On the occasion of its 150th anniversary, Solvay invites you to discover its history through twelve thematic pieces.

Donnerstag, 13.06.2013 11:20 von GlobeNewswire

This month, discover the social innovations that Solvay has been putting in place since the 19th century.

Chronicle # 6 - From paternalism to social responsibility

In the 1880s, with Solvay firmly on the path to success, its founders focused their attention on managing a large workforce. Their humanistic ideals inspired a number of innovations that turned the enterprise into a laboratory of social capitalism. Over several generations the Group continued to consolidate this head start -- which even today helps underpin its social responsibility practices.

In the 19th century, the working classes lacked widespread access to medical care. Driven by both economic and philanthropic interests, several progressive bosses of the second industrial revolution set up 'social works' to support workers and to get them acquainted with healthy life styles, for the greater benefit of production.

  

  

Social innovation, a necessity

In the mid-19th century, with industrialization in full swing, the primary concern of Solvay's managers was to train and maintain its workforce. At the time most of Solvay's plants were in rural areas, away from the major employment basins. Most workers had therefore to be trained on the job and housed on site. And once a certain worker elite had been formed, it was essential to ensure their loyalty.  For the founders, paternalism was the answer to this problem. This management system was based on the belief it was the duty of an entrepreneur to take care of his workers while controlling them at the same time, like a father would his children. Wages were backed by benefits in kind: free or low-rental housing, social security, educational infrastructure, health and leisure...

Social security, paid holidays: 50 years ahead of the welfare state

In the 1880s Solvay introduced a comprehensive system of internal social security. The Group picked up its employees' medical and pharmaceutical expenses and paid a half salary for the duration of their illness. At each site, provident funds (pension, health and disability, mutual aid) helped bind workers to their jobs.

In 1897, the Group came up with a new idea, introducing the eight-hour day. Until then, production workers worked twelve-hour shifts, pacing their work rhythm with that of the machine. The eight-hour shift originated at the Russian factory at Donets. Without informing the head office, its director Sigismund Toeplitz tested the system by working three shifts of eight hours, proving that the increased productivity offset the higher wage costs. By 1907 the measure was adopted across the entire Group.

In 1913, Solvay celebrated its fiftieth anniversary by introducing paid holidays for workers, who received one week's annual vacation with double pay.

A system in the service of social peace  

By anticipating advances in legislation and numbering itself among the forerunning companies in the social arena, Solvay systematically defused any social unrest.  The quality of its policy would enable it to better withstand the pressures of the extreme ideologies of the inter-war years and in particular to limit the spread of revolutionary ideas. The social programs at Lubimoff Solvay & Cie in Bolshevik Russia meant that Marxist theories hardly had an effect on the plant's workers - the "Solvayski". "You are our worst enemies!" one of the agitators reproached the plant's director.

Welfare state and new responsibilities

After 1945, the growing influence of the welfare state is increasingly replacing private initiatives. Also changes in capitalism and in mentality, successive crises and globalization left their mark on the corporation's social policy. Solvay incorporated these changes while staying true to its principles of responsibility: for example, employees retained their many benefits (enhanced health and pension insurance, health care, scholarships for children, pension funds, etc.). Right up to the 1970s, maintaining employment remained a top priority. That meant that, despite its poor location in terms of raw material supply, the redundant soda ash plant at Sarralbe was converted into a polyolefins production unit, maintaining employment at the site.

Finding a new balance, the challenge of '80s and '90s

In 1981, Solvay suffered its first financial loss ever. This traumatic episode, confirmed by the crisis of the early 90s, sounded the death knell of the old paternalism. Faced with the need to adapt to a changing world, senior management accepted the obvious: in order for the Group to survive, economic rationality would have to take precedence over other considerations. From 1993 onwards, a number of sites were shut down or restructured and automation increased. These breaks with tradition were a source of bitterness for both workers and senior management: former CEO Daniel Janssen and Solvay descendant from the 5^th generation, admitted that closing the historic soda plant at Couillet was 'the most painful decision of his career'. True to its tradition, Solvay undertook this transition as gently as possible, preferring solutions like early retirement, transfers, retraining, and outplacement to drastic cost-cutting. As such, the number of employees decreased 'naturally', from 49,000 in 1980 to 32,000 in 2000.

Priority to social dialogue

In 1996, continuing the dialogue established with its employees, Solvay established a European Works Council. The commitment was reinforced in 2008 with the signing of a Charter for Sustainable Development and Corporate Social Responsibility. The recent integration of Rhodia enriches Group practices in this area. The Group's new sustainable development policy, launched under the name 'Solvay Way', incorporates the best practices of both Solvay and Rhodia. In particular the Group commits to its employees in the areas of safety and health at work, professional development, fair treatment, and respect of rights. The goal is to pursue a rich and balanced social dialogue with employee representatives, as part of a future global responsibility accord.

 

 

Company town ing the Deutsche Solvay Werke soda ash plant at Bernburg in Germany.

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The ideal garden city à la Solvay

The company towns built by Solvay in the 19th and 20th centuries were inspired by the ideal cities of the Utopians. Everywhere the same logic applied. The site's architecture embodied the image of the company. The size and location of the individual dwelling units reflected their occupants' rank.  Applying the hygiene theories then in vogue, Solvay provided its cities with drainage and water supply, as well as shower-baths and public gas lighting. The provision of allotments and vegetable gardens next to the workers' houses enabled households to supplement their food supplies. Schools, theatres, hospitals, sports clubs, places of worship and cooperative stores supplied by the adjacent farms completed the picture. Wherever its production units were installed, Solvay acted as a town planner and modelled the surrounding area.

Louis Solvay

Social policy across the Group

In 1933, at the initiative of Louis Solvay, son of founder Alfred, the management of social issues was centralized in a new entity called the "Maison d'Ernest Solvay". Conceived as a think tank, the Maison was aimed at adapting the social work of the Solvay brothers in times of social and moral crisis. With its own team, the Maison consolidated and harmonized the group's social initiatives and oversaw its many philanthropic activities. During those years, Solvay opened profit participation to employees.  With Louis Solvay's departure in 1947, the Maison d'Ernest Solvay was reabsorbed into central management.

Next story: the Solvay "people"

Curious about our 150th anniversary?

Have a look at www.solvay150.com

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