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While the majority of Socialists in the game clearly do tend towards planned economics rather than Libertarian Socialism, the latter DO exist in real life- and policies such as Gated Communities already displease them: so they're clearly not JUST about government benefits.
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I don't agree with the argument that socialist are automatically "statist" in this game. Socialist can strategically agree with reforms and concessions to the working class even if they don't view it as the end goal. However, by modding the game properly, you can turn socialist into real socialist. Simply add an increase to socialist membership and happiness modifiers while keeping the trade unionist modifiers.
But I still can't tell if the socialists in the game, as you said, are like Left communists, or like the Bernie Sander's brand of Democratic "Socialism"*. Or hell, they might be what the USSR (Leninism and reformist communism) and other bloc states are.
*I would call it more like radical liberalism, but ok,
This is more in-line with industrial democracy or syndicalism. As such, good mod.