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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT Printed
for the War Cabinet.
May 1942.
SECRET
Copy N o . ­
'
W . P . (42) 224.
May 28, 1942.
. T O BE: KEPT U N D E R LOCK A N D KEY.
It is requested that special care may be taken tc ensure the secrecy of this document. WAR
REORGANISATION
Memorandum
CABINET.
OF T H E
COAL-MINING
by the Lord President
of the
INDUSTRY.
Council.
A F T E R the discussion in t h e W a r Cabinet o n . t h e 10th A p r i l , the P r i m e
Minister a p p o i n t e d a Committee of the following M i n i s t e r s : —
Lord P r e s i d e n t of t h e Council, M i n i s t e r of Production, M i n i s t e r of Labour a n d N a t i o n a l Service, Chancellor of the Exchequer, Minister of Supply, P r e s i d e n t of the Board of T r a d e , Secretary for Mines, to work out detailed proposals for securing such practical control over the
working of the mines as is necessary to increase t h e war-time efficiency of the
industry a n d to p u t i t in a position, at the end of hostilities, to compete for the
early recovery of our export m a r k e t s (W.M. (42) 46th Conclusions, M i n u t e 1 ( i x ) ) .
2. T h e Committee have held fourteen m e e t i n g s ; and have heard evidence
from t h e M i n i n g Association, the Mineworkers' Federation, Sir E r n e s t Gowers
and a number of other, persons w i t h special technical or a d m i n i s t r a t i v e knowledge
of t h e i n d u s t r y .
W e have m a d e a strictly practical a p p r o a c h to our problem. W e s t a r t e d
by a s k i n g w h a t were t h e practical measures which could be taken to increase coal
production. Secondly, we enquired whether any f u r t h e r powers were required
to enable these measures to be p u t into operation. Lastly, we considered w h a t
changes should be made in the organisation of the i n d u s t r y to ensure t h a t those
powers could be effectively exercised.
3. T h e r e is general agreement that, if o u t p u t is to be maintained, still more
if i t m u s t be increased, the most u r g e n t and i m p o r t a n t need is to conserve the
labour force of the industry. I n spite of the fact t h a t the Essential W o r k O r d e r
has been applied to the i n d u s t r y and t h a t men are not, therefore, a t liberty to
leave i t a t will, w a s t a g e is exceeding normal intake by something like 25,000 men
per annum. The numbers accounted for by death, disablement, normal retirement
and compensation cases are roughly balanced by t h e i n t a k e of y o u t h s ; and the
larger p a r t of the net wastage is represented by men leaving the i n d u s t r y in
middle age on medical certificates. T h e r e is no doubt t h a t a proportion of these
men are, in fact, fit to continue work in the m i n e s ; and . they obtain medical
certificates to the contrary because, in view of the Essential W o r k Order, this is
the only w a y in which they can leave the industry for the purpose of t a k i n g other
work which is more a t t r a c t i v e to them.
I n normal times the new e n t r a n t s into the i n d u s t r y consisted, not only of
boys, b u t also of young adults who came into the mines from a g r i c u l t u r e and other
industries. U n d e r w a r conditions this source of n e w man-power has been cut
2
off almost entirely; a n d there is now no means of d r a w i n g any substantial numbers
of young men into the industry. I t may, however, be possible to secure t h a t some
of the men who are being displaced from the less essential industries (as a r r a n g e ­
ments are made for their work to be taken over by women) will t a k e employment
in the mines in lieu of being called u p for military service; a n d the Minister
of Labour has given instructions t h a t coal-mining shall be added to the list of
p r i o r i t y industries which such men may choose in preference to m i l i t a r y service.
The problem of closing the gap between normal intake into, a n d w a s t a g e
from, the i n d u s t r y m u s t be tackled at both ends—by increasing the intake of boys
a n d youths, a n d by checking the out-flow of middle-aged men from the industry.
