But NKVD was going to bolt, due to you guys not listening AT ALL to their leader, and the PCP was falling apart due to decolonization and the rise of Avatar Federal. It was rather likely that, in 1938, the government would have fallen.
I don't understand why you would think Syndicalism is an radical idea. They're not commies, just pseudo-anarchists wanting to extend the democratic system to apply to economics. Their whole gimmick was merely letting workers control the economy, it isn't really that hard to just surrender at least some power to the workers. And really, the local government posts are going to be democratically elected; nothing ever prohibits rich CEOes from actually getting elected. They just have to get the support of the people. If capitalism is so awesome, then the people would vote for capitalists to run the syndicates.
What would a "moderate" left-wing party do anyway in this game? Raise the minimum wage? Allow for more powerful unions? It doesn't really seem to do anything more than be a stop-gap measure to calm the passions of the working class (who, by the way, overthrew Britain and France), and it would have likely been boring (why else did you get the Coalition of Glory?), so why not just go the whole hog? And, once the Syndicalists actually turn Germany into a Syndie utopia, we finally expose revanchist France and revanchist Soviet Union for the lies they are.
Of course, I could have likely made compromise more likely if I was appointed as some sort of ambassador to represent the Left, but meh.