
auxiliary work asked of him, since the mine cannot tolerate the
prolonged inactivity of so large a shift. Formerly a hewer could

T H E STATE MIXES OF THE SAAR BASIN

187

not have been asked to shovel coal. In other words, long-wall
working requires more pliancy on the part of the staff.
It is obvious that such a reform may well meet with vigorous
individual opposition. Perhaps this has been less so in the Saar
than elsewhere owing to the spirit of collective discipline already
described. But there seems to be ho doubt that the favourable
attitude of the unions to the reform had its effect on the staff.
The trade union leaders were informed of the intentions of the
•Administration and decided to support them. As they were
aware that the same reform had been carried out in other German
coalfields, in particular the Ruhr, and as they also approved \n
principle of that equalisation of wages and strengthening of the
collective spirit which are produced by large shifts, they helped
by their attitude to convince the recalcitrant.
Even more significant was the maintenance of relations with
the unions during the large-scale dismissals effected by the
Administration at the beginning of 1928. 1 No doubt the unions
had already been prepared for a possible reduction of staff by
the amount of short time : 22 days of unemployment in 1927,
3 days in January and 4 days in February 1928. But it is likely
that the measure would have met with more opposition if the
Administration had not taken care to inform the workers' organisations of the main lines of its programme, so giving them an
opportunity of considering it and suggesting certain ways of
alleviating its effects. In reply to their comments, it promised
that its representatives on the Insurance Fund would, wherever
possible, support applications for pensions for dismissed miners.
It also agreed to reconsider later any specially deserving individual cases referred to it. After these preliminaries the Administration was able to carry out its proposed scheme without
fearing a collective dispute. The unions confined their activities
to getting pensions for as many workers as possible and obtaining the re-engagement of some of. the workers who were hardest
hit by dismissal. For the rest, they tried to find openings for
the dismissed miners in other branches of industry;' with most
success in public works, railways, and building.
Owing to the preliminary negotiations between the Administration and the unions, more than 3,800 workers were
dismissed at a stroke, not only without leading to a dispute, but
1

See above, p. 162.

188

INDUSTRIAL RELATIONS

without seriously affecting the labour market of the Saar. 1 The
percentage unemployed for the whole Territory, which was 2.29
in January 1928 and 2.12 in February, rose only to 2.22 in March,
immediately after the dismissals, fell again at once to 2.01 in
April, and remained between 1 and 2 per cent, until October. *.
Its relations with the trade unions were also very useful to
the Administration when, as a means of systematising the raising
and lowering of the workers in the pits according to the subdivision in which they worked 3, it devised the scheme of assigning a normal recruiting zone to each pit and of transferring the
men accordingly from one pit to another. Here, again, individual
opposition was to be feared, which, if it crystallised out, might
have created a general atmosphere of discontent. One need
merely imagine how much a man who has worked for years in
the same pit, so that he is accustomed to the quality of its coal,
and knows its advantages and risks, may dislike being transferred
to another pit quite new to him, with the possible fear of no
longer earning as high a wage. Such feelings of apprehension
and distrust were much reduced in the Saar by the attitude of
the unions, to which the Administration had communicated its
scheme in advance, and which had understood its advantages
while proposing certain changes on points of detail, suggested to
them by their thorough knowledge of the topographical conditions. *
Without this careful working out of the details of the scheme
in consultation with the unions, it is hardly likely that 7,000
individual transfers could have been made within a few months.
Though the confidence of the workers in their organisations,
and their knowledge of the close relations between these and the
1
It should be noted, however, that the 2,000 dismissed workers who were
tesident outside the Saar Territory were not covered by the employment statisticsfor the Territory, so that these statistics give only an incomplete idea of the unemployment produced by the reduction of the staff of the mines.
2
The increase in unemployment at the end of the year (2.38 per cent, in November, 4.07 per cent, in December) is attributed by the Labour Department of the
Territory partly to the renewed unemployment of the miners dismissed at the
beginning of the year, for whom only temporary employment had been found
during the season in building or public works. [Jahresbericht der Abteilungen VolksWohlfahrt, Landwirtschaft und Forsten, Arbeitsamt und Sozialversicherung der
Regierungskommission des Saargebietes, 1928, p. 136.)
3
See above, p. 164.
* They pointed out, for instance, that certain places, apparently closer to one
pit than another, were separated from it by undulations of the ground, making the
journey more tiring for a man walking or cycling.

THE STATE MINES OF THE SAAR BASIN

188

Administration, play an important part in the good will with
which they have accepted the new regime and the reforms in the
methods of working, and made the necessary effort to increase
output, some importance must also be attached to the direct
contact in the mines between the engineers and the staff. It has
already been stated that before complaining to a conciliation
committee the worker must apply to thé divisional engineer.
Furthermore, the regulations of t h e French Administration,
unlike the earlier ones, require every ordinary engineer to go down
the mine five times a week, and every divisional engineer twice.
I n this way each workplace is visited on an average twice a
month. It seems unnecessary to stress the moral as well as
technical advantages of this direct contact during work between
miner and engineer. It gives the former an opportunity of
voicing certain minor complaints that he often would not think
of formulating in an official way, though in the long run they
tend to affect his interest in his work.
The extension of the system of large shifts has also established
closer relations between the foremen and the workers. When
pillar-and-stall working was the rule, the foreman had to go
from one workplace to another to supervise his men ; he got
tired, lost time on journeys, and could spend only a few moments
with each group. Being always in a hurry, he did not get to
know his men and tended to answer their questions brusquely.
When it is added that his official position tended to make him
keep his distance from the worker, it is intelligible that the forem a n was too often not so much a factor in, as an obstacle to,
good industrial relations.
To-day the situation has changed considerably. The regulations oblige the foreman to go down the mine with his gang. The
men all work in a single group, so that he has them under his
eye all the time, can guide and direct their work, explain new
methods to them, and with the help of the engineer solve small
practical difficulties as they arise. Being closer to the workers
and in direct touch with them his attitude has changed with his
functions ; he has become the collaborator as much as the supervisor of the men in his gang.

The co-ordination of relations with the unions. Hit- collection
of up-to-date statistical and other information on labour qii'-s-

190

INDUSTRIAL RELATIONS

tions, the preparation of solutions for problems relating to labour,
the regular transmission of instructions to the directors of the
inspectorates on the decisions taken or the agreements concluded
by the Administration in matters of labour policy, and the supervision of the faithful carrying out of these instructions are in the
hands of a special Department, the Labour Department, attached
to the Technical Directorate at Saarbrücken.
This Department, which is composed of seven persons, including the chief and a German assistant chief, formerly a Prussian
administrative official, is not directly responsible for the administration of the staff. Paragraph 7 of the rules of employment
provides that engagements are made according to need by I he
principal engineers or their representatives, that is to say, by
the chiefs of the inspectorates. These officials are also responsible for keeping the files of the workers up to date,
recording among other things their name, address, family
responsibilities, method of travelling to their work, previous
employment, promotions, punishments, transfers, holidays,
sickness OF injuries, and the date of any departure and re-engagement.
The Labour Department, therefore, does not deal in a general
way with individual cases ; but, in virtue of the decisions taken
by the General Directorate with regard to the programme of
production, it may fix certain limits for the engagement of new
workers, or even forbid it entirely. It was explained above that, as
early as the beginning of 1927, the Administration, before
proceeding to any dismissals, tried to reduce the staff by stopping
the engagement of new workers. 1 Even now the engagement of
workers over 18 years of age is allowed only with the approval of
the Labour Department, given in each individual case on the
basis of the report submitted by the principal engineer. Up to
7 May 1929, a maximum staff was also assigned to each division.
To-day this limit has been replaced by instructions as to the
average daily output that each division is required to attain, the
division being left free to fix the size of its staff accordingly. "
For purposes of control, however, it must once a month send in
1

See above, p . 162.
The average production thus asked of each division is fixed at m e e t i n g held
by the Director-General with the chiefs concerned. I t is based on the estimates of
possible sales made by the Commercial Department and the estimates of possibic
production made by the Technical Directorate.
2

THE STATE MINES OF THE SAAR BAS1X

l!)l

a statement of its staff to the Labour Department, together with
certain individual items of information. Among other uses this
statement enables the Department to pursue its policy of
rationalising recruiting by transferring the workers from one
pit to another when they are not resident in the normal zone of
the pit where they work.
There is one case in which decisions relating to individual
workers must always be referred to the Labour Department at
Saarbrücken. This is the case of dismissal. When a principal
engineer dismisses a worker, he must notify the Labour Department, sending a statement of the worker's name, address, occupation at the time of dismissal, length of service, technical skill, and
family responsibilities, the date of his offence, the date of his
interview with the divisional engineer, the section of the regulations justifying dismissal, a summary of the enquiry, and any
previous penalties for offences of the same kind during the past
two years. Ori the basis of this very detailed information the
Director-General himself, after consulting the principal engineer
and the chief engineer, and on the recommendation of the
Technical Director, takes his decision concerning the period
during which the miner in question may not be re-engaged.
These exceptional precautions in the case of dismissal are
justified by the extreme seriousness of this penalty in a region
where there is, practically speaking, no other mining undertaking and dismissal may lead to prolonged unemployment, a
change of occupation, and even expatriation. For all smaller
penalties the case is referred to the Labour Department only at
the worker's request.
Relations

with Salaried

Employees

The relations of the Administration with its salaried employees
differ very much from those with the workers. Collective
bargaining in the true sense cannot be said to take place between
the employees' unions and the Administration. The regulations
for each category of employees are simply transmitted for consideration to the organisations concerned and discussed at meetings with them. Thus, the regulations for the German employees
and the amendments to these are examined in common with the
representatives of the six unions concerned, who inform the
Administration of their comments. But there are no real negotia-

192

INDUSTRIAL RELATIONS

tions involved in this collective consideration of the regulations,
nor does it aim at reaching an agreement between the parties.
The Administration takes the observations made into account or
not, as it pleases.
One of the points put forward by the Administration in support of this difference of treatment for workers and employees is
the lack of homogeneity in the staff of employees. For some of
them it has to take German usage into account, for others French
usage and the special conditions of expatriation, and it considers
that it would be difficult to arrive at a sufficiently flexible and
harmonious result by way of collective agreements. It also refers
to the lack of understanding that often prevails, even between the
various German organisations of employees. It considers that
these conditions would too often paralyse the progress of negotiations.
Finally, as regards salaries, for instance, the Administration
thinks it superfluous to enter into a discussion with the employees
when it has already reached an agreement with the workers,
since in practice the coefficient of variation must always be the
same for both categories. Any attempt to grant the employees a
higher coefficient than the workers would in fact lead to the
immediate reopening of negotiations by the latter. Furthermore,
the Administration has never contemplated the admission of the
trade union representatives of the employees to the same table as
those of the workers, since it regards their interests as clearly
different, and it would be impossible for it to grant certain
privileges to the employees to the exclusion of the workers, and
vice versa.
The staff of engineers and salaried employees also differs
from that of manual workers in being immediately subordinate,
to the General Directorate at Saarbrücken. It is administered by
a special Department, the Staff Department, under the DirectorGeneral. This Department is responsible for engagements and
dismissals, keeps the personal files up to date, and proposes to
the Director-General any bonuses to be granted at the end of the
year, or penalties to be imposed. It also collects up-to-date
information on problems relating to conditions of employment,
prepares solutions for them, and is responsible for relations with
the unions.

198

THE STATE MINES OF THE SAAR BASIN

TECHNICAL

EDUCATION

One of the factors in the success of the methods of rationalisation in the Saar has certainly been the high standard of the
foremen and similar grades. Reference has already been made
to the important part they played in applying the new methods.
While the system of large shifts has to a certain extent lightened
their work, as they no longer need to make long and fatiguing
journeys to visit the different members «f their gang, but can
have them all under their eye all the time, yet it demands of
them greater technical capacity, more highly developed organising power, and more mechanical knowledge.
It is its institution for technical education that provides the
Administration with the necessary staff.
Under the former German mining legislation, workers under
18 years of age have to attend a continuation school (Werkschule), and the employer must give them every facility for this
purpose. Under the present Mines Administration these schools
are organised by the" General Education Department.
Two
courses, held in alternate weeks, are run simultaneously so as
to allow the young workers to attend regularly. The workers
under 18 years of age are divided into two groups, A and B.
During one week Group A works the morning shift and Group
B the afternoon shift ; during the next week the position is
As the courses are held in the afternoon, the workers
m reversed.
' i n each group are thus able to attend them alternately. A special
list is made of each group, copies being sent to the Education
Department. If a boy does not attend the course, the rules of
employment provide for punishments, which, if the offence is
repeated, may even go so far as dismissal.
In view of the type of pupil and the curriculum, these continuation schools must be considered as institutions for the
continuation of general education rather than for technical education. This is also true of the higher^grade continuation courses
(Werkschuloberklasse),
which are intended for the best pupils
in the continuation schools. The teachers in the latter have
instructions to pick out the pupils they consider the cleverest
and encourage them to attend the higher-grade courses instead.
From the point of view of the teaching given, therefore, the
13

194

INDUSTRIAL RELATIONS

higher-grade continuation course is not so much a sequel to the
continuation school as a superior version of it ; but if a youth
attends it this is an indication that he hopes to rise above the
class of wage earner. Although the subjects taught in these
higher-grade continuation courses are still within the range of
general education, they may be described as pre-vocational, for
it is from among their pupils that the candidates for the technical
schools are subsequently selected, and their curriculum is
intended to prepare for the entrance examination to these schools.
The pupils, while continuing to work underground as apprentices
or workers, already consider themselves, unlike the pupils of
the continuation schools, as future salaried employees ; so much
so, indeed, that they continue to work during strikes without
arousing any protest from their comrades.
There are four higher-grade continuation courses in the
Basin. There are three classes a week : two of two hours, and
a third'of six hours, which takes thè place of an ordinary shift
and for which the pupils are paid their normal wages by the
Administration. About 300 pupils attend these courses, the
normal length of which:is two years.
Technical education, properly so called, begins only with the
preparatory mining schools (Bergvorschule), the entrance
examination for which is based on the general subjects forming
the curriculum of the higher-grade continuation courses. These
preparatory mining schools, too, are four in number, and they
share premises with the higher-grade courses. They are not,
however, under the General Education Department, but under
the Technical Education Department.
In addition to passing the entrance examination, a worker
who wishes to be admitted to a preparatory mining school must
be not less than 18 and not more than 23 years of age, and must
have worked underground for at least two years. The number
admitted is fixed once a year, after the examination, with reference both to the probable needs of the mines and to the standard
of the results. In July 1929, 47 candidates were admitted out
of 70. Nearly all came on from the higher-grade continuation
courses and were sons of miners or mine foremen. The total
number of pupils is at present about 300. The period of study
is three years. Instruction is given three times a week, from
8 a.m. to noon. During the whole period of attending these

THE STATE MINES OF THE SAAB BASIN

198

courses the pupils continue to work underground, on the
afternoon shift (2 p.m. to 9.30 p.m.) \ but they are already
known as Bergvorschüler in their division, and wherever possible
they are used on special jobs, such as borings and test workings.
In the schools they are taught scientific subjects in preparation
for the technical instruction.
It is at the School of Mines (Bergschule) that candidates for
the post of foreman are finally trained. The entrance examination is open to all, but, in fact, nearly all the pupils come from
the preparatory schools described above.
A candidate for admission to the School of Mines must be
from 18 to 26 years old, and have attained the grade of skilled
worker (Vollhauer or gelernter Handwerker), which is normally
not reached until after six years, or in exceptional cases five
years, of work. In addition he must pass an entrance examination based on the curriculum of the preparatory mining schools,
and undergo a special medical examination by the doctors of
the Administration.2
The instruction in the School of Mines is divided into two
sections, one for mining, the other for mechanical engineering,
and the pupils are divided between these two according to their
previous practical training. At the entrance examination in
July 1929, 20 candidates out of 39 were admitted to the mining
section and 7 out of 26 to the engineering section. *
When the candidates have been admitted to thé School of
Mines they are no longer under the authority of the division in
which they work, and their pay becomes chargeable to the
technical education budget.
The period of study is two years. The pupil is first sent to
a French mine for a probationary period of six weeks ; then he
returns to the Saar -for a further probationary period of six weeks
in his own division, where he is employed on special work on
1
This obviously means a considerable strain on the pupils for at least three
years. But the Administration believes that the consequent process of natural
selection (about 7 or S pupils give up at the end of the first year, and 3 or 4 at the
end of the second) has good results on the whole.
2
Like all miners, the candidate will already have had a general medical examination by the doctors of the Insurance Fund (Knappschaft) when he was first
engaged.
* The lower proportion admitted to the engineering section is due to the larger.
number of candidates taking the course for the second time and to the greater
attractiveness of this career.

