# Work Councils and Socialization

## GA 331 — 23 July 1919, Stuttgart

### Meeting for the Formation of the Preparatory Württemberg Works Council

*Introductory words by Rudolf Steiner*

Dear attendees,

Today, as we have the aforementioned agenda before us, it will be of some importance that we once again fully clarify what is actually meant by a works council in terms of the threefold social order.

First of all, we hold to the view that, in the way we are now approaching the setting up of the workers' council, we are striving above all to initiate the actual beginning of a real socialization with this workers' council. When one hears people speak of socialization today, one always gets the feeling that they do not really know what they want with socialization. Most people understand socialization to mean nothing more than the nationalization of existing businesses, existing branches of production, and so on. You know that the threefold social order is about clearly separating the three areas of human social life, so that in the future we will have the overall administration of spiritual life, preferably of education and teaching, as a member of the threefold social organism. Administration will only be carried out by those organs that are part of this spiritual life, in fact by the spiritual life itself. Thus, on the part of those personalities who will be involved in the spiritual life, the bodies will be organized that have to administer the spiritual life. Secondly, there will be the actual state, the political body, which is to be built on a completely democratic basis, so that everything that is to be regulated democratically belongs to the sphere of this second link in the social organism. The third link would be economic life. In this economic life, only economic activity is to be carried out. That is why I have often had to explain that actual legal issues should not be decided within this economic administration. These actual legal issues should be decided within the democratic life of the state. For example, labor law is to be decided within the democratic life of the state; the length of working hours and other rights that one working person has over another working person are to be decided. Everything that relates to such rights is to be regulated on a democratic basis in a kind of parliament, or whatever you want to call it, that emerges from universal suffrage.

Economic life is separate from this, and is supposed to be managed entirely by itself, in which it is merely to be managed. And on the basis of this economic life, we are now trying, I would like to say, to set up a kind of works council, as a kind of transitional measure.

How do we do that? We have already begun, and some of the members of the works council are already present today. We are proceeding in such a way that first a certain number of members of the works council are elected from the individual enterprises. Who can be elected to the works council? Anyone who is a manual or mental worker can be elected to the works council, and also, since we are in a transitional period, if they join the ranks, the former entrepreneur or the management of an enterprise. It should be noted here, however, that no one has a privilege, so that even an entrepreneur who is elected to the works council joins the other works councils. This works council is therefore a body in which everyone has absolutely equal rights and should count for as much as they understand in economic life in their field. So these works councils emerge from the individual branches of production. But we will only have something fruitful for the reorganization of economic life when we have many more works councils than we have now. Today we only have a small number of works councils, and hopefully after today's meeting they will work in such a way that a works council system will gradually come about. So, as I said, we initially have a small number of works councils. These works councils have emerged from individual companies. What we really need is for works councils to be formed from all companies in a self-contained economic area, that is, initially in a provisionally closed economic area, let's say Württemberg. You see, for the kind of works council that we have to think of, you need works councils from all companies, from all sectors. These works councils then form the works council for a self-contained economic area. And socialization should begin by establishing such a body over a self-contained economic area, with the aim of placing itself on a firm footing in the sense of rebuilding economic life. That is to say, this body should feel that it is the leading economic entity in the area concerned. It should feel that it is the real source of the management of all types of businesses in this economic area. This council should therefore see as its ideal a future in which no individual entrepreneur is responsible for the individual businesses, but rather that everything that is done in the businesses is done, so to speak, on behalf of this body, this original assembly of the council. If we keep this firmly in mind, we will have created for the first time what the demands of the social parties have always, more or less consciously, been striving for. The demands of the parties are usually formulated negatively, for example when one speaks of the abolition of capital and so on. Yes, but little is achieved by abolishing. By abolishing, all we do is gradually disintegrate our economic life! But how the tripartite social organism should work is precisely the opposite: it should build up. But to build up, one needs a constructive body.

