Rediscovering the Human Factor

Abstract

The classical antithesis of capital and labor — the “worker problem” of the 19 th century, which was the starting point for a social policy of differentiating between the economy and the welfare state — no longer exists today in this form. On the one hand manufacturing capital has become “impersonalized” to a large extent. Large family owned companies have become rare, joint-stock companies with a widespread distribution of wealth are the rule from a certain size up. The rights of union representatives in having a say about things — in factory committees, on the board of supervisors and on the board of directors — extend not only to personnel and social matters but also include important business concerns. Social plans and regulations regarding protection against wrongful dismissal as well as the more or less generally binding nature of collective bargaining agreements rule out arbitrary acts on the part of companies — so much so, in fact, that the only legal “arbitrary act” open to a company owner, hiring employees, is only ventured upon after careful consideration.