The declines were particularly large at the beginning of the month under review, but they were reported in greater or lesser degree each week in December. The Canadian Pacific Railway released approximately 4,500 persons from employment; the Canadian National Railways employed 3,000 fewer workers while the Grand Trunk Railway let out 250 men. Quebec and Ontario suffered especially heavy losses, but practically all districts shared in the decline.

Employment as indicated by the value of the building permits issued in 56 cities showed an increase during November as compared with October, the value having risen from $9,248,469 in the latter month to $10,958,066 in November, an expansion of over 18 per cent. The most decided gains occurred in Quebec Province. Contractors in every section of the country, with very few exceptions, employed considerably smaller staffs. In Nova Scotia decreases in the number of persons engaged on construction work were reported at Halifax and other centres. In New Brunswick there was also less activity particularly in St. John. In the province of Quebec, Montreal and Sherbrooke firms as well as those in other cities also reduced their staffs. In Ontario slightly increased activity occurred at Windsor, but all other centres, notably Toronto, Hamilton, London and Kingston, afforded less employment in building. Public highway construction in Ontario also released a large number of men. The downward tendency evidenced by employment in construction in the eastern centres was noted also at western points.

Transportation

The gross earnings of the Canadian National Railways during December were $8,475,328 as compared with $10,742,852 in November. Information respecting the month of November, which was not available for insertion in the December issue of the LABOUR GAZETTE, shows that the earnings of the Canadian Pacific Railway during November were $18,

787,679 as compared with $22,089,624 in the preceding month and with $23,799,146 in November, 1920. During December the number of persons employed by the Canadian Pacific, Grand Trunk and Canadian National railways in operation, including general offices, trainmen, engine crews, station employees, sleeping, parlour and dining car employees reported a net decline of approximately 2,700 workers. The Canadian National Railways released practically 1,600 of these persons, the Canadian Pacific Railway let out over 850 workers, while the Grand Trunk Railway employed over 200 less persons than in November. All provinces except the Maritimes shared in these losses, those in the Prairie provinces and Ontario, however, being especially pronounced. Electric railways also were less busy than in the preceding month, notably in Montreal and Toronto, though there was also a decline in employment on a smaller scale in Ottawa, Winnipeg, Calgary and Edmonton. At Vancouver and Victoria, however, slightly more activity was indicated. Longshore and stevedoring work at Quebec and Ontario ports showed a considerable falling off, but the opening of the winter ports in the Maritime provinces caused employment in that section of the country to be greatly improved.

Trade

The usual Christmas expansion was evidenced in retail trade during December, although some establishments did not increase their working forces as largely as usual and towards the end of the month there was a considerable falling off in activity. Enlarged working forces were reported in stores in Montreal, Toronto, Ottawa, Vancouver and Winnipeg. Other centres in many instances indicated gains on a smaller scale. Wholesale trade continued to afford slightly less employment, particularly in Montreal.

Department received reports from three Boards established to deal with disputes between (1) the Algoma Steel Corporation, Sault Ste. Marie, Ont., and certain of its employees, being engineers, firemen, conductors and brakemen; (2) the British Columbia Electric Railway Company, Limited, and certain of its employees, being motormen, conductors, shopmen, etc., members of Local Divisions Nos. 101, 109 and 134, Amalgamated Association of Street and Electric Railway Employees of America, and (3) the International Transit Company, Sault Ste. Marie, and certain of its employees, being motormen, conductors, barn employees and interlocker signalmen, members of Local Division No. 850, Amalgamated Association of Street and Electric Railway Employees of America.

One application was received for the establishment of a Board and further appointments were made in connection with an application which was received during November.

Application Received

During the month of December an application was received for the establishment of a Board of Conciliation and Investigation from the employees of the Dominion Coal Company, Nova Scotia Steel and Coal Company and the Acadia Coal Company, the leading coal mining

bers of District No. 26, United Mine Workers of America. A Board was established composed as follows: Mr. U. E. Gillen, Toronto; Colonel W. E. Thompson, Halifax; and Mr. James Ling, New Waterford, N.S. The employing companies are members of the British Empire Steel Corporation, and, having failed to name a person for appointment to the Board, Colonel Thompson was, on December 27, appointed by the then Minister of Labour, Honourable G. D. Robertson. Messrs. Thompson and Ling, being unable to agree on a chairman, Mr. Gillen was appointed on January 6, by the Honourable James Murdock, who had a few days previously assumed the portfolio of the Department of Labour in succession to the Honourable Mr. Robertson.

