Tweet

Colliery Engineering

February, 1945

Proposals for Achieving the Objective

These consist essentially in the enunciation of twenty Principles and the establishment of a Central Coal Board with powers to ensure that they are everywhere carried into effect.

The Principles are as follows :–

I. A National Conception of the Industry's Responsibilities. —

That the Industry should take a national conception of its responsibilities to the Country, and should look upon the Industry broadly as one family with branches in every coal producing area; each undertaking being independent and self-supporting under all normal conditions, but all mutually interested in the prosperity of the whole and organised to solve all its problems, financial, technical or commercial, within its own four walls.

II. Mining in Accordance with the Best Principles and Practice. — That the coal of the country should be mined in accordance with the best mining principles and practice with due regard:

(a) to the importance to the present generation of adequate supplies at a proper price and of the proper quality,

(b) to the importance of the conservation of our coal resources for future generations, and

(c) to the safety at all times of the mining operations.

III. Availability of Best Professional Advice to all Undertakings. —

(a) That the Industry, both nationally and in every district, be so organised and equipped as to make available at any time to all undertakings the best professional advice, whether technical, industrial, commercial or otherwise, based upon up-to-date knowledge and experience, with a view to securing the most economical and efficient working, treating and disposing of its coal.

(b) That the arrangements in each District, with regard to the provision of power, the pumping of water, the purchase and stocking of stores and materials and engineering workshops, should be such as will provide for these services being performed with the greatest measure of economy and efficiency.

IV. The Industry to be brought to, and Progressively Maintained in, the Highest State of Efficiency. — That the Industry should be brought as quickly as practicable to, and progressively maintained in; the highest state of efficiency that modern knowledge and the geological and other conditions will allow. This will include the mining operations themselves, the sinking of new pits where necessary, the handling and transport of the coal below and above ground, and its preparation for the market.

V. Closer Integration of the Industry. — That the Industry, acting through the Central Board and the District Boards described below, give every support and encouragement to the closer integration of the Industry into a smaller number of units by voluntary agreements, and to compulsory amalgamations, or absorptions in the special circumstances referred to later.

VI. Closing of Existing or Opening of New Pits. — That in the interests of the workers in the Industry, no existing pit be closed or new pit be opened unless the Central Board, on the advice of the District Board, is satisfied, in the first case that all practicable arrangements have been made for the absorption and accommodation of the men elsewhere, and, in the second case, that due consideration has been given to the housing, transport and general welfare of the men to be employed.

VII. Commercial Arrangements. — That the commercial arrangements for the disposal and sale of coal and its distribution, at home and abroad, be such as will ensure:

(a) Positive and progressive selling into every market at home and abroad, with a view to the expansion of that market; and the full development of the present selling arrangements in the Industry in order to establish this position, together with the elimination of inter-colliery and inter-district competition; this to include such powers in the hands of the selling organisations as are necessary to enable them to give financial support to any particular class of business — whether inland or export — where such support appears for the Central Board to be necessary in the interests of the industry as a whole.

(b) The fullest possible employment of each producing unit throughout the year at its optimum capacity.

(c) The elimination of all unnecessary distribution charges from the pit to the consumer, and the establishment and maintenance of the principle that distribution is a service to the consumer for which there should be an adequate but no more than adequate reward.

(d) The creation, jointly with the distributors, both wholesale and retail, of an organised method of giving effect to (c).

(e) The building up, in co-operation again with the distributors, of a technical organisation designed for giving, and used to give, the best technical advice to consumers in every category and class, to enable them to purchase the type and sizes of coal most suitable for their requirements and to use it in the most efficient and economical way.

(f) The maintenance of close contact and liaison with consumers generally, whether organised or not, and the full disclosure of all information to enable the consumer to judge for himself of the fairness of the price being charged from time to time, in relation both to the costs of production and distribution and to the price being charged for other descriptions of coal or to other consumers.

VIII. A good Standard of Living and Stability of Employment for the Workers. — That to the workers in the Industry there should be ensured a wage, a stability of employment, and general conditions that will give them a good standard of living throughout their working life; and that, as a principle, the earnings of the underground workers should be maintained at a level in each district which will give them there, the pride of place amongst the industrial workers.

IX. An Adequate Return on the Capital Employed. — That there should be a reasonable return on the capital employed in the Industry after allowing at all times for proper appropriation to be made for amortisation, for the depreciation of plant, and for development.

