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LI  B  RARY 

OF   THE 

U  N  IVERSITY 

or    ILLINOIS 

331.  i 
v\o.  \- 2.5 


INSTITUTE      OF      LABOR       ANC 
INDUSTRIAL       RELATION! 


BULLETIN 


Municipal 
Mediation  Plans 


UNIVERSITY        OF        ILLINOIS        BULLETI 


I.L.I.R.      PUBLICATIONS      SERIES      A,      VOL.     I,      NO.      5,      OCTOBER     19": 


THE  INSTITUTE  OF  LABOR  AND  INDUSTRIAL  RELATIONS 
has  as  a  major  responsibility  "to  inquire  faithfully,  honestly,  and  im- 
partially into  labor-management  problems  of  all  types,  and  secure  facts 
which  will  lay  the  foundations  for  future  progress  in  the  whole  field 
of  labor  relations."  Report  of  Board  of  Trustees,  March  9,  1946, 
page  1031. 


Phillips  Bradley  Milton  Derber 

Director  Research  Co-ordinator 

Ralph  Norton 
Editor 


Research  bv  Lucille  Brown 


UNIVERSITY     OF     ILLIN  O  ^  i     BULLETIN 

Volume  45;  Number  16;  October  29,  1947.  Published  every  live  days  by  the  University  of 
Illinois.  Entered  as  second-class  matter  at  the  post  office  at  Urbana,  Illinois,  under  the  Act 
of  August  24,  1912.  Office  of  Publication,  358  Administration  Building,  Urbana,  Illinois. 
Acceptance  for  maihng  at  the  special  rate  of  postage  provided  for  in  Section  110.^,  Act  of 
October  3,    l')17,  authorized  July   31,   1918. 


MUNICIPAL  MEDIATION  PLANS 


Recent  interest  in  mediation  of  labor  disputes  has  Ijeen  shown  at 
all  levels  of  government  —  federal,  state,  and  municipal.  This  inter- 
est was  given  additional  impetus  when  the  War  Labor  Board  was 
dissolved  at  the  close  of  the  war  and  at  the  same  time  the  number 
and  severity  of  labor  disputes  was  increasing. 

In  addition  to  its  regular  functions,  the  U.  S.  Conciliation  Serv- 
ice had  shown  signs  of  interest  in  local  and  area  plans  for  settling 
labor  disputes.  A  report  issued  by  the  American  Municipal  Associa- 
'       tion  in  Alay,  1947,  describes  one  of  these  local  plans  as  follows: 

Possibility  of  future  widespread  establishment  under  Federal  auspices 
of  industrial  relations  groups  similar  to  the  labor-management  committees 
provided  for  by  the  'Toledo  Plan'  is  indicated  by  the  creation  in  late  Decem- 
ber, 1946,  of  a  'Labor-Management  Assembly'  in  Philadelphia  under  the 
sponsorship  of  the  U.  S.  Department  of  Labor.  Composed  of  22  representa- 
tives of  labor,  management,  and  the  public,  this  'assembly'  was  set  up 
under  the  supervision  of  the  director  of  the  U.  S.  Conciliation  Service,  an 
arm  of  the  Labor  Department,  and  assigned  the  following  functions: 

(1)  To  review  the  work  of  the  U.  S.  Conciliation  Service's  Philadelphia 
branch  office,  checking  especially  the  effectiveness  of  its  mediation  efforts 
and  the  impartiality  of  its  conciliations; 

(2)  To  assist  in  the  mediation  of  disputes  which  threaten  to  disrupt  the 
industry  or  the  economy  of  the  area ;  and 

(3)  To  refer  such  disputes  to  a  'peace  panel,'  a  subcommittee  of  the 
"assembly,"  having  an  equal  number  of  labor  and  management  representa- 
tives, with  the  panel  attempting  to  settle  the  differences  but  without  making 
any  findings  or  public  recommendations. 

The  extension  of  conciliation  services  along  regional  lines  is 
now-  in  the  hands  of  the  newly  created  Federal  Mediation  and  Con- 
ciliation Service.  This  agency  was  set  up  by  the  Labor  Management 
Relations  Act,  1947,  to  replace  the  U.  S.  Conciliation  Service  and 
is  independent  of  the  Department  of  Labor. 

Among  the  states.  New  York,  Massachusetts,  New  Jersey, 
Michigan,  and  Illinois,  have  functioning  mediation  and  conciliation 
services. 

Interest  in  municipal  mediation  has  been  translated  into  action 
and  working  plans  in  only  a  few  cases,  including  Toledo,  Louisville, 
Boston,  and  New  York,  among  others.  The  usual  practice  in  cities 
where  such  plans  do  not  exist  is  for  the  Mayor  to  take  action  only 
when  the  "labor  sittiation"  so  obviously  threatens  the  public  interest 


4  I.   L.   I.   R.  BULLETIN 

as  to  create  serious  difficulty  in  the  community.  This  has  been 
described  as  crisis  action  and  does  nothing  in  the  way  of  removing 
the  causes  of  labor  disputes. 

