“That in event of a dispute arising between members of the respective organizations, a reasonable effort shall be made by the parties directly at interest to effect a satisfactory adjustment of the difficulty; failing to do which, either party shall have the right to ask its reference to a Committee of Arbitration which shall consist of the President of the National Founders’ Association and the President of the Iron Molders’ Union or their representatives, and two other representatives from each organization appointed by the respective Presidents.

     “The finding of this Committee of Arbitration by majority vote
     shall be considered final in so far as the future action of the
     respective organizations is concerned.

“Pending settlement by the Committee, there shall be no cessation of work at the instance of either party to the dispute.  The Committee of Arbitration shall meet within two weeks after reference of dispute to them.”

The agreement was a triumph for the principle of pure conciliation as distinct from arbitration by a third party.  Both sides preferred to run the risk of a possible deadlock in the conciliation machinery to throwing decisions into the hands of an umpire, who would be an uncertain quantity both as regards special bias and understanding of the industry.

The initial meeting of the arbitration committee was held in Cleveland, in May 1899, to consider the demand by the unions at Worcester, Massachusetts, and Providence, Rhode Island, for a minimum wage which the employers had refused.  In each city one member of the National Founders’ Association was involved and the men in these firms went to work pending the arbitration decision, while the others stayed out on strike.

The meeting ended inauspiciously.  The founders and molders seemed not to be able to settle their difficulties.  Each side stood fast on its own principles and the arbitration committees regularly became deadlocked.  The question of a minimum wage was the most important issue.  From 1899 to 1902 several joint conventions were held to discuss the wage question.  In 1899 a settlement was made, which, however, proved of short duration.  In November 1902, the two organizations met, differed, and arranged for a sub-committee to meet in March 1903.  The sub-committee met but could reach no agreement.

The two organizations clashed also on the question of apprentices.  The founders contended that, because there were not enough molders to fill the present demand, the union restrictions as to the employment of apprentices should be removed.  The union argued that a removal of the restriction would cause unlimited competition among molders and eventually the founders could employ them at their own price.  They likewise failed to agree on the matter of classifying molders.

Owing to the stalling of the conciliation machinery many strikes occurred in violation at least of the spirit of the agreement.  July 1, 1901, the molders struck in Cleveland for an increase in wages; arbitration committees were appointed but failed to make a settlement.  In Chicago and San Francisco strikes occurred for the same reason.