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The United States and the Shaping of West Germany's Social Compact, 1945-1966
Author(s): Volker R. Berghahn
Source: International Labor and Working-Class History, No. 50, Labor under Communist
Regimes (Fall, 1996), pp. 125-132
Published by: Cambridge University Press on behalf of International Labor and WorkingClass, Inc.
Stable URL: http://www.jstor.org/stable/27672313
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Given the destructiveness of the Nazi regime, the major tasks of recon
struction that the Germans faced after the defeat of the Third Reich, and
the centrality of labor relations to the political economies of advanced
industrial societies such as Germany's, it is not surprising that the role of
the organized working class and of trade unions in particular should have
been hotly contested, first in the western zones of occupation and, after
1949, in the Federal Republic. What emerged over the years from this
contest is what some people have called the "German model" of industrial
relations, in which the peculiar system of codetermination (Mitbestim
mung) is usually highlighted and extolled as centerpiece.
Codetermination, to be sure, does give labor an important voice in the
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126
ment with capitalism was widespread. Here's how the system was per
ceived: It produced the Great Slump. It helped Nazism gain power. It
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The United States and The Shaping of West Germany's Social Compact 127
having strengthened the hand of those inside the unions who wanted a
reformation of capitalism, though not its transformation into socialism.
were influential voices within the employers' camp that saw the advantages
of tripartism and a reduction of class tensions.
The Great Slump put a stop to these developments. Thenceforth the
more radical elements on the Left perceived politics in terms of outright
class struggle against the employers and the Reich government, a position
that slowly widened into a rejection of capitalism and the parliamentary
Republic altogether. Only the "moderates" in the labor movement came to
the defense of the Weimar Constitution against its enemies on the Right
and Left; no less important, they began to develop practical alternatives to
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128
Germany.
In considering Tarnow's background?and also the psychological im
pact of the incipient Cold War, which destroyed all notions of a third
"German" way between communism and capitalism and moved most Ger
mans, including many trade unionists, toward the West?it is not surprising
that he began to lose interest in the DGB's discussions about fundamental
economic restructuring. He did not want to transform parliamentary de
radical Left or even the more moderate B?ckler had had in mind. But
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The United States and The Shaping of West Germany's Social Compact 129
a result of the "liberal-corporatist compromise," it is clear that the end
product was more than a conservative restoration.
At the same time, it would obviously be wrong to give the "New Social
Democrats" in the DGB and the SPD all the credit for this achievement.
There were other forces that contributed to the recasting of labor relations
and the forging of a new social compact after 1945. Among them were
employers who rejected a return to the authoritarian capitalism of the past
and the "class struggle from above" that the managers of the Ruhr com
bines had been waging so fervently during the Weimar Republic. The
metamorphosis and also the generational shifts that occurred among own
ers and managers have been analyzed in some detail elsewhere and need
not be rehearsed here. The role of Ludwig Erhard in this picture has also
been given due credit. What still requires further exploration and integra
tion into the research on German domestic politics in this field is the
position of the United States.
It is generally known how the contours of Pax Americana took shape
in World War Two against the background of the "New Order" that the
Germans and Japanese were trying to build at the height of the conflict in
1941-1942. American peace aims can be found in the Atlantic Charter or
in influential articles such as Henry Luce's piece in Life Magazine, entitled
"The American Century." It was essentially a Wilsonian vision, postulating
the establishment around the world of civil liberties, constitutional govern
ment, and a multilateral liberal-capitalist trading network. With the defeat
of Nazism, however, U.S. peace aims began to be translated into political
action, and it was in Germany and Japan that Washington, as the hege
monic occupying power, had the greatest leverage for implementing spe
cific reforms. The importance of these policies is that they worked to
stabilize volatile situations in some areas (and it is important to remember
the chaos that existed in Europe in 1945), but recast them in others. As far
as the economy was concerned, what was certainly to be eliminated was the
highly organized and cartel-regulated authoritarian capitalism that had ex
isted in Germany (and Japan) up to 1945. Monopolies were to be broken
up and competition in the economic marketplace was to be restored, just as
a multiparty system was to be reestablished in the political marketplace. In
this vision, political democracy was inseparably linked to "industrial de
mocracy," American style, and extended beyond the idea of antitrust legis
lation. Indeed, it also aimed at the recasting of German (and Japanese, and
ultimately even European) management traditions and labor relations.
Targeting these traditions was based on the impression, no doubt justi
fied by their behavior under Nazism, that German industrialists were au
thoritarian, inflexible, and socially irresponsible, and lacked understanding
of the problems and concerns of their employees. Accordingly, the occupa
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130
region. Some, like Ludwig Vaubel, later the chief of Vereinigte Glanzstoff,
took the cue. The first German graduate of Harvard's Advanced Manage
ment program in 1950, he returned to the Rhineland convinced of the need
to spread the American gospel and founded the Wuppertal Circle for the
promotion of a modern management training.
Meanwhile Der Arbeitgeber, the journal of the German Employers'
Federation, also publicized new ideas from across the Atlantic. Its issues
from the early 1950s are full of articles on social-psychological and educa
tional topics. "Human Relations," the concept under which the new ideas
1940s, and more recently Michael Fichter has looked at the U.S. High
Commission and its policies toward the unions. What emerges from this
work is that American labor representatives inside and outside the occupa
tion administration made a major effort, first under Military Governor
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The United States and The Shaping of West Germany's Social Compact 131
Struck by the hierarchies that pervaded the DGB, where strict seniority
and top-down rulings seemed to be the pattern, the officials in the Office of
American ideas."
Second, we see that this model was not simply homegrown, but was
also heavily influenced by what came from across the Atlantic after 1945.
This therefore raises the question of the "Americanization" of West Ger
many's society and economy. It cannot be stressed too strongly that this
"Americanization" was not the overrunning of an indigenous German in
dustrial culture by a hegemonic economic system across the Atlantic. As
we have seen repeatedly, there was conflict, there was skepticism, there
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article. The German experience of the postwar "social compact" was not
unique.
REFERENCES
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Fichter, Michael. "HICOG and the Unions in West Germany." In American Policy and the
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