(c) crown copyright Catalogue Reference:CAB/24/182 Image Reference:0002 (THIS J)Q;fflMENT I&'TjiiT-Pk0^m£^ gfr HfS Srifrj-^iffTj F.K JEVi£'irikofo:ifeNT ). MOST^gEJRET. Copy Mo. CP. 406(26 )o C A B I N £ T. LEGISLATION COMMITTEE* THIRD REPORT. 1. At their Meeting on the 3rd August, 1926, (Cabinet 50 (26) Conclusion 11), the Cabinet requested the Committee to revise the draft Trade Union Bill in the light of the proposals contained In the Committee ! s Second Report (CP. 305 (26)), i t being understood that the Cabinet were not committed to the proposals and that the whole subject would be reconsidered later in the year. 2o The proposals contained in the Committee^ Second Report provided for (a) the substitution of an optional ballot for the compulsory ballot system suggested in the Committee1 s First Report (C 237 (26)); (b) the strengthening in certain directions 1 . of the law regarding picketing; and (o) the registration of all Trade Unions, and of alterations of Trade Union rules, 3 0 During the Autumn Recess the Committee examined - ' certain proposals for the amendment of Trade Union I '" "law. submitted to the Prime Minister by the Engineering 1. and Allied Employers National Federation, and the 1. National Confederation of Employers' Organisations, and also proposals laid before the Minister of Labour by the National Union of Manufacturers. These three important bodies agreed in pressing for drastic amendment of the provisions of the Trade Disputes Act, 1906, particularly those relating to the immunity of Trade Unions in respect of tortious acts (section 4) and in respect of inducement to break contracts of service (section 3); for the strengthening of the law on the subject of picketing; for the registration of Trade Unions; for the separation of provident from other funds and the adequate protection of the former; and for the substitution as regards the political levy of the system of "contracting in" for the existing system of "contracting out". The National Union of Manufacturers favour the provision of secret ballot machinery. The Engineering Federation think such provision desirable, but in view of the difficulties of making a secret ballot compulsory, refrain from making any definite reconmendation, while the National Confederation are unanimously and definitely opposed to any such proposal. 4. The Committee have also considered the suggestions of the Chancellor of the Exchequer and the Minister of Labour contained in Memoranda (C *P* 365 (26) and CP . 394 (26)) circulated to the Cabinet, and they have been supplied by the Home Secretary with further information and suggestions on the subject of peaceful picketing. IJ-HE TRADE 5, In view of the strong and. growing demand from fDISPUTES many quarters for repeal or drastic modification of the Trade Disputes Act 1906, the Committee have again considered -whether, and if so to what extent, it might be practicable to amend that Act with a view to mitigating its more objectionable features. Some members of the Committee favour the repeal of Section 3 2o in so far as it gives protection from legal consequences to those who persuade others to break their contracts of service, and the repeal of Section 4 to the extent of rendering, the Unions liable for the tortious acts of their officials and other duly authorised agents, but subject to adequate protection for the provident funds.. A majority of the Committee, however, remain of opinion that the political and other objections to any substantial modification of the Trade Disputes Act outweigh any advantages to be derived from such action.. In 'these circumstances the Committee have not Included in their draft Bill an amendment of Section 3 and 4 of the Trade Disputes Act 1906, but such a clause can be aclfied If the Cabinet so decide. 6. In the third paragraph of their Second Report (CP. 305 (26)),. the Committee set out their reasons for recommending the Cabinet to reject the proposal for a compulsory secret ballot before a strike; since that ' Report was before the Cabinet, the considered views on this subject, of the National Confederation of Employers' Organisations have been received. As indicated above the Confederation are strongly opposed to a compulsory ballot if existing Trade Union privileges, are to be retained. It is true that a minority of the Federation are prepared to accept such a ballot "if introduced in addition to the safeguards proposed by the Federation in respect of torte, inducing breach of contracts and picketing", but the majority are hostile even to this strictly limited acceptance of the principle. -5­ The Committee have further considered the proposal ? £ g that provision should be made in the Bill for a ballot to be taken under official