MASSACHUSETTS LABOR BULLETIN.

No. 30.

MARCH.

NATIONAL TRADES ASSOCIATIONS.

1904.

The tendency of contemporaneous practice in the direction of concentration of action through organization, in the adjustment of differences between employer and employee, is exemplified in the numerous comparatively recent movements among establishments in various lines of manufacture, looking to the formation of associations having the power to act in the interest of individual members, with the assurance of the support of all of their constituents.

The underlying sentiment which actuates the members of these organizations is that the union movement among the working classes needs to be met by "powerful, well-disciplined, and broad-minded organizations of employers." *

The literature of most of these organizations is temperate and conservative in discussing the labor situation of to-day; the right of workingmen to organize, and even the desirability of such action, is admitted.

They recognize the evolution of the workman from the position where he labored alongside his employer and could at any time express his dissatisfaction with the order of things, if any were felt, to his position of to-day, when, in the service of corporations and great combinations of production, his chances for obtaining a hearing and securing redress for his grievances are becoming more and more uncertain.t

The workingman's efforts to better his condition by emulating his employer in combining with his fellows for mutual benefit and protection are not condemned. From the employers' side, however, it is claimed that the immediate result of this combination has taught the workman the force of organized action, and that the acquisition of power by a class hitherto totally unused to it, combined in some cases with misguided leadership, ‡ may have led to many excesses and abuses, which could only be averted by the organizing of employers.

*The National Metal Trades Association: What It Is, p. 19.
†The Employment Bureau. J. C. Hobart, p. 4.

Ibid., p. 4.

The transition of labor movements from local organization to national combination has been paralleled by the experience of these trades associations; and no greater tribute to the successful organization of the working classes can be paid than by the admission, in an address by one of the best thinkers among employers of labor (Mr. J. C. Hobart, of the Triumph Electric Company, Cincinnati, Ohio), that organized labor is "probably the most perfect organization known." He urges that employers are poorly equipped at the outset if their organization is inferior to that of the labor element," and he insists that the former "must form strong locals in each trade, unite into national organizations, and affiliate those nationals into the American Federation of Employers," * precisely along the lines blazed by the labor organizations.

Mr. Frederick P. Bagley, in an address before the National Conference on Industrial Conciliation, under the auspices of the National Civic Federation, at Chicago, December 17 and 18, 1900, said: "The rapacity and cupidity of employers have forced labor to organize to protect the individual. The extreme action of organized labor has made necessary organization of employers. . . in order that the rights of the individual manufacturer may be preserved;"† and he claims that as a result of these movements"there is a mutual regard for each other's rights, born of a respect for the power that each knows lies latent in the other's organization." This is confirmed in the case of one of the first manufacturers' national associations formed, the organization of the men and the organization of employers having modified each other and prevented extremes on either side. The same speaker said that: "Each requires the other to maintain an equilibrium. No one class can be trusted to represent the interests and lawful rights of another . . . because it could not comprehend its wants, desires, and aspirations."

Mr. Bagley also said that: "In industrial adjustments the necessity for organizations of employers is already felt by labor leaders as well as by advanced employers themselves;" and his prediction that "the next great change in the evolution in the relationship of labor to capital will be the organization of employers, not for aggression, but to modify and co-operate with organizations of labor," seems to be in the way of fulfilment, when compared with the official declarations of many of the recently organized manufacturing inter

element, as indicated in the foregoing explanations of the aims and nature of these associations.

The first organization of this nature was the Stove Founders' National Defense Association, originated in 1886, with a membership of perhaps 40 out of a possible 225 stove manufacturers, and which has successfully maintained industrial peace through arbitration since its formation. The arbitration committee consists of three employers and three workmen. The membership of this association has increased since its formation, and the defense fund is now so large that the admission of establishments to membership is at a very high cost to themselves, as they are required to pay into the defense or reserve fund in proportion to the amount previously paid in.

The organization of the National Founders' Association in New York January 26, 1898, followed, and this body is strongly active at the present time. The headquarters were subsequently removed to Detroit, Michigan, where they are located at the present time. The membership embraces 495 establishments, and, in addition, 42 branches located away from the main offices. The word "member," as used herein, covers the membership of a firm or corporation composed of one or more persons.

For purposes of administration, the territory covered by this Association is divided into eight districts, each of which has a District Committee, which elects its own chairman and vice-chairman; and these officers from all the districts, together with the president, vicepresident, and treasurer of the Association, constitute the Administration Council.

The districts are as follows:

1. The New England States.

2. New York and New Jersey.

3. Pennsylvania, Delaware, Maryland, and Dis. trict of Columbia.

4. Michigan, Ohio, Kentucky, and Tennessee. 5. Indiana, Illinois, Missouri, Kansas, Colorado, New Mexico, Utah, Arizona, Nevada, and California.

6. Wisconsin, Minnesota, Iowa, North Dakota, South Dakota, Nebraska, Montana, Wyoming, Idaho, Washington, and Oregon.

7. Provinces of Ontario and Quebec in the Dominion of Canada.

8. Virginia, West Virginia, North and South Carolina, Georgia, Florida, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, and Texas.

On August 21, 1899, the National Metal Trades Association was formed, with headquarters in New York. Later they removed to Cincinnati and opened for business June 9, 1902. An extended notice of this organization is given, because it probably exhibits more generally the latest phases of the new movement among employers than any other association formed for similar purposes. The two organizations previously mentioned served as a guide for the formation of this one, in fact, it was projected by manufacturers who were members of the National Founders' Association, and who wished to extend the influence and methods of the latter to additional departments of their business where were employed artisans other than foundrymen.

The membership of the National Metal Trades Association embraces at the present time over 320 corporations and firms, employing any of the following classes of mechanics: Machinists, blacksmiths, boilermakers, pattern makers and other metal working craftsmen, not including molders, who are under the jurisdiction of the National Founders' Association.

