EH.Net Abstracts in Economic History

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2007 EH.Net
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Name:  Shakila Yacob
Email:  shakila at um.edu.my
Institution:  University of Malaya

Co-author: none

Title:  Model of Welfare Capitalism? The United States Rubber Company
in Southeast Asia, 1910-1942

Internet Address of abstracted work: not available

By mail:
Department of History, Faculty of Arts & Social Sciences
University of Malaya
50603 Kuala Lumpur
Malaysia

Language:  English

Abstract:
Welfare capitalism, the management ethos adopted by American business 
leaders in the early twentieth century, emphasizes the role of 
business rather than trade unions or government in taking care of its 
workers. This article focuses on the reasons why the United States 
Rubber Company (USRC), one of the four largest U.S. rubber 
manufacturers, promoted welfare capitalism at its rubber plantations 
on the east coast of Sumatra and Malaya between 1910 and 1942. In 
addition, this study assesses the development of USRC's system of 
welfare in the areas of housing, profit sharing, pension plans, 
health care, and recreation. This article argues that USRC's 
intention was not to forestall unionization (the intention of 
U.S.-based companies in adopting welfare capitalism), as union 
formation in Southeast Asia during that period was very unlikely, but 
to overcome labor shortages and high turnover rates and to ensure 
labor stability. With reduced labor costs, the availability of 
financial resources allowed for technical innovations and R & D, 
which ultimately would lead to increased productivity.

Bibliography: Yacob, Shakila. "Model of Welfare Capitalism? The 
United States Rubber Company in Southeast Asia, 1910-1942." 
Enterprise and Society 2007.

Subject:  B
Geographical Area:  2
Country/Region:  Southeast Asia
Time Period:  8

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