Why Consult, Why Consent? Employers in Concertation Platforms Facing Welfare State Expansion in the Netherlands, 1920–1960

Abstract

Abstract This article analyzes the attitudes of Dutch employers toward social policy in the early twentieth century. Recent literature has evolved from an emphasis on power to an emphasis on preferences. Moving away from the traditional view that unions and social democrats forced social laws on employers, recent scholars suggest that firms saw specific advantages in the introduction of social laws. However, I show that the attitudes of Dutch business representatives, rather than seeking these specific advantages, merely reflected a willingness to consult, inspired by their macroeconomic view. Employers expressed the wish to attain an organized form of capitalism and accepted regulated forms of codetermination. Once the consultative platforms were in place, employers pursued strategic goals, such as labor peace and disciplining the unions. This paved the way for accepting welfare state expansion. In sum, mid-twentieth century business interests were strongly oriented toward coordinated capitalism.