EXPENSES.

In the absence of an agreement to the contrary, the expenses of arbitration proceedings and conciliation boards to be divided equally between the company and its employees.

Note. It is agreed that in order to keep procedure simple and inexpensive, counsel should not appear in these cases.

V.-NOTICE OF ADHESION TO THE SCHEME SIGNED BY REPRESENTATIVES OF THE ASSOCIATED SOCIETY OF LOCOMOTIVE ENGINEERS AND FIREMEN.

On behalf of the members of the Associated Society of Locomotive Engineers and Firemen, we accept the arrangements entered into to-day at the Board of Trade.

[Signed by the secretary and two members of the society.]

VI. NOTICE OF ADHESION TO THE SCHEME SIGNED BY REPRESENTATIVE OF THE GENERAL RAILWAY WORKERS' UNION.

On behalf of the members of the General Railway Workers' Union, I accept the arrangements agreed to to-day at the Board of Trade. [Signed by the general secretary of the union.]

CONCILIATION AND ARBITRATION SCHEME FOR THE SETTLEMENT OF QUESTIONS RELATING TO RATES OF WAGES AND HOURS OF LABOR BETWEEN THE CALEDONIAN RAILWAY CO. AND THEIR EMPLOYEES.

FORMATION OF CONCILIATION BOARDS.

1. Conciliation boards, consisting of representatives of the company and their employees, shall be formed to deal with questions referred to them, either by the company or by their employees, relating to the rates of wages and hours of labor of the grades of employees after mentioned which can not be mutually settled through the usual channels.

2. The conciliation boards shall be the following; that is to say

(1) A sectional conciliation board for each section, in which the various grades of employees shall be grouped as after mentioned.

(2) A central conciliation board.

3. For the purpose of the election of representatives of the employees to the sectional boards, the various grades of employees shall be grouped in seven sections, as specified in the first schedule hereto, and the territory served by the company shall be divided into four districts, as specified in that schedule. 4. The employees belonging to each such section employed in each district shall choose from among themselves two representatives for each district, and the eight representatives so chosen shall form the employees' side of each sectional board.

5. The employees' side of the central board shall consist of 14 representatives, of whom 2 shall be chosen by and from the employees' side of each sectional board. 6. The company's representatives on each sectional board and the central board shall not exceed in number the employees' representatives. 7. The term of office of a conciliation board shall be three years.

ELECTION OF EMPLOYEES' REPRESENTATIVES ON CONCILIATION BOARDS.

8. Employees under 20 years of age will not be eligible as representatives on any board, nor entitled to nominate candidates or to vote in any election. 9. The first election of representatives to form the employees' side of the sectional boards shall be conducted in a manner set out in the second schedule hereto. Subsequent elections shall be regulated by the central board.

FUNCTIONS OF CONCILIATION BOARDS.

10. The sectional boards shall deal with rates of wages and hours of labor exclusively affecting the grades of employees in the sections for which the respective sectional boards have been formed.

11. Before a sectional board can entertain any proposal for a change in the rates of wages or hours of labor of the grades of employees in the section, an application for such change must previously have been made in the usual course through the officers of the department concerned.

12. After any such application has been made by the employees they shall be informed as soon as practicable, and, in any case, within two months, of the company's decision with regard to the request or of the company's desire to refer the proposal to the appropriate sectional board. In the event of the company's decision not being accepted, or of no reply being received within the prescribed time, the employees may require the matter to be referred to the appropriate sectional board.

13. Where a sectional board fails to arrive at a settlement, the question shall be referred, on the motion of either side, to the central board.

14. Where the central board fails to arrive at a settlement, the question shall be referred, on the motion of either side, to arbitration.

15. Any proposal agreed to by a sectional board, or by the central board, involving an increase of rates of wages, shall be placed before the directors of the company for their acceptance at their next ordinary board meeting, or, if that meeting takes place within a week of the proposal, then at the next meeting but one, and, failing its acceptance by the directors, shall be referred as follows, that is to say

(1) A proposal agreed to by a sectional board and not accepted by the directors shall be referred to the central board; and

(2) A proposal agreed to by the central board and not accepted by the directors shall be referred to arbitration.

16. Any proposal agreed to by a sectional board or a central board involving a reduction of rates of wages shall be communicated to the employees, and if rejected by them within a month, shall be referred as follows, that is to say(1) A proposal agreed to by a sectional board and rejected by the employees shall be referred to the central board; and

(2) A proposal agreed to by the central board and rejected by the employees shall be referred to arbitration.

