The Rudolf Steiner Archive

Works Council Meeting to Form the Preparatory Württemberg Works Council Association

Introductory Remarks by Rudolf Steiner

[ 1 ] Ladies and gentlemen! Especially today, as we consider the agenda just mentioned, it is of some importance that we once again gain a complete understanding of what is actually meant by “works councils” in the context of the threefold social order.

[ 2 ] First of all, let us keep in mind that, as we now set out to establish the works council system, our primary goal is to use this system to initiate the actual beginning of genuine socialization. When one hears people speak of socialization today, one always gets the feeling that they don’t really know what they want to achieve with socialization. Most people understand socialization to mean nothing more than the nationalization of existing enterprises, existing branches of production, and so on. You know, of course, that the threefold social order is about clearly separating the three spheres of human social life from one another, so that in the future the entire administration of spiritual life—primarily the system of education and instruction—will be one member of the threefold social order. Administration will be carried out solely by those bodies that are part of this spiritual life—that is, by spiritual life itself. Thus, the bodies responsible for administering spiritual life will be organized by the individuals who are involved in that spiritual life. Secondly, there will be the state proper—the political body—which is to be built on a fully democratic foundation, so that everything that is to be regulated democratically belongs, to the fullest extent, within the sphere of this second member of the social organism. The third member would be economic life. In this economic life, the sole purpose is to conduct economic affairs. That is why I have often had to explain that actual legal issues are not to be decided within this economic administration at all. These actual legal issues are to be decided within democratic state life. For example, within democratic state life, decisions are to be made first and foremost regarding labor law; decisions are to be made regarding the length of the workday and regarding other rights that one working person has vis-à-vis another working person. Everything pertaining to such rights should be regulated on a democratic basis in a kind of parliament—or whatever one wishes to call it—that emerges from universal suffrage.

[ 3 ] Separate from this is economic life, which is to be governed entirely by its own internal dynamics—that is, where the sole focus is on economic activity. And it is on the foundation of this economic life that we stand as we now attempt—I would say, as a sort of transitional phenomenon—to establish the works council system.

[ 4 ] How do we go about this? We’ve already started, and some members of the works councils are here today. So here’s how we’ll do it: First, a certain number of works council members will be elected from each individual company. Who is eligible for election to the works council? Any manual worker, any white-collar worker, and—since we are currently in a transitional period—the former owner or the business owners of a company may also be elected, provided they join the ranks. It should be noted here, however, that no one has any special privilege; in other words, even an entrepreneur who is elected to the works council joins the ranks of the other works council members. This body of works councils is thus an organization in which everyone has absolutely equal rights and is to be valued according to their understanding of economic life in their respective fields. These works councils therefore emerge from the individual branches of production. But we will only have something fruitful for the reorganization of economic life once we have far more works councils than we have now. Today, we have only a small number of works councils, and hopefully, following today’s meeting, they will work in such a way that a network of works councils truly comes into being step by step. So, as I said: for now, we have only a small number of works councils. These works councils have emerged from individual enterprises. What we really need is for works councils to be formed from all the companies within a self-contained economic region—that is, initially a provisionally defined economic region, such as Württemberg. For the kind of works council system we must envision, we need works councils from all companies and all industries. These works councils would then together form the works council system across a self-contained economic region. And this is how we should begin the process of socialization: by establishing, across a self-contained economic region, a body whose mission is to put itself on a firm footing in the spirit of rebuilding economic life—that is to say, this body would have to see itself as the leading economic body of the region in question. It must therefore see itself as the source of the actual management of all types of enterprises operating within this economic region. This body of works councils must thus regard as its ideal a future in which individual entrepreneurs are no longer responsible for individual economic enterprises, but rather in which everything done within the enterprises takes place, so to speak, on behalf of this body—this original assembly of the body of works councils. Let us firmly note that this marks the first time that what the demands of the social parties have always, more or less consciously, been tending toward has been created. The parties’ demands are, after all, usually formulated in negative terms—for example, when they speak of the abolition of capital and so on. Yes, but abolition accomplishes very little. All it does is gradually dismantle our economic life! But the way the threefold social organism is supposed to function is precisely the opposite: it is meant to build up. And to build up, one needs a constructive body.

