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SOUTHWEST MISSOURI STATE
COLLEGE LIBRARY

y. S. DEPOSITORY COPY

DR DIGESTS
ON COUNTRIES
j
1

IN EUROPE
UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Arthur M. Ross, Commissioner

Bulletin I

. 1497
1965

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Bulletin No. 1497
1965

LABOR DIGESTS
ON COUNTRIES

IN EUROPE

UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Arthur M. Ross, Commissioner
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 2 0 4 0 2 - Price 60 cents

PREFACE
The digests on labor conditions in 29 European countries
which make up this bulletin were prepared in the spring of
1965 by the Division of Foreign Labor Conditions of the Bureau
of Labor Statistics for inclusion in the Directory of Labor
Organizations--Europe.
The labor organizations section of
each digest was contributed by the Division of International
Trade Union Organizations of the Bureau of International Labor
Affairs•
Source material used in preparing the digests
included
reports of U.S. Embassies and official publications of the in
dividual countries.
The digests herein appear in the following order:

Albania
Austria
Belgium
Bulgaria
Cyprus
Czechoslovakia
Denmark
F inland
France
Germany, East
Germany, Federal Republic
Greece
Hungary
Iceland
Ireland

Italy
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Rumania
Spain
Sweden
Switzerland
U.S.S.R.
United Kingdom
Yugoslavia

iii

LABOR DIGEST
No. 64
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABO R ST A TIST IC S

1965

LABOR CONDITIONS IN ALBANIA
Albania, situated in southeast Europe between Yugoslavia and Greece, had at
the beginning of 1965 a population of about 1.9 million and an area of 11,097
square miles.
Factors Affecting Labor
Political. Officially called the People*s Republic of Albania, the
country has been ruled by the Communist-controlled Albanian Labor Party since
December 1945, Enver Hoxha has been the Party head since 1941. Albania nom
inally has a representative form of government, based on the Constitution of
1950. The People*s Assembly, declared to be the supreme organ of state power,
is elected from a single list of candidates. Although Albania is a signatory
of the 1955 Soviet bloc*s Warsaw Pact (a 20-year mutual defense treaty)
and
is formally a member of the bloc*s Council of Mutual Economic Assistance, it
has not participated in meetings of these two organizations since 1961 be
cause it sided with Red China in the latter*s doctrinal conflicts with Moscow.
Economic. This economically underdeveloped country, about 75 percent
of whose population is engaged in agriculture, has a socialized planned econ
omy, patterned after the Soviet model.
In 1965, 82 percent of all agricul
tural production was in the socialized sector, and 99.5 percent of all indus
trial production. The main agricultural products are livestock, wheat, corn,
tobacco, fruit, and fodder. The main industries are foodstuffs, textiles,
timber, and petroleum.
The Soviet Union cut off its economic aid to Albania
in 1960-61; thereafter, Red China granted it some loans. Annual national in
come per capita is about US$200.
Social. The population is predominantly Albanian. The principal re
ligion is Moslem, which is professed by about half the population; two other
large religious groups are the Orthodox Christians (over 10 percent of the

population)
and the Roman Catholics
(over 5 percent). Eight years of free
primary education are compulsory for children between the ages of 7 and 16.
Manpower and Employment
Employment and Unemployment. In 1960, about 45 percent (730,762)
of
the population were economically active. Of these, about 75 percent were in
agriculture and the remaining 25 percent in industry and services.
In 1960,
there were 234,075 wage and salary earners, of about 32 percent of the labor
force. About 33 percent (78,329) were in industry; 17 percent (40,298) in
agriculture; 15 percent (34,369) in construction; 7 percent (16,606) in trans
portation and communication; 7 percent (15,747) in trade; 7 percent (17,458)
in education; and the remaining 14 percent (31,268) in the other sectors of
the economy. Every local government unit has a labor section where all local
persons seeking work must register; no enterprise may hire a worker without
the authorization of this labor section.
Productivity, Skills, and Training. The Government has taken measures
providing for the education and training of skilled workers.
In 1962, over
29,000 persons were receiving training in trade, secondary technical, and
higher schools:
12,400 were in trade schools, 12,400 in secondary technical
schools, and 4,600 in higher institutions.
Labor productivity in industry
was claimed to have risen 70.5 percent in the 7-year period 1955-62 and 4.4
percent in 1964.
Labor Standards
Labor Legislation. The Constitution of
1950 and the LaboriCode of
April 3, 1956, constitute the basic labor legislation. The Constitution de
clares work to be the obligation of every able-bodied citizen and guarantees
him the right to work with pay (according to the quantity and quality of the
work done), to rest days, to pay for time on annual leave, to health protec
tion, and to educational, cultural, and social insurance benefits. The Labor
Code prescribes hours of work and annual leave; authorizes work quotas and
piece rates; provides for social insurance, labor protection, labor disci
pline (to discourage absenteeism and negligence), and monetary penalties for
damage to factory property; establishes the procedure for settling labor dis
putes; and prescribes the functions of the trade unions.
Special laws regu
late short-term, seasonal, and private workers.
Administration and Practice. Various Government agencies, the manage
ments of enterprises, and the Central Council of Trade Unions (Bashkimet Profesionale te Shqiperisne--BPSh)
are responsible for implementing labor leg
islation.
The trade unions administer social insurance provisions.
Labor
inspectors are appointed by the BPSh to check on the enforcement of labor
legislation, including safety regulations.
Wages, Hours, Prices, and Level of Living
The Government controls wage rates and prices.
The basic system of
wage payment
is for piecework, and the Ministries fix workers'
production
quotas and incentive premiums. In 1962, the average monthly earnings of wage

