Holy Roman Empire

Chapter 609: Getting Worse and Worse

Once the newspaper published the story about the strike at the Dekker Textile Factory, it quickly became a hot topic in society.

The government of the Kingdom of Lombardy swiftly intervened, and the first to suffer were a few news agencies in Milan. The Government Press Bureau invited their heads for a “chat over coffee.”

Newspapers have a responsibility to reveal the truth. Not reporting it may affect the newspaper’s credibility but it does not constitute a crime. However, if there is a transaction of interests and deliberate cover-up of the truth, that is indeed a crime.

Reporters from news agencies all over the country have now arrived, yet the local newspapers in Milan remain silent, naturally arousing suspicion.

Undoubtedly, in the end, nothing substantial could be found. If they dared to help with the cover-up, they were certainly prepared for the investigation.

Newspapers and businesses have always had business dealings, and transactions of interest aren’t always directly in cash. They’re often dispersed within advertising contracts, making it very difficult to uncover the truth.

Take the Milan Daily, for example. They sent reporters far away early on, and aside from the regular staff, several chief editors went on vacation to Vienna.

With the senior management absent and reporters sent out of town, it seems somewhat understandable that they “missed” the Dekker Textile Factory strike due to being understaffed.

Escaping the investigation does not mean the matter is resolved. For a news agency, the most important asset is credibility. Without credibility, who would subscribe to your newspaper?

Many insightful people have already come to realize that this time, it is very likely that Ludwig II’s focus isn’t actually on the Dekker Textile Factory. After all, a major enterprise like this is crucial to the Kingdom of Lombardy’s economic development. If it were to collapse, it would lead to massive unemployment.

The King must also consider the consequences. It is far more likely that he is targeting the domestic news agencies.

In these times, controlling the press means controlling public opinion. It’s only natural that Ludwig II would seek to strengthen royal authority by extending influence over the newspapers.

This trend was started by Franz, who began establishing newspapers even before ascending the throne. After becoming monarch, his influence only grew, and now virtually every major Austrian newspaper falls under royal influence.

The results speak for themselves: the royal family’s image has been greatly elevated in the press.

There were naturally many imitators. Monarchies are still at their peak across Europe, with royal families wielding significant power, making it all too easy to reach into the media.

The Lombard royal family, being newcomers, were a step behind. But after years of groundwork, the timing is finally right for them to exert influence over public opinion.

It’s an open secret, but there’s no evidence. Officially, the royal family has no connection to the press, and the government’s warning to newspapers is proof enough.

Behind the scenes, though, compliance with the royal mandate is inevitable. Otherwise, they wouldn’t have so easily overcome this recent challenge.

If someone wanted to probe deeper, they could look into advertising deals as a means of exchanging favors. Prices don’t lie, and an investigation into ad rates could reveal a lot.

Ludwig II’s actions were not hidden, and Franz in distant Vienna received the intelligence immediately.

However, this is an internal matter for the Kingdom of Lombardy, and Franz has no intention of interfering. A king influencing the press is a minor issue, after all.

In a way, this is a positive beginning. When it comes to power, the emperor and kings are on the same side. As Ludwig II strengthens the authority of the monarchy, he also bolsters the authority of the emperor.

This alignment can be seen in Vienna’s media: newspapers rarely criticize the country’s kings. When criticism does appear, it’s usually directed at the regional governments instead.

Franz is not concerned with Ludwig II’s actions. Rather, it’s the Dekker Textile Factory strike that worries him.

If the issue isn’t resolved quickly, it could trigger a chain reaction. European workers tend to act in solidarity. Once one group takes a stand, imitators are never far behind. ?

“Your Majesty, this is an urgent telegram from the Kingdom of Lombardy.”

The voice of his attendant interrupted Franz’s thoughts.

Taking the document and skimming it, Franz had to admit he had a “crow’s tongue” tendency.

