The Evolution of the Welfare State and Its Impact on Labor
The Welfare State and Labor
2.1 Early Labor Regulations
The first public labor regulations focused on manufacturing, trade, and offices. These early laws distinguished between office and workshop culture, with office workers having higher education levels and fewer labor disputes. Key early regulations include:
- 1873: Protection for workers under 10 years old.
- 1878: Prohibition of hazardous work for those under 16.
- 1900: Minimum work conditions for women and children, and accident prevention measures.
Strikes, though not legalized until 1930, became prevalent. France led the way in Europe with regulations like the prohibition of work for children under 8 in 1841 and limits on working hours for minors in 1874 and 1875. The Welfare State has roots in Bismarck’s Germany and British state intervention following 19th-century studies. Between 1900 and 1930, social parties gained power, leading to democratic reforms and labor laws. Unions emerged, followed by political parties advocating for worker rights. The Treaty of Versailles in 1917 internationalized labor rights with the establishment of the ILO.
Key ideas driving social reform and labor laws:
- Rejection of the liberal idea of equality in labor contracts, recognizing power imbalances.
- Advocacy for state intervention to protect vulnerable workers.
- Acceptance of the collective dimension in labor relations.
2.2 The Great Social Development Pact
The 1930s crisis highlighted the insecurity of capitalist production. States intervened in the economy, creating mixed systems. The U.S. New Deal in 1932 marked a significant shift with unemployment benefits, pensions, and aid for the blind. Keynes provided the theoretical basis for state economic intervention in 1936. World War II further emphasized government intervention. Between 1945 and 1948, the British welfare system developed, offering integrated and universal social protection.
Economic Policy
The state became a dynamic economic force, using investment and tax credits to support businesses.
Social Policy and Welfare
Policies promoted full employment, boosted domestic consumption, and increased productivity.
Fiscal Policy
Focused on income and wealth distribution, enabled by intergenerational and intergroup solidarity.
The capitalist mode of production was reconciled with the democratic system, minimizing social conflict through welfare provisions. The effectiveness of the Welfare State depended on the ruling party’s ideology:
- Progressive: Developed the public sector and aimed to reduce income inequality.
- Conservative: Used state action to serve the private sector, focusing on deficit reduction, inflation control, and international competitiveness.
The Expansion of Rights
The Welfare State expanded rights beyond civil and political rights to include social rights, encompassing welfare and economic security. This marked a shift from the traditional state’s focus on war, order, and diplomacy.
Fordism and its Impact
Pre-Ford Era
Labor was relatively skilled and autonomous, using general machinery. Organizations were decentralized with low production volume and high costs.
The Ford Era
Fordism revolutionized automobile production with the Model T. Mass production, interchangeable parts, and simplified assembly lines led to increased volume, lower unit costs, and an extreme division of labor. This intensified work, eliminated downtime, and fixed production rates.
The Employee in Fordism
Workers experienced neutralized union action, disqualification, lack of responsibility, limited creativity, and minimal promotion opportunities.
Keynesian-Fordist Era (Post-WWII to 1970s)
Employers consolidated control over working conditions and production. Fordism combined with Keynesianism to create a development style regulated by standardized work processes, consumption patterns, and wage guarantees. Unionism shifted towards pactism. This era saw improved working conditions, higher living standards, and the rise of mass consumerism. The Cold War context played a significant role.
The Cultural Construction of Labor in the Welfare State
Fordism offered low-skilled, stable jobs with permanent contracts, enabling workers to participate in consumerism. Early youth emancipation became common. The Welfare State created a virtuous circle: full employment led to strong unions, wage hikes, increased consumption, business growth, and further investment. Consumerism became a dominant force. While employers’ freedom decreased and workers’ situations improved, the gap between profits and wages persisted.
The Welfare State in the Cold War Context
The Welfare State emerged as a response to the crises of the 1930s and World War II, contrasting with the rise of”real socialis” in the East. Its goals were to enhance capitalist productivity and harmony, ensure social stability and cohesion, and strengthen national solidarity. Social protection extended to employed individuals and their families. Social policies provided assistance and services to poorer sectors, including unemployment benefits. The concept of stable employment became the social norm, with jobs viewed as a means of subsistence rather than a lifelong profession.