Evolution of Labor Relations: From Industrial Revolution to Welfare State
Labor Relations System
Since the Industrial Revolution, a new system of labor relations (RR.LL.) emerged, where labor was exchanged for wages. Before this, labor was not exchanged for property, as in the case of slavery. The Industrial Revolution introduced the concept of labor for wages, leading to increased wealth and rapid growth in some countries. However, this wealth was not evenly distributed, accumulating in the hands of a few capitalists. The prevailing liberal state created wealth but struggled with its distribution, leading to social conflict.
Key elements of this conflict:
- Workers: Those who worked in appalling conditions began to organize to change their situation. Early workers’ associations were often suppressed.
- Intellectuals: Some intellectuals, initially supporting the liberal state, began to criticize its unfairness. This criticism led to the creation of political parties.
- Religious elements: Concern for the faithful living in poor conditions led to anti-liberal philosophies.
This social conflict highlighted the difficulty of sharing wealth under the existing liberal rules.
Social Reform and Labor Law
In the late nineteenth century, the Commission for Social Reform was created to address social conflict. It proposed:
- Freedom of association to defend workers’ interests.
- Reforms to ensure fast and efficient justice procedures, including mixed juries.
- Freedom in health, education, and work.
- Regulation of women’s and children’s labor (though with a paternalistic view of women).
- Social action to support those unable to work.
Labor law emerged from civil law due to the latter’s inability to address social conflict. Civil law focused on personal exchanges, while labor law regulates minimum work conditions, maximum hours, formalized pay, and worker protections in case of accidents.
Impact of Different Systems
Some economically powerful countries have not followed this system, leading to higher levels of inequality. This suggests that the RR.LL. system contributes to better capital distribution. Conservative and progressive forces began to challenge existing dogmas.
The capitalist socio-economic order emphasized order and rigidity, ensuring property rights and some fundamental labor rights. This system was heavily reliant on banks. Any freedom granted to workers was seen as a threat, leading to repression of worker movements. Employers responded with law enforcement and consensus to eliminate worker groups.
Social Rights and the Welfare State
New constitutions guaranteed social rights of citizenship:
- Political participation: the right to form political parties and stand for election.
- Material equality, secured by the state.
These rights, along with a social security system, form the basis of the welfare state. The main challenge is the cost, which is typically covered by economic growth. If economic growth falters, the capitalist state faces challenges.
Ideologies and the RR.LL. System
The RR.LL. system faces two ideologies: individual logic (self-reliance) and the need for state intervention to ensure social equality. The state must guarantee equality before the law and compensate for social inequalities.