“Good things don’t come true, but bad things always do.” He had just worried about the strike at the Dekker Textile Factory causing a chain reaction, and now it had happened.

Since Lombardy switched from cultivating wheat to mulberry, it has relied on domestic sources for grain. Compared to the grain-producing regions, prices are naturally higher.

A high cost of living doesn’t necessarily mean high wages. Due to the proximity to Italy, Italian workers often come for jobs, keeping wages in the Milan area from rising.

Compared to most regions of Austria, wage levels in the Kingdom of Lombardy are relatively low. Low income combined with high expenses inevitably leads to conflict.

The Dekker Textile Factory strike is just the tip of the iceberg. Lombardy has always been the region with the most strikes in Austria, by far.

Strikes are contagious, and due to the influence of the strike at the Dekker Textile Factory, workers at nearby factories are also joining in. The labor movement is spreading across Lombardy.

Putting down the document, Franz ordered, “Notify the cabinet to convene, and have the Minister of Labor join us as well.”

The crisis has erupted. The late 19th century is not only a period of rapid economic growth but also one of the most intense labor-capital conflicts.

Strikes are frequent in this era. Some capitalists have even resorted to machine-gunning workers, while others have been killed by workers in turn. Overall, it’s a chaotic time.

The eight-hour workday, as known later, was won through the sacrifices of countless workers in this period. Due to Franz’s influence, the eight-hour workday arrived somewhat earlier in this timeline, and now workers are fighting for better benefits.

Even with the Labor Protection Act in place, wages and benefits remain low. The government cannot decide wages so workers must fight for it themselves.

The law of supply and demand determines labor market prices. Now, it’s a time when workers are fighting for higher wages, but the outcome remains uncertain.

The Labor Protection Act protects the interests of both labor and capital: workers can demand better wages, and employers can refuse. Neither side can force the other.

With competing interests at stake, this struggle is bound to be prolonged. Soon, this issue won’t just affect Austria and all industrialized European countries will face it. None will be spared.

…

After reading the contents of the telegram, the people who had rushed in did not even take a moment to rest. Everyone was aware of the strike at the Dekker Textile Factory, but in just two days, it had spread throughout the entire Kingdom of Lombardy.

The number of people participating in the strike has now surpassed the initial 100,000 and has reached an astonishing 300,000, with the number still rising.

Franz said, “You’ve all seen the telegram. The situation is even more severe than we anticipated. It’s not just in the Kingdom of Lombardy, other regions of Austria are facing the same problem.

If things go as expected, we are about to see a nationwide strike, and possibly even a Europe-wide strike.

This is something that cannot be stopped. What we can do is quickly implement emergency plans to avoid being caught off guard when the time comes.

The Ministry of Labor has issued warnings to businesses with poor labor conditions. If they don’t want to face a large-scale strike, they must proactively raise wages!

Tell them that the government will not interfere before the situation spirals out of control. But if the situation does get out of hand, they will be responsible for the consequences.”

Businesses with poor labor conditions are mostly traditional industries. Emerging industries, which are in a period of rapid growth, require higher-quality workers, so their compensation is naturally better.

Now, the best way for capitalists to avoid a strike is to increase wages. How many capitalists will heed this advice, Franz isn’t sure.

However, one thing is certain: if you stop production and your competitors continue, it won’t take long before you lose your market share. On the other hand, you can take the opportunity to seize your competitor’s market share.

This is both a crisis and an opportunity. After labor costs rise, if businesses continue to be complacent, it won’t be long before they are eliminated by the market.

The era of “survival of the fittest” is about to begin. In the upcoming market competition, businesses without core technology will find it much harder to stay afloat.

Prime Minister Felix proposed, “Your Majesty, how about we raise the minimum wage standard to sound a warning to the capitalists so that some of them don’t take it lightly?”

Franz hesitated. Raising the minimum wage standard is indeed effective. However, intervening in the market can easily lead to unforeseen consequences, and there is a certain risk involved.