196

INDUSTRIAL RELATIONS

which he draws up reports. On 15 October he enters the School
of Mines at Saarbrücken, where the hours of attendance are
7 % a day (8 a.m. to noon, and 2.30 p.m. to 6 p.m.). During this
period of study most of the pupils continue to live at home in
their own village in the Basin and travel daily to Saarbrücken ;
'the travelling facilities are such that one-third of them can even
go home for lunch. The School makes no provision for board
or lodging.
The instruction naturally includes a large number of visits
to industrial undertakings and mines. Every attempt is made to
show the pupils plants where any new devices have been installed,
so as to prepare them for their future duty as foremen of introducing new methods. Among the theoretical subjects, special reference may be made to the course in legislation, covering the
mining laws and police regulations for the mines, for it is the
foreman who, under German legislation, may in certain cases be
held responsible for accidents.
At the end of a year the pupil takes an intermediate examination \ after which the courses are interrupted for three months,
during which he has two further probationary periods of six
weeks each, one in France, the other in the Basin, where this
time he has a supervisory post. At the end of the second year
of theoretical work, he takes the final examination, conducted by
a committee of engineers. If he passes *, he is given four or five
days' holiday with pay, and then goes back to his own división,
where he is graded with the supervisory staff on a day-to-day
basis pending a vacancy as foreman. *
An interesting innovation introduced by the French Administration has been the payment in full of pupils in the School of
Mines during the whole period of study. * Except during the
probationary periods in France and the Saar, when they are
paid at normal rates by the mines where they are working, the
pupils receive during the first year of study the full wage of a
skilled worker, and during the second year the pay fixed for the
1

The number rejected is very small : none in 1929, only one in 1928.
Only one candidate was rejected in 1929.
* As the number admitted to' the School is fixed according to probable needs,
the waiting period is never very long. It was a little longer than usual, however,
at the time of the recent reductions in staff. In 1929 the first 4 candidates who
passed the final examination in July were appointed in Novermber.
1
Formerly the pupils were merely given an allowance according to their need,
to enable them to complete their studies.
2

THE STATE MINES OF THE SAAB BASIN

197

r
supervisory staff. They thus earn as much as or more than they
were earning in the pit. In addition, all their travelling expenses
are reimbursed in full. This generous measure, which costs the
Administration about 500,000 francs a year, relieves the pupils
of all anxiety as to ways and means. They are no longer driven,
as they used to be, to earn a living by working a shift on alternate
days or for half the year, to the detriment of the continuity of
their studies.
Finally, the Administration does not consider that its interest
iii the technical training of a pupil necessarily stops when he
leaves the School of Mines. Twice it has encouraged the pupil
who came out top in the examination to continue his studies.
One of the two refused for family reasons ; the other was sent
by the Administration to the Electro-Technical Institute at
Nancy, where his fees were paid, and he was afterwards taken
on as an electrical engineer.
Before concluding this section, reference should at least be
made to the Higher Technical College in the Saar, which is
under the auspices of the Mines Administration and is largely
subsidised by it. The scope of this institution, however, goes so
far beyond mines and mining that it would be out of place to
describe it here.
HYGIENE

AND

SAFETY

The Mines Administration has no special department for
safety. The Technical Directorate considers that this is a matter
that should engage the constant attention of its inspectors in the
interests both of production and of the staff." It considers, furthermore, that from the technical point of view safety has become
even more imperative since the introduction of rationalisation
measures, and, in particular, since the formation of large shifts.
The point is that, with the larger productive unit, any accident
causing a temporary stoppage of work somewhere must have
more serious effects on output than under the old system.
While the essence of technical rationalisation is to make the
best possible use of time by improving the equipment and
organising the work, one of its first conditions is an improvement in safety, without which continuity of production cannot
be ensured. It is not surprising in these conditions that the
management has devoted every attention to improving the

198

INDUSTRIAL RELATIONS

technical safety devices. This is not the place to describe them
in detail, but a few examples may be given.1
The police regulations for the mines leave it to the management of a mine to decide whether timbering is necessary, and,
if so, to adapt it to local conditions ; the Mines Administration
has, however, relinquished its discretionary powers in the matter,
and has prescribed that timbering shall be carried out everywhere
and under uniform rules.
Measures have also been taken for increased and more
efficient ventilation of the mines. Here, too, the reduction in the
number of workplaces has allowed of a better distribution of the
ventilation. The quantity of air per worker in the shift consuming the largest amount rose from 132 litres per second in 1920
to 154 in 1929 (first ten months) in the eastern group, and from
127 to 185 in the central group. It fell, however, from 150 to
136 in the western group.
The use of explosives is entrusted to trained shot-firers only,
who are carefully selected and instructed. In long-wall working
shots are fired, whenever possible, in the intervals between the
regular shifts, when the workplaces are empty, thus reducing
both risk and loss of time. The amount of the charge has been
strictly limited. Finally, wherever the use of explosives was
likely to be dangerous, it has been replaced by mechanical cutting.
The consumption of explosives per ton of screened coal extracted
for all the State mines was thus reduced from 66 grammes in 1920
to 51 grammes in 1929 (first ten months).
To solve the problem of dust underground, experiments have
been in progress since 1926, with the result that the general
system of watering hitherto in force under the regulations has
been replaced by a more or less general system of stone-dusting.
This process incidentally whitens the walls, and so has the
additional advantage of much improving the lighting of the
haulage ways. In this field the engineers are also trying to
improve the lighting at and near the face by installing small
turbines for electric light, worked by compressed air. Finally,
the miners' oil lamps have been replaced by electric lamps
wherever compatible with the police regulations in force. The
number of oil lamps fell from 53.416 at the beginning of 1920
' These particulars are taken from the d-jcunient of the Technical Directorate
previously mentioned (Notes sur le développement technique des mines de la Sarre,
November 1028) ; at the writer's request, the Directorate has revised the information
»nd brought it up to 31 October 1929.

THE STATE MINES OF THE SAAR BASIN

199

to 19,200 on 1 October 1929, while that of electric lamps rose
from 170 to 34,965.
Some idea of the effect of these measures on the degree of
safety in the Saar mines during the last few years is given by
the following table, showing for all the mines the number of
fatal accidents since 1908 : (a) per thousand workers, taking
the average staff above and below ground, (b) per million mandays above and below ground. 1
FATAL ACCIDENTS IN THE SAAR MINES, 1 9 0 8 - 1 9 2 9
Number of fatal accidents
Year
Per 1,000 workers

1908
1909
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929»
1

Strike of three months.

1.323
1.257
0.965
1.129
1.835
1.049
1.099
1.674
1.595
2.470
2.157
1.241.
1.070
0.804
0.833
Í 0.634 > Ì
\ 0.846 » J
0.924
0.875
1.120
0.854
0.898
0.929

' Estimate for whole year.

Per 1,000,000 man-days

4.790
4.416
3.398
3.915
4.399
3.397
3.601
5.187
4.967
7.649
6.963
4.520
3.904
3.178
3.268
3.219
3.128
3.036
3.728
3.001
3.665

—
' Six months.

Without making any comparison between these figures and
those for other coalfields, it may be observed that they are
fairly low. It will also be seen that the post-war figures are
generally lower than the pre-war figures.
This favourable situation does not seem to be.due to technical
safety measures alone. The well-established mining traditions
of the population have had more influence on the workers'
1

Itericht ties Statistisclten Amtes des Saargebietes, No. 6, 1928, p. 218.

300

INDUSTRIAL RELATIONS

attitude to accidents than many an educational campaign. Certain
inspectorates even consider that their workers are so well aware
of the ordinary risks in the mines that they have had to throw
away a large number of posters they had acquired, for fear of
making an exaggerated impression on the men.
The good technical training of the foremen and similar grades,
who, under the German legislation, may in certain cases be held
responsible for accidents, is certainly also a factor in the prevention of accidents.
Finally, the system of workers' delegates (Sicherheitsmänner)
previously described tends to make the workers themselves play
a positive part in promoting safety in the mine. These workers'
delegates, who are elected for. five years at a time by the workers
in each subdivision of the minej must in principle visit the workplaces in their subdivision at least twice a month and inspect
them from the point of view of health and safety. Their visits
are made in company with a member of the supervisory staff
of the Administration. It is also the duty of the workers'
delegate to accompany the officials of the inspectorate when they
visit his subdivision. Finally, he has the right to take part in
enquiries into accidents resulting in loss of life.
The workers' delegate records any observations resulting
from his visits in a special book. If he is of opinion that the
life or health of his comrades is exposed to immediate danger
this must at once be notified to the inspectorate by the chief
foreman. Similarly, if the workers' delegate is. informed at any
time of circumstances involving risk to the life or health of the
workers, he must at once notify his chief, preferably in writing.
The delegate is compensated in full for any loss of pay
entailed by the performance of his duties.
WAGES

Detailed rules concerning the methods of fixing, calculating,
and paying wages are laid down in the rules of employment
and the wage agreement, whose provisions and appendices have
frequently been revised and supplemented. These rules display
the tendency, previously described, to provide in advance for
all possible cases in the utmost, detail so as to prevent disputes
as far as possible. It will be sufficient here to indicate the
essential principles of these rules.

THE STATE MINES OF THE SAAR BASIN

201

The first factor on which the worker's remuneration depends
is his experience or age. All workers over 16 years of age
employed underground, whether paid by the piece or the day, are
divided into three categories: helpers (Schlepper), apprentices
(Lehrhauer), and skilled hewers (VoIIhauer). Normally, a young
miner enters the first category at the age of îô and remains in
it for four years : two years as a second-class helper, and two
years as a first-class helper. He then becomes an apprentice for
two years, after which he may be raised to the grade of skilled
hewer by the divisional engineer. Passage from one category to
another is practically automatic. Refusal by the engineer to
make a worker an apprentice at the normal date must be
preceded by consultation of the workers' committee. Refusal to
make him a skilled hewer entitles the workers' committee to ask
for a test, to be carried out under the supervision of a skilled
hewer, after which the engineer consults the committee and takes
his decision.
The remuneration of these various categories is fixed in tenths
of the skilled hewfcr's wage. An apprentice receives nine-tenths
of this wage in his second year and eight-tenths in his first
year ; a first-class helper receives seven-tenths, and a secondclass helper six-tenths.
There is a similar classification, based on age, for surface
workers paid by the day. Those over 22 years of age receive the
full wage for their class ; those of 21 years receive nine-tenths,
those of 20 years eight-tenths, those of 18 and 19 years seventenths, and those of 16 and 17 years six-tenths.
Technical skill, so far as it is independent pi experience and
age, affects the wages only of those underground and surface
workers who are paid by the day. Both groups are divided into
wage classes according to the nature of the work done, but the
difference between the various classes has steadily lessened
during the last few years. The first wage agreement of 19.
August 1922 divided underground workers paid by the day into
four classes and surface workers into five, with a maximum
difference in wages of one-third of the highest rate ; the agreement of 11 November 1929 divides each group into only three
classes, and the difference between the highest and lowest rates
in each group is now only one-tenth.
For underground workers on piece rates the tendency to
equalise wages is even stronger. In point of fact, all the men

202

INDUSTRIAL RELATIONS

in one gang, that is to say, all who work in successive shifts at
the same workplace, receive the same wage per shift worked, so
far as their grade (skilled hewer, apprentice, etc.) entitles them
to the same number of tenths of the basic wage. The nature
of the work they do in the shift does not affect their remuneration. Even the overman in charge of the shift is placed on thè
same footing as his comrades. To determine the individual
wages, the collective earnings of the gang are simply divided
between the members «at the end of the month in proportion
to the number of shifts worked by each and the number of
tenths of the basic wage assigned to his grade.
It will easily be understood that this system, under which
all the members of the group have the same interest in their
collective output, has had no little effect in strengthening the
spirit of solidarity among the men. It has also helped to make
the organisation of the work much more flexible, for the wage
becomes independent of the exact position of the individual
worker in the chain and any readjustments needed can be more
easily effected. In large shifts, where division of labour has
been carried very far \ it would have been very difficult to
1
By way of illustration the following table, showing the detailed composition
of a gang of 146 men, may be given :

DISTRIBUTION OP WORKERS AT THE FACE

•

Shift
Category
Morning

Afternoon

Night

Fourth

1
3

—

3
17
5
1
3
3

2
17
5
1
3
3

—
—
—
—
—
—

Overmen
Hewers
Borers and men preparing for
blasting
Fillers
Timbermen at the face
Coal conveyormen
Coal handlers at level
Waste tippers at level
Waste conveyormen and conveyor supervisors
Gob packers
Timber leaders
Roadmen preparing upper
'haulage road
Roadmen preparing lower
haulage road
Conveyor flitters
Pipemen and strappers
Total ( = 146)

4
9
1

—
4

—
—
—

4
9
1

—
—'
1

—
—
—

—

—
—

4
8
4

—
—
—

Special hour* spent underground : 6.30 a.m. to 12.30 p.m.; 6.30 p.m. to 12.30 a.m.

THE STATE MINES OF THE SAAR BASIN

208

organise the work if, merely on account of differences in wages,
a worker could not have been asked at any time to change his
position in the chain to ensure the continuity of the work.
Thus for the piece worker the principal factor in his wage
is the collective output of the gang. But the relation between
the two amounts is not absolute. His wage consists in fact of
two parts : a variable part directly proportional to the output,
and a fixed part.
The wage agreement provides that the piece rates must be
fixed in the various pits in such a way that, in view of the
particular conditions of the work, the skilled hewers in a gang
with normal output may be able to earn on an average 10 francs
per working day, this average being calculated over the month.
The worker's basic wage is then obtained at the end of the
month by multiplying his average piece-rate earnings by 2 and
adding to the product a fixed sum of 10 francs per working day.
The formula for the basic daily wage is therefore 2p -+- 10, p
representing the worker's average daily piece-rate earnings for
the month.
Thus, of the piece worker's basic wage only about two-thirds
depends on his actual output or that of his shift. The fixed part
of 10 francs introduces an element of equality and stability : for
it means that when his piece-rate earnings are lower or higher
than 10 francs, this reduction or increase in output, as the case
may be, does not have its full effect on his wages. It thus helps
to even out the fluctuations in the worker's piece-rate earnings.
At the same time it tends to reduce the difference between the
remuneration of the least and the most productive workers. It
is to the advantage of the former and to the disadvantage of the
latter, but is a guarantee of stability for all.
The trade unions have always strongly insisted on the maintenance of this system. They argue that piece-rate earnings may
be affected by many circumstances entirely foreign to the worker's effort or skill, such as the nature of the seam, the quality of
the coal, or inequality in the determination of piece rates. This
being so, they wish to prevent the possibility of too great differences in remuneration as between one shift or pit and another,
due perhaps less to differences in deserts than to good or bad
luck. Finally, they regard the fixed part of the wage as a means
of preventing the wages of piece workers from differing too much
from those of day workers.

204

INDUSTRIAL RELATIONS

It was the Administration's attempt to abolish the fixed part
and make the piece workers' wages depend solely on output
that was the principal cause of the dispute of January 1929.
Considering that in the circumstances an increase in output was
thé only possible justification for a rise in wages, the management had hoped by this method to give the sole but full benefit of
any such increase to the workers to whom it was due. When
the unions objected, it tried to introduce thé system without their
consent, in the expectation that the underground workers, the
great majority of whom were earning more than 10 francs on
piece rates, would gladly accept the abolition of the fixed part.
But trade union discipline and the solidarity of the workers
were stronger. The piece workers, at the order of their organisations, slowed down their work, and after a fortnight's dispute the
Administration agreed to return to the system of the fixed part.
The tendency in favour of equalising and stabilising wages had
gained the day ; and it is characteristic that the whole burden of
the struggle was borne by the very men who would have benefited
directly by the system of the Administration.
Another and even more effective provision protects the piece
worker against the effects of reductions in output for which he
is not to blame. According to section 24 of the rules of employment :
When a gang of workers on pieces rates earns wages lower than
the minimum fixed in the wage agreement, this being the result of
unforeseen difficulties and not of ill will on the part of the workers
or of insufficient output through their fault, the divisional engineer
shall grant the gang an indemnity bringing the wage earned up to
the minimum at least. The divisional engineer may not refuse this
indemnity without having given the workers' delegate for the subdivision concerned an opportunity to submit his observations.
The minimum piece-rate earnings to which this section refers
are at present fixed at 9 francs, so that the minimum basic wage
of a piece worker is 2 X 9 + 10 = 28 francs, or only 7 per cent.
below the average basic wage fixed by the agreement, namely,
2 X 10 -f-10 = 30 francs.
Below this the wage cannot be
reduced unless the worker is himself to blame.
There is no space here to discuss in detail the various bonuses
and supplements that may be added to the basic wages of both

THE STATE MINES OF THE SAAR BASIN

205

piece workers and day workers. The appendices to the wage
agreement define their practical application in great detail. In
a general way they are evidence of the desire to establish a
relation between remuneration and output wherever it appears
that the latter depends on the worker's efforts and that the
results of these efforts can be measured.
In conclusion, it may be added that these bonuses and supplements, and, indeed, all parts of the wage, are laid down in
the agreement only in the form of basic figures, which disregard
fluctuations in the cost of living and changes in economic conditions. The adjustment of wages to these circumstances is
effected by means of a coefficient, which is applied to the worker's aggregate wage, the variations in the coefficient being fixed
by mutual agreement whenever occasion arises.
*

•

Given these principles for the determination of wages, we
have next to see how they work o.ut in practice.
We shall take first the variations in the purchasing power
of the average wage of all workers, both underground and
surface. There are three cost-of-living index numbers available
for measuring this purchasing power. One, known as the
Herbig index \ has been compiled regularly since 1920 by the
Mines Administration on the basis of the x normal consumption of
a Saar miner's family of five persons-. The trade unions have
never accepted it, but it has the advantage of being the only
index covering the whole post-war period. The second index,
calculated from February 1925 onwards, which is that preferred
by the unions, is based on a similar budget to that used for
the German Federal index and on the retail prices recorded for
the town of Saarbrücken ; it is compiled by a committee consist- ,
ing of three worker members, one employer member, and one
representative of the mines. The Mines Administration's objection to it is that it is purely urban and does not reflect the situa- .
tion in the districts where the miners live. In this respect it
prefers the index calculated by the Governing Commission, which
refers to the whole Territory. But it considers ils own index as
1
So called because it is based on a study of the household budgets of 92 Saar
minéis" families with five persons in each family, which was published by Herbig
in Glückauf in 1012.

