Volume 8, numéro 4, septembre 1953

FR :

Alors que les travailleurs sont groupés dans quelques centrales syndicales organisées rationnellement tant sur le plan professionnel que sur le plan géographique, les employeurs sont obligés d'appartenir à une multitude d'associations les plus disparates et n'ayant aucune coordination entre elles. L'auteur, dans cet article, tente de présenter une analyse et une classification des groupements patronaux.

EN :

Whereas the workers are grouped together in only a few Central bodies, rationally organized, professionally and geographically, the employers are obliged to belong to a multitude of very scattered associations which have no link together.

This absence of systematization, if it does not prevent an effective defense of the employers' interests as a whole, nor the promotion of the industry, trade and services, does tend to create confusion among the employers, dissipates their efforts and finally does not contribute to the establishment of a balanced social order in the near future.

This study does not intend to judge the merits of this or that group nor the effectiveness of their actions.

WHY SO MANY EMPLOYERS' ASSOCIATIONS?

We mean by employers' associations any permanent unions of persons or corporations interested by their positions in the production of goods or services or seeking employers' interests in opposition to what might be called "the workers' interests".

Why are there so many employers' associations? This is due to two reasons: a) the complexity of the employers' needs; b) the empiricism which presided at the birth and development of these groups.

a) The complexity of employers needs

Workers' needs in their professional life are concentrated on a few clean-cut and closely-connected points: the payment for their work and the conditions under which this work is performed. The labour union may easily look after all the professional interests or the workers, represent them before the employer and the governments.

This is not the case when we consider the objectives sought by the managers of enterprises. No doubt, they also must look for sufficient remuneration as well as a fair return on the invested capital, but precisely because they have the responsibility for production, they must also carry on activities which have economic, technical, administrative and human aspects.

b) Empiricism in the development of employers' associations

To these many-sided problems, there could have replied adequate associations able to cover all these needs. But for reasons of a doctrinal, historical or psychological nature, the employers' associations have developed without any preconceived plan, from immediate interests, from circumstances and even from personal whims.

It has been necessary every time for an outside force to provoke and even sometimes, impose common action. As these outside forces have not appeared at the same time and as they are dissimilar themselves, it is not surprising if they have given birth to incomplete and dissimilar groups.

It would be interesting to study in regard to this subject the influence of tariff, fiscal or so-called "labour measures" on the formation of employers' groups. To-day almost all sectors of employers have associations and even several according to the particular interests concerned.

AN ATTEMPT AT CLASSIFICATION

a) Improperly called employers' Associations

First of all, we have organizations which are not, properly-speaking, employers' associations although they seem to have that appearance, and group together especially management people or if they act in favour of employers. They have as members either individuals or Companies.

These are organizations which have as an objective the promotion of business in general or the spreading of certain information. The Chambers of Commerce belong to this first category. A Chamber of Commerce (Senior or Junior) is a group of people having as objective the promoting of the general interests of industry and commerce as well as influencing the State and the public to hold favourable attitudes to economic advancement in general.

But the Chambers of Commerce cannot be classified among the employers' associations. No more so than those which might be called information centers, as the Quebec Industrial Relations Institute, the credit associations which have corporate members; these organizations group enterprises having different activities and have as objective the sharing of information or the distribution of information among their members without fulfilling any representative function either for the State, labour unions or the public.

b) True employers' associations

It must be noted here, that with the exception of that which concerns stricdv the employer movement, these associations group enterprises and not physical persons. This is of capital importance, because the fact that this is forgotten, is a major reason for confusion.

ASSOCIATIONS FOR GENERAL PURPOSE

These employers' associations or rather these associations of enterprises are professional or interprofessional in so far as their members belong to the same ranch of activity or to different branches of activity in the same economic sector.

All these groups are organizations of study and representation: study of economic, social and fiscal problems which interest their members; representation towards others. But they are distinguishable by the function they carry on and the responsibility they take in respect to their members. Some groups never engage the responsibility of their members. These latter receive information, advice, even pressure, but any decision is left to the enterprises. These groups represent their members in dealing with the government and public opinion, but they will refuse to carry out collective action with labour unions.

Some of these associations have at their service an expert in labour relations that they put at the disposition of their members in order to help them solve their individual problems.

There still remains the fact that generally in this type of group no enterprise is obliged to follow the policy adopted and each one remains free in its attitudes.

