German Industries and Labor Movement

  The unity of Germany in the late 19^th century drove the economic mechanism and the development and growth of industries. Abolishing of tolls in 1818, in Prussia, Hanover, and Bavaria states, enabled Germany to be a common market and its extension, through a treaty, to other states in 1833. The promotion of German state governments enhanced the development of rail all over German, which led to the increase in demand of coal and steel. The coal industry started in the Ruhr valley and developed, making German a leader in coal production in Europe, which eventually boosted the development of steel industry. Consequently, the banking and the capital markets grew, boosting the chemical and electrical industry, elevating German to a powerhouse in chemical and electrical field (Patch 55-59).

The engagement of German in World War 1 and its consequential loss greatly influenced its economic status, leading to chronic unemployment. The creation of the Nazi empire successful solved the unemployment problem with a cost in inflation, which led to price freeze. The effects of both world wars brought the German economy to its knees and only through foreign occupied states and the black market did it survive. The period of 1948-60 saw the miraculous growth of the economy through monetary, economic and institutional reforms.

The western German state took charge of the mining, steel and energy industry, within time repaid all its debts, and started running at a profit. Its initial export of raw materials saw it develop industries and the end of 1950s found it being a major supplier of finished goods to Western Europe (Patch 66-69).

Previously the labor unions were partisan and divided into socialist, communist, catholic and liberal trade associations (patch, 1984). After the end of the world wars, labor leaders wanted to deviate from the past and form unions independent of political parties, which led to the formation of federation of German trade unions (Deutscher Gewerkschafts Bund-DGB (77). The DGB had four principles

1.     It wanted a unitary and autonomous organization free from religious and political parties.

2.     Organized unions along industrial lines so as to ensure cohesiveness

3.     Creation of a decentralized system  of interest representation

4.     Legislation became the point of protecting workers right rather than direct negotiations with businesspersons.

Work cited

Patch, William. L. German Social History and Labor History: A Troubled Partnership.     Chicago: The University of Chicago Press. (1984).