[ 5 ] Well, whether works councils are elected or appointed in one way or another in the future is, in turn, a question that must be decided within the works council movement itself. Today, our immediate task is to establish the works council movement in the only way currently possible, namely through elections in the individual companies. The point is that one step must be taken before any further steps can be taken. Once the works councils have been elected—smaller companies can, of course, join together for the purpose of the election—their first task will be to create what one might call a complete overview of the entire economy within the self-contained economic region in question. — This means, then, that the first tasks for the works councils will arise from this. These works councils—perhaps five in one company, three in another, and so on—constitute, so to speak, the building blocks of the works council system. This system must already be prepared through the first task. Let us assume, then, that Company A has elected its five works council members. These five works council members would now first have the task of compiling a sort of inventory of the entire economic operation for their company. This inventory would then be presented at the inaugural assembly of the works council movement. One would therefore need to know how much capital is invested in the respective company, how it has operated to date, and so on. They would also need to know what business connections exist with regard to the marketing of products, the procurement of raw materials, and external relations in general. At the same time, they would have to ensure that the best possible cooperation develops within the individual companies. Gradually, it would also become clear which business owners support the cause and which do not; for in those enterprises where the business owner refuses to cooperate, the works councils would be prevented from obtaining information about the enterprise—or, rather, these works councils could only attend the founding assembly with as much information as is possible to obtain. Based on what the individual works councils from the respective companies can present, an overview of the economic life of the relevant economic region would thus first need to be compiled at the general assembly. This is, after all, the first step. Only then can one tackle the actual tasks.

[ 6 ] Here one must first take into account that the structure of the threefold social organism differs significantly from everything that is conceived, for example, within political parties regarding the continuation of economic, political, and spiritual life. The task at hand must therefore be regarded as an economic one in the most eminent sense; that is to say, on the basis of what has been obtained as provisional material, we must first determine what will lead to a genuine establishment of standard prices for the various goods produced. This is the first task in the course of future socialization: to determine, in accordance with the economic situation, how much, for example, a pair of boots, a skirt, and so on may cost. After all, I have already mentioned the basis for price regulation quite often in my lectures. Accordingly, the goal in the future is for everyone to receive enough for what they produce themselves to satisfy their needs until the point at which they have once again produced an equivalent amount of output. To put it another way: Someone produces a pair of boots—and the following also applies to services that cannot be clearly defined—and these boots must have a value comparable to that of other goods, so that what I receive for the boots can serve to satisfy my needs until a new pair of boots is completed. This is what determines the individual price levels. Of course, everything that must be provided for the education of children, for the disabled, widows, and those unable to work must also be taken into account. The correct price results from all of this. Setting this price is the first step. But this is a very large undertaking. The work of the works councils—if they do not wish to squabble over empty phrases—will have to begin with this determination of price ranges for what is produced; otherwise, true socialization will never be achieved. It is self-deception to believe that true socialization can be achieved by setting wages based on other criteria. That is simply nonsense, because you can raise wages as much as you like according to the principles by which they have been paid up to now. You can even double the wage increase you receive, and this will then be offset by housing and food becoming more expensive again, unless you have a natural standard for price formation that arises from the economy itself.

[ 7 ] Once this standard for price-setting has been established—which will take the works council several weeks—we will then have to move on to determining fair prices. This will lay the foundation for what is to develop in the future, and we will know what to expect. Then, the previous so-called employment contract can be replaced by a distribution agreement between intellectual and manual workers. Of course, once they join the ranks, the former entrepreneurs—with their experience—will also be able to be counted among the intellectual workers. Essentially, the contract will be concluded in such a way that it is based on the joint work of manual and intellectual workers; nothing else will be considered. They work together on a particular product, and this product has a certain price. Taking into account the respective circumstances and possibilities, this price must now be distributed contractually between intellectual leaders and workers. Thus, labor will no longer be paid in any general sense; rather, when one produces goods or manages the production of goods, one receives the corresponding share in accordance with the distribution contract. This can only be implemented once all aspects of labor law have been firmly established.