206

INDUSTRIAL RELATIONS

more individual and better adjusted to the special conditions of
life of the miner.
However this may be, the comparison of the three index
numbers in the following table gives a fairly accurate idea of the
fluctuations in the purchasing power of wages since 1920.
INDEX NUMBERS OF THE COST OF LIVING, MONEY WAGES, AND REAL
WAGES FOR ALL WORKERS (UNDERGROUND AND SURFACE

TOGETHER), 1920-1929
Index numbers

Period

Cost of living

Money
wages

Saar

Saarbrücken

Mines

1920 >

—

360

380

1921

—

249

1922

—

1923

—

1924

Real wages, based on the
cost-of-living index for :
Saarbrücken

Mines

—

106

319

—

124

181

266

—

147

—'

305

333

—

109

—'

.—•

403

411

—

102

—-

Saar

1925 :
1st qr.
2nd „
3rd „
4th „

403
441
456

—

415
416
450
468

427
424
453
458

431
431
447
465

107
101
102

104
104
99
99

101
102
99
102

1926 :
1st
2nd
3rd
4th

qr.
„
„
„

491
536
637
662

497
547
642
673

491
527
629
647

485
519
586
640

99
97
92
97

98
95
91
95

99
98
93
99

1927:
1st q r .
2nd „
3rd „
4th „

613
596
584
582

628
605
592
588

600
579
571
560

643
607
602
602

105
102
103
103

102
100.
102
102

107
105
105
108

1928 :
1st qr.
2nd „
3rd „
4 t h ,,

586
595
604
613

592
606
621
626

562
575
585
587

602
602
602
606

103
101
100
99

102
99
97
97

107
105
10»
103

620
622
618

634
643
635

598
599
591

621
643
655

100
103
106

95
100
103

104
107
110

1929 :
1st q r .

2nd „
3rd „

' Last three quarters.

THE STATE MINÉS OF THE SAAR BASIN

207
C

A study of this table shows three distinct periods in the movement of real wages during the last ten years. During the first
period thé payment of the miners' wages in French francs, at a
time when the mark was still current in the Saar and was rapidly
depreciating, tended to increase the purchasing power of their
wages considerably. At that time the miner was in a privileged
position. The ordinary lag between the depreciation of the
currency and the rise in retail prices meant for him a fall in the
cost of living, since he was paid in a more stable currency. This
fall was substantial from 1920 to 1922, and the miner's real wages
rose nearly 50 per cent, above the pre-war level.
The situation was reversed from 1923 onwards, when the
French franc was introduced as the unit of currency in the
whole of the Saar Territory and the cost of living rose rapidly.
At the satne time the exceptional advantages enjoyed by the
miner disappeared. The purchasing power of wages, however,
remained above the pre-war level until the middle of 1925. By
then the progressive fall in the French franc and the fact that
wages did not rise as fast as prices had a n increasing effect on real
wages, which fell during the third quarter of the year to 7 or
9 per cent, below the pre-war level. With the fourth quarter,
however, purchasing power rose again, and in 1927 a period
of stability began during which — according to two of the
indexes at least — real wages remained at or above the pre-war
level.
With this stabilisation the cost of living lost much of its
importance in the discussions on the coefficient.
The three
successive rises granted by the Mines Administration in 1929,
which raised the index number of money wages from 606 ' at
the end of 1928 to 655 in the third quarter of 1929, were justified,
in its opinion, not by a rise in the cost of living, but by an
increase in output and an improvement on the coal market.
In this respect it is interesting to compare the fluctuations
in real wages, average output (all workers, underground and
surface), and the selling price of coal from 1927 to 1929.

1
The coefficient, which had been fixed at 1.25 immediately after the dispute
of January 1929, was raised to 1.32 in April after consultation with the Administrative Board in Paris, to 1.37 on 11 November, and to 1.38 on 1 December.

208

INDUSTRIAL RELATIONS

INDEX NUMBERS OF REAL WAGES, AVERAGE DAILY OUTPUT
(UNDERGROUND

AND

SURFACE

WORKERS),

AND

PRICE

COAL,

1927-1929
Period

Index number
of real wages *

Price of coal *

Average daily
output *

Frs.

Kg.

1927 :
1st quarter
3rd

105
103

123
109

837
837

1928 :
1st quarter
3rd

104
100

109
106

906
920

1929 :
1st quarter
3rd

100
106

110
116

934 «
991

1
1

Average of the three indexes given in the preceding table.
Price per ton at the pithead during the second half of the first month of each quarter.
* Average gross output during the first month of each quarter.
' Figure for February, as the January figure was affected by a ca' canny strike.

This table shows that output, which continued to rise during
the three years, did not begin to affect wages until there was a
rise in the selling price of coal. But, partly owing to the increase
in output, real wages, on the other hand, even when prices fell
to their lowest in 1928, remained very close to the pre-war level.
The conclusion seems to be that at present the wage policy
followed in the Saar mines tends to accept the pre-war level as
a minimum above which real wages rise so far as is justified by
harder work and the general conditions of the market.
Any comparison of the miner's present wage with the prewar wage must make allowance for the fact that the underground worker now earns it in 7% hours a day instead of &V>
hours, and the surface worker in 8 hours instead of 12. Allowance must also be made for the additional advantages enjoyed
by the miner to-day, which impose much heavier social charges
on the undertaking than those borne before the war. They
include the cost of holidays with pay and family allowances,
losses on the coal sold to the workers at reduced rates, and the
employer's contributions to social welfare institutions (pensions,
sickness benefit, accident compensation, etc.).
The collective agreement provides that all workers of 18 years
of age and over are entitled to a holiday of 3 days after one
year's service, 4 days after two years, and 6 days after three

THE STATE MINES OF THE SAAR BASIN

209

years or more. During this holiday the worker, whether paid
by time or by piece rates, is entitled to the wage (including
family allowances, bonuses, and supplements) that he would
have earned if he had continued to work at the same place. The
Mines Administration calculates that its expenditure under this
head averages 0.82 franc per man per day, or 2 per cent, of the
average normal wage proper (40.66 francs in October 1929).
Family allowances are an even heavier charge. The wage
agreement assigns to all workers an allowance of 1.50 francs per
shift in respect of each legitimate or adopted child not over
school age, and a further 1.50 francs per shift in respect of the
wife. Days of sickness and accident and regular holidays are
included in the calculation of the shifts for which these allowances are due, subject to a maximum of 45 francs a month for
the wife and 45 francs for each child. The expenditure incurred
by the Administration under thLs head is 2.86 francs per worker
pier day, or about 7 per cent, of the average wage proper.
Even before the war the miners could buy coal on special
terms, representing a loss to the undertaking. This privilege,
which is defined in the wage agreement, has been much extended
since the war, so that the loss per worker per day, reckoned in
gold, is now four times what it was in 1913. It amounts to
1.51 francs, or nearly 4 per cent, of the average wage proper.
The most important social charge on the Mines Administration is that of its contributions to social welfare institutions.
Unlike the other charges just considered, it is not the result of
collective agreements with the workers' organisations, but is
based principally on social insurance legislation, that is to say,
the pre-war German legislation, completed and adapted by
several Orders of the Governing Commission.
This is not the place to examine these texts and the obligations they impose on the employer. It need merely be mentioned that, apart from these statutory obligations, the employers'
representatives on the Miners' Insurance Fund have agreed on
several occasions to increase the contributions with a view to
extending the work of the institutions or meeting the promises
made to the staff. In this way, for instance, the system of
sickness benefit for families (Familienkrankenfürsorge)
was
introduced, under which half the cost of medical treatment and
drugs for the miner's wife or widow is met by the sickness fund.
Similarly, to meet the cost of the pensions granted on a liberal
ri

210

INDUSTRIAL RELATIONS

scale at the time of the reductions in staff in 1927 and 1928, the
old-age insurance contribution had to be raised from 38.85
francs in November 1926 to 43.05 francs in March 1928,
48 francs in March 1929, and 57 francs in December 1929.
Taken all together, the Administration estimates that its
contributions to social insurance institutions average 4.68 francs
per worker per day, or 11.5 per cent, of the average wage proper.
Reckoned in gold currency,, they are 60 per cent, higher than
in 1913.
Summarising the above data, the Administration has made
the following estimate of its social charges per worker per day
compared with the pre-war figures and with the normal wage
proper for all workers, both underground and surface.
AVERAGE SOCIAL CHARGES AND WAGES PER MAN AND PER

DAY,

1913 AND 1929
December 1929

Item

1913

Francs

Marks

Family allowances

2.86

0.47

Holidays with pay

0.82

0.13

Loss on coal

1.51

0.25

0.06

Social welfare

4.68

0.77

0.48

Total

9.87

1.62

0.54

Wage proper

40.66

6.69

4.80

50.53

8.31

5.34

Total

Marks

It will be seen that the coefficient of increase for the wage
proper from 1913 to the end of 1929 was 1.39, while for the
social charges it was 3.
A final aspect of the wage policy in the Saar Mines, of
incontestable social interest, is the tendency to reduce the difference between the lowest and the highest earnings. In the
account given above of the principles of wage determination, the
fact was emphasised that the trade unions have always pressed
for a narrowing of the range of the wage scale, and have tried
to reduce any differences resulting from differences in technical
specialisation and output. The results of this tendency are

211

THE STATE MINES OF THE SAAR BASIN

clearly shown in the following table, taken from a document
of the Mines Administration dated 5 January 1929, which
compares the range of the wage scales in the Saar and in the
Ruhr. In both cases the minimum wage of a hewer has been
taken as the basis of comparison, and the basic wages of the
other categories have been "calculated as percentages of these
figures.
RELATIVE WAGES OF VARIOUS CATEGORIES OF WORKERS
IN THE RUHR AND SAAR MINES
Category

Ruhr

Saar

Hewers :
Minimum wage
Normal wage

100
115

100
107.1

Underground workers :
Skilled workers
Class I
Class II
Class III

100
100
91
80.2

106.4
102.5
94.6
89.3

98.2
98.2
89.2
79.0

101.1
97.1
90.4
86.8

Surface workers :
Skilled workers
Class I
Class II
Class III

This table shows that in the Saar the wages of the lowest
category are barely 19 per cent, below those of the highest,
whereas the corresponding difference in the Ruhr is 31 per cent.
Since the remuneration of piece workers depends on output,
it is for them in particular that there is a danger of differences
in pay according to the shift or section of the Basin in which
they work. The special precautions taken by the trade unions
to diminish these variations were described above. The following table shows the actual distribution of the 19,799 hewers
(Hauer) employed in the Basin in October 1929 according to the
wages earned. The figures refer to the average actual earnings
per shift during the month, excluding special bonuses and allowances. It may be added that the minimum wage at that period
was 36.96 francs, and the normal wage 39.60 francs. 1
1

Minimum wage = [ ( 2 x 9 ) + 10] x 1.32 = 36.96 francs.
Normal wage = [(2x 10) + 10] x 1.32 = 39.60 francs.

212

INDUSTRIAL RELATIONS

DISTRIBUTION

HEWERS

WAGE

GROUPS

OCTOBER

1929

Worker«
Wage group
Ni-mber
Frs.
Under 30.90 •
36.96—38.00
38.00—39.60 •
39.6(1—41.00
41.00—43.00
43.00—45.00
45.00—47.00
47.00—49.00
49.00—51.00
5 1 . 0 0 and over
Total

Per 1,000

22
959
1,259
3,227
4,093
4.049
2,932
1,762
831
665

1
48
64
163
207
204
148
89
42
34

19,799

1.000

1
-M nirt.uui w a g . '
" tS. rm 1 wagf:.

The first conclusion to be drawn from this table is that out
of 1,000 hewers only 1 earned less than the minimum wage owing
to insufficient output for which he was himself responsible,
while 112 earned a wage between the minimum rate and the
normal rate. The very great majority earned a wage above the
latter figure ; some even earned as much as 25 per cent. more.
The wages of the majority (72 per cent, of the total number),
however, were between 39.60 francs and 47 francs, the maximum
for this group being less than 19 per cent, greater than the
minimum.
CONCLUSION

Having terminated our survey, we find on glancing backwards
that the most striking feature of the organisation of industrial
relations in the Saar Mines is its extreme simplicity. Given in
a nutshell, it lies in the constant aim and endeavour of the
Mines Administration to work in contact with the trade unions
as far as this is possible — contact in collective négociations for
fixing the conditions of work in the mines ; contact in conciliation committees for the settlement of disputes arising during
employment between the management and members of the staff ;
and contact lor the adjustment of the details and the carrying
into effect of all measures affecting the workers' conditions.

THE STATE MINES OP THE SAAB BASIN

213

This contact between the Administration and the workers'
organisations was from the outset felt to be necessary. As was
said by one of the officials of the Directorate, "if there had
been no trade unions in 1920, they would have had to be
invented." And in fact it is hard to see how the staff of French
engineers who came to work the mines could have established
their authority in a day over so large a body of workers of
another nationality and language, inclined by circumstances to
be distrustful, unless they had been able to count on an intermediary to establish this moral contact.
The trade unions were thus called on not only to act as the
spokesmen of the staff, but also to afford the Administration
valuable assistance in its work of economic reconstruction. In
trying to win their confidence, the management could at the
same time make sure of the confidence of the workers themselves;
in face of the attitude of their leaders, it would not be long
before the men's fears disappeared.
Clarity, loyalty, candour : these, in the eyes of the Administration, should be the three moral factors of this confidence.
Clarity was sought by the careful drafting, in close contact with
the unions, of detailed regulations concerning conditions of
work and the scrupulous revision of these regulations whenever
practice threw doubt on their interpretation. Loyalty was
demonstrated by the conscientious fulfilment of all engagements.
Candour was always a principal aim of the Labour Department
in its continual exchanges of opinion with the unions on all
matters relating to the work and in the amicable discussions in
the conciliation committees.
The trade unions, welcoming the increased prestige that
their recognition by the management gave them in the eyes of
their members, but aware that their authority to treat with the
employer must depend on the measure of their authority over
their members, undertook in return to see that those in whose
name they had assumed obligations did in fact carry them out.
Thus, to a certain extent, the Mines Administration and the
workers' organisations came to depend on each other for the
realisation of their respective economic and social programmes.
Their relations rapidly grew so extensive that they eclipsed all
other institutions aiming at the same ends. The workers' committees elected under the former German legislation play only
a very secondary part compared with them.

214

INDUSTRIAL RELATIONS

On the other hand, the Mines Administration has taken very
little direct initiative in what may be called " social work ".
Circumstances hardly seem favourable to such action. In the
early days the management had opened provision stores for the
staff ; but quite apart from the very considerable financial losses
incurred here when the exchange was fluctuating, it was found
that as normal economic conditions were restored these shops
were less needed, and the management decided that their work
could be left to the workers' co-operative societies. Similarly,
immediately after the war the housing shortage had forced the
management to deal with this problem. When the French
Administration took over the working of the mines, they already
owned 2,938 dwellings. Up to 1925, 1,537 dwellings were
constructed and 618 were bought, hringing the total to 5,093.
The Administration then changed its policy, and instead
advanced 7,000,000 francs to the Miners' Insurance Fund to
enable it to grant loans to workers who wished to own a dwelling. Since then these 7,000,000 francs have been repaid, and
no new loans have been granted by the Administration. By
1 January 1928 the Miners' Insurance Fund had itself advanced
30,000,000 francs for the construction of dwellings, thus rendering any further intervention by the Administration superfluous.
In addition to the houses they have built, the mines own several
hostels where workers who live too far from the mine to go home
every day sleep during the week. But far from encouraging this
system, which it considers unsatisfactory from the social point
of view, the Administration tries to limit its application, and this
consideration was not foreign to its programme for rationalising
recruiting. Owing to the individual transfers effected, the
number of workers in the hostels had already fallen from 4,865
on 1 May 1926 to 2,991 at the end of October 1929.
With regard to the utilisation of the workers' spare time, the
Administration considers that any intervention here on its part
would be even less useful than the provision of shops and dwellings. In this old industrial district, where education has long
been widespread1, the population has organised its social and
family life according to its own tastes and traditions ; and in the
rather special circumstances prevailing in the Saar an attempt
by the French Administration to intervene in this delicate sphere
1
Out of 69,515 workers in the mines, there were only 7 illiterates in 1925, or
O.01 per cent. (Statistique du personnel ouvrier, etc., p. 1.)

THE STATE MINES OF THE SAAR BASIN

215

of private life might quite possibly come into conflict with the
individual and national susceptibilities of the workers.
In other words, the management of the mines has sought to
obtain the good will of the workers, not by bestowing favours
and privileges, but by a system of consideration and confidence.
Its aim has been less to exert a direct influence on the worker's
mind than to adapt its methods to his demands and wishes.
Knowing that he was devoted to his trade union, it chose the
latter as the foundation for its system of industrial relations.
At the same time it recommended all its engineers to try, in their
daily working relations with their men, not so much to obtain
formal discipline as to understand them, to make themselves
understood by them, and so to create a psychological atmosphere
favourable to collaboration. As a high official in the Directorate
said to the writer, " the worker's mentality should be studied
by the engineer in the same way as the structure of a seam, and
when he thinks he has ascertained and understood it, he should
adapt himself to it in the same way." This, it seems,, is the true
philosophy of the system that has made it possible to carry to
completion in the Saar Basin an important programme of technical progress and economic reconstruction, in psychological
conditions of more than common difficulty.

