their present full-time earnings. Prolonged negotiations between the cotton masters and operatives on June 3 failed to reach a settlement on the question of the amount of reduction, and a strike began at noon on June 4. Action was immediately taken by the Minister of Labour, who invited the representatives of the employers and of the operatives to meet him on June 7. The object of the Minister was to induce the parties to meet and reach some sort of a compromise, and after the negotiations had several times very nearly broken down, provisional terms of settlement were at length reached on June 15. They provided for a reduction of 70 per cent. on the standard piece price list rates of wages equivalent to a reduction of 4s. 5d. in the £ on current wages. Of this 70 per cent. reduction, 60 per cent. was to come into operation forthwith, while the remaining 10 per cent. was to take effect at the end of six months. At any time after the expiration of six months either side desiring an alteration in the rates of wages, were to give three months' notice to the other side of the alteration which they desired. This compromise represented great concessions on both sides, the employers having originally demanded a reduction of 6s. in the £, while the operatives had offered to accept the equivalent of about 2s. in the £.

The terms of settlement were accepted by a joint meeting of delegates representing the three organisations of operatives, but the spinners separately refused at first to fall in, and an unexpected delay occurred in terminating the strike. It was not until June 23 that they at length gave way, and the formal ratifications of peace were exchanged on the following day. Thereupon the mills re-opened and the strike was at an end.

Corresponding reductions of wages took place in the woollen industry with much less disturbance. The reductions ranged from 13s. 6d. to 12s. 5d. per week for men, and affected 200,000 operatives.

A crisis also arose during the month in the engineering industry, owing to the breakdown of negotiations on the wage reductions which had been notified by the employers. These reductions amounted to 6s. per week for time workers and 15 per cent. on piece-work rates, together with the abolition in September of the bonus of 12 per cent. for time workers and 7 per cent. for piece workers on total earnings granted to meet special war-time conditions. The proposal was subsequently modified to the extent that the reduction should take place in two steps at a month's interval instead of all at once. suggestion was based on the shipbuilding agreement which was on precisely similar lines. A strike was called for June 15, the number of employees affected being 14 millions, but at the last moment intervention by the Minister of Labour led to a resumption of negotiations, and a suspension of the strike notices for a fortnight was ordered. During the interval a ballot took place on modified terms offered by the employers. The effect of this

This

modified offer was to postpone the first half of the reduction already referred to until the first week in October, and the second half to such time as the cost of living index figure might fall to 115, but not in any case earlier than the beginning of November. The war bonuses were to be removed in three stages in July, August, and September.

The result of the ballot on the terms offered by the employers was announced on June 29, and showed a majority of more than two to one against acceptance. Conferences, however, were immediately resumed in the hope that a settlement might yet be reached without recourse to a stoppage of work. These new negotiations resulted in a further modification of the terms. whereby the reduction in wages should come into force as already proposed, but the question of the war bonus should be deferred and again considered during September. The representatives of the Trade Unions in the engineering industry agreed to have another ballot and recommend these improved terms to the men. This new ballot took place about a fortnight later and showed a majority in favour of accepting the terms. No strike, therefore, took place and peace reigned in the industry

once more.

The coal strike continued throughout the month of June, but the miners were gradually weakening, and their ultimate defeat became more certain as the month went on. Train services, instead of deteriorating further, began to improve; in a number of industries oil began to be used for driving the engines; at the beginning of the month the embargo placed by the railwaymen and transport workers on imported coal came to an end. In most districts there had been a marked reluctance on the part of the men to comply with the order for the embargo, and when the Ministry of Transport had given an assurance that no imported coal would be used except for vital public services, and that members of the Unions who had been suspended would be reinstated, the Unions concerned definitely withdrew their instructions to their members to refuse to handle coal, and henceforward coal was imported without any further difficulty. The situation was so improved that the Army Reserve which had been called up on April 8 was demobilised at the beginning of June, the new Defence Force being found quite sufficient for the preservation of public order.

The reply of the Miners' Federation to the Government proposals submitted on May 28 [v. p. 55], was conveyed to the Prime Minister on June 3. The Executive of the Federation limited themselves to informing Mr. Lloyd George that they had received the replies from their districts upon the Government proposals, and that in every instance these proposals had been rejected. Thereupon the Government informed the miners that they had nothing further to propose, and that the offer of 10,000,000l. for the purpose of temporarily easing the wage difficulties could not remain open longer than another fortnight. This period

was allowed in order to give sufficient time for a ballot cf members of the Federation, if it was desired to take one, or for a settlement to be approached by other means.