This  Bulletin  is  limited  to  the  consideration  of  two  questions: 
First,  what  general  and  specific  operational  problems  are  encoun- 
tered by  any  municipal  mediation  agency  ?  Second,  under  what  con- 
ditions should  this  type  of  mediation  facility  be  extended  to  other 
cities,  and  with  what  modifications  ?  Since  analysis  must  wait  upon 
description,  some  idea  of  the  workings  of  these  plans  will  be  given 
before  proceeding  to  analyze  their  difficulties. 

Toledo  Agencies  Past  and  Present 

Any  discussion  of  municipal  labor  plans  must  begin  with  Toledo, 
the  trail  blazer  in  municipal  mediation. 

A  series  of  disastrous  strikes,  threatening  to  disrupt  the  indus- 
trial life  of  the  community,  resulted  in  the  original  Toledo  Industrial 
Peace  Board.  The  Board  was  inaugurated  in  1935  with  the  aid  of 
Edward  F.  McGrady,  then  Assistant  U.  S.  Secretary  of  Labor.  The 
Board  as  it  was  finally  constituted  was  made  up  of  18  members  — 
five  management,  five  labor,  and  eight  public  representatives.  The 
key  to  the  successful  operation  of  the  Board  was  its  director, 
Edmund  Ruffin,  a  former  newspaper  reporter,  who  maintained 
direct  and  vital  contact  with  the  parties  involved  in  any  controversy. 
He  called  upon  Board  members  only  in  those  cases  proving  impos- 
sible of  direct  and  immediate  settlement  by  him  and  was  largely 
responsible  for  the  success  of  the  Board.  There  was  no  established 
procedure  and  no  compulsion  to  use  the  Board  or  to  abide  by  its 
suggestions.  The  only  pressure  was  that  exercised  by  the  local  news- 
papers, which  consistently  emphasized  the  public  interest  in  the 
peaceful  settlement  of  disputes. 

Board  Policies.  The  policies  of  the  Board  drawn  up  by 
McGrady  to  insure  its  successful  operation  were  quoted  in  the 
Toledo  City  Journal  of  January  22,  1938  as  follows: 

1.  The  Board  will  never  at  any  time  have  authority  to  order  anyone  to 
do  anything. 

2.  Co-operation  between  labor,  management  and  the  Board  will  be 
entirely  voluntary. 


MUNICIPAL    MEDIATION    PLANS  5 

3.  Members  of  the  Board  will  represent  the  conimunity  at  larj^e  rather 
than  an}'  faction  or  group. 

4.  The  Board  shall  merely  mediate,  which  is  to  say  make  recommenda- 
tions or  suggestions,  which  ma\-  be  mutually  approved  or  rejected. 

5.  The  Board  shall  never  arbitrate,  which  is  to  say  it  shall  not,  even  by 
mutual  request,  make  "binding"  or  "final"  decisions  which  both  sides  must 
accei)t.  These  might  lead  to  loss  of  confidence  in  the  Board  no  matter  how 
fair  the  decisions. 

6.  The  Board  will  never  take  a  vote  on  the  rightness  or  wrongness  of 
the  issues  in  a  dispute.  No  judge  or  jury  attitude  will  ever  be  displayed. 

7.  The  Board  will  operate  with  an  irreducible  minimum  of  publicity. 

8.  The  Board  will  not  interfere  with  or  assist  in  union  organization 
campaigns. 

9.  The  Board  will  take  no  positions  on  such  questions  as  "open  shop" 
or  "closed  shop." 

.\lth(jugh  operating  on  a  small  scale,  the  Board  handled  success- 
fully over  100  major  and  minor  disputes.  The  substantial  reduction 
in  the  amount  (^f  labor  conflict  in  Toledo  won  national  fame  and 
gradttally  other  cities  facing  the  same  problems  took  notice  of  it, 
sent  observers,  and  adopted  similar  plans. 

During  the  war  the  functions  of  the  Toledo  Industrial  Peace 
lUjard  were  gradually  assumed  by  the  National  War  Labor  Board 
and  other  wartime  government  agencies.  As  a  result,  the  Board  was 
disbanded  in  1943. 

In  1945  as  the  war's  end  seemed  imminent,  it  was  decided  to 
appoint  a  committee  to  study  labor-management  relations  in  Toledo; 
If  conditions  warranted,  machiner}-  was  to  l)e  set  up  to  prevent  and 
settle  fitture  labor  conflict. 

Postwar  Committee.  After  many  meetings  and  discitssions, 
the  committee  drew  up  an  Industrial  Relations  Charter  enumerating 
the  principles  upon  which  operation  of  any  mediation  group  would 
be  based.  The  principles  entimerated  in  the  charter  included  the 
following: 

1.  That  management  and  labor  each  recognize  and  respect  the  preroga- 
tives and  responsibilities  of  the  other. 