and salary earners were 5,000 leks (US$100), but high prices made the living
standard low (for example, to buy a pair of m e n ’s ordinary leather shoes re
quired about a week's work). After the Soviet Union cut off its aid in 1961,
the level of living noticeably declined; whereas there were seven price re
ductions between 1956 and 1961, in the period 1961-64 there were none.
Most workers have an 8-hour workday and a 48-hour workweek. There are
8 legal holidays in the year. Overtime work, at time-and-a-half pay, is per
mitted only under circumstances specified in the Labor Code, and for not more
than 4 hours in 2 successive days, 8 hours a week, and 180 hours a year.
Every worker is entitled to 2 weeks (12 working days) of annual leave with
pay after 11 months of continuous employment; additional leave of 1 to 6 weeks
is granted to certain specified categories of wage and Salary earners.
Employer Organizations
There is no national organization of enterprise managers in Albania.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of Government-Party policy with regard to the
working population. The BPSh claimed 153,000 members in 1962, or about 65
percent of all wage and salary earners. The BPSh is an affiliate of the World
Federation of Trade Unions.
Several professional associations (journalists,
jurists, and writers) may also have some official ties with the BPSh.
Labor-Management Relations
Collective bargaining in the Western sense does not exist in Albania,
as the Government fixes wage rates, hours of work, and working conditions.
The collective agreements which are concluded between trade union committees
in enterprises and the managements of enterprises have the primary purpose
of increasing production and the secondary one of improving the workers' wel
fare. By unwritten law, the trade unions are not permitted to call strikes.
Disputes over contract interpretation, wage payments, dismissals, transfers,
and other matters specified by the Labor Code may be submitted to the concil
iation boards set up in most enterprises. Appeals may be made to regional
trade union bodies and to the BPSh. An appeal may also be made to the public
court when a conciliation board cannot arrive at a unanimous decision or is
overruled by a higher trade union body, when there is no conciliation board
in the enterprise, and in certain other specified cases.

LABOR DIGEST
No. 65
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN AUSTRIA
Austria, situated in south central Europe, has an area of 32,376 square miles
and had a population estimated at 7.2 million in 1964.
Factors Affecting Labor
Political. Austria is a Federal Republic. Its Constitution of 1920,
reinstituted in 1945, provides for a bicameral legislature with a lower House
(Nationalrat), composed of 165 deputies elected by popular ballot for 4-year
terms, and an upper House (Bundersrat) , composed of 54 members elected by the
legislatures of the nine constituent Provinces. The President, elected by
popular vote for a 6-year term, acts as Chief of State; his functions are
largely representational. The Chancellor heads the executive functions of
the Government. The People1s Party and the Socialist Party, nearly equal in
strength, have governed as a coalition since 1945.
Economic. The gross national product (GNP), US$1,068 per capita in
1963, originated as follows: Manufacturing, 38 percent; trade and transpor
tation, 20 percent; agriculture, 10 percent; construction, 9 percent; public
services, 9 percent; banking and insurance, 4 percent; utilities, 3 percent;
and other services, 7 percent. Industries leading by value of output are
metals, foodstuffs, chemicals, and textiles. Nationalized plants produce
one-fourth of industrial output. Major imports include foodstuffs, fuels,
automobiles, and raw materials for textile and metal manufacturing; exports
include iron and steel, lumber, paper and pulp, and machinery. Tourism is a
major source of foreign exchange.
Socialc Austrians are homogeneous in language and religion:
95 per
cent speak German, and 89 percent are Roman Catholic. Minorities include
70,000 Slovenes and Croatians, who use their own language in schools and
courts. School attendance is compulsory for 9 years, and the adult education
system is highly developed.

Manpower and Employment
Employment and Unemployment. The labor force was 3,369,000, or 48 per
cent of the population, according to the 1961 census. Of the total, 1,440,000
(43 percent) were engaged in industry and skilled crafts, 1,163,000 (34 per
cent) in services, and 765,000 (23 percent) in agriculture. Wage and salary
earners comprised 71 percent; employers and self-employed^ 16 percent; and
unpaid family workers^13 percent of the labor force. Unemployment averaged
3.2 percent of the labor force in 1963. Manpower shortages, which occur in
manufacturing and, mainly during the summer, in construction and tourism, are
partly offset by hiring foreign workers.
Productivity, Skills, and Training. The productivity of industrial
workers increased nearly 32 percent from 1956 to 1963. In 1960, the skills
distribution of men in industry was as follows:
Skilled, 42 percent; semi
skilled, 34 percent; unskilled, 20 percent; and unclassified, 4 percent.
Of
the women workers, 14 percent were skilled, 50 percent semiskilled,
32 per
cent unskilled, and 4 percent unclassified. To become skilled, workers un
dergo training for several years under apprenticeship programs.
Labor Standards
Labor Legislation. Labor laws regulate employees1 working conditions,
protect the right of forming associations and making collective agreements,
and provide extensive social insurance coverage. Legislation provides for
(a) election of wage and salary earners1 representatives to works councils
in larger plants and (b) membership of wage and salary earners in Chambers
of Labor, as well as membership of firms and small businessmen in Chambers
of Business.
(Both chambers represent and foster the legislative, economic,
and social interests of their respective groups before public bodies.)
A
draft of a proposed comprehensive Labor Code, which aims to equalize condi
tions for wage earners and salaried employees and to reduce the workweek to
40 hours, has been under discussion since 1960.
Administration and Practice. The Ministry of Social Administration,
as the chief labor agency, operates the Employment Service, the unemployment
insurance system, and the Labor Inspection Service.
It cooperates with such
bodies as the social insurance funds, public health organizations, mediation
boards, and Chambers of Labor. The Ministry of Agriculture and Forestry im
plements certain other labor laws and supervises inspection and mediation
services in agriculture.
Wages, Hours, Prices, and Level of Living
Average gross monthly earnings,
including wage supplements,
in 1963
were 2,630 Austrian schillings
(US$101.66) for wage earners and S3,960
(US$153.07) for salaried employees, the take-home pay totaling 82 to 85 per
cent of gross earnings. Basic pay rates set by national collective agreements
are supplemented by local plant agreements and customary bonuses for Christmas,
the New Year, and family events. Payments provided by legislation include a
monthly housing allowance of S30 (US$1.16); monthly childrens allowances
ranging from S155
(US$5.99) for the first child to S265 (US$10.24) for the

