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Studies in Communism

Trade Unionism And The Class War

But suppose that the law of supply and demand does deter- mine, with exactness, the nominal as well as the actual price of the commodity, labour power?

Then the best that can he said for the necessity of Trade Unionism as opposed to revolutionary communist organisation and action has ceased to possess any meaning.

To develop this economic argument in favour of the social revolution, and against Trade Union reform, is my purpose in writing the present brochure.


Nominal wages are actually received in cash, irrespective of the conditions of employment. Actual wages are nominal wages, plus the conditions of employment, hours of labour, etc.

What is the basis of wages?

Marx has asked us to suppose that an average hour of labour be realised in a value equal to sixpence, or twelve average hours of labour realised in six shillings. If, then, in the raw material, machinery and so forth, used up in a commodity, twenty-four hours of average labour were realised, its value would amount to twelve shillings. If, moreover, the workman employed by the capitalist added twelve hours of labour to these means of production these twelve hours would be realised in an additional value of six shillings. The total value of the production would, therefore, amount to thirty-six hours of realised labour-power, and be equal to eighteen shillings. But as the value of labour-power, or the wages paid to the workman, would be three shillings only, no equivalent would have been paid by the capitalist for the six hours of surplus value worked by the workman and realised in the value of the commodity. By selling this commodity at its value for eighteen shillings, the capitalist would, therefore, realise a value of three shillings for which he had paid no equivalent. These three shillings would constitute the surplus value or profit pocketed by him. Any increase in the wages of the workers must reduce the amount of his surplus value, since that is the only fund out of which such increase could be obtained. It is possible for the wages of the workman to rise so high as not only approximately to equal the value of his product, but actually to equal it. In a word, if the law of supply and demand works with the inexactness assumed by the Trade Unionist to be the case, palliation is not merely justifiable on the grounds of expediency; it is the direct path to emancipation.


Is it true that the law of supply and demand fixes the price 'with so little exactness, that supply and demand become equal not at an exact point of price? May it be that several prices, or a range of prices, will satisfy the requirements of the law? That there is, or may be, a kind of table-land within which the law does not operate? Let us take the Trade Union political economists' typical example. A hundredweight of fish is sold by Dutch Auction, i.e., the seller bidding down instead of the buyers bidding up. One buyer may be willing to give 20s. for the lot, and no other buyer willing to give more than 18s., and the man who is willing to give 20s. will get the fish at 18s. or a fraction over it. So that in the same market, with the same quantity of fish for sale, and with customers in number and every other respect the same, the same lot of fish might fetch two very different prices, the law of supply and demand being equally and completely fulfilled by either of these prices. Within a limit of 2s. the law is inoperative.

It is claimed, that in a case such as this, much depends on who has the initiative in bargaining. In the instance given, the possessor of the initiative gives to the seller a distinct gain of 2s., not accounted for by the law of supply and demand. Supposing the price of labour-power to fall within a similarly excepted category, 'the same principle as operated against the buyer in the case of the Dutch Auction will now operate against the seller in the labour market. It is the buyer who has the initiative in fixing the price. The employer, the purchaser of labour-power, makes the offer of wages. The dealer or seller, i.e., the labourer, accepts or refuses. The advantage of the initiative is with the employer therefore. This can only be modified by a close combination among the employed, whereby they may place a reserve price on their labour. Under these circumstances Organised Labour may secure a larger positive amount of the produce of its labour-power, within the limits not covered by the law of supply and demand. It may, therefore, secure the economic equivalent of culture by virtue of its organised status.

Outside of this table-land the law of supply and demand remains intact. The more numerous the competitors for employment the lower will the wages be, other things being equal. This fact forces on the attention of the Trade Unionists the necessity for restrictive rules, forbidding the employment of non-unionists and limiting the number of apprentices. Such rules are indispensable to the complete efficacy of Trade Unionism. They make the Trade Unionist the apologist for an aristocracy of skilled labour.

Trade Unionism's final refuge is Malthusianism. its specious pretence is that the ignorant and untrained part of the proletariat will people up to the point that will keep their wages at that miserable rate which the low scale of their ideas and habits makes en, durable to them. As long as their minds remain in such a state,



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