The second bill introduced by the Labor Party was the Trades Dispute Act. This was framed to annul the Taff Vale decision, making the unions immune from suits for tortious acts and providing an elaborate system of arbitrating labor disputes. The provisions of this act were tested by two railway crises. In 1907 the railway employees threatened to go out on strike. Lloyd George, then president of the Board of Trade, averted the strike by enlisting all the power of the government in persuading the companies and the men to agree to a scheme of arbitration. This was to last a stipulated term of years, but before the time had elapsed the men actually struck (1911), and for a week the country was in a panic. Lloyd George, then Chancellor of the Exchequer, again used all the power of the government to bring peace, and a commission was appointed to investigate the grievances of the men, who had agreed to abide by its decision. In this way the government has become the most active force in settling labor disputes--a subject that was formerly left to the two parties of the labor contract.
A Workman's Compensation Act and an Old-Age Pension Act soon followed. The latter provides a pension for all workmen who are 70 years old. Unlike the German act, the government provides all the funds. In 1909 the Labor Exchange Act empowered the Board of Trade to establish labor exchanges. These have been established in every city. At first there was some friction with the unions because "blacklegs" were assigned to places. But since union men have been invited to sit on the local governing committees, things are running smoother.
There are three laws which show the trend of the changing relation of the state to property.
The Development Act of 1909 provides for the appointment of five commissioners, upon whose recommendation the Treasury advances money to any governmental department or public authority or university or association of persons for the purpose of aiding agriculture and rural industries of all sorts; the reclamation of drainage lands and of forests; the general improvement of rural transportation, including the building of "light railways"; the construction and improvement of harbors; the improvement of inland navigation, including the building of canals; and the development and improvement of fisheries. This law endows the government with the necessary authority for the absorption of virtually all the internal means of communication except the trunk railways, and extends the paternal arm of the government over agriculture and the fisheries and subsidiary industries.[27] The first report of the commission, 1910-11, indicates that work under this law has begun in earnest. A comprehensive plan of regeneration, embracing the entire kingdom and based on adequate surveys, is outlined. One of the interesting features of the plan is the proposal to do as much of the work as possible by direct labor rather than by competitive bidding. The commission wants to make sure "that the funds shall not go into the pockets of private individuals."[28] Under an enthusiastic commission there will be practically no limit to the influence of this law.