fifth and each additional child; aid to mothers of three or more children of
S175 (US$6.76) monthly; and a single payment for birth and nursing aid amount
ing to SI,700 (US$65.71) for each child. The housing and children's allow
ances, originally payable monthly, are now payable 14 times a year. Austrian
sources estimate that employer contributions to compulsory insurance plans
and for other fringe benefits together average between 52 and 65 percent of
payrolls.
Legislation provides a standard 8-hour workday, 48-hour workweek; how
ever, through collective bargaining,
the average workweek has been reduced
generally to 45 hours. There are 12 paid legal holidays, and vacations with
pay of 18 to 30 days, depending on length of service and class of worker
(wage earner or salaried employee). Legislation stipulates a 25-percent pay
differential for overtime, but collective agreements generally provide for a
50-percent differential beyond 48 hours per week. The usual night-shift dif
ferential in industry varies from 10 to 30 percent.
Annual average per capita income in 1962 ranged from S13,556 (US$524)
in the agricultural Province of Burgenland to S27,267
(US$1,054) in Vienna.
Hourly wages in industry have increased 47 percent since 1956, consumer prices
only 15 percent. Food expenditures for a worker1s family averaged 38 percent
of consumer spending in 1963, compared with 21 percent in the United States.
Labor, management, and Government cooperate through the Price-Wage Commission
to control inflationary pressures by acting on applications for wage or price
increases.
Employer Organizations
Some 400,000 firms and independent businessmen have compulsory member
ship in the nine provincial Chambers of Business. The chambers, which are
subdivided into 130 trade associations for commerce, industry, and crafts,
represent the employers in collective bargaining. The chambers are financed
through initiation fees, membership dues, and a special chamber tax. Among
the voluntary management organizations, the League of Austrian Industrialists
is most influential.
Labor Organizations
Almost two-thirds of the wage and salary earners are members of the
Austrian Trade Union Federation (Osterreichischer Gewerkschaftsbund--OGB),
which reported 1,539,586 members at the end of 1964. The OGB, which encom
passes all organized labor in Austria,
is the successor to the separate po
litically oriented trade union federations which existed before the overthrow
of constitutional government in 1934. Its unions are integral parts of the
Federation created by statute in 1945. Some of the member unions are organ
ized on an industrial basis, others along craft lines.
The 0GB comprises elements from the various political parties. By in
ternal agreement, major positions within the OGB were allocated to the Social
ist Party,
the P e o p l e d Party and, initially, also to the Communist Party.
The latter lost representation after its unsuccessful uprising in 1951. Only
a very few Communists remain in responsible positions in some affiliated

unions* The strongest group within the 6GB is Socialist-oriented. Most of
the top leaders of the OGB are members of Parliament,
elected on the ticket
of one of the two main political parties.
The OGB is a member of the International Confederation of Free Trade
Unions
(ICFTU). However, at the request of its People1s Party faction,
it
has joined and pays dues to the International Federation of Christian Trade
Unions (Confederation Internationale des Syndicats Chretiens--CISC) for ap
proximately 110,000 members.
A semi-official representation is afforded labor through the Chambers
of Labor, which are accorded a status similar to that of the Chambers of Busi
ness and the Chambers of Agriculture.
The Chambers of Labor do not partici
pate in collective bargaining. Bills directly or indirectly affecting labor
must be submitted to the chambers for comment and advice. Legislation pro
vides for the establishment of works councils, elected by all wage and salary
earners in a given plant irrespective of trade union affiliation.
The mem
bers of the councils can be dismissed only for cause.
Labor-Management Relations
Collective agreements are concluded on the national or provincial lev
el and are binding on all firms in an industry. Limited in content because
of extensive labor and social security legislation, they contain minimum pro
visions usually supplemented by plant agreements.
Government mediators and
arbitrators are available for difficult bargaining situations but are infre
quently used. The 61 labor courts, which include employee and employer rep
resentatives, function under the Ministry of Justice and try suits arising
from disputes between individual employees and employers.
Strikes are not prohibited by law. The 5GB refuses financial aid in,
and may even oppose,
strikes which do not have its approval.
Since World
War II, strikes have been relatively few and short.

LABOR DIGEST
No. 66
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN BELGIUM
Belgium lies along the west coast of Europe. It has an area of 11,775 square
miles and had a population of 9.4 million in 1964.
Factors Affecting Labor
P o litical. Belgium is a constitutional monarchy. The Constitution of
1831, as amended, provides for a bicameral Parliament consisting of a Chamber
of Deputies, elected by direct popular vote of all persons 21 years of age and
over, and based on proportional representation; and a Senate, whose members
are also elected by direct popular vote. Executive authority is vested in
the Prime Minister, who is nominated by the King with the approval of Parlia
ment.
The present Government is formed by a coalition of the Socialist and
Social Christian (Catholic) parties.
The Prime Minister, Theo Lefevre, be
longs to the Social Christian Party, and the Foreign Minister, Paul-Henri
Spaak, to the Socialist Party.
Economic. In 1963, 39.2 percent of the gross national product (GNP)
of US$14 billion was derived from manufacturing
(including mining and con
struction) , 7.0 percent from agriculture, and 53.8 percent from commerce,
banking, and insurance. With the exception of coal, the country must import
all raw materials needed for its major industries--iron and steel, metal, and
textiles--as well as nearly one-third of its food supply. In 1963, per capita
GNP was US$1,490.
Social. The population is predominantly Roman Catholic. The two ma
jor ethnic groups are the numerically greater Flemings who speak Flemish, a
language related to Dutch, and the French-speaking Walloons. The Flemings
are concentrated
in the rural north and west, the Walloons in the more in
dustrialized south and east. Both Flemish and French are official languages.
Education is compulsory between the ages of 6 and 14. Illiteracy is virtu
ally nonexistent.

