MINISTRY OF RECONSTRUCTION. 
 
 2nd, 3RD, 4th and 5th INTERIM REPORTS 
 
 OF THE 
 
 CIVIL WAR WORKERS COMMITTEE. 
 
 Presented to Parliament by Command of His Majesty. 
 
 LONDON: 
 
 PUBLISHED BY HIS MAJESTY’S STATIONERY OFFICE. 
 
 To be purchased through any Bookseller or directly from 
 H.M. STATIONERY OFFICE at the following addresses: 
 
 Imperial House, Kingsway, London, W.C.2, and 28, Abingdon Street, London, S.W.l; 
 87, Peter Street, Manchester; 1, St. Andrew’s Crescent, Cardiff; 
 
 23, Forth Street, Edinburgh; 
 or from E. PONSONBY, Ltd., 116, Grafton Street, Dublin. 
 
 [Cd. 9192.] Price 3 d. Net. 
 
 1918. 
 
A 
 
 2 
 
 PREFATORY NOTE. 
 
 These Reports are published for general information. The recommendations made have been 
 closely examined by the different Government Departments concerned, and proposals relating to 
 the matters dealt with in the Reports, together with other matters affecting the re-settlement 
 of Civil War Workers and the steps which need to be taken in connection with the restoration 
 of industry in the transitional period, are already under the consideration of the Government. 
 Information with regard to the decisions arrived at will be published as soon as the conditions 
 permit. 
 
 C. ADDISON. 
 
 October 31st, 1918. 
 
 CIVIL WAR WORKERS’ COMMITTEE. ++ 
 
 Mr. Gerald Bellhouse, C.B.E. (Chairman) , Home Office. 
 
 The Right Hon. F. D. Acland, M.P., Board of Agriculture and Fisheries. 
 
 Mr. J. A. Barlow, C.B.E. , Ministry of Munitions. 
 
 Mr. A. Bellamy, C.B.E. 
 
 Mrs. M. -I. Bell-Rtciiards.* 
 
 Mr. W. H. Beveridge, C.B., Board of Trade. 
 
 Mr. IT. B. Bltler, Ministry of Labour. 
 
 Mr. J. A. Dale,! War Office (Contracts Department), 
 
 Mr. G. Dallas. 
 
 Mr. R. Dumas. 
 
 Sir Clarendon Hyde.+ 
 
 Mr. Ernest Jardine, M.P. 
 
 Miss A. Susan Lawrence. 
 
 Mr. Charles A. Lister, C.B.E. 
 
 Mr. J. J. Mallon. 
 
 Mr. D. S. Marjoribanks. § 
 
 Dr. Marion Phillips. 
 
 Mr. C. F. Rey, Ministry of Labour. 
 
 Mr. Humbert Wolee, C.B.E., Ministry of Munitions. 
 
 Mr«. Robert Young, O.B.E. 
 
 Miss A. K. Leach, Secretary. 
 
 Terms of Reference. 
 
 “ To consider and report upon the arrangements which should be made for the demobili- 
 sation of workers engaged during the war in National Factories, Controlled Establishments, in 
 other firms engaged in the production of munitions of war and on Government contracts, or in 
 firms where substitute labour has been emriloyed for the duration of the war.” 
 
 * Resigned 15th April, 1918. f Appointed 13th March, 1918. J Resigned 12th February, 1918. 
 
 § Appointed 26th October, 1917. 
 
 II The first Report of this Committee was published as Cd. 9117. 
 
 (20158.) Wt. 31302— 151. 4000. 11/18. D & S. Q-. 2. 
 

 ElAlW* 
 
 CIVIL WAR WORKERS’ COMMITTEE. 
 
 SECOND INTERIM REPORT. 
 
 UNEMPLOYMENT INSURANCE. 
 
 To the Right Honourable Christopher Addison, M.D., M.P. 
 
 Sir, 
 
 Immediately after the appointment of the Committee it was evident that, whatever 
 means might be adopted for transferring workers from war to peace occupations, and whatever 
 might he done to reduce the period of transition, there must still be considerable temporary 
 unemployment and a consequent necessity of some extension of unemployment insurance. The 
 Committee therefore set up a Sub-Committee consisting, of five of their members, with 
 Mr. Beveridge as chairman, to consider the problem. The report of this Sub-Committee is 
 forwarded herewith. We are in agreement with the proposals set out therein and we recom- 
 mend that steps be taken to give effect to them. . Unexpected recent developments have 
 increased the urgency of the problem, and we hope that it may be dealt with at the earliest 
 possible moment. 
 
 We have the honour to be, 
 
 Sir, 
 
 Your obedient servants, 
 
 (Signed) GERALD BELLHOUSE (Chairman). 
 
 E. D. ACLAND. 
 
 J. A. BARLOW. 
 
 A. BELLAMY. 
 
 M. J. BELL-RICHARDS. 
 
 W. H. BEVERIDGE. 
 
 H. B. BUTLER. 
 
 G. DALLAS. 
 
 R. DUMAS. 
 
 ERNEST JARDINE. 
 
 A. SUSAN LAWRENCE. 
 
 CHARLES A. LISTER. 
 
 J. J. MALLON. 
 
 D. S. MARJORIBANKS. 
 
 MARION PHILLIPS. 
 
 C. F. REY. 
 
 ROBERT YOUNG. 
 
 HUMBERT WOLFE. 
 
 A. K. Leach, Secretary. 
 
 14 th March 1918. 
 
CIVIL WAR WORKERS’ COMMITTEE. 
 
 Report of Unemployment Insurance Sub-Committee. 
 
 1. The “ Civil War Workers ” apparently contemplated in the terms of reference to the 
 Sub-Committee are two classes : — 
 
 (i) Persons on war work, i.e., persons engaged on work so closely connected with 
 the prosecution of the war that the work itself may be expected to cease when the war 
 is no longer being prosecuted. 
 
 (ii) War substitutes, i.e., persons replacing temporarily others who have joined 
 H.M. Forces or taken up “ War Work,” so that on the return of these others they will 
 presumably be displaced even though the work they were doing continues. 
 
 2. We have considered accordingly, in the first instance, the desirability of making a 
 temporary and partial extension of unemployment insurance, so as to cover as completely as 
 possible these special classes of persons without bringing in others. The two classes may for 
 the moment be considered separately. 
 
 3. Persons on War Work. — A very considerable extension on these lines has already been 
 attempted in the Munition Workers’ Insurance Act which, besides applying to all persons in 
 certain scheduled trades, whether engaged on munitions work or not, applies to all persons on 
 munitions work, whatever their trade. It cannot, however, be said that this plan has approved 
 itself in practice, or in any way covers the ground. It is open to the following objections : — 
 
 4. First, it is not practicable in most trades to distinguish, for purposes of insurance, between 
 those engaged on “ munitions ” or “ war ” work and those not so engaged. Workpeople pass 
 from one type of work to the other from week to week or day to day. In many trades engaged 
 in making materials rather than finished articles it is often impossible to say at any given moment 
 whether the work is “ war ” work or not. Even where the distinction is clear and workpeople 
 do not pass continually from “ war ” work to civil work and vice versa , the differential treatment 
 of workpeople in the same factory causes unrest. In practice the power reserved under them 
 to the Board of Trade (now the Ministry of Labour) to exclude any specified class of “ munition 
 work ” from insurance has had to be exercised to so large an extent as to whittle down this 
 insurance of “ munition workers ” (as distinct from munition trades) till it covers less than 
 200,000 workpeople out of an original total exceeding 1,400,000. Exclusion has been or is being 
 applied in turn to food, drink and tobacco, wool, cotton, hosiery, glass, and other minor trades. 
 Hardly any important group of workers remains insured under this heading except those making 
 Army clothing. 
 
 5. Second, even if the distinction between “ war workers ” and others in a trade can be 
 made and maintained it is of little or no practical value as indicating which individual will be 
 unemployed. It by no means follows that on the reduction of staff at the termination of the 
 war, the workman who has been doing “ war work ” will be selected for discharge in preference 
 to his fellow who has been doing the civil work. The selection will depend mainly on the relative 
 efficiency of the two men or other personal considerations. The insured workman may be 
 retained and the uninsured workman dismissed. 
 
 6. Third, the distinction between “ munition work ” or “ war work ” and other work is 
 equally unsatisfactory as an. indication of the trades in which unemployment is to be expected 
 after the war. There are, indeed, few trades now which are not largely engaged on war work 
 and probably none at all whose activity is not directly or indirectly connected with the prosecu- 
 tion of the war. In particular all the trades supplying furniture, clothing, food, and so forth 
 to munitions workers, though they cannot be described as “ war work ” will be subject to the 
 same dislocation at the end of the war, as their customers lose employment or are dispersed over 
 the country. 
 
 7. War Substitutes. — These are to be found in all occupations whether connected with the 
 prosecution of the war or not. The Munition Workers Insurance Act contains a provision 
 enabling the Board of Trade (now Ministry of Labour), in extending unemployment insurance 
 to a trade, to include only those who have entered the trade since August 1914 and were 18 and 
 upwards at the age of entry. The apparent object of this clause is to provide for the insurance 
 of “ war substitutes ” as such, while excluding the main body of the trade, and we have considered 
 whether it might not be used, subject to certain amendments, for this purpose. 
 
 8. It is just possible that in a very special occupation — such as railway service — the plan 
 might be of value. Even there, however, it is open to considerable objections and as a general 
 
3 
 
 measure applicable to ordinary industries, it appears impracticable. The differentiation between 
 individuals within a factory would give rise to great difficulties. Movement from one employer 
 to another would make it in practice impossible to determine whether a particular person was 
 a “ war substitute ” or not. The “ war workers ” themselves will not necessarily be the persons 
 selected for unemployment. Many will not be displaced at all, since the men whose places 
 they are taking will not return ; others may return to their former work and themselves displace 
 others. The question of including or not including persons who have entered the trade under 
 the age of 18 will give rise to acute difference of opinion. 
 
 9. We are driven to the conclusion that it is impracticable to attempt the insurance of 
 “ civil war workers ” as such. The only alternatives are (a) a further partial extension of 
 insurance by trades, the trades being selected as those which for any reason appear most likely 
 to suffer from unemployment after the war, and ( b ) a general extension of insurance to all 
 employees, subject to provisions for exclusion or adaptation in the case of special trades. 
 
 10. Partial Extension by Trades. — This amounts simply to adding a certain number of 
 trades to the schedule under the Munition Workers Act. In Appendix A to this Report an 
 examination is made of the various occupations at present uninsured and a list is given of those 
 which appear most likely to require provision for unemployment. The list comprises clerks 
 and shop assistants, financial, commercial, and professional occupations; food, drink and 
 tobacco; wood and furnishing trades (in so far as these are not already insured), and clothing. 
 It is also suggested that women engaged in transport and in public utility services should be 
 included. 
 
 11. This list is substantially the same as that given in the memorandum of 10th July 
 1917, put forward by the Ministry of Labour, and is probably as good a list as can be made. 
 Having considered this proposal, however, we feel the greatest difficulty in recommending it as 
 a satisfactory solution of the problem before us. 
 
 12. First, it appears to us to be impossible with any assurance to select trades for insurance 
 on the ground that they are particularly liable to unemployment in the reconstruction period. 
 Future conditions in respect of trade policy, shipping, finance, and raw materials are all so 
 uncertain as to make prophecy on this point little more than guesswork. 
 
 13. Second, even if the Government or the Department concerned do feel able to select 
 a trade on these lines for insurance, it by no means follows that they can convince the trade 
 itself. There is always something invidious in applying any compulsory system partially. 
 In practice the Ministry of Labour have failed to convince the boot and shoe trade that the 
 trade had any special risk of unemployment and have had to acquiesce in its exclusion from the 
 Munitions Workers’ Insurance Act. Yet the case for insuring most of the other trades in the 
 list given above is weaker than the case for insuring the boot and shoe trade. 
 
 14. Third, even if all the trades mentioned in the list were included this would by no means 
 cover the ground or make provision for all civil war workers. These, as stated above, are to be 
 found in all occupations. 
 
 15. We are of opinion that an attempt at a partial extension of unemployment insurance 
 by inclusion of specified trades would prove extremely difficult to carry through and would 
 yield very inadequate provision for unemployment if accomplished. 
 
 16. The problem of the “ civil war worker ” cannot be dealt with satisfactorily except 
 as part of the larger problem of unemployment after the war. Nor can any limits be set to the 
 extent of that larger problem. It is impossible to forecast the course or the incidence of 
 unemployment in the reconstruction period. It is impossible to say of any trade that it will 
 not be subject to dislocation at some stage or other. 
 
 17. The reconstruction period should be regarded as one in which all trades and occupations 
 are subject to risk and, apart from and in addition to all special measures for preventing unem- 
 ployment itself in particular trades, general provision should be made for prevention of distress 
 through unemployment by seeing that everybody is insured against unemployment. 
 
 18. On these grounds we are satisfied that the only effective and adequate way of meeting 
 the problem is by a scheme of general insurance designed to cover the whole area of employment. 
 We think it probable that a general scheme, in spite of its magnitude, is likely to prove less 
 controversial than any attempt to single out particular trades, while it makes certain, as no 
 partial scheme would, of really covering all the ground and excluding the necessity for hastily 
 improvised supplementary measures. 
 
 19. In this connection it may be pointed out that if the scheme of partial insurance broke 
 down either owing to opposition from the trades selected for inclusion or because unemployment 
 proved not to be limited to the area covered by insurance, the whole principle of insurance 
 must be seriously endangered. So far as hardship due to unemployment is not met by insurance, 
 the Government of the day will inevitably be driven to fall back on “ measures for the relief 
 of distress,” in other words on a system of doles. It will be impossible in the middle of a great 
 crisis to improvise any satisfactory machinery for administration, and large sums will inevitably 
 
 A 2 
 
4 
 
 be spent in the least effective and most demoralising way, At the same time, once it is clear 
 that uninsured trades are entitled to public money for the relief of distress, it will be quite 
 impossible to preserve the principle of contributory insurance for the trades included under the 
 present schemes. On practical administrative grounds, quite apart from any question of 
 principle, the method of contributory insurance has the great advantage of providing an effective 
 and automatic means of registering and selecting the individuals who require assistance. 
 
 20. We submit for consideration in Appendices B and C two proposals embodying schemes 
 of general insurance which have been laid before us. Both of these schemes are outlines which 
 obviously require further examination by some authority with wider powers and equipped with 
 the necessary financial and technical knowledge. We have not, therefore, felt it necessary 
 to work out the financial and technical details. The precise form which a scheme of general 
 insurance should take must necessarily be shaped after consultation with representatives of 
 employers and workmen generally, and we have taken the view that such consultation lay out- 
 side the scope of our duties. A scheme of general insurance must, however, affect very materially 
 the permanent scope and organisation of unemployment insurance, and to this extent our 
 recommendations pass beyond the range of reconstruction. 
 