PROFESSIONAL ASSOCIATIONS (EMPLOYERS' UNIONS)

These are groups of enterprises belonging to the same branch of activity; they have as objective the supplying to their members of economic, legal, fiscal and technical information as well as representing them in dealings with the government, the public and labour unions.

They act in labour relations and exercise a collective action. They are not satisfied to give advice but some decisions taken by the group engage the members.

The employers’ unions because of their function in the collective negotiations have more or less extensive membership but do not take in large enterprises as these, by themselves, already form distinct bargaining units. In many cases, the size of the employers' union and the limits of its organization depend on the labor union affiliation in the enterprises which it groups.

We have hinted a while ago that, among the true employers' groups, there was a type which had as members, not enterprises but physical persons. This is what is designated under the name of employer movement.

EMPLOYER MOVEMENT

This type of association exists in various countries for many years but in our country it is quite new. At the present time, it may be said that there are two of them and they claim inspiration from the Catholic Social Doctrine.

The employers' movement directly groups persons, and any person exercising management functions. They do not act there as representatives of their company, but as individuals interested in management functions.

The employers' movement, in order to reach more easily its objective, has technical and social education services as well as labour relations departments. These services placed at the disposition of the employer exercise only as a complementary function. They do not attempt to replace those which already exist and which are effective in other associations.

CONCLUSION

We believe that it would be opportune to introduce, as soon as possible, some systemization in order to avoid a dispersal of effort and resources as well as to put a little order into our society.

This is surely a long-term project which will not perhaps lead to completely satisfactory results. We hope, however, that this attempt at classification will contribute to throw a little more light on this and dissipate the confusion which only keeps up misunderstandings, causing prejudice to everyone.

FR :

Dans l'entreprise moderne s'établissent forcément certaines relations entre l'entreprise elle-même et ses membres d'une part et le public d'autre part. Elles sont communément appelées « Public Relations » et « Human Relations ». Dans cet article l'auteur explique les origines et le développement des unes et des autres. A cause des éléments psychologiques sur lesquels elles reposent, ces relations ont de nombreuses sphères d'interaction et sont appelées à se compléter. Le travailleur étant un être humain doué d'intelligence mérite à juste titre d'être commandé dans l'industrie non par crainte mais par persuasion. Cette persuasion est réalisable au moyen de l'information « descendante » et de l'information « ascendante ». Pour mettre en application ces méthodes renouvelées, il faut faire appel aux sciences sociales qui ont un rôle capital à jouer dans ce domaine.

EN :

In modem business, certain relations become necessarily established between the enterprise itself and all its members, on one hand, and the public, on the other hand. These are known as "Public Relations" and "Human Relations". Based on psychological factors, they have many spheres of interaction and are even called on to complete each other. It is interesting to study them successively, and to attempt to form a synthesis.

"Public Relations"

The beginning of "Public Relations" in the United States is due to the fact that the American enterprises were threatened in their very existence by what was essentially a crisis of progress. This threat consisted of a very severe antitrust legislation which originated and can be explained in the economic changes which took place in the United States right after the War of Secession. From these economic changes, there arose a powerful movement towards the forming of trusts, mergers and large enterprises which tended necessarily toward a scattering of personal resources and to certain abuses. An opposition movement arose, which led to an extension of Federal powers over commerce and industry. The Sherman Act, voted in 1890, forbids all forms of collusion between enterprises which might affect free trading or lessen competition. The application of the Act is carried out by a specialized agent, the Federal Trade Commission.

Faced with such a system, the large American enterprises were obliged to react, to find means of defence. As these anti-trust laws were based on public opinion, it was necessary to reach the public and give it complete and understandable information. Wherever, "Public Relations" programmes have been well carried out, the people's verdict has been favourable to the enterprises. This is easily explained, as by educating the public, they appealed to a very powerful sentiment in mankind: the pride that each individual feels when he has an intimate knowledge of someone or of an organization which has a certain authority. This is what "Public Relations" try to realize, to give each one the feeling that he is taking part in the life of the enterprise. In destroying the divisions which exist inside the enterprise by creating an exchange of ideas, the "Public Relations" increased production. By making the enterprise a name known and liked, they attracted the loyalty of buyers. By continually informing the shareholders they made of them a moral force which supported the enterprise's policy in a positive manner. Finally, by discussing openly all the problems of the enterprise, they reduced greatly the bitter character of certain social conflicts. With this conception, the American industrial leaders learned by the practice of "Public Relations" that virtue and interest go together, that moral values remain the basis of all the industrial activity.

