2 - The rise of welfare work capitalism and the Americanization of production processes in the United States, Western Europe, and the Soviet Union

Summary

Abstract

This chapter provides, as a necessary background of this study, a short overview of the history of welfare capitalism in the United States, Western Europe, and the Soviet Union, mainly until World War II. It pays attention to the content of corporate welfare work programmes as well as to the main motives of employers to introduce and implement welfare work programmes for workers in their enterprises. In the second part of this chapter further attention is paid to the Americanization of production processes by means of a combination of scientific management and Fordist work methods in the United States and its adapted forms abroad. A crucial aspect is the interrelationship between technological development and social engineering.

Keywords: history of corporate welfare work, Americanization of production, scientific management, Fordism, employment relations

Welfare work capitalism in historical perspective

Welfare work capitalism developed from the onset of the industrial revolution in 18th-century Britain. Textile factories created the first factory villages with workmen's dwellings. But also, other forms of welfare work were introduced, such as factory shops, provisions in case of sickness, libraries, sports facilities, and so on. In due time welfare work could encompass, not only in textiles but also in other sectors, a wide variety of provisions varying from housing, education, recreation, profit sharing, stock ownership, reading rooms, dance halls, medical care, sickness payments, pensions, social work, grievance procedures, and worker participation. Well-known examples of early British welfare work capitalism are the textile mills of New Lanark (on the Clyde in south-west Scotland) and Saltaire (in Bradford, West Yorkshire). Of course, there existed big differences in the supply of welfare work between factories and enterprises. The actual size and quality of these developments depended on various factors. An important one was the availability (or lack) of relevant local infrastructure, the availability of workmen on the local labour market, the speed at which factories grew and so on. The motives of employers for introducing welfare work also varied. These could be ideology- or religiondriven. For example, in the UK and the United States Quaker employers very often introduced sizeable packages of welfare work based on the idea that the owner was obliged to do good for his workers. Next to ethical motives, many employers had other reasons. For example, welfare work could contribute to economic growth of the firm, could improve competitiveness, could prevent social conflict, and so on.