THE BATA BOOT AND SHOE
FACTORY
Some ten years ago the town of Zlin, Bata's birthplace, which
as a result of his achievements has become the seat of the
largest boot and shoe factory in Europe, was an isolated village in
one of the valleys linking the high plains of Moravia with the Carpathians. Its population was 3,500 in 1910 and 4,500 in 1920 ;
it now approaches 20,000. There was nothing in its geographical
surroundings to indicate that such would be the future history
of this modest village. Its valley is not a highway, and the small
river on whose banks it stands is not navigable. It lies half-way
along the branch railway which starts from Otrokovice on the
main line and ends at Vizovice at the foot of the Javornik
mountains. Twenty-five miles of road separate Zlin from Pferov
on the great trade route from Vienna to Prague and from Prague
to Moravská Ostrava.
The environs of Zlin are entirely agricultural. Uherské
Hradistë, the centre of the district, is a small administrative town
of no economic importance. Westwards stretches a fertile country
producing large quantities of fruit, beetroot, and cereals, and
inhabited by a hard-working and well-to-do population who not
so very long ago were under the domination of the great Austrian
land-owning families. Eastwards lies the frontier of Slovakia,
a region of wooded mountains where an over-numerous but
backward population leads a hard and. impecunious life. In the
country round Zlin there are few or no factories. There are no
industrial traditions other than those of the village handicraft
workers.
This geographical and human environment has been a factor
of capital importance m the development of the- Zlin factory;
for not only has Bata drawn all his labour from it, but he himself
has always lived and worked in it. It is to this environment that
he has adapted his views; and his industrial genius, unfettered
by pre-conceived ideas, has endeavoured to turn it to the best

218

INDUSTRIAL RELATIONS

advantage. He succeeded not at once but by gradually feeling
his way. Hence, to be understood, the industrial system to which
he has given his name requires to be studied from its earliest
beginnings in relation to the man who created it and the social
environment in which it has developed.
T H E DEVELOPMENT OF THE UNDERTAKING

Bata is a shoemaker's son, born at Zlin in 1876. His childhood's days were spent in working in the family workshop, or
in attending the market on market days to find customers for
his father and to sell his wares. Fired by precocious ambition
he left home while still very young. He tried his luck in Vienna
with a relation, failed, and fell back upon Prague. He was now
sixteen years old. In Prague he used to hawk his stock and
bring back orders for his father. In 1894, at the age of eighteen,
he set up on his own account at Zlin, with an initial capital of
800 florins. Soon afterwards he was giving out work to some
50 journeymen employed in his workshop or at home. Ten years
later, in 1904, his business having expanded, Bata entered upon
the next stage of his career. He built a factory of modest size
and in this first building of his own installed his machines and
his workers. But wishing at the same time to learn more about
his trade he went abroad, stayed in America, where he found
employment as an ordinary workman, and returned by way of
Germany. Feeling himself better equipped, he decided to
specialise and achieved success in the manufacture of cloth boots,
which his Austro-Hungarian nationality enabled him to market
throughout the Danube basin and even in the Orient. Thus
when the war broke out he had imperceptibly entered upon a
new phase. He employed 2,000 workmen, a large number for
those days, and had acquired a considerable reputation and a
large body of customers extending over the whole of Eastern
Europe and into Asia. He was already on the threshold of the
large-scale factory.
His progress was entirely in the technical sphere. American
improvements in machinery had made the industry more mechanical, and so divided up. operations, begun to permit the employment of less highly skilled workers, and introduced new methods
enabling the leather and other raw materials to be used to the
best advantage.

THE BATA BOOT AND SHOE FACTORY

219

At first the war almost ruined Bata by closing his markets.
In order to continue working he asked for orders from the
military authorities and promptly reorganised his factory so as
to adapt it to the needs of the army. He gave up the manufacture of cloth boots, which he had made a speciality, and devoted
himself to making leather boots. Thanks to this his Czech workmen, who looked upon the Austrian mobilisation as a catastrophe, were spared military service. At the same time he
mastered, the methods of high-speed mass production. He procured improved machinery and more capital, doubled his staff,
and in 1917 succeeded in producing 10,000 pairs of boots a day
with 4,000 workers.
But the war did not help to solve the fundamental problem
that was soon to occupy Bata's attention. It had nowhere been
a good school of productive efficiency. The ensuing years were
of very great use to Bata, for in order to create new markets
he was obliged to keep a careful watch over his manufacturing
costs. The crucial event for him was the revalorisation, followed
by the stabilisation, of the Czechoslovak koruna in 1922. Bata,
who did not want to relinquish the mass-production methods
he had adopted during the war, had been struggling for three
years to extend his markets within the shrunken confines of his
country and to recapture his foreign customers, when in 1922
the koruna suddenly doubled in value, and the then Minister of
Finance, RaSin, decided to stabilise the currency at all costs.
Rasin was aware that if it was to succeed the stabilisation of the
currency must be accompanied by a heavy fall in home prices.
He appealed to the manufacturers and tried to convince them
that their losses would be only apparent, and that the increase
in business that would follow the fall would amply compensate
them for their sacrifices.
Bata was the first to accept. In the midst of the crisis he
suddenly announced to the public a reduction of 50 per cent.
in his selling prices, and to the workers both a reduction
of 40 per cent, in their wages, to take effect in three weeks' time,
and an immediate fall of 50 per cent, in the price of the necessaries of life with which they were supplied by his shops. The
result was prodigious in all parts of the country. His competitors were expecting his downfall, but when they saw that
people were tumbling over one another to buy his goods they
had to bring themselves to follow suit. His example decided other
manufacturers to lower their prices, and the movement became

220

INDUSTRIAL RELATIONS

general. Bata's bold step did not endanger his business. It
merely.led him to pause for breath, as it were, and then, in 1923,
to reorganise his factory completely. The 1,800' workers then
in his service constituted the smallest staff he has had since 1914.
For Bata himself it was a year of hard thinking, and he realised
the necessity of radically* transforming his undertaking. It was
at this time that he introduced his system of autonomous Workshops and independently managed selling agencies, which constitute the most original part of his achievement. To these we
shall refer later on.
It was in 1924 that he began to make real headway, and every
year since has marked a fresh advance. In 1923 he employed
1,800 workers and could turn out 8,000 pairs of boots and shoes
a day. In 1924 these figures rose to 3,000 workers and 14,000
pairs; in 1925 to 4,500 workers and 25,000 pairs; in 1926 to
6,000 workers and 35,000 pairs; and in 1927 to 8,000,workers
and 55,000 pairs. He finished the next year with 12,000 workers
and a daily productive capacity of 75,000 pairs.
In five years the average output per worker had thus risen
from less than 4.5 to more than 6 pairs a day. During the same
period the average price of footwear was falling. From 220
koruny in 1922, the year of stabilisation, it fell to 119 in 1923,
99 in 1924, 79 in 1925, 69 in 1926 and 53 in 1927. In 1928 it
rose to 55 koruny, but this increase represented only a small
fraction of the increase in the price of raw materials that
occurred in that year, although raw materials make up 80 per
cent, of the cost price of Bata's articles. But for further economies
in manufacture the increase would certainly have been greater.

THE

ORGANISATION OF THE

WORK

A precipitate increase in output and a steady but rapid fall
in prices—such then are the twin consequences of Bata's industrial activities during the last five years. This is not the place
for a detailed account of the rationalisation measures that made
this success a certainty. Vertical concentration, elimination of
middlemen, specialisation, standardisation, improvement of
machinery, economy of, time and raw material—these are tendencies common to all rationalised undertakings, and can be seen
iii Bata's as elsewhere. If Bata differs from others in this respect,

T H E BATA BOOT A N D SHOE FACTORY

221

it is by the total absence of preconceived ideas and of academic
principles. No study at a university, no apprenticeship in different industries, prepared him for his achievement of systematic
rationalisation. Every one of his methods was born of daily
experience and daily observation of the problems that arose in
his business. Bata's rationalisation is essentially empirical.
A short sketch of the organisation of his business will suffice to
show to what extent this concern for maximum output inspires
his whole undertaking and creates the "atmosphere" of the
factory.
Bata's undertaking consists of two distinct parts. The first
comprises a number of buildings surrounded by a circular wall.
This is the factory proper. It fills the hollow of the valley on
the eastern edge of the town, and Bata has ensured the possibility
of extending his premises further up the valley. The second
part lies on the northern slope, where Bata has built a whole
town, comprising shops, a restaurant, a cinema, workers' houses,
schools, a boarding-house for work-girls, and a building used as
a hostel for apprentices. On the other side of the town, down
stream, Bata has acquired part of the valley, and has built a new
quarter, consisting of 300 workers' houses, and a hospital.
The factory proper, within the enclosure, consists of 32 buildings whose style of construction is alone sufficient to reveal the
tendency to standardisation. They are nearly all on the same
pattern—80 metres by 12, three well-lighted storeys, and a flat
roof. This uniform arrangement has enabled Bata to erect his
plant at a low cost, still further reduced by the fact that his
masons—for Bata is his own builder and even owns a brickworks—use simplified and rapid methods of working, and
standardised materials produced in large quantities. The installation: of machinery, tools, electrical equipment and power has
all been facilitated by this precaution. But one of Bata's main
purposes in making his workshops identical was to be able to
compare their output, and to increase it by rivalry. Their uniform lay-out makes it easier for him to draw up his plan of
production and to divide up the total among the different workshops.
The 32 buildings house all the administrative departments
and workshops belonging to the undertaking, which are thus
brought under the direct control of the master. Here are to be
seen not only the boot and shoe workshops, but also a paper
pulp and cardboard factory, a printing works, a chemical factory,

222

INDUSTRIAL RELATIONS

an engineering and machine-repairing shop, a factory for working
up rubber, tanneries and tannin factories. Bata, in fact, in conformity with the principle of vertical concentration, generally
buys raw hides, which he tans and dyes in his own establishments. He works up his rubber himself and makes cardboard
for his boxes out of textile and leather waste. His chemical
factory supplies him with glue, and his presses print the posters
that extol his goods throughout the world. For articles which
he does not produce himself, such as textiles, his system is different. By giving large orders for a fairly long period, sometimes
for a whole year, he obtains favourable prices and makes sure
of getting the qualities he needs. This enables the manufacturers
who supply him to regularise the work in their own workshops,
to place their orders for raw materials in good time, and so to
share in the advantages qf his rationalisation schemes.
The only department of Bata's that is not enclosed in the
precincts of the Zlin factory is his sales department. Here the
principle of concentration has led Bata to open 450 shops and
branches in Czechoslovakia for marketing his goods. The
managers are appointed by him, and are closely controlled by
the central organisation at Zlin. Bata also has a large number
of agents and representatives abroad.
The programme of work is drawn up in Bata's establishments with the most meticulous care, for upon it depends the
entire working of the business for six months. It is the fruit
of the collaboration of all the departments concerned. The point
of departure is the preparation twice a year of the models for
the season. Bata obliges all his representatives abroad and all
his branch managers, by contract, to furnish him with detailed
information on the needs and possibilities of their local market,
and with samples of all competing footwear that has met with
any success. Thus armed, Bata has preliminary designs of
models prepared by his designers. These designs are shown to
all his agents, who are also obliged- by contract to visit Zlin at
least twice a year. In the course of a general meeting of the
representatives, salesmen, and principal heads of departments,
each model is made the subject of a detailed discussion : it is
accepted, touched up, or rejected, due regard being of course
paid to the possibility of manufacturing it at a remunerative
price.
When it has been decided which models ane most likely to
be sold, a sort of stock exchange is set up between Bata's agents

THE BATA BOOT AND SHOE FACTORY

223

and representatives. Everyone tries to secure in advance the
largest possible quantities of the models that he flatters himself
on being able to dispose of. But Bata intervenes in his turn
to ensure a regular outlet for his goods : he cuts down the share
of some and increases, if necessary, that of others, insisting, for
example, on an order for a thousand pairs of children's shoes
in return for allowing an extra thousand pairs of rubber shoes.
Finally, a balance is arrived at between manufacturing requirements and selling possibilities.
On the basis of this compromise the plan of production is
drawn up. For Bata it must be such that he can employ his,
entire plant continuously and that the goods manufactured are
sold in advance.
The fulfilment of the first condition is for him to secure
from his staff; the second he imposes beforehand on his salesmen. He does not begin to make a single pair of shoes before
he is sure of selling them. He makes provision for only one
contingency during manufacture—that of increasing his output.
For fixing his cost and selling prices, Bata relies on the figures
furnished by the heads of his buying and manufacturing departments. Once established, these prices remain unchanged throughout the season : the buying department must arrange to furnish
the necessary raw materials at the prices and in the quantities
specified by Bata, and the manufacturing department bears all
the risks of an error in the calculation of its cost price.
The list of models selected is handed over to three special
workshops, in which Bata has concentrated his most capable
workers. The sole and upper patterns are prepared for each
size, the design and shade are chosen; all the details, in fact,
necessary for mass production are settled in advance.
Except for certain models in general demand, which can be
manufactured all the year round, the plan of production is drawn
up for six months. Since with Bata the week is at once the unit
of work and the unit of accounting, the manufacturing orders
are distributed among the workshops in weekly assignments
and as regularly as possible. The new models must be ready
for the beginning of the season, so that production is naturally
more intense during the preceding weeks. Although Bata
despatches his shoes to both hemispheres, varies his lines, and
reserves the manufacture of standard articles for slack weeks,
he finds some difficulty in keeping the flow of production steady
throughout the year and is sometimes obliged to work for stock.

224

INDUSTRIAL RELATIONS

But in any case he is guided by two principles in drawing up
his plans—never to fall below a minimum figure assuring him
a profit, and never to accumulate stocks. The object of this
policy is to secure the factory a stable output; and if he asks
his salesmen to guarantee this, they for their part can always
•be sure that goods ordered will be delivered within the specltied
time.
When the plan has been drawn up and the output distributed
over the twenty-six weeks of the season, due regard being paid
to public holidays and statutory annual leave, nothing remains
but to allot orders to the workshops. The last stage is the drawing up of a table indicating the number of pairs of each model
to be delivered by each workshop in each week covered by the
plan.' The table is posted up in the sales department, which
thus-knows the exact situation, and can accept or refuse further
orders as the productive capacity of the workshops may allow,
and fix dates of delivery in advance.
It is the duty of a special department called the Central
Department to see that nothing occurs to paralyse the execution
of the plan of production. Delays affect the interlocking and
almost automatic processes of mass production in too many
ways for it to be possible to tolerate them. The Central Department carries out its duties by the use of a system of cards and
order slips. It sees that raw materials are supplied to the workshops as they are needed, manufacture begun on the appointed
day, and the finished article delivered within the specified time.
In the event of delay in delivery it is this department that apportions the responsibility.
Since the Central Department automatically ensures that every
order is carried out within the time specified in the plan of production, the only other control to be organised is for quality.
At Zlin, this is of particular importance. Manufacturing processes that push time saving to the extreme may easily give rise
to mistakes or abuses. Bata has therefore arranged for a trjple
control of the quality of his footwear.
The first and most efficacious control is that effected in the
course of manufacture. The manager of each workshop, whatever rung he may occupy on the ladder of production, is responsible for the quality of the goods that he passes on to those on
the next rung. Everyone therefore satisfies himself that the
goods he takes over will not be a source of trouble for him.
If he accepts them it is at his own risk. Every defect that leads

THE BATA BOOT AND SHOE FACTORY

225

to a "throw-out" is imputed without discussion to the last workshop through which the finished shoe has passed.
Over and above this automatic and spontaneous control,
resulting from the system of workshop autonomy to be described
later on, Bata has devised another, consisting of an independent
inspector in each assembling and finishing workshop, appointed
by himself, whose sole duty is to compare every finished shoe
with the models on view in the workshops, and to reject all that
appear to him to exhibit the slightest defect. A shoe does not
become a total loss by being rejected, but is given a special mark
and sold 10 to 20 per cent, cheaper, the difference being debited
to the workshop delivering it.
Since the task of the workshop inspector may become
extremely arduous in a shop working at full pressure, Bata has
arranged for a final control, which is carried out under his eyes
before the despatch of goods to customers. In the room in
which he is usually to be found, all the standard packages with
their twenty pairs of boots or shoes arrive automatically. One
of the inspectors opens a box at random and meticulously verifies
its contents. He scrutinises one pair in a hundred, but without
haste, and the rejection of one defective pair means the opening
of all the boxes and the examination of the whole consignment.
Delivery may be stopped and the workshop concerned immediately penalised for its defective work.
In addition to the control of the actual making, from the
twofold point of view of punctuality and quality, there is that
of the cost price. With Bata this is of the very first importance,
for the selling price being fixed as law as possible and for six
months, it is essential for him to be informed at once of any
variations in his aggregate cost price.
The accounting system of the undertaking is on a weekly
basis, not only in each department and workshop at Zlin, but
also in each selling agency. For the purpose of determining the
aggregate cost price, the Central Department has only to combine
all the separate accounts and to make allowance for factors such
as taxes, overhead costs, and the always considerable risk of
throw-outs. The cost price thus determined, both as a final
aggregate and for every stage in production, enables Bata, first,
to fix his selling prices, by allotting to each workshop or department its proper share of expenses and profits; secondly, to
detect any cause of inefficiency by merely noting an increase
on the normal cost price; and lastly, in the absence of any

226

INDUSTRIAL RELATIONS

increase, to continue the search for all possible economies in
manufacture. For when the plan of production has been drawn
up and distributed, Bata is not satisfied with seeing that no
hitch occurs to disturb its execution; he labours incessantly both
to reduce costs in the various stages of manufacture and to
expand output and sales. Economies in production costs are a
definite source of profits. As to additional orders, they broaden
his margin of profit, because not only has he charged up all
the overhead expenses for the season to the quantities included
in his original plan of production, but he can also, thanks to
his system of workshop autonomy, obtain a higher yield from
his workers without increasing his production costs in proportion.
The main item in Bata's production costs is raw material.
At Zlin, owing to the mass-production methods adopted, it
accounts for 80 per cent, of the aggregate cost price, the remaining 20 per cent, representing overhead and wages \ This shows
how important it is for Bata that his buying department should
be thoroughly efficient.
Here again Bata's rule is to avoid middlemen. He buys his
hides in South America, his coal in Upper Silesia, hardly 200
kilometres away, and his textiles in the largest mills. A great
part of his wood comes from his own forests in the nearby
Carpathians. All his purchases are made from samples, and in
the last instance Bata himself fixes the price of the commodity
when a sample is found which meets his requirements. Nothing
then remains for the buying department but to try to obtain
still better terms. Its endeavours in his direction are rewarded
by a share in any saving it may effect.
This department is under another obligation : that of not
buying until work is about to begin on the material concerned;
for Bata includes in his production costs the interest for every
day passed by a hide in his warehouses. In order that the stock
of raw materials may be as low as possible without there being
any risk of a stoppage of work owing to a sudden shortage, the
buying department must be kept informed by the Central Department of the progress of manufacture and of new orders received,
and by the warehouses of the quantities of materials in stock.
In addition to requiring his buying department to furnish
him with raw materials as cheaply as possible, and not before
1
Apparently this proportion has not been reached by any of his competitors,
the best ratios for other factories not exceeding 70 and 80 per cent.

