§ Mr. ADAMSON (by Private Notice)asked the President of the Board of Trade whether he can make a statement as to the progress of the negotiations for a settlement of the miners' strike?
The PRESIDENT of the BOARD of TRADE (Sir Robert Home)I am very glad to be able to announce to the House 1941 that the Government has been able to make proposals to the Executive of the Miners' Federation which they have now, in their turn, felt themselves in a position to recommend to the miners throughout the country for acceptance. The acceptance or rejection of these proposals depends upon the decision of a ballot of the miners of the Kingdom, and, accordingly, I am very anxious, in telling the House briefly what those proposals are, that I should say no word at all of any sort or description which might by any chance affect any person's mind adversely to them in giving his vote.
I would ask the House to go back for a moment to the condition in which this matter was left as the result of the Debate which took place in the House on Tuesday of last week. At that time two very important speeches were made—a most persuasive speech by the right hon. Gentleman the Member for Abertillery (Mr. Brace), and a very powerful and impressive speech by my hon. Friend the Member for Ogmore (Mr. Hartshorn). Those two speeches undoubtedly have exercised a very great influence upon the discussion of the conditions upon which a settlement may be arrived at. They pointed out, in the clearest possible language, that the Miners' Federation were as fully convinced of the necessities of output in this country as were the Government, and that they realised that it was essential to obtain means at once to secure greater production of a commodity which is not only the life-blood of our own industry, but is also one of the most important commodities which we have to give in exchange for the goods which we bring from overseas. These principles have been recognised in this agreement. The proposals which we have made contain these sentences:
1. "Recognising that on the increased production of coal there depend, not only the prosperity of all who are engaged in the coal industry, but also the welfare of the nation and the cost of life of the people; and having in view that this urgent need can only he met if the miners and mine-owners throughout the country work together cordially for this common purpose; and, further, having regard to the necessity of setting up machinery for regulating wages in the Coal Trade so as to get rid of present anomalies and provide against future difficulties.The Mining Association and the Miners' Federation solemnly pledge themselves to make every effort to achieve these objects.1942 To that end they shall:—As the House recognises, that leaves an interval between the present time and such time as a more permanent scheme may be arrived at. The essential question for us to determine was how the wages were to be regulated in that interval.
- (a) Co-operate to the fullest extent to obtain increased output, and for this purpose will arrange to set up district committees and a national committee;
- (b) proceed forthwith to prepare a scheme for submission to the Government at the earliest possible moment, and not later than 31st March, 1921, for the regulation of wages in the industry, having regard, among other considerations, to the profits of the industry and to the principles upon which any surplus profits are to be dealt with."
There were two propositions which the Government laid down as essential, and which are embodied in our proposals. The first was that the country must obtain value for any increase in wages, and the second that any arrangements which were made should operate automatically in that intervening period, so that we should not again have the possibility of controversy under threat of a stoppage in the mines. The awkwardness and embarrassment that we found in the proposals of the right hon. Gentleman the Member for Abertillery (Mr. Brace) were that they suggested a revision at the end of the year, with no determining principles for that revision, and no possibility of saying how controversy could at that time be avoided. We desired, above all things, that we should be assured of a period of peace and harmony in this interval, so that the nation might set to work without the prospect of the uncertainty, and, indeed, the disaster, that might be caused by another threat of this kind.
The miners had, by a previous ballot, rejected the suggestion of what is known as the datum line. We had, therefore, to proceed upon some other plan. There was one other element that suggested itself. It was, indeed, the clement which is embodied in the considerations upon which a permanent settlement is to be based, to wit, that of profits. It was not possible to arrive now at a scheme for this temporary period which would base wages purely upon profits. But an alternative suggested itself. All our profits 1943 in the coal trade at the present time are made upon export coal. Home coal is sold only at what it costs to give it to the consumer. Accordingly, the method suggested itself of taking the proceeds of export coal as the guide upon which the rise in wages, or rather I should say the adjustment of wages, ought to be based during the provisional period. I am talking all the time of the temporary period which is to expire on 31st March at latest. Proceeds obviously to a large extent depend upon output, and they depend entirely upon output if the price remains the same. Accordingly, we had there a useful guide for fixing wages, with an assurance that upon that basis the country would get value for any increase in wages which might be given.
We decided, in the first place, if a basis of that kind could be discovered, to give the 2s. advance now, with the arrangement that it should automatically come off if the results to which the country was entitled were not achieved. That is the suggestion which had already occurred in the course of an interview between the Prime Minister and the Miners' Federation. I quoted the relevant passage to the House in the course of the last Debate, but it was made plain that at that time the miners were not prepared to accept an arrangement of that kind. However, we have now been able to arrive at an agreement that any advance given now should come off if the value which is attached to it is not realised.