Whether the works councils are elected or delegated in this or that way in the future is a question that must be decided within the works council itself. Today, we have the task of establishing the works council in the only possible way for the time being, namely through elections in the individual companies. The point is that one step must be taken before further steps can be taken. When the works councils have been elected – smaller companies can, of course, join together for the purpose of the election – then their first task is to create what could be called a complete overview of the entire economy in the self-contained economic area in question. This then means 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 – form, so to speak, the atoms of the works council body. This body should already be prepared by the first task. So let us assume that company A has elected its five works councils. These five works councils would now initially have the task of drawing up a kind of inventory of the entire economic operation for their company. This inventory would then have to be brought to the first assembly of the works council. So you would have to know how much capital is in the respective company, how it has worked so far, and so on. You would also have to know what business connections exist in terms of the utilization of products, the procurement of raw materials, and in general with the outside world. At the same time, one would have to ensure that the best possible cooperation is established in the individual companies. Gradually, one would also know which entrepreneurs support the cause and which do not, because in the companies where the entrepreneur refuses to cooperate, the works councils would be prevented from being able to obtain information about the company, or these works councils can only come to the original meeting with as much information as is possible. On the basis of the information that the individual works councils can present from their respective companies, an overview of the economic life of the economic area concerned would first have to be created in the primary assembly. This is the first thing that is needed. Then one can approach the actual tasks.

Here, one must first take into account the fact that the structure of the tripartite social organism differs significantly from what is thought within, for example, the parties about the continuation of economic, political and intellectual life. The task at hand must therefore be regarded as an eminently economic one, that is to say, on the basis of what has been obtained as provisional material, what must first be determined is that which leads to a real stipulation of normal prices for the various goods produced. That is the first task in the course of future socialization, that we find out how much, according to the economic situation, for example, a pair of boots, a skirt and so on, may cost. I have often mentioned the basis for the price regulation in my lectures. Accordingly, in the future, each person will receive enough for what he produces himself to be able to satisfy his needs until he has produced an equivalent service. In other words, someone produces a pair of boots – the following also applies to services that cannot be clearly defined – and these boots should have a value comparable to that of other goods, so that what I get for the boots can serve to satisfy my needs until a new pair of boots is finished. That is what the individual price ranges stipulate. Of course, everything that has to be raised for the education of children, for the disabled, for widows and for those unable to work must also be included. The correct price emerges from all this. Setting this is the first act. But this is a very large task. The work of the workers' councils, if it is not to end in wrangling over empty phrases, must begin with the determination of price levels for what is produced, otherwise we will never be able to achieve true socialization. It is self-deception to believe that by setting wages from other bases we will achieve true socialization. That is simply nonsense, because you can increase wages at will according to the principles by which they have been paid so far. You can even double the amount you receive in wage increases, and this will be offset by the fact that housing and food will become more expensive again if you do not have a natural standard for pricing that arises from the economy itself.

Once this standard for pricing has been found – the works council will have a few weeks to deal with it – then we will have to move on to finding fair prices. This will then create a basis for what is to be created in the future, and we will know what we can count on. Then the so-called labor contract used up to now can be replaced by a distribution contract between the spiritual and physical workers. Of course, the present employers, with their experience, can also become spiritual workers when they join. Essentially, the contract will be concluded in such a way that it is based on the joint work of the manual and spiritual workers; nothing else comes into consideration. They work together on some product, and this product has a certain price. Taking into account the respective circumstances and possibilities, this price must now be distributed between the spiritual leaders and the workers by contract. So it is no longer a matter of paying the worker somehow, but rather, if one produces goods or manages the production of goods, then one receives the corresponding share according to the distribution contract. This can only be done when everything that is labor law has been established.

Now, of course, with the works council, one can only create economic institutions in the sense of the threefold social order. In the future, however, alongside the economic organization, which is primarily concerned with the fair determination of prices, there will be the parliament of rights, in which every person will find the opportunity to determine his or her relationship to other people. Of course, what happens in the legal parliament is not without effect on economic life. Those who now have to run a business in economic life will have to run it in such a way that they observe what is determined in the legal parliament on the basis of democratic principles regarding the value of work and working hours.

You can read about what intellectual work is, and how the administration of the means of production will essentially be assigned to the intellectual members of the social organism in the future, in my book “The Core of the Social Question”. However, it is still the case today that those who have so far held the intellectual share of the work have been left behind, that is, they do not want to engage with these matters; therefore, we cannot achieve anything in this field yet. But we have to create the system of works councils on the assumption that in the future there will not only be a right-wing parliament, but also a free administration of intellectual life. The spiritual leaders of the companies will also emerge from this intellectual life, and they will also have a say in the appointment of the works councils, so that the judgment of the spiritual leaders is also taken into account in the works council. This is not yet being considered, but we must remember that it will be considered later.