T h e first of these problems is being considered by a D e p a r t m e n t a l Committee
u n d e r the c h a i r m a n s h i p of Sir J o h n Forster. Their report is expected towards
t h e end of J u n e ; and in these circumstances we have not ourselves gone into this
aspect of the matter. Of the second problem, we are satisfied t h a t there is no
single solution. Of many factors c o n t r i b u t i n g to the desire of middle-aged men
to leave the industry, three are o u t s t a n d i n g ­
(i) For some years before the w a r coal-mining was a declining i n d u s t r y ;
and, if they have no f a i t h in its future, a number of men will take
such opportunities as offer to transfer to other industries,
(ii) The miner could often earn more in the munitions industries t h a n he
can if he remains in the mines; and some of the miners are
undoubtedly becoming restive—particularly in areas where there are
munitions factories near a t h a n d — a t being prevented by the Essential
W o r k Order from t r a n s f e r r i n g to other employment in which their
earnings would be larger.
T h i s feeling has now come to a head in the claim by the Mine­
workers' Federation for a national minimum wage of £ 4 5s. Od. a
week for all miners,
(iii) I n a number of cases a miner, though genuinely suffering from some
loss of physical fitness, could be retained in the i n d u s t r y if there were
a proper scheme for medical t r e a t m e n t w i t h i n the industry.
At
present, such men have no difficulty in obtaining a medical certificate
t h a t they are unfit for continued work in the mines, a n d in many cases
an independent medical referee would be unlikely to override that,
certificate so long as there is no alternative b u t to allow the man to
leave t h e industry or to require him to continue to work in the mines
w i t h o u t any assurance t h a t he will receive proper medical treatment.
W a s t a g e d u e to this cause could be checked to some extent by the
establishment of a Medical Consultative Service for the m i n i n g
i n d u s t r y on t h e lines indicated in p a r a g r a p h 8 below.
:
I t would be p r e m a t u r e to a t t e m p t to formulate comprehensive recommenda­
tions r e g a r d i n g the wastage of mid die-aged men from the i n d u s t r y until the
R e p o r t of the F o r s t e r Committee h a s been presented. W e recommend t h a t this
problem should be f u r t h e r considered, as a m a t t e r of urgency, as soon as the R e p o r t
iof t h a t Committee is available.
4. A p a r t from the problem of m a i n t a i n i n g or increasing the labour force of
the i n d u s t r y , there is general agreement t h a t o u t p u t could be increased (irrespec­
tive of increases in the labour force) by measures which may be grouped u n d e r the
following heads :—
(a) Technical direction.—There
is a wide variation in the s t a n d a r d of the
- skilled technical advice available to colliery m a n a g e m e n t s ; a n d o u t p u t could be
increased if all collieries could secure the advice of the most competent m i n i n g
engineers in their District.
(b) Mechanisation-On
a long-term view greatly increased o u t p u t could be
achieved t h r o u g h extended mechanisation. D u r i n g 1941, only 63 per cent, of the
total o u t p u t was obtained by mechanical coal-cutters, and only 61 per cent, was
mechanically conveyed. T h e r e is also some scope for short-term improvement,
p a r t i c u l a r l y t h r o u g h the development of mechanical loading.
(c) Concentration.—The
most direct means of securing an early increase in
o u t p u t is by concentrating the available man-power in the most productive mines
-and seams. The Mines D e p a r t m e n t have made a sample study (covering Districts
producing 44 per cent, of the total o u t p u t ) of the results which might
be achieved by t r a n s f e r r i n g men from p i t s w i t h a low o u t p u t to more productive
pits in the neighbourhood. The-total man-power in these Districts is 277,000;
and the study shows that, by t r a n s f e r r i n g 17,800 of these to an average distance
of only four miles from their present pits, o u t p u t might be increased by 6-£- p e r
cent. A s s u m i n g t h a t a similar result m i g h t be achieved in other D i s t r i c t s , these
measures of concentration would, if applied comprehensively throughout the
industry, increase total o u t p u t by about 250,000 tons a week.
These figures take no account of the practical difficulties of t r a n s f e r r i n g
men from one p i t to another. A p a r t from the difficulties of providing transport,
and a r r a n g i n g t h a t no. additional financial burden would fall on the men
transferred, there is strong reluctance on the p a r t of miners generally to move
to pits other than those in which they have been accustomed to work.