 21. We are of opinion, accordingly, that the Minister of Labour should be asked to frame 
 definite and detailed proposals for general insurance and to give effect thereto as soon as possible. 
 The necessary steps to this end should clearly be taken with the least possible delay. At this 
 stage it is impossible to foresee how soon the problems of demobilisation may become concrete 
 and urgent realities. Unless a scheme of general insurance is devised and launched at the earliest 
 possible date it may be impossible to avoid the disastrous chaos of unorganised and improvised 
 methods of relieving distress. 
 
 22. We desire in conclusion to record our appreciation of the very valuable services rendered 
 by our Secretary, Mr. C. B. Hawkins. 
 
 (Signed) W. H. BEVERIDGE {Chairman). 
 
 A. SUSAN LAWRENCE. 
 
 CHAS. A. LISTER. 
 
 J. J. MALLON. 
 
 C. F. REY. 
 
 ROBERT YOUNG. 
 
 C. B. Hawkins (Secretary), 
 February 12th, 1918. 
 
 APPENDIX A. 
 
 TRADES FOR INCLUSION IN A SCHEME OF PARTIAL INSURANCE. 
 
 Area covered by Present Scheme : 
 
 The present scheme of State Insurance covers a 
 population of, roughly, 3.500,000, viz., 2,750,000 men 
 and 750,000 women. 
 
 In this number are included the great bulk of 
 the 2,660,000 persons estimated by the Board of 
 Trade to be employed on “ Munitions ” in the narrow 
 sense of destructive munitions of war. The Board of 
 Trade figures for munition workers include, however, 
 clerks, foremen and other personnel who are not 
 manual workmen and who do not, therefore, fall 
 within the scope of insurance. 
 
 In addition to the 2,660,000 persons engaged on 
 “ Munitions,” it is estimated that 2,466,000 persons 
 are employed on other government work over the 
 whole area of employment (i.e., including industries, 
 commerce and transport). Of this number about 
 400,000 are employed in the building trade, which 
 is, of course, already insured. It will appear, there- 
 fore, that there are at least 2.000,000 persons engaged 
 on Government work who are not at present covered 
 by State Insurance. 
 
 Owing to the fact that Government and civilian 
 work cannot be distinguished except in a few well 
 defined cases, e.g., army clothing, it is not practicable 
 to consider the insurance of Government workers 
 apart from other workers, and even if it were possible, 
 there is, of course, no guarantee that the particular 
 workpeople employed on Government contracts will 
 be those selected for discharge after the war, should 
 
 discharges be necessary. In any event, the propor- 
 tion of Government work in a trade is only one of 
 the factors constituting the total risk of unemploy- 
 ment during the period of demobilisation and re- 
 construction. These factors may be conveniently 
 summarised as follows : — 
 
 (1) The proportion of Government work to 
 the total amount of work in the trade. 
 
 (2) The proportion of males called up for 
 military service, whom the trade will have to 
 re -absorb on demobilisation. 
 
 (3) The proportion in which men have been 
 engaged as substitutes. 
 
 (4) . The general economic position which is 
 likely to obtain in the trade when peace is 
 declared. A trade which has lost, say, 50 per 
 cent, of males by enlistment, and which has 
 suffered a corresponding decrease in output, 
 will, for example, only be able to re -absorb the 
 labour discharged from the Army if there is 
 a corresponding extension in the supply of 
 materials and also in the effective demand. 
 
 Information on these points (especially points 1 
 to 3) is contained in the periodical reports prepared 
 for the Board of Trade on the course of employment 
 since 1914, and it may be convenient to insert here 
 the table below, which has been extracted from a 
 report for July last. Trades already included under 
 the State Insurance are excluded. 
 
 % 
 
5 
 
 State op Employment compared with July, 1914, in all Non-insured Occupations 
 
 in July, 1917. 
 
 
 
 
 Males, 
 
 
 
 ' 
 
 Females. 
 
 
 Trade Group. 
 
 Estimated 
 
 Number 
 
 employed 
 
 July, 
 
 1914. 
 
 Contraction 
 
 (-)• 
 
 Expansion 
 ( + )• 
 
 Known 
 to have 
 joined 
 the 
 Army. 
 
 Displace- 
 
 ment 
 
 (-)■ 
 
 Replace - 
 ( + )• 
 
 On 
 
 Govern- 
 
 ment 
 
 Work. 
 
 Estimated 
 
 Number 
 
 employed 
 
 July, 
 
 1914. 
 
 Contraction 
 
 (-)• 
 
 Expansion 
 
 (+)• 
 
 On 
 
 Govern- 
 
 ment 
 
 Work. 
 
 Mines and Quarries 
 
 1,266,000 
 
 -14-5 
 
 29-0 
 
 + 14-5 
 
 60 
 
 7,000 
 
 + 71-4 
 
 41 
 
 Textile Trades 
 
 625,000 
 
 -28-2 
 
 41-0 
 
 + 12-8 
 
 31 
 
 663,000 
 
 -f 2-4 
 
 32 
 
 Clothing Trade 
 
 292,000 
 
 -31-2 
 
 51-6 
 
 + 20-4 
 
 26 
 
 620,000 
 
 - 5-8 
 
 17 
 
 Food, Drink and Tobacco 
 
 360,000 
 
 -29-0 
 
 55-2 
 
 + 26-2 
 
 12 
 
 196,000 
 
 + 12-2 
 
 17 
 
 Paper and Printing 
 
 261,000 
 
 -38-5 
 
 47-5 
 
 + 9-0 
 
 18 
 
 147,500 
 
 - 3-4 
 
 24 
 
 Wood Trades 
 Other Trades : 
 
 China and Earthen- 
 
 258,000 
 
 -34-3 
 
 47-9 
 
 + 13-6 
 
 50 
 
 44,000 
 
 + 62-7 
 
 42 
 
 ware 
 
 50,000 
 
 -37-9 
 
 39-4 
 
 + 1-5 
 
 33 
 
 32,000 
 
 + 6-9 
 
 17 
 
 Glass bottles 
 
 16,000 
 
 -25-9 
 
 31- 
 
 + 5-1 
 
 43 
 
 1,500 
 
 + 31-2 
 
 46 
 
 Other glass 
 
 20,000 
 
 -36-8 
 
 42-7 
 
 + 5-9 
 
 54 
 
 2,500 
 
 + 59-8 
 
 51 
 
 Public Utility Services - 
 
 63,000 
 
 -17-5 
 
 31-3 
 
 + 13-8 
 
 24 
 
 600 
 
 + 635-3 
 
 27 
 
 Transport 
 
 1,153,000 
 
 -24-1 
 
 32-8 
 
 + 8-7 
 
 — 
 
 18,200 
 
 +484-4 
 
 — - 
 
 Banking and Finance - 
 
 176,000 
 
 -38-7. 
 
 52-6 
 
 + 13-9 
 
 ■ — • 
 
 9,500 
 
 + 570-5 
 
 — - 
 
 Professions 
 
 143,000 
 
 -40-3 
 
 56-5 
 
 + 16-2 
 
 
 67,500 
 
 + 30-2 
 
 — 
 
 Entertainments 
 
 185,000 
 
 -40-5 
 
 56-5 
 
 + 16-0 
 
 — 
 
 176,000 
 
 + 12-5 
 
 — 
 
 Commerce - 
 
 1,225,000 
 
 -351 
 
 57-9 
 
 +22-8 
 
 — 
 
 496,000 
 
 + 65-4 
 
 — 
 
 Mining and Textile Trades : 
 
 Taking the occupation groups in the order in 
 which they are set out in the foregoing table, it may 
 be observed, as regards the mining and textile 
 groups, that in both cases the manual workpeople 
 concerned are exceptionally highly organised. Apart 
 from the voluntary provision against risk of unem- 
 ployment made by the trade unions concerned, the 
 practice is to meet bad trade by the method of 
 short time. On these grounds, therefore, they would 
 probably not be suitable for inclusion in a partial 
 scheme. Moreover, in neither case is the rate of 
 enlistment and substitution relatively high. Accord- 
 ingly, whilst it is quite likely that there will, in fact, 
 be considerable distress amongst the workpeople in 
 these groups after the war, the danger is, perhaps, 
 relatively less than in many other trades. 
 
 Clothing Trades : 
 
 It may be noted that the boot and shoe trades, 
 which fall within this group, are already covered by 
 the Act of last year. The associations of employers 
 and workpeople concerned, however, raise objection 
 to the inclusion of then trade within the area of 
 State Insurance, on the ground that the union, 
 which includes about two -fifths of the total number 
 of workpeople employed, already makes adequate 
 provision for unemployment, and also has an 
 effective system for meeting depression by short 
 time. In view of these representations, it is probable 
 that the boot and shoe trade will be excluded from 
 the operation of Unemployment Insurance at an 
 early date. As regards the clothing trade as a whole, 
 it will be noted that over 50 per cent, of males have 
 enlisted, and that there has been replacement to the 
 extent of 20 per cent., he., in order to avoid discharge 
 of male workers after the war, the clothing trade must 
 be in a position to expand by something approaching 
 70 per cent. Having regard to the shortage of 
 material and to the fact that 26 per cent, of work- 
 people in the trade are now on Government work, 
 which will, of course, come to an end with the war, 
 it seems clear that there are strong grounds for 
 considering this group for inclusion in the scheme of 
 State Insurance. The number of women employed, 
 indeed, has diminished during the war, and if 
 employment is as good after the war as it is now 
 there should be little unemployment amongst them. 
 On the other hand, it is likely that the general 
 contraction of money earnings, which may be one 
 
 of the results of peace, will react severely on luxury 
 trades, including a considerable part of clothing and 
 furnishing. Should this risk materialise, women as 
 well as men will be thrown out in the clothing trade. 
 
 Food, Drinlc and Tobacco : 
 
 As regards this group, it will be noted that the 
 enlistment rate of 55-2 per cent, and the replace- 
 ment rate of 26-2 per cent, are both higher than in 
 almost any other group. There has, moreover, been 
 a very distinct increase in the number of women 
 engaged. On these grounds, notwithstanding the 
 fact that the total population in the trade has shrunk 
 considerably, the case for inclusion in a partial 
 scheme would appear to be rather strong. It should, 
 however, be noted that the jam and confectionery 
 trades, which are suffering acutely from the shortage 
 of sugar, are unlikely to be in a worse position 
 after the war than they are at present. This con- 
 sideration applies also to the fish curing industry, 
 which has practically come to an end, owing to naval 
 operations. 
 
 Paper and Printing Trades : 
 
 Owing to the shortage of paper this trade has 
 shrunk considerably, and will, no doubt, continue 
 to decline so long as the war continues. The trade 
 is strongly organised, and there is, therefore, a 
 considerable amount of provision against unem- 
 ployment already being made by vountary methods, 
 and as the trade is hardly likely to be worse off 
 after the war than during its continuance, there is 
 probably no strong reason for bringing this group 
 within the area of State Insurance. 
 
 Wood Trades : 
 
 About 140,000 workpeople comprised in this 
 group are already insured against unemployment 
 under the headings of Saw-milling and Case-making. 
 The feature of this group is the remarkable increase 
 in the proportion of women employed, viz., 63 per 
 cent. The enlistment figure is also high for the whole 
 group, and especially for the furniture and upholstery 
 trades, where it is 51 per cent, and 54 per cent, 
 respectively. The proportion of male substitutes 
 engaged is also considerable. It would, therefore, 
 appear desirable to include the trades comprised 
 in this group in any scheme for the expansion of 
 Unemployment Insurance, so far as they are not 
 already included. 
 
 A 3 
 
6 
 
 China and Glass Trades : 
 
 The number of women employed in these trades 
 is relatively small, and, as regards male labour, the 
 enlistment and replacement rates are both relatively 
 low. These trades would not, therefore, appear to 
 be specially exposed to risk of unemployment as 
 compared with other groups. 
 
 Public Utility Service and Transport : 
 
 In both these groups the outstanding feature is 
 the enormous increase in the proportion of women 
 employed. It seems almost certain that, when the 
 men now serving come back, a very large proportion 
 of these women will necessarily be discharged. On 
 this ground, insurance for women in these groups 
 would appear particularly appropriate, especially as 
 they are not protected by any voluntary organisation. 
 
 As a general rule, there would probably be great 
 difficulty in practice in insuring women apart from 
 men. The men belong to the same trade union, 
 and would almost certainly object to being selected 
 for differential treatment. These considerations, 
 however, do not apply with the same force to the 
 groups now under discussion, and the insurance of 
 women workers only might even be welcomed by the 
 men, on the ground that insurance will make it easier 
 to get rid of the women after the war. 
 
 Commerce and Clerical : 
 
 The figures in the table for the banking, pro- 
 fessional and commercial groups, are remarkable for 
 the enormous expansion in the number of women 
 employed, and for the very high rate of enlistment. 
 The proportion of male substitutes employed is 
 
 also exceptionally high in the commercial group, 
 i.e., the wholesale and retail distributive trades, the 
 proportion being 22-8 per cent., which is only 
 exceeded in the case of the food, drink and tobacco 
 group, where it is 26 per cent. 
 
 It is clear, therefore, that if the Unemployment 
 Insurance is extended at all, it ought to cover the 
 women employed in these groups after the war. 
 Probably the men also ought to be covered. There 
 would appear to be no grounds for supposing that 
 employment in these groups will expand after the 
 war to such an extent as will enable them to absorb 
 not merely the large numbers of males who will return 
 from the “Colours,” but also the 14 per cent., 16 per 
 cent, or 20 per cent, of substitutes who have been 
 engaged to replace them. From a practical admini- 
 strative point of view, it is probably easier to insure 
 both men and women than to bring in the women 
 only. The insurance of clerical workers in general 
 would, moreover, have the further advantage of 
 including the office staffs employed in connection 
 with the manufacture of munitions, who are, broadly 
 speaking, exposed to just as much risk as the manual 
 workers. 
 
 SUMMARY. 
 
 Whilst it is clear that there is serious risk of 
 unemployment after the war in all trades, it is 
 suggested that if insurance must be limited to 
 occupations in which the risk is most likely to 
 materialise, the following groups should be selected 
 for consideration. The groups are placed in order 
 of preference. 
 
 Trades suggested eor Inclusion. 
 
 Trade Group. 
 
 Estimated Employed 
 Population at January, 1917, 
 aged 16 and over. 
 
 Number already Insured 
 through Trade Union. 
 
 
 Males. 
 
 Females. 
 
 Total. 
 
 Males. 
 
 Females. 
 
 Total. 
 
 Clerks and Shop Assistants 
 
 841,000 
 
 943,000 
 
 1,784,000 
 
 122,600 
 
 23,400 
 
 146,000 
 
 Financial, Commercial and Professional 
 
 200,000 
 
 210,000 
 
 410,000 
 
 — 
 
 — 
 
 Transport ..... 
 
