The Trade Board Act was passed in 1909. It introduced a legally enforceable minimum wage (described as a "living wage" in the House of Commons debate) in four 'sweated' industries - chainmaking, lace finishing, paper box making and ready-made and wholesale bespoke tailoring. Additional industries came under the regulation of trade boards in subsequent years.
Members of the trade boards were divided into three groups - representatives of the workers (often trade unionists), representatives of the employers, and "appointed members" - representatives appointed by the government (through the Board of Trade). Workers and employers would have the same number of representatives on the board, whilst the appointed members would be slightly fewer in number.
To set a minimum wage rate, the trade board would give notice of the proposed rate, receive and assess objections sent in by employers and employed, and then issue a notice of the fixed rate. The fixed rate should then be confirmed (within six months) by a Board of Trade order. If the government failed to confirm it, the rate would be suspended. The minimum rate of pay would be regularly revised (up or down) by the trade boards to reflect changes in the cost of living and the state of trade. Employers could legally pay less than the minimum rate if they could persuade the trade board that an employee was unable to do the work of an average worker - permits for a reduced wage were usually given for workers who were regarded as having physical or psychological disabilities.
Contemporary explanations of the work of trade boards are included in the following documents:
Board of Trade outline of the new legislation, issued in December 1909.
Article written c.1909 by J.J. Mallon, Secretary of the National Anti-Sweating League.
Article written by Constance Smith for the Journal of Political Economy, July 1914.
Memorandum issued in October 1918 by the Office of Trade Boards.
The 1922 report of the Cave Committee. It includes a historical overview of trade boards and recommendations for reform.
Trades Union Congress response to the report of the Cave Committee. It includes a brief historical note on trade boards.