Manpower and Employment
Employment and Unemployment, In 1963,
the labor force totaled 3.6
million, or 39 percent of the population. Of these, 3.3 million were employed
as follows:
1,236,000 (35 percent) in manufacturing; 866,000 (24 percent)
in services; 538,000 (15 percent) in commerce, banking, and insurance; 276,000
(8 percent) in construction; 245,000 (7 percent) in transport; 230,000 (7 per
cent) in agriculture, forestry, and fishing; 102,000 (3 percent)
in mining
and quarrying; and 31,000 (1 percent) in electricity, water, gas, and sani
tary services. Wage and salary earners numbered 2,756,000 (78 percent); selfemployed, 605,000 (17 percent); and unpaid family workers, 164,000 (5 per
cent). The unemployment rate was 1.8 percent.
Productivity, Skills, and Training.
Labor productivity has advanced
appreciably in recent years. The Government offers vocational and technical
training under the public school system for students between the ages of 12
and 18, and supervises and supports training given by employers, trade unions,
and other private organizations. The National Employment Office administers
vocational training and retraining courses for the unemployed and others in
need of improving their skills.
Accelerated vocational training for adults
has increased considerably in recent years; more than 4,000 were trained in
1963, compared to 1,500 in 1961. The Ministry for Middle Classes administers
a system of apprenticeship training for artisans and others wishing to set
themselves up as operators of small or medium-sized retail establishments or
as master craftsmen in the handicraft or occupation of their choice.
Labor Standards
Labor Legislation. The Act of May 21, 1921, guarantees persons the
right to join, or refrain from joining, trade unions.
The Order of June 9,
1945, regulates the work of the private and public bodies engaged involuntary
conciliation and arbitration of labor disputes.
Various aspects of employ
ment conditions, such as hours of work, overtime, holidays, annual leave, and
dismissal procedures, are regulated by legislation.
The Occupational Safety
and Health Act of 1952, as amended, establishes industrial safety rules. So
cial legislation includes sickness, accident, maternity, unemployment, oldage, invalidity, and survivors' insurance, as well as family allowances.
Administration and Practice. The Ministry of Employment and Labor,
the principal Government agency concerned with labor matters, conducts re
search and statistical studies, enforces labor legislation,
concerns itself
with the activities of labor organizations, provides mediation services, and
supervises employment services and the social insurance system0 The Nation
al Employment Service handles placements,
subsidizes firms hiring long-term
unemployed persons, and implements training and retraining programs.
The
social insurance system is administered by the National Social Security
Office.
Wages, Hours, Prices, and Level of Living
In October 1964, average earnings per hour were 41
Belgian
(US$0.82)
in manufacturing, BF52 (US$1.04) in mining, BF44 (US$0.88)

francs
in con-

struction, BF37 (US$0.74)
in food processing, BF35 (US$0.70)
in textiles,
BF40 (US$0.80) in paper and paper products, BF44 (US$0.88) in chemical prod
ucts, BF43 (US$0.86)
in nonferrous metals, BF32 (US$1.04)
in metallurgy,
BF43 (US$0.86)
in metal processing, and BF49
(US$0.98)
in transportation
equipment.
Wage supplements,
such as family allowances and paid leave, were es
timated at 31 percent of the average hourly earnings of production workers
in October 1963.
Over 22 percent of these supplementary paymepts consisted
of employers' contributions to social insurance.
The law provides for a standard 8-hour workday and a maximum 45-hour
workweek. Actual weekly hours worked averaged 40 to 42 in 1964. A statu
tory premium of at least 25 percent must be paid for the first 2 hours of
overtime, and 50 percent for additional hours. Double time must be paid for
work on Sunday and national holidays.
The statutory minimum annual
leave
is 2 weeks.
Collective agreements tend to provide for 3 weeks, depending on
seniority.
From October 1959 to April 1964, average hourly earnings in all of in
dustry rose from 30.2 francs (US$0.60) to 39.9 francs (US$0.80), an increase
of 31 percent.
The official retail price index, to which all wages and sal
aries are geared, increased by 18 percent during the same period.
Employer Organizations
The majority of employers are organized into industrywide federations
affiliated with the Federation of Belgian Industries (FIB) , which publishes labor
studies and represents the interest of their members vis-a-vis the Government.
Labor Organizations
Of the approximately 2.8 million wage and salary earners, more than
60 percent, or 1.7 million, are members of trade unions.
There are three
national centers, all of them politically oriented.
The strongest federation is the Confederation of Christian Trade Unions
(Confederation des Syndicats Chretiens de Belgique--CSC) with over 812,000
members, or about 47 percent of all organized labor, followed closely by the
Belgian General Federation of Labor (Federation Generale du Travail de Belgique--FGTB) with a membership of over 712,000, or about 42 percent of the
total trade union membership.
The CSC, a prominent member of the Interna
tional Federation of Christian Trade Unions (Confederation Internationale des
Syndicats Chretiens--CISC), has close links with the Social Christian Party.
The FGTB, an affiliate of the International Confederation of Free Trade
Unions (ICFTU), is linked to the Socialist Party.