 • — - 
 
 |30,000 
 
 30,000 
 
 - — • 
 
 — 
 
 r 
 
 Public Utility Service 
 
 
 
 8,000 
 
 8,000 
 
 — 
 
 — 
 
 — -A. 
 
 Food, Drink and Tobacco - 
 
 171,400 
 
 117,300 
 
 288,700 
 
 18,950 
 
 1,700 
 
 20,650 
 
 Wood Trades Uninsured, viz., Furni- 
 ture, Brush, Basket 
 
 89,700 
 
 46,150 
 
 135,850 
 
 6,300 
 
 350 
 
 6,650 
 
 Clothing (other than Boots and Shoes) 
 
 200,200 
 
 502,500 
 
 702,700 
 
 18,100 
 
 35,350 
 
 53,450 
 
 Grand Total 
 
 1,502,300 
 
 1,856,950 
 
 3,359,250 
 
 165,950 
 
 60,800 
 
 226,750 
 
 It will be noted that these are substantially the 
 groups put forward by the Ministry of Labour in the 
 memorandun submitted by the Cabinet and referred 
 to the Committee. It is now suggested, however, 
 that men should usually be included as well as the 
 women, and that, in the case of clothing, insurance 
 should apply generally and not be limited to the 
 wholesale tailoring trade. 
 
 The inclusion of non-manual employees would 
 make it necessary to lay down an income limit 
 above which contributions would not be payable. 
 Probably this limit should not be less than 200Z. 
 Provision should also be made for recent entrance 
 in the event of the war reaching an early conclusion. 
 Subject to this, the new trades should be brought 
 in under the terms of the Act of 1916. 
 
 APPENDIX B. 
 
 SCHEME I. FOR NATIONAL UNEMPLOYMENT INSURANCE. 
 
 (1) Scope of Insurance . — Until three years after 
 the termination of the war, Compulsory Unemploy- 
 ment Insurance will apply to all employed persons 
 except 
 
 (a) persons employed otherwise than by 
 way of manual labour and in receipt of remu- 
 neration at a rate exceeding 200Z. per annum ; 
 
 (b) persons employed in trades with a 
 “ Special Scheme ” (paragraph 3). 
 
 (2) Contributions and Benefits . — In the case of 
 men, the contribution will be 2\d. each from employer, 
 workman and State. The unemployment benefit will 
 be 15s. a week for 15 weeks of unemployment after 
 the first week, and subject to whatever rules as to 
 continuity of unemployment, disqualification for 
 benefit, and proportion of benefit to total contri- 
 butions paid, apply to the present insured trades. 
 In the case of women, the contribution will be 2d. 
 
7 
 
 and benefit 12s. a week. In addition to the 
 unemployment benefit, there will be pension allow- 
 ances to persons experiencing little or no unemploy - 
 ment (paragraph 5). The fund will be liable for 
 administration expenses up to 10 per cent., any 
 excess being borne by the State. 
 
 Note. — It has been impossible to make any 
 definite actuarial estimate of the probable rate 
 of unemployment, having regard both to the 
 absence of any records of unemployment 
 among large classes of the population and to 
 the uncertainty of industrial conditions after 
 the war. From the information available, 
 however, it seems reasonable to expect that 
 the contributions stated will yield the benefits 
 proposed (together with the pension benefit in 
 paragraph 5). There is an advantage in con- 
 tinuing the present rate of contribution (2 \d. a 
 week). 
 
 (3) Special Schemes in Exempted Trades. — The 
 Minister of Labour will be authorised, after con- 
 sultation with the recognised Industrial Council, or, 
 failing that, with associations of employers and 
 workmen, in each trade, by order to exclude alto- 
 gether from insurance any trade in which a “ Special 
 Scheme ” is adopted seeming for all persons employed 
 in that trade benefits equivalent to, or greater than, 
 those provided by the State insurance system. 
 
 Note. — Special Schemes ” will, it is ex- 
 pected, be suited only to highly organised 
 occupations of a special character such as 
 railway service, mining, cotton and (possibly) 
 local government and mercantile marine. A 
 Special Insurance Scheme is already in force 
 under the Cotton Control Board, and could, 
 no doubt, be adopted for recognition under the 
 Act. A Special Scheme of a different type will 
 probably be required in dock labour. 
 
 (4) Arrangements with Associations in Insured 
 Trades. — A new type of arrangement with associa- 
 tions will be introduced providing, on conditions, for 
 repayment to associations on the basis of the contri- 
 butions of their members, and not of the benefits 
 paid (as in the present Section 105). Where such 
 an arrangement has been made, any member of the 
 association wishing to claim on the association, 
 instead of the unemployment fund, will make a 
 declaration to this effect. Persons who make such 
 declarations will be debarred from getting State 
 benefit, but there will be paid each year from the 
 unemployment fund to their association an annual 
 grant at the rate of, say, 16s. a year for each man 
 and a corresponding amount for each woman, repre- 
 senting the assumed value of the worker’s and the 
 employer’s contributions. The association will be 
 free to spend the money obtained in providing 
 benefit on any scale desired by it, and subject to its 
 own rules, but will be required to spend on friendly 
 benefits altogether not less than the total grant 
 received by it. It is a matter for further considera- 
 tion whether any part of the State contribution 
 should also be paid over in such circumstances. 
 
 Note . — The new type of arrangement differs 
 from a “ Special Scheme ” in so far as it 
 
 (a) relates only to benefits and leaves the 
 
 method of collecting contributions (by 
 cards and stamps) untouched ; 
 
 ( b ) relates only to members of associations. 
 
 It differs from section 105 in giving freedom 
 
 to each association to frame and apply its own 
 rules as to benefit, subject only to the condition 
 that the association benefits shall, on the whole, 
 be equivalent to, or greater than, the statutory 
 benefit. The workmen will not be required to 
 claim benefit at an employment exchange, 
 and will not be subject to the rules as to 
 “ continuity of unemployment,” waiting week, 
 dismissal for misconduct, etc. 
 
 The proposal will no doubt be adopted by 
 the great bulk of the associations in the insured 
 trades, whether they now give benefit or not, 
 and will enable them to avoid feeling that they 
 are paying for the unemployment of others. 
 
 Any association will, however, also have the 
 option of continuing or making an arrangement 
 of the present type under section 105. 
 
 (5) Pension Benefits . — At the age of 65 any 
 person whose own contributions exceed the benfit 
 then drawn by him will be able, in lieu of any further 
 claim to unemployment benefit in respect of such 
 contributions, to claim for the five years from 65 
 to 70 a pension at the following rates : — 
 
 Where benefits drawn do not exceed — 
 
 \ of own contributions 7s. a week. 
 
 § „ „ 6s. 
 
 \ >> it 6s. ,, 
 
 Total ,, ,, 4s. ,, 
 
 Should the age for commencing old age pensions 
 be lowered, the age for benefit under this scheme 
 would also be lowered, so as to cover always the last 
 few years before the old age pensions begin. It 
 might in that case be necessary to reduce the amounts 
 paid or the period for which they were paid (say, 
 from 5 to 4 years). 
 
 Note . — This is intended to replace the 
 present section 95 of the National Insurance 
 Act (Part II.) (repayment of contributions 
 at 60) and to meet objection to insurance on the 
 part of occupations such as agriculture and 
 domestic service, which, though having rela- 
 tively little unemployment, are not sufficiently 
 organised to adopt a “ special scheme.” 
 
 The foregoing pensions are based on pay- 
 ment of contributions for about 40 years in 
 each case. A workman will not be able to 
 claim in respect of contributions paid while he 
 was claiming under an association arrangement, 
 and the pensions will, of course, be lower to 
 men who only come into insurance late in life. 
 
 The cost of these allowances has only been 
 worked out very roughly, and it is not certain 
 that pensions on this scale could be awarded, 
 but probably something in the neighbourhood 
 of these amounts could be paid : — 
 
 (6) Initial Benefits . — Unless the scheme is in 
 force for a considerable time before the war ends, the 
 workpeople insured under it will not, at the outset, 
 have paid sufficient contributions to entitle them 
 to substantial benefits, in view of the rule limiting 
 benefit to one week for every five contributions paid 
 Probably the simplest way of meeting the difficulty 
 will be to vary the proportion under the rule, e.g., 
 if the war ends six months after the starting of the 
 scheme, to make the proportion 1 : 2 for the next 
 six months, and 1:4 or 1:5 thereafter. 
 
 , Note . — If the war ended and acute unem- 
 ployment developed within a very short time 
 after contributions began to be paid under the 
 scheme, it might be necessary to go yet 
 further, and provide — 
 
 (a) for crediting each workman under the 
 proportioning rule with a certain number 
 of “ added contributions ” (as was done 
 when unemployment insurance was 
 started) ; 
 
 (b) for an advance from the Treasury, to be 
 repaid by subsequent contributions. 
 
 It is, however, important to notice that once 
 the organisation has been completed, to the extent of 
 issuing unemployment books for contributions, and 
 so, in effect, registering the insurable population, the 
 scheme will work even though the war ends imme- 
 diately thereafter. There is no need to assume a 
 lengthy initial period of contributions. 
 
 {8.) Existing Unemployment Fund . — The existing 
 unemployment fund- — exceeding 10,000,000?. — has 
 been contributed mainly by the original insured 
 trades (engineering, shipbuilding and building), 
 which have also a materially higher rate of unem- 
 ployment than the rest of the employed population. 
 Substantial justice will probably be done by letting 
 the old trades now come in at the same rate of 
 contributions as the new ones, on condition of 
 throwing their accumulated fund into the common 
 pool. The interest on 10,000,000?. represents some- 
 
 A 4 
 
8 
 
 thing like \d. per head per week in contributions. 
 This point, however, needs further consideration 
 after full examination of the actuarial position. 
 
 (9) Relation to Health Insurance. — If unemploy- 
 ment insurance becomes, like health insurance 
 national in scope, there will clearly be strong grounds 
 for snnplifying the machinery for collection of contri- 
 butions, i.e., for letting both health and unemploy- 
 ment contributions be paid by a single stamp affixed 
 to a single card. This is a matter for examination by 
 the expert officers of the two departments concerned, 
 but it is difficult to believe that the continuance of 
 separate unemployment books and insurance cards 
 (in addition to the insurance book retained by the 
 employer) is essential. Unquestionably the accept- 
 ance of the whole scheme by the public would be 
 very much facilitated if this unification could be 
 brought about. 
 
 (10) Termination or Continuance of Insurance . — 
 As from the end of three years after the termination 
 of the war the Minister of Labour will be authorised 
 to exclude from insurance any trade or occupation 
 as to which, after consultation with the associations 
 of employers and of workpeople, he is satisfied that 
 permanent insurance is undesirable. 
 
 General Observations on Scheme I. 
 
 Attention may be called to the following main 
 points in relation to the scheme outlined above : — 
 
 Adaptability of System to Various Trades. — First, 
 the scheme is based on the principle that the State, 
 while prescribing the end to be attained — universal 
 insurance against unemployment dining the recon- 
 struction period — should leave the greatest possible 
 freedom as to the means to be adopted for this end, 
 according to the varying conditions of each trade. 
 
 The great organised trades — such as mining, 
 cotton, railway service — will be able to stand outside 
 the State scheme of contributions and benefits 
 altogether, making provision for unemployment 
 under “ Special Schemes,” devised and managed by 
 the trades themselves. The organised workmen in 
 less completely organised trades, while required to 
 pay contributions under the State scheme, will be 
 able to have then’ own scheme of benefit, paid by 
 themselves under their own rules. 
 
 Exclusion of Trades after Three Years. — The pro- 
 posal makes insurance general for three years after 
 the war, on the ground that during that period the 
 risk of unemployment is general. At the end of 
 the period any trade for which permanent insurance 
 is desirable can remain subject to the scheme, while 
 others, for which permanent insurance is undesirable, 
 are excluded. It is clearly of the greatest importance 
 that provision for a war emergency should not lead 
 to placing upon the State a permanent burden of 
 expenditure which cannot be justified by permanent 
 needs. For this reason, while insurance against 
 unemployment must be universal during the recon- 
 struction period, it is equally important that the 
 scheme should admit of bringing insurance to an 
 end wherever it is not required, at the end of that 
 period. Moreover, by the provision for exclusion 
 of trades with “ Special Schemes,” the total State 
 contribution will be materially decreased. It is not 
 contemplated that in such cases the State should 
 contribute anything except, perhaps, a grant of 
 one-sixth of the benefits paid, as under section 106 
 of the present Act. 
 
 Pension Benefits and Stable Trades. — While it is 
 desirable to avoid, if possible, any absolute excep- 
 tions to the system, and while it may be hoped that 
 the provision of “ pension benefit ” proposed in 
 paragraph 5 of the scheme, will meet any reasonable 
 objection to insurance on the part of persons 
 employed in occupations such as agriculture and 
 
 domestic service, which are both unorganised and 
 relatively free from unemployment in normal times, 
 the financial basis of the scheme does not depend 
 upon retaining these occupations within it. They 
 can safely be excluded after three years (losing, of 
 course, the chance of pension benefit), or they can 
 be included with lower rates of contributions even 
 from the outset. 
 
 Rate of Benefit . — Uncertainty as to the course of 
 prices after the war makes it difficult to fix upon the 
 most suitable rates of contribution and benefit. 
 There is clearly an advantage, however, in con- 
 tinuing, as far as possible, the existing rate of 
 contribution, and this is proposed in the case of 
 men; it is hoped that this contribution may yield 
 benefit up to 15s. a week. As to women, there is a 
 difficulty, owing to the danger, on the one hand, 
 of fixing a rate of benefit which might be inadequate 
 in a time of high prices and, on the other hand, of 
 fixing a rate so high as to encourage unemployment. 
 On the whole, the actual proposal — of 12s. a week 
 (corresponding to a contribution of 2d .) — seems a 
 reasonable one. 
 
 Statistics . — The following table shows the insur- 
 able population and its assumed distribution under 
 the various parts of the scheme. 
 
 Insurable Population in Main Groups. 
 
 Numbers Employed. 
 
 Old Insured Trades (Engineer- 
 ing, Shipbuilding, Building, 
 
 etc.) - - - - - 
 
 New Insured Trades (Metals, 
 Explosives, Leather, Chemi- 
 
 2,292,000 
 
 
 cals, Rubber, etc.) 
 
 1,140,000 
 
 3,432,000 
 
 Boot and Shoe - 
 
 146,000 
 
 
 Textile (other than Cotton) 
 
 648,000 
 
 
 Clothing - 
 
 Transport (excluding Docks and 
 
 557,000 
 
 
 Railways) - 
 
 230,000 
 
 
 Paper, Printing, etc. 
 
 233,000 
 
 
 Furniture, etc. 
 