The
success of all measures of re-organisation will t u r n very largely on securing
the good-will of the men; but t h i s is specially i m p o r t a n t in relation to measures
for securing increased o u t p u t by means of concentration. P u r e l y theoretical
calculations of the increased o u t p u t which m i g h t be secured by this means must
be substantially discounted on account of the reluctance of the men to give
their full co-operation in measures involving t r a n s f e r from one p i t to another.
. (d) A bsenteeism.—In
recent discussions there has been a tendency to
exaggerate the gain in production which m i g h t be secured by checking
absenteeism a n d by additional effort on the p a r t of the men. The records kept
at the mines often fail to show the cause of absence sufficiently clearly to
differentiate between avoidable and unavoidable absence from w o r k ; and we
doubt whether in fact'avoidable absenteeism is greater in the mines t h a n in
other industries. W h i l e the absenteeism percentage has risen substantially d u r i n g
the war, there has also been a steady rise in the number of shifts worked per
wage-earner; and in the last week for which statistics are available the number
of shifts worked was 5-66, the highest on record. I t is doubtful whether more
can be expected, week in and week out, from men working under conditions
as exacting as those in the p i t s ; and charges of excessive absenteeism cannot
be sustained against the g r e a t majority of the miners.
While, however, the average figures are not unsatisfactory, there is
undoubtedly some avoidable absenteeism; a n d it is important t h a t every possible
step should be taken to reduce this to the minimum. A p a r t from an improvement
in the general s p i r i t throughout the industry, this can only be secured by
tightening u p the a r r a n g e m e n t s for dealing w i t h individual cases of absenteeism.
I t is a d m i t t e d on all sides t h a t the existing a r r a n g e m e n t s are not w o r k i n g
satisfactorily; and in p a r a g r a p h 7 below we make certain recommendations for
altering the present procedure.
5. F o r the purpose of securing increased o u t p u t no far-reaching new powers
will be required in addition to the powers already available under the Defence
Regulations.
Defence Regulation 55 confers on the Secretary for Mines wide powers
of regulating, by order, the production, storage, t r a n s p o r t a n d d i s t r i b u t i o n of
coal; a n d colliery managements ma)' be r e q u i r e d to carry on their u n d e r t a k i n g s
in accordance w i t h directions given by the Minister.
If such directions a r e
not complied with, or if for other reasons it is thought necessary to do so. t h e
Minister may take control of a colliery u n d e r p a r a g r a p h (4) of the same
Regulation.
P o w e r to control labour in the m i n i n g i n d u s t r y is equally available to t h e
Minister of Labour and N a t i o n a l Service, u n d e r Defence R e g u l a t i o n 58A and
the Essential W o r k (Coal M i n i n g I n d u s t r y (No. 3 ) ) Order, 1941.
I f the W a r Cabinet approve the general system of control suggested below,
the legal position will be examined afresh, to make sure t h a t the existing
powers provide full a u t h o r i t y for the scheme of control contemplated.
6. W h a t is needed is, not so much fresh powers, as machinery to enable
those powers to be exercised effectively.
T h e problem of increasing o u t p u t is, in the main, one of securing detailed
i changes in the operation of p a r t i c u l a r collieries. These cannot be brought about
v through directions issued from the centre.
W h a t is needed is an effective
\ Regional organisation charged w i t h responsibility for securing the maximum
p r o d u c t i o n from the mines in their Region, and exercising, by v i r t u e of
delegation, the full powers of direction and control conferred on the Secretary for
Mines.
I n view of the imperative necessity of ensuring t h a t coal o u t p u t and alloca­
tion a r e p u t on a basis a d e q u a t e to meet the demands a r i s i n g o u t of w a r
conditions, the Government must organise the coal industry on the basis of
n a t i o n a l service, w i t h the intention t h a t the organisation now to be established
will continue p e n d i n g a final decision by P a r l i a m e n t on the f u t u r e o r g a n i s a t i o n
of the i n d u s t r y .
F o r this purpose we recommend t h e immediate establishment of Eegional a n d
N a t i o n a l . m a c h i n e r y on the following lines : —
Headquarters
Machinery.
(a) The Government will take full control over the operation of all coal mines
a n d over the allocation of t h e coal r a i s e d ; a n d the Secretary for Mines will become
responsible for exercising this control over the i n d u s t r y w i t h a view to e n s u r i n g
m a x i m u m production to meet w a r - t i m e needs.