/ /

The General Federation of Liberal Unions of Belgium (Centrale Generale
des Syndicats Liberaux de Belgique--CGSLB)
claims about 102,000 members, or
•6 percent of the overall total.
It is close to the Liberal Party and a mem
ber of a small international of liberal unions, the World Union of Free Trade
Unions (WUFTU).

Independent unions have formed the Cartel of Independent Unions of
Belgium (Cartel des Syndicats Independants de Belgique--CSIB), which repre
sents 52,000 trade union members, or about 3 percent of the total union mem
bership. The CSIB is affiliated with the International Confederation of
Supervisory Employees.
Labor-Management Relations
Collective bargaining is carried on in most major industries by joint
committees of employer and employee representatives.
The procedure is reg
ulated by an Order of 1945,
intended to standardize collective bargaining
practices.
At the request of a committee or an organization it represents,
a Government order may extend the scope of an agreement negotiated by the
committee to cover an entire industry.
Labor disputes may be settled by voluntary conciliation or arbitration
either through official bodies set up by the Labor Ministry,
through ad hoc
committees set up by agreement between labor and management with Government
approval, or through permanent bipartite committees which are subcommittees
of the joint collective bargaining committees. The latter are most frequent
ly used. Strikes are legally permitted, but the Minister of Labor has inter
vened in strikes affecting the public welfare.
The operation of establish
ments providing essential services must be continued with at least a skeleton
crew.
In 1963, 191,347 man-days were lost due to 44 strikes.

LABOR DIGEST
No. 67
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN BULGARIA
Bulgaria, situated in southeast Europe,
lation of over 8 million and an area of

had at the beginning of 1965
42,818 square miles.

a popu

Factors Affecting Labor
Political. Officially called the People's Republic of Bulgaria,
the
country has been ruled by the Bulgarian Communist Party
since 1948, but in
effect since September 1944. Bulgaria nominally has a representative form of
government, based on the Constitution of
1947. However, the People's Assem
bly, declared to be the supreme organof state power,
is
elected from a
single list of candidates. Todor Zhivkov is First Secretary of the Central
Committee of the Communist Party and the Premier (head of government). Bul
garia is a signatory of the 1955 Soviet bloc's Warsaw Pact (a 20-year mutual
defense treaty) and a member of the bloc's Council of Mutual Economic Assist
ance (CEMA).
Economic. This industrially underdeveloped country, 59 percent of
whose population was rural at the beginning of 1964, has a socialized planned
economy patterned after the Soviet model. Agriculture is 98 percent collec
tivized. The main industries are electricity, coal, cement, steel and iron,
and chemical fertilizers. The main crops are wheat,
corn,
tobacco,
sugar
beets, grapes, and tomatoes. As a member of the CEMA, Bulgaria has been de
pendent on the Soviet bloc, especially the Soviet Union, for most of its trade
(about 80 percent in 1964). Annual national income per capita is about US$400.
Social. About 88 percent of the population are Bulgarian.
The two
largest ethnic minorities are the Turks (about 600,000, or 8 percent of the
population) and the Gypsies (about 200,000, or over 2 percent). The principal
religion is the Eastern Orthodox, which encompasses an estimated 90 percent
of the population. The Moslems (mostly Turks) account for about 9 percent of

the population.
Eight years of free primary schooling
children, from the age of 7.

are compulsory

for

Manpower and Employment
Employment and Unemployment. About 4.3 million persons, or approxi
mately 54 percent of the population, were economically active in 1963. About
59 percent were in agriculture, 21 percent in industry (mainly manufacturing,
mining, and electricity), and 20 percent in services.
There were 1,992,500
wage and salary earners in 1963, or about 46 percent of the labor force. Of
these, 854,000 were in industry, 212,000 in construction, 169,000 in trans
portation and communications, 181,500 in trade, and the remaining 576,000 in
the other sectors of the economy. The national employment service assists
unemployed workers to find new jobs; it has a board attached to each local
government unit.
Productivity, Skills, and Training. The Government sets aside regular
ly in its annual budget specific sums to be used in promoting educational and
training programs,
especially in secondary vocational schools and in higher
technical and professional schools. In the 1962-63 school year, 134,800 per
sons were enrolled in secondary vocational and technical schools, and 77,600
were enrolled in higher educational
institutions.
Bulgaria is lowest in
labor productivity among the CEMA countries. In order to increase labor pro
ductivity, the Government has stepped up electric power production, the mech
anization of industry, and enforcement of labor discipline; it has also re
organized its incentive pay system.
Labor productivity
in industry was
claimed to have risen 156 percent between 1948 and 1962 and approximately 6
percent in 1964.
Labor Standards
Labor Legislation. The Constitution of 1947 and the Labor Code of
November 9, 1951, constitute the basic labor legislation. The Constitution
declares work to be the obligation of every able-bodied citizen and guarantees
him the right to work with pay (according to the work done), to rest days and
paid vacations, to health protection, and to educational, cultural, and social
insurance benefits.
The Labor Code describes the functions of the trade
unions, defines the extent of social insurance,
establishes conciliation
boards to settle workers1 grievances or disputes, and lays down the rules of
labor discipline aimed at discouraging absenteeism and tardiness.
It gives
the trade unions the right to create labor protection boards and inspectors
to enforce labor standards. It authorizes various ministries to set up special
departmental services for safety engineering.
Administration and Practice. Since the abolition of the Ministry of
Labor and Social Welfare in 1951, labor legislation has been administered by
various Government agencies and by the trade unions. The Ministry of Health
administers workers1 health and hygiene legislation, and the Central Council
of Trade Unions administers the social insurance provisions. Management is
responsible for implementing factory legislation, and the trade unions are
responsible for checking on the implementation of all legislation with re
spect to labor.