The techniques used to influence those outside depend on the information1 methods available in each country. On the other hand, the techniques used to influence the personnel of the enterprise are fairly uniform and depend especially on the size of the enterprise. The large enterprise may find that the best ways of reaching the personnel are the Company newspaper, the booklet for new employees, information bulletins, films and conference cycles. Small enterprises have the advantage of being able to use the most efficient method: this is regular meetings where the workers and the management meet and talk over in a friendly way, as fellow-workers, everything concerning the life, the reverses and the success of the enterprise. The aim must always remain the same: fight anonymity which makes the enterprise remain a great unknown for its personnel; make the ties personal which bind the worker to the enterprise. In addition to appealing to the intelligence of the employees, we must also appeal to the workers feelings by means of "Human Relations".

"Human Relation"

The movement of human relations is at the same time, the result of the Scientific Organization of Labour movement and a reaction against it. The purely mechanical system perfected by F. W. Taylor, helps and at the same time, forces the worker to improve his efficiency. This too rational research' caused excesses and gave rise to two diseases up to this time unknown: industrial fatigue and monotony. Gradually a truth that had been long forgotten began to be noticed: that there is a close relationship between the benefits a man receives and his state of mind, between efficiency and psychology.

The founder of the movement of "Human Relations" within Industry or of sociology applied to the enterprise is Elton Mayo, professor of the Harvard Business School. The first outline of the sociology of an enterprise came from a scientific study which has remained unequalled: what is called in t h e United States, the Western Electric Company experiment. The Company wished to isolate and measure the influence of different physical factors on the efficiency of the industrial worker. Average workers were picked out and put to work by separate, groups under different experimental conditions. Curiously, the experimental' conditions could be changed as much as was wanted and yet efficiency continued to improve. The results of the research work were confusing because beforehand it seemed as though there existed a relationship between lighting conditions and the output of the workers. Elton Mayo found the crux or the problem or the factor of which nobody had thought. During the research work, the whole relationship between persons and between groups of workers involved in the experiments had been fundamentally changed: their relations with their superiors, their relations between themselves, their relations with the other workers of the factory. In other words, during the experiment, the researchers had brought a revolutionary change to the usual methods of management. This change was so important that besides this, all the other physical changes remained without consequence and Elton Mayo decided to extend his experiment which over a period of twelve years eventually covered over 20,000 workers representing many different nationalities and carrying out a very great variety of tasks.

From this research is brought out the fundamental conclusion that among the motives that guide the worker in his task, the material motive is not the most important one. The efficiency of the worker depends in the final analysis on the satisfaction he feels in his relations with other men. The needs that he tries to satisfy most stubbornly are above all moral and psychological needs. Numerous inquiries carried on in other enterprises only confirmed the value of these findings. The "Human Relations" movement tries first of all to determine what needs the workers are trying to satisfy in their work. There are first of all individual needs and then social needs. In fact, the workers of the enterprise form, whether we like it or not, a live group and the relations of each individual to the group as well as the morale of the groups form the atmosphere in which work is carried on. The studies of Elton Mayo and George Lombard show that absenteeism and labour turnover in the large aeroplane factories in the United States were affected by the existence of these "informal" groups formed by the workers themselves in the factories; inside these groups are developed practices, traditions, and unwritten social code, a hierarchy of persons and values. The problem of changes is then not studied only in technical terms but also in taking into account their effects on the constitution and routine of the groups. If circumstances oblige the management to allow the technical point of view to take precedence, they will, nevertheless, take care to explain it to the workers in plausible terms and attempt to secure their cooperation.

It is especially under the impetus of the last war, and the increase of unionism in the United States, that the movement of "Human Relations" was so widely extended. This movement of "Human Relations" re-appraises in psychological and sociological terms the entirety of working conditions. It tries to assure a better psychological formation of the framework of the enterprise. In each one of its stages, it is the result of a harmonious cooperation between industry and university and furnishes business men methods with which to carry out better their function of management. This is why the exercise of modern industrial management must be done at the same time by 'Public Relations" and "Human Relations". If we only use "Public Relations" we risk missing the crux of the problems which arise inside our enterprises and only look for superficial solutions. If we only use "Human Relations" we are hiding the light under the bushel and we fail in our greater duty to society. To "Public Relations", we must give emphasis, we must enrich them by the teachings of "Human Relations". Together, they have great value because they put the social problem in a framework in which it must be solved — inside the enterprise itself. We must substitute for management by tradition, management by persuasion.