Other Proceedings under the Act

During the month of December, Mr. W. F. O'Connor, K.C., Ottawa, was appointed chairman of the Board established to deal with the dispute between the Hull Electric Company and certain of its employees, being members of Division No. 591, Amalgamated Association of Street and Electric Railway Employees of America. The appointment was made by the Minister in the absence of a joint recommendation from the other two Board members, Messrs. Kelley and Bancroft.

A

REPORT was received from the Board established to deal with the dispute between the Algoma Steel Corporation and certain of its employees, being engineers, firemen, conductors and brakemen. The Board was composed as follows: Mr. W.

E. Segsworth, chairman, and Messrs. J. E. Irving and U. E. McFadden, nominees of the company and employees respectively. Mr. James Murdock, who was first nominated by the employees as their representative on the Board found it necessary to resign and Mr. McFadden was appointed in his stead. The report was signed by the chairman and Mr. McFadden, and contained certain recommendations as to settlement of the dispute. It also expressed favour of the company's decision to reduce the wages of their employees in view of the reduction which had been reported in the cost of living. Mr. McFadden, while signing the report, added a note dissenting on the latter point. Mr. Irving, although concurring substantially with these findings, presented a minority report.

Report of Board

Sault Ste. Marie, Ontario,
December 19th, 1921.

Honourable G. D. Robertson,
Minister of Labour,
Ottawa.

Sir:

The Board of Conciliation and Investigation appointed by you in the matter of a dispute between the Algoma Steel Corporation, Limited, and certain of its employees, being engineers, firemen, conductors and brakemen (hereinafter called the transport workers), was convened at Sault Ste. Marie, Ontario, on the afternoon of December 15th, 1921.

There appeared before the Board, George K. Wark, representing the men, and J. D. Jones, representing the Company. A. R. Kerr, E. DeCourcy and M. S. Lowry also gave evidence for the

men.

Two public and several private meetings of the Board were held on December 15th, 16th and 17th.

Both parties appearing before the Board were in agreement regarding the facts and showed every disposition to give the Board all the information in their possession bearing on the case. They also discussed the various phases of the dispute in frankness and good temper, but no agreement could be arrived at.

The facts appear to be as follows: On November 1st, 1920, the following agreement was entered into between the parties to this dispute:

Algoma Steel Corporation Limited, November 1st, 1920. MEMORANDUM REGARDING RATES OF PAY FOR ENGINEERS, FIREMEN, CONDUCTORS AND BRAKEMEN EMPLOYED IN THE TRANSPORTATION DEPARTMENT.

The wage rates of Engineers, Firemen, Conductors and Brakemen in the Transportation Department will remain the same as those paid to similar classes employed in the Algoma Central Railway Yard at Sault Ste. Marie.

The rates of the above classes of employees in the Transportation Department will be changed as the rates of similar men in the Algoma Central Yard at Sault Ste. Marie are changed, any such changes becoming effective on the first day of any month in which these Railway or the Canadian Railway Wage Board. changes may be decided by the Algoma Central

Straight time will be paid for all time worked in excess of the usual working hours up to 12 hours, and time and a half will be paid for time worked in excess of 12 hours, although if at any time during the period of this agreement any general change in the system of pay for overtime should be made as affecting a majority of the men employed in other departments

of the Plant, any such general change will apply also to Engineers, Firemen, Conductors and Brakemen in the Transportation Department.

The usual hours of work will be as may be mutually arranged from time to time, it being the intention that the present 8 hour basis be continued.

This agreement is to remain in effect for a period of one year from November 1st, 1920, that is, to November 1st, 1921.

ALGOMA CENTRAL CORPORATION, LIMITED.

(Sgd.) C. E. DUNCAN,

General Superintendent.

(Sgd.) JNo. J. BURKE, Sup't. Transportation.

For the Trainmen:

M. S. LOWRY

A. R. KERR

H. HUGHES

J. MCMILLAN E. DECOURCY T. SMITH

Early in January, 1921, the plant being closed down for lack of orders, the officials of the company had a general meeting with the men and explained that in order to get business they would have to lower the price of their product, and if they were to operate without loss they would have to make an all round. cut in wages of 17.6 per cent. Failing this the plant would have to remain shut down. The majority of the men with whom there was no agreement agreed to the cut. Some of the transport workers were at the meeting but took no part in it.

Early in January, 1921, however, and before the 22nd, the transport workers held several meetings with Mr. Duncan and Mr. Burke. At these meetings the men protested against the cut, but were told that if they did not accept, the plant would remain closed. They finally

went to work but delivered to Mr. Duncan and Mr. Jones in person a protest in writing of which the following is a copy:

Sault Ste. Marie, Ontario,
January 22nd, 1921.