THE BATA BOOT AND SHOE FACTOKY

22?

they are wanted, Bata encourages his workshops, by bonus
systems, to see that the material is used to the best advantage.
It is especially in the sole and upper cutting workshops that
he has aimed at the most extreme economy of materials. He has
many times distributed large gratuities to his staff on account
of economies brought to his notice.
If Bata has succeeded in reducing thè share of overhead and
wages in aggregate production costs to 20 per cent., this is largely
due to the improvements he is constantly making in the plant
and the time he has succeeded in saving in the course of manufacture.
The introduction of mechanical processes in shoe-making is
of recent date. Thirty years ago the employment of any but
hand labour in the industry was almost unknown in Europe.
The few manufacturers who used machinery did so only for a
small number of operations. Even when the use of machinery
spread, enabling boots and shoes to be manufactured on a really
industrial scale, in many factories most of the operations continued to be carried out by hand; in fact, notwithstanding the
invention of new machines and the improvement of old ones,
hand work is still far from being eliminated in boot and shoe
factories. No machine yet invented can carry out an operation
automatically as is the case in the textile and engineering industries; consequently there is a vast field open to rationalisation.
A small alteration in an existing machine, or the introduction
of a new one, by reducing labour charges may sometimes, substantially lower production costs. In this domain Bata has spared
no effort, and it is largely to the technical progress that he has
been able to achieve that the lowering of-his production costs
must be ascribed. A shoemaker by.trade, he is a mechanic and
an inventor by nature. His favourite occupation is the construction of new machinery and the invention of new methods
of work.
This policy of technical organisation Bata has pursued
throughout his factory, but it is in the assembling workshops
that it has been carried the farthest \ The reason is simple. The factory's 36 assembling workshops employ on an average
'From the other workshops, where the half-finished parts are prepared, the
assembling workshops receive the various parts of the shoe which it is their business
to assemble. For Bata the problem has been to organise the work in the preparing workshops so that the number of operations remaining to be performed
in the assembling workshops is reduced to the minimum.

228

INDUSTRIAL RELATIONS

5,400 workers, or about half the staff of the undertaking. They
are all laid out on the same plan, two to each floor and six to
each building ; they are each 40 metres by 20, and are lighted
on three sides. Manufacturing conditions are the same for all,
which enables Bata to compare their output. With 108 men
working at a conveyor and 40 women stitchers on piece work,
he has succeeded in obtaining a daily output of 2,000 pairs in'
each workshop.
With this tempo, it may well be imagined what a minute
per pair lost or gained in an assembling workshop means to
Bata. Hence no slackening of the pace is tolerated. All the
details of the work at the conveyor are adjusted with the utmost
care. Each workshop has spare staff and spare machinery at
its disposal; all machine failures likely to paralyse work on the
conveyors are immediately reported; and the engineering repair
shop is always ready to send repair gangs to replace or restart
the machinery. But the greatest problem the foremen have to
solve to ensure the smooth working of a conveyor is that of
recruiting or training a homogeneous team. Homogeneity is a
quality that is not acquired in a day. When Bata introduced the
conveyor system, output at first fell by 50 per cent.; but it has
at least tripled since.
In his endeavours to get the most out of his plant, Bata has
not relied on his technical organisation alone. Conveyors may
accelerate the pace of working, and ingenious methods may
reduce the wastage of raw material to the minimum, but the
best plans and the best methods of work are worthless without
the co-operation of the worker who applies them. Bata was not
long in deciding that it was essential to interest the workers in
this part of their duties. It was in this way that he devised his
scheme of workshop autonomy, which has already been referred
to. The moment has now come to explain in some detail the
nature of this scheme, which is certainly the most interesting
feature of Bata's system. Furthermore, it is of particular importance for the purposes of the present study because it is comparable, as to its aims, with the so-called " industrial relations **
schemes instituted elsewhere. Upon it depends .the worker's
status, and, in a large measure, the organisation of work in the
undertaking. It is on this workshop autonomy that Bata relies
to establish, the desired relationship between himself and his
staff—a relationship taking the form of co-operation, founded
on identity of interests, which shall enable his undertaking.

THE BATA BOOT AND SHOE FACTORY

229

immune from all industrial strife, to function with the regularity
of clockwork.
WORKSHOP

AUTONOMY

To describe the motives that in 1924 led Bata to institute
his system of workshop autonomy, we cannot do better than
quote some passages from Cekota 1 , the best exponent of his
ideas :
Workshop autonomy is Thomas Bata's vital and fundamental
achievement. The guiding principle of his organisation is the transformation of the worker's mentality—from a man whose wages are
his only interest, he becomes a collaborator in the undertaking. . . .
To effect this transformation, the worker must be given scope for
initiative in the matter of production. His incentive must be the
desire for gain, the magnitude of which depends upon the inventive
genius of the head of the undertaking. . . . The profits of an undertaking are nothing but the sum of the inventive talents, the labour,
the efforts—in a word, the initiative—of everyone employed in it.
The aggregate results depend in fact on the comprehension of economic
necessities and the co-operative spirit of each worker, however humble
his task. . . .
The wage systems which served their purpose in the organisation
of industry in most European countries during the nineteenth and
twentieth centuries do not offer a sound basis for productive and
fruitful work ; they weaken the worker's sense of personal responsibility far too much.
The effect of piece wages is better, for they make it possible to
reward each worker's quickness and zeal at once, and in proportion
to the amount of work done. But here again, especially with the
modern division of labour, personal responsibility for the work done
is abolished, and relations between worker and employer are limited
to the-number of pieces delivered and the calculation of wages. As
to contact between worker and customer, that is now out of the question. The solitary worker does not in the least concern himself in the
interests of the whole group of workshops. Piece wages are too personal ',
and leave the door open to an endless variety of unhealthy consequences
of individualism. That the productive methods of the old-time handicraftsman did not give remarkable results is clear, but they did at
least foster individual initiative. When a shoemaker made shoes,
he knew that the amount of his remuneration Would not depend
entirely upon his manual skill, but also on his economical use of
leather and other material, the care with which he executed his orders,
and the quality of his work, which alone could enable him to keep
or add to his customers. . . .
Thomas Bata, who started in the humblest way in a handicraftsman's workshop, has never overlooked the value and utility of this
kind of responsibility. He has tried to create a similar system of work
1

Neue Wege, pp. 56, 59.

'-'SO

INDUSTRIAL RELATIONS

that would allow everyone, even the operative in a large factory, to
work with the same application, the same desire for economy—in
time, energy, and material — and the same responsibility, as the independent head of an undertaking who is paid in proportion to his
output. He has tried to perfect a system under which everyone employed in the undertaking would be bound to the others by economic
bonds, and could exchange his half-finished or finished products
for another's. He solved this problem in 1924 in a novel way, and
called his solution workshop autonomy.
It thus seems that Bata in the course of his advance towards
large-scale industry has been sorry to see the qualities he had
been able to appreciate in his father's workshop dying out in his
workers, and has tried to restore to them, together with a sense
of their responsibility,, a little of that professional conscience
and interest in their work that were the pride of the old-time
handicraftsmen. There is nothing surprising in such a feeling,
but it should not be misunderstood. For Bata, philanthropy is
a word devoid of meaning. His driving force is solely the wish
to increase profit. He has said as much himself plainly and
without hypocrisy. In 1924 he made thè following announcement
to the workers whom he had selected for his first experiment :
Our reason for giving you a share in the profits is not that we
think we ought to distribute charity to mankind. Our aim is a different
one. We want to raise the level of production. . . . Manufacture can
be cheapened and higher wages paid. So far your individual effort
has not given good results, because you have had your eyes fixed
on your own needs and you have not troubled to work so as to help
those who take over from you. Profit-sharing will put an end to this
bad practice, by giving you an interest in the speedy and thorough
execution of the work of the entire workshop, and by stimulating
greater economy of material.
These few words are a lucid expression of Bata's ideas. They
show plainly what he wanted, namely, to replace individual
effort by collective effort; to establish the worker's responsibility,
not only within the limits of his daily job but in the whole
scheme of production; to make him observe the results of his
own work and help forward that of all his comrades.
Such being Bata's motives, what is his system ?• At the very
outset, he drew up a number of precise rules which he has never
amended since. Profits should be calculated weekly so as to
enable the worker to compare his output as often as possible,
and should be set out clearly so that everyone can easily check
them himself. The workshops should be divided up into small
units so as to give all the beneficiaries of the system an opportunity öf contributing personally to the smooth running of the

THE BATA BOOT AND SHOE FACTORY

231

departments. He also declared that he would pay 10 per cent.
interest on all profits left in the business, and that every worker
aged twenty or more with at least one year's service in the workshop could share in the profits.
To-day the system of workshop autonomy is applied, with
numerous variations, throughout the factory, even in the social
departments. The Press department, which publishes the works
magazine (Sdeleni), is autonomous; so are the hospital, the
shop, the restaurant, the cinema. The undertaking is divided
into 250 autonomous departments, each of which has its own
resources and accounts. Each of these departments debits and
credits its neighbours with the goods delivered or received. Each
workshop buys all the materials it needs from the workshop
next before it in the cycle of manufacture, and passes them on
to the next after. It can, if it wishes, refuse a consignment of
doubtful quality; or point out that the goods it receives could
be bought outside at a lower price, and refuse to pay more.
The last-making workshop buys its wood direct from the sawmill, and delivers its products to the assembling workshops at
a price fixed by Bata, which includes fair payment for the work
done. The superintendent of the raw material warehouse passes
nothing on to the rubber workshop or the tannery without an
invoice. Every workshop and department has a double interest
in the proper execution of the work. They share in the profits
resulting from a reduction in their costs or an increase in their
output; and they bear the consequences of any poor quality in
their work, as shown by the refusal of their goods by the next
workshop.
In making his workshop managers responsible financially,
Bata ought logically to have required them to give security; but
he has devised another plan. Each week he pays only half the
profits earned, and retains the rest as security, crediting it with
interest at 10 per cent.
However wide the autonomy thus allowed to the workshops
may be, it is of course essentially only an autonomy in the
keeping of their accounts. A workshop may not use its autonomy except to discharge to the best of its ability the duties
assigned to it. It is Bata who, in the last instance, decides as
to the allocation of resources and the payment of the different
departments.
His system is extremely flexible, but its widely varying forms
are always an elaboration of the same rule : to assign to each

282

INDUSTRIAL RELATIONS

department its share of costs and profits, with an elastic margin
that shall stimulate the managing staff to increase output, not
only by the desire for gain, but also, by the fear of loss.
In his assembling workshops, for instance, Bata now applies
his autonomy principle in the following way. He allows each
workshop a fixed sum, say 2 koruny, for every pair of shoea,
and he pays the wages of the workers who are regularly on the
workshop books. The workshop manager, on the other hand,
must debit the account of his workshop with the cost of electric
current, lighting," heating, water, minor repairs if any, defects
in manufacture, and the cost of extra staff.
By a sort of royalty on every pair credited to each workshop
and building, Bata relieves himself of all management costs, these
being calculated high enough for each workshop and building
to be able even to make a collective profit. In fact, the system
is really that of the workshop contract with an output bonus.
As compared with his chances of earning a profit, the responsibilities of the workshop manager are obviously heavy. The
level of production, the main factor in his earnings, is fixed by
the central management. The only latitude allowed him is to
manufacture the number of pairs assigned to him at the lowest
cost, and to hold himself ready to comply immediately with any
order to increase output. Each shop is mechanically equipped
to turn out 2,000 pairs per day of eight hours. The manager
must at any time be able to bring his output up to this maximum.
If he does not reach the prescribed -level he must bear the risk
of delays, indemnities to customers, and even cancellation of
orders. But another danger awaits him : the more the pace is
forced, the more difficult does it become to get the workers to
turn out faultless goods. If time is short, a workman will relax
his scrutiny of the material he receives; and if the control rejects
defective shoes äs they leave the workshop, the reserve assigned
to this risk is soon exhausted. With only 10 koruny off each
defective shoe, at the most 100 pairs a week or 16 to 17 a day
can be thrown out by a workshop without loss, i.e. not more
than 1 per cent, of an average daily output of 1,600 or 1,700
pairs.
The employment of extra staff is also not without difficulties'
for the workshop manager. He tries to get out of the workpeople all that they are capable of giving, but occasionally,
especially in the sewing rooms, he has to draw upon outside help.
Usually he calls in former work-girls who have left the workshop

THE BATA BOOT AND SHOE FACTORY

288

after marriage, and who are glad to return for a spell of extra
work.
The workshop manager is not responsible for repairs except
in so far as machine stoppages and defects in equipment are due
to carelessmess or poor upkeep, in which cases the engineering
shop charges him with the time spent on repairs.
It is important to stress the fact that the responsibility that
Bata imposes on his managerial staff to ensure the quantity and
quality of the workers' output does not affect each individual
worker. Workshop managers, foremen, and the profit-sharing
staff1 are alone responsible; and their responsibility is limited
since the risks they run do not extend beyond their share of the
profits, their wages not being affected by fluctuations in output.
As regards the non-profit-sharing staff, they can, here as anywhere else, be fined for carelessness or serious misconduct (not,
however, more than 10 per cent, of the daily wage), but they run
no other risk.
The system of workshop autonomy devised by Bata, as has
been seen, is much less a social experiment than a measure of
industrial organisation aiming at securing the maximum output
from man and machine. The system bears the clear impress
of Bata's realism; as with all others of his achievements, it is
circumstances, environment, and business necessities that have
forced it upon his mind. Installed at the back of beyond, in a
region devoid of industrial traditions, unable to count upon a
skilled labour supply, and compelled in consequence to mechanise
his manufacture to the last degree, Bata might well fear that
his workpeople, however well trained they might be, would not
get the utmost out of his plant. To ensure the success of his
technical organisation, he has called psychological factors to his
aid. He has brought his workpeople's sense of responsibility to
bear by playing on their desire to increase their earnings.
Autonomy enabled him to overcome all the psychological
difficulties to which his policy of mass production gave rise.
It is thanks to autonomy, to the initiative allowed to an
enterprising manager, that in three months he was able to obtain
an increase of 800 pairs a day in one of his workshops, passing
from 1,200 to 2,000, at the same time reducing the number of
workers from 210 to 180. It is again thanks to autonomy
that "he has been able to profit from competition between his
1

This term will be explained farther on.

284

INDUSTRIAL RELATIONS

collaborators by stimulating them with bonuses
quality. The sporting team spirit that he has
being has made it possible for him to train a
ensure its homogeneity, and to secure a regular

on quantity and
thus called into
scratch staff, to
output.

These are not the only results of the system. Another is that
Bata has been able to insure himself against part of the risks
entailed by his prodigious progress. By charging a certain
amount against every pair of shoes, he not only relieves himself
of all overhead costs, but partly covers himself against loss due
to faulty work.
The autonomous organisation of his workshops means that
they act as a kind of shock absorbers against fluctuations in
output. It has enabled Bata to avoid accumulating stocks, to
reduce his cost price accordingly, to draw up his minimum programme of manufacture and fix his selling prices in perfect
safety, and to increase his profits by any additional orders that
come to hand.
These, then, are the advantages that Bala derives from his
system of autonomous workshops. It now remains to consider
the consequences that the system may have for the workpeople.

RELATIONS WITH THE

STAFF

Every system of industrial relations requires to be studied
with reference to the staff to which if applies, and Bata's organisation is no exception.
In December 1928 Bata employed 12,500 persons at Zlin, not
counting 300 masons and building workers permanently employed
on the premises, and the staff of his brickworks. The staffs of
the sales agencies and repairing workshops amounted to about
3,000 persons. Bata thus provided a livelihood for over 16,000
persons. No mention will be made here of the outside staff
recruited on the spot and paid directly by Bata's agents; their
conditions of employment, depending on the importance of the
locality in which they work, are essentially variable.
The Zlin staff is almost entirely of rural origin. Since the
regular population of the town could not supply Bata with more
than a small fraction of his labour, he has had to turn to the
surrounding country and settle his workpeople around the factory
by providing them with housing accommodation. The three

235

THE BATA BOOT AND SHOE FACTORY

rural districts of Zlin, Uherské Hradisté, and Holesov have each
supplied him with 2,000 workers, and the contingents from four
others, namely, Uhersky Brod, Vsetin, Prërov, and Kromeriz,
range from 500 to 2,000. A circle enclosing the districts that
have supplied him with over 100 workers would pass through
Brno, touch the Austrian frontier, follow the Carpathians as far
as Decin, and return by Olomouc. Its radius would be about
100 kilometres. 1
If the first characteristic of the Zlin workpeople is their
peasant origin, the second is their youth. They are divided into
four age groups, the percentage of each to the total being as
follows :
Group

Men : over 21 years of age
under 21
„
„
W o m e n : over 18 years of age
under 18
„
„

Per cent.

45
16
26
13

According to these figures, the majority of Bata's manual
workers and salaried employees are over 21 years old, but most
of them look as if they were between 21 and 25. This is not
surprising. Since 1923, Bata has increased his regular workshop
staff by 10,000 persons ; and the addition of all those who have
replaced workers leaving—about 20 per cent, per year of the
total labour force employed 2 —gives an aggregate of 16,000
persons who in five years have come to work at Zlin. The
nucleus of original workpeople is a small minority compared
with this horde of newcomers.
A corollary of these two characteristics of. the staff—youth and
rural origin—is the absence of industrial tradition and of education fashioned by the environment ; but in order to provide
himself with a homogeneous staff, Bata has put authority and
the appeal to ambition in their place. On this brand-new staff,
capable of being trained, of accepting without a murmur methods
and an ideal that men of another generation might have rejected,
Bata has succeeded in imposing his discipline. By his system of
workshop autonomy he also appeals to his workers' initiative,
and he has succeeded in bringing it about that the compliance he
exacts is largely voluntary.
1
Bata's magazine Sdeleni, No. 12 of 1928, contains a map Showing the districts
where the largest numbers of his workers are recruited.
1
The turnover, as will subsequently be seen, amounts to 30 per cent., but
about a third of those leaving return to their place in the factory after military
service.

