The fundamental weakness of collective bargaining is that while it provides machinery for adjustment of grievances, while it looks forward to all the conceivable emergencies which may arise to cause disagreement between labor and capital, and seeks methods to meet these, it does not give labor a direct share in industrial control. In the collective bargain wages and the conditions of employment are usually determined by the relative bargaining strength of the workers and employers of the industrial group. Not bargaining in any form, not negotiation, is the key to industrial peace and prosperity; the collective contract must in time go the way of the individual contract. Community is the key-word for all relations of the new state. Labor unions have long been seeking their “rights,” have looked on the differences between capital and labor as a fight, and have sought an advantageous position from which to carry on the fight: this attitude has influenced their whole internal organization. They quite as much as capital must recognize that this attitude must be given up. If we want harmony between labor and capital, we must make labor and capital into one group: we must have an integration of interests and motives, of standards and ideals of justice.
It is a mistake to think that social progress is to depend upon anything happening to the working people: some say that they are to be given more material goods and all will be well; some think they are to be given more “education” and the world will be saved. It is equally a mistake to think that what we need is the conversion to “unselfishness” of the capitalist class. Those who advocate profit-sharing are not helping us. The quarrel between capital and labor can never be settled on material grounds. The crux of that quarrel is not profits and wages—it is the joint control of industry.
There has been an increasing tendency of recent years for employers to take their employees into their councils. This ranges from mere “advisory” boards, which are consulted chiefly concerning grievances, through the joint committees for safety, health, standardization, wages etc., to real share in the management.45 But even in the lowest form of this new kind of cooperation we may notice two points: the advisory boards are usually representative bodies elected by the employees, and they are consulted as a whole, not individually. The flaw in these advisory boards is not so much, as is often thought, because the management still keeps all the power in its own hands, as that the company officials do not sit with these boards in joint consultation. There is, however, much variety of method. In some shops advisory committees meet with the company officials. Some companies put many more important questions concerning conditions of employment before these bodies than other companies would think practical. A few employers have even given up the right to discharge—dismissal must be decided by fellow-employees.
Usually the management keeps the final power in its own hands. This is not so, however, in the case of Wm. Filene Son’s Co., Boston, which has gone further than any other plant in co-management. Here the employees have the right by a two-thirds vote to change, initiate, or amend any rule that affects the discipline or working conditions of the employees of the store, and such vote becomes at once operative even against the veto of the management. Further, out of eleven members of the board of directors, four are representatives of the employees.46
The great advantage of company officials and workers acting together on boards or committees (workshop committees, discipline boards, advisory councils, boards of directors, etc.) is the same as that of the regular joint conferences of the Trade Agreement: employers and employed can thus learn to function together and prepare the way for joint control. Workshop committees should be encouraged, not so much because they remove grievances etc., as because in the joint workshop committee, managers and workers are learning to act together. Industrial democracy is a process, a growth. The joint control of industry may be established by some fiat, but it will not be the genuine thing until the process of joint control is learned. To be sure, the workshop committees which are independent of the management are often considered the best for the workers because they can thus keep themselves free to maintain and fight for their own particular interests, but this is exactly, I think, what should be avoided.
The labor question is—Is the war between capital and labor to be terminated by fight and conquest or by learning how to function together? I face fully the fact that many supporters of labor believe in what they call the “frank” recognition that the interests of capital and labor are “antagonistic.” I believe that the end of the wars of nations and of the war between labor and capital will come in exactly the same way: by making the nations into one group, by making capital and labor into one group. Then we shall learn to distinguish between true and apparent interests, or rather, between long-run and immediate interests; then we shall give up the notion of “antagonisms,” which belong to a static world, and see only difference—that is, that which is capable of integration. This is not an idealistic treatment of the labor problem. Increase of wages and reduction in cost of production were once considered an irreconcilable antagonism—now their concurrence is a matter of common experience. If the hope of that concurrence had been abandoned as visionary or idealistic, we should be sadly off today. Many people are now making a distinction, however, between production and distribution in this respect: in the former the interests of capital and labor are the same, it is said, but not in the latter. When that reorganization of the business world, which it is no longer utopian to think of, is
