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 ARBITRATION

AND

CONCILIATION

the successful working of permanent boards of conciliation, consisting of equal numbers of employers and employed, with an umpire in case oft deadlock, is the difficulty of inducing business men whose time is fully occupied to devote the necessary time to the work of the boards, especially when either side has it in its power to compel recourse to the umpire, and so render the work of the conciliation board fruitless. In spite of all these difficulties the practice of arranging differences by conciliation and arbitration is undoubtedly spreading, and it is to be remembered that even in cases in which theoretically a basis for arbitration can scarcely be said to exist, recourse to that method may often serve a useful purpose in putting an end to a deadlock of which both parties are tired, though neither cares to own itself beaten. Colonial Reference must now be made to some of the and foreign principal laws relating to arbitration and conlegisiation. ciliation outside the United Kingdom. New Zealand.—The New Zealand Industrial Conciliation and Arbitration Act, 1894 (amended in detail by several subsequent Acts), provides for the incorporation of associations of employers or workmen under the title of industrial unions, and for the creation in each district of a joint conciliation board, elected by these industrial unions, with an impartial chairman elected by the board, to which a dispute may be referred by any party, a strike or lock-out being thenceforth illegal. If the recommendation of the conciliation board is not accepted by either party, the matter goes to a court of arbitration consisting of two persons representing employers and workmen respectively, and a judge of the supreme court. The award of this court is enforceable by legal process, financial penalties up to <£500 being recoverable from defaulting associations or individuals. If the property of an association is insufficient to pay the penalty, its members are individually liable up to <£10 each. During the year 1899-1900 thirty-four cases were considered by the conciliation boards, and twenty were sent to the arbitration court. In addition, nine cases of breach of award or agreement were dealt with. The above is only an outline of the principal provisions of this interesting Act, under which questions of wages, hours, and the relations of employers and workmen generally in New Zealand are now practically.the subject of state regulation. Whatever may be the result of the Act when its indirect effects have had time to develop, it is clear that it goes far beyond the mere settlement of strikes, and is more properly to be judged as a measure for the state regulation of industry. New South Wales}—In New South Wales a “ Conciliation and Arbitration Act” was passed in 1899, resembling the United Kingdom Act in the general character of its provisions, except that an arbitrator or investigator appointed by Government is invested with compulsory powers of summoning witnesses, entering premises, and examining on oath. Canada.—In 1900 a Conciliation Act was passed by the Dominion Parliament resembling the United Kingdom Act in most of its features. France.—The French Conciliation and Arbitration Law of December 1892 provides that either party to a labour dispute may apply to the juge de pair, of the canton, who informs the other party of the application. If they concur within three days, a joint committee of conciliation is formed of not more than five representatives of each party, which meets in the presence of the juge de paix, who, however, has no vote. If no agreement results the parties are invited to appoint arbitrators. If such arbitrators

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are appointed and cannot agree on an umpire, the president of the civil tribunal appoints an umpire. In the case of an actual strike, in the absence of an application from either party it is the duty of the juge de paix to invite the parties to proceed to conciliation or arbitration. The results of the action of the juge de paix and of the conciliation committee are placarded by the mayors of the communes affected. The law leaves the parties entirely free to accept or reject the services of the juge de paix. During the seven years 1893-99 the Act was put in force in 778 cases—viz., 425 on application of workmen, 23 of employers, 18 of both sides, and 312 without application. Altogether, 204 disputes were settled—88 per cent, by conciliation and 12 per cent, by arbitration. Germany.—In several Continental countries, courts or boards are established by law to settle cases arising out of existing labour contracts—e.g., the French “ Conseils des Prud’hommes” the Italian “ Probi Viri,” and the German “ Gewerbegerichten,”—and some of the questions which come before these bodies are such as might be dealt with in England by voluntary boards or joint committees. The majority, however, are disputes between individuals as to wages due, &c., which would be determined in the United Kingdom by a court of summary jurisdiction. It is noteworthy, however, that the German industrial courts (Gewerbegerichten) are empowered under certain conditions to offer their services to mediate between the parties to an ordinary labour dispute. In the case of a strike or lockout the court must intervene on application of both parties, and may do so of its own initiative or on the invitation of one side. Failing a settlement at a conference between the parties in the presence of the president and assessors of the court, the court arrives at a decision on the merits of the dispute which is communicated to the parties, who are allowed a certain time within which to notify their acceptance or rejection. The court has no power to compel the attendance of the parties or the observance of its decision. During 1896 there were 44 applications for the intervention of the Industrial Courts. Eighteen agreements were brought about and 11 decisions were pronounced by the courts, of which 2 were accepted by both parties and 9 were rejected. In 8 cases the courts made unsuccessful attempts to promote settlements without pronouncing decisions. The above figures are taken from a statement prepared for the Reichstag commission for considering petitions (1897-98). Switzerland.—The canton of Geneva enacted a law in 1900 providing for the settlement by negotiation, conciliation, or arbitration of the general terms of employment in a trade, subject, however, to special arrangements between employers and workmen in particular cases. The negotiations are to take place between delegates chosen by the associations of employers and employed, or failing them, by meetings summoned by the Council of State on sufficient applications. Failing settlement, the Council of State, on application from either party, is to appoint one or more conciliators from its members, and if this fail the central committee of the “ Prud’hommes,” together with the delegates of employers and workmen, is to form a board of arbitration, whose decision is binding. Any collective suspension of work is illegal during the period covered by the award or agreement. United States.—In the United States several States have legislated on the subject of conciliation and arbitration, among the first of such Acts being the “ Wallace ” Act of 1883, in Pennsylvania, which, however, was almost inoperative. Altogether, 24 States have made constitutional or statutory provision for mediation in trade disputes, of 1 Since this article was written a compulsory Arbitration Law has which 17 contemplate the formation of permanent State been passed in New South Wales (December 1901). boards. The only State laws which require notice are