Wages, Hours, Prices, and Level of Living
The Government controls wage rates and prices. In 1964, average gross
monthly earnings of all wage and salary earners were about 90 leva (US$45).
Average earnings were highest in construction and lowest in forestry.
Sup
plements to earnings appear in the form of family allowances, low rent, free
medical care, sickness benefits, and scholarships to workers.
According to
official data, real earnings of wage and salary earners more than doubled in
the 10-year period 1952-61; however,
they dropped 0.5 percent in 1962. The
level of living is relatively low; the quality of consumer goods is irregular
and generally poor; bread and meat are sometimes scarce. The housing situa
tion. is critical in the larger cities and industrial centers
(no dweller in
Sofia not benefiting from privilege due to a Party or Government position may
have more than one room).
The work schedule for most workers is 46 hours a week, 8 hours a day
for 5 days a week and 6 hours on Saturday. There are 7 holidays in the year.
Overtime work, at time-and-a-quarter pay , is permitted only in certain situa
tions specified by law, and for not more than 2 hours a day, 10 hours a week,
and 150 hours a year. All workers are guaranteed a paid annual vacation of
2 to 4 weeks, depending on the number of years of employment and the nature
of the job; they are also paid for time on sick leave.
Employer Organizations
There is no national organization of enterprise managers in Bulgaria.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of Government-Party policy with regard to the
working population. The Bulgarian Central Council of Trade Unions (Tsentralen
Suvet naBulgarskite Profesionalni Suyuzi--TsSPS) claims about 1,500,000 mem
bers, or 75 percent of the wage and salary earners0 The TsSPS is an affiliate
of the World Federation of Trade Unions (WFTU). A number of professional
associations, such as artists, journalists, scientific workers, and teachers,
may have some official ties with the TsSPS.
Labor-Management Relations
The trade unions have the legal right to draft labor legislation and
regulations and to advise the management during the formulation of production
plans, workers1 production quotas, and wage rates; they must be consulted on
the appointment of plant managers, on the dismissal and transfer of a worker,
and on the allocation of the housing construction and certain other funds.
Collective bargaining in the Western sense does not exist in Bulgaria, as the
Government controls the trade unions and fixes wage rates, hours of work, and
working conditions.
The collective contracts concluded by trade union com
mittees with the managements of enterprises have the primary purpose of
maximizing production and the secondary one of improving the workers1 welfare.
By unwritten law, the trade unions are not permitted to strike. A labor con
tract which describes the place and nature of a worker*s job must be signed

by every wage and salary earner with the management of the enterprise.
A
worker cannot be transferred without his consent, except in certain specified
situations.
Disputes over contract interpretation, payment for damages to
factory property,
and dismissals or transfers may be taken to the public
courts. Other disputes, and disputes over dismissals or transfers, can be
submitted to the conciliation board of the trade union committee within the
enterprise; if this board fails to reach an agreement, the dispute is examined
by the district or city trade union council.

LABOR DIGEST
No. 68

UNITED STATES DEPARTMENT OF LABOR

BUREAU OF LABOR STATISTICS

1965

LABOR CONDITIONS IN CYPRU S
Cyprus is a 3,572 square mile island in the northeastern Mediterranean Sea,
The population in 1964 was officially estimated at 588,000.
Factors Affecting Labor
Political. Cyprus became a republic on August 16, 1960. Legislative
power is divided between the House of Representatives, with a legal ratio of
seven Greek Cypriots to each three Turkish Cypriots,
and Greek and Turkish
Communal Chambers, which deal with legislation on educational, cultural, and
religious affairs for the respective groups. Executive power is vested in
the Council of Ministers.
The President is by law a Greek Cypriot and the
Vice President a Turkish Cypriot. The functions of the Government have been
affected by friction between the Greek and Turkish segments of the population.
Economic. Agriculture is the largest single sector of the economy,
contributing 24 percent of the gross national product (GNP). Cereals, pota
toes, grapes, and citrus fruits are the main crops produced on small owneroperated farms. Manufacturing accounts for 16 percent of the GNP, and con
sists predominantly of food processing and textiles. Although mining contrib
utes only 8 percent of the GNP, 55 percent of exports are minerals. Other
GNP percentages by activity are: Government, 15 percent; trade, 11 percent;
transport, 10 percent; and other, 16 percent.
A balance-of-trade deficit is
counteracted by remittances from emigrants, operation of a British military
base, and tourism. A 5-year economic development plan was initiated in 1962.
Social. The population includes 77 percent ethnic Greeks, who adhere
to the Greek Orthodox Church, and 18 percent ethnic Turkish Moslems.
The
Greek and Turkish Cypriot communities are largely separate. Elementary edu
cation is compulsory to age 12; the literacy rate is 82 percent. Greek and
Turkish are the official languages.