We, the undersigned trainmen and engineers, who signed Memorandum regarding rates of pay for engineers, firemen, conductors and brakemen, employed in the Transportation De

partment of the Algoma Steel Corporation, Limited, on the 1st of November, 1920, hereby submit the following offer:

In order to permit the continuance of the Corporation's operations we agree to accept temporarily the proposed reduced rate of wages for the Transportation employees, viz., 17.6 per cent without prejudice to our rights under said Memorandum bearing date the 1st November, 1920, and signed by C. E. Duncan, General Superintendent, and John J. Burke, Superintendent Transportation.

FOR THE TRAINMEN:

M. S. LOWRY
A. R. KERR

H. HUGHES

J. MCMILLAN
E. DECOURCY
T. SMITH

The result of these meetings with the men was that on January the 22nd there was a general cut in wages of 17.6 per cent which included the transport workers.

About the middle of March the plant shut down owing to lack of orders. In April the Company was negotiating for a definite order and called a general meeting of the men and informed them that if the Company were to take the order offered they would have to make another general cut of 10 per cent, and left it with the men as to whether the Company should accept the order at the reduced price and start the plant or remain shut down. The transport workers were at the general meeting. The men agreed to accept the cut, the transport workers protesting but not in writing.

The plant started May 1st, 1921, under the 10 per cent cut, the transport men going to work with the others.

On the first day of September another cut of 10 per cent was made. There was no general meeting with the men previous to this cut, but the men were consulted in groups through their foremen and the officials of the Company. The transport workers again protested in writing, but kept on working at the reduced wage.

The rates of pay and the working conditions were not altered during the period November 1st, 1920, to October 31st, 1921, on the Algoma Central Railway.

During the month of September the transport workers applied to the Minister for a Board of Conciliation and Investigation. So much for the facts.

The Company justifies its actions on the grounds:

(1) That the actions of the men in going to work and the terms of the letter of protest constituted a consent on their part to a cancellation of the contract.

(2) That if the plant were to run without loss the general cuts made were necessary and that the best interests of the men and the community at large would be served by making the cut, notwithstanding the agreement with the transport workers.

(3) That it was unjust to reduce the pay of the majority of the men who had no agreement without reducing the pay of the transport workers who had an agreement.

The transport workers maintain:

(1) That the agreement was broken without their consent.

(2) That "consideration should be given to the matter of whether or not a reduction in wages is justifiable at this time and under existing circumstances.

As to the first contention of each of the parties it is not the function of this Board to construe the exact legal rights of the parties, but it seems clear from the evidence that the men believe the agreement was in force up to October 31st, 1921.

As to the second contention of each of the parties, evidence produced before the Board justifies the opinion that the Company could not operate without a loss unless the reductions were made. Consideration has been given as to whether a reduction was justified at this time and under the existing circumstances, and the Board is of the opinion that, in view of the decrease in the cost of living as shown by figures recently published by the Ontario Government and the Department of Labour at Ottawa, and in view of the falling prices of the product of the steel plant, the reductions

would be justified as apart from agreement.

The third contention of the Company appears to be unsound as the existence of the agreement differentiated between the majority of the men and the transport workers.

The transport workers ask for back pay under the agreement, being the difference between the wages actually received by them respectively during the period between the 22nd day of January, 1921, and October 31st, 1921, and what their wages would have been for the time during which they worked, under the rates provided for in the agree

ment.

Every effort was made to bring the parties to an agreement and suggestions made to both parties, but without any result. After the last sitting of the Board the representative of the men offered to accept in settlement an amount less than their full claim under the agreement, but without prejudice to their full rights under the agreement if their offer was not accepted. The Company maintained that they did not owe the transport workers any part of their claim.

In considering what settlement the Board could recommend, the Board observes that the agreement terminated on October 31st, 1921, and the men ask for their contractual rights under the agreement. In view of these facts the Board is of the opinion that this dispute is of such a nature that the parties should appeal to courts competent to settle their respective rights as a matter of law.

(Sgd.) W. E. SEGSWORTH, Chairman.

(Sgd.) URIAH MCFADDEN.

Uriah McFadden joins in this report with the exception that he is of the opinion that the decrease in the cost of living at Sault Ste. Marie particularly has not been such as to justify the reduction of wages made by the employ

ers.

(Sgd.) URIAH MCFADDEN.