7 IBM: An American Corporation in Germany

In April 1950, IBM's longtime chief executive Thomas J. Watson Sr. had a heated phone conference with his company's main executive in Europe, Harrison Chauncey, about a newly formed works council in the company's West German subsidiary. While Chauncey responded matter of factly, Watson was indignant. He demanded that management and employees in Germany get “on a basis like before,” and abolish the works council, while Chauncey merely tried “to get the agitators out of the Works Council.” Watson wanted it to be made clear that IBM was “not going to back Communism under any conditions”—revealing what he thought of workers committees. Chauncey, closer to the European situation, said that he did not believe IBM “had many Communists in the organization” and pointed out that members of the works council were by law protected from being released, which made Watson ask, “What's the use of going on with the business?”
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