[ 8 ] Of course, through the works council system, one can create nothing other than economic institutions in the sense of the threefold social order. In the future, however, alongside the economic organization—which is primarily concerned with the just determination of prices—there will be the Legal Parliament, in which every person will have the opportunity to define their relationship to other people. Naturally, therefore, what takes place in the Legal Parliament is not without effect on economic life. Those who are now responsible for managing a business in economic life will have to manage it in such a way that they observe what is determined in the Legal Parliament—based on democratic principles—regarding the value of labor and working hours.

[ 9 ] You can read about what intellectual labor is—that is, how the administration of the means of production will essentially be assigned to the intellectual segment of the social organism in the future—in my book The Key Points of the Social Question. However, it is still evident today that those who have hitherto held the intellectual share of the work have fallen behind—that is, they are unwilling to engage with these matters; therefore, we cannot yet achieve anything in this field. But we must establish what the works council system is to do, on the premise that in the future there will be not only a legislative parliament but also a free administration of intellectual life. From this spiritual life will also emerge the spiritual leaders of the enterprises, who will also have a say in the appointment of the works council members, so that the judgment of the spiritual leaders is also taken into account in the works council system. This is not yet a consideration today, but we need only bear in mind that it will be a consideration later on.

[ 10 ] The point, then, is that this second task must also be resolved—that is, that a resolution regarding price relations be reached at a general assembly in which all works councils come together. The works councils must, of course, resolve the first task within their respective companies, which means gathering information and conducting a sort of inventory of company operations. Many other issues will then arise that will need to be addressed, such as legal matters, questions of operational planning, and the like. And it will become clear very soon that the works councils and the emerging body of works council representatives will constitute the social force from which socialization will emerge. But the works councils alone will not be able to carry out comprehensive socialization. Above all, there will also need to be transportation councils and economic councils, which will likewise be assigned their tasks. It will become clear as early as the constituent assembly of the federation of works councils what steps must be taken to organize proper administration, the proper circulation of goods, the procurement of raw materials, and so on.

[ 11 ] Various types of councils will therefore have to be formed, but above all the three councils mentioned. The assembly of works council members can then decide on the details. Now, once the works council body has fulfilled its initial tasks, it can begin to draft something that the state—which has evolved from the old state and is today called the “socialist republic”—currently seeks to draft, albeit unjustifiably: the Works Council Act. Such a Works Council Act, as currently proposed by the state, is something the threefold social organism would not want at all, because economic institutions have nothing to do with legal institutions. Legal institutions belong to the continuation of the former state. Economic life must stand on its own. Today’s Abendblatt illustrates how the current—let’s call it—“socialist republic” appears to be moving in the opposite direction. It is suggested there that the goal is an ever-deeper mutual interpenetration of state and economic life. This is the opposite of what the threefold social organism aims to achieve. This mutual interpenetration of state and economic life is precisely what is to be eliminated! Economic life on its own and state life on its own—each is to govern itself; that is the goal. And in state life, only that which can be administered on a democratic basis—that over which every responsible individual can decide—should be administered. However, not every responsible individual can simply decide what is the best way to transport this or that product from one place to another; this requires technical expertise. And only the people from the respective economic sectors themselves possess this technical expertise. Therefore, the entire economic life must be based on technical expertise and, at the same time, exhibit a certain federal structure.

[ 12 ] Professor Heck, who has said many foolish things, is primarily afraid that if this kind of administration were to come into being, in the Economic Parliament—though there will be no such thing; there will only be a Central Economic Council—the small craftsman would not understand the big industrialist, nor the farmworker the natural scientist. Yes, but such a situation will not arise in the first place, because the associations that form in economic life will link together in a chain, and matters will be properly negotiated from association to association. It is precisely such an objection that demonstrates that economic life cannot be administered democratically, but only federatively, through associations. Nothing can come about except through proper negotiations.