2.  That  there  be  made  available  for  voluntary  utilizati(Mi,  mediation, 
fact-finding  and  arbitration  facilities. 

v3.  That  an  educational  program  to  promote  better  understanding  be- 
tween management  and  labor  be  imdertaken. 


O  I.   L.   I.   R.   BULLETIN 

This  Charter  contained  also  the  structural  framework  of  a  proposed 
Labor-Management-Citizens  Committee  and  was  adopted  by  the 
planning  committee  in  November  of  1945.  In  February,  1946,  a  city 
ordinance  was  passed  establishing  a  permanent  LMC  Committee 
and  incorporating  the  Charter  into  law.  By  June  of  that  year  a  per- 
manent office  was  opened  and  a  full-time  Executive  Secretary  ap- 
pointed. The  members  of  the  original  investigating  committee  were 
appointed  to  the  permanent  LMC  Committee. 

The  LMC  is  made  up  of  18  members  receiving  no  salary  for 
their  work  —  six  each  from  labor,  management  and  the  public  — 
appointed  by  the  Mayor  for  one  year.  The  purpose  of  this  Commit- 
tee, as  stated  in  its  enabling  ordinance,  is  that  it  should  act  as 
".  .  .  the  directing  body  for  the  purpose  of  implementing  and 
effectuating  the  purposes  and  principle  of  the  Charter  .   .   ." 

Dispute  Procedure.  When  a  dispute  arises  or  threatens  and 
the  services  of  the  LMC  are  desired,  the  case  is  first  referred  to 
the  office  of  the  Executive  Secretary.  The  Secretary  may  attempt 
to  settle  the  matter  personally,  but  if  the  dispute  is  too  serious  or 
too  complex  to  be  settled  at  this  level  and  mediation  by  the  panel 
is  desired,  preliminary  interviews  are  held  with  the  parties  con- 
cerned. The  Secretary  then  draws  up  a  statement  of  the  issues  in- 
volved in  the  dispute,  including  the  position  taken  by  each  party, 
and  submits  it  to  a  tri-partite  panel  selected  by  the  Chairman  to 
mediate  the  case. 

If  the  panel  is  unsuccessful  in  settling  the  dispute,  it  may  refer 
the  dispute  to  the  full  committee.  The  LMC  may,  at  its  discretion, 
choose  to  sit  in  on  the  case,  but  ordinarily  will  do  so  only  in  disputes 
proving  considerably  detrimental  to  the  public  welfare  or  hopeless 
of  settlement  elsewhere. 

In  addition  to  its  mediation  work,  the  LMC  has  done  some  arbi- 
tration. As  of  April,  1947,  four  cases  had  been  handled.  This 
activity  is  in  distinct  opposition  to  the  policies  of  the  former  Toledo 
Peace  Board  and  to  those  principles  generally  accepted  by  authori- 
ties on  mediation.  To  cope  with  the  problem  of  arbitration,  it  was 
decided  in  February,  1947,  to  draw  up  a  list  of  arbitrators  for  those 
desiring  this  service.  In  addition  to  this,  having  found  that  the  full 
18-man  committee  could  not  effectively  handle  arbitration  cases,  the 
Committee   provided   that   arbitration   proceedings  be   handled   by 


MUNICIPAL    MEDIATION    PLANS  f 

panels  or  bv  single  arbitrators.  As  a  result,  either  the  piibhc  mem- 
bers of  the  LMC  serve  as  arbitrators  or  the  Committee  arranges  for 
other  competent  men  to  serve,  as  individuals  or  as  panels  of  three. 

First  Year  Record.  By  the  end  of  its  first  year  of  full  opera- 
tion, July  1,  1947.  the  Committee  had  handled  78  local  labor  dis- 
putes. Twenty-two  of  these  were  strikes,  of  which  the  Committee 
settled  14  and  gave  minor  assistance  in  eight.  The  Committee  helped 
avert  work  stoppages  in  39  other  disputes  which  had  reached  the 
strike  stage. 

In  the  first  half  of  1947,  man-days  lost  from  local  strikes  ap- 
proximated 13,500,  as  opposed  to  56,060  man-days  lost  in  the  first 
six  months  of  1946.  The  decline  was  approximately  the  same  as 
for  the  country  as  a  whole. 

During  the  period  from  October,  1946  to  March,  1947.  there 
were  no  strikes.  This  halcyon  period  was  brought  to  an  end  in  the 
latter  month  with  the  eruption  of  three  strikes,  only  one  of  which, 
as  a  local  dispute,  could  be  handled  by  the  LMC.  It  was  settled  in 
four  and  one-half  days. 