17. Except as otherwise herein provided, the decision of a sectional board or of the central board shall be final and binding on the parties, and no decision shall be reopened within 12 months.

PROCEDURE OF CONCILIATION BOARDS.

18. Each side of a conciliation board shall select its own chairman.

19. Secretaries for the sectional boards and the central boards shall be appointed by the central board. A single secretary may be appointed by agreement between the two sides of the central board, and the single secretary so appointed shall act for both sides of all the sectional boards and of the central board. Failing agreement each side of the central board shall appoint a separate secretary from among the salaried or wages employees of the company, and the separate secretaries so appointed shall act for the respective sides of such boards.

20. Each side of a conciliation board shall vote separately, and the vote of each side shall be determined by a majority of the side, or, in the event of equality, by the casting vote of the chairman of the side, and all decisions shall be arrived at by agreement between the two sides.

21. Casual vacancies in a conciliation board through death, resignation, or loss of qualification shall be filled by cooptation by the remaining members on the same side of the board.

MEETINGS OF CONCILIATION BOARDS.

22. Every board shall meet for business, as required, at the request of either side, but no board shall be required to meet for new business oftener than once in two months, except that where, in the case of the central board, this would involve an interval of more than one month after a sectional board fails to arrive at a settlement, the central board shall, at the request of either side, meet to deal with such business. A fortnight's notice shall be given of all meetings. No meeting shall be held in August or September, but where this would involve an interval of more than three months, a meeting shall, at the request of either side, be held in July.

23. All meetings of a concillation board shall be convened by the single secretary or by the separate secretary of either side, as the case may be. The agenda shall be circulated with the notices of meeting, and no question not on the agenda shall be brought up except with the consent of both sides.

APPOINTMENT AND POWERS OF ARBITRATORS.

24. Any reference to arbitration shall be to a single arbitrator, to be appointed by agreement between the two sides of the central board, or, in default of agreement, to be appointed only on the application of either side of the central board by the speaker of the House of Commons and the lord president of the court of session, or, in the unavoidable absence or inability of one of them to act, then by the remaining one.

25. Proceedings before the arbitrator shall be regulated by him, including the period during which the award shall be binding.

26. The decision of the arbitrator shall be binding on all parties.

AS TO COUNSEL AND LAW AGENTS.

27. In order to keep procedure simple and inexpensive, counsel or law agents shall not be entitled to appear or plead in any matter or question before any conciliation board, and counsel shall not be entitled to appear or plead in any arbitration proceedings.

EXPENSES OF CONCILIATION BOARDS AND ARBITRATION PROCEEDINGS.

28. In the absence of any agreement to the contrary, the expenses of conciliation boards and arbitration proceedings shall be borne and paid equally by the company and the employees.

INCLUSION OF OTHER GRADES OF EMPLOYEES.

29. If the employees belonging to any grade not included in any of the sections should desire hereafter to participate in this scheme, they may make application to the central board, which, if it thinks desirable, may either admit them to an existing sectional board, or form a new sectional board for such grade of employees.

DURATION OF SCHEME.

30. The present scheme shall be in force until 12 months after notice has been given by one side to the other to terminate it. No such notice shall be given within six years of the sealing of this scheme.

INTERPRETATION.

31. If any question should arise as to the interpretation of this scheme it shall be decided by the board of trade, or at the request of either party, by the lord president of the court of session.

METHOD OF ADJUSTING DISPUTES IN OTHER PUBLIC UTILITIES AND PRIVATE INDUSTRIES IN GREAT BRITAIN.

In other public utilities than the railway service, as well as in the entire range of industry, the development of the machinery for the settlement of trade disputes by boards of conciliation and arbitration_and_by joint committee has assumed great importance in Great Britain. After three years of discussion in Parliament and outside the act for the prevention and settlement of trade disputes, commonly known as the conciliation act of 1896, was passed. most important feature was the authorization of the Board of Trade as a standing agency of mediation, ready to act at the request of either party, or to offer its services when the public welfare seemed to demand such action. It will be noticed that the Board of Trade was given no powers of compulsion whatever, but the mere fact that

Its

a body of its weight and reputation had been told off for such a service tended to dignify the idea of conciliation, while the ease with which its services could be secured was a strong inducement to call upon it in cases of disagreement.1

CONCILIATION ACT OF 1896.

