(c) crown copyright Catalogue Reference:cab/66/25/4 Image Reference:0001

(c) crown copyright

Catalogue Reference:cab/66/25/4

Image Reference:0001

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.