Solving the Labour Problem at Imperial Oil: Welfare Capitalism in the Canadian Petroleum Industry, 1919-1929

Abstract

Facing industrial unrest in each of its Canadian petroleum refineries, the Imperial Oil Company embarked on a wide-ranging industrial-relations initiative in 1919. Patterned after Mackenzie King's Rockefeller Plan, the logic was clear: joint worker-management councils would alleviate shop-floor discontent; a package of welfare benefits would reduce absenteeism and turnover; and a share-purchase plan would enhance worker loyalty to the Company. Where similar attempts at corporate welfarism in Canada generally failed, Imperial Oil enjoyed a union free status until 1946, and freedom from work stoppages until the early 1950s. What made it unique in this regard was its willingness and capacity to buy labour harmony; and in an era hostile to organized labour, its workers succeeded in extracting important monetary concessions as the price of their loyalty. Imperial Oil thus offers a cogent example of the conditions necessary for King's variant of welfare capitalism to flourish. Resume Faisant face a l'agitation industrielle dans chacune de ses raffineries de petrole canadiennes, la Compagnie Imperial Oil s'est engagee dans une initiative variee de relations industrielles en 1919. Modelee sur le «plan Rockefeller» de Mackenzie King, la logique etait claire: des conseils mixtes de patronat et de travailleurs diminueraient le mecontentement parmi les ouvriers; un contrat global d'avantages sociaux reduirait l'absenteisme et le renouvellement de personnel; et un plan pour acheter des actions ameliorerait la loyaute des ouvriers envers la compagnie. Alors que des essais similaires d'implanter politiques sociales de l'intreprise (corporate welfarism) ont echoues generalement au Canada, Imperial Oil a jouit d'une situation sans syndicat jusqu'a 1946 et sans arrets du travail jusqu'au debut des annees 50s. Ce qui l'a rendu unique a cet egard ce sont son empressement et son aptitude a acheter l'harmonie au travail; et a une epoque hostile a la main-d'oeuvre syndiquee, ses travailleurs ont reussi a arracher des concessions monetaires importantes comme prix de leur loyaute. De cette facon, Imperial Oil offre un exemple pertinent des conditions necessaires sous lesquelles la variante du «capitalisme de l'assistance social» (NdeT) de King a prospere.

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