(c) crown copyright
Catalogue Reference:CAB/23/12
Image Reference:0010
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Printed -for the War
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Cabinet.
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—
September
IS
1919.
SECRET.
WAR
Conclusions
CABINET
625.
of a Meeting of the War Cabinet, held at 10, Downing
Friday, September 26, 1919, at 10*30 A.M.
Street, S.W.,
on
Present:
The P R I M E M I N I S T E R (in the
The Right
1
T h e R i g h t H o n . A. B O N A R L A W , M . P .
Hon. t h e
Earl
KEDLESTON, K . G . , G . C . S . I . ,
T h e R i g h t Hon. A. C H A M B E R L A I N , M . P .
T h e R i g h t Hon. G. N . B A R N E S , M . P .
Chair)
CTJRZON OE
G.C.I.E.
T h e R i g h t Hon. Sir E . G E D D E S , G . C . B . ,
G.B.E., M.P.
.
T h e following w ere also p r e s e n t :
T h e R i g h t H o n . E . S. SHORTT, K G ,
T h e R i g h t H o n . Sir A. C. G E D D E S , K . C . B . ,
M . P . , P r e s i d e n t of t h e Board of Trade.
M.P.,
Secretary of S t a t e for H o m e Affairs.
K.C.,
The Right Hon. G . H . ROBERTS, M . P . ,
Food Controller.
Lieutenant-Colonel Sir R H Y S W I L L I A M S ,
K.C.,
D.S.O.,
M.P.,
Parliamentary
Secretary, Ministry of Transport.
Sir W . F . M A R W O O D , K.C.B., J o i n t P e r m a n e n t Secretary, Board of T r a d e .
T h e R i g h t Hon. Sir R. S. H O R N E ,
K . B . E . , Minister of Labour.
Sir H E R B E R T W A L K E R , K . C . B . , C h a i r m a n ,
Sir D . J . SHACKLETON, K.C.B., Secretary,
Ministry of Labour.
Sir R . F . DTJNNELL, K.C.B.,
Ministry of Transport.
Railway E x e c u t i v e Committee.
Secretary,
Lieutenant-Colonel Sir M. P . A / H A N K E Y , G.C.B.,
Mr. G. M. E V A N S , Assistant
Secretary.
Mr. P E M B R O K E W I C K S , Assistant
[970]
Secretary.
Secretary.
T H E W a r Cabinet b a d before them draft heads of a reply to
t h e r a i l w a y m e n (see A p p e n d i x ) .
Concessions to
Anomalous Grades.
1. T h e W a r C a b i n e t considered t h e possibility of i n t r o d u c i n g a
p a r a g r a p h to show t h a t the G o v e r n m e n t were p r e p a r e d to go further
t h a n t h e r i g i d application of t h e principle of 100 per cent, increase
in t h e s t a n d a r d r a t e of wages in anomalous cases. After some
discussion it was a g r e e d to adopt t h e following form of words :—
" I n fixing t h e new s t a n d a r d rates t h e basis h a s been
r o u g h l y an average addition of 100 p e r cent., a n d t h e Govern­
m e n t will not act on r i g i d lines, a n d will i n the future, as in the
past, b e ready to consider a n d discuss anomalies a n d cases of
h a r d s h i p to a n y p a r t i c u l a r grades i n t h e application of the
p e r c e n t a g e of increase to be m a d e . "
Fluctuation in
War Wage
corresponding
with Cost of
Living.
2. A proposal was m a d e t h a t , in view of t h e u n c e r t a i n t y of the
u p w a r d or d o w n w a r d fluctuation of prices, an offer should b e m a d e
to c o n t i n u e the p r e s e n t a g r e e m e n t u n t i l prices h a d been further
stabilised. Three variants of t h i s proposal were discussed :—­
(1.) T h a t the existing a r r a n g e m e n t of pre-war w a g e p l u s war
wage should b e definitely continued u n t i l n e x t J u n e ,
w h e n t h e whole question would be reconsidered.
(2.) T h a t the rates should not b e lowered u n t i l the price of
living h a d fallen from 115 p e r cent, above p r e - w a r level
to say 110 per cent., a n d had r e m a i n e d t h e r e for at least
t h r e e months.
(3.) T h a t an u n d e r t a k i n g should b e given not to b r i n g down
the w a r wages u n t i l t h e cost of living h a d fallen to a
s u b s t a n t i a l extent, viz., to 100 per cent, above t h e p r e ­
war level as c o m p a r e d with the h i g h e s t point reached,
viz., 125 per cent., a n d the p r e s e n t level of 115 per cent,
above t h e pre-war prices.
I t w a s p o i n t e d out in respect of t h e first proposal t h a t Mr.
Bromley would p r o b a b l y r e p r e s e n t t h a t t h e -Locomotive Drivers'
Union would be prejudiced b y s u c h an agreement, o w i n g to the fact
t h a t t h e y were entitled by t h e c u r r e n t railway a g r e e m e n t to apply
for t h e reconsideration of t h e s t a n d a r d rates after t h e 31st December,
a n d were now formulating a n e w p r o g r a m m e for t h a t p u r p o s e .
I t w a s also s u g g e s t e d t h a t the whole question of fluctuation i n
w a g e s to correspond with c h a n g e s in t h e cost of l i v i n g should be
referred to the C o u r t of A r b i t r a t i o n , w h i c h h a d b e e n specially set
u p for t h i s p u r p o s e , a n d t h a t were a settlement m a d e with t h e
Railway C o m p a n i e s based on a rise or fall in the cost of living, t h e
Court would find themselves b o u n d b y it i n their dealings w i t h
other i n d u s t r i e s .