Boston's  Industrial  Relations  Council 

In  1941.  a  number  of  important  business  and  labor  leaders  set 
up  the  Industrial  Relations  Council  of  Metropolitan  Boston.*  Their 
purpose,  as  stated  in  a  pamphlet,  "The  Boston  Story,"  issued  by  the 
Council  on  October  1,  1946,  was  to  promote  "better  understanding 
and  the  solution  of  labor  problems  through  continuous  and  closer 
personal  contact  and  accjuaintance  among  the  representatives  of 
these  two  groups."  The  Council  is  basically  bi-partisan  in  character. 
Each  of  its  major  committees  —  Executive,  Conciliation,  and  Advis- 
ory—  includes  an  equal  number  of  union  and  company  representa- 
tives. The  Executive  Committee  includes,  in  addition,  one  public 
member. 

When  disputes  arise,  participants  may  apply  to  the  Council  for 
help  in  settlement.  Three  Chairmen  of  the  Conciliation  Committee 

*  Another  agency  was  created  on  March  5.  1947.  This  was  intended  to  handle 
the  grievances  of  employees  of  the  city  of  Boston.  This  committee  recently 
had  its  membership  increased  from  six  to  nine,  and  now  includes  three  officers 
from  Boston's  municipal  staff,  and  three  men  each  from  the  AFL  and  the  CIO. 
Grievances  are  handled  in  all  cases  by  the  three  city  officers  and  by  either  the 
AFL  or  the  CIO  group,  depending  upon  the  luiion  affiliation  of  the  aggrieved 
individual. 


O  I.    L.    I.    R.   BULLETIN 

(one  for  industry  and  two  for  lal)or,  from  tlie  AFL  and  the  CIO 
respectively )  select  a  panel  from  among  the  members  of  the  Execu- 
tive Board  or  affiliated  members  of  the  Council.  It  is  this  panel 
which  does  the  actual  mediation.  To  minimize  industrial  disputes, 
the  Council  has  now  incorporated  a  contract-reminder  service  simi- 
lar to  that  of  New  York  City.  Union  and  management  Council 
members  are  encouraged  to  notify  the  l^^xecutive  Director  of  their 
contract  expiration  dates. 

Other  Services.  In  addition  to  the  usual  mediation  facilities, 
the  l)Oston  Council  has  suggested  that  its  members  make  use  of 
several  other  services.  Where  the  mediator  supplied  by  the  Council 
has  little  success  in  settling  the  dispute,  the  Council  will  submit  a 
new  list  to  the  parties  so  that  they  may  choose  a  new  conciliator. 
Furthermore,  the  Council  is  willing  to  draw  up  a  list  from  which 
members  may  choose  a  General  Chairman  to  supervise  the  negotia- 
tion of  a  new  contract.  This  Chairman  acts  as  a  moderator,  merely 
drawing  up  the  basic  rules  of  procedure,  preparing  the  agenda,  and 
guiding  the  discussion  along  logical  channels.  If  negotiations  bog 
down  and  the  parties  wish  the  Chairman  to  act  as  conciliator,  he 
may  do  so.  If  the  dispute  is  not  settled  In-  conciliatory  methods, 
arbitration  is  suggested. 

"The  Boston  Story"  explains.  "The  conciliators  and  .  .  .  the 
arbitrators  supplied  by  the  Industrial  Relations  Council  are  business 
and  imion  ofificials  who.  individually,  possess  broad  executive  expe- 
rience and  who  are  prett}'  thoroughly  ac(|uainted  with  labor  prob- 
lems within  the  metropolitan  area;  men  who  jealouslx'  guard 
reputations  for  fairness." 

In  addition  to  the  settling  of  disputes,  the  Council  attempts  to 
create  and  develop  an  atmosphere  of  understanding  and  co-opera- 
tion between  management  and  labor  through  informal  meetings 
and  discussions. 

Boston-Toledo  Comparison.  The  Industrial  Relations  Coun- 
cil of  Boston  differs  from  Toledo's  LMC  in  two  major  respects. 
First,  it  is  in  no  way  connected  with  the  local  government  but  was 
originated  and  sponsored  by  independent  local  groups.  Second,  it  is 
primarily  bi-partite  in  contrast  with  the  tri-partite  set-up  of  the 
Toledo  Committee.  The  plans  are  alike  in  that  both  offer  arbitra- 
tion as  well  as  mediation  services. 


MUNICIPAL    MEDIATION     PLANS  V 

New  York  City  Plan 

The  plan  for  municipal  industrial  peace  found  in  Xew  ^'ork 
differs  quite  sharply  from  those  previously  described. 

On  October  1.  1946,  Mayor  William  O'Dwyer  of  Xew  \'ork 
established  the  City  Labor  Relations  Division,  consisting  of  a  di- 
rector, a  deputy-director,  and  a  counsel,  plus  a  mediator,  a  secre- 
tar}-  and  three  stenographers.  According  to  the  American  Municipal 
-Association  report,  previously-  mentioned: 

While  the  Toledo  and  Louisville  committees  have  indicated  willingness 
to  intervene  in  virtually  all  labor  disputes  that  are  strictl}-  local  in  charac- 
ter, the  Xew  York  plan  contemplates  such  intervention  only  in  disputes  that 
vitally  affect  the  public  health,  safety  and  welfare. 