 132,000 
 
 
 Food, Drink and Tobacco 
 Miscellaneous (China, Glass, 
 
 289,000 
 
 
 Linoleum, etc.) - 
 
 202,000 
 
 
 General Labourers - 
 Financial, Commercial and Pro- 
 
 203,000 
 
 
 fessional - - - 
 
 410,000 
 
 
 Clerks, Shop Assistants - 
 
 1,784,000 
 
 
 Public Utility Services 
 
 112,000 
 
 4,946,000 
 
 Agriculture - - - 
 
 939,000 
 
 
 Domestic Service 
 
 1,950,000 
 
 2,889,000 
 
 Docks, etc. - 
 
 120,000 
 
 
 Railways - - - - 
 
 600,000 
 
 
 Mining (Iron and Coal) 
 
 1,000,000 
 
 
 Mercantile Marine - 
 
 300,000 
 
 
 Cotton ----- 
 
 487,000 
 
 2,507,000 
 
 Total 
 
 r V- 
 
 13,774,000 
 
 It may be estimated that this insurable popula- 
 tion will be distributed under “ Special Schemes,” 
 “ Arrangements with Associations ” and “ State 
 Insurance,” as follows :• — 
 
 Special Schemes - - - - 2,507,000 
 
 Arrangements with Associations - 2,271,000 
 State Insurance : — 
 
 (a) not including agriculture 
 
 and domestic servants - - 6,107,000 
 
 (b) including agriculture and 
 
 domestic servants - - - 8,996,000 
 
11 
 
 APPENDIX C. 
 
 SCHEME II. FOR NATIONAL UNEMPLOYMENT INSURANCE. 
 
 (1) It is clear that whatever be the state of trade 
 
 and finance after the war, there must be a con- 
 siderable amount of unemployment for some period; 
 how much unemployment there will be and over what 
 period it will last it is impossible to forecast. But, 
 whatever it be, there must be a great deal of 
 unemployment which can only be ' dealt with in one 
 of two ways, either by a considered scheme of 
 insurance, introduced beforehand, or by State doles, 
 hurriedly and indiscriminately issued when the 
 moment of crisis arrives. There can be no question 
 
 which is the better way. State doles lead straight 
 
 to pauperisation. A well-devised scheme of insur- 
 ance preserves the self-respect of the worker, and 
 assists and encourages him to supplement it by 
 provision, made individually or through an association. 
 
 (2) The various possible methods of insurance have 
 been fully considered in this Report. The difficulties 
 in the way are in all cases great, . and in some cases 
 insuperable. A partial scheme of insurance has been 
 demonstrated to be practically impossible. There 
 remains, therefore, the only alternative — a general 
 scheme. We have, for the past five years, had experi- 
 ence of such a scheme in certain industries, and, with 
 the exception of the operation of one section, viz., 
 section 106, which was a grant to associations, the Act 
 has worked without friction and without difficulty, and 
 the trades concerned, which include some of the most 
 highly organised trades in the country, have not raised 
 any objections of importance. 
 
 (3) The problem in extending the existing Act to 
 all trades will be complicated by the fact that we shall 
 he asking certain trades, which hitherto have 
 experienced little or no unemployment, to pay the 
 same rate of contribution as other trades which have 
 experienced a considerable amount of unemployment, 
 and that it is impossible to avoid this, inasmuch as 
 there are no data to go on in order to fix differential 
 rates .of contributions between the different trades 
 according to the risk of unemployment. 
 
 (4) There is the further objection that certain 
 trades might object to be compelled to accept a 
 scheme which involved official interference in their' 
 concerns, which compelled the attendance of the'r 
 members at employment exchanges, and which gave 
 them no voice in the management of what they 
 regard as their own concerns. There appears, how- 
 ever, to be no insuperable difficulty in devising a 
 scheme which will meet these objections and will 
 give the requisite degree of autonomy to the various 
 trades whilst enabling the State to fulfil its responsi- 
 bility of providing for all its members. 
 
 (5) In the first place, it may lie pointed out that 
 the State is certainly under obligation to take a very 
 special part in meeting the unemployment which is 
 
 due to after-war conditions. It is therefore right 
 that the State should, in any system of unemployment 
 insurance devised to meet this, bear a larger share 
 of the cost than it could properly be expected to do 
 in a scheme of insurance devised to meet merely 
 normal contingencies. Consequently it would be a 
 justifiable proposition in any scheme which is devised 
 for the purpose, to establish for a few years after the 
 war a low uniform fiat rate of contribution, which 
 would probably not be solvent for the time, but 
 any deficit of which should be made up by the 
 State, i.e., a contribution of Id. each from workmen, 
 employers and the State, and a flat rate of benefit 
 of HU. By having such a low rate of contribution 
 the objections of the trades which have experienced 
 little or no unemployment in the past will be largely 
 met. It could further be arranged that the contri- 
 butions of the different trades or industries should 
 be paid into different funds, so that at the end of 
 a given period, say, three years, an examination of 
 these funds could be made and the future contri- 
 butions of the trades and the State respectively 
 could be assessed with a view to an equitable 
 apportionment of the risks according to the 
 actual volume of unemployment. To do this and 
 to establish future working arrangements, National 
 Committees of Employers and Workmen in each trade 
 could be brought into being, and could be charged 
 with examining the question with the aid of State 
 actuaries. 
 
 (6) As regards the other objections to an exten- 
 sion of the scheme, it would appear possible to meet 
 these by devolving a large part of the administration 
 of the scheme to bodies vested with a large amount 
 of local autonomy ; that is to say, the Local Committees 
 of Einployers and Workmen established by the 
 Ministry of Labour, could be constituted the insurance 
 authorities for the various districts. Claims for 
 benefit might be made to them, and it should rest with 
 them to allow or disallow the claim, subject to an 
 appeal by workmen or by the Department to the 
 Umpire. These Local Committees are a fundamental 
 part of the Government scheme for dealing with 
 demobilisation. It is, therefore, not merely right and 
 proper but eminently desirable that they should be 
 entrusted with financial responsibilities of this kind. 
 
 (7) Any special arrangements which were necessary 
 for dealing with special trades might well he considered 
 by Central Trade Committees, and, if necessary, 
 carried out by Local Trade Sub-Committees of local 
 Advisory Committees. It would not be necessary to 
 create fresh machinery for this purpose inasmuch as 
 the machinery visualised here has already been created 
 for demobilisation and other purposes by the Ministry 
 of Labour. 
 
12 
 
 CIVIL WAR WORKERS’ COMMITTEE. 
 
 THIRD INTERIM REPORT. 
 
 HOLIDAYS FOE MUNITION WOEKEES AFTEE THE WAE. 
 
 To the Et. Hon. Christopher Addison, M.D., M.P. 
 
 Sir, 
 
 1. We have the honour to submit to you our third interim report in which we deal with 
 the question of a holiday for munition workers at the end of the war. 
 
 2. In this connection we have had before us a proposal that on the analogy of the month’s 
 furlough to be granted to soldiers' on demobilisation, all munition workers should be granted a 
 month’s holiday on full pay (at weekly time wages) at the cost of the State. It has been urged 
 before us first that on physiological grounds such a holiday is in the national interests, and 
 especially so for the women, having regard to the consideration of future maternity ; and secondly 
 that the claim of the munition workers to a holiday, in so far as they have been debarred by law 
 from obtaining employment on other than munition work, is comparable to that of the soldiers. 
 We have also, as an extension of this proposal, had before us the recommendation of a well- 
 known employer, who urged as his personal opinion the desirability of giving all workers paid 
 weekly a fortnight’s holiday on full pay in each year. He proposed both on general grounds, 
 and more particularly in view of the need for removing the exceptional strain produced bv the 
 war, that the Government should consider whether a fortnight’s holiday in the year should not 
 be made general for every worker who had been in consecutive employment for one year. He 
 pointed out that this would not mean that the whole of an industry would be at a standstill for 
 any particular fortnight, but that each industry, each locality, or each establishment would make 
 its own arrangements with a view to suiting the general convenience. 
 
 3. After giving the question of a holiday for munition workers most careful consideration 
 the Committee find themselves quite unable to agree to any unanimous recommendation. They 
 recognise, however, that the subject is one which has received considerable public notice, and 
 they think that they will help the Ministry of Beconstruction best by setting out freely and 
 frankly the divergent views held by different members of the Committee. These views are 
 accordingly expressed in the Appendices attached. 
 
 A. K. Leach, 
 
 Secretary . 
 IS th April, 1918. 
 
 I have the honour to be, 
 
 Sir, 
 
 Your obedient Servant, 
 
 GEBALD BELLHOUSE, 
 
 Chairman. 
 
APPENDIX A. 
 
 1. We find ourselves quite unable to support the 
 proposal for a holiday for munition workers on full pay 
 either immediately on demobilisation or, as has been 
 suggested as an alternative, during the twelve months 
 following the cessation of hostilities. 
 
 2. It has been argued that such a holiday is neces- 
 sary on physiological grounds. We cannot, however, 
 find any evidence that the hours of labour or conditions 
 of munition work have lately been such as to justify 
 any special claim to a holiday at the public expense for 
 munition workers generally as compared with many 
 other classes of workers. Had there been a continu- 
 ance of the conditions which prevailed' in the early 
 stages of the war, when hours were, almost universally, 
 exceptionally long, and holidays impossible, a strong 
 case could no doubt have been made out in favour of 
 the munition workers being given special consideration. 
 But since that time hours have been, and are being, 
 steadily reduced, in the interest not only of the 
 workers themselves but of output. The Health of 
 Munition Workers’ Committee gave a close and con- 
 tinuous scrutiny to this question, and its successive 
 recommendations were embodied in the Munitions 
 General Order. The whole of munitions production, 
 with the exception of certain work in the manufacture 
 of guns, tanks or aeroplanes, is conducted in strict 
 conformity with this Order, and the hours worked, 
 including overtime, are, generally speaking, within the 
 maximum of 60 hours prescribed for women. Nor is 
 this maximum exceeded where, as is sometimes inevit- 
 able, night shift is worked. 
 
 3. Again, as regards conditions of work, and par- 
 ticularly the risk of T.N.T. sickness, the same con- 
 siderations would appear to apply. We are informed 
 by the Ministry of Munitions that the percentage of 
 T.N.T. sickness in August, 1916, was at one factory as 
 high as 11 per cent., whereas there is now no factory 
 engaged on the manufacture or filling of T.N.T. in 
 which the percentage of illness due to the nature of the 
 work is higher than -79 per cent., and in some the 
 percentage is nil. Similar facts emerge from the 
 returns of cases of toxic-jaundice published in the 
 Labour Gazette. It is estimated that the total number 
 of workers employed in handling T.N.T. has not been 
 less than 30,000 at any time during the period taken, 
 and that the number has increased rather than de- 
 creased in successive quarters. The number of re- 
 ported cases of toxic-jaundice is as follows: — 
 
 Three months ended March 31st, 1917 — 83 cases, 12 deaths. 
 
 „ „ „ June 30th „ 57 „ 20 „ 
 
 „ „ „ Oct. 30th ,, 21 ,, 8 „ 
 
 ,, ,, ,, Dec. 31st ,, 29 ,, 4 ,, 
 
 „ „ „ March 31st. 1918 — 13 „ 4 „ 
 
 So low a proportion of illness establishes, in our 
 opinion, no case for claiming a holiday for munition 
 workers on the ground of this special risk. 
 
 With regard to the suggestion which has from time 
 to time been made, that T.N.T. produces constitu- 
 tional troubles which do not declare themselves until 
 some time after they were contracted, the Ministry 
 of Munitions informs us that there has been special 
 opportunity for investigating the point, but that in 
 no case was the suggestion confirmed. 
 
 4. Our conclusion, moreover, that a claim for a 
 special holiday for Munition Workers cannot legit : - 
 mately be based on the strain or danger to which as a 
 class they are exposed, appears to he borne out by 
 the results of the enquiries undertaken by the investi- 
 gators appointed by the Health of Munition Workers’ 
 Committee, which are published in the Committee’s 
 Interim Report issued in February, 1917 (Cd. 8511), 
 and also by the reports of the Chief Inspector of 
 Factories. 
 
 5. We must, of course, reoognise that in certain 
 aieas a limited number of workers are exposed to the 
 strain of considerable journeys in overcrowded trains 
 and trams in addition to that of their daily work at 
 the factorv. We do not, however, think that it would 
 be administratively practicable to select for special 
 privilege any particular * classes or individuals in 
 whose case there may be considered to have been ex- 
 ceptional strain. 
 
 6. We do not agree with the contention that the 
 conditions of munition work are in any way analogous 
 to those of the soldiers. It is true that in the past 
 workers could not leave their place of employment 
 
 without sanction, but this is no longer so — men must 
 still remain at munition work, but they may move 
 from works to works as they may choose ; women are 
 free to move as they may desire. While, then, the re- 
 strictions that have existed, and still exist in a mini- 
 mised form, make it incumbent on the State to assist 
 the speedy resettlement of workers in peace occupa- 
 tions, they do not appear to us to warrant any such 
 privileges as this proposal involves. It should be 
 observed that if the munition worker were to receive 
 his full time-wages he would receive higher pay than 
 the returning soldier. 
 
 7. There are, however, further practical difficulties 
 in giving effect to the proposal which seem to us in- 
 superable, namely, that it would be impossible to draw 
 an equitable distinction between munition workers 
 and other classes of workers. Any attempt to do so 
 would inevitably lead to an irresistible demand for a 
 general holiday at the expense of the State. There is 
 no definition of munition worker which could be re- 
 garded as satisfactory for the purpose in view. There 
 is the further difficulty of discriminating fairly 
 between munition workers and other workers. In the 
 same factory it often occurs that part of the employees 
 are engaged on munition work and part are not. A 
 few instances will make this plain. 
 
 (а) In a soap factory persons making glycerine 
 
 are probably doing munition work and the 
 remainder are not. 
 
 (б) In many textile factories part of the opera- 
 
 tives are engaged on munition work and 
 part are not. 
 
 (c) In oil cake factories those who are engaged on 
 
 the extraction of essential oils for explosives 
 are doing munition work, while those 
 merely making the cattle cake are not. 
 
 (d) In an uncertified gas works only such portion 
 
 of the work is munition work as consists 
 in the production of materials required for 
 the manufacture of explosives. 
 
 Again, a firm may be engaged in manufacturing an 
 article, e.g., rope, which may be employed by other 
 firms either for munition work or for private pur- 
 poses. How is it practicable to determine which of 
 the employees making rope are on munition work 
 and which are not? 
 
 At present it is possible to determine, at a given 
 time, in individual cases, and after careful enquiry 
 into each case, whether a specific class are munition 
 workers or not. But to deal with the flood of appli- 
 cations for rulings as to what is munition work, 
 which the proposal under consideration would entail, 
 would, in our opinion, be a task of almost insuperable 
 difficulty ; and the rulings would in all probability be 
 hasty and inaccurate. There are, moreover, many 
 other workers in private industry, such as clerks and 
 shop assistants, who have worked at least as hard as 
 those engaged in munition work, and for much less 
 pay, whose claim to a holiday at the public expense 
 would morally be quite as strong. In fact, once the 
 principle of a holiday on pay is admitted, we are satis- 
 fied that the same difficulties in limiting its scope will 
 pjise as have been experienced recently in connection 
 with the grant of the 124 pev cent, bonus to certain 
 time workers in munition factories. 
 