T h e M i n i s t e r will be assisted by a Controller-General of P r o d u c t i o n , who will
have a s his chief officers—
(i) A P r o d u c t i o n Director, responsible for efficiency and volume of
production.
(ii) A L a b o u r Director, responsible for welfare, safety, health and w o r k i n g
conditions of coal-miners, a n d allocation of labour.
(iii) A Services Director, responsible for distribution a n d allocation of coal.
(iv) A F i n a n c e Director, responsible for all
financial
arrangements,
including advice on coal prices.
(b) A N a t i o n a l Coal Board will be established. T h e Board will meet u n d e r
the c h a i r m a n s h i p of the M i n i s t e r a n d will consist of the following members
a p p o i n t e d by h i m —
T h e Controller-General (Vice-Chairman).
T h e Vice-Chairmen of the Regional Coal B o a r d s (see s u b - p a r a g r a p h (/)
below).
A number of p i t m a n a g e r s and colliery technicians.
Persons representing coal d i s t r i b u t i o n .
Persons representing coal consumers.
(c) T h e functions of the B o a r d will be :—
(i) To consider the g e n e r a l . p l a n n i n g of production, including t h e allocation
of district a n d regional targets,
(ii) To consider the best means of securing t h e highest efficiency of t h e coal­
m i n i n g i n d u s t r y a n d any i m p r o v e m e n t in machinery or methods of
operation whereby o u t p u t m a y be increased.
(iii) To consider the provision of supplies, equipment a n d materials for the
conduct of m i n i n g operations.
(iv) To consider m a t t e r s r e l a t i n g to the maintenance of man-power a n d
labour productivity, including the enrolment of new e n t r a n t s a n d the
instruction, t r a i n i n g a n d advancement of boys a n d youths,
(v) T o consider all m a t t e r s affecting the welfare of the mine-workers,
including housing, t r a n s p o r t a n d feeding facilities,
(vi) To consider questions of health and safety and, in p a r t i c u l a r , such
occupational diseases as silicosis a n d nystagmus, w i t h a view to
providing all possible preventive measures, clinical t r e a t m e n t and
rehabilitationThus, the Board will have no executive function. I t s m a i n d u t y will be to
give leadership and guidance to the i n d u s t r y in c a r r y i n g out the tasks imposed
upon i t d u r i n g the w a r a n d in the critical years to follow.
Regional
Machinery.
(d) I n each coal-px*oducing Region there will be a Controller, to whom will
be delegated the powers of the Secretary for Mines to assume control of colliery
u n d e r t a k i n g s a n d to give directions to the managements r e g a r d i n g the c a r r y i n g
W
(5^
on of the u n d e r t a k i n g s . I n virtue cf these powers, the Controller will be charged
with responsibility for exercising control over the operation of collieries in his
Region to such extent as may be necessary to ensure maximum production.
(e) T h e Controller will have the assistance of three Directors—one concerned
with the technical and engineering aspects of coal production; another concerned
with, labour questions in the m i n i n g i n d u s t r y ; and a t h i r d concerned w i t h the
public services (gas, electricity and the t r a n s p o r t and distribution of coal).
(/) I n each Region there will be a Regional Coal Board, appointed by the
Minister, to advise the Controller on m a t t e r s concerning output and t h e means
of achieving maximum production.
These Boards will comprise representatives of coal-owners, managers and
technical staff, a n d miners. The Controller will preside a t meetings of the B o a r d ;
and two Vice-Chairmen will be elected, one representing the owners a n d the other
representing the men.
T h e functions of this Board will be consultative, not executive.
(g) T h e Controller a n d his Directors will be responsible for e n s u r i n g t h a t
competent technical advice is available to all colliery managements w i t h i n their
Region. I n some cases the Controller may find it convenient to secure this by
grouping p i t s for the purpose of technical advice. To supplement such a r r a n g e ­
ments, however, the Controller will have on his staff a numbe^Aof technical
assistants whose function will be to survey the operation of p a r t i c u l a r p i t s and,
where necessary, to supervise and increase t h e technical efficiency of a colliery.