[ 13 ] So, let’s say there are representatives from the shoe industry, the metal industry, or the textile industry sitting there, and they all have specialized knowledge of their respective fields. And the purpose of the assembly is for everyone to offer their expert opinion on establishing fair price ratios. It is quite a different matter to listen to the various opinions and have everyone assert their demands than it is to simply vote in a democratic manner. This would achieve nothing other than certain economic sectors joining forces and outvoting the others. Then the minority would never be able to have its say. In a constitution that arises from the practical context of economic life itself, such outvoting is ruled out. Thus, what is now unjustifiably intended to be brought about by the Works Council Act proposed by the state would instead come about only through negotiations among the works councils. I ask that you note this as the most important point: that the threefold social organism rejects any state law in this context.

[ 14 ] See, how this threefold social organism comes about in detail—that is not so essential right now. In this area, we must make a clear distinction between sophistry or empty rhetoric and reality. Isn’t it true that if one says, as I have always said, that the former state should not continue, but only its middle member should continue—so that the government taking over the existing state is constituted as a liquidation government and is responsible only for public safety, public health, the legal system, and the like—then economic life and spiritual life remain separate? But if it turns out that the existing state has already interfered so much in the economy that its current representatives cannot conceive of relinquishing control over economic life, things may unfold differently—namely, the existing state might say: “Very well, I will continue to manage my affairs as an economic administration, but I will leave out everything that is democratic; the legal and spiritual state shall be established alongside me. - Then, of course, it would be necessary for all semblance of democracy to be expelled from this economic administration; this would also mean, for example, that in Germany the National Assembly could no longer function as it has until now, because democracy has nothing to do with economic life. So, things can be done one way or the other. In any case, the three components must coexist side by side in the future.

[ 15 ] In turn, the constituent assembly of the Württemberg Works Council Association must establish all the regulations necessary regarding the duties and functions of the works councils. The works council members then carry the resolutions adopted at this inaugural assembly back to their respective workplaces. These individuals, now returning to their workplaces, act within their workplaces on behalf of the entire body of works councils. They do not act on behalf of any individual employer, but rather see themselves as representatives of the entire body of works councils within a self-contained economic region. They manage the workplace in accordance with these principles.

[ 16 ] Well, it may turn out during the transition period that it is best for a great many companies if the old management—now serving as members of the works council—remains in place for the time being, specifically to prevent sabotage or the repetition of the mistakes made in Russia. If the current management is not willing to acknowledge in any way that the works council is the actual leader of the enterprise, then, of course, the management in question—that is, the current management—would have to step down. In that case, the works council would have to take over the entire management of the enterprise. In reality, it is already taking over, but it will face great difficulties [without the involvement of the former management], since it must act appropriately very quickly.

[ 17 ] It could also happen, however—and this would be a further step toward socialization—that individual enterprises would no longer have their own management, but that management would operate on behalf of the economic body representing the entire economic region. But above all, care must be taken here—and this should already be taken into account when drafting the constitution—to ensure that initiative is not undermined in any way. The works council system, however, should not be structured as is still envisioned today, for if some of the proposals were implemented, the result would be something truly monstrous. Just consider that there are even proposals such as: In the future, every business must have technical oversight, economic oversight, and political oversight. — In fact, a total of five or six such controls are apparently planned. The assumption here seems to be that everyone is essentially a dishonest, bad person and must therefore be monitored. If this system of five- or six-fold control is implemented, you will produce absolutely nothing in the future, because this control system is built on mistrust in the truest sense of the word. But if you want to rely on that in future economic life, you won’t make any progress. You’ll only make progress if you rely on trust, and you’ll be able to rely on that when the individual’s self-interest aligns with rational management—that is, when everyone in the future knows that their work benefits them most when the best leader is in charge. And through this system, the best leader will be able to be appointed.