 8. The proposal, involving as it would an enormous 
 expenditure from public funds, might to some extent 
 be justified if it would assist the demobilisation pro- 
 blem and do something to minimise the dislocation 
 which may be anticipated during the period occupied 
 by the turnover from war to peace work. But in our 
 opinion anything in the nature of a general holiday 
 would have a precisely contrary effect. It is of urgent 
 importance both to the State and to the workers 
 themselves that the latter should resume their normal 
 industrial occupation at the earliest possible date, and 
 any unnecessary prolongation of the interval between 
 the cessation of war work and the commencement of 
 production on a peace basis would, in our judgment, 
 be highly inexpedient. A holiday, moreover, taken 
 on demobilisation would be likely to cause grave in- 
 convenience to the community in connection with the 
 question of food supplies and transport at a time 
 when the pressure on the railways will already be 
 sufficiently severe, and the food problem still acute. 
 
 A 3 
 
 20158 
 
u 
 
 A farther proposal that the month’s holiday should 
 be given to munition workers not on demobilisation, 
 but some time during the twelve months following the 
 cessation of hostilities appears to us impracticable. 
 Administratively we think it would be imposs ble to 
 carry through, and would probably result in each 
 worker being allowed a month’s pay without any 
 guarantee that he took a holiday. 
 
 10. Though we have felt it incumbent upon us to 
 report strongly against the proposal, we do not wish 
 it to be inferred that we do not recognise the advan- 
 tages which accrue for all workers from adequate 
 
 holidays, nor do we desire to imply that munition 
 workers are not deserving of consideration, or that 
 a holiday would not be beneficial. Although it may 
 not be possible to prove it by statistics, we have no 
 doubt that much of the present industrial unrest is 
 due to the mental and physical strain which is being 
 placed not only on munition workers, but, to a greater 
 or lesser extent, on every class of the community 
 owing to the conditions of the War. We think, 
 therefore, that the whole question of holidays might 
 well be considered by the Government as a general 
 measure for the improvement of industrial conditions. 
 
 GERALD BELLHOUSE (Chairman). 
 
 F. D. ACLAND. 
 
 J. A. BARLOW. 
 
 W. H. BEVERIDGE. 
 
 H. B. BUTLER. 
 
 J. A. DALE. 
 
 R. DUMAS. 
 
 ERNEST JARDINE. 
 
 CHAS. A. LISTER. 
 
 D. S. MARJORIBANKS. 
 
 C. F. REY. 
 
 HUMBERT WOLFE. 
 
 NOTE. 
 
 We have felt some difficulty in signing either 
 Appendix “ A ” or Appendix “ B,” but we have 
 signed the former not because we think the munition 
 worker has no claim to a holiday on the ground 
 of exertion and would not be benefited by one, but 
 because we think the difficulties of discriminating 
 between them and other workers both on grounds of 
 equity and of practicability are insuperable for the 
 reasons which the Majority point out. On the other 
 hand, we do not think that they attach sufficient 
 
 weight to the beneficial effects which might be ex- 
 pected to accrue from an extension of holidays for 
 munition and other industrial workers, particularly 
 as a means of removing the strain caused by the war, 
 to which reference is made in paragraph 10 of 
 Appendix “A.” We entirely agree with the argu- 
 ments put forward by the well known employer quoted 
 in Paragraph 2 of the Report, and think they require 
 consideration as a matter of urgency. 
 
 F. D. ACLAND. 
 
 J. A. BARLOW. 
 
 W. H. BEVERIDGE. 
 H. B. BUTLER. 
 
 C. F. REY. 
 
 
15 
 
 APPENDIX B. 
 
 1. We agree that at the end of the war a holiday 
 for all classes of workers is desirable, and that such 
 a proposal would be preferable to a proposal for a 
 holiday confined to a particular class of workers. 
 
 If, however, the larger proposal is outside our 
 reference or involved in special difficulty, we would 
 recommend that a month’s holiday with pay should be 
 granted to munition workers. 
 
 2. The arguments against such a recommendation, as 
 they have been put on the Committee, may be briefly 
 summed up. 
 
 Firstly, it is said that discrimination between muni- 
 tion workers and other workers is impracticable. 
 
 Secondly, it is said that munition workers deserve 
 no more consideration from the community than other 
 workers. To this, somewhat inconsistently, the 
 further argument is added that a holiday granted to 
 munition workers would in practice be extended to 
 other classes of workers. It would seem to us to be 
 the case that if this did happen generally the proposal 
 to give all workers a holiday and the proposal to give 
 munition workers a holiday would have the same 
 effect. If, as is more probable, it happened partially, 
 part at any rate of the larger proposal would have been 
 achieved. So far as the argument is true that a holi- 
 day given to munition workers would be extended to 
 other workers, it seems to us to be in favour of our 
 recommendation. 
 
 3. Turning from this aspect of the question, can it 
 accurately be contended that in law and in- fact muni- 
 tion workers are not distinguishable from other 
 workers, and that they have not been subject to special 
 restrictions and hardships? 
 
 To answer the first of these questions, it is enough 
 to glance at the Munitions of War Acts, 1915-1917. 
 
 In these Acts the definition of munitions, and, in 
 consequence, of munition workers, has been drawn 
 with constantly increasing precision. Upon these defi- 
 nitions rests the power of the Ministry of Muni- 
 tions with regard to wages ; the control of factories ; 
 compulsory arbitration the prohibition of strikes and 
 lock-outs ; the imposition of special conditions of dis- 
 cipline : in short, the whole structure of the Acts. 
 Every decision of a Munitions Court and every deci- 
 sion of Arbitrators under Part I. implies that such n 
 line has, in fact, been drawn. 
 
 After nearly three years of administration of the 
 Acts it seems to us clear that munition workers are 
 identifiable from other classes of workers, and that the 
 administration of an order affecting them as regards 
 holidays would be attended by no more difficulty of 
 this kind than the administration of an order affecting 
 them as regards wages or working conditions. 
 
 4. The proposal, therefore, to entitle munition 
 workers, as such, to a holiday seems to us to be prac- 
 ticable. Hew far is it justified and desirable? 
 
 In this connection we desire to point out that the 
 law has imposed and imposes special restrictions on 
 munition workers. Thus a man may not cease to be a 
 munition worker though he may change from one firm 
 to another: thus, again, in controlled establishments 
 munition workers who infringe the disciplinary rules 
 of the factory may be guilty of a statutory offence, for 
 which they may be, and are, punished by fines. This, 
 
 in practice, means that bad time keeping is subject to 
 penalties often severe in proportion to the means of 
 the workers. In other establishments a man or a 
 woman, if tired or less well than usual, can at their 
 discretion take appropriate rest. It is obvious that 
 to make disciplinary offences punishable must be to 
 make the work more exacting. 
 
 5. In regard to much munition work it has also to 
 be noted that the application of the Factory Acts, 
 especially as regards night work and overtime, has 
 been relaxed. Night work for women has been for many 
 years entirely prohibited by law, but very large num- 
 bers of women are now working at night. Overtime, in 
 some cases excessive in amount, was practised widely 
 in many areas in the early stages of the war, and in 
 some instances it continues to be practised, while 
 ordinary working hours have been lengthened. The 
 incidence of overtime varies with the necessities of the 
 war. In the early period there was special pressure 
 on shell workers. This pressure has recently been 
 transferred to those engaged in the production of 
 aeroplanes and certain other types of work, while 
 probably most munition workers have recently been 
 obliged to put forward extra efforts. 
 
 6. It is true, moreover, that all classes of munition 
 workers are from time to time called upon to respond 
 to demands which impose upon them a strain of special 
 intensity and make an appeal to them different from 
 the appeals made to other classes of workers. Further, 
 certain classes of munition work, such as the making 
 of T.N.T., and of various nitrous components, the 
 filling of gas shells, and the manufacture generally of 
 explosive substances is unhealthy and dangerous. It 
 is no doubt true that these unhealthy and dangerous 
 processes are carefully watched by the Departments 
 concerned, but the elements of danger and strain in- 
 volved in them cannot be wholly eliminated by pre- 
 cautionary measures. 
 
 7. It needs also to be remembered that dilution in 
 munition factories has led to the employment of 
 women in much labouring work formerly considered as 
 unsuitable for them. It appears to us that in the 
 employment of women on such work, and in their em- 
 ployment during the night, are two features sharply 
 distinguishing them from other workers. From our 
 point of view it is not possible to contend that a body 
 of workers, all of whom have been subject to special 
 restrictions and some of whom have worked under 
 specially onerous conditions, have not a claim to special 
 consideration. 
 
 9. We have not, however, suggested that all such 
 workers should be given a holiday simultaneously. We 
 agree that such a proposal would be unworkable, and 
 that the holiday for each group of workers should, as 
 far as possible, coincide with the slack period in the 
 employment of the group. 
 
 We accordingly propose that every munition worker 
 should be entitled to a month’s holiday at the appro- 
 priate rate for day workers in their occupation at any 
 time during the year following the cessation of hostili- 
 ties. We feel that such a proposal is reasonable and 
 desirable, and we commend it to the consideration of 
 the Minister. 
 
 A. BELLAMY. 
 
 M. J. BELL-RICHARDS. 
 
 GEO. DALLAS. 
 
 A. SUSAN LAWRENCE. 
 
 J. J. MALLON. 
 
 MARION PHILLIPS. 
 
 ROBERT YOUNG. 
 
 A 4 
 
 20158 
 
16 
 
 CIVIL WAR WORKERS’ COMMITTEE. 
 
 FOURTH INTERIM REPORT. 
 
 To the Eight Hon. Christopher Addison, M.D., M.P. 
 
 Sir, 
 
 TV e have the honour to submit our Fourth Interim Eeport, in which we deal with ihe question of the 
 special arrangements which may be found necessary during an armistice. 
 
 1. The main problem which the Committee have had to consider is that arising from the final dispersal 
 of the munition workers and their re-instatement in normal employment, but a further problem, giving cause 
 for almost equal anxiety, will arise during the period preliminary to the actual termination of hostilities. 
 It is imjiossible to forecast precisely in what manner the war will come to an end, hut it is reasonable to 
 assume that there will be an armistice of longer or shorter duration, and it is necessary to contemplate the 
 possibility that in any event serious offensives will be suspended during peace negotiations. 
 
 2. It is evident that the question is primarily one affecting metal and chemical trades, since these trades 
 approximately cover the manufacture of destructive munitions. The magnitude of the problem will depend 
 largely upon the policy adopted in regard to the continued manufacture of munitions during the armistice 
 period and this in turn will be determined by the stocks in hand at the time. 
 
 In order to bring the stock of munitions up to the amount required, and in order to spread the work and 
 to avoid dislocation it seems desirable to the Committee that all workers, who cannot revert to peace work, 
 should be kept in their present employment as long as possible. We understand that, in certain classes of 
 munition work, various considerations such as storage would render it impossible to continue manufacture 
 for more than a few weeks. In order to avoid dislocation and to distribute employment as widely as possible, 
 we think that the workers should be put on short time. The system of working only alternate w r eeks or 
 alternate fortnights would in our opinion be the most satisfactory method except in winter. It is plainly 
 in the national interests that- the workers should be kept together during the critical early days of the 
 armistice, and that they should not lose the habit of regular work. But if they are to be compulsorily placed 
 on short time in this manner we are of opinion that the State ought to make up the wages actually earned 
 to an amount equal to half the time rate for a normal working week on day shift plus full war bonuses, with 
 a minimum wage the amount of which should be decided by the Ministry of Munitions when the time comes, 
 according to the circumstances then prevailing. To safeguard this arrangement we recommend that, while 
 any firm should be allowed to adopt the system for a period to be specified by the Department concerned, its 
 extension beyond such period should not be allowed without special sanction. Similarly any workers who 
 refuse to undertake full time work when it is available should not be entitled to the special terms suggested. 
 
 3. It will not be possible, however, to continue the manufacture of armaments after a limited period, and 
 on the cessation of production two alternatives will present themselves. Either (i) it will be necessary for a 
 certain period to retain the services of some or all of those at present engaged on munitions and not allow 
 them to disperse until it is known whether peace will ensue; or (ii) a large number of workpeople, comprising 
 semi-skilled and unskilled male and female workers who had previously been engaged in munitions industries, 
 would have to seek employment elsewhere. 
 
 4. The possible ways of meeting these two alternatives may now be considered. 
 
 (i) Retention of Munition W orlcers . — If any munition workers are prevented from obtaining otkei 
 work because their services must be kept immediately available for war purposes, it is clear that the State 
 would have to bear the burden of maintaining them. We would, therefore, recommend that in this case, 
 as in the case of workers placed on short time, the State should pay to the workers so retained half then 
 ordinary time rate for the normal working week on day shift plus war bonuses. We think, however, that 
 the retention of workers under these conditions should only be allowed when there is a real necessity, 
 and it should be clearly understood that no workers are to be retained without the previous sanction of 
 the Department concerned. An arrangement of this kind would obviously mean a great waste of laboui 
 and could not in any case continue for more than a short period, even during an armistice. To keep 
 the whole -of the metal and chemical trades in a state of suspense for a long time would create great difficulties 
 
17 
 
 m all the belligerent countries, and this fact will no doubt have a powerful influence towards curtailing 
 any armistice that may take place. 
 
 (ii) Discharge of Munition Workers . — In the somewhat unlikely event of a long armistice taking place 
 under conditions which might be followed by a resumption of hostilities, it would be necessary to face the 
 second alternative, that all those who are not required for the repair and maintenance of plant, etc., will 
 be thrown out of employment, with a diminished prospect of finding it, owing to reservation of certain 
 raw materials for war purposes and the general necessity of maintaining industry on a war footing. 
 We have had under our consideration how far it may be safe and proper to allow these workers to dis- 
 perse, and in this connection we have consulted representatives of the Engineering Employers’ 
 Federation and the Employment Department of the Ministry of Labour. Both take the view that there 
 would be no serious danger of not being able to collect them together again in time to enable the factories 
 to resume full output within a period of six weeks to two months after a recommencement of hostilities. 
 We think, however, that the position should be safeguarded as far as possible, and with this object in 
 view we recommend that employers should give the longest possible notice of impending discharges 
 to the Employment Exchanges, who should keep a register of all workers, with their names and present 
 addresses and the addresses to which they propose to remove. It may be desirable, too, to supply each worker 
 with a postcard on which to notify to the Local Exchange any change of address. We think that the details 
 of such arrangements can safely be left to the Employment Department to work out. 
 