(h) P i t P r o d u c t i o n Committees will continue as at present constituted, to
assist p i t managers to secure maximum output. T h e i r functions will be limited
to m a t t e r s associated w i t h production.
They will not be concerned with
absenteeism (see p a r a g r a p h 7).
7. W e propose t h a t P i t P r o d u c t i o n Committees should be relieved of all
responsibility for dealing w i t h individual cases of absenteeism. They a r e not
suitable bodies to u n d e r t a k e disciplinary functions, and it is generally agreed
that the present procedure for dealing w i t h these cases has not "worked satis­
factorily.
W e recommend t h a t in mining, as in other industries, absenteeism and
persistent lateness should be made offences for which a m a n can be prosecuted
without the p r i o r issue of " d i r e c t i o n s . "
Experience i n other industries has shown, however, t h a t in the large majority
of cases absenteeism can be checked by methods of persuasion w i t h o u t recourse
to proceedings in the courts. W e therefore recommend t h a t the Secretary for
Mines should a p p o i n t in each Region I n v e s t i g a t i n g Officers, to whom all cases
of absenteeism, persistent lateness a n d other disciplinary offences should be
referred. T h i s Officer will interview the man, w i t h i n twenty-four hours of
receiving such a report, and, if he is satisfied t h a t the alleged offence has been
committed, will decide whether to w a r n him a g a i n s t a repetition of the offence
or to recommend t h a t he should be prosecuted. T h e Investigation Officer will not
be responsible for i n s t i t u t i n g proceedings in the courts; this will be the responsi­
bility of the National.Service Officer.
W e also recommend t h a t the Secretary for Mines should prescribe the form
in which records a r e to be kept by colliery managements for the purpose of dealing
with absenteeism.
8. A s p a r t of this reorganisation of the m i n i n g industry, a n d w i t h a view
p a r t i c u l a r l y to checking w a s t a g e of labour, we t h i n k it desirable t h a t there should
be established a Medical Consultative Service for the mines.
The detailed organisation of such a Service would have to be worked out in
consultation w i t h the Minister of H e a l t h a n d the Secretary of State for Scotland.
The general aim, however, would be to ensure t h a t in each Region there would be
at least one full-time medical officer responsible, under the Regional Controller,
for supervising and, where necessary, supplementing the facilities available for
the medical t r e a t m e n t of miners.
If such a Service were established it would be possible to secure t h a t no miner
. would be released from the i n d u s t r y merely on the certificate of his own panel
doctor. A l l applications for. release on medical grounds could be dealt w i t h
t h r o u g h the Service, and might be examined by a panel of three independent
s
doctors. T h i s panel m i g h t be authorised to prescribe t r e a t m e n t ; and the Service
m i g h t then be responsible for a r r a n g i n g for the man to receive a p p r o p r i a t e
t r e a t m e n t designed to enable him to continue his employment in the mines.
9. I n connection w i t h this scheme of reorganisation, there are several p o i n t s
to which we invite the special a t t e n t i o n of the "War Cabinet—
(a) Nattire of Government
control.
The object of the scheme is to ensure t h a t the Controllers shall have, a n d
exercise, full a n d undivided responsibility for the policy a n d general conduct of
m i n i n g operations in their Regions, and have power to give whatever directions
are necessary for this purpose. A t the same time, it is undesirable t h a t they should
be burdened w i t h the details of day-to-day management of the p i t s . T h i s will be
left, as it is to-day, in the h a n d s of the managers, who will continue to be t h e
p a i d servants of the owners, though subject to removal a t the instance of the
Controller should he deem t h a t course necessary.
I n order to avoid any b l u r r i n g of responsibility, we propose t h a t the owners of
each colliery u n d e r t a k i n g shall nominate a single person who will be responsible
in respect of such u n d e r t a k i n g for receiving a n d c a r r y i n g out the directions of
the Controller. This would normally be the agent or p i t m a n a g e r . T h e Controller
will thus have direct access to, a n d control over, t h e person in executive c h a r g e of
the working of the mine, w h o will similarly have direct access to the Controller.