[ 18 ] Ordinary voting will gradually evolve into a form of delegation. People will have an interest in ensuring that the person with the greatest expertise also holds the leadership position. This system will naturally reveal who the best leader is, and even those who cannot lead themselves will recognize this. This system opens up possibilities beyond mere democratic voting or a council system, as people imagine them today. For both would only lead to snitching and careerism, and under either system, workers would be no better off than they are today.

[ 19 ] What is at stake here is organizing economic life on a sound basis, not on the basis of the existing state structure. When the works councils return to their workplaces with their mandates and the corresponding tasks, then work can begin in the individual factories to operate on a social basis. That, then, would be the first practical step we intend to take. The following must be carried out in practice: the election of works councils across individual industries. Then, providing information on the economic status of all industries. Following that, the works councils from across the entire economic sector would have to be convened. Furthermore, drafting a constitution based on the objective realities. This constitution of the works council system would be the beginning of true socialization. Until this happens, there is no socialization, for the state cannot socialize through laws. Socialization can only arise from economic life itself. Today, people think they can socialize this or that sector of the economy—for example, the pharmacy sector. That is, of course, sheer nonsense; it is nothing other than state capitalization. A rather interesting incident once occurred. A very intelligent gentleman gave a lecture in Berlin on socialization shortly after the founding of the socialist republic. He began by pointing out how impossible it would be to achieve socialization—that is, socialization as envisioned as the ideal of the socialist party—based on the immediate circumstances at hand. Therefore, he said, we cannot achieve true socialism today, nor tomorrow, nor the day after tomorrow; rather, we must create a transitional phase. And he characterized the transition he wished to create as follows: We must, he said, establish a form of social capitalism between our current capitalist economic order and the future economic order. — Well, that is nothing more than proof that one does not know how to begin the process of socialization. But one cannot begin until one has first created a certain social structure, a social partnership. How do you intend to socialize if such a social partnership, a social society, does not already exist? The inauguration of such a social society is precisely where the process should begin, by uniting the works councils into such a society. You cannot socialize individual factories or branches of industry, but only the whole. So you must base the whole on what can be drawn from society in terms of people, and it is with these people that you must then carry out socialization.

[ 20 ] So those who are elected as works council members will be able to tell themselves that they have a great and significant task, and it is they who must lay the groundwork for what future socialization will be. And I believe that you have already reached the point where you will understand that, in the manner described here, a proper foundation for socialization is provided; it cannot be created in any other way. It is true that people have the most diverse—and at the same time the most peculiar—views on socialization. When I read a certain view on socialism to someone yesterday, a particular thought occurred to that person. It was an article by Dr. Georg Wilhelm Schiele, which was titled with the following words: “On True, Purified”—followed by an additional word, which I do not wish to read now—“Socialism.” The article then stated:

“What is social? The state is social: it is the social itself. What is communism? The community is communism! And even more so, the family. It is the kind of communism that human society always needs. Anything beyond that is evil. We had a state that embodied a great deal of genuine socialism—the Prussian state—and the other German states and the Empire were also modeled after it. This state was the most social entity that has existed in a long time and one that will not exist again anytime soon.

What, then, was “social” about this state? Look closely. The most Prussian aspect of it was also the most “social”—namely, the military system, universal conscription.»

[ 21 ] Now just imagine what this Dr. G.W. Schiele's ideal is!

“Many a father, watching his son grow up, is already asking himself with concern: How can I give my son—in body and spirit—when he comes of age, that final education in manhood, that discipline of manhood, which turned every weakling into a young lance of steel and a fine young man? Where is the true art of commanding and obeying taught today—the art that instilled in every young German the spirit of integration and subordination to a greater whole, while at the same time training him to be both a leader and a superior, a follower and a commander, depending on the task? How do we replace this national education, which protected the German people from becoming dull-witted and simplistic?”