The first indispensable condition in applying this new conception of the function of the manager consists in creating inside the enterprise a system of communication. Each worker must know clearly and continually what he is doing, what place he occupies in the working of the factory and what place the factory occupies in the life of the community. This point is extremely important. The communication of certain results is desirable but not sufficient in itself, it is necessary at the same time to furnish a basis which permits them to be appreciated. This basis is furnished by the method which consists of comparing present results with past results, the results of the enterprise to those of the industry as a whole. The workers must understand in a general way the policies followed by the enterprise. Finally, the workers must know their managers. This is "downward" information, but management by persuasion supposes also that a current of communication exists from the bottom to the top in such a way that management realizes what the employees think and feel.

"Public Relations" try hard to bring together management and workers in the enterprise by making the enterprise a being which the workers know intimately and in giving the simplest tasks a wider social sense. "Human Relations" try to bring management and workers together by making communications a bond running in both directions and bringing men together by their feelings as much as by their intelligence. It is clear that in this renewal of our methods of management the social sciences are called upon to play an important role. It is necessary for the social sciences to be brought out in the light of day and for this reason industry and the universities must cooperate.

EN :

After carrying during the previous half-century a nationalization legislation, Great Britain by the recent Royal assent given to the Transport Act and the Iron and Steel Act, has brought on denationalization of these industries concerned. The Author comments briefly on this important question considering the Transport denationalization as a more difficult and hazardous measure than the Iron and Steel denationalization. In concluding, the Author hopes that both Transport and Steel Acts will at least be successful in securing the removal of their subjects from the party arena.

FR :

La sanction royale vient d'être donnée à deux lois, la loi sur les transports (Transport Act) et la loi sur le fer et l'acier (Iron and Steel Act), qui comportent la dénationalisation d'industries précédemment nationalisées par les gouvernements travaillistes anglais de 1945 et 1950. Ceux-ci avaient fait adopter des lois permettant la reprise par l'État de sept industries et services: l'industrie houillère, la Banque d'Angleterre, les services de télé-communication de la Cable and Wireless, Ltd., les transports par chemin de fer et les transports routiers sur grandes distances, l'industrie du gaz et de l'électricité, celle du fer et de l'acier. Sauf dans le cas de la Banque d'Angleterre, les autres nationalisations cependant donnèrent lieu à la fusion des entreprises qui existaient et à la formation de conseils publics de gestion.

Cette législation était conforme à la doctrine socialiste élaborée au cours des cinquante dernières années. Cette politique n'a jamais envisagé que l'Etat fût propriétaire de toutes les industries, mais seulement des industries-clés et des monopoles: les premières, parce qu'il fallait en augmenter le rendement, et les autres, parce qu'elles pouvaient exploiter le public ou les ouvriers.

D'un autre côté, la politique du parti conservateur n'est pas absolument, et par principe, opposée à la nationalisation. Les expropriations en 1926 de l'électricité et des lignes de transport d'énergie sur grandes distances et en 1938 des gisements de charbon, sont l'oeuvre des conservateurs. Par la suite, opposés qu'ils étaient à l'adoption de toutes les mesures de nationalisation proposées de 1945 à 1951, ils n'ont maintenant l'intention d'en annuler que deux, dont l'une en partie seulement. Au sein du parti travailliste, il y avait également divergences d'opinions. En Angleterre, la nationalisation est une sorte de terrain neutre s’offrant à la controverse plutôt qu'un point d'idéologie.

La raison essentielle qui a poussé le gouvernement actuel à revenir sur la nationalisation des transports et de l'acier est qu'elle créait de nouveaux monopoles qui n'existaient pas auparavant. La nationalisation de l'industrie de l'acier n'a jamais été effectivement appliquée; la nouvelle loi est donc une affaire toute simple. Elle liquide la British Iron and Steel Corporation, qui possède le capital-action des sociétés, lui ordonne de revendre les actions au public, et constitue un nouveau Conseil du fer et de l'acier nanti de certains pouvoirs de réglementation en particulier à l'égard des prix. Ce Conseil remplace l'ancien aboli par le gouvernement travailliste lors de la nationalisation de l'industrie. Par sa composition même, le Conseil est puissant et le fait que trois dirigeants importants de syndicats ont accepté d'en faire partie lui donne clairement beaucoup plus d'autorité que si les organisations syndicales l'avaient boycotté ou lui avaient tourné le dos.

