Early Years
The early years of the Representatives' Centralization of Germany were dominated by a discussion on how to finance strikes by individual local trade unions. The issue was how local unions could retain their autonomy when receiving financial assistance. Originally, all support between local organizations had been voluntary. But this system became more and more impractical, especially after the turn of the 20th century saw numerous large strikes in which employers reacted more aggressively — often by locking out workers. In 1899, the Business Committee felt it had to support a strike in Braunschweig. It took out a loan, which was paid off with dues income and from donations by Berlin unions. The following year, the Business Committee incurred 8,000 Marks in debt by supporting strikes. Part of the debt was paid off by the SPD, while the rest was apportioned among the local unions.
This practice was replaced in 1900 by a far more complex system of assessments and donations designed to raise the money to support strikes. This system was replaced in 1901 because it was impractical. The 1901 system required every local union and the central committee to create strike funds. Local unions would receive support for strikes from Berlin under certain circumstances, and the central Business Committee's fund would be replenished by all member organizations in amounts proportional to their membership and the average wage of their members. This system, too, proved problematic because it penalized the larger, wealthier unions — especially the construction workers in Berlin who had higher wages but also higher costs of living. From 1901 to 1903, many small organizations joined the federation, yet the FVdG's membership fell as the punitive strike support system drove some larger unions out. In 1903, the federation not only changed its name to the Free Association of German Trade Unions but also decided to return to the old system of voluntary contributions. This system remained in place until 1914. The Business Committee worked to ensure that unions contributed as much as they could. Often the committee resorted to threatening unions with expulsion in order to raise funds for a strike. Fritz Kater called this a dictatorship necessary for the movement, but local organizations still had far more autonomy than their counterparts in other German labor federations.
Read more about this topic: Free Association Of German Trade Unions
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