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The Trade Unions

CLARENCE S. DARROW

O one claims that all trade unionists are wise or even honest, much less that they have not made endless mistakes in the past and will not continue to err while time shall last. Neither is trade unionism an ideal institution. It was evolved to serve a purpose and to perform a duty in the upward march of the human race. It was made to fit a condition of society divided into the employing class and the serving class. Its mission is to protect the weak against the strong.

In the great industrial strife that has come down through the ages and which will prevail until the capitalist and the laborer are one, trade unionism has fought the battles of the workman. And in fighting for the wage-earner it has fought for greater liberty to man.

War and strife are not ideal states, but they have been ever present with the human race, and so long as the war of classes shall continue, the weak and helpless must ever look to trade unionism as its chief champion and its most powerful defender.

The British Building Guilds

An American Builder Discusses Their Theories and Experience in Applying Them

By ALEXANDER M. BING, in "Labor Age"

(Mr. Bing was a member of the Federal Housing Commission during the war and is associated with the firm of Bing & Bing, General Contractors.)

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OT every social philosopher nas an opportunity of putting his theories to the test by means of a large practical experiment. This has been the privilege of the Guild Socialists of Great Britain. Some years ago they expounded their doctrines in a series of books and pamphlets. An organization was formed to spread the gospel, and a magazine published. Finally there developed in England a combination of circumstances which made possible the practical application of these theories in one of the most important industries in the country.

Years of war had resulted in a European as well as in an American shortage of houses. A fairly widespread desire for better living had been developed for a considerable time even before the war, and in the warm glow of social enthusiasms which followed its successful conclusion it was generally felt that the world must never return to the unsocial conditions of the pre-war period. In the field of housing this passion for better things took definite form. The demand was made that the nation provide a proper home for the worker's family, especially for the family of the returned soldier.

Contracts in Thousands.

A survey of housing conditions was made and an enormous building project embarked upon. It was realized that high costs would make it impossible to rent the new houses at anything like pre-war prices, or, indeed, at a rental which the worker would be in a position to pay. The Government determined to take the loss. A small part was to be borne by the local communities, the greater part by the central Government. At least five hundred thousand houses, scattered all over the country, were to be built.

To carry out this huge project it was necessary that the local councils award thousands of contracts-some of them for the construction of a small number of houses, others involving the erection of hundreds. At the same time there occurred a general revival of the building industry, and a labor shortage was experienced which soon threatened the execution of the Government's program. This was caused in part by the building revival, in part by the fact that many building mechanics had drifted into other industries during the war and had not gone back to their old trade. But in large measure it was due to a phenomenon of world-wide occurrence-a marked labor inefficiency. Simultaneously with the scar

city of mechanics and their unwillingness to do a fair day's work there developed among the employers of England, as well as of America, an unprecedented amount of profiteering. The exposures of American investigating committees would undoubtedly have been duplicated in England had similar investigations been undertaken.

These circumstances gave their opportunity to the small band of enthusiasts who desired to further the development of the Guild movement. If the employers could not get mechanics to build nouses, and they were undoubtedly having great difficulty in doing so, the unions in the building industry demanded an opportunity of stepping into the breach. Inspired by the teaching of the Guildsmen, and especially by the magnetic personality of S. G. Hobson of Manchester, an active element in the Manchester Unions in the early spring of 1920 organized the Building Guild, Limited, of Manchester. Mr. Hobson, whose books on the Guild movement are too well known to need detailed reference, was chosen executive secretary, and has been the dominant influence in the Manchester group. At the same time Malcolm Sparkes, who, more than anyone else, had been responsible for the formation of the Building Council, also known as the Parliament of the British Building Industry, was urging the unions in and near London to organize in a similar way. This step was taken shortly thereafter, and recently these two organizations, operating along similar lines and influenced by similar ideals, were merged into a single national body.

The Guild Philosophy.

The Guild movement is founded on the belief that our industrial system is utterly inefficient and unfair. Not only must the present social order give place to a better one, but the change is imminent, the system is crumbling, and we may be called upon literally at any moment to reconstruct it. The Guildsmen believe that they are "entering upon one of the greatest tasks in history." They believe that they are not only preparing the workers for their, duties in the new order, but that they are actually setting up an organization by means of which the transition is to be peacefully and effectively made.

Their main point of attack on the present system is the autocratic management of industry and the institution of private profit. They are convinced that our industrial life can be more successfully and more efficient

ly organized on a democratic basis. They condemn private profit as the motivating force, and believe it to be the main cause of waste and of the prevailing low state of commercial morality. For the sordid and inadequate motive of profit they would substitute the desire of service to the community. As a corollary, the public should know what a service is costing.

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"A Guild is a self-governing democracy of organized public service. * It boldly challenges the industrial traditions of a century and makes its appeal solely to the best instincts and creative impulses of men. * * * It stands on a different plane from all other industrial systems, whether controlled by the state, by municipalities or by consumers. They are organizations of rights. Guilds are organizations of duties."

"The Guildsmen seek the abolition of the existing wage contract, which is based upon the commodity valuation of labor and therefore excludes the social value inherent in human effort." They believe that "the time is ripe for labor to consider whether the necessary and socially justifiable resistance to wage reductions cannot be related to the constructive proposals classed under the general heading of industrial control."

The importance of proper organization has been fully realized and after the recent consolidation of the London and Manchester groups a committee was appointed to prepare a new constitution. Their report has not yet been accepted and a summary will therefore be given of the London "rules."