T h e second proposal was adopted.
I t was generally agreed t h a t in the event of a rise in prices a n
increase of the war w a g e would have to be m a d e , b u t it w a s pointed
out t h a t a n increase i n t h e cost of living to 125 p e r cent, was t h e
s t a n d a r d u p o n which t h e w a r wage h a d been fixed, a n d that a
c o r r e s p o n d i n g rise in wages could not b e claimed u n l e s s t h e cost of
l i v i n g rose above 125 p e r cent.
Suggested Increase
of Minimum Wage,
3 . T h e Cabinet further considered w h e t h e r it was possible to
raise t h e m i n i m u m w a g e of railway workers from 40s. to 45s., on t h e
u n d e r s t a n d i n g t h a t t h e last 5s. should be t a k e n off w h e n t h e cost of
l i v i n g fell.
A l a r g e n u m b e r of objections were r a i s e d against
this—
(a.) I t
would seriously r e d u c e the difference between t h e
m i n i m u m w a g e a n d t h e wages of t h e h i g h e r g r a d e s
which would discourage the desire for promotion, a n d
the proposal could h a r d l y be adopted w i t h o u t r e a d j u s t i n g
t h e l a d d e r r i g h t t h r o u g h the various grades.
(6.) I t would cost 9 or 10 millions.
(c.) As in t h e case of t h e 12 p e r cent, increase, it would react
r i g h t t h r o u g h all trades, i n c l u d i n g possibly t h e N a v y
and Army.
On t h e whole it was felt t h a t the b a l a n c e of a r g u m e n t was
against t h e proposal, a n d t h a t it should n o t be m a d e in t h e first
instance. If proposed b y the railwaymen i t would be considered.
T h e Cabinet decided t h a t :—
A reply should be m a d e to t h e r a i l w a y m e n on t h e lines laid
down above, a n d t h a t the P r i m e Minister, Mr. Bonar Law,
t h e P r e s i d e n t of t h e Board of T r a d e , the Minister of
T r a n s p o r t , the Minister of Labour, and Sir F r a n c i s D u n n e l l
should forthwith p r e p a r e a statement to be m a d e to t h e
railwaymen by the P r i m e Minister.
Decisions of
Drafting Comm i t t e e
T h e r e m a i n i n g Ministers h a v i n g withdrawn, t h e P r i m e Minister
r e a d the draft of a statement w h i c h had been p r e p a r e d earlier in
t h e day by the P r e s i d e n t of t h e Board of T r a d e a n d the Minister of
Labour.
Subject to certain corrections, this suggestion was adopted as t h e
basis of t h e P r i m e Minister's statement.
I t was further agreed t h a t t h e r e a d i n g of this statement should
b e followed by a statement of the concessions already agreed to and
t h e h e a d s of t h e reply referred to above, which were a m e n d e d b y
certain textual alterations a n d the deletion of p a r a g r a p h 4.
T h e statement as finally approved is contained in t h e steno­
g r a p h i c notes of the s u b s e q u e n t conference.
2, Whitehall Gardens, S.W.
September 26, 1919.
1,
[p.T.O.
APPENDIX.
RAILWAY
Proposed
Heads of a Reply
STRIKE.
to the Railwaymen
and of the Official Statement
to the Press in case of a Strike.
to be issued
1. T H E n e w s t a n d a r d wage p r o p o s e d is equal to a n a v e r a g e of at leaBt 100 p e r
cent, over t h e p r e - w a r w a g e , a n d g u a r a n t e e s to every adult railway worker, irrespective
of any fall in t h e cost of living a p e r m a n e n t m i n i m u m of 40s. p e r week. T h i s figure
of 40s. compares w i t h a n average of 1.8s. to 20s. p e r week before t h e war.
2. I n addition, t h e extra p a y m e n t s for S u n d a y duty, n i g h t duty, a n d overtime
a g r e e d to are e q u a l on t h e average to a n o t h e r 20 p e r cent, on t h e p r e - w a r w a g e .
3. I n addition to these money wages t h e h o u r s of labour h a v e been r e d u c e d to
eight.
4. T h i s increase, on t h e a v e r a g e of 120 p e r cent., t o g e t h e r w i t h a g u a r a n t e e
m i n i m u m of 40s., irrespective of t h e w a r w a g e a n d increased e a r n i n g s for overtime, & c ,
is p u t forward as w h a t we hope to be t h e p e r m a n e n t railway w a g e to r e m a i n ,
irrespective of a n y possible fall in the cost of living.
5. I n any event t h e issue does not arise till t h e 31st December, as until t h e n n o
m a n will receive less t h a n his p r e s e n t a g g r e g a t e earnings, a n d d u r i n g t h a t time t h e r e
is time for negotiations, w h i c h the G o v e r n m e n t are willing to continue.
6. I n addition to t h i s s t a n d a r d increase t h e r e is no q u e s t i o n of r e d u c i n g t h e
p r e s e n t total w a g e at t h e 31st December, if the cost of living should be t h e same as a t
present, and as long as t h i s h i g h cost continues t h e m e n will receive t h e full a g g r e g a t e
w a g e s they obtain n o w . F u r t h e r , t h e G o v e r n m e n t are willing to u n d e r t a k e t h a t n o
r e d u c t i o n will be m a d e i n t h e w a r wage u n t i l t h e r e is a fall in t h e cost of living to t h e
extent of
p e r cent.
2, Whitehall
Gardens, S.W. I ,
September 26, 1919.
o