La dénationalisation des transports est une mesure plus difficile et phis hasardeuse. La loi ordonne à la Transport Commission de vendre les entreprises de transports routiers et les véhicules qu'elle avait obligatoirement acquis aux termes de loi de 1947, mais lui permet de conserver les chemins de fer. Elle supprime également la limite d'exploitation de 25 milles à laquelle les entreprises privées de transport de marchandises avaient été assujetties. Ainsi le commerce retrouve dans ce domaine la souplesse dont il bénéficiait autrefois.

Il est à espérer sincèrement que ces deux lois, sur les transports routiers et sur l'acier, réussiront au moins à sauver ces questions de la lutte entre partis. Il serait vraiment désastreux que ces deux sphères d'activité d'importance capitale, restent le jouet de la politique.

FR :

Un examen des différents plans d'assurance lancés ces dernières années par les institutions Canadiennes-françaises permet de constater qu'il existe pour répondre à un besoin une tendance à penser les problèmes d'assurance en fonction de la famille. Les besoins essentiels de la famille, en effet, sont la subsistance et la sécurité en cas de décès prématuré du père. Le plan d'assurance familiale de l'Assurance-Vie Desjardins a été proposé pour tenter de trouver une solution à cette situation et entre dans la voie d'évolution qui doit se poursuivre. Cet article a pour but d'exposer les principes, avantages et fonctionnement d'un tel plan récent d'assurance familiale.

EN :

Two new Insurance Plans are now offered by l'AssuranceVie Desjardins.

The "Plan d'Assurance Familiale" is a family insurance contract which constitutes a self-sufficient insurance plan in a single policy. The reason for such an initiative is that the average French Canadian worker who usually has a large family cannot be adequately insured for a premium he can afford if he insures all his children through individual contracts.

Here is the description of the plan.

On the life of the family father:

A) An amount of $1,500.00 up to age 65, reduced to $750.00 after 65.

B) A series of family income monthly benefits; the first such benefit being at start an immediate monthly income of $25.00 for 28 years, followed two years later by an additional income of $20.00 for 24 years, followed from 2 years to 2 years by additional incomes of $15.00, $10.00 and $5.00 for durations 20, 16 and 12 years.

C) All children, present or future, whatever their number, are insured for amounts increasing up to $500.00. This is a term to age 21 insurance.

D) The family mother is insured for $500.00. This insurance is permanent.

The premium of such a policy reaches 4% of the income of a $50.00 per week worker at age 34. Since the plan has been designed for newweds or young married couples, the premium will not exceed 3% in most cases. After 25 years, it is sharply reduced because benefits B and C are paidup. Benefits A and D are paidup at 65.

In case of death of the father, premiums on the insurance of the mother and children will be waived.

In case of total disability of the father before age 60, all premiums will be waived during the disability period.

A "Prévoyance Familiale" Plan is also offered. It is designed for the young bachelor. The basis is Part A of the Family Insurance Plan to which a special feature has been added: In case of marriage, a conversion credit is granted. Such credit is substantially higher than the corresponding cash surrender value, and is applied towards the payment of the premiums of the new family Insurance policy, at a time when the insured might be in dire need of funds.

TABLE 1: — Number ( in thousands ) of families with 1, 2, 3..., 10 or more children in Quebec and Ontario.

TABLE 2: — Number of family heads (in thousands) earning less than $2,000.00 per year, from $2,000.00 to $3,000.00, and from $3,000.00 to $6,000.00.

TABLE 3: — Curve of family responsibilities of a newly married man, together with the insurance coverage for the same period.

TABLE 4: — Monthly income payable if the family father deceases during the 28 first policy years.

TABLE 5: — Schedule of insurance for the children.

TABLE 6: — Cost during the 25 first policy years, and thereafter to age 65. The cost is expressed in absolute value and also as a percentage of a salary of $2,600.00 per year. Dividends are not taken into account in this table.