Written: May 20, 1881 Published: No. 4, May 28, 1881, as a leading article Reproduced from the newspaper Transcribed: [email protected], Labor Day 1996
In our last issue we considered the action of Trades Unions as far as they enforce the economical law of wages against employers. We return to this subject, as it is of the highest importance that the working classes generally should thoroughly understand it.
We suppose no English working man of the present day needs to be taught that it is the interest of the individual capitalist, as well as of the capitalist class generally, to reduce wages as much as possible. The produce of labour, after deducting all expenses, is divided, as David Ricardo has irrefutably proved, into two shares: the one forms the labourer's wages, the other the capitalist's profits. Now, this net produce of labour being, in every individual case, a given quantity, it is clear that the share called profits cannot increase without the share called wages decreasing. To deny that it is the interest of the capitalist to reduce wages, would be tantamount to say that it is not his interest to increase his profits.
We know very well that there are other means of temporarily increasing profits, but they do not alter the general law, and therefore need not trouble us here.
Now, how can the capitalists reduce wages when the rate of wages is governed by a distinct and well-defined law of social economy? The economical law of wages is there, and is irrefutable. But, as we have seen, it is elastic, and it is so in two ways. The rate of wages can be lowered, in a particular trade, either directly, by gradually accustoming the workpeople of that trade to a lower standard of life, or, indirectly, by increasing the number of working hours per day (or the intensity of work during the same working hours) without increasing the pay.
And the interest of every individual capitalist to increase his profits by reducing the wages of his workpeople receives a fresh stimulus from the competition of capitalists of the same trade amongst each other. Each one of them tries to undersell his competitors, and unless he is to sacrifice his profits he must try and reduce wages. Thus, the pressure upon the rate of wages brought about by the interest of every individual capitalist is increased tenfold by the competition amongst them. What was before a matter of more or less profit, now becomes a matter of necessity.
Against this constant, unceasing pressure unorganised labour has no effective means of resistance. Therefore, in trades without organisation of the workpeople, wages tend constantly to fall and the working hours tend constantly to increase. Slowly, but surely, this process goes on. Times of prosperity may now and then interrupt it, but times of bad trade hasten it on all the more afterwards. The workpeople gradually get accustomed to a lower and lower standard of life. While the length of working day more and more approaches the possible maximum, the wages come nearer and nearer to their absolute minimum -- the sum below which it becomes absolutely impossible for the workman to live and to reproduce his race.
There was a temporary exception to this about the beginning of this century. The rapid extension of steam and machinery was not sufficient for the still faster increasing demand for their produce. Wages in these trades, except those of children sold from the workhouse  to the manufacturer, were as a rule high; those of such skilled manual labour as could not be done without were very high; what a dyer, a mechanic, a velvet-cutter, a hand-mule spinner, used to receive now sounds fabulous. At the same time the trades superseded by machinery were slowly starved to death. But newly-invented machinery by-and-by superseded these well-paid workmen; machinery was invented which made machinery, and that at such a rate that the supply of machine-made goods not only equalled, but exceeded, the demand. When the general peace, in 1815,  re-established regularity of trade, the decennial fluctuations between prosperity, over-production, and commercial panic began. Whatever advantages the workpeople had preserved from old prosperous times, and perhaps even increased during the period of frantic over-production, were now taken from them during the period of bad trade and panic; and soon the manufacturing population of England submitted to the general law that the wages of unorganised labour constantly tend towards the absolute minimum.
But in the meantime the Trades Unions, legalised in 1824 had also stepped in, and high time it was. Capitalists are always organised. They need in most cases no formal union, no rules, officers, etc. Their small number, as compared with that of the workmen, the fact of their forming a separate class, their constant social and commercial intercourse stand them in lieu of that; it is only later on, when a branch of manufactures has taken possession of a district, such as the cotton trade has of Lancashire, that a formal capitalists' Trades Union becomes necessary. On the other hand, the workpeople from the very beginning cannot do without a strong organisation, well-defined by rules and delegating its authority to officers and committees. The Act of 1824 rendered these organisations legal. From that day Labour became a power in England. The formerly helpless mass, divided against itself, was no longer so. To the strength given by union and common action soon was added the force of a well-filled exchequer -- "resistance money", as our French brethren expressively call it. The entire position of things now changed. For the capitalist it became a risky thing to indulge in a reduction of wages or an increase of working hours.