236

INDUSTRIAL RÏXATJOiiS

In this way, many vexatious prohibitions have been rendered
useless. The prohibitory notices posted up in the workshops are
the customary ones, and are often couched in the form of recommendations avoiding the imperative. As elsewhere, it is forbidden
. to smoke, to arrive late, or to be absent without reason ; but the
workers are not overwhelmed with fines. The total amount
incurred in 1927 was 70,000 koruny, or less than 20 koruny per
worker, and was paid into the provident fund of the factory.
For a large part of the staff penalties inflicted by Bata are
superfluous. In the organisation he has created penalties
inflict themselves automatically. The worker whose output is
insufficient through his own fault immediately sees the result of
his poor work in his wages. Team work and the output table
constitute the best system of control. Workers whose carelessness
and ill-iwill reduce the output of their workshop are reprimanded,
and if necessary eliminated, by their own mates.
In spite of the automatic and impersonal nature of this
discipline, the part played by the foremen and workshop
managers is still considerable. They must interpret the regulations, and adapt them so as to reach the essential goal of
increased output. A brutal foreman may drive his team to
desperation, have an excessive labour turnover, and in spite of
all his efforts fail to get beyond 1,200 pairs a day. Another, who
knows how to manage his workers, and use persuasion and
emulation, may reach 1,800 pairs without difficulty. Here again,
comparison of the output of the various workshops enables the
foremen to correct their methods, and Bata to judge of their
aptitude to command by the manner in which they secure
discipline.
The degree of compulsion that is enforced throughout the
factory, on manual workers and salaried employees, as on workshop managers and heads of departments, may be too rigid for
some. Those who cannot stand it leave voluntarily. Others,
whose youth and inurement to the hard work of the fields make
compliance an easy matter for them, accept it without overmuch
difficulty, the more so as the Zlin regime offers them compensations.
The absolute authority that Bata wields over his workers has
as its counterpart the equality of all before him. There is no
hierarchy at Zlin. The terms "manager", "head of department",
are used to designate posts, never their holders. Bata delegates
his authority to no one. He has nothing more than a mobile and

THE BATA BOOT AND SHOE FACTORY

237

changing general staff, composed of the chief manager of each
building and a few other trustworthy employees. This equality
affords everyone an opportunity of trying his fortune in the
works. Few of Bata's immediate assistants are from the outside ;
all, or nearly all, have risen from the ranks. There are few
engineers, few certificated4 technicians. Workers or foremen
have become chief managers of buildings at 22 years of age ;
25-year-old employees represent him abroad. Thus every- apprentice knows that by working hard and by giving proof of
initiative he can reach the highest posts. The continual creation
of new workshops opens up to all new prospects of gain and of
success.
This staff, on which he imposes his authority while throwing
open the door to unlimited enhancement of earnings and of
welfare by profit sharing and promotion, Bata endeavours to
inspire with a common ideal. Here again he makes up for the
absence of industrial traditions, an absence that might threaten
the homogeneity of his team, and turns what at first sight might
appear to be a weakness to the advantage of his factory.
As soon as they enter the factory, he begins to teach his
apprentices what may be called his "economic code of morals",
which may be summed up in this definition : "A man is not
worthy of the name unless he can assure his own and his family's
independence." With this philosophy, he deliberately runs
counter to the customs of family communism that still prevail
in the agricultural districts in which he recruits his workpeople.
In their villages his apprentices depend entirely upon their
parents, receiving board and lodging from them, and in exchange
handing over to them the whole of their earnings ; Bata wishes
to oblige them to regard themselves as independent, and thrift as
the first sign of independence. "In speaking of thrift", he says,
"I do not wish to speak of saving only ; that is the positive side
of thrift, and takes only third place. The first thing is to know
how to earn ; next, to know how to spend ; saving does not come
till afterwards."
Thus, providing for oneself and balancing receipts and
expenditure are, for Bata, the signs of economic independence.
Hence the appellation he has chosen for his apprentices—"young
men" (Junge Männer). Hence, also, the mission he has undertaken, as will be seen later, of teaching his workpeople not only
how to earn, but also how to spend.

238

INDUSTRIAL RELATIONS

Workshop autonomy, sharing in profits and in losses, the
fostering of emulation and personal ambition by the opening up
of avenues of promotion, and the development among his staff
of a new economic code of morals that marks a definite separation from their original environment—these, for Bata, are so
many means of inducing his staff to collaborate in the essential
task that he has set himself, which is to increase the yield of his
undertaking. The psychological result of the system is the
creation of an esprit de corps among his workpeople, and Bata
omits nothing that will foster and develop it. In his speeches
and in his factory magazine he is never tired of retracing the
progress, accomplished, and piloting all energies to the common
goal.1 Belonging to the undertaking, being a "Bataman", should
be for all, apprentices and foremen alike, a source of pride. The
factory is represented by him as a new fatherland, and he misses
no opportunity of exalting it. The May Day festival has been
used by him to celebrate the common achievement. He makes
use of everything capable of nurturing the collective spirit—the
magazine, the firm, sport, etc.
This attitude of Bata's, which makes him look upon his
undertaking as a real co-operative organisation, in which everyone works at once for himself, for Bata, and for all, and in which
accordingly there can be no real contradiction between the
worker's interests and those of the workshop manager, nor
between the workshop manager's interests and those of the central
management, this attitude it is that leads him to look askance at
any workers' protection organisation that might come between
his staff and himself. He permits no other relations with his
workers than personal and permanent contact.
Moreover, he lives literally in their midst. He has installed
himself at an ordinary table, half wood, half iron, in the middle
of a large room on the third storey of the building in which are
concentrated the managerial departments". Around him work his
principal assistants and his thirty head managers of buildings.
On the right, against a long partition, a large board studded with
lamps shows Bata instantaneously where he is wanted. If a dif^
ficulty requires his intervention, he goes at once to the spot, and
spares no pains to solve it in direct collaboration with his
workers.
1
"This gift", he said, referring to a birth bounty, "should pledge you to loyalty
to your work." The declaration that every newly-engaged worker has to sign
ends with this sentence : " I know that it is my duty everywhere to defend the
interests and honour of the firm, as well as of its staff and my future comrades."

THE BATA BOOT AND SHOE FACTORY

239

As he exercises absolute control over the technical side of the
management of his factory, so he is determined not to delegate
any of his power over the human element. He reserves to
himself the right, in the last resort, of being the arbiter in any
internal disputes that may arise ; but he counts upon his system
of organisation, and especially on workshop autonomy, to
prevent them or settle them automatically. Thus the idea of
setting up in his factory a body representative of the workers has
never occurred to him. True, he has had to accept the works
council provided for in Czechoslovak legislation, but he has
learned how to convert it into an instrument of his authority.
He does not interfere in the election of members, but he is
aware of the identity of the candidates soliciting their comrades'
suffrages. Meetings are held twice a month, as required by law.
The agenda is composed exclusively of questions of hygiene
and accident prevention, but the council can also take cognisance
of disputes between workers and workshop managers. Every
worker who has been in the factory for three years is legally
entitled to have recourse to the council's good offices. In practice,
however, it is rare for disputes to be brought before it. Since
1926 no difficulty has arisen between the council and the
management.
It is not easy to see what guarantee the works council affords
the workers, but Bata has sometimes found it useful. During trie
critical days of 1922, when at a single stroke he reduced his
selling prices by 50 and his wages by 40 per cent., it was to the
works council that he turned to get this Draconian measure
accepted by the workers. He was able to persuade it, and, thanks
to its aid, to carry out without a struggle the hazardous policy
upon which he had engaged.
Bata is even more distrustful of any form of outside intervention than of inside organisations representing the workers. Hence
the scant sympathy displayed by him for trade-union activities.
Convinced that by his system of organisation he has bound up
the prosperity of each of his workers with that of his factory,,
and that he has thus made them the arbiters of their own iate, he
cannot imagine that more can be asked of him, and he insists on
trust in himself. Moreover, the spirit of trade-union solidarity
seems to him to be in contradiction to the esprit de corps that he
tries to create in his works, and likely to endanger the direct
contact he maintains with his workers. Lastly, the strife that

240

INDUSTRIAL RELATIONS

divides the Labour Movement leads him to look upon trade-union
propaganda as a disturbing element, capable of destroying the
psychological unity of his undertaking.
. So much being granted, Bata is prepared, in the interests of
his business, to avoid anything that might lead to a dispute with
the unions. He pays considerable attention to the criticisms that
the trade-union Press levels against him. The unions themselves,
which are theoretically his adversaries, and reproach him with
the hold he has over his staff, are ready to come to an understanding with him on practical problems.
As to the workers, it is difficult to know what they think of
this state of things. Actually, few of them are trade unionists,
and there has been no serious dispute since the reorganisation of
1924 : but trade-union propaganda is not inactive, and it is
impossible to say what the future will bring. In any case,
in appraising Bata's labour policy and its results, the rather
special characteristics of his staff must always be borne in mind.
Young, and hardly yet emerged from the almost feudal system of
large landed estates, they are still prone to compliance with his
system, and those who cannot adapt themselves to it are either
eliminated or leave voluntarily. To the remainder Bata has
hitherto offered working conditions sufficiently advantageous to
preclude any ground for serious discontent. These conditions
will form the subject of the next sections of the article.

RECRUITMENT

Bata employed 3,000 workers in 1924, 4,600 in 1925, 6,000
in 1926, 8,000 in 1927, 10,500 at the beginning and over
12,000 at the end of 1928. In spite of the rapid growth of his
undertaking he has never had any difficulty in recruiting his
staff; the recruiting department receives applications for employment throughout the year, mostly in winter when work in
the fields is at a standstill and the sugar refineries are closed.
In Christmas week 1928 it filed more than 5,000 applications;
the weekly average for the whole year is about 200.
Every applicant must fill in an enquiry form and undertake
to answer the questions truthfully. The letter of engagement
declares that "a wilfully false statement immediately annuls the
contract of employment without any obligation on our part".
On the form that applicants for vacant posts in the central depart-

THE BATA BOOT AND SHOE FACTORY

241

ments must fill in, the usual questions as to education and previous situations are supplemented by the following :
Your parents' circumstances :
Have they :
A house ?
Fields, and if so of what size ?
Savings ?
Debts ?
Your own circumstances :
Have you :
A house ?
Fields, and if so of what size ?
Savings ?
Debts ?
The enquiry form for manual workers is even more searching,
for these workers have to state not only the amount of their
savings or debts, and of ready money available for their maintenance until their first pay-day, but also what sum they require
per week and per year to keep both themselves and any persons
who may be dependent upon them. The enquiry form provides
for a complete statement of household accounts under the heads
of : food, lighting, housing, heating, linen, clothes, footwear,
other necessities, expenditure on amusements, and total. The
applicant must also state how much he thinks he would have
to earn per week and per year to satisfy his needs, how much
he wishes to save per week and per year, and what he intends
to do with his savings.
The purpose of these questions, which elsewhere would seem
more than indiscreet, is not so much to ascertain the financial
circumstances of the applicants as to enlighten them about their
own requirements. These youths are fresh from the land, without any industrial experience, and ignorant of living conditions
at Zlin; moreover, they have but a modest opinion of themselves and perhaps count on eking out their earnings with help
from their parents; hence they may easily offer their services
at too low a price and fail to ask for a living wage. If they are
engaged, the Staff Department begins by giving them a lesson
in book-keeping and domestic economy, makes out a new estimate
of expenditure for them, makes them understand that the wages
they ask are insufficient, and allows more as a matter of course.
On the other hand, it forbids the parents to send them anything.
Accepted applicants are summoned to Zlin, where they
undergo a medical examination. The proportion of applicants
rejected is very low, not more than 2 per cent., almost entirely
16

242

INDUSTRIAL RELATIONS

accounted for by defective hearing or sight. Some time ago Bata
made all new-comers undergo a psychotechnical examination,
but he has abandoned this practice because the results were not
conclusive. Statements of aptitudes are no longer required except
for apprentices. 1
Every applicant is on probation for a fortnight, during which
time he receives the minimum wage of his category. At the
end of the probationary period he is either definitely engaged
or dismissed without explanation. Only workers engaged for
machine work undergo a technical examination.
The new worker is given a contract setting out his conditions
of employment and his weekly wage. Any change in his duties
automatically entails renewal of the contract and of its terms.
Apart from a few specialists, Bata's policy is only to engage
youths whom he can train himself. The wide choice available
to him enables him to eliminate incapable or unruly individuals
and to retain none but those who are able to adapt themselves
to his methods.
Unfortunately the low average age of the staff is the cause
of a rather high labour turnover, the rate for 1927 being 30 per
cent, over the year. The chief causes of departure are : for
youths, military service; for girls, marriage. It is, in fact, an
invariable rule of Bata's not to re-employ girls who leave the
factory to marry, save in exceptional circumstances or temporarily.
About a third of those who leave the factory do so voluntarily,
either because they have not been able to adapt themselves to
the discipline or methods of work, or because they have passed
an apprenticeship with Bata with the sole purpose of finding
better conditions elsewhere.
According to the Staff Department, dismissals are not responsible for a high proportion of departures. The grounds for
dismissal are indiscipline and incapacity. As required by law,
a week's notice is given to the person concerned; it does not
establish any right to compensation.
APPRENTICESHIP

Apprenticeship has always been one of Bata's main preoccupations. Obliged by his remoteness from all industrial centres
and by his manufacturing methods to train the greater part of
» Sec below, p. 243.

THE BATA BOOT AND SHOE FACTORY

2+3

his workers himself, he has long made arrangements to give
them their general and technical education in his own factory.
The number of apprentices has naturally grown with the
development of the factory. From 180 in 1925 they increased
to 900 at the end of 1928; the building that Bata has just bought
to house them has room for 1,500.
Bata always dissuades parents who send their children to
him from making clerks of them, arid urges them to choose
careers in the factory that are suited to their aptitudes. All
applicants have to undergo a psychotechnical examination on
arrival. To the usual tests for sight, perception, touch, and
hearing, are added certain others specially adapted to the type
of work awaiting the apprentice. Once accepted, the apprentices
are housed by Bata in a special building and subjected to an
almost military discipline. They rise at 5.30 a.m., go through
a few gymnastic exercises, dress, tidy their room, breakfast together, work in the factory from 7 a.m. to noon, lunch, and
amuse themselves. They restart work at 2 p.m., leave at 5 p.m.,
dine, and from 6 to 8 p.m. attend courses in book-keeping, commercial correspondence, English, German, drawing, etc., according to their aptitudes. They have all to be in bed by 9 p.m.
On Sundays those who live near go home, and the others amuse
themselves with games or sports, or go for walks.
Each dormitory has 22 beds arranged in pairs, one above
the other as in a ship's cabin. Perfect cleanliness of body,
clothing, and premises is insisted upon. Each room is under
the orders of a "captain", elected for six months by his comrades and responsible to the director of the hostel for the discipline and cleanliness of all. The length of the stay in the
hostel is three years; the usual age of admission is 14 years.
At the end of each year the apprentices are free to leave the
factory or to stay on, but voluntary departures seem to be very
rare.
On the other hand, apprentices may be dismissed at any
moment if they do not give satisfaction. Their work in the
workshop is reported on by the foreman, their work in the hostel
by the teachers, and their conduct by the director of the hostel.
Apprenticeship entails passage through all the workshops,
even for youths intended for office work. Bata deems it essential
that his employees in the buying and selling departments, and
his future managers and representatives abroad, should be acquainted with all the details of manufacture, and themselves be

244

INDUSTRIAL RELATIONS

able to judge of the quality of raw materials or finished goods.
The final choice of duties is not allowed until after this stage in
the workshops, and it is thus made with full knowledge of the
circumstances.
Apprenticeship with Bata includes not only vocational training, but also the preparation of the young worker for the accomplishment of his social duties. It is here that Bata has put into
practice what has been called above his "economic code of
morals".
From his first week at Zlin the apprentice earns a wage
adequate for his maintenance; but he has to put down in a
note-book his estimated expenditure for the week and to submit
the estimate to the director of the hostel for approval before
entering the items in his accounts. * The apprentices are obliged
1
The following estimates and actual expenditure of S., aged 16, a third-year
inmate of the hostel, are given by way of example :
Week 46
Earnings : 271 koruny
Board
70
Lodging
4
Linen
2
Sickness insurance
8
Taxes
2
Fine
0
Pocket money
15

Total
Savings
Week 47
Board : 100 (reduced to)
Lodging
Linen
Insurance
Taxes
Fine
Pocket money : 15 (reduced to)
Outdoor clothes : 287
(suppressed)
Total
Savings
Week 48
Board
Lodging
Linen
Insurance
Taxes
Fine
Pocket money
Debt
Clothes : 100
(struck out after reflection)

101

101
170
Earnings : 437 koruny

75
4
2
8
11
15
10
—
125

125
312

Earnings : 425 koruny
80
4
2
8
9
1.20
15
50
—

While in the factory S. has up to the present saved 3,126 koruny, not
counting interest.

THE BATA BOOT AND SHOE FACTORY

245

by this supervision to use part of their earnings to increase their
savings, on which Bata allows interest at 10 per cent.
According to the statements in the account book given them,
the youths can save 20 to 30 koruny out of their average wage
of 120 koruny from the moment they enter the factory. Theoretically, they should be able to save 8,000 koruny, including interest,
in three years. Actually some of them succeed in amassing about
6,000 koruny in this time, but the average is about 3,000 or
4,000 koruny. In the common-room of the hostel a roll of. honour
is posted up bearing the names of the youths who have saved
the most in the course of the year.
HOURS

WORK

The regular hours of attendance in the factory are from
7 a.m. to noon and from 2 p.m. to 5 p.m.
The question of actual hours of work at Zlin is a highly
vexed one. In certain Czechoslovak trade-union circles Bata has
long been accused of failing to comply with the statutory requirements, and of making his staff work more than the regulation
eight hours. It is partly on this criticism that the charge of
"social dumping" levelled against the Zlin undertaking is
founded. l
Bata has defended himself vigorously against this accusation.
An opinion may be formed of his arguments from the reply
made in January 1929 to an article by Dr. Schwenger in Soziale
Praxis :
In an article entitled " The Bata System " Dr. Schwenger asserts
that with Bata there is no normal working day and that ten and even
eleven hours' attendance is almost the rule.
In view of this assertion we declare that :
(1) Our chief, Mr. Thomas Bata, attached particular importance
to the eight-hour day before there was any question of making it the
subject of legislation in Czechoslovakia.
(2) Since it came into force, the Act on the eight-hour day has
naturally been respected. Before the afternoon spell (2-5 p.m.), and
a t 5 p.m., the current is switched off and it is impossible to continue
working in the workshops.
(3) The law allows overtime in certain circumstances, as in Germany. Overtime work must be previously approved by the authorities
and paid at special rates. Our practice in respect of overtime is in
strict conformity with the statutory regulations.
(4) Repair work on machines, cleaning, etc., are, of course, done
1
The most recent authors to formulate this charge are Rudolph PHILIP, in
bis book Der Unbekannte Diktator, and Dr. K. SCHWENGER, of Prague, in an article
in Soziale Praxis, 29 Nov. 1928.

