The test to be applied in each instance should be the balance of
interest involved, including a strong public interest in standardization
as one of the elements in a policy of wage settlement. When weighing the
facts for or against the limitation or variation for the reason under
discussion, several distinctions should be made. Firstly, in regard to
the nature of the difference in advantage possessed by the various units
of the industry in question. Secondly, in regard to the way in which the
differences in advantage are distributed among the various units of the
industry.
The case for limitation or variation is apt to be stronger when the
difference in advantage is a natural difference than when it is an
acquired difference. In either case, the decision must rest upon the
balance of good and harm to be anticipated from a straightforward and
unmodified application of the principle. But when the difference in
advantage is a natural difference, such as exists between different
mining areas, there is greater reason for deliberate procedure than
otherwise. For the possibility that an abrupt suspension of certain
enterprises be caused without compensating extension of other
enterprises, is the more genuine. Such a situation was recognized, for
example, in the case of the living wage legislation for agriculture in
England; and thus instead of applying one standard wage throughout all
districts, standardization was carried out by districts.[87] Even in
this case, however, the various district advisory boards are under a
strong and constant pressure (under the terms of the act) to bring the
rates in the various districts to the same level. Such, also, to take
another example was the situation recognized in the course of the
attempt during the war to standardize the wages of the stevedores and
longshoremen employed in the South Atlantic ports. Here straightforward
and unmodified standardization would have caused, it was judged, the
diversion of certain freight carrying steamship lines from ports in
which they now operate.
If the differences in advantage are in the nature of acquired
differences, only convincing evidence of the permanent harm likely to
result from general standardization would justify limitation or
variation. For in this case, the necessity of paying standard wage rates
is itself a powerful force towards overcoming conditions that have been
declared a definite competitive disadvantage. Probably no extension of
wage standardization in industry has ever taken place without injuring
some individuals. It is the net balance of gain or loss that is
significant. In most past instances when standardization has been
enforced in an industry, marked by an unequal distribution of acquired
advantages, the consequences have not verified the predictions of those
who believed it would cause great disturbance and unemployment. On the
contrary, it has frequently resulted in the development of better
organization within the industry.
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