This contention is supported by two different lines of reasoning. The
first is that, because of these differences, there will tend to be a
flow of labor away from the less favorable points of employment within
the area of standardization towards the more favorable. This flow, it is
said, will cause a reappearance of the differentials which existed
before standardization. The first comment to be made on this line of
reasoning is explanatory, rather than contradictory. It is true that
there may be some tendency for labor to flow from the less favorable
points to the more favorable. But it must be remembered that the
standard wage is intended only as a minimum. If differentials over the
standard wage did arise in enterprises where the conditions of labor
were worse than the average, or in regions where the cost of living was
higher than the average, such differentials would not be incompatible
with the ends sought, when standardization is enforced. Secondly, it may
be commented that the experience of the past does not, in general,
support the contention. In many industries the same standard wage scale
applies over an area in which there are real differences of the kind set
forth above, and no differentials as between the different points within
the area have arisen--as, for example, on the railroads. This is to be
accounted for, firstly, by the influence of the idea of standardization
over trade union activity and policy; secondly, by the fact that
relative money wages tend to govern, in a great measure, the
calculations and movements of the wage earners; thirdly, by the fact
that the application of the principle of standardization is in itself a
strong force toward bringing about a leveling in the conditions of
employment throughout an industry.
The second line of reasoning with which this contention is supported is
that the trade unions themselves will not long support any policy of
standardization which does not make explicit allowances for such
differences as are in question. It is said that the organization of the
workers at the points where the cost of living was relatively high would
insist upon a differential over other places for that reason.
Such, for example, was the argument of the employers' counsel before the
Court of Inquiry on the wages of transport workers (Great Britain), "...
He submitted that one of the foundations of his argument was that in
fixing wages they must have regard to the class of work. Having regard
to the very great diversity of conditions and of methods in the
different ports, and to the class of work done, he submitted that they
could not standardize. They must do in the case of the ports as they did
in the case of the coal mines."[100]
Public-domain text, read in full here on John Shaqi.
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