 5. We feel very strongly that special measures should be taken to find temporary occupation for the 
 workers so released. We recommend that further employment should be provided by affording every possible 
 facility for carrying out necessary repairs in the factories. It should be possible, too, to divert raw material, 
 no longer needed for munitions, to other uses, and in particular to such purposes as the manufacture of 
 railway material and other things which are of value both for war and peace. We recommend also that 
 arrangements should be made for the temporary transfer of workers to marine engineering, shipbuilding, 
 and other work of national importance in all districts where such alternative work is available. We believe 
 that in this way full employment could probably be found for the majority of the skilled male workers, for 
 many of the unskilled males and for some of the semi-skilled males. Opportunity should also be taken to 
 supply manufacturers with raw material which will furnish them with the means of turning over at once 
 to after-war occupations. Again, advantage should be taken of this period to make preparation for all kinds 
 of after-war work. Before any extensive building scheme, for example, can be put in hand, bricks, stone 
 and cement will be required, and many of the unskilled workers in the munition factories are well qualified 
 to undertake such work. A list of trades should be made where such employment appears possible. 
 
 6. Again, there is much municipal work which has necessarily been neglected during the war, but which 
 the Local Authorities could take in hand as soon as opportunity offers. We think the Local Government 
 Board might circularise such Authorities, indicating what materials are likely to be available, and urge them 
 to consider what temporary use they could make of local labour. Much labour could be absorbed in road 
 mending, repairs, cleaning, etc., and demolition. This particular problem of employing large numbers of 
 persons for a short period has never been brought to the attention of the public authorities, though they 
 have been asked to prepare housing and other schemes, to be put into operation at the conclusion of the war. 
 
 7. Two very serious difficulties however present themselves. First, the cost of labour and raw materials 
 during the armistice period will still be prohibitive and, secondly, no Local Authority would care to con- 
 centrate its “odd job ” work in a few months — as this would mean heaping the expenditure on to one year’s 
 rates. Unless they can be given some special financial assistance their natural desire will be to spread their 
 arrears of work over a term of years, and we think, therefore, that some special inducement should be offered. 
 
 Three alternative suggestions may be made as to the form which this should take : — 
 
 (1) That a grant in aid should be given, amounting to not less than 10 per cent, of the total cost of the 
 
 special works carried out. 
 
 (2) That municipalities should be enabled to borrow the capital sum required for such works from the 
 
 Treasury free of interest. 
 
 (3) That municipalities should use the labour of those persons who have lost their employment as a 
 
 result of the cessation of hostilities, and pay them only the difference between their unemploy- 
 ment pay and the standard rate of wages for the work performed, the workers continuing to 
 draw unemployment pay from the State (whether at the normal rate, or at a special rate 
 fixed for the armistice period), on condition that they accepted any work which was assigned to 
 them on this basis. 
 
 8. The question of the extent to which special travelling facilities should be granted to certain classes 
 of workers during the armistice has also been considered. We are of opinion that free railway passes should 
 be issued only to those persons who have changed their place of residence for the purpose of taking up 
 work on munitions or on Naval or Army contracts, and who have been displaced from such employment 
 owing to the cessation of hostilities. In such cases the worker should have the option of having his fare 
 paid either to his usual place of residence, or to some other place at which work is available for him. In 
 the event of hostilities being resumed, railway passes should again be issued to those workers who may be 
 recalled. 
 
 9. Finally, the case of those for whom no employment can be found must be considered. If a worker 
 is free to obtain other employment there is clearly not the same obligation on the State as there is in the 
 ease where his services are retained, but it must, at the same time, be remembered that during an armistice 
 which might be followed by a resumption of hostilities the prospects of employment will be artificially limited, 
 since the State will restrict the extent to which industry can return to peace' production. There would thus 
 be an exceptional obligation created for the State. In the last resort, no one would deny that if a desperate 
 situation as regards employment were to arise, it would be necessary to adopt heroic remedies. There is no 
 possible analogy in ordinary times to the industrial situation which will exist during’ an armistice or immedi- 
 ately after the war, and it does not seem to us possible to apply to these periods the ordinary canons as regards 
 
 A 5 
 
 20158 
 
18 
 
 unemployment insurance. The ordinary unemployment benefit has never, either in the view of the State or 
 of the Trade Unions, been anything’ like a maintenance wage, because it was only designed to tide the 
 recipient over a period which was not likely to be prolonged ; hence, a small sum like that of 75 . a week 
 was just enough to help a man through a difficult time and did not pretend to do anything more. On the 
 other hand, as soon as it becomes a question of employment being so limited through shortage of raw material 
 or other emergency (as, for example, in the cotton trade during the past year), and there is a prospect of 
 unemployment being inevitable for a large number of people for a considerable time, it at once becomes 
 necessary that the benefit should approximate to a maintenance wage, as it does in the cotton industry. 
 This distinction must be recognised in dealing with the period of an armistice and the period of demobili- 
 sation. In our opinion, therefore, it is necessary to contemplate the possibility of a situation arising during 
 an armistice in which the ordinary unemployment benefit, even on an enhanced scale of 155 . for men and 
 125. for women, might prove inadequate. At the same time, it would be a mistake to adopt heroic remedies 
 and to pay unemployment benefit at a rate which was totally unnecessary, based on fears for the future rather 
 than on a knowledge of the actual conditions of the moment. As has already been pointed out, the difficulties 
 of an armistice will vary very considerably according to the conditions under which it takes place. It is 
 impossible to attempt to say beforehand what sum will be required in order to deal with the consequent unem- 
 ployment. It is not even certain that the same rate of benefit will be desirable during the whole period. We, 
 therefore, suggest that the right method of dealing with the problem is to leave the base rate for unemploy- 
 ment benefit unaltered at whatever sum is finally fixed and to give the Minister of Labour power, on the 
 advice of the Labour Resettlement Committee, and with the consent of the Treasury, to increase it should 
 circumstances make it necessary. It should be made clear that any addition so made is of a purely temporary 
 character analogous to the war bonus, which may be withdrawn in the same manner in which it was granted. 
 
 10. The amount of this additional benefit, if any, must be determined according to the cost of living 
 at the time, and it is difficult therefore to make any definite suggestions now. On the other hand there must 
 be no delay in bringing the scheme into operation should the necessity for it arise. We think, therefore, 
 that the Labour Resettlement Committee should take the earliest opportunity of considering the question 
 and should construct a provisional scale of allowances based on present prices, which could be brought into 
 operation at once with the necessary modifications when the need for action arises. We think it preferable 
 that the allowance should not take the form of a flat rate, but that unless the administrative difficulties are 
 thought to be insuperable, account should be taken of the number of dependent children under 14 years of 
 age. We have considered too, whether account should not also be taken of a wife or other dependants, but 
 have come to the conclusion that to do so would only lead to unnecessary administrative complications. 
 
 11. We think that in practice it will be impossible to limit this extra allowance to the actual period 
 of the armistice. There would certainly be complaints that there was nothing in the way of immediately 
 improved prospects of employment or of an immediate fall in prices to justify a reduction in unemployment 
 benefit on the day that peace is signed. We think, therefore, that the power which it is proposed should be 
 given to the Minister of Labour should be continued for a limited period after the end of the armistice, for 
 such time as the conditions causing exceptional unemployment and due to the cessation of hostilities still 
 prevail. 
 
 We have come to the conclusion too that on administrative and other grounds, which have been Lilly 
 discussed in our Second and Third Interim Reports, it is impossible to grant such special benefits to munitions 
 workers without at the same time extending them to other classes of workers. We recommend, therefore, 
 that the proposal for supplementary benefits should be applied generally. In practice, however, the number 
 of such other workers who will be affected by our present proposals is likely to be almost negligible. 
 
 12. The suggestions made on this question may be summarised as follows : — 
 
 (1) The industrial conditions during an armistice must vary considerably according to the circum- 
 
 stances in which it takes place. 
 
 (2) So long as the production of armaments continues employment should be distributed as widely as 
 
 possible by means of the half-time system: half the time rate for the normal working week on 
 day shift plus war bonuses should be paid in such a case, with a minimum wage to be decided 
 by the Ministry of Munitions. 
 
 (3) If the conditions demand the retention of munition workers without work in view of a possible 
 
 resumption of hostilities, it would be necessary for the State to bear the burden of their main- 
 tenance by the payment of half the time rate for the normal working week on day shift plus 
 war bonuses. 
 
 (4) If on the other hand workers are discharged in large numbers, special arrangements should be 
 
 % • made to transfer as many as possible to other work of national importance, and some form of 
 
 financial assistance should be offered to municipalities as an inducement to provide temporary 
 work. 
 
 (5) Subject to certain conditions free railway passes should be issued to discharged workers who 
 
 have been employed on munitions or on Naval or Army contracts. 
 
 (6) (a) In order to meet the case of those who are not provided for under recommendations (2), (3), and 
 
 (4), it may be necessary to take exceptional measures, if there is a prospect of acute unemploy- 
 ment due to shortage of raw materials, shipping, &c. The unemployment benefit payable in 
 such exceptional circumstances would have to be on a maintenance scale, and we recommend 
 that it should consist of the ordinary flat rate of unemployment pay, plus a supplementary 
 allowance. 
 
 (b) The Minister of Labour should be given power, on the advice of the Labour Resettle- 
 ment Committee, to authorise the payment of the supplementary allowance during a specified 
 period. 
 
 (c) In order that there may be no delay in giving effect to these recommendations if and 
 when the need arises, a provisional scale of supplementary allowances, based on present prices, 
 should be drawn up as soon as possible by the Labour Resettlement Committee. 
 
19 
 
 ( d ) This scale should take into account (1) the number of dependent children under 14 
 years of age, and (2) the current cost of living. 
 
 (e) It would be impossible to differentiate sharply between the period of armistice and the 
 early period of demobilisation and any measures in regard to unemployment benefit adopted 
 for the first period should therefore be applicable to the second also. 
 
 (/) These measures should not be confined to munition workers, but should be of general 
 application. 
 
 We have the honour to be, 
 
 Sir, 
 
 Your obedient Servants, 
 
 GERALD BELLHOUSE {Chairman). 
 
 F. D. ACLAND. 
 
 J. A. BARLOW. 
 
 A. BELLAMY. 
 
 W. H. BEVERIDGE. 
 
 H. B. BUTLER. 
 
 J. A. DALE. 
 
 G. DALLAS. 
 
 R. DUMAS. 
 
 ERNEST JARDINE. 
 
 A. SUSAN LAWRENCE. 
 
 CHAS. A. LISTER. 
 
 J. J. MALLON. 
 
 D. S. MARJORIBANKS. 
 
 MARION PHILLIPS. 
 
 C. E. REY. 
 
 ROBERT YOUNG. 
 
 HUMBERT WOLFE. 
 
 V K. LEACH, 
 
 Secretary . 
 
 22nd August, 1918. 
 
20 
 
 CIVIL WAR WORKERS’ COMMITTEE. 
 
 FIFTH INTERIM REPORT. 
 
 To The Rt. Hon. Christopher Addison, M.D., M.P. 
 
 Sir, 
 
 1. We have the honour to submit our Fifth Interim Report, which is in effect, a continua- 
 tion of our First Report, and deals with various miscellaneous questions which we had reserved 
 for further consideration. 
 
 EXTENT OF THE PROBLEM. 
 
 2. The following table extracted from the Board of Trade returns for January, 1918, gives 
 some indication as to the changes which have taken place in industry since the commencement 
 of the war. 
 
 Summary op the State op Employment compared with July, 1914 , and 
 Enlistment in the United Kingdom in January, 1918 . 
 
 
 
 
 Males. 
 
 
 
 
 Females. 
 
 
 — 
 
 Estimated 
 
 number 
 
 employed, 
 
 Left to 
 join the 
 Forces. 
 
 Employed 
 in Jan., 
 1918. 
 
 Consequent 
 
 net 
 
 replacement 
 (+) or 
 
 Expansion (+) or 
 contraction ( — ) since 
 July, 1914. 
 
 Estimated 
 
 number 
 
 employed, 
 
 Expansion (+) or 
 contraction (— ) since 
 July, 1914. 
 
 
 July, 1914. 
 
 displacement 
 
 (-)■ 
 
 Numbers. 
 
 Per cent. 
 
 July, i914. 
 
 Numbers. 
 
 Per cent. 
 
 Total Industries 
 
 6,163,000 
 
 2,501,000 
 
 4,947,000 
 
 + 1,285,000 
 
 —1,216,000 
 
 - 19-7 
 
 2,175,500 
 
 + 533,000 
 
 + 24-5 
 
 Gas, water and 
 electricity un- 
 der local au- 
 thorities 
 
 63,000 
 
 21,000 
 
 55,000 
 
 + 13,000 
 
 - 8,000 
 
 — 13-2 
 
 600 
 
 + 4,500 
 
 + 743-5 
 
 Government es- 
 tablishment ... 
 
 75,000 
 
 42,000 
 
 256,000 
 
 + 223,000 
 
 + 181,000 
 
 +241-9 
 
 2,000 
 
 + 207,500 
 
 + 10,127-1 
 
 Total Industries 
 and Municipal 
 and Govern- 
 ment esta- 
 blishment ... 
 
 6,301,000 
 
 2,564,000 
 
 5,258,000 
 
 +1,521,000 
 
 -1,043,000 
 
 - 16-6 
 
 2,178,100 
 
 + 745,000 
 
 + 34-2 
 
 3. In our First Interim Report we stated that we were making further enquiries on various 
 points which would affect displacements in the Munitions Trades after the war, and we have 
 now been furnished by the Ministry of Munitions with estimates of the number of persons con- 
 cerned. For convenience of reference, it may be pointed out here that the total figures for 
 Munition Industries roughly coincide with those given under the head of Metal and Chemical 
 Trades in the later paragraphs of this Report. 
 
 Munition workers fall into two main groups : — (1) Those employed on destructive munitions ; 
 (2) those employed on work which can be used for civilian purposes. From the first group it 
 is estimated that 180,000 males and 65,000 females will continue to be employed on the same 
 work after the war, but that 480,000 men and 420,000 women will lose their employment. The 
 second group includes dilutees and substitutes, to the number of some 600,000 men and 85,000 
 women. Dilutees in the strict sense will, in the absence of further agreements with the Trade 
 Unions, presumably be displaced, but it appears probable that many of the substitutes will be 
 retained. The position is, however, likely to be materially affected by the operation of the 
 Military Service (No. 2) Act, 1918, so that later returns may show that, considerable alterations 
 in these estimates are necessary. 
 
 Whatever the total number of discharges may be, they will in all probability be spread 
 over a considerable period. Even in the case of destructive munitions a period varying from 
 seven days to six months — four weeks being the commonest — is specified in the Break Clause of 
 
21 
 
 Munitions Contracts. In the case of guns, the period is ordinarily three months or even nine 
 months, and in the case of aeroplanes and aero-engines it is proposed that two, three or four 
 months’ output might be spread over a six months’ period. From estimates which have been 
 put forward it appears that of the total numbers employed at National factories about 64 per 
 cent, will be dismissed immediately, and about 33 per cent, within the following twelve months ; 
 though it is impossible to forecast the rate of discharge with any certainty, the dismissal of the 
 33 per cent, will probably, in the majority of cases, take effect within the first three months. 
 