The  Division,  from  a  list  of  contract  expiration  dates,  communi- 
cates with  management  and  labor  representatives  a  full  month 
before  contracts  are  to  expire  and  urges  that  the  parties  begin 
negotiations  immediately.  If  there  is  no  progress  within  two  weeks, 
the  Division  notifies  the  State  Mediation  Board  or  the  regional 
offices  of  the  U.  S.  Conciliation  Service. 

Point  of  Intervention.  The  Division  itself  does  not  intervene 
until  it  becomes  obvious  that  there  will  be  a  breakdown  of  negotia- 
tions and  possibly  or  probabl)'  a  strike.  \\  hen  it  does  finally  inter- 
vene, the  American  Municipal  Association  reports,  "...  a  highly 
elastic  approach  is  followed.  In  some  cases  one  of  the  three  leading 
members  of  the  Division  of  Labor  Relations,  co-operating  with  a 
state  mediator  or  a  federal  conciliator,  assists  in  bringing  about  a 
settlement.  In  other  disputes,  a  tri-partite  committee  of  outstanding 
citizens,  especially  fitted  to  handle  the  specific  case,  is  appointed  by 
the  Mayor,  with  each  such  committee  being  dissolved  after  a  settle- 
ment has  been  reached."  There  is  no  permanent  panel.  Mediators 
are  chosen  as  the  need  arises.  If  there  is  no  hope  of  reaching  agree- 
ment or  of  submitting  the  issues  to  arbitration,  the  Division  may 
then  ask  a  committee  to  make  a  report  to  the  Mayor,  who  may,  if 
he  deems  it  advisable,  make  it  public. 

Division's  Record.  From  the  time  of  the  l)i\ision's  incep- 
tion in  October,  1946,  to  June  30,  1947,  a  total  of  39  disputes  had 
been  handled.  Twenty-three  of  these  disputes  were  settled  without 
resort  to  strike  action  while  in  16  disputes,  strikes  were  already  in 
progress  at  the  time  the  Division  intervened. 


10  I.    L.   I.   R.   BULLETIN 

Because  many  of  the  disputes  handled  have  involved  municipal 
employees,  in  March,  1947,  the  Division  drew  up  a  comprehensive 
plan  of  procedures  for  the  settling  of  grievances  and  requests  for 
changes  in  wages,  hours  and  working  conditions  in  the  City 
departments. 

Experience  in  Other  Cities 

Plans  similar  to  those  in  operation  in  Toledo  and  Boston  have 
been  considered  or  adopted  elsewhere  in  the  United  States.  For 
example,  the  committee  in  Louisville,  Kentucky,  organized  in  July, 
1946,  is  modeled  almost  completely  after  the  Toledo  committee. 
However,  as  was  pointed  out  by  the  American  Municipal  Associa- 
tion report,  there  is  an  important  difference  with  respect  to  the 
arbitration  policies  followed  by  the  two  committees.  "The  Louis- 
ville Committee,  .  .  .  undertakes  to  arbitrate  only  in  the  case  of 
jurisdictional  disputes  and  those  involving  governmental  [munici- 
pal] agencies." 

Mediation  plans  have  been  proposed  but  not  adopted  in  Chicago 
and  in  St.  Louis.  More  recently,  Detroit  (May,  1947)  and  Seattle 
(June,  1947)  gave  the  Toledo  plan  extended  consideration.  Kansas 
City,  Missouri;  Los  Angeles,  California;  Milwaukee,  Wisconsin; 
New  Orleans,  Louisiana;  and  Rockford,  Illinois  are  also  consider- 
ing plans  based  on  that  of  Toledo. 

The  Labor  Relations  Board  in  Newark,  New  Jersey,  modeled 
after  the  original  Toledo  Peace  Board,  was  organized  in  April, 
1937,  but  was  disbanded  soon  after  the  establishment  of  the  New 
Jersey  State  Board  of  Mediation  on  April  23,  1941.  In  addition, 
mediation  facilities  have  existed  at  various  times  in  Centralia, 
Washington;  Sheboygan,  Wisconsin,  and  Adrian,  Michigan. 

Problems  of  Organization  and  Operation 

Despite  the  differences  in  organization  patterns,  most  of  these 
agencies  face  essentially  the  same  problems. 

With  regard  to  form,  it  is  not  necessary  that  the  agency  follow 
any  one  plan.  Assuming  that  an  agency  similar  to  that  in  Toledo  or 
Boston  is  under  consideration,  some  thought  must  be  given  to  the 
desirability  of  a  tri-partite  as  opposed  to  a  bi-partite  agency. 