The next thing to determine was the periods which you would take for your criteria for the purpose of fixing wages on the basis of proceeds. We took the last quarter, the September quarter, for our first criterion, and we had to find a period with which to compare it. It is perfectly obvious that after a strike of this kind the mines cannot be got to work all at once. Therefore, we had to allow for the dislocation which will be caused for a period—roughly, ten days or a fortnight—while the miners are getting the pits into order again, and we had to take a long enough period thereafter to make a sufficient test. After some discussion, we arrived at a period which embraces the five weeks from the middle of November to the end of the third week in December, and we have 1944 made the arrangement that the wage advance of 2s. shall continue at the end of that period if the proceeds of export coal during the period from the middle of November to the end of the third week of December, on a weekly average, exceed the weekly average of the proceeds of the September quarter by the amount, in effect, which is necessary to pay the wage. If the difference is not sufficient to pay the increased wage the scale comes down in this way. We recognise that what was achieved in the September quarter was a considerable improvement upon the proceeds of the quarter before, and that the weekly average of the September quarter should be regarded as sufficient to justify the increase of 1s. on the old wage.
Accordingly, if nothing more is produced than the September average the advance in the wage would be reduced to 1s. From that September average, justifying 1s., the scale is adjusted in steps—the figures of wages being related in each case to the figures of production; and, as I have pointed out, the wages are given in consideration of the value which is obtained. That, in short, expresses the basis of the agreement. Under this scheme wages increase by 6d. per shift as against a certain fixed amount of increased production to be obtained from the industry. I could not, in a short speech, explain the method by which the figures are arrived at, but the arrangement is that for every increase of £288,000 per week derived from the export trade an increase of 6d. per shift is given to the miner.
§ Mr. BOTTOMLEYIs all this to be on the ballot paper?
§ Sir R. HORNEThe proposals will be upon the ballot paper, I suppose. I admit the suggestion which my hon. Friend's question makes, that it is rather difficult for all these matters to be understood, but they will be set out in a form in which no doubt, after due study, people will understand exactly what is meant. I ought also to say that, just as the November and December figures will rule the wages for January, so the January figures will rule the wages for February, and the February figures will rule the wages for March.
But I wish to bring the House back to this definite consideration, that in 1945 each case the wage is only justified by the increased value which the nation receives. That is the essential point of the arrangement. I am reminded that perhaps I have not made it perfectly clear that if the values are not obtained which justify the 2s. which is now being granted, the 2s. comes off to the extent to which the value is not achieved.
§ The PRIME MINISTERAutomatically.
§ Sir R. HORNEYes, automatically. There is no room left for any controversy. It is an automatic scale which has been adjusted, and there is no room for discussion as to the form of settlement when the various periods arrive.
There are only three other points, which I need mention very briefly. It was said, and said, as we thought, with justice, that the Government are in a position to say how much coal shall be exported, and that therefore they might be able to take advantage of the situation adversely to the miners' interests. We readily agreed upon that head that we should regard the amount taken for home consumption as the average amount so required during the earlier part of the year, and that everything else should be regarded as coal sold for export at export prices.
§ Lord ROBERT CECILWhether it be sold or not?
§ Sir R. HORNEYes, whether it be sold or not. If the country's own internal needs require us to keep more coal than normally, it would be obviously unfair to make that a reason for reducing the miners' wages. Secondly, the miners felt unwilling to take the risk of the prices of coal in the near future. There are indications that there may be violent fluctuations in coal prices. Accordingly, the Government undertook to regard the coal as being sold at the same price as during the September quarter.
The third item is very important. The miners took objection that while they were being asked to give a guarantee by way of penalty for their production the owners on their part gave no such guarantee. I am sure the House will be glad to learn that when the matter was put to the coal owners they readily gave a similar guarantee. It took this form. At the present time, under the Coal Emergency 1946 Act the coal owners are entitled, in addition to the standard profits which they get, to 10 per cent. of any surplus profits realised by the coal trade. We asked them to agree that that 10 per cent. of surplus profits should be reduced upon the same scale as the miners wages if the proceeds necessary to justify the wage were not realised. At first they said that their position was different, because they were already entitled to that 10 per cent., whereas the miners were claiming something new. Ultimately, however, they readily agreed that this 10 per cent. to which they are now entitled should be treated in the same way as far as its adjustment is concerned as the miners increased wage of 2s. and should be reduced proportionately if their joint efforts did not succeed in giving the nation the amount of coal that the nation required in order to justify the increased wages. That, I think, is sufficient indication of a new spirit of harmony in the coal industry.
I should like to say this to the House, especially to anyone who looks critically at a settlement of this kind. I stated to the House in a previous Debate that we had no right to be influenced by the threat of a strike to the effect of giving concessions which we felt were not justified; but the corollary of that proposition is that you have no right, simply because of a strike, to refuse things that ought not to be refused. If the proposals which we have put forward, and are now to be submitted to the miners' ballot, are looked at in that spirit, they will prove to be entirely justified.
§ Mr. ACLANDIn congratulating the President of the Board of Trade on the result of the efforts everyone has made in the matter, may I ask him on what date the ballot papers will be issued, when they are returnable, and whether there is any chance of a resumption of work before the final result of the ballot is made known?
§ Sir R. HORNEI am afraid I cannot answer that question. That is a matter which is entirely in the hands of the Miners' Federation. I have no doubt they will do everything that is necessary in the quickest possible way.
§ Mr. G. TERRELLWill boys be allowed to vote on this question?