So it is important that this second task is also solved, that is, that a regulation on price relations is found in a general assembly in which all works councils come together. The first task is to be solved by the works councils within the respective company, that is, to inform themselves and take a kind of inventory of what is happening in the company. Many issues will arise that need to be addressed, such as legal questions, questions of operational disposition, and the like. And it will very soon become clear that the works councils and the council of works councils that is then formed will represent the social force from which socialization will then emerge. But the works councils alone will not be able to carry out comprehensive socialization. Above all, there will also have to be transport and economic councils, which will then also be given their tasks. The constituent assembly of the works council will show what steps need to be taken to organize proper administration, proper circulation of goods, the purchase of raw materials, and so on.

So various types of councils will have to be formed, but above all the three councils mentioned. The assembly of the works council can then decide on the details. Now, when the works council has fulfilled its initial tasks, it can begin to work out something that the state, which has developed out of the old state and which we now call the 'socialist republic', is currently unjustifiably trying to achieve: the law on works councils. The tripartite social organism would not want a works council law like the one the state has so far proposed, because economic institutions have nothing to do with legal institutions. The legal institutions belong to the continuation of the former state. Economic life has to stand on its own. In today's Abendblatt, it is shown how the current – let us say – 'socialist republic' appears to be working in the opposite direction. It is proposed that the goal should be an ever-closer interpenetration of state and economic life. That is the opposite of what is aimed at with the threefold social order. This interpenetration of state and economic life is precisely what is to be avoided! Economic life in itself and state life in itself, each should administer itself, that is the goal. And in state life only that should be administered that can be administered on a democratic basis, that on which every responsible person can decide. But not every adult can simply decide what is the best way to transport this or that product from one place to another; this requires expertise. And only the people from the respective economic sectors themselves have this expertise. Therefore, the entire economic life must be based on expertise and at the same time have a certain federal structure.

Professor Heck, who has said many foolish things, is mainly afraid that if such a form of administration is established in the economic parliament – but there will not be one, there will only be an economic central council – the small tradesman will not understand the big industrialist, the agricultural worker will not understand the scientist. Yes, but such a situation will not arise in the first place because the associations that arise in economic life will join together in a chain and will be properly negotiated from association to association. It is precisely such an objection that testifies that economic life cannot be administered in a democratic way, but only in a federal, associative way. Something can only come about through proper negotiations.

So, let's say representatives of the shoe industry, the metal industry or the textile industry are sitting there, and they all have specialized knowledge of their respective fields. And the assembly is there to ensure that everyone gives their expert opinion on setting fair prices. It is quite a different matter when you listen to the various judgments and everyone asserts their demands, than when you simply vote democratically. This would achieve nothing more than certain economic sectors joining forces and outvoting the others. Then the minority would never be able to get their rights. Such a majority is excluded in the case of a constitution that arises from the factual context of economic life itself. Thus what is now to be brought about unjustifiably by the Works Councils Act presented by the state would only come about through the negotiations of the works council. I ask that this be noted as the most important thing, that the tripartite social organism rejects every state law in this context.

You see, how this tripartite social organism comes about in detail is not so essential now. We must make a clear distinction in this area between sophistry or phraseology and reality. If you say, as I have always said, that the former state should not continue, but only its middle link should continue, so that the government that takes over the previous state constitutes itself as a liquidation government and is only responsible for public security, hygiene, legal life and the like, then the economic life and the intellectual life remain separate. But if it should turn out that the existing state has already interfered so much in the economy that the existing representatives cannot imagine giving up economic life, it can also happen differently, namely that the existing state says to itself: All right, I will continue to run my affairs as an economic administration, but I will leave out everything that is democratic; the legal and spiritual state should be established alongside me. Then, of course, it would be necessary to throw out all the apparent democracy from this economic administration. That would also mean that, for example, in Germany the National Assembly could no longer function as it has done so far, because the democratic has nothing to do with economic life. So, things can be done either way. In any case, in the future the three elements must coexist.