MUNICIPAL    MEDIATION    PLANS  11 

Personnel  of  Board.  The  inclusion  of  public  members  may 
serve  to  give  greater  prestige  to  the  board  and  may  serve  to  bring 
greater  weight  to  bear  upon  the  other  two  parties  to  reach  amicable 
agreement.  Further,  it  may  be  felt  that  management  and  labor  alone 
on  any  panel  will  do  little  more  than  argue  the  merits  of  a  case  in  a 
partisan  manner,  so  that  the  public  members  will  help  to  provide 
the  needed  measure  of  impartiality.  In  opposition  it  may  be  argued 
that  sound  labor-management  relations  can  best  be  developed  where 
public  members  are  not  involved  in  the  mediation  proceedings.  The 
decision  must  rest  upon  the  particular  needs  of  the  community. 

Another  major  problem  in  the  realm  of  personnel  is  that  involv- 
ing the  caliber  of  the  men  chosen  to  sit  on  the  panel.  It  is  essential 
that  these  men  be  leaders  in  the  community  and  in  their  respective 
fields  if  the  agency  is  to  command  respect.  Yet  these  men  have  many 
other  responsibilities  which  keep  them  from  devoting  the  necessary 
amount  of  time  to  this  kind  of  work.  The  effect  of  this  lack  of  time 
becomes  increasingly  apparent  as  the  case  load  of  the  agency 
mounts.  The  result  may  well  be  that  other  groups  of  men,  not  as 
influential  or  well  known,  are  needed  to  cope  with  the  amount  of 
work  before  the  agency.  The  fact  that  the  community  leaders  are 
less  active  in  the  committee  may  decrease  the  effectiveness  of  the 
agency. 

Arbitration  Policy.  Confronting  even  the  best-intentioned 
and  the  most  intelligent  members  is  the  question :  Shall  the  agency 
combine  mediation  with  arbitration?  The  position  taken  by  most 
students  of  labor  relations  may  best  be  summarized  by  the  follow- 
ing quotation  from  Kaltenborn's  book,  GoTcrnnicnt  Adjitstuicnt  of 
Labor  Disputes: 

Mediators  should  not  serve  either  as  arbitrators  or  as  members  of  an 
'emergency  board.'  This  is  of  paramount  importance.  A  mediator  must  not 
be  forced  to  take  a  positive  stand  on  the  basic  issues  of  industrial  disputes 
and  thereby  run  the  risk  of  injuring  his  effectiveness  as  a  mediator  by 
alienating  one  of  the  parties.  Where  mediation  and  arbitration  are  com- 
bined within  the  same  agency,  the  functions  should  be  performed  by  differ- 
ent personnel.  Even  more  desirable  is  an  arrangement  similar  to  that  exist- 
ing in  New  York  [state]  where  arbitration  cases  are  not  handled  by  the 
mediation  board  or  its  staff  but  the  parties  are  encouraged  to  select  arbi- 
trators from  a  large  list  of  possible  arbitrators  chosen  by  the  board. 

The  New  York  State  Board  of  Mediation,  at  one  time  combined 
mediation  with  arbitration  facilities.  However,  it  soon  found  that 


^j;  OF  lu:  tiK 


12  I.    L.    I.    R.   BULLETIN 

its  effectiveness  as  a  mediation  agency  was  being  hampered  by  its 
activities  in  the  sphere  of  arbitration.  Consequently  it  changed  its 
polic\"  to  the  one  mentioned  above.  An  awareness  of  the  difficulties 
arising  from  this  ccjmbination  has  been  evidenced  by  the  Toledo 
Committee  in  its  recently  changed  attitude  toward  arbitration.  The 
policy  suggested  by  Mr.  McCirady  for  the  original  Toledo  Board 
seems  to  insure  the  most  effective  operation  of  such  a  board. 

Geographical  Considerations.  Even  where  all  the  problems 
arising  from  organization  and  functioning  are  successfully  settled, 
the  effectiveness  of  any  mimicipal  mediation  plan  is  severely  limited 
by  geographical  considerations.  At  best  such  an  agency  can  deal 
only  with  those  disputes  which  are  local  in  origin  and  in  extent.  Just 
as  state  mediation  agencies  must  limit  themselves  to  disputes  origi- 
nating within  the  state,  so  mimicipal  agencies  are  similarly  limited. 
This  was  demonstrated  in  March,  1947.  when  the  Toledo  Commit- 
tee could  intervene  in  only  one  of  three  current  strikes.  This  is  not 
to  argue  against  municipal  plans  but  rather  to  point  up  their 
limited  scope. 

Other  problems  arising  to  distress  any  such  committee  are  not 
inherent  in  mediation  plans  as  such.  The  agency,  for  example,  ma}" 
use  its  prestige  to  push  extraneous  plans  calculated  to  benefit  indi- 
viduals or  the  public.  Differences  of  opinion  on  these  outside  mat- 
ters mav  be  so  severe  as  to  hamper  seriously  the  real  work  of  the 
agencv.  Individuals  may  be  tempted  to  use  membership  on  the  com- 
mittee as  a  stepping  stone  to  other  positions.  These  problems  are 
the  sort  that  are  faced  by  any  agency  in  the  pul)lic  eye  and  can  be 
dealt  with  onlv  bv  the  determined  and  sincere  efforts  of  the  com- 
mittee members  to  realize  the  aims  of  the  agency  in  the  manner 
stipulated  by  its  charter. 

