Holy Roman Empire

Chapter 607: Labor Strike Movement

Immigrating ten million people sounds terrifying, but when spread out over five years, it amounts to only two million immigrants per year.

Considering Austria’s current population base and a growth rate of 2%, the native population adds about 1.7 million each year, and it could be even more.

In an era without any entertainment activities, people were still keen on procreation. Coupled with the Austrian government’s birth subsidies, Austria’s population growth rate has consistently ranked among the highest in the world.

Although the total native population won’t decrease significantly, the impact will still be considerable. We are currently at the cusp of the Second Industrial Revolution, where emerging industries are continuously expanding, leading to an increasing demand for labor.

While labor demand is rising, the supply is decreasing, which alters the supply-demand relationship in the labor market and inevitably drives up labor costs.

Compared to traditional industries, the most notable characteristic of emerging industries is their vitality. During periods of rapid development, companies enjoy higher profits and can naturally afford to pay higher wages.

In this context, traditional businesses must innovate technologically if they do not want to be eliminated from the market.

In fact, many new production devices have already emerged. However, some capitalists are reluctant to replace them to save costs.

This is not a mere guess by Franz as there is evidence for it. Some capitalists have even complained in newspapers: Now that mechanical equipment is being updated so frequently, if we replace it today, it might become outdated again in a few years. Since our current equipment still works, it’s better to wait for something better to come along before making a complete switch.

For a long time, the comfortable business environment has made capitalists conservative. Many even oppose technological progress because it increases uncertainty.

A typical example is the electric era. To save costs, many factories still insist on using gas lamps.

It’s not that capitalists are unaware of the advantages of electric lights, but they are unwilling to spend money on installing electrical equipment.

After all, they can continue using gas lamps and still make profits, so why complicate things?

In Austria, the impoverished population is not primarily in the vast rural areas but concentrated in cities. The main reason for this situation is that everything is rising in price, yet wages remain stagnant.

From 1848 to now, Austria’s per capita income has increased by 2.3 times, but workers’ wages have only risen by 56%, and in many factories, wages have not changed at all.

The economy is developing, but incomes have not kept pace, so it’s no surprise that people are falling into poverty.

Now Franz is resorting to immigration as a strategy, which is actually a last resort. If this situation does not change, it will inevitably lead to problems sooner or later.

…

Milan, as the capital of the Kingdom of Lombardy, has always been the most prosperous city in Italy. No, it should now be said that it is the most prosperous area in the German region.

Geographical boundaries have always been artificially defined. Now that Austria is powerful, Franz has directly classified Lombardy as part of the German region.

Regardless of whether people accept it or not, all official documents state that Milan is part of the German region. The theoretical basis for this is that the Lombards are a branch of the Germanic people.

Although there are more Italians in the area, it doesn’t matter. History can be rewritten, cultural traditions can change, and ethnicity can be changed.

The international community has recognized that the Kingdom of Lombardy is indeed part of the German region. Along with Lombardy, many other areas have also been classified as part of the region of Germany, such as neighboring Venice, and even further places like Hungary and parts of the Balkans...

Even the Kingdom of Jerusalem is about to become part of the German region. Looking at the current map of the German region can make historians go red in the face.

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All those natural conditions and historical factors are nonsense. The real basis for division is very much a product of its time: anywhere within the range of Austrian artillery is considered part of the German region, or rather, the Austrian region.

It’s just a name so calling it whatever doesn’t affect anyone’s interests. After hearing it a few times, people will get used to it.

The Dekker Textile Factory is a well-known large enterprise in the Milan area and ranks among the top three textile factories in Austria.

It includes more than a dozen factories such as silk mills, woolen mills, cotton mills, dyeing factories, and garment factories, employing over 130,000 workers.

In the Milan area, where there is an independent industrial park, factories would typically be bustling at this time, but now there is an eerie silence.

Those in the know understand that another strike has occurred here.

Austria is promoting compulsory education, and the Kingdom of Lombardy is no exception. Thanks to the cultivation of a sense of discipline from a young age, the current labor strike movements tend to be much more harmonious.

People have come to realize that machinery is essential for their livelihoods so vandalizing equipment only jeopardizes their own jobs.

This does not hinder their right to go on a strike legally. As long as it does not disrupt public order, going on a strike remains a fundamental right that does not require approval from anyone.

Milan has been heavily influenced by Italian maritime culture and is the birthplace of the Renaissance. Compared to other regions in Austria, new ideas are much more vibrant here, and strikes are also more frequent.

Of course, this is not the main factor behind the strike at the Dekker Textile Factory. Like most traditional enterprises, the once-thriving Dekker Textile Factory has gradually fallen into decline.

With the onset of the Second Industrial Revolution, the Dekker Textile Factory did not seize opportunities and sided with conservatives, failing to update its equipment in a timely manner, which led to fatigue in market competition.

Due to declining profits, the company has not raised wages since 1870, while prices have continued to rise without waiting for them, naturally leading to strikes.

Like most companies, the Dekker Textile Factory is a family business. The current head, Dekker Lanoue, is already an old man in his seventies.

In his youth, he was also a prominent figure. During the Austro-Sardinian War, he decisively bet on Austria, and after the war ended, competitors who chose the wrong side faced dire consequences. Dekker Lanoue took the opportunity to take over their factories and began a life of ease.