Then, in turn, the constituent assembly of the Württemberg works councils must produce all the necessary regulations with regard to the tasks and functions of the works councils. The works councils then take what has been decided at this original assembly into their respective companies. These people, who are now returning to the companies, act on behalf of the entire works council within their companies. They do not act on behalf of any individual entrepreneur, but feel that they are the representatives of the entire works council of a self-contained economic area. They manage the company according to these principles.

Now, it may well prove to be best for a great many businesses during the transition period to keep the old management, but now as a member of the works council, for the time being, in order to avoid sabotage or making the mistakes that were made in Russia. If the present management is not willing to accept that the works council is the real manager of the company, then of course the management in question, that is, the present management, would have to resign. Then the works council would have to take over the entire management of the company. It is, after all, really taking it over, but it will have great difficulties without the involvement of the former management, since it must act expeditiously.

But it could also happen, and this would be a further step towards socialization, that each individual company no longer has its own management, but that the management works on behalf of the economic entity of the entire economic area. But above all, care must be taken here – and this should be considered when drawing up the constitution – to ensure that the initiative is not undermined in any way. But the works council should not be structured in the way it is still being thought of today, because some of the proposals, if they were implemented, would lead to something monstrous. Just think that there are even proposals such as: in the future, there must be technical control, economic control and political control in every company. — There are probably even five or six such controls planned in total. The underlying assumption seems to be that everyone is actually a dishonest, a bad guy and therefore must be controlled. If this system of five- to six-fold control is implemented, you will produce nothing at all in the future, because this control system is built in the most eminent sense of mistrust. But if you want to build on it in the future economic life, then you will not move forward. You will only make progress if you build on trust, and this can be built on if the rational operation coincides with the egoism of the individual, so that everyone knows in the future that his work will be best served by the best manager being there. And through this system, the best manager can be delegated.

Ordinary voting will gradually change into a kind of delegation. It will be in everyone's interest that the person with the greatest expertise is in charge. This system will reveal who the best leader is, and even those who cannot lead themselves will know it. This system opens up possibilities other than mere democratic voting or a council system, as people imagine it today. Because both would only lead to informers, to pushiness, and in both the worker would not fare better than he does today.

The issue at hand is to establish economic life on an appropriate, not on a previous state basis. When the workers' councils return to their factories with mandates and the corresponding tasks, work can begin in the individual factories on a social basis. That would be the first practical step we want to take. The following must be implemented in practice: the election of workers' councils across individual industries. Then information must be provided about the economic situation of all industries. Following on from this, the workers' councils from the entire economic area would have to be convened. Furthermore, a constitution must be drafted on the basis of the factual circumstances. This constitution of the works council would be the beginning of real socialization. Until this happens, there can be no socialization, because the state cannot socialize through laws. Socialization can only come from within economic life itself. Today, people think that they can socialize this or that branch of the economy, such as the pharmacy system. That is, of course, pure nonsense; it is nothing more than state capitalization. A nice thing happened once. Soon after the founding of the socialist republic, a very clever gentleman gave a lecture on socialization in Berlin. First, he pointed out how impossible it would be to achieve socialization from the immediately given circumstances, that is, to achieve socialization as the socialist party had in mind as an ideal. Therefore, he said, we cannot arrive at real socialism today, nor tomorrow or the day after, but we must create a transition. And he characterized the transition he wants to create as follows: We must, he said, create a social capitalism between our present capitalist economic system and the future economic system. Well, that is nothing more than proof that one does not know how to begin socialization. But you cannot start before you first create a certain social structure, a society. How do you want to socialize if there is no such society, no social community? The inauguration of such a social community is precisely where the beginning should be made, by combining the works councils into such a society. They cannot socialize factories or branches of industry, only the whole. So they must base the whole thing on what can be extracted from society in terms of people, and then they must socialize with these people.

So those who have been elected as works council members will be able to say that they have a great and important task, and it is they who have to provide the basis for future socialization. And I believe that you are now at the stage where you will understand that the way it has been presented here is the only way to create a proper basis for socialization. It is true that people have the most diverse and at the same time the strangest views about socialization. Yesterday, when I read someone a particular view on socialism, a special thought occurred to him. It was an article by Dr. Georg Wilhelm Schiele, which was headed with the following words: “On true, purified” - then came another epithet, which I will not read now - “socialism”. The article then said:

> "What is social? The state is social: it is the social. What is communism? The community is communism! And what is more, the family. It is the communism that human society always needs. What is more is evil. We had a state that had a great deal of real socialism in it, the Prussian state; and the other German states and the Reich were built according to its model. This state was the most social thing that has existed in a long time and will not exist again anytime soon.
> What was social about this state? Look. The most Prussian thing about it was also the most social, namely the military system, universal conscription.