 DEMOBILISATION OF WOMEN. 
 
 4. We have already indicated in our First Interim Report that one of the most serious 
 problems which will have to he faced is that arising from the discharge of women at the end 
 of the War. Since July, 1914, very nearly 1,500,000 extra women have been drawn into 
 industry and commerce. Of these, 650,000 are engaged in the metal and chemical trades, 
 and we have already shown that a large proportion of them will necessarily have to be 
 discharged under the terms of Munitions of War Acts, unless before the end of the W T ar is 
 reached some new agreement is effected with the Trade Unions concerned. No doubt a 
 considerable proportion of these women were unemployed before the War and will return to 
 their domestic duties when it is over. On the other hand, many such, having acquired the 
 wage-earning habit, will wish to continue in employment. In our opinion the whole situation 
 will be profoundly affected by a settlement of the War Pledges question. Until the position 
 of the Unions in this respect is clearly established, it is hardly practicable for them to enter 
 into negotiations regarding the future position of women. We understand that a Bill 
 is at present being drafted to make the position clear, and we would urge that it should be 
 brought before Parliament and passed into law at the earliest possible date. For the 
 rest, reliance must be placed upon the Employment Exchanges to cope with the problem. 
 Its magnitude has no doubt already been recognised by the Ministry of Labour, and we hope 
 that the organisation of the Women’s Branch of the Employment Department will be closely 
 examined so that its ability to deal with these large numbers may be fully assured. 
 
 DEMOBILISATION OF JUVENILES. 
 
 5. While the recommendations made in regard to munition workers generally may be 
 expected in some degree to relieve the situation in regard to young persons as well as adults, 
 it is felt that the demobilisation of young persons presents a problem more complex and 
 in some respects more serious than any arising out of the demobilisation of adults. Through 
 the shortage of labour thousands of boys and girls, leaving school at the earliest possible age, 
 and without receiving any further course of training, have been readily absorbed in the labour 
 market. They have been receiving wages in many cases. far higher than were paid in pre-war 
 days to skilled workers, while much of their work lias been uneducative and not such as to 
 provide any real training for future occupation. Frequently, too, home control has been lost 
 through the absence of the father or through the financial Independence so suddenly acquired. 
 At the same time, it must be remembered that the loss of life among the generation imme- 
 diately ahead has thrust upon the boys greater responsibilities for the future and renders it 
 an imperative necessity to prevent any wastage of the human material that is left. 
 
 6. The Committee, therefore, view with great concern the prospect of large numbers of 
 young persons, displaced from employment at the end of the war, being allowed to drift into 
 idleness at an age when training and occupation are of essential importance in their effect upon 
 character, and they feel that the extent of the danger is such that comprehensive schemes for 
 meeting it must be worked out in advance. 
 
 7. In this connection we have taken evidence from Mr. It. A. Bray, Chairman of the 
 London Juvenile Advisory Committee, from Mr. It. C. Davison, who is in charge of the Juvenile 
 Section of the Employment Department of the Ministry of Labour, and from Mr. E. E. 
 Chambers, of the Board of Education. We have also had before us the proposals which Mr. Bray 
 submitted to the Ministry of Munitions, and which have been published in pamphlet form 
 (M. 37) under the title of “ The Problem of Juvenile Employment after the War.” We find 
 ourselves in very general agreement with all the main points, which may be briefly recapitulated 
 here together with some observations and suggestions of our own. They may be dealt with under 
 the following heads : — 
 
 (1) Control of the problem ; 
 
 (2) Limitation of the supply of new entrants ; and 
 
 (3) Provisions for juveniles unemployed. 
 
 8. Control of the problem . — The principal controlling agency must be the Employment 
 Department of the Ministry of Labour, and it is essential therefore in the first place that, the 
 Employment Exchanges .should be fully equipped and prepared to deal with the large number 
 of ajjplicants that may be anticipated. Under the present arrangements the Exchanges are 
 assisted in some areas by the Juvenile Advisory Committees appointed by the Ministry of 
 Labour and in other areas by Choice of Employment Committees appointed by the Local 
 Education Authorities under the Choice of Employment Act. It is evident that these Com- 
 mittees must play a very important part in the re-settlement of juveniles. 
 
 9. Such Committees will, therefore, be necessary in all the principal industrial areas, but 
 until comparatively recently there were many important areas without them. Thus, the 
 
22 
 
 lollowing statement appears in the First Interim Report of the Departmental Committee on 
 • Juvenile Education in Relation to Employment after the War: — 
 
 “ Although local committees have been established in some 60 county boroughs and some 40 smaller 
 towns, the Committee call attention to the fact that such provision is still required in 20 county boroughs 
 (some of them large towns with a population over 200,000), and in some 130 smaller towns and large urban 
 districts.” 
 
 The Committee have, however, been glad to learn from Mr. Davison that the difficulties 
 which stood in the way of the more rapid increase in those Committees have now been largely 
 overcome, and that since the report referred to was published 76 extra Committees have been, 
 or are being, appointed, and that there are now only 48 towns with a population of 20,000 
 or over in which no steps have yet been taken to appoint a Committee. We have no informa- 
 tion as to whether any of the areas still unprovided for can properly be described as industrial 
 areas in which there is likely to be much dislocation in employment, but if there are any such 
 we hope that steps will be taken to set up Committees forthwith. 
 
 10. It is equally essential that the Committees should be properly constituted and should 
 have on them representative employers and trade unionists who will carry sufficient weight 
 in their particular districts effectively to bring home to employers the gravity of the problem 
 and to secure the co-operation of all concerned in dealing with it. We recommend that both 
 the Ministry of Labour and the Board of Education should closely examine the situation from 
 this point of view and take steps, where such a course may prove desirable, to add to the 
 Committees representative employers and trade unionists to assist in carrying through the 
 work. 
 
 11. We think it desirable that there should be direct connection between the Juvenile 
 Committees and the Local Advisory Committees. We understand that the Juvenile Committees 
 are asked to appoint a representative to serve on the Local Advisory Committees, but we think 
 that the machinery should be strengthened and that Joint Sub-Committees should be set up 
 to deal with the problem during the transition period. The Local Advisory Committees will 
 have before them a general picture of the state of employment and of the labour situation in 
 their areas, and the work of the Juvenile Committees would be greatly facilitated by such 
 information being fully available also to them. 
 
 12. Mr. Bray has pointed out that control of the problem requires the co-operation of 
 employers, and that co-operation on their part in turn demands a full realisation of the need 
 for action. We cordially agree, and we support liis recommendation that steps should be taken 
 by the Government to appeal to employers with all the means at their command to assist in 
 dealing with the question. Those employers who will find themselves obliged to discharge 
 juveniles should be urged to give the earliest possible notice of individual discharges to the 
 Employment Exchanges, while those in need of such labour should be pressed to obtain it 
 through the same channel. Steps should be taken locally to follow up a general appeal of 
 this kind. We agree with Mr. Bray that much can. be done both by the Exchange Officers 
 and by the Juvenile Committees; the former by a special canvass amongst the principal 
 employers with a view to securing their assistance, the latter, assuming that they are properly 
 constituted, by organising special meetings of employers and trade unionists. We recommend 
 that action should be taken on these lines. 
 
 13. Limitation of the Supply of New Entrants . — The difficulty of replacing the juveniles 
 discharged from munition work must necessarily be increased by the arrival in the labour 
 market of children leaving school. There was, moreover, in many instances prior to the war 
 a preference on the part of employers for boys or girls fresh from school rather than for those 
 who had already had a factory experience. It may be anticipated that this tendency 
 will be even more noticeable after the war, more particularly in the case of boys, since the 
 unusually heavy work, long hours, and high wages have combined to lead to their demoralisation 
 and to render them unlikely therefore to settle down quickly to more normal occupation. 
 The situation would have been largely met if the provisions of the new Education Bill 
 could have been brought into operation before the end of the war. The raising of the age 
 for leaving school to 14 years would in itself have shut out a large number of children, more 
 particularly in many of the chief industrial areas, while the arrangements for attendance at 
 Continuation Schools would likewise have tended to increase the volume of employment, since 
 they would necessitate in many factories what may be described as relief shifts to carry on 
 the work while other boys or girls are at school. There will, doubtless, be areas in which 
 there will be a large surplus of juveniles for whom no employment can be found immediately, 
 and we think that in such a case the Board of Education might well consider whether they 
 should not obtain emergency powers to retain children at school for an additional period 
 where the Local Education Authorities consider it necessary and advisable to do so. 
 
 14. Provisions for Unemployed Juveniles . — Even after all the proposals enumerated 
 above have been carried through, it is certain that there will be numbers of young persons 
 who, for a shorter or longer period, will be left without employment, and it is of the highest 
 importance -that they should as far as possible be kept under some form of control. It is 
 generally agreed by all those who are most competent to judge that it would be impracticable 
 to enforce the return of such children to school and that they would benefit little from the 
 educational point of view even if they went there. We feel it desirable, however, that steps 
 should be taken to organise in areas where the problem is likely to be acute, what may be 
 described as “Centres” to be worked in conjunction with the Employment Exchanges, the 
 Local Education Authorities, the Juvenile Organisations Committees and Local Voluntary 
 Organisations. At these Centres occupation rather than education in its more generally accepted 
 sense should be providedj and we think that details as to this and as to hours of attendance 
 
23 
 
 might well be left to the Local Education Authorities to determine. It would not be practicable 
 even at those places to compel attendance; but much could he done by offering inducements. 
 The Employment Exchanges, for instance, would be in constant touch with such places, and 
 it should be made clear to applicants at the Exchanges that a preference will be given to those 
 children who attend at the Centres. There is also the question of paying those who attend 
 some maintenance allowance. Persons under 17 years are not eligible for unemployment 
 insurance benefit, but we think that in the special circumstances that will arise a non-con- 
 tributory grant, payable by the State through the Employment Exchanges, might be made to 
 such persons when no employment can be found for them, on the condition that they attend 
 the Centres. 
 
 15. We have not thought it necessary nor strictly within our terms of reference to enlarge 
 upon the constitution of Centres. We think, however, that they should generally follow the 
 lines of the experiments that were carried out in London in the early days of the war, and 
 that it should be the duty of the Employment Exchanges apd the Juvenile Advisory Com- 
 mittees to take the initiative in their formation. It might be desirable in some instances to 
 establish a Juvenile Exchange at the Centre. 
 
 16. There is one final point to which the Committee also desire to direct attention. The 
 abnormal demand for boys for unskilled work has caused many of them to miss their opportunity 
 of apprenticeship to skilled trades, and they have now passed the age when they can normally 
 be apprenticed. We understand that in a number of industries arrangements have been made 
 for special apprenticeships for returning soldiers. We hope it may he possible for organisa- 
 tions of employers and employed to carry through some similar scheme for these older boys. 
 We feel that it is their case which will present the most serious difficulty when the demobilisation 
 of the munition workers takes place, and we think that a scheme of apprenticeship would do 
 something at all events to help to meet it. The utilisation of the technical schools and training 
 centres instituted by the Ministry of Munitions would offer facilities for such training. 
 
 ORDER OF DISCHARGE. 
 
 17. The Committee have had under their consideration the question as to whether anything 
 can be done to regulate the order of discharge from armament works so as to provide that those 
 workers shall be released first who, on account of their previous experience, are most urgently 
 needed in other industries, an arrangement which is to be carried out in connection with the 
 demobilisation of soldiers. We have heard from one employer who gave evidence before us 
 that he had prepared a register of all the women workers, showing their previous occupations, 
 and that he hoped to he able to regulate the order of discharge accordingly. We fear, however, 
 that there is little hope of anything being accomplished on a large scale. The munition worker 
 is not subject to discipline as is the soldier, and he certainly could not be made to await his dis- 
 charge from any particular employment if he desired to leave. In many cases too, the cessation 
 of the manufacture of munitions will come abruptly, and the numbers to be discharged at the 
 same time will render any selection on the lines proposed impossible. We find ourselves there- 
 fore reluctantly unable to make any general recommendations on this point. It may be possible 
 to do something in individual works, and we hope that the Local Advisory Committees where 
 they have the opportunity will bring the proposal to the notice of employers. We think, too, 
 that an appeal should be made to the large number of women who took up work in munitions 
 factories and elsewhere from patriotic motives, and who have independent means of subsistence, co 
 show their patriotism again by voluntarily withdrawing their services as soon as the demand for 
 supplies begins to fall off. 
 
 PREPARATIONS FOR POST-WAR WORE. 
 
 18. The Committee have had under their further consideration the proposals which they 
 made in their First Interim Report that Government Departments, public bodies, and 
 employers in the staple trades should prepare in advance schemes for post-war work, an arrange- 
 ment to which we attach great importance. We are satisfied that if definite plans can be made, 
 and definite contracts assured, before the war ends, the transfer from war to peace occupations 
 will be enormously facilitated and the dislocation of labour consequently materially reduced. 
 The Committee have not overlooked the difficulties that must arise as to prices. Those who have 
 contracts to place on the one hand may be inclined to hold their hands until market prices become 
 more settled, while on the other contractors may equally hesitate to accept orders for the same 
 reason. But the Government can, in our opinion, do much to remove this difficulty. They will 
 themselves have large orders of different kinds to place, and if they will place those on a 
 “costing ” basis, e.g., costs plus a lump sum for profits, they will ensure that prices paid are 
 not excessive and will probably set up a standard of prices which is likely to be generally 
 followed. 
 
 19. In this connection we desire to direct particular attention to the work which will have 
 to be undertaken to rebuild and refurnish the towns in Belgium and Northern France. It 
 appears probable that the resources of these countries at the end of the war will not be such as to 
 enable them to carry out with the requisite speed all the work of reconstruction which will be 
 necessary before their industries can be placed again upon their old footing, and that they will 
 therefore desire to place contracts elsewhere. We think that stejis should be taken now to 
 investigate the position and to ascertain precisely what will be required. 
 
 20. We therefore recommend that the Government should consider the appointment of an 
 International Commission to carry through such investigation and to prepare a schedule of 
 
24 
 
 contracts. When this work has been accomplished it will be necessary to consider further in 
 conjunction with influential bodies of employers on what terms such contracts can be placed. 
 
 21. Questions as to financial guarantees will no doubt arise, but these fall outside our terms 
 of reference, and we do not therefore offer any suggestion. For the same reason we have not 
 thought it right to enlarge upon the broader commercial benefits that would follow for this 
 country and for the Allies from an early resettlement of the devastated areas, and a consequent 
 preparedness to resume commercial activities. We have considered the question purely from the 
 point of view of the demobilisation of civil workers, which will, we believe, be assisted in two 
 ways by the proposals which we make — first by providing employment at home, and, secondly, 
 by giving the opportunity of employment abroad to men already in France. There will possibly 
 be large numbers of men in the Army at the end of the war who, feeling doubtful as to 
 their prospects of finding employment again in their old occupations at home, would be willing 
 to take up employment in Belgium or France if it were immediately available for them on suitable 
 terms. 
 