“We could start by making an announcement, allowing local governments to set a minimum wage standard based on local conditions and submit it for approval.”

After careful consideration, Franz decided to test the waters first. Managing businesses these days is quite chaotic, and it’s very difficult for outsiders to determine how much profit capitalists are making or how much they can afford in labor costs.

Some industries, clearly making huge profits, can easily make money, yet there are still some that are losing money. The core issue here is poor management.

Businesses with poor management are not isolated cases but a widespread problem throughout society.

These businesses have very poor survival abilities and little risk tolerance. They can only make money due to favorable market conditions, low labor costs, and cheap raw materials.

If any one of these factors goes wrong, they will immediately fall into difficulties. Right now, Austria’s economy is in a transitional period, and under normal circumstances, these businesses would be eliminated by the market.

It’s one thing to be eliminated by the market, but quite another to be eliminated by administrative intervention. These are two different concepts.

Franz didn’t want to take the fall for the capitalists. If they mismanage their businesses and then blame the government, it would turn into a textbook example of how government intervention in the market can go wrong, according to the experts.

…

At the headquarters of the Dekker Textile Factory, Lanoue Sr. sighed alone. The strike had begun to spread, and the situation was no longer under his control.

The situation had developed to this point, and the Dekker Textile Factory was now at a critical juncture. If not handled properly, the business he had worked so hard to build over most of his life could be destroyed.

Should he make concessions to the workers to resume production? He could have done that before the news spread, but now, if he were to do so, he would have to consider the consequences.

There was no way around it. This wave of strikes had been triggered by the Dekker Textile Factory. If he were to compromise with the workers now, it would only further fuel the strike, and he would end up offending not just a few people, but many.

The capitalists whose interests had been harmed would certainly hold a grudge. Offending so many people, including many business partners, would make the future of Dekker Textile Factory look bleak.

Not compromising meant the factory would remain shut down, and it would lose at least tens of thousands of guilders each day. While this was a significant loss, Dekker Textile Factory, being a large enterprise, could afford it.

The real problem was that the Dekker Textile Factory didn’t have much inventory left. Once the stock was sold out, if goods were not replenished in time, competitors would snatch away the market share.

For any business, short-term losses weren’t that scary. What was truly frightening was losing market share.

Losing the market could be caused by one wrong decision and trying to regain it would depend on whether the competitors would allow it.

Lanoue Jr. spoke in a low voice, “Father, we can’t sit idly by any longer. We’ve reached this point, and we must make a compromise now. At worst, we can give up some shares later and bring in more people. There’s always a way to solve problems.

Dragging this out will only increase our losses, and it won’t help the situation in any way. The strike is escalating, spreading everywhere, and it may even surpass the great revolution of 1848.”

Faced with harsh reality, Lanoue Jr. had already advocated for compromise. Survival was the priority. Everything else could be discussed later.

If they had offended anyone, as long as they were willing to offer some concessions, everything could be resolved. In the game of capital, as long as there was enough to offer, enemies could become friends.

Lanoue Sr. walked back and forth and said, “The situation now is different from 1848. Just look at the workers’ actions, and you’ll see that a revolution won’t happen in Milan.”

Clearly, Lanoue Sr. had wavered. Just because Milan wouldn’t revolt didn’t mean Dekker Textile Factory would be safe. On the contrary, this meant they were in danger.

The Lombardy government would not allow this situation to continue. To stabilize the situation, Dekker Textile Factory, as the source of the storm, would likely become the sacrifice to quell the strike.

Despite their large size and economic importance in Milan, once the ruling class made up their mind, they wouldn’t even have the strength to resist.

After a brief pause, Lanoue Sr. added, “Let the management negotiate with the workers, but it must be done separately.

Remember, we cannot let the workers unite. We must create divisions among them as much as possible. Especially these worker representatives. Afterward, we must find an excuse to dismiss them.”