The purpose of this paper is to show the character of the Webbs' theory of trade unionism through examining its relationships with their social reform scheme.
The scheme is based on Sidney's three essays, which make it clear that the mechanism of ‘industrial progress’ is worked by competition among firms for greater ‘rent’ of ‘ability’ and of ‘capital’.
In Industrial Democracy, the Webbs argue that this mechanism should be accelerated by the minimum labour conditions which the trade union regulates, and propose the supplement of this regulation by a legislated ‘national minimum’. This proposal is founded in their recognition, in The History of Trade Unionism, that trade unionism has already changed from a negative political action to a positive one.
Before studying trade unionism, they had already analysed the consumer's cooperative movement and the municipal government and realised that trade unionism was profitable for the improvement of consumers' or citizens' livelihoods. Thus, the theory of trade unionism was introduced into their social reform scheme, and the scheme was reinforced by the theory.
The Webbs' theory of trade unionism is a part of their social reform scheme for improving the nation's livelihood.