246

INDUSTRIAL RELATIONS

outside normal working hours, but only by special shifts and in conditions fixed by contract.
(5) We gave proof of our strict compliance with the Act on the
eight-hour day before District Court No. 1 in Berlin in the course
of proceedings respecting the prohibition of the sale of Rudolph
Philip's book, « Thomas Bata, The Unknown Dictator ". The Court
unreservedly accepted our evidence, which was a ground for the injunction that it granted shortly afterwards, prohibiting the sale of the
book. Among other proofs we lodged statements by the Ministry of
Social Welfare at Prague and the factory inspectors of the Zlin district,
showing that there could be no question of hours of work being exceeded
in our undertaking, at least since 1926.
To conclude, with us the normal duration of work is fixed at eight
hours, except when the authorities have been asked for a permit to
work overtime. Moreover, hours of work form the subject of a declaration in the working regulations which are submitted to the authorities
for approval, posted up in the factory premises, and given
in booklet
form to every worker when he enters the factory. 1
Without entering further into the details of the controversy
that has,arisen between Bata and his critics, the author of the
present report believes that he m a y . b e able to clear up certain
misunderstandings by offering a few remarks in the nature of
first-hapd evidence.
It should first of all be observed that for Bata what counts
towards hours of work is essentially the time specified for each
1
Account should be taken of the following observations in Dr. Schwenger's
reply, which have the value of first-hand evidence :
"In face of the reply made by Bata's firm, I am obliged to maintain my statements. As a matter of fact I did not say that the management of the undertaking
gave orders^for more than eight hours to be worked. But actual observance of the
hours of work is another matter. Bata's system is so organised that, owing to the
programme of work, overstepping the eight hours becomes a necessity, not in the
sense of the Act, but in reality. . . .
"If the programme is not adhered to the worker sees his wages- reduced. In
practice the programme is carried out, because the interests of the foreman, who
has to accept full financial responsibility for its execution day by day, are at
stake. With Bata there is no overtime as understood by the Act and requiring
separate payment. . . .
"When I was at Zlin (April 1928) I found that the intervals between entering
and leaving the workshop were indeed marked off by blasts of the siren, but that
the workers actually began their work much earlier or left it much later. In the
course of conversations with workers I learnt that work began at 6.15 or 6.30 a.m.,
was interrupted at noon, restarted at 12.30 or 1 p.m., and finished at 5.30
p.m. The two-hours' break at midday, as any visitor can see for himself, is not
strictly observed. . . .
"I must admit that my personal observations or those of any impartial visitor
to Zlin do not tally with the statements of the Czechoslovak authorities. It is a
matter of personal opinion. The passage relating to hours of work in the judgment
of the Berlin Court in the case of Bata v. Philip leaves no room for doubt. It
reads as follows : 'The plaintiff has himself had to admit that the eight-hour day
was not scrupulously observed in his undertaking up till 1926. With regard to
the subsequent period, however, he has lodged statements by the local factory
inspectors at Kremsier and the Czechoslovak Ministry of Social Welfare, from
which it appears that no further infringements of the eight-hour day have been
reported.' "

THE BATA BOOT AND SHOE FACTORY

247

operation in his plan of production. This plan is drawn up not
for an eight-hour day, but for a seven-and-a-half-hour day, at
least in the assembling workshops. The remaining half-hour is
a kind of extra allowance to compensate for minutes lost owing
to difficulties in starting the conveyor, or by unforeseen delays
or stoppages. Trained workers have no trouble in completing
their work within the prescribed time; and the Central Department does not ask the others to work beyond their powers, for
a forced pace has a harmful effect on output and lowers the
quality of the finished goods.
The only question is whether the extra half-hour allowed is
enough to cover all risks of delay or stoppage entailed by the
execution of the daily programme of work, and whether the
Central Department, in the case of urgent orders, does not tend
to impose an accelerated plan of production on certain workshops, which cannot carry it out except by extending hours of
work. In either case the workshop manager, being financially
responsible for executing the order within the prescribed time,
will be tempted to lengthen a working day rather than be obliged
to speed up the work next day at the cost of quality, for which
he is equally responsible. He may also, when circumstances
allow and in order not to interrupt the regular work of his team,
let some of the partly trained workers prepare their work before
the regulation hour or finish it after the workshop is closed.
Each case requires separate treatment, and is to a large extent
left to the discretion of the workshop or department manager. 1
Nevertheless, in the matter of hours of work, the powers of the
workshop manager are subject to strict control by the central
/
management.
In the central departments, and especially the Sales Department, the only time available to the employees for drawing up
their plan of work or checking their accounts is after the departure of their subordinates.
Similarly, it might be difficult for a workshop or department
manager to leave the factory at the same time as his workers.
He must make up his returns and accounts, examine his stocks,.
and discuss matters with his colleagues. It may thus happen
that on some days he works an extra hour or two. This is one
consequence of the responsibilities and duties attaching to his
semi-independent status under the system of workshop autonomy.
1
I t may be noted t h a t workers who have finished their work before closing time
are free to leave the factory. This is frequently the case \y»h women stitchers on
piece work.

248

INDUSTRIAL RELATIONS

Actual hours of work depend on the output required, the
experience of the workshop managers, the skill of the workers,
and the homogeneity of the teams.
It is now admitted that abuses may have occurred during the
experimental period when the new system was being got under
way. The have, however, diminished as the rationalisation of
the undertaking has progressed ; for repeated and excessive
infringements are signs of inefficiency and cannot fail to disturb
the management at least as much as deterioriation in qualify
or decrease in quantity.
Bata is even of opinion that the improvements effected in
his methods of production will soon enable the working day
in his factory to be reduced to seven hours. To his mind, all
depends on how the time in the factory is spent, and he accepts
the view that it can be put to still better use.
Bata gives all his staff one week's leave with pay per year,
¿he amount of the pay being the average wage earned during
the, year. He prefers to close the entire factory rather than
to give the workers leave in turns throughout the year. The
period chosen by him for this leave is the first week in July.
The total number of working .days, excluding leave, Sundays,
and public holidays, amounts to 300 per year.
WAGES

AND

SOCIAL

INSURANCE

Bata has four principal methods of payment :
(1) individual piece wages;
(2) collective piece wages;
(3) fixed weekly wages;
(4) wages with a share in the profits.
(1) Individual piece wages were in general use before the
reorganisation of 1924, but at the present time they are not paid
to more than about one-sixth of the staff. This system is now
chiefly employed in the assembling workshops for the payment
. of teams of women stitchers. It presents no novel features.
(2) Collective piece wages are now the rule in the assembling
workshops, and in all places where it has been possible to introduce the conveyor system of working. This method applies to
about half the staff. The method of computation is to assign
a fixed amount of wages to each unit of a workshop's output,
to multiply this sum by the number of units manufactured, and

THE BATA BOOT AND SHOE FACTORY

249

to divide the total earnings among the workers in proportion to
the wage scale of their category.
To determine the amount of wages to be assigned to each
unit, Bata first takes the maximum production of the workshop,
say 2,000 pairs in the case of an assembling workshop. He then
fixes the maximum wage attainable by the workers in each
category, and on this basis calculates the total wages of the entire
workshop.
Suppose the workshop to comprise 80 persons \ 40 belonging
to the category whose average wage s is fixed at 480 koruny per
week, 10 to the category at 240 koruny, 20 to that at 210, and
10 to that at 150. Then the total wages of the workshop will be :
19,200 koruny for the first group, plus 2,400 for the second,
plus 4,200 for the third, plus 1,500 for the fourth, or, in all,
27,300 koruny for a weekly output of 12,000 pairs. The wages
paid per unit of output will therefore be 2.275 koruny. Once
this wage unit has been established on the basis of the maximum
output of the workshop, the number of workers regularly employed, and the average wage of each category, two other simple
operations enable the wage due to each individual to be calculated :
(a) Multiplication of the wage unit by the number of articles
manufactured : if the output, instead of reaching 12,000 pairs,
is only 10,000, the staff of the workshop will be paid 22,750
instead of 27,300 koruny; if it is only 6,000 pairs (the minimum
figure), the staff will be paid 13,650 koruny.
(b) Distribution : the share of each individual worker depends
on his place in the wage category to which he belongs and is
proportional to the output reached. A worker in the first
category, with a maximum wage of 480 kòruny, is paid 240
koruny if the output does not exceed 6,000 pairs, 360 if it is 9,000
pairs, and 480 if the maximum is reached. Thus a worker's
actual wages under this system may vary from the minimum
up to twice as much, the amount indicated as his remuneration
within his category being always a maximum figure.
Up to 1928, Bata had divided his staff into five categories :
skilled men had an average wage of 450 koruny, unskilled men
360. skilled women 240, unskilled women 180, and youths (apprentices) 130.
1
:

Not counting women stitchers paid individual piece wages.
By "average wage " is here meant the average of the wages paid to all the
workers in a given category. These wages vary with the difficulty of the work. The
average wage for the first category, fixed by Bata at 480 koruny for 1929, is the
a verage of the following wages : 570, 540, 510, 480, 450, 420 koruny.

250

INDUSTRIAL RELATIONS

At the beginning of 1928, holding that a man who had
reached his majority ought to be able to earn 80 koruny a day,
so as to save and to satisfy the needs of his family, Bata devised
a new classification and divided his staff into four categories,
namely :
Men over 21 years (45 per cent, of the staff) : 480 koruny;
Women over 18 years (16 per cent.) : 240 koruny;
Youths under 21 years (26 per cent.) : 210 koruny;
Girls under 18 years (13 per cent.) : 150 koruny.
This apparently complicated wage scheme is closely bound
up with the system of workshop autonomy. It tends to create
a feeling of solidarity in the workshop and to promote the homogeneity of the team. Suppose, for instance, that Bata decides
to establish a new workshop. He will take a few good workers
from the existing workshops and make up the number required
with untrained labour. Until the workshop reaches the minimum
output provided for, a minimum wage of 200, 100, 90 or 75
koruny, according to the worker's category, will be paid. The
aim of the workshop manager will naturally be to train his staff
and bring it to a higher output as quickly as possible. He knows
that as soon as he has done so the Central Department will not
fail to increase his share of orders, and that he will be able to
earn more. If one worker, by laziness or unskilfulness, hampers
output, the manager transfers or eliminates him; if another
displays special qualities, the manager makes him his assistant.
(3) Fixed weekly wages are the rule for the employees of
the central departments, and for all workers whose remuneration
cannot be made proportional to production. In order to stimulate
this section of his staff, Bata, at the end of the year, is
accustomed to add a bonus to the weekly wage, the amount
depending on the services rendered.
(4) Profit-sharing is at once the reward and the penalty for
all responsibilities incurred. It therefore affects only those members of the staff on whom responsibility is conferred, and how
it affects them depends upon the nature of their responsibility.
The number of persons sharing in the profits is from 20 to
30 in each assembling workshop; that is, 50 to 60 per cent, of
all the workers in the first category (over 21 years), of about
30 per cent, of the entire staff.
Profit-sharing is effected by different methods according to
the type of work. In the Selling Department it takes the form

THE BATA BOOT AND SHOE FACTORY

251

of commission; in the assembling workshops, of a bonus on
output. Moreover, each participant's share does not represent
the same proportion of wages. It is undoubtedly the larger
part of the total earnings of those employees who are paid a
commission on sales or on purchases; and of the earnings of
heads of departments, whose fixed salary is low, and in some
cases is not more than 200 or 300 koruny a week. For the
majority of beneficiaries, however, it constitutes a supplement
that for a worker in the highest category (480 koruny) may be
reckoned at about one-fifth of the normal wage.
In any case the amount of the share in profits is purely
contingent, unlike the wage, which, although variable, can
fluctuate only between fixed limits, with a maximum of double
the minimum. It is "even more sensitive than the wage to fluctuations in output, and in addition depends on the quality of the
goods. The profits earned by a workshop in one week may
be swallowed up by its losses the next. In the commercial departments chance necessarily plays a prominent part. A sudden fall
in the cost of raw materials, or an unexpected order, is a lucky
windfall that the next day may wipe out completely.
Only half the share assigned is distributed by Bata each week,
the other half being automatically paid into the factory account
of the person concerned, and credited with interest at 10 per
cent. 1
To justify this compulsory deposit, which has been criticised
as encroaching on individual liberty and saddling the undertaking with too heavy a responsibility towards its staff, Bata
points out that in his view the share of profits does not constitute
a part of the wage. Since his system of autonomy entails financial responsibility, he regards the share retained by him as
security serving to cover him in case of loss. This measure,
of course, applies exclusively to the supervising staff of the higher
categories. Hence the amounts due to these employees vary from
week to week, and their earnings are not secure until all risk
1
The compulsory deposit of half the share in profits dates from 1924. At
first Bata confined himself to allowing 10 per cent, interest on savings voluntarily
left in the business by his workers—an appreciable advantage, since the interest
allowed by the State Savings Bank is not more than 4% per cent. He bas continued
to allow the workers to benefit by this scheme, but has limited voluntary deposits
to 10,000 koruny. In 1922, the sums on which Bata allowed interest at 10 per cent.
amounted to six million koruny; in 1923 to nine million koruny; and in 1924
to 12 million koruny. In 1925 the aggregate deposits, voluntary and compulsory,
rose to 17 millions, in 1926 to 26 millions, in 1927 to 40 millions, and in August
1928 to 53 millions.

252

INDUSTRIAL RELATIONS

of throw-outs is past, that is to say, some months after the work
has been done. Bata adds that in case of departure his employees
are naturally entitled to ask for the refund of their savings;
that the savings are returned to them as soon as the responsibility
incurred can be considered to have expired; further, that in
point of fact the waiting period is more often than not reduced,
especially in the case of sudden departure; and Ithat, lastly, the
payment of interest of 10 per cent, on deposits js a substantial
compensation to the depositors for the obligation to deposit. In
practice, employees sharing in the profits can draw money from
their accounts as they need it.
The extreme complexity of the system of remuneration
adopted by Bata, and the large number of variables involved in
it, make it difficult to give an exact idea of the: level of wages
in his undertaking. Emphasis should, however, be laid on the
steady rise of the average wage as shown by the following figures
furnished by Bata. It is interesting to compare this rise with
the steady and simultaneous fall in selling prices of boots and
shoes.
Year

Average weekly
wage of adult workers

Average selling
prico per pair

Koruny

1922
1923
1924
1925
1926
1927
1928

166
180
205
220
240
880
480

+
+
+
+
+

Koruny

50
60 »
80 1
90 1
90 »•

220
119
99
79
69
5»
55

Amount of share in the profits.

In conformity with the legislation in force in Czechoslovakia,
Bata deducts from his workers' wages their share of contributions
to the various statutory insurance schemes, and pays them,
together with his own, into the district fund. There is nothing
unusual in his organisation in this respect.
Bata's position in connection with unemployment insurance.
however, continues to be the subject of controversy. Czechoslovak law makes the right to insurance depend upon membership
of a trade union. The small proportion of trade unionists employed by Bata may well give rise to fears that a very large
part of his staff cannot take advantage of the safeguards offered
by the statutory unemployment insurance scheme.

THE BATA BOOT AND SHOE FACTORY

258

S A F E T Y AND I N D U S T R I A L H Y G I E N E

The prevention of accidents is the concern of the Medical
Department of the factory. The high quality of the plant is
one of the factors making for fewer accidents. The Medical
Department proceeds by stages : two years ago it concentrated
its efforts on generalising the use of electricity in the undertaking ; last year the watchword was the abolition of all transmission machinery, and the equipment of each machine with
a separate motor. The Department keeps itself informed as to
progress elsewhere, so as to obtain ideas for its own w o r k . l
Whenever the work involves danger, special posters warn the
workers against it. This is done in the tanneries for anthrax,
and in the cutting-out workshops for the risk of cut fingers.
Posters are used to put the workers on their guard against the
commonest accidents, e.g. those due to careless handling of
electric wiring, and traffic accidents, both on the road and in
the train. These posters, of the type used in all factories, are
reproduced in the factory magazine, and in the evenings are
discussed in the hostel before the youths and girls.
For the last two years the Medical Department has regularly
compiled statistics of the factory accidents and their causes.
It only records those resulting in suspension from work for at
least four weeks. In 1926 it recorded 128 accidents among 8,366
workers, or 1.51 per cent.; and in 1927, 147 among 10,402
workers, or 1.44 per cent.
Industrial hygiene, like accident prevention, is within the
province of the Medical Department of the factory. The head
of the Department, Dr. Gerbec, was for many years the Zlin
public health officer. He knows the local population, its physical
robustness, and its weak spots. Bata, who attaches great importance to hygiene in his workshops, and good health in his staff,
allows him wide discretion. Bata also retains the technical
services of a collaborator whom hë pays to keep him informed of
the most recent discoveries, and for whom he maintains a Chair
of Industrial Hygiene in the University of Brno.
Medical treatment is given by three medical practitioners who
are in constant attendance at the factory, both day and night.
1
In the tanneries many accidents have been avoided by placing terminals out
of reach. Workers who have to use them are obliged to stand on a stool in order
to reach them ; they are thus protected against any danger due to liquids on the
floor.