Problems  of  Jurisdiction 

llie  idea  of  the  "Toledo  Plan"  seems  to  have  a  great  popular 
appeal  for  other  cities.  Articles  have  appeared  in  leading  magazines 
and  newspapers  urging  the  wholesale  adoption  of  this  plan  on  a 
nation-wide  scale.  It  may  be  well  to  examine  the  validity  of  urging 
such  wholesale  adoption. 


MUNICIPAL    MEDIATION    PLANS  13 

Kaltenborn  states  that  the  desirabiUty  of  municipal  adjustment 
agencies  "appears  to  depend  upon  (1)  fre(|uency  of  labor  disi)iUes 
(2)  whether  there  is  an  effective  state  adjustment  agency." 

The  first  point  is  self-explanatory.  Where  there  is  little  or  no 
industrial  conflict,  there  is  obviously  no  need  for  such  an  agency. 
The  second  point  may  re(|uire  a  little  elaboration.  The  key  word 
here  is  "effective."  Alan}-  states  have  made  some  i)rovision  for  the 
conciliation  of  labor  disptites,  but  where  this  provision  is  not 
acti\ated  by  agencies  of  the  state  there  may  be  a  real  need  for 
municii)al  activity.  Toledo  is  in  a  state  having  no  such  agency. 

State-Municipal.  Cienerally.  where  there  is  an  efficient  state 
mediation  board,  a  municipal  agency  runs  the  risk  of  decreasing 
over-all  efficiency  by  duplication  and  overlapping.  When  disputing 
parties  realize  that  they  have  at  their  disposal  two  organizations 
whose  jurisdictions  and  functions  overlap,  the)'  are  tempted  to  take 
neither  seriously  and  to  delay  until  they  see  where  the  best  bargain 
can  be  obtained.  In  the  attempt  to  avoid  this  situation,  both  the 
Newark.  New  jersey,  board  and  a  previous  New  York  City 
board  were  disbanded  when  effective  state  mediation  boards  were 
instituted. 

Nevertheless,  in  some  instances  it  may  be  found  necessary  and 
desirable  to  have  both  state  and  municipal  agencies.  For  this  reason, 
in  sittiations  where  state  labor  disputes  machinery  is  established,  it 
woidd  appear  desirable  to  permit  enough  flexibility  so  that  state  and 
local  agencies  may  operate  side  by  side.  In  New  York  City  the  late 
Mayor  LaGuardia  and  the  present  Mayor  O'Dw^yer  fotnid  a  need 
for  both  state  and  municipal  agencies.  The  same  is  true  of  Boston. 
No  hard  and  fast  rule  can  be  laid  down,  but  the  largest,  most  highly 
industrialized  cities,  would  probably  do  well  to  examine  the  i)ossi- 
bilities  of  establishing  mediation  facilities  in  addition  to  those 
provided  by  the  state. 

Where  two  agencies  operate  within  the  same  territor\-,  they 
must  agree  upon  some  mutually  desirable  jurisdictional  and  finic- 
tional  limitations.  According  to  a  report  issued  by  Wayne  Univer- 
sity's Institute  of  Industrial  Relations,  a  serious  jtirisdictional 
problem  may  develop  between  the  state  and  mtmicipalities  in 
Michigan.  Here  legislation  (Michigan  State  Act  No.  157  of  1*^)47) 


14  I.   L.   I.   R.   BULLETIN 

has  recently  been  passed  which  is  designed  to  channel  the  settlement 
of  disputes  through  the  state  Mediation  Board.  Unless  this  legisla- 
tion can  be  adapted  to  permit  greater  scope  to  local  agencies,  this 
report  indicates  that  these  agencies  may  find  their  effectiveness 
considerably  limited. 

Federal-Municipal.  In  peace  time,  jurisdictional  conflict  be- 
tween municipal  agencies  and  agencies  of  the  federal  government 
has  been  rare.  The  former  Conciliation  Service  did  not  intervene  in 
disputes  which  could  be  settled  at  a  local  level.  The  provisions  con- 
cerning mediation  in  the  Labor  Management  Relations  Act,  1947, 
are  sufficiently  flexible  so  that  the  relationship  between  local  and 
federal  agencies  will  probably  not  change  much.  In  fact,  the  new 
federal  agency  is  specifically  directed  to  avoid  attempting  to  medi- 
ate disputes  which  are  not  interstate  by  nature.  (See  Title  II; 
Sections  201-205) 

Factors  in  Toledo  Success 

If  a  municipal  agency  of  some  sort  is  desired,  the  next  question 
may  well  relate  to  the  kind  of  agency.  Shall  it  imitate  one  of  the 
agencies  already  established?  No  generalization  is  possible.  Condi- 
tions in  a  particular  locality  must  be  carefully  studied  and  a  decision 
arrived  at  which  will  take  into  account  the  peculiarities  of  local 
customs  and  conditions.  The  decision  to  adopt  any  of  the  plans  dis- 
cussed earlier  or  any  part  of  them,  must  give  consideration  to 
factors  that  made  for  success  in  other  cities  and  the  similarity  or 
dissimilarity  of  conditions  in  the  locality  where  such  a  plan  is 
contemplated. 