[ 22 ] Then the Lord goes on to say:

“For the time being, there is no longer any state with honest taxpayers and honest civil servants. We will soon see that there is neither a state nor taxes. But if there is no longer a state, then there is no longer socialism either.”

[ 23 ] The conversation continues in this vein. Then he says:

“The time will come when we will all sigh, weep, and cry out for the social state we once had, for the Prussian state, and then we will try to build a new community based on the model our forefathers gave us.”

[ 24 ] When I read this aloud to our friend Mr. Molt yesterday, he said it sounded like I was reading from a satirical magazine. But it is not a satirical magazine. It is the latest issue of Eiserne Blätter, published by the Eiserne Blätter publishing house in Berlin. It is something entirely serious; the entire issue is edited by D. Traub.

[ 25 ] This is the state of affairs regarding views on socialization among a large number of people. But once what is not merely a theory comes into being—something that, as a workers’ council system, extends across a large, self-contained economic region such as Württemberg—and once, let’s say, there are 800 people involved, not just a few as there are today, and once they unite, this will be a manifestation of the entire working class of Württemberg and thus of a large part of the population. That will no longer be a theory; it will be a force. But what matters is that this force is actually created first, and that is why the “Federation for the Threefold Social Order” would so much like to see progress made in the election of works councils, now that a small foundation for the future works council system is already in place. If this small foundation were to make it its mission to ensure that works councils are elected everywhere, so that we—and this is so incredibly important—do not let the matter fall by the wayside, then we will make progress.

[ 26 ] You see, it really does matter that such a matter be handled with the necessary speed today; otherwise, it will go sour. Public life is just like certain foods that go sour if they aren’t enjoyed at the right time. Likewise, public affairs should not be left at the mercy of indifference or a lack of interest. They simply must be carried out with a certain degree of speed. Moreover, the Americans and the British are by no means waiting for our slow pace. If, by a certain point in time—which cannot be far off—we do not come to say of this economic, intellectual, and political life: ‘This is how we want to organize things, and we will appoint those active in economic life to manage the enterprises’—then the Anglo-Americans will pour money into the enterprises and join forces with the remaining capitalists, and they will then manage the enterprises of Central Europe according to the principles of Anglo-American capitalism. Then you will be left behind for a long time. Then you can toil for a new capitalism that will be far more terrible than the one we’ve known so far. Then you will no longer be able to socialize anything; then you’ll have to wait until you’re strong enough that, through something as bloody as the last five to six years, you gain the opportunity to even think about such things. The over-capitalization from the West is already well on its way. In Berlin, people have issued the slogan: “Socialization is on the march!”—It is not on the march. It will only be on the march once the works council system has been established. But thorough capitalization is certainly on the march—that is, the takeover of all enterprises in Central Europe by American and British capital. That is why what we can risk today cannot tolerate prolonged indifference; rather, it is crucial that we act swiftly. And if we do succeed in keeping alive the interest that has already arisen here regarding the threefold social order—and which has been thwarted—and if we manage to ensure that such a system of works councils can emerge throughout Württemberg as the foundation for socialization, then we will have set an example for our colleagues in the rest of Germany. What the works councils are doing here will set an example, and when others see it, they will follow suit.

[ 27 ] Make sure you get the works councils up and running within fourteen days; then organize a founding assembly that will draft a constitution within a few weeks—one that must be completed before the law is passed—and then it won’t be long before the others follow suit. But it would truly be a great achievement for us here if we were to move forward using this as a model. That is what I wanted to remind you of once again today.

The establishment of the preparatory Württemberg Works Council was unanimously approved. Mr. Huth was elected first chair of the Action Committee, Mr. Roser second chair, and Mr. Dorfner secretary. The entire Working Committee of the “Federation for the Threefold Social Order” is part of the Action Committee. The office is that of the “Federation for the Threefold Social Order,” Stuttgart, Champignystraße 17; Managing Director: Mr. Kühn.