control if a trade union so desires; but while there has been some support for the proposal on general grounds, a majority of the Committee are of opinion that the provisions would tend to overload the bill, and, if enacted, would have little , if any, practical value, and that the desired object could be attained almost, if not quite, as effectively by requiring that in future the Rules of all registered Trade Unions should include provisions for securing secrecy and freedom from interference in voting at every ballot held for the purposes of the Trade Uniono The Committee, by a majority, accordingly recommend the Cabinet not to proceed with the suggestion that the Bill should include specific provisions for a voluntary ballot. PROPOSED 7. The Committee have given prolonged and ffiPT BILLo careful consideration to the contents of the draft Trade Unions and Trade Disputes Bill, a copy of which is appended to this Report. The more important proposals in the Bill are explained in the following paragraphs. tiiCrAL 80 Clause 1 (1) is declaratory of the law on the IKES. subject of general strikes, and is in the same terms as the clause on this aubject which has already been approved in principle by the Cabinet. The Clause as drafted will not apply to a genuine sympathetic strike by members of a trade union having a direct interest in the result of the original strike, but the question whether a particular sympathetic strike is or is not a genuine one will, if necessary, have to be determined by the Courts, Clause 1 (2) deprives Trade Unions participating in illegal strikes of the protection given by existing Trade Union legislation. EOTION 0? 9. Clause 2 of the Bill is substantially in the ONS REFUS- TO TAKE form of trie opening provisions of Clause 4 of the Bill 1 IN XJAL STRIKES, previously before the Cabinet (C.P. 237 (26) Appendix III). The remaining provisions of that clause gave effect to a proposal that, as an alternative to legal proceedings, an aggrieved person should have the right to complain to the Chief Registrar of Friendly Societies. After careful consideration the Committee have come to the conclusion that the advantages to be derived from the enactment of tiiis alternative remedy are not such as to justify overloading the Bill with the elaborate provisions which its incorporation involves. 10c. The Committee agree with the Home Secretary in thinking that the abuses of picketing can be best dealt with by strengthening the executive powers of the police in two respects. In the first place it is desirable to emphasise the existing common law right of the police to disperse persons assembled outside works and premises, where a strike is in progress, in such numbers as to cause a reasonable apprehension in the mind of any person who may be at work there or who may be willing aad ready to go to work. Secondly, it is essential that the narrow interpretation given by the Courts to the word "intimidation" should be enlarged so as to include threats of. loss or d.-image other than by violence to persons or property; - this, if done, will go far to prevent the more serious abuses of picketing at a worker's home, while at the same time will not interfere with the right of anyone to canvas at or visit the house of the worker for any legal purpose. Clause 3 (1) of the Bill is designed to declare the present law and incidentially to meet the first of the above named points. Clause 3 (2) interprets trie expression "to intimidate" as meaning to cause in the mind of a person a reasonable apprehension of injury to him or to any member of his family, or of violence or damage to an;/ person or property. The expression "injury" includes injury­ other than physical or material injury, and accordingly the expression "apprehension of injury" includes an apprehension of boycott, cc loss of any kind, or of exposure to hatred, ridicule, or contempt. Under Clause 3 (4) it would in future be illegal for one or more persons to watch or beset a house or a man's home for the purpose of inducing, him to work or abstain from working; but a visit for the genuine purpose of canvassing a worker for. or against a strike would not be interfered with. The Committee have given further consideration to the question of including in the Bill a provision requiring persons employed by a Trade Union to act as pickets to wear, a distinguishing badge, and. as a result of such consideration they have come to the conclusion that such a provision might hamper rather than assist the police in the execution of the^r duties. An obligation to wear badges would revive and strengthen the popular misconception that a picket is a privileged person with rights and immunities different from those of the ordinary citizen.