X. Full Information for the Workers and Close Liaison between the Two Sides of the Industry. — That the workers in the Industry be kept fully informed of its progress and circumstances in every direction and given every opportunity and encouragement to make their full contribution towards its greater prosperity. For this purpose close liaison between the two sides should be established and permanently maintained, on a National level, on a District level and at every colliery. With this object in view a Joint National Committee, a suitable Joint Committee in each District and Pit Production Committees should be regarded as essential parts of the structure of the Industry. The latter should not only be continued and everywhere be brought up to the level of the many that are already being operated with success, but the scope of their discussions, and, if necessary, their constitution, should be enlarged and altered to enable proper effect to be given to the general intention stated in this paragraph. No matter that is established as one of national principle should be excluded from the discussions of the Joint National Committee, the Joint District Committee or the Joint Committee established in each colliery.

XI. Maintenance of Existing Conciliation Machinery. — That the comprehensive District and National Conciliation Machinery for the settlement of questions relating to rates of wage and conditions of employment in the Industry, with ultimate recourse to a National Tribunal, independent of the Industry, for final and binding decision, which was established by agreement between both sides of the Industry following the report of the Board of Investigation under the chairmanship of Lord Greene, remain as part of the permanent structure of the Industry.

XII. Application of Modern Principles of Labour Administration and Management. — That the best modern principles of labour administration and management be applied throughout the Industry, and that, dependent upon the size and circumstances of each undertaking, satisfactory arrangements in accordance with these principles be established and maintained at every colliery in the country. Included under this heading will come such matters as:

(a) The general health and morale of the workers.

(b) Discipline, labour management and leadership.

(c) Proper and impartial handling of all cases of suspension or dismissal.

(d) Proper arrangements for the prompt discussion and settlement of grievances of all kinds and local wages questions that are appropriate for individual settlement.

(e) Training and education.

(f) The impartial handling of opportunities for up-grading and promotion.

(g) General welfare.

XIII. Application by Every Colliery of the Best Practice Regarding Safety Arrangements. — That the best practice be applied by every colliery undertaking with regard to the safety of all its underground and surface arrangements with the purpose of moving always in the direction of greater safety in the mine itself, and of education and training of the workers in safety-first precautions for the greater protection of themselves and their fellow workers.

In this connection the work of the recently established Joint National and District Safety Boards should receive every support and encouragement, and it will be a matter of importance for those Boards to ensure that there exist in every undertaking close liaison arrangements between the management and the workmen so as to make certain that this important matter is kept continually under review by joint discussion and co-operation.

XIV. Encouragement of Research. — That every support, encouragement and financial backing be given to Research whether conducted by the Industry itself or by outside bodies.

XV. Recruitment, Education and Training. — That proper arrangements be established everywhere throughout the Industry, and maintained permanently, for the recruitment of new entrants to the Industry and for their subsequent education and training, and for the further training and education of those already employed in it.

XVI. The Workers to have the Right to Call these Principles to their Aid. — That the workers in the Industry should have the right (to he exercised through their local and National organisations) to call these principles to their aid in any matter in which they can show that any of the principles designed for their protection are not being kept fully in operation in any District or in any colliery undertaking.

XVII. Contact and Consultation with the Minister of Fuel and Power. — That close contact and consultation be maintained on all matters that may involve national policy, as distinct from the domestic policy of the Industry, with the Minister of Fuel and Power and through him with any other Government Departments concerned.

XVIII. Contact with the Coal Commission. — That close contact be continually maintained with the Coal Commission Nationally and in the Districts, in such a way as will ensure reciprocal co-operation for the good of the Coal Industry of the country in the present and the future.

XIX. Power to Finance any Colliery Undertaking. — That it be competent to the Board, and it shall be given the legal constitution necessary to enable it to do so, to provide at its sole discretion any moneys necessary to finance any colliery undertaking either for capital or revenue purposes, and for this purpose either to raise loans itself or guarantee loans raised by other means; and if any security other than that which can be provided by the assets of the particular undertaking is necessary, it shall be at liberty to give such security.

It shall also be competent for the Board to raise by way of levy such amounts as may appear to it to be necessary for giving effect to any or all of the principles now and at any time hereafter to be established and for the general administration of its affairs — all levies to be charged as part of the management cost of each undertaking.

XX. Autonomy of Colliery Undertakings Subject to Faithful Adherence to these Principles. — That, subject to faithful adherence to these principles and to the proper carrying out of any decisions of the Central Coal Board, which I now proceed to describe, it shall be a principle also that there shall be no interference — financial or otherwise — with the autonomy, independence and power of decision of any colliery undertaking in its own individual management and enterprise, or with the normal activities of the District organisations.