234

INDUSTRIAL HELATION8

They have a consulting room and a theatre for urgent operations.
The new hospital 1 undertakes normal operations and the care
of the sick. Bata allows the wives and children of his workers
to use the facilities offered for medical consultation.
According' to Dr. Gerbec, the general state of health of the
workers is good. Departures from the factory on account of
illness are very rare. Bata never dismisses anyone in consequence of illness or disablement; he always finds work for
his own workers who have been ill or are disabled. For some
posts he even engages persons who are disabled or blind and
secures them working conditions equal to those of the rest of
the staff.»
Lighting is everywhere abundant. Blue light is used in the
evenings for office -work. In the workshops the system of
separate lighting for each machine has been abandoned in favour
of general lighting.
The dust-removal system is said to be the best of its'kind
in Czechoslovakia.
In the tanneries, where it is difficult to secure perfect cleanliness from the workers, the workshops are well ventilated and
carefully kept. The workers are protected against corrosive
liquids and chrome solutions by rubber gloves and special masks.
The use of masks is also compulsory in the workshops in which
leather is dyed with a spraying pistol.
In the assembling workshops many workers, both men and
women, work seated. Hitherto the seats have been stools without
backs, but now various types of seats with backs are being tried,
and the model found to be the most practical will at once be put
into use in all the workshops. Workers obliged to work standing
are, if necessary, protected against varicose veins by elastic stockings, or, more frequently, by a change of work.
Eyes and ears are severely tested at the time of engagement.
Experiments are in progress to ascertain the value of contrasted
colours as a means of facilitating the work and resting the eyes.
Occupational diseases are rare, but one interesting discovery
deserves mention. It was recently noticed that working with
hammering machines, on which Bata employs about 40 workers,
1
2

See below, p. 260.
In a pamphlet entitled " Not Charity, but Work " Bata gives a list of disabled
persons employed in his factory. On 11 August 1028, of the 206 then in his employment, 39 had been disabled while in the factory ; the others had been taken on
from outside. Their wages varied from 130 to 500 koruny per week. Of the 25 who
were blind, 0 had saved more than 2,000 koruny.

THE BATA BOOT AND SHOE FACTORY

255

sometimes caused more or less complete paralysis of the fingers.
As soon as this new malady was discovered, the Medical Department decided to examine all the workers concerned; 32 have
already been under observation, without any complaint from
them. The symptoms reported have been under protracted investigation; somel workers have been placed under observation,
and if necessary will be transferred to other jobs. In future all
of them will be periodically examined.
No general enquiry into fatigue and its effects on productive
capacity has yet been undertaken: but the Medical Department
intends to enquire into the reasons for the lowering of quality
in the workshops, and to remedy it. The system of rest pauses
has not yet been under consideration; Bata once thought of
introducing a compulsory break at 10 a.m. to interrupt the long
morning spell, but he came to the conclusion that the unforeseen
stoppages that occur in work on the conveyor are numerous
enough to enable the workers to have some rest from time to
time.
In order to avoid excessive fatigue, the maximum speed of
the conveyor is now adjusted so as to employ not more than
70 per cent, of the average worker's energy. Furthermore, Bata
has solved the problem of monotony of work, so far as it is
solvable, by the great variety and number of new jobs that he
offers his workers. Phlegmatic individuals, who readily adapt
themselves to automatic work, do not try to change their occupation if their work does not seem too hard, or if they find their
wages satisfactory; and such people are more numerous tñan
is thought. As to those who have a liking for change, Bata is
quite ready to offer them a job to their taste.
The Medical Department has also concerned itself with the
fatigue caused by the journey to and from the factory. It has
secured the co-operation of transport undertakings with a view
to shortening a number of long, journeys. * The organisation of
special motor-bus services has not been easy, for whereas in the
morning trains and motor-buses pour out their torrents of workers
at the hour the factory starts work, departures in the evening
must be spaced out until after dinner and the first cinema
performance, which ends about 7 p.m. In spite of these arrangements, part of the staff still comes to work on foot, less for the
1
Bata has encouraged the creation of transport sen-ices for his staff, reserving
the right of intervening to regulate fares.

256

INDUSTRIAL RELATIONS

sake of economy than of necessity, many of them not being able
to reach their homes buried in the country otherwise than by
footpaths or lanes. Since being elected Mayor of Zlin, Bata has
given his full attention to the improvement of the roads, and as
soon as they are fit for it, motor-buses will carry his staff over
"them.
LIVING

CONDITIONS

The little village of Zlin, which ten years ago had less than
4,000 inhabitants, would certainly have been incapable of housing
and feeding the 13,000 persons whom Bata has attracted there,
if he himself had not taken a hand in the matter.
His achievements in this province, outside his factory, are the
natural complement of his internal organisation; they are characterised by the same concern for cost prices, the same methods,
and the same general considerations.
The Social Department
The Social Department is entrusted with the general administration of Bata's institutions. Like the other departments of
the factory, it is an autonomous organisation; it has its own
budget, and is subject to the same efficiency discipline. Its importance is steadily growing : Bata, who allowed it 4 Ya million
koruny in 1925, and 9 millions in 1926, increased his grant to
over 16 millions in 1927. It is housed in a special building at
the factory gates, and administers the following institutions :
A nursery, founded by Bata for his workers' children, but
also available to mothers who come to do their shopping in the
factory shops;
Two kindergartens, one open to all the children of the town;
Medical consulting rooms, installed in the selling agencies in
the town, supplemented by a pharmacy and instruction in child
welfare;
Popular soup kitchens, open from 15 November to 15 March,
so that the children of the neighbourhood who attend school at
Zlin need not return home in the snow at midday; at present
150 children are on the register.
In the course of the year the Social Department organises
entertainments for both adults and children. Its other duties
include the supervision of the administration of the two hostels,

THE BATA BOOT AND SHOE FACTORY

257

for youths and girls respectively, and of the workers' dwellings.
It also controls the quality of the meals served in the restaurant
and the management of the cinema, and organises all sporting
events. It advises mothers in their homes, teaches them hygiene
and housekeeping, and sees to the good behaviour of the staff.
Finally, it administers the birth bounty fund created by Bata
on the occasion of his fiftieth birthday. Since 1926 each of his
workers' children has become the owner at birth of a savings
deposit book, with an entry of 1,000 koruny, which is credited
with interest at 10 per cent, so long as the father or mother
works in the factory. Up to 1 August 1928, 787 children had
benefited by this scheme, and Bata had endowed it with nearly
a million koruny. The accumulation of interest should enable
the holder of a savings book to draw out the sum of 9,846 koruny
at 24 years of age if the conditions attaching to the gift are
complied with. 1
Housing
Up to 1925 Bata had contented himself with building a few
worker's houses and providing accommodation for his apprentices.
In 1926 he built his workers 200 dwellings arranged for four
families, with a separate entrance for each. Each dwelling has
an area of 56 square metres, and contains a kitchen, a lumber
room, a combined bathroom and washhouse, and a bedroom,
the whole being let at 15 koruny a week. In 1927 he added to
this nucleus 167 two-family houses. Each flat comprises a cellar,
a kitchen, a combined bathroom and washhouse, a living room,
and two bedrooms, and has its own central-heating system, the
inclusive rent being 25 koruny a week. In 1928 Bata built a
further 200 houses of the 1927 type.
1
The following are the conditions for the grant of a savings book :
The child's father or mother must have been employed in the factory for at
least á year before its birth. The sum of 1,000 koruny is entered in a savings book
issued by the factory savings bank in the child's name ; the book is non-transferable and may not be sold. Interest is at the rate of 10 per cent, and is added yearly
to the capital. The book is left in the charge of the father or mother so long as
he or she is employed in the undertaking. The capital and interest are paid to the
owner on the completion of his 24th year. If the owner marries before the age
•et 24 years, the capital may be paid as dowry, subject to the donor's consent.
If the child dies, the capital and interest are paid in to the welfare fund for children
of memben of the staff. If the father or mother is discharged from the undertaking, the savings book has to be returned to the savings bank of the undertaking,
with which it remains until the owner is 24 years old. The undertaking reserves
the right of paying the capital and interest at any time.

258

INDUSTRIAL RELATIONS

The Social Department can now house 1,800 girls in the enlarged hostel, 1,500 youths in the new building erected for them,
and 1,364 families and 3,222 unmarried persons in the workers'
houses, or more than 9,000 persons in all. The workers who
.wish to rent a dwelling register with the Housing Department,
and their wishes are met as vacancies occur, large families
naturally being given priority.
Bata hastened to build so as to benefit by the exemption from
taxation granted by the State in respect of new buildings till
the end of 1928. He considers that he has taken adequate steps
for the moment; his workers are in fact beginning to build for
themselves with their accumulated savings, and Bata willingly
helps them to set up house and settle down.
The rents that he asks represent strictly the payment for
the capital cost of the buildings ; they are calculated so as exactly
to cover interest and redemption charges on this sum.
Household Supplies
Bata's shops are intended to furnish his workers with all they
require, chiefly food and clothing, at cost price. They occupy
the ground floor of a standard building 200 metres from the
factory entrance. There are departments for underclothing,
piece goods, ironmongery, groceries, bicycles, meat, fruit, vegetables, etc. A large space has been set aside for the retail sale
of milk and its consumption on the premises. Bata has for
many years encouraged his workers to drink milk; on the contrary, neither beer nor any other alcoholic drink is to be found
in his shops.
In order to reduce his prices, Bafa has aimed at producing
everything possible himself. His farms supply him with milk,
butter, eggs, poultry, and part of his meat. What he lacks he
buys wholesale and sells at cost price plus transport and overhead charges. It would appear that in this way he has increased
his workers' purchasing power by one-tenth, one-fifth, or onefourth, according to the article, at the same time supplying them
with wholesome food and well chosen goods.
Bata also tries to make the stocks held by his shops a means
of influencing the expenditure of his staff. While he has not
banished relatively costly articles from his shop windows—fine
underclothing and furs are to be seen in them—he gives the most

THE.BATA BOOT AND SHOE FACTORY

259

prominent place to the articles he considers the most useful.
In particular he encourages the sale of motorcycles and light
cars, which, he considers, conduce to the good use of spare
time.
On the first and second floors of the same building is the
restaurant, which is divided into four large rooms furnished
with tables and benches. Bata has adopted the American "cafeteria" system, in which the customer himself fetches his food,
and brings back his table utensils when he has finished. In this
way 6,000 meals are served in an hour. Every day four different
menus are posted up. The midday meal usually costs 3 koruny
—50 heller for soup, 2 koruny for meat and vegetables, and
50 heller for pastry or coffee.
Utilisation of Spare Time
Every day the second floor of the restaurant is converted into
a cinema. The first performance is given at 5 o'clock and the
second at 7. The large hall, which can seat 2,000 persons, is
partitioned off in the middle. There are two screens, and the
film shown on one appears half an hour later on the other,
a single orchestra sufficing for both. The programme is changed
daily. The cost of admission is 50 heller.
In his cinema Bata has a powerful means of exerting a moral
and educative influence on his staff. In this respect he finds
the choice of films more effective than verbal recommendations
or articles in the factory magazine.
He offers his young workers a second means of employing
their spare time, namely, sport. All sports are in vogue at Zlin,
—running, jumping, boxing, and above all football. He has given
his players a magnificent field, and has done everything possible
to train them and to bring them into the front rank of Czechoslovak teams. Here, too, he has found a means of strengthening
the esprit de corps on which he relies to keep the psychological
unity of his undertaking intact.
Social Hygiene
Bata considers his worst enemies to be alcoholism and tuberculosis, the two scourges that decimate the local population.

260

INDUSTRIAL RELATIONS

In his fight against alcohol his only weapons have been to
prohibit its sale on his own premises, to discharge every drunkard
without mercy, and to encourage the sale of fruit, mineral waters,
and, above all, milk. Since he has been Mayor of Zlin his powers
have been wider, and consequently his campaign more effective.
He also wages active war against tuberculosis. The Medical
Department has been instructed to examine his workers thoroughly, and to track down every case of tuberculosis. Two
specialists have been engaged for this purpose, with the following
results :
In 1925 the proportion of the whole staff treated for tuberculosis was 1.30 per cent. The percentage rose to 2.5 in 1926,
and fell again to 1.53 in 1927. In 1928 the Medical Department
examined 1,423 workers chosen at random, 800 in the boot and
shoe workshops, 540 in the subsidiary manufactories, and 73
apprentices. Of the total, 73 per cent, were noted for a more
thorough examination; about one-fifth of these underwent a
technical examination, and 14 per cent, of this fifth were X-rayed.
Only 7 cases of tuberculosis of any kind were discovered, i.e.
0.49 per cent, of all workers. In the town, where deaths ascribed
to tuberculosis were at the rate of 5 per thousand in the first
decade of the century, the rate had fallen to 1 per thousand in
1927.
Cases of typhoid fever have always been relatively numerous
at Zlin, so Bata has been at pains to obtain drinking water for his
workers. He has had water brought to his factory from the
mountains, and has it bacteriologically examined every month.
His finest achievement in the domain of social hygiene has
been the foundation of a model hospital. This is composed of
a central building containing the operating theatres and the
administrative offices, and separate one-storey wards. It was
built in a year at a cost of 6 million koruny, and is already in
perfect working order. It is, however, still far from completion;
of the projected 15 buildings with 300 beds, only 6 buildings with
80 beds have so far been erected. Its completion will cost a
further 9 million koruny. Its medical staff, at present 5 physicians and surgeons, is to be increased to 20. The technical installation is highly remarkable. The wards are isolated, and the
operating theatres admirably lighted and equipped. Several
rooms have been fitted up for ultra-violet ray treatment. The
hospital administration is another interesting feature. By obliging the nurses to keep the accounts of each room Bata has been

THE BATA BOOT AND SHOE FACTORY

261

able to reduce the administrative staff to a single steward aided
by a clerk.
He does not look upon the hospital as a philanthropic work,
but rather, like his houses and his restaurant, as a department
that should pay its own way. In addition to his workers, whose
hospital expenditure is defrayed by the sickness insurance scheme,
Bata admits to the hospital sick persons from outside, who are
divided into three categories according to their means. As there
is no other hospital in the district, he is almost sure of seeing
his creation prosper.
CONCLUSION

In its essential principle, Bata's entire system can be reduced
to a policy of efficiency. The world production of shoes, <he says,
is only 900 million pairs per year, whereas there are 2,000
million human beings. If only two pairs a year are allowed
for each person, it will be seen how wide the margin is
between supplies and requirements. To provide mankind with
the shoes that it needs, it is not enough to increase production;
cost prices must be reduced; in other words, efficiency must be
increased. This is the end that Bata has set out to attain and
to which he has subordinated his entire organisation.
But in thus serving mankind at large Bata has, of course, no
intention of.sacrificing the interests of his undertaking; for the
need for shoes will not be met unless his undertaking prospers
and his selling prices can be lowered by the continuous expansion
of his mass production. In this respect the interests of his factory
appear to him to be one with those of the consumer. The
function of the manufacturer is to serve both by continually
improving his equipment and methods of work.
This notion of "service", which Bata invokes to justify his
industrial activities, he extends to his staff. To serve the undertaking and so help to satisfy a need of mankind should be the
intention of every one of his workers. But Bata does not believe
that such a frame of mind can be induced by moral suasion
alone, and it is in putting this view into practice that the originality of his scheme becomes manifest. By means of workshop
autonomy, the sharing of profits and losses, collective piece wages,
commissions and bonuses, he has set out to establish a real community of interests between his undertaking and each of his
workers. Without in any way decentralising the management,

262

INDUSTRIAL RELATIONS

he has so distributed responsibilities that the earnings of most
of his staff depend on the results of their work, or on that of
the team to which they belong or which they direct. The greater
the responsibility the closer the connection between earnings and
output. He has thus striven to make his workers, the arbiters
of their own fate and to make them feel that they have a personal
interest in the success of the undertaking.
Considered from this point of view, the Zlin factory appears
to be a network of small undertakings; but here again the system
does not entail for Bata the abdication of any part of his authority. He retains all managerial functions. It is he who, in the
full exercise of his sovereign powers, fixes the terms of the varying contracts that he concludes with each of his workers, and
the data for calculating the remuneration due to each. In this
matter Bata does not tolerate any trade-union interference or
any kind of collective negotiations. As head of the undertaking,
with his eyes riveted upon efficiency, it seems to him that his
obvious duty is to grant his staff the best conditions compatible
with the interests of the factory, for upon the improvement of
these conditions depend in a large measure the quantity and the
quality of his output.
From the standpoint of industrial relations, Bata's system is
thus characterised by the total absence from its mechanism of
bodies representative of the workers. Bata relies entirely on the
working methods that he himself has introduced to establish
automatically relations of peaceful collaboration between his
workers and himself.
It must not be overlooked that if Bata has been able, and
in some measure has been compelled, to extend his authority so
far as to influence the household economy and expenditure of
his staff, it is not solely for temperamental reasons; it is also
because, first, the labour on which he has had to draw for his
teams could not be readily adapted to his tempo of work or to
the entirely new conditions of life at Zlin except by strict discipline; and secondly, because the youth and the rural origin
of this staff made it easy for them to accept his authority.
Briefly, the working of the entire system as organised at Zlin
depends upon two psychological factors : the personality of the
chief and the special nature of the labour employed. It is these
factors that give Bata's system its strongly personal stamp and,
so to speak, its local colour. It is the work of a man who has

THE BATA BOOT AND SHOE FACTOEY

268

adapted it, with a perfect comprehension of hard facts, to a
given environment and at a specific stage in the evolution of
that environment. It would be impossible to predict a priori
what it would become in another's hands, or applied to another
environment, or at another time.
But, be this as it may, the particular form assumed by the
Bata system at Zlin does not seem to be inseparable from the
original principle underlying it, whose social consequences are
deserving of notice. This is the breaking up of the large undertaking into a multitude of small autonomous workshops; and the
endeavour to develop in the wage earner a real sense of being
an essential part of the undertaking, and to transform him, to
some extent and in proportion to the responsibilities he carries,
into a collaborator having a direct interest in production.