A summary statement or digest of the principal provisions of the conciliation act of 1896 are as follows: 2

DIGEST OF CONCILIATION ACT, 1896.

SCOPE OF LAW.

(a) Employers: Any class;

(b) Employees: Any class.

ADMINISTRATION.

(a) The Board of Trade;

(b) Conciliators or boards of conciliation, either appointed for the time or resort may be had to existing registered conciliation boards established for the various trades or industries;

(c) Arbitrators appointed on the application of both parties.

Acting under his general powers, the president of the Board of Trade has established (1908) a standing court of arbitration, made up from three panels— one of "persons of eminence and partiality," from which chairmen are taken; one from the " employer class," and one from "the class of workmen and tradeunionists." Technical assessors may also be appointed to assist, but without the right to vote.

A later addition (1911), brought about in the same general way, is the industrial council, to be made up of equal numbers of representatives of employers and of workmen, who serve for yearly terms, and whose chairman is known as chief industrial commissioner.

The acceptance of the services of these bodies is entirely voluntary, and they are intended to supplement and not to supersede prior methods.

MATTERS, COGNIZABLE.

Differences existing or apprehended between employers and workmen or between different classes of workmen.

JURISDICTION OBTAINED..

(a) For conciliation, by the request of either party; or the Board of Trade may act on its own motion;

(b) For arbitration, on the application of both parties.

PROCEDURE.

(a) Matters may be referred by the parties in interest to a conciliation board;

(b) The Board of Trade may offer its services, or act on the request of a party by appointing a conciliator, or of both parties by appointing an arbitrator or board of arbitration.

Agreement to arbitrate: No provision.

DUTIES AND POWERS OF CONCILIATORS.

To inquire into the causes and circumstances of the difference, and otherwise to endeavor to bring about a settlement, and to report their proceedings to the Board of Trade.

1 Conciliation and Arbitration in Great Britain. Bureau of Labor, p. 82.

2 For the full text of this act, see pp. 174 et seq.

Bulletin No. 98 (January, 1912).

No provision is made as to registered boards of conciliation, other than that, subject to agreements to the contrary, proceedings before such boards shall be in accordance with the regulations of the boards themselves. They must furnish to the Board of Trade such returns, reports, and proceedings, and other documents as the latter may reasonably require."

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DUTIES AND POWERS OF THE BOARD OF TRADE.

(a) To make inquiry as to causes and circumstances, or take such other steps as it may deem expedient to secure a conference with a view to the settlement of the dispute;

(b) To appoint conciliators on the request of one party, or arbitartors on application from both.

Where a settlement is reached, whether by conciliation or arbitration, a memorandum of its terms is to be drawn up, signed by the parties, and a copy filed with and preserved by the Board of Trade.

Awards: No provision.

Appeals: No provision.

Enforcement: No provision.

PERMANENT COURT OF ARBITRATION.

Since the passage of this act, two important additions have been made to the machinery which the Board of Trade was authorized to call into existence when occasion demanded:

The first was the provision in 1908 of the permanent court of arbitration. In providing for this the president of the Board of Trade expressly disclaimed any intention of curtailing or replacing any of the functions already performed under the conciliation act; the proposed court was to be an addition, not a substitution, and its creation was ascribed to the fact that the scale of the operations carried on by the Board of Trade "deserves, and indeed requires, the creation of some more formal and permanent machinery." Another reason given was the desire to test public sentiment in regard to arbitration; it seems to have been felt that the general attitude toward conciliation was already pretty well known.

The panels from which the members of the court were to be drawn were prepared at once, and the system was put in operation in 1909.1

INDUSTRIAL COUNCIL.

The second addition to the machinery provided by the Board of Trade was made during 1911 largely as an outcome of the industrial conflicts during the summer of that year. This new body was designated the "industrial council," and was composed of prominent representatives of employers and of workmen in equal numbers who were to serve one year. Regular meetings were to be held three times a year--in January, June, and November-and special meetings might be called at any time by the chairman, who was given the title of industrial commissioner. Sir George Askwith, comptroller general of the labor department of the Board of Trade, was selected for this office. At the first meeting it was decided that the proceedings in general should be considered private and that the members should not act as advocates but in a judicial capacity. It was agreed that the following classes of cases might be acted upon by the council:

(1) Cases which may be referred to the council, as an impartial body, for their opinion upon the facts only of the case, to be conveyed to the parties privately.

1 Ibid., p. 175.