EMPLOYMENT AND WAGES

It follows directly from what I have just said that a time of high costs

and low prices like the present, like the time of lower costs but still

lower prices of the late '80's and early '90's, is not a favourable time

for expecting employment to be brisk or wages high. And reasons other

than those which we have yet considered make the farmer feel his labour

to be specially burdensome at present. He finds that the prices he gets

on the average are one and one-third times what they were before the

war: what he has to buy costing from one and a half to one and

two-thirds what it cost before the war; and he is expected in very many

counties in England and Wales to pay his workers about double what he

paid before the war. This is a strong point for him. But the labourers'

position is just as strong. "I was not sufficiently well paid before the

war. If this is to be recognised in any way at all, I must at the

present cost of living (185) have double my pre-war wages." It is

certainly beyond all question that 30/- a week, which is the present

wage over a large part of England, is not, even with only 3/- a week

rent for house and garden, enough to keep a man and his wife and family

in a state of real efficiency. Yet I know from personal experience that

this fact is not properly recognised in practice. If one tries to pay

more one is regarded as a very rich man, and an extremely stupid one--an

idea erroneous as to one's wealth and possibly exaggerated as to one's

mentality.

How have the two conflicting views of farmer and labourer been

reconciled in practice. I can only say that so far as my own knowledge

extends--bearing in mind that the farmer has not the business man's

habit of cheerfully setting off a bad year against a good (for the

business man knows that trade must improve some time, and then he will

make profits, while the farmer has no certainty that things will

improve)--things might well have been worse. There has been a good deal

of mutual consideration and desire to make the best of difficult

circumstances. I have, however, little doubt that it would have been

better had the Wages Boards, which had controlled the rise in wages

during the rise in the cost of living, regulated the fall in wages

during its fall--relaxing control perhaps later when things became more

stable.

The reason why I think that things might have been worse is that the

District Wages Committee left a good legacy to the voluntary

Conciliation Committees which followed them--the men serving on the

latter were those who under the Wages Board system had learned to

negotiate with and to know and respect the workers--generally some of

the best farmers in their districts--and they genuinely tried not to let

the workers down with too much of a bump; on the other hand, they knew

that the only value their recommendations could have was that they

should be voluntarily observed, and therefore they took care not to

recommend rates higher than those which the least favourably situated

farmers in the district could manage to pay--which meant rates lower

than many might have been willing to give. This means that any general

rate agreed to voluntarily will be rather on the low side. But I would

rather have a rate which is generally observed, even if it is rather

low, than that every farmer should be a law unto himself. If there is no

recognised standard, and one man with impunity pays a lower rate than

his neighbours, other rates also tend to come down, and then the process

begins over again.

Looking to the future, the only thing that I can say with any certainty

about the wages question is that it needs very careful watching. Let us

be sure first of our principle, that the first charge on land, as on any

other industry, should be a reasonable standard of living for the

workers. Then let us be sure of the fact that there is over a very large

part of England and Wales no certain prospect of an improvement in the

condition of the labourer compared with conditions ten years ago. The

dangers to be feared are that in the present lamentable weakness of the

men's unions large sections of farmers may break away from the

recommendations of their leaders; and that if depression continues and

war savings become depleted farmers will tend to push wages down in

self-preservation. These things must be watched. If the general

condition of agriculture improves without a corresponding improvement in

the workers' condition, or if conditions get worse and the brunt of the

burden is transferred to the labourer, we ought to be prepared to

advocate a return to the old Wages Boards or the adoption of a Trade

Board system. It must, I think, be a cardinal point of our Liberal faith

that though it is better to leave industrial questions to be adjusted as

much as possible by the parties concerned in the industry, the State

must be ready to step in in any case in which the workers have not

developed the power by their own combination to secure reasonable

conditions and prospects. It is to the prospects that I now turn.

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