Each Controller, w i t h the assistance of his staff, will exercise general
supervision over the whole conduct of m i n i n g operations in his Region. T h i s
general supervision will have to be sufficiently close to enable him, in consultation
w i t h his Regional Coal Board, to give such directions as will ensure the most
efficient operation of the i n d u s t r y , treated as a whole, i n his Region, including
directions as to concentration, g r o u p i n g of pits, and other necessary m a t t e r s
r e l a t i n g to m i n i n g operations.
Directions would have to be complied w i t h (subject only to the u l t i m a t e
a u t h o r i t y of the Minister) save in cases where the p i t m a n a g e r represents in
w r i t i n g to the Controller t h a t he could not comply w i t h t h e direction consistently
w i t h t h e discharge of his s t a t u t o r y responsibility for the safety of the p i t . I t
is not proposed to interfere w i t h the s t a t u t o r y responsibility of p i t m a n a g e r s for
questions of safety.
I n the event of any f a i l u r e to carry out the C o n t r o l l e r ^ directions, t h e
Minister h a s power to t a k e over the mine a n d to p u t in a manager.
W e believe t h a t the full measure of control r e q u i r e d to obtain increased
o u t p u t can be secured by t h i s scheme.
The wages and profits s t r u c t u r e of the coal m i n i n g i n d u s t r y has been o p e r a t e d
on the basis of division of proceeds a s between wage costs and profits. I t is not
intended by t h i s scheme to introduce any fundamental a l t e r a t i o n in the financial
s t r u c t u r e of t h e industry.
(b) Regional
Controllers.
The M i n i n g Association have informed us that, while they favour the
a p p o i n t m e n t of Controllers w i t h full power to give directions r e g a r d i n g t h e
working of mines w i t h i n their Region, they consider t h a t these should not be
men chosen from w i t h i n t h e m i n i n g industry.
On t h e other hand, there are obvious a d v a n t a g e s in securing t h a t the action
taken by these Controllers shall be supported by all the best available knowledge
a n d experience of the m i n i n g industry.
This p o i n t could often be met by a p p o i n t i n g as Controller a person not
previously connected w i t h the industry, b u t associating w i t h him as Director of
P r o d u c t i o n a person w i t h skilled technical knowledge of the problems of the
m i n i n g i n d u s t r y w i t h i n the Region. I t seems i m p o r t a n t , however, t h a t the
Government should make it clear t h a t in selecting Controllers they will not feel
precluded from a p p o i n t i n g the best man available by reason only of the fact
t h a t he has previously been connected w i t h the i n d u s t r y .
(c) Wages
Machinery.
T h e Mineworkers' Federation have recommended t h a t the proposed N a t i o n a l
Board should be empowered to determine all national wages questions a n d to deal
w i t h regional wages questions t h a t may be referred to it.
W e do not t h i n k it desirable t h a t wages questions should be dealt with by a
Board w i t h which the responsible Minister is. associated, but we should welcome
the development of a system by which questions of wages and conditions in the
m i n i n g i n d u s t r y would be dealt w i t h on a national basis a n d by a properly
constituted n a t i o n a l body.
There is, however, a deep-seated reluctance on both sides of this industry to
surrender any p a r t of the independence of the individual D i s t r i c t s ; and we believe
t h a t it will be necessary to move very cautiously towards the development of
national machinery for the settlement of wages questions. I n p a r t i c u l a r , we fear
that the success of the proposed N a t i o n a l Board as a body for p r o m o t i n g increased
production would be gravely prejudiced if it were associated in any way with
wages questions.
W e recommend t h a t the Government should announce their intention to make
it their business to discuss w i t h both sides of the i n d u s t r y the questions of
continuing procedure a n d p e r m a n e n t machinery for dealing, both nationally and
locally, w i t h questions of wages and conditions.
10. If the W a r Cabinet approve a scheme of reorganisation on the lines
suggested, the outlines of the scheme could be included in the W h i t e P a p e r which
is to be presented immediately after P a r l i a m e n t reassembles next week. I t should
be made clear t h a t the details would have to be elaborated in discussion with both
sides of the i n d u s t r y .
A d r a f t of the proposed W h i t e P a p e r will be circulated for consideration
bv the W a r Cabinet at their meeting on Monday, the 1st J u n e .
J . A.
Great George Street, S:W. 1. May 28, 1942.