As part of their effort to militarise the German economy, Hindenburg and Ludendorff created the Supreme War Office, headed by General Groener. Groener’s responsibilities are broad, extending beyond the production of military supplies to encompass food and industrial production generally.
Part of Groener’s brief is to minimise industrial unrest in Germany. Groener’s policy in this regard is relatively subtle, attempting to conciliate unions while also being willing to threaten repression if they step out of line. Nevertheless, this summer has seen many strikes in Germany, as workers attempt to protect their living standards from erosion by inflation.
These strikes unnerve Hindenburg and Ludendorff who fear that Groener’s conciliatory policy has emboldened the unions. They also heed the complaints of industrialist that Groener’s work has been affecting their profits. So now Groener is dismissed as head of the Supreme War Office; he returns to the army to take up an operational command.
Ludendorff believes that industrial unrest is the result not of workers trying to defend their interests but of agitation by socialists and foreign spies. He hopes that harsh measures will stamp out this nonsense.
Wilhelm Groener (Wikipedia)
Paul von Hindenburg and Erich Ludendorff (Wikipedia)