Association Management in times of turbulent change- The 1940s-50s

Association Management in times of turbulent change

Welcome to the blog celebrating the 60th anniversary of Lejeune. In the lead-up to the anniversary conference on Thursday, October 31, we will present a series of blog posts over the coming months, highlighting the six decades of Lejeune Association Management. For each decade, we will discuss the context: world history, economic, social, and administrative developments, and how our company has continually evolved in response.

Part 1 – The 1940s-50s: the previous history

Clearing debris, reconstruction, and economic development in individual countries.

Immediately after regaining their autonomy, the affected European countries began rebuilding cities, infrastructure, and economies that had been severely damaged during the war years. From 1948 to 1952, like other European countries, the Netherlands also received aid from the Marshall Plan, an American initiative aimed at the reconstruction of post-war Europe. This assistance helped restore the Dutch economy, was allocated to 'priority sectors' (industry, infrastructure, agriculture, and trade), and was managed by the Dutch government, particularly through the Ministry of Economic Affairs.

Image generated with Dall-E.

Direct government intervention

Remarkably, considering the current context but entirely understandable given the situation at the time, the Dutch government played a leading role in economic activity. Furthermore, collective organizations were assigned coordinating and executive roles.

Until 1952, many scarce products were still rationed. However, the government also played a guiding role in production. An example of this era can be found in the trilogy “100 Years of Association in Packaging,” published in 2006 to celebrate the centenary of Kartoflex (the employers' association for the carton and flexible packaging industry in the Netherlands). The "Vakgroep Cartonnage Industrie" (board packaging Industry Group), established by the occupier, was taken over by the government after the war. The group was tasked with revitalizing the board packaging industry in the post-war period. In 1947, under the auspices of the Directorate General for Prices (part of the Ministry of Economic Affairs) and the College of National Mediators (which oversaw wage policies), detailed sector regulations were laid down in a basic regulation. These included how prices in the sector should be set, how delivery and payment conditions were shaped, how cost price calculation should be conducted, what the wage scheme was for the industry, and what surcharge for profit, interest, and turnover tax should be applied. It also stated: “The Directorate General of Prices may allow deviations from the Price Regulation in special cases.”

From a contemporary competition law perspective, it is almost unimaginable how the government orchestrated extensive coordination of market behavior from above. However, the legacy of a devastating war necessitated unorthodox measures. By delegating coordinating and executive powers to the sector level, the legitimacy of (public-private) collective organizations was reaffirmed.

Self-regulation: The PBOs

The Dutch Law on Public Law Business Organizations (PBO) also dates from this post-war period. A PBO was an association of producers or entrepreneurs established by law in Dutch business law. There was a distinction between Product Boards (per product chain) and Trade Boards (per industry sector). PBOs, also remnants from the occupier's era, had mandatory membership for companies active in the sector, had the authority to impose mandatory levies and binding regulations, but also served as interest groups and advisory bodies for the government. By the late 1950s, nearly fifty business bodies had been established, most in agricultural and craft sectors. In other sectors, public law business organizations were not successful. Thus, the top-down imposed ‘self-regulation’ of the business sector was only partially achieved. It was not until 2015 that all product and trade boards were abolished by law. (Source: Wikipedia)

Restoring social stability

The post-war socio-economic model combined social stability with economic prosperity. Along the familiar pillars based on religion or ideology (Catholic, Protestant, socialist, liberal), industry organisations worked with governments and trade unions to prevent industrial action and improve social services, industry organizations collaborated with governments and trade unions to prevent labor conflicts and improve social services. The aforementioned anniversary edition of Kartoflex (granted the title "Royal" at that time) recounts the first collective labor agreement (cao') approved by the College of National Mediators after reaching an agreement with the trade unions, which came into effect in 1950. Although the law on collective labor agreements had been introduced in 1927, caos only took off significantly after the war.

From reconstruction to growth and restoring trade relations

Industry organizations played a crucial role in the late 1940s and early 1950s in coordinating efforts to rebuild the economy and revitalize the industry. However, this began to change during the 1950s. This period was marked by strong growth in the industrial sector, with many companies benefiting from the demand for goods and services for reconstruction.

With many affected countries regaining some stability, attention turned to promoting international trade and restoring economic ties between European countries post-war. Inspired by pioneers like Robert Schuman, Jean Monnet, and Paul-Henri Spaak, the first steps towards European integration were taken, leading to the establishment of institutions like the European Coal and Steel Community (ECSC). In 1957, the Treaties of Rome established the European Economic Community and the European Atomic Energy Community (which would merge with other organizations ten years later to form the European Communities). Industry organizations collaborated with governments to reduce trade barriers and strengthen trade relations. Like in the Netherlands, many sectors had also reorganized nationally, but international contact was minimal. From the late 1950s, the packagin

g industry took the first steps towards establishing structured international contacts.

A personal story

Against this historical backdrop, Mans Lejeune grew up in 's Hertogenbosch as the eldest of two brothers. As an 8-year-old boy, he witnessed the beginning of the war up close, living on Willem van Oranjelaan, directly next to the railway where many Jewish citizens were transported from Camp Vught to their tragic fate during the war. His future wife also moved to 'De Willem' during the war. She, along with her six siblings, experienced intense moments in the penultimate year of the war when their family home, above their Wood and Building Materials business elsewhere in the city, ended up in the crossfire between the Allies and the occupier. The business caught fire with the family in the basement. They fled in groups of two, waving a white flag.

After his secondary education, Mans moved to Amsterdam around 1950 to study economics. After his first year, he transferred to Tilburg University and immersed himself in the vibrant student life there. During carnival at home in ‘Oeteldonk’ (the nickname of his home city during the carnival period), he fell in love with his neighbour, Tonny Appel. She was then training as a nurse at Vronestein (near The Hague) and later made a significant contribution as an occupational nurse at the Heineken brewery in her native city, as an early occupational health and safety officer, drastically reducing the number of workplace accidents.

After graduating, Mans joined Pieter Blaisse, a civil servant, politician of the Catholic Peoples Part (KVP), and administrator, as a personal assistant. Blaisse focused on foreign trade and international cooperation throughout his career. He represented the Netherlands at the Common Assembly of the European Coal and Steel Community (1952 - 1958) and was appointed to the European Parliament by the States General (1958 - 1967). He served as vice-president of the European Parliament from 1961 to 1967 and chaired the parliamentary committee for the Internal Market. As a committed European, Mans thrived in Blaisse's office.

Mans and Tonny settled in The Hague as a newlywed couple in 1960.

(To be continued)

Jules Lejeune