For many years the boot and shoe industry has been covered by a series of Local Conciliation Boards existing in all the centres of the industry—questions affecting the industry as a whole being dealt with at National Joint Conferences presided over by an independent Chairman appointed by the Ministry of Labour. Each Local Board appoints a Committee of Inquiry consisting of two manufacturers and two workmen; in case of disagreement, each side of the Board elects an Arbitrator to whom is remitted for arbitration any dispute referred to the Board and which the Board is unable to settle. Should the two Arbitrators not agree the questions are referred to an Umpire appointed by themselves or by the Ministry of Labour. The rules of the Local Conciliation Boards provide that the procedure to be followed in cases of dispute between an employer and his workmen shall be as follows: (_a_) the workmen shall first bring the matter before the employer or foreman; (_b_) should they not be able to agree the representatives of the Employers’ Association and the representatives of the Workmen’s Union shall endeavour to settle the matter in dispute; (_c_) if these representatives are unable to arrange terms the Secretary of the Board shall forthwith advise the Committee of Inquiry of the dispute; (_d_) in the event of the Committee of Inquiry being unable to settle the dispute it shall be referred to the Board, and, failing a decision, then to the Umpire or Arbitrators, who shall be asked to give their decision within seven days from the date of hearing. This conciliation scheme is the most important of the few to adopt the system of financial penalties.