The Theory and Policy of Labour Protection

by A. Schäffle; etc. statutes Germany. Laws

We need only look at the practical aspect of the matter. By the legal enforcement of a sudden and general shortening of the industrial national working-time, by 20 to 30 per cent. of the working-time of hitherto, higher wages are to be obtained for less work, or at least room is to be given for the actual employment of the whole working force at the present rate of wage!

How would an increase of wage, or even the maintenance (and that a continuous one) of the present rate be conceivable in view of a sudden general reduction of working-time by 20 to 30 per cent.? Only, indeed, either by reduction of profits and interest on the part of the capitalists, corresponding to the increase of wage, or by an increase in the productivity of national industry, resulting from an improvement in technique, and progress in skill and assiduity, or from both together.

Now no one can say exactly what proportion the profits and interest of industrial capitalists bear to the wages of the workmen; if one were to deduct what the mass of small and middle-class employers derive from the work of their assistants (as distinct from what they draw from their capital) the industrial rent—in spite of numbers of enormous incomes—would probably not represent the large sum it is supposed to be. Hence it is very doubtful whether it would be possible to obtain the necessary sum out of profits.

Even if this were possible, it is by no means certain that the wage war between Labour and Capital would succeed in obtaining so great a reduction of industrial profits and interest, still less within any short or even definitely calculated limit of time. Some amount of capital might lie idle, or might pass out of Europe; or again, Capital might conquer to a great extent by means of combination; or it might turn away from its breast the pistol of the maximum working-day by limiting production, i.e. by employing fewer labourers than before. It might induce a rise in the price of commodities, which would diminish “real” wages instead of raising them or of leaving them undiminished.

But even if Capital found it necessary in consequence of the legal enforcement of the eight hours day to employ a larger number of workers, it might draw supplies to meet this expense partly out of the countries which had not adopted the eight hours day, partly out of agricultural industry and forestry, and after half a generation, out of the increase in the working population. Capital would also make every effort to accomplish in a shorter time more than hitherto by exacting closer work and stricter control, and by introducing more and more perfect machinery.

With all these possibilities the eight hours day will not necessarily, suddenly, and in the long run, increase the demand for labour to such a degree that the employer will need to draw upon his interest, profits, and ground rents for a large and general rise of wages, or for the maintenance of the former rate of wage. At least, the contrary is equally possible, and perhaps even highly probable.

Such an increased demand for labour would indeed ensue if the growth of population were to be permanently retarded. But that it should be so retarded is the very last thing to be expected under the conditions supposed, viz. a general increase of “real” wages, which would obviously render it more easy to bring up a family.

Hence the assumption that the eight hours day would lead to an increase of wage, or the maintenance of the present rate of wage at the cost of profits and interest, is not proven; so far from being certain, it is not even probable. Therefore, it cannot serve to justify so violent an interference on the part of the State, as the enforcement of the general legal eight hours’ day on January 1st, 1898. Such an interference would be calculated to bring a terrible disappointment of hopes to the very labourers whom it is intended to benefit.

Just as little can it be justified by the assumption that as much would be produced (hence as high a wage be given) in a shorter working-day, through the improvement of technique, and increased energy in work, as in a working-day of 10 or 12 hours.