As  indicated,  the  Toledo  committee  has  frequently  been  cited 
as  an  example  of  a  successful  municipal  mediation  agency.  What 
are  some  of  the  factors  which  have  contributed  to  its  apparent 
success  ? 

Need.  One  significant  factor  was  the  need  for  the  plan.  This 
need  arose  from  a  history  of  long  and  bitter  industrial  warfare. 
Prior  to  the  original  Board,  Toledo  had  acquired  an  industrial 
"black  eye"  which  kept  new  industries  from  entering  the  area  and 
interfered  with  the  operation  of  those  already  there.  Thus,  the  first 


MUNICIPAL    MEDIATION    PLANS  15 

Board  was  based  upon  necessity  and  the  second,  the  Labor-Man- 
agenient-Citizens  Committee,  upon  the  fear  of  a  repetition  of  earHer 
conditions. 

Charter  Agreement.  Secondly,  labor,  management,  and  pub- 
lic members  were  able  to  agree  upon  a  basic  charter  which  enumer- 
ated the  principles  upon  which  Committee  action  would  be  based. 
These  earlier  meetings  were  of  the  utmost  importance  in  laying 
the  ground-work  for  future  activity. 

Public  Education.  The  public  was  subjected  to  an  intensive 
"educational"  campaign.  From  the  beginning,  Toledo's  newspapers 
backed  the  project  editorially.  The  second  time  such  a  plan  was  con- 
templated, the  city  had  as  a  firm  jumping-off  place  the  successful 
operation  of  the  original  Board.  Toledo  management  and  labor  w^ere 
more  easily  able  to  work  together  and  Toledo  citizenry  could  view 
with  favor  where  it  might  once  have  viewed  with  skepticism. 

Leadership.  Another  factor  important  to  the  success  of  the 
plan  was  the  willingness  of  the  leaders  in  the  community  to  partici- 
pate actively.  Both  the  first  and  second  Toledo  plans  were  able  to 
obtain  the  services  of  the  top-ranking  men  in  management,  labor 
and  community  life. 

If  a  plan  following  the  organizational  set-up  of  the  Toledo  plan 
is  desired,  it  is  probable  that  similar  conditions  are  essential  to  its 
success.  But  it  certainly  cannot  be  argued  that  to  insure  industrial 
peace  an  agency  must  model  itself  after  the  "Toledo  Plan."  New 
York  and  Boston  bear  witness.  Where  these  agencies  have  suc- 
ceeded, others,  differing  from  that  of  Toledo,  may  likewise  succeed. 

Summary 

In  summary,  there  seems  to  be  no  single  formula  for  settling 
industrial  conflict  through  a  municipal  mediation  agency.  The  most 
that  can  be  said  is  that  for  any  one  city  a  number  of  solutions  might 
prove  to  be  adequate.  The  success  of  any  plan  w'ill  depend  upon  the 
amount  of  intelligent  study  given  to  the  difficulties  involved  and  to 
the  demands  of  the  particular  situation.  It  will  depend  too  upon  the 
honesty,  the  sincerity,  and  the  effort  put  into  it  by  its  originators, 
its  administrators,  and  its  participants. 


16  I.    L.    I.    R.   BULLETIN 

SELECTED   REFERENCES 

The  Boston  Story  of  Labor  Mamigeniciit  Coopcratio)i ;  Industrial  Relations 
Council  of  Metropolitan  Boston;  Boston;  October  1,  1946. 

City  Plans  for  Promotiny  Industrial  Peace;  Roy  H.  Owsley;  American  Munici- 
pal Association  ;  Chicago  ;  May,  1947. 

Government  Adjustment  of  Labor  Disputes ;  Howard  S.  Kaltenborn  ;  Founda- 
tion Press  Inc.;  Chicago;   1943;  pp.  202-213. 

Implications  of  Recent  Labor  Legislation  for  the  Functioning  of  the  Detroit 
L.M.C.  Committee  and  Other  Local  Mediation  Agencies;  Institute  of  Indus- 
trial Relations;  Wayne  University;  Detroit;  July,  1947. 

The  Toledo  Plan;  Part  I,  A  Digest;  and  Part  II,  An  Analysis;  Institute  of  In- 
dustrial Relations ;  Wayne  University ;  Detroit ;  March,  1947. 

"Toledo  Industrial  Peace  Board,"  Toledo  City  Journal:  January  22,  1938;  p.  42.