No time was lost in ascertaining whether other means would be likely to effect a reconciliation. After an interval of nearly eleven weeks leaders of the coal-owners and of the miners met on June 6 and discussed for several hours the various points in dispute. This discussion led to further steps. It was decided to hold a full delegate Conference of the Miners' Federation on June 10 when the Executive Committee would recommend a ballot on the proposals of the Government and the owners. The proposals on which the ballot was to be taken involved a temporary scheme of settlement, and also a permanent scheme. Under the temporary scheme reduction in wages was not to exceed 2s. per shift for workers over sixteen until August 1; after August 1 further reductions were to be enforced until the Government grant had been exhausted. The permanent scheme provided for a National Board to fix principles for the guidance of District Boards with reference to the ratio of profits to wages and the new standard wage. District Boards were to fix a minimum for the lowest paid day worker, which would secure him a subsistence wage. The decisions of the National Board were to continue for twelve months, and were afterwards to be determined by three months' notice on either side.

As to the exact amount of the reduction after August 1, this would naturally depend upon the period of time over which the Government grant of 10,000,000l. was to be spread. The question, therefore, put to the miners at the ballot was whether they were to continue fighting on for the principles of the National Wages Board and the National Pool, thereby losing the Government subsidy, or whether they were to accept the terms offered by the Government and the owners.

The result of the ballot was announced on June 17, and gave a large majority in favour of continuing the strike. A question had arisen whether a bare majority would have sufficed to maintain the strike according to Union rules, but the actual majority gave a clear margin of more than 20,000 votes over what would have been a two-thirds majority, and the question therefore was left unsettled. The decision of the men was immediately communicated to the Government with the intimation that in view of the ballot the stoppage must continue. The Prime Minister thereupon informed the Executive of the Miners' Federation that the offer of a grant of 10,000,000. could no longer remain open.

There was no doubt that the miners' leaders had been extremely anxious to see the proposals of the Government accepted. Their funds were nearly exhausted, and they knew that it would be impossible to continue the strike much longer. The decision of their followers placed them, therefore, in a very difficult situation; and though they took every possible measure

to improve their position, they were unable to do much. They decided forthwith to seek a meeting with the Executives of all Unions affected by wage disputes, with the object of taking national action. In reply they received much sympathy, but virtually no offers of material assistance. The movement, in fact, never had the slightest prospect of success, and before the negotiations had reached the point of a Conference, this last forlorn hope was abandoned and a new move towards peace suddenly appeared on the horizon.

For no sooner had the result of the ballot been declared, in which the proposals of the Government appeared to be so definitely rejected, than fresh negotiations were set on foot in which the miners' leaders showed a far more genuine desire for peace than they had yet exhibited. The Prime Minister was requested by the Miners' Executive to call fresh Coal Conferences, and on June 27 the miners and owners at length succeeded in reaching a provisional agreement. The main points of this agreement were as follows: National and District Wages Boards were to be established with equal representation of both sides and independent chairmen; district wages were to be in the form of a percentage upon the district basis rates, periodically adjusted and determined by the proceeds of the industry in each district ascertained after joint audit. Wages above the standard were to amount to a sum equal to 83 per cent. of the proceeds after allowance for standard wages, for other costs of production, and for 17 per cent. of the aggregate standard wages to be devoted to standard profits. A subsistence wage for low-paid day workers was to be decided by the District Wages Board, or, failing agreement, by the independent chairmen. Standard wages were fixed as the basis rates existing in each district on March 31 last, with the addition of the district percentages payable in July, 1914, or equivalents necessitated by subsequent adjustments. The minimum rate was to be the standard wage within an addition of 20 per cent. Items of costs were to be decided by the National Board, or, failing agreement by July 31, by the independent chairmen. During the temporary period of three months the costs of production were to be based on the average of the first quarter of the year. reductions during this period were not to exceed 2s. per shift in July, 2s. 6d. in August, and 3s. in September, providing that the balance of the Government grant was sufficient. The agreement was to last until September, 1922, and otherwise only to be terminated by three months' notice on either side. There was to be no victimisation, and men engaged temporarily during the stoppage were to give way to men working in their places before the stoppage.

The

Mr. Lloyd George informed the House of Commons of this provisional agreement on June 28. He then moved the adjournment of the House, announcing that the demand for a