Now imagine what the ideal of this Dr. G.W. Schiele is!

> "Many a father who watches his son grow up is already worried: how can I give my son, when he comes of age, the last education for body and mind, the education of a man, that turns every lout into a young warrior of steel and a handsome lad? Where is the true art of commanding and obeying taught now, which gave every young German the spirit of integration and subordination to a whole and at the same time educated him to be a leader and superior, a recipient and commander of orders, depending on the task? How do we replace this national education, which protected the German people from becoming foolish and simplistic?"

Then the Lord continues:

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

The tone remains the same. Then he says:

> “The hour will come when we will all sigh, weep and cry out for the social state that we had, for the Prussian state, and then we will try to build a new community according to the model that our fathers have given us.”

When I read this to our friend Mr. Molt yesterday, he thought I was reading from a joke magazine. But it is not a joke magazine. It is the latest edition of the “Eisernen Blätter” (“Iron Leaves”), published by the Eisernen Blätter publishing house in Berlin. It is something completely serious; the entire issue is edited by D. Traub.

That is the view of socialization held by a large number of people. But if something emerges that is not mere theory, but that extends as a works council over a large, self-contained economic area like Württemberg, and if there are, say, 800 people, not just a few as there are today, and if they join forces, it will be a revelation for the entire working class of Württemberg and thus for a large part of the population. That is not theory, that will be a force. But it is essential that this power is first really created, and that is why the 'Federation for the Threefold Social Organism' would very much like to see progress in the election of works councils, now that there is already a small base for the future works council. If this small base were to make it its business to ensure that works councils are elected everywhere, so that we – and this is so tremendously important – do not let the matter go sour, then we will make progress.

You see, it is important that such a thing be done with the necessary speed today, otherwise it will turn sour. In public life, as in the case of certain dishes, things turn sour if they are not enjoyed at the right time. Public affairs should not be left to indifference and lack of interest. They must be carried out with a certain speed. Besides, the Americans and the English will not wait for our slow progress. If we do not get around to saying, by a certain point in the future, which cannot be too far away, “This is how we want to organize things, and we will create a management from those working in the economic sector . Then the Anglo-Americans will pour in funds and join forces with the capitalists still in existence, and they will then run the factories of Central Europe according to the principles of Anglo-American capitalism. Then you will be left empty-handed for a long time. Then you can toil for a new capitalism, which will be much more terrible than the old one. Then you will no longer be able to socialize anything, then you will have to wait until you are so strong that something similarly bloody to what has happened in the last five to six years will give you the opportunity to think of such things. The complete capitalization of the West is already well on its way. In Berlin, the people have issued the slogan: socialization is on the march! It is not on the march. It will only be on the march when the works council system has been established. But the full capitalization is definitely on the march, that is, the penetration of all enterprises in Central Europe by American and British capital. Therefore, what we can risk today does not tolerate a long period of disinterest, but it is important that we act quickly. And if we now succeed in keeping alive the interest that has already arisen here in the tripartite division of the social organism and that has been thwarted, and if we manage to get such a works council to act as a basis for socialization throughout Württemberg, then we will have set an example for our colleagues in the rest of Germany. What the works council is doing here will set an example, and when the others see it, they will follow suit.

Make sure that you set up the works councils within two weeks, then hold a constituent assembly that draws up a constitution in a few weeks, which must be ready before the law is passed. But it would be really great for here if we could move forward with this example. That is what I wanted to remind you of today.

> The founding of the preparatory Württemberg works council was unanimously decided. Mr. Huth was elected as the first chairman of the action committee, Mr. Roser as the second chairman, and Mr. Dorfner as the secretary. The working committee of the “Federation for the Tripartite Structure of the Social Organism” is made up entirely of the members of the action committee. The office is that of the “Federation for the Tripartite Structure of the Social Organism, Stuttgart, Champignystraße 17, Managing Director: Mr. Kühn.