Hence the violent outbursts of the capitalist class of those times against Trades Unions. That class had always considered its long-established practice of grinding down the working class as a vested right and lawful privilege. That was now to be put a stop to. No wonder they cried out lustily and held themselves at least as much injured in their rights and property as Irish landlords do nowadays. 
Sixty years' experience of struggle have brought them round to some extent. Trades Unions have now become acknowledged institutions, and their action as one of the regulators of wages is recognised quite as much as the action of the Factories and Workshops Acts as regulators of the hours of work. Nay, the cotton masters in Lancashire have lately even taken a leaf out of the workpeople's book, and now know how to organise a strike, when it suits them, as well or better than any Trades Union.
Thus it is through the action of Trades Unions that the law of wages is enforced as against the employers, and that the workpeople of any well-organised trade are enabled to obtain, at least approximately, the full value of the working power which they hire to their employer; and that, with the help of State laws, the hours of labour are made at least not to exceed too much that maximum length beyond which the working power is prematurely exhausted. This, however, is the utmost Trades Unions, as at present organised, can hope to obtain, and that by constant struggle only, by an immense waste of strength and money; and then the fluctuations of trade, once every ten years at least, break down for the moment what has been conquered, and the fight has to be fought over again. It is a vicious circle from which there is no issue. The working class remains what it was, and what our Chartist forefathers were not afraid to call it, a class of wages slaves. Is this to be the final result of all this labour, self-sacrifice, and suffering? Is this to remain for ever the highest aim of British workmen? Or is the working class of this country at last to attempt breaking through this vicious circle, and to find an issue out of it in a movement for the ABOLITION OF THE WAGES SYSTEM ALTOGETHER?
Next week we shall examine the part played by Trades Unions as organisers of the working class.
by FREDERICK ENGELS
Written: May 20, 1881 Published: No. 5, June 4, 1881, as a leading article Reproduced from the newspaper Transcribed: [email protected], Labor Day 1996
So far we have considered the functions of Trades Unions as far only as they contribute to the regulation of the rate of wages and ensure to the labourer, in his struggle against capital, at least some means of resistance. But that aspect does not exhaust our subject.
The struggle of the labourer against capital, we said. That struggle does exist, whatever the apologists of capital may say to the contrary. It will exist so long as a reduction of wages remains the safest and readiest means of raising profits; nay, so long as the wages system itself shall exist. The very existence of Trades Unions is proof sufficient of the fact; if they are not made to fight against the encroachments of capital what are they made for? There is no use in mincing matters. No milksop words can hide the ugly fact that present society is mainly divided into two great antagonistic classes -- into capitalists, the owners of all the means for the employment of labour, on one side; and working men, the owners of nothing but their own working power, on the other. The produce of the labour of the latter class has to be divided between both classes, and it is this division about which the struggle is constantly going on. Each class tries to get as large a share as possible; and it is the most curious aspect of this struggle that the working class, while fighting to obtain a share only of its own produce, is often enough accused of actually robbing the capitalist!
But a struggle between two great classes of society necessarily becomes a political struggle. So did the long battle between the middle or capitalist class and the landed aristocracy; so also does the fight between the working class and these same capitalists. In every struggle of class against class, the next end fought for is political power; the ruling class defends its political supremacy, that is to say its safe majority in the Legislature; the inferior class fights for, first a share, then the whole of that power, in order to become enabled to change existing laws in conformity with their own interests and requirements. Thus the working class of Great Britain for years fought ardently and even violently for the People's Charter,  which was to give it that political power; it was defeated, but the struggle had made such an impression upon the victorious middle class that this class, since then, was only too glad to buy a prolonged armistice at the price of ever-repeated concessions to the working people.
Now, in a political struggle of class against class, organisation is the most important weapon. And in the same measure as the merely political or Chartist Organisation fell to pieces, in the same measure the Trades Unions Organisation grew stronger and stronger, until at present it has reached a degree of strength unequalled by any working-class organisation abroad. A few large Trades Unions, comprising between one and two millions o£ working men, and backed by the smaller or local Unions, represent a power which has to be taken into account by any Government of the ruling class, be it Whig or Tory.
According to the traditions of their origin and development in this country, these powerful organisations have hitherto limited themselves almost strictly to their function of sharing in the regulation of wages and working hours, and of enforcing the repeal of laws openly hostile to the workmen. As stated before. they have done so with quite as much effect as they had a right to expect. But they have attained more than that -- the ruling class, which knows their strength better than they themselves do, has volunteered to them concessions beyond that. Disraeli's Household Suffrage  gave the vote to at least the greater portion of the organised working class. Would he have proposed it unless he supposed that these new voters would show a will of their own -- would cease to be led by middle-class Liberal politicians? Would he have been able to carry it if the working people, in the management of their colossal Trade Societies, had not proved themselves fit for administrative and political work?
