I think this was a criticism of communism. Labour was just one of the factors of production. Not that the church was against communalism, how could it be with religious orders living in community?
All economic activity should be for the common good. This is stressed time and again in Catholic Social Teaching.
Benedict XVI has said that we have a duty to create wealth because without it we cannot eradicate poverty. This means that it is important to respect the dignity of workers (working conditions, wages etc) and to share our wealth. I think I quoted him before somewhere but forgive the repetition, St Ambrose said: “It is not from your own possessions that you are bestowing alms on the
poor, you are restoring to them what is theirs by right. For what was given
to everyone for the use of all, you have taken for your exclusive use. The
earth belongs not to the rich, but to everyone. Thus, far from giving
lavishly, you are paying part of your debt.”