 CO-ORDINATION BETWEEN GOVERNMENT DEPARTMENTS. 
 
 22. During the course of our enquiry we have been strongly impressed by the importance 
 of active co-operation between the different Government Departments. At the present time the 
 greater part of the industry of the country — including all trades that depend upon imported 
 materials, a great number of trades using material which is also needed for munitions, and 
 trades manufacturing articles for the Government itself — is under some degree of State control. 
 Besides the general powers of the Import and Export Restriction Committee, committees deal 
 with the supply of a very long list of miscellaneous raw materials. This state of affairs cannot 
 disappear with the cessation of hostilities, and it is almost certain that for some time the Govern- 
 ment control over raw material must continue, and that Government demand for goods cannot 
 become normal until our forces have been disbanded. During the whole period of demobilisation, 
 therefore, employment in different trades and localities must be largely affected by the action 
 of the Government. 
 
 23. It is clear that the above mentioned powers should not be exercised without due con- 
 cern for the workers, and that it is the duty of the Government (a) to give the longest possible 
 notice to those concerned, (b) to facilitate the transfer of labour, (c) to spread the volume of 
 emjfioyment as evenly as possible over the country. 
 
 24. These objects cannot be attained without the interchange of information between the 
 Departments concerned, and without some co-ordinating authority. At the present time, the 
 rationing of different materials to various industries is in the hands of independent Departments, 
 and the placing of Government contracts in the hands of many more. Each Department acts, 
 and must necessarily act, in the interest of the particular duty assigned to it. Such unco- 
 ordinated action might result in some towns suffering from widespread unemployment, while in 
 others a brisk and even an unsatisfied demand for labour might exist. It is essential therefore 
 that the Ministry of Labour should be forewarned, and kept fully informed of any action by a 
 Government Department that is likely to affect employment, and that they should have an 
 opportunity to express their opinion on the labour questions involved. 
 
 25. In order to secure effective co-ordination we recommend that a Committee should be 
 set up on which both the Supply Departments and the Labour Departments should be repre- 
 sented. It is important, moreover, in order that co-ordination may also be ensured between the 
 different sections of each Department that the officers selected as representatives should be in a 
 position to speak for their Department as a whole, and not merely for some particular branch of 
 it. 
 
 26. We are of opinion that the Departments to be represented should be: (1) The three 
 chief contracting departments — Ministry of Munitions, Admiralty and War Office ; (2) the 
 Ministry of Labour and Board of Trade, as being concerned with the labour and industrial 
 questions involved ; (3) the Local Government Board, as the body responsible for housing schemes 
 and other works undertaken by Local Authorities ; (4) the Ministry of Reconstruction ; and al§p 
 (5) any body that may be set up to deal with the allocation of raw materials. 
 
 We suggest that the duties of such Committee should be defined in some such terms as the 
 following : — 
 
 (a) To collect all information as to any action by Departments which may affect the 
 
 supply of labour ; 
 
 (b) to 'advise as to the methods by which, and areas in which, reductions in labour 
 
 rendered necessary through modification of contracts should be effected, with a view 
 to minimising the dislocation of employment. 
 
 GOVERNMENT CONTRACTS OTHER THAN THOSE FOR ARMAMENTS. 
 
 27. The problem here is quite unlike that which we have hitherto considered. Whereas it 
 has been necessary in the case of armaments to create new industries and new establishments, in 
 the case of other Government contracts requirements have, broadly speaking, and with a 
 few minor exceptions, been met by expanding and developing existing industries rather than by 
 setting up new ones. Similarly, whereas the manufacture of armaments will, so far as the vast 
 majority of the factories are concerned, entirely cease at the end of the war, firms now engaged on 
 other kinds of Government work will, when present contracts cease, continue to make the same or 
 very similar articles for. civilian use. The dislocation in these trades is therefore likely to be very 
 much less than that which is to be anticipated amongst workers engaged on the manufacture of 
 armaments. 
 
25 
 
 28. Evidence in this connection lias beeD taken from representatives of the Contracts 
 Departments of the War Office and the Admiralty. The contracts cover a large variety of 
 articles, but there are few cases in which Army requirements have involved the setting up of new 
 industries which will not lie required after the war. Badges and military accoutrements, mess- 
 tins, web-equipment and certain other military supplies would have little or no civilian market 
 comparable to war output. They are, however, of a similar nature to the normal products of 
 industry, and there should therefore be little difficulty in reverting to normal production. Of 
 the remainder the goods now furnished to the Army differ little, if at all, from those produced 
 for private consumption. It has to be recognised, however, that in some cases ( e.g ., cptlery and 
 saddlery) Army requirements have been on such a scale as to necessitate a wide expansion of 
 industry, and it is improbable that peace-time demands will be capable at once of taking up 
 production on its present scale. In such cases, therefore, there must be some displacement of 
 labour. 
 
 29. As regards Admiralty contracts there is every probability that in shipbuilding and 
 marine engineering, which employ somewhat more than 75 per cent, of the labour engaged on 
 Admiralty work, work will continue at full pressure for some considerable time after the war, 
 while in the case of the other industries the considerations, which we have referred to when 
 dealing with War Office contracts, would, in the main, equally hold good. 
 
 30. Broadly speaking, therefore, the problem centres to a large extent round the question 
 as to how trades can change over from military to civil requirements. We believe that the 
 recommendations contained in our earlier reports for making arrangements to enable firms to 
 prepare before the end of the war for a return to peace productions are equally applicable to 
 the case now under consideration. We think that the Contracting Departments, where they are 
 satisfied that their stocks are sufficient, should, by reducing their delivery requirements, afford 
 manufacturers the opportunity gradually to prepare for a return to civilian production. 
 
 31. It may be assumed further that for stores and supplies which are not used directly for 
 fighting the enemy there will still exist a considerable, though reduced demand during the 
 demobilisation period. We think it desirable that the departments concerned should, subject 
 to military exigencies, limit their reserves of these stores to such quantities as will necessitate 
 a continuance of manufacture of new stocks, though in gradually diminishing quantity, during 
 the demobilisation period, and so ease the difficulty of having to find new work for employees 
 who might otherwise be displaced. 
 
 32. We consider, too, that the Contracting Departments should exercise a wise discretion 
 in the use of the “ break clause ” in their contracts. In almost all cases they are able to require 
 a manufacturer to cease work at the expiration of 14 days’ notice. It may often be desirable to 
 allow a longer time in which to complete such qiiantitv of goods as may be required under the 
 contracts ; by doing so opportunity will be afforded to manufacturers gradxially to build up their 
 private trade again alongside their Government work. We recommend that the departments 
 should carefully examine this aspect of the case before exercising their right to adhere strictly 
 to the terms of the break clause. 
 
 33. We have already indicated that we believe that the problem in this case is primarily 
 one of enabling- manufacturers to revert to civilian production, but we are nevertheless satisfied 
 that there must be some dislocation and unemployment. It is difficult to measure its extent in 
 advance, and we think that this is precisely one of the questions iipon which it will be found desir- 
 able to consult industries as a whole, as recommended in paragraph 12 of our First Interim 
 Report. We do not think that the dislocation is likely .to be such as to necessitate any special 
 registration of the persons to be discharged such as we have recommended in the case of workers 
 engaged in the manufacture of armaments. We think the case can be met, assuming that there 
 is proper co-ordination between the Supply and Labour Departments, by the machinery of the 
 Employment Exchanges and by the proposals which we have put forward for a general scheme 
 of unemployment insurance. 
 
 EMPLOYMENT EXCHANGES. 
 
 34. We have recommended in this Report, and in our Interim Reports, that a large 
 portion of the work in connection with demobilisation should be performed by the Employment 
 Department of the Ministry of Labour. We have done so because we are of opinion that national 
 machinery of some kind covering the whole country, working in close touch with local bodies of 
 employers and workmen, and co-ordinated by a single central authority is essential, and the 
 only machinery for this purpose now in existence is that of the Employment Exchanges. 
 
 35. The recommendations which we have made mean that the Employment Exchanges, 
 besides being an organising and thinking centre for demobilisation work, have to act as the 
 executive machine for assisting discharged workers to find employment, to ascertain the prospec- 
 tive demand for their services in advance, to compile a register of discharged workers, to 
 administer an enormously extended scheme of unemployment insurance, to deal with the special 
 problems arising from the discharge of women, to act as the principal controlling agency in con- 
 nection with demobilisation of juveniles, and to perform many other duties incidental to the 
 main functions specified above. 
 
 36. Although the Employment Exchanges have been greatly strengthened by the formation 
 of Local Advisory Committees, we think that they will need further reinforcement if they are 
 to be able to deal with this large amount of work in addition to the work which we understand 
 it is proposed that they should perform in connection with the Demobilisation of the Army. 
 We feel, therefore, that, as a necessary preliminary to carrying into effect the recommendations 
 
26 
 
 we have made, action must be taken to examine the position and reinforce the staff of the 
 Employment Exchange Service, and in particular to strengthen the controlling and directing 
 staff of the Department and the clerical ranks, which have been greatly depleted by loans to 
 other Departments and the absence of men on service with the forces. We fear that otherwise 
 there is the gravest possible risk of the whole procedure breaking down with lamentable results 
 to the industrial community as a whole. 
 
 TRAVELLING FACILITIES FOR DISCHARGED WORKERS. 
 
 37. We have considered to what extent, if any, special travelling facilities should be 
 granted to discharged workers other than those IV a r Munitions Volunteers who would in any 
 case be entitled to receive them under the specific terms of their engagement. In this connec- 
 tion it is to be noted that the issue of free railway passes has already been sanctioned in the 
 case of a considerable number of ordinary munition workers who were displaced owing to the 
 Cessation of contracts in the early months of 1918, and that the reasons which then led to this 
 course being adopted are not likely to have less force when demobilisation on a still larger scale 
 takes place. 
 
 38. We are of opinion therefore that free railway passes should be issued to those persons 
 who have changed their place of residence for the purpose of taking up work on munitions or 
 on naval or army contracts, and who may be displaced from such employment owing to the 
 cessation of hostilities. In such cases the worker should have the option of having his fare paid 
 either to his usual place of residence or to some other place at which work is available for him. 
 In order to safeguard this concession, we are of opinion that the privilege should be available 
 only for a period of two months from a date to be notified by the Government, and should be 
 limited to workpeople employed on the work referred to at the date on which this notification is 
 issued. 
 
 SUMMARY OF RECOMMENDATIONS. 
 
 39. — 1. Dilutees. 
 
 Steps should be taken to bring about a settlement of the War Pledges question at the 
 earliest possible date. (Paragraph 4.) 
 
 2. Juveniles. 
 
 (a) The constitution of Juvenile Advisory Committees and Choice of Employment 
 
 Committees should be strengthened and new committees set up wherever necessary ; 
 closer connection should be established between the Juvenile Committees and Local 
 Advisory Committees by the appointment of joint sub-committees, and steps taken 
 to obtain the fuller co-operation of employers and trade unionists. 
 
 (Paragraphs 5-12.) 
 
 ( b ) In the event of the provisions of the new Education Bill relating to the school 
 
 leaving age and compulsory continuation classes not becoming operative in time 
 to affect the supply of juvenile labour during the demobilisation period, the Board 
 of Education should consider the question of obtaining emergency powers to retain 
 children at school for an additional period, where the Local Education Authority 
 considers it advisable to do so. (Paragraph 13.) 
 
 (c) Centres should be organised in connection with the Juvenile Employment Exchanges. 
 
 at which some form of instruction or occupation should be provided for juveniles 
 for whom no employment can be found. A non -contributory grant should be 
 made to these persons on condition that they attend the Centres. 
 
 (Paragraphs 14-15.) 
 
 ( d ) Arrangements should be made by organisations of employers and employed for 
 
 special apprenticeships to meet the case of boys who have passed the normal age 
 at which they can be apprenticed. (Paragraph 16.) 
 
 3. Post-War Work. 
 
 (a) Schemes should be prepared and contracts, on a costing basis or otherwise, placed 
 
 before the 1 end of the war by Government departments, piiblic bodies and em- 
 ployers in the staple trades. (Paragraph 18.) 
 
 (b) An International Commission should be appointed to investigate the question of 
 
 reconstruction work in the devastated areas of Belgium and Northern France and 
 to prepare schedules of contracts. The possibilities of employing men discharged 
 from the British Expeditionary Forces on such work should be explored. 
 
 (Paragraphs 19-21.) 
 
 4. Co-ordination between Government Departments. 
 
 An Interdepartmental Committee should be set up to advise as to the distribution of con- 
 trolled raw materials, with special reference to the state of employment, at any given time, in 
 different industries and areas. (Paragraphs 22-26.) 
 
 5. Government Contracts other than those for Armaments. 
 
 Subject to military exigencies, the reserves of certain stores should be limited to such quan- 
 tities that a continuance of manufacture may be necessitated during the demobilisation period. 
 Discretion should also be exercised in the use of the Break Clause,” and, where advisable, 
 longer time should be allowed to manufacturers in which to complete their contracts. 
 
 (Paragraphs 27-33.) 
 
27 
 
 6. Employment Exchanges. 
 
 In view of the largely increased amount of work which we have recommended that the 
 Employment Exchanges should undertake during the demobilisation period, action should he 
 taken to examine the machinery and to strengthen very considerably the staff of the Department. 
 
 (Paragraphs 34-36.) 
 
 7. Travelling Facilities. 
 
 Subject to certain conditions, free railway passes should be issued to persons who have 
 changed their place of residence for the purpose of taking up work on munitions or on naval 
 or army contracts, and who have been displaced from such work owing to the cessation of 
 hostilities. (Paragraphs 37-38.) 
 
 We have the honour to be, 
 
 Sir, 
 
 Your obedient Servants, 
 
 GERALD BELLHOTJSE (Chairman). 
 
 E. D. ACLAND. 
 
 J. A. BARLOW. 
 
 A. BELLAMY. 
 
 W. H. BEVERIDGE. 
 
 H. B. BUTLER, 
 
 J. A. DALE. 
 
 G. DALLAS. 
 
 R. DUMAS. 
 
 ERNEST JARDINE. 
 
 A. SUSAN LAWRENCE. 
 
 CHAS. A. LISTER 
 J. J. MALLON. 
 
 D. S. MARJORIBANKS. 
 
 MARION PHILLIPS. 
 
 C. F. REY. 
 
 HUMBERT WOLEE 
 ROBERT YOUNG. 
 
 A. E. LEACH (Secretary). 
 
 12 tli September, 1918. 
 
 Printed under the authority of His Majesty’s Stationery Office 
 By DARLING and SON, Limited, Bacon Street, E.2.