That very measure opened out a new prospect to the working class. It gave them the majority in London and in all manufacturing towns, and thus enabled them to enter into the struggle against capital with new weapons, by sending men of their own class to Parliament. And here, we are sorry to say, the Trades Unions forgot their duty as the advanced guard of the working class. The new weapon has been in their hands for more than ten years, but they scarcely ever unsheathed it. They ought not to forget that they cannot continue to hold the position they now occupy unless they really march in the van of the working class. It is not in the nature of things that the working class of England should possess the power of sending forty or fifty working men to Parliament and yet be satisfied for ever to be represented by capitalists or their clerks, such as lawyers, editors, etc.
More than this, there are plenty of symptoms that the working class of this country is awakening to the consciousness that it has for some time been moving in the wrong groove ; that the present movements for higher wages and shorter hours exclusively, keep it in a vicious circle out of which there is no issue; that it is not the lowness of wages which forms the fundamental evil, but the wages system itself. This knowledge once generally spread amongst the working class, the position of Trades Unions must change considerably. They will no longer enjoy the privilege of being the only organisations of the working class. At the side of, or above, the Unions of special trades there must spring up a general Union, a political organisation of the working class as a whole.
Thus there are two points which the organised Trades would do well to consider, firstly, that the time is rapidly approaching when the working class of this country will claim, with a voice not to be mistaken, its full share of representation in Parliament. Secondly, that the time also is rapidly approaching when the working class will have understood that the struggle for high wages and short hours, and the whole action of Trades Unions as now carried on, is not an end in itself, but a means, a very necessary and effective means' but only one of several means towards a higher end: the abolition of the wages system altogether.
For the full representation of labour in Parliament, as well as for the preparation of the abolition of the wages system organisations will become necessary, not of separate Trades, but of the working class as a body. And the sooner this is done the better. There is no power in the world which could for a day resist the British working class organised as a body.
NOTES From the MECW
 The Poor Law adopted in England in 1834 provided for only one form of relief for the able-bodied poor workhouses with a prison-like regime in which the workers were engaged in unproductive, monotonous and exhausting labour. The people called the workhouses "Bastilles for the poor".
 The reference is to the Vienna Congress of European monarchs and their ministers (September 1814 to June 9, 1815), which set up a system of all-European treaties after the wars of the European powers against Napoleonic France.
 Engels is referring to the landlords' discontent with the Land Bill passed by the Gladstone government on August 22, 1881 for the purpose of distracting the Irish peasants from the revolutionary struggle. The Bill restricted the landlords' right to evict tenants from their plots if they paid the rent in time; the rent was fixed for 15 years in advance. Despite the fact that the 1881 Law gave the landlords a chance to sell their lands to the state at a profit, and that the fixed rent remained very high indeed, the English landowners still opposed the Law trying to preserve their unlimited rule in Ireland. Despite the Law, illegal evictions from the land continued, which provoked the resistance of the Irish tenants.
 The People's Charter, which contained the demands of the Chartists, was published in the form of a Parliamentary Bill on May 8, 1838. It contained six points: universal suffrage (for men of 21 and over), annual Parliaments, vote by ballot, equal electoral districts, abolition of the property qualification for MPs and payment of MPs. Petitions urging the adoption of the People's Charter were turned down by Parliament in 1839, 1842 and 1848.
 The reference is to the second Reform Bill approved by Parliament on August 15, 1867 under pressure from the mass working-class movement and direct participation in it of the General Council of the First International. Under the new law, the property qualification for the voters was lowered, and their number doubled, suffrage was granted also to part of skilled workers. The bulk of the working population, however, was still deprived of the right to vote.
 Starting from the late 1870s, the British working-class movement gradually freed itself from the influence of the Liberal Party.
The more advanced section of the workers took part in the activities of radical organisations and clubs, and campaigned for Irish self-determination. In 1879 the Midland Social-Democratic Association was set up in Birmingham, and in 1881 the Labour Emancipation League in London. Of great importance was the Democratic Federation founded in London in June 1881 and in 1884 transformed into the Social-Democratic Federation, which openly recognised Marxist principles.