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TUC plans for industry

Section nine

AFTER the shattering defeat of the political wing of the labour Movement in the 1931 election, Citrine took steps to secure representation for the TUC General Council in the co ordinating body known as the National Joint Council, equal to that of the Labour Party National Executive and the Parliamentary Labour Party combined; and he affirmed the right of the General Council to "initiate and participate in any political matter which it deems to be of direct concern to its constituents." (As a result of the Bevin inspired reorganisation and redevelopment of the "Daily Herald", the TUC was already entitled to nominate four out of the nine directors of Labour's only national newspaper.)

Citrine also initiated and guided the General Council's Report on Trade Unions and the Control of Industry, which was presented to the 1932 Congress at Newcastle. This general report, and the succession of particular policy statements which in due course stemmed from it, did much of the spadework for any future Labour Government which might be looking for a blue print for socialisation or other forms of public control.

The report itself examined the various reasons for which it would be desirable to bring an industry or service under public control; the various methods by which such control could be exercised; and the alternative ways of compensating former shareholders.

At the 1932 Congress, the report was well received except for the section dealing with the representation of the trade unions on the controlling bodies or Boards of the socialised industries.

This section suggested "that members of such a Board should in all cases be appointed by the Government, and should consist neither of technical experts nor of representatives of particular interests, but of persons appointed solely for their ability to fill the position. Any of the persons appointed might be chosen from the business world, the Trade Union Movement, the financial world, public administration and so on, but not as representatives of such sectional interests".

A final decision was deferred until the Brighton Congress of 1933. Meanwhile, answers to a questionnaire circulated to affiliated trade unions showed a majority in favour of the trade unions having the right to nominate persons for appointment to the controlling Boards of socialised undertakings.

After discussion between a committee of the General Council and a committee of the Labour Party executive, a joint statement was drawn up for submission to Congress and to the Labour Party Conference.

The statement read in part:

• ". . . In the first place we think it desirable to point out the distinction between the various functions of management and control. A considerable part of the activities of industrial managements at present is concerned with the settlement of wages, hours, and all the other working conditions that most nearly affect the workers day by day. These matters are at present adjusted by negotiation between employers and Trade Unions. In our view, this method must continue to apply in the case of socialised undertakings. The adjustment of wages and working conditions must be undertaken by direct negotiations between the Trade Unions and the Managements of these concerns, and trade Union rights, including the right to strike, must be fully maintained.

• "Then there is the day to day administration of the concern. This is quickly becoming a profession, and the persons undertaking this work will have to be trained as business administrators.

• "Over and above the day to day administration there must necessarily be a Board of Management and Control, and this Board must consist of competent and suitable persons. Organised Labour claims for Trade Unions in the industry the right to nominate persons for appointment to such a Board. This claim of Organised Labour that it shall have its place in the control and direction of publicly owned industries is accepted.

• "It is agreed that in order to give effect to this object there shall be consultation between the responsible Minister and the Trade Unions concerned."

At the Brighton Congress of 1933, this joint statement was adopted.

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