Manpower and Employment
Employment and Unemployment, The total labor force was estimated to
be 243,000 in 1964,
including 98,500 in agriculture, forestry, and fishing;
28,200 in commerce and administration; 53,800 in manufacturing and construc
tion; 29,700 in services; 3,600 in mining and quarrying; and 29,200 in other
categories.
The monthly average registered unemployed at the end of 1964 was 5,636.
Unemployment is mainly seasonal.
Productivity, Skills, and Training. The Ministry of Labour and Social
Insurance attributes low productivity in agriculture (index of 135,7 in 1963,
1958=100)
to the small size of farms, and in manufacturing (index of 81.2 in
1963, 1958=100), to the lack of skills. Efforts to raise productivity and
skills include an apprenticeship program, technical adult education, and new
technical and vocational schools.
Labor Standards
Labor Legislation. Labor legislation includes : (a) a 1962 Basic Agree
ment, outlining collective bargaining procedures; (b) the Social Insurance
Law of 1964, covering every worker for old age, invalidity, death, sickness,
maternity, and unemployment; (c) a Factories Law and Building Regulations of
1956, governing safety; and (d) the Minimum Wage Law of 1941, the Employees1
Order of 1961, the Mines and Quarries Order of 1961, and the Shop Assistants
Law, which cover wages and hours.
No one under 13 can be employed.
The
national health system is modeled after that of the United Kingdom.
Administration and Practice. The Ministry of Labour and Social Insur
ance administers the labor laws and initiates legal action against violators.
Enforcement of legislation is improving.
Wages, Hours, Prices, and Level of Living
The range of weekly earnings in 1964 was from $14 for agricultural
workers to $41.70 for refiners (highly skilled workers) in the beverage in
dustry. Women receive a little over one-half the wages of men.
Legal maximum hours are 44 for office, bank, and commercial employees
and aboveground mineworkers, and 40 hours for underground mineworkers. Manu
facturing hours averaged 40-50 hours a week in 1964, and civil servants aver
aged 38-44 hours. Paid annual leave varies from 5-15 days in construction
to 24-54 days for Government employees.
Employer Organizations
The Cyprus Employers' Consultative Association coordinates the activi
ties of most of the employers' organizations. The largest are the Nicosia
Chamber of Commerce and Industry, the Cyprus Cinematographists' Association,
and the Cyprus Building Contractors' Association.

Labor Organizations
Of the wage and salary earners, 70,586 are members of trade unions.
About 54 percent of the trade union members, or 43,589, are organized in the
Pancyprian Federation of Labour (The M01d Trade Unions’1) (Pankypria Ergatiki
0mospondia--PE0). This group, which has both Greek and Turkish members, is
affiliated with the World Federation of Trade Unions
(WFTU). The Cyprus
Workers'
Confederation ("Free Labour Syndicates")
(Synomospondia Ergaton
Kyprou--SEK) represents somewhat more than 25 percent of organized labor, or
18,626 members.
This group, which has only Greek members,
as well as the
much smaller Cyprus Federation of Turkish Trade Unions
(Kibris Turk Ischi
Birlikleri Federasyonu--KTIBF), with 4,456 members, belongs to the Interna
tional Confederation of Free Trade Unions (ICFTU). The balance of organized
labor in the country is divided among three smaller federations and a number
of independent unions.
Labor-Management Relations
Negotiation procedures are outlined in the 1962 Basic Agreement be
tween the Cyrpus Employers' Consultative Association and the labor unions.
In the event of a breakdown in talks, a case is jointly submitted to the
Ministry of Labour and Social Insurance for conciliation, mediation, or,
finally, arbitration. Vital industries,
such as utilities, are subject to
compulsory arbitration. Within the factories are joint labor committees of
management and labor. The disputes concern primarily wages, with vacations
and bonuses next in importance.

LABOR DIGEST
No. 69
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN CZECH O SLO V A KIA
Czechoslovakia, a landlocked eastern European country situated between Germany
and the U.S.S.R., had a population of over 14 million at the beginning of
1965 and an area of 49,359 square miles.
Factors Affecting Labor
Political. Officially called the Czechoslovak Socialist Republic, the
country has been controlled since 1948 by the Communist Party. Czechoslovakia
nominally has a parliamentary system of government, based on the Constitution
of 1960.
The National Assembly, declared to be the supreme organ of state
power, is elected from a single slate of candidates approved by the National
Front, which is a coalition of several parties and mass organizations and is
controlled by the Communist Party. President Antonin Novotny has been head
of the Communist Party since 1953 and head of the state since 1957. Czecho
slovakia is a party to the 1955 Soviet bloc's Warsaw Pact (a 20-year mutual
defense treaty)
and is a member of the bloc's Council of Mutual Economic
Assistance (CEMA).
Economic. The country is highly industrialized and has a socialized
planned economy (patterned after the Soviet model), which in 1963 contributed
99 percent of the national income.
Industry (chiefly manufacturing and min
ing) accounted for 67 percent of the national income (in 1937, 53 percent);
agriculture, which was 90-percent collectivized, for 13 percent*; construction,
8 percent; and the other sectors, 12 percent. The main industries are coal,
electric power, glass, steel, iron, and the manufacture of metalcutting machin
ery and consumer goods,
such as shoes, fabrics, bicycles,
television sets,
and washing machines. The main crops are fodder, barley, wheat, and potatoes.
Czechoslovakia is heavily dependent on the import of raw materials. As a
member of the CEMA, it has been dependent on the Soviet bloc, especially the
Soviet Union, for most of its trade (over 74 percent in 1963). Annual nation
al income per capita is about US$800.