Taking advantage of the market gap, Dekker Textile Factory rapidly developed, at its peak employing over 180,000 workers and achieving annual production values that placed it among Austria’s top 100 companies.

However, this industry, lacking core technology, shares a common problem: there are many competitors.

After the Austrian government implemented the cultivation of mulberry instead of wheat, the Kingdom of Lombardy quickly became Austria’s most important silk-producing region.

Being close to the source allowed the Dekker Textile Factory to enjoy the first wave of profits, as local production significantly reduced costs.

Even now, the Dekker Textile Factory occupies more than half of Lombardy’s silk processing market. With a complete industrial chain, it should be thriving.

However, with the arrival of the Second Industrial Revolution, circumstances began to change. Various mechanical devices were constantly being updated, but the aging and conservative Dekker Lanoue did not keep pace with the times in pursuit of greater profits.

Being slow to adapt led to being left behind. Capital competition is relentless, and competitors would not leave them any opportunities.

New technologies not only improve productivity but also enhance product quality. When prices are similar, higher-quality goods are undoubtedly more popular.

In just a few short years, Dekker Textile Factory’s market share was eroded by one-third by competitors, and the company’s profits plummeted.

After receiving news of the strike, Dekker Lanoue suddenly slammed his hand on the table and said, “Another strike! These ungrateful people don’t even think about who’s supporting them!

If we go under, they won’t have jobs at all. If they don’t want to work, then fine. There are plenty of people who want to work in our company.

Send out the order that according to the old rules, 10% of the strikers will be fired and order them to return to work immediately. Those who are the last to return are going to be kicked out!”

This was the method Dekker developed to deal with strikes. Among the workers, he had also bought off spies. Whenever this happened, as long as someone took the lead in returning to work, the strike would falter.

Typically, those who stayed until the end were the stubborn ones and they naturally needed to be fired. Whether or not he really intended to lay off 10% was not important. What mattered was getting rid of the stubborn troublemakers, or the ringleaders, as a warning to others.

In this era of competition, Dekker believed he was doing quite well. At least he was following the law, which was much better than underground sweatshops.

Of course, this was limited to his personal view. In the eyes of the workers, he was a vampire. Complying with the Labor Protection Act? Sorry, no large companies in Austria dared to break it and only small businesses took the risks.

There was no choice. The Austrian government kept a close watch, and enforcement was very strict. Moreover, the Labor Protection Act was not excessive. It effectively protected the interests of both parties.

It wasn’t that no one threatened the Austrian government with factory closures, but it was utterly useless. When it came to upholding the dignity of the law, Franz was very thorough.

No matter what consequences arose, whether going to prison or not, one had to face it. If you threaten the government, you’d better hope you have no skeletons in your closet, or you’ll find your assets seized, leaving you with no factory to close.

A large portion of Austria’s state-owned enterprises were confiscated, and almost every few years, the Austrian government auctions off a batch of state-owned companies, most of which are small factories.

After these precedents, later generations became much more cautious. It’s one thing to exploit legal loopholes, but openly opposing the government? Forget it!

Although the bourgeoisie seems powerful, their actual strength is very limited. They rely on money to create an illusion of influence.

Not to mention, who can successfully unite the bourgeoisie, which has severe internal conflicts of interest? Do you believe that someone won’t turn traitor in a heartbeat?

This situation is most evident in Austria. After the law mandated that news must guarantee authenticity, capitalists have been much quieter.

Making empty promises and boasting also comes with legal responsibilities. You can brag all you want, but newspapers won’t dare to publish it.

The Young Lanoue objected, “Father, this isn’t right! Over the past year, we have already fired 20,000 long-time workers. Now, many of the new hires lack the necessary skills, and our defect rate has increased by two percent.

The rise in defect rates will affect our product reputation. With competition so fierce right now, if we can’t ensure product quality, our market share will be taken by our competitors.

This creates a vicious cycle. It would be better to send someone to talk with the workers’ representatives first and then fire these troublemakers afterward.”

As a qualified capitalist, profit is always the top priority.

After weighing the pros and cons, Dekker Lanoue shook his head, “We cannot compromise since human desires are endless. Once this precedent is set, we will never have peace.

Do you remember that canning factory next door? McDougall, who was such a shrewd person, compromised with the workers to rush an order, and then he was directly dragged down by high labor costs.

Remember, even if we need to raise wages, it must be initiated by us. Making concessions under their pressure will not earn us any gratitude.”

The Young Lanoue had heard this example many times before. However, his view was quite the opposite. Even though the canning factory closed down, McDougall was still living quite well, clearly not unable to afford labor costs.

The fact that there isn’t a single large-scale canning factory in the Kingdom of Lombardy already speaks volumes. The vast majority of food factories in Austria are concentrated in Hungary and the Balkans, and the reason is simply proximity to raw material sources.

Are they going to use mulberries as raw materials for canning in Milan? Don’t be ridiculous, who would they sell this stuff to?

Currently, the best-selling canned goods on the market are meat products. Canned fruits and vegetables are only procured by ship crew members. Unfortunately, Milan has no advantages in this regard.

However, he did agree with the last statement. Making concessions at this time would indeed fail to win people’s hearts.

As for afterward, since they have already returned to work, why increase labor costs?