Local organizations of similar interest in the metal manufacturing world have been formed from time to time, principally under the stimulus of the machinists' strike, beginning May 20, 1901. These locals gradually gained in strength by confederation with new concerns. After the institution of the national organization, the larger establishments generally affiliated with it, while the smaller ones usually joined the local group. At present, however, the tendency to the direct joining of the national organization is becoming more and more pronounced among these smaller unions. Sixteen new members of the national body have joined from Massachusetts since the middle of September, 1903, and the State is represented in the administrative council by Mr. M. H. Barker, of the American Tool and Machine Company of Hyde Park.

The National Metal Trades Association is the wealthiest organization and its defense fund the largest in the world. The membership of the national organization is augmenting rapidly, the records of the annual meeting held April 1, 1903, showing an increase in membership of 52 per cent during the preceding fiscal year, while the subsequent gain to September 1 was 48 per cent. The association is officered by a president, first and second vice-presidents, secretary, treasurer, commissioner, and deputy commissioner, and has in addition a board of councillors, consisting of eight active members and one honorary member, the latter, from his early connection with movements along these lines, being called the father of trades associations.*

The commissioner, under the authority of the councillors, has charge of the business affairs of the Association, and solicitors or traveling agents are employed, whose business it is to explain the system of the Association, encourage the establishment of local employers' unions, and distribute the literature of the Association.

The Association, among its other publications, issues once a month a bulletin containing strike reports and papers bearing upon the labor situation. In the pamphlet containing its constitution and by-laws is a declaration of the principles of the Association, which are as follows:

We, the Members of the National Metal Trades Association, declare the following to be our principles, which shall govern us in our relations with our employees:

1. Since we, as employers, are responsible for the work turned out by our workmen, we must, therefore, have full discretion to designate the men we consider competent to perform the work and to determine the conditions under which that work shall be prosecuted, the question of the competency of the men being determined solely by us. While disavowing any intention to interfere with the proper functions of labor organizations, we will not admit of any interference with the management of our business.

*The National Metal Trades Association: What It Is, pp. 2 and 3.

2. Disapproving absolutely of strikes and lockouts, the members of this Association will not arbitrate any question with men on strike. Neither will this Association countenance a lockout on any arbitrable question unless arbitration has failed.

3. Employment. No discrimination will be made against any man because of his membership in any society or organization. Every workman who elects to work in a shop will be required to work peaceably and harmoniously with all his fellow-employees.

4. Apprentices, Helpers, and Handymen. - The number of apprentices, helpers, and handymen to be employed will be determined solely by the employer.

5. Methods and Wages. - Employers shall be free to employ their work-people at wages mutually satisfactory. We will not permit employees to place any restriction on the management, methods, or production of our shops, and will require a fair day's work for a fair day's pay. Employees will be paid by the hourly rate, by premium system, piece work, or contract, as the employers may elect.

6. It is the privilege of the employee to leave our employ whenever he sees fit and it is the privilege of the employer to discharge any workman when he sees fit.

7. The above principles being absolutely essential to the successful conduct of our business, they are not subject to arbitration.

In case of disagreement concerning matters not covered by the foregoing declaration, we advise our members to meet their employees, either individually or collectively, and endeavor to adjust the difficulty on a fair and equitable basis. In case of inability to reach a satisfactory adjustment, we advise that they submit the question to arbitration by a board composed of six persons, three to be chosen by the employer and three to be chosen by the employee or employees. In order to receive the benefits of arbitration, the employee or employees must continue in the service and under the orders of the employer pending a decision.

In case any member refuse to comply with this recommendation he shall be denied the support of this Association unless it shall approve the action of said member.

8. Hours and Wages. - Hours and wages, being governed by local conditions, shall be arranged by local Associations in each district.

In the operation of piece work, premium plan, or contract system now in force or to be extended or established in the future, this Association will not countenance any conditions of wages which are not just, or which will not allow a workman of average efficiency to earn at least a fair wage.

The November (1903) number of the Association's Bulletin contains upon the inside of the back cover a full statement of the position of the Association upon the labor question, as follows:

1. We recognize that the interests of both employer and employee should be properly protected, and that these interests must at all times rest on the fact that employer and employee are equally interested in the results of the work in which they are engaged.

2. We recognize that any restriction of the enterprise of the employer or the energy of the employees, resulting in the depreciation of the quality or quantity of product, is detrimental to the mutual interests of both.

3. We recognize the justice of the recommendation made by the Coal Strike Commission appointed by President Roosevelt, "That no person shall be refused employment, or in any way discriminated against, on account of membership or non-membership in any labor organization; and that there shall be no discrimination against, or interference with, any employee who is not a member of any labor organization by members of such organization."

4. We recognize that there should be no restriction to the opportunities that may be offered to deserving boys to acquire a trade, and that employers and employees should join in their efforts to instruct such apprentices, provided they be employed under written contracts for a specific time of service.

5. We recognize that sympathetic strikes, lockouts, and boycotts are relics of barbarism, because they result in no permanent benefit to either side of the contest, and inflict unjust and unfair injury on the public, who depend on our joint efforts for their comfort and welfare.

6. We recognize that as the realization of mutual benefits, represented in profits and earnings from our joint labors, depends largely on the employer finding a suitable market for the product, he can best determine the methods of work, the selection of employees, and the character of work to be performed by each.

Recognizing these national principles, we agree that, should any other cause of difference arise between us and our workmen, which can not be settled by conference with each other, such matter shall be submitted to a Board of Arbitration composed of an equal number of such representatives as each may select, whose decision shall be binding on both, and pending said arbitration there shall be no strike or lockout.