To comply with legal forms, shares of stock are issued. These shares do not carry with them any private ownership of any part of the corporation. The stockholders are representatives elected, one each, by unions affiliated with the London District Council of the National Federation of Building Trade Operatives or by recognized groups of workers, technical or otherwise, in the building industry. Each representative may hold one share of stock, and the entire body of stockholders constitutes the board of directors. This board has the right to give representation to any group interested in the building industry-architects, clerks, managers or unions of workers not affiliated with the National Federation, such as the electricians who were recently recognized.

Elections of representatives and of chairman and vice-chairman are for one year only, with the right of recall. The secretary, managers and other employes are appointed by the board and are removable at any time. The board has unlimited power to fix the salaries of directors, officers or managers. It is expressly provided that no dividends are to be declared on stock and that the surplus shall be used for plant extensions, to create a reserve fund, or for education and research.

In addition to the parent body there are also Guild committees formed by numerous union locals. These may be united into

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regional councils of not less than ten committees. Local committees have power to enter into small contracts, regional councils into contracts for any amount with the approval of the larger body. The central organization is responsible for policy and propaganda, and provides an administration for buying and management which can be used by local committees in case they wish to avail themselves of the superior advantages which larger buying power and greater size will bring. But it is the Guild Committee which actually carries out the contracts. "It must by its own methods choose its general and departmental foreman and apply to the best advantage the funds under its control." It employs the mechanics and does the construction work, but these functions are all exercised by it as a subsidiary part of the parent body. It will be readily seen that this division of power between the local committees, the regional council, and the central organization creates a situation which may give rise to serious embarrassment. The administration of a large business is greatly complicated by such a separation of functions, and this feature of Guild organization is likely to become a source of much future trouble.

Guilds Plus Unions.

On the other hand, an element of strength lies in the close connection between the

Guilds and the unions. This is most important in relation to the management of the Guilds and the election of officers. The board of directors is chosen by the larger body of trade unionists. Foremen likewise are chosen by all the members of a craft rather than by the mechanics on a particular job. In this manner a difficulty is avoided which has often been a stumbling block in the path of producers' co-operatives or self-governing workshops. If the group of workers engaged in a particular task have in their own hands the election of officers and the management of the enterprise the danger is very great that elections will be influenced by selfish considerations and that jealousy of officials and internal controversies will lessen if they do not absolutely destroy morale and efficiency. If, however, the direction of affairs is determined by the entire union this danger is very much reduced. Of course, it is not entirely removed, and even in the short time of the Guilds' existence they have not altogether been free from quarrels of this kind. But no serious trouble has yet arisen from jealousy between factions.

The first Guild contract was awarded to the local committee for Bedwelly, South Wales. This was soon followed in October, 1920, by contracts for Tredegar and Manchester. The form of contract is interesting. The Guild had practically no capital and could point to no finished work as proof of its ability successfully to execute a contract. But the unions of the Manchester district were behind it, and the Wholesale Co-operative Society, whose executive officers were located in Manchester, came to its support. The Co-operative rendered assistance in two ways: it became a party to the contract and agreed with the Government to supply all necessary materials, and its insurance society issued a bond guaranteeing the fulfillment of the obligation.

The contract was for cost plus, that is to say, the Government agreed to pay the actual cost of labor and materials. The Guilds, in competition with other builders, submitted their estimates of what this cost ought to be. To pay overhead expenses and the upkeep of plant they were to receive 6 per cent of cost up to this estimated amount. They were also to receive the additional sum of £40 per house.

Continuous Pay.

It will be remembered that one of the Guild principles is the substitution of social value for commodity value in paying for the services of labor. In order to go as far toward carrying out this principle as they deemed possible at the present time the Guilds have introduced the feature of continuous pay. That is to say, if a mechanic commences work on a particular job he is guaranteed continuous pay until its completion, irrespective of bad weather or shortage of materials. He is also paid for holidays and receives one week's vacation with pay

each year. This, it is estimated, is equiva lent to an increase of pay of 11 per cent, and the £40 per house, provided for in the contract, is intended to cover this extra cost. In addition to the cost-plus the Guilds are also offering a "maximum sum contract." This involves a guarantee that an "up-set" price will not be exceeded. If savings are made the Guild receives a percentage (not less than 10 nor more than 50 per cent). One-half of the sum so earned is placed in a contingency fund, maintained by the central body, one-half goes to the Guild Committee or Regional Council. In this way the Guildsmen have sought to meet the objections which are frequently urged against "cost-plus" and still avoid the "lump sum" contract.

Up to July, 1921, the Manchester Guild had received ten contracts from public authorities involving the construction of about one thousand houses. They were also engaged on thirty small contracts from private owners. The London Guild has been awarded a very large contract for four hundred houses at Walthamstow, London, together with several smaller ones. Work is progressing on all of these projects, and some of the houses have at this writing (July, 1921) been finished, but no housing contract has been completely executed.

The interesting question, of course, is: Have these newly organized and democratically controlled bodies been able properly to manage the operations on which they were engaged? Have the men responded to the new appeal and worked with a better will for their organization than they have been willing to do for private contractors? Under the present system a workman's efficiency is secured by fear of discharge. The Guilds have almost reversed this process. They are seeking to eliminate this fear entirely by providing continuous pay. Το be sure, they have retained the right to dismiss for cause, but they have made the exercise of this right much more difficult. And competition among men in order that the most efficient and industrious may be retained while the less able or willing are laid off has been entirely abolished.

A Better Day's Work.

How have the men responded to the new conditions? During the past summer I visited Walthamstow and a number of Guild operations in Manchester., At the same time I inspected many other buildings in the same localities in the course of construction by private employers. On all of the Guild contracts the men were doing a substantially better day's work than on all but one of the operations of private builders. Most of the workmen spoken to were class conscious socialists. They stated that they felt this to be their opportunity to get away from the profits of the private contractor. They spoke of the advantages of working under a foreman of their own selection and of the benefits of continuous pay. They ad

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