Social. The population is predominantly of Slavic stock, made up of
Czechs (about 9 million) and Slovaks (about 4 million), whose languages are
closely related. The largest minorities are the Hungarians (over 500,000),
the Germans (over 100,000), and the Poles (about 70,000). An estimated 75
percent of the population is Roman Catholic. Nine years of free primary school
ing are compulsory for children, from the age of 6.
Manpower and Employment
Employment and Unemployment. In 1963, over 45 percent of the popula
tion were economically active. Of these, industry accounted for 38.2 percent;
agriculture and forestry,
22.6 percent; public utilities, education, health
work, and cultural activities, 13.3 percent; trade and restaurants, 8.5 per
cent; construction, 8 percent; transportation and communications, 6.3 percent;
and banking, insurance, the courts, public administration, and other activi
ties, for the remaining 3.1 percent.
In 1963, there were 6,318,000 economically active persons in the coun
try; 5,233,000, or 83 percent, were wage and salary earners in the socialized
sector. The Government is attempting to meet the unsatisfied demands of in
dustry for additional workers by mechanization and more efficient methods.
The national system of labor exchanges has the primary task of recruiting
labor. Unemployment of white-collar workers would appear to be a continuing
problem, which was aggravated in 1964 when some 37,000 office jobs were abol
ished as an efficiency measure.
However,
the Government reports
that the
workers affected were transferred to other jobs, and that most unemployed
workers who cannot obtain white-collar jobs are not suitable for such work.
Productivity,
Skills, and Training. The Government has vigorously
promoted educational and training programs to meet the demands of its economy
for trained workers.
In 1963, there were 944,202 trained specialists
(more
than double the number in 1950); of these,
181,041 were specialists with
university-level training, and 763,161 were specialists with complete or par
tial secondary vocational school training. In the school year 1963-64, 302,224
persons were enrolled in vocational secondary schools and 138,754 (including
part-time students)
in higher educational institutes.
In 1963, there were
324,754 apprentices.
Labor productivity in industry was reported to have in
creased about 55 percent in the period 1955-63 and 3.9 percent in 1964. The
Central Commission of People’s Control and Statistics and its 5,000 subordi
nate local commissions have the responsibility for reducing production costs
and improving the quality of manufactured goods.
Labor Standards
Legislation. The Constitution of July 11, 1960, declares work to be
a primary obligation and guarantees every citizen the right to work with pay
(according to the work performed), to rest days and paid vacations, to health
protection,
and to educational,
cultural, and social insurance benefits.
Special laws and regulations establish the hours of work and holidays, fix
wage rates, set standards of hygiene and safety, regulate the employment of
women and young workers, prescribe labor discipline, and provide for the set
tlement of workers’ grievances or disputes.
No worker may be discharged
except for cause and with the consent of the trade union. The basic trade

union law of May 16, 1946, and the Constitution (section 5) made the Revolu
tionary Trade Union Movement (ROH) the sole body representing the labor move
ment in Czechoslovakia. The Central Council of Trade Unions may suggest labor
legislation, may issue directives to implement existing labor laws, and must
be consulted by ministries which draft new labor legislation.
These legislative provisions, except those relating to the major func
tions of trade unions, have been incorporated into a Labor Code,
effective
on January 1, 1966. One of the new provisions in the code gives a worker the
right to quit his job after 6 months1 notice (in special cases, 1 to 3 months'
notice), unless his employer consents to a shorter period.
Administration and Practice. Since the abolition of the Ministry of
Labor and Social Welfare in 1951, the administration and enforcement of labor
legislation has been the responsibility of various Government agencies,
the
management of enterprises, and the trade unions. Social welfare and pensions
are administered by the National Social Security Office and medical care by
the Ministry of Health.
The trade unions administer workers'
disability
insurance and check on the implementation of labor legislation by management
(especially in the fields of workers' production quotas, wage and bonus pay
ments, and safety measures).
Wages, Hours, Prices, and Level of Living. The Government controls
wage rates and prices. The 1964 gross monthly earnings of the average worker
in industry were 1,537 korunas (US$96). Supplements to earnings are in the
form of family allowances, free medical care, sickness benefits, and scholar
ships to workers. The level of living has risen perceptibly since the end of
World War II, but is low by U.S. standards. For example, a man's woolen suit
costs the average worker about 3 weeks' work in Prague,
compared with about
3 days' work in New York City. According to Czechoslovak official figures,
real earnings increased 49.5 percent during the 8-year period 1953-61; how
ever,
they declined more than 1 percent in the 2-year period
1962-63. A
serious housing shortage persists, and consumer goods and services appear to
be in short supply.
Most workers are on an 8-hour workday (6 hours on Saturday) and a 46hour workweek.
There are 7 legal holidays in the year. Overtime, usually at
one-and-a-quarter pay if compensatory time is not given, is limited to 4 hours
during 2 consecutive workdays,
8 hours a week, and 180 hours a year. Most
workers are guaranteed an annual vacation of 2 to 4 weeks, depending on the
number of years of employment, the age of the worker, and the nature of the
job; underground workers are entitled to an additional week; teachers get 8
weeks. Workers are also paid for sick leave.
Employer Organizations
There is no national organization
slovakia.

of enterprise

managers in Czecho

Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of government-party policy with regard to the

working population. The Central Council of Trade Unions (Ustredni Rada Odboru
--URO)
claims a membership of 5,200,000, which represents practically all
of the 5,233,000 wage and salary earners. The URO is an affiliate of the
World Federation of Trade Unions (WFTU).
Since 1959, a consolidation of
affiliates has reduced their number from 16 to 13. A number of professional
organizations, such as teachers, printers, scientists, and chemical workers,
may have some official ties with the URO.
Within the URO, special consideration is given to the Slovakian areas
of Czechoslovakia, for which a distinct regional organization is established.
Labor-Management Relations
Collective bargaining in the Western sense does not exist in Czecho
slovakia, as the Government fixes wage rates, hours of work, and working
conditions. The collective agreements concluded by works committees with
management aim, primarily, to further the execution of production plans to the
maximum degree and,
secondarily,
to improve the workers' welfare.
By un
written law,
the Czechoslovak trade unions are not permitted to strike, but
wildcat strikes of short duration have occurred in protest against dangerous
working conditions,
inadequate wages,
and the introduction of higher work
quotas. Every wage and salary earner in Czechoslovakia must sign a labor con
tract in which his wage or salary rate and job obligations are specified.
Disputes over pay, special awards, hours of work, job assignments, and certain
other specified matters may be submitted to the works committee for arbitra
tion; the works committee must transmit to a public court the disputes its
arbitration commission cannot decide and certain other specified disputes.
Disputes
in small enterprises without works committees may be taken to the
public court.

LABOR DIGEST
Ho. 70
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN DENMARK
Denmark proper, i.e., the Jutland Peninsula extending northward from West
Germany, plus numerous neighboring islands, has an area of 16,619 square
miles, and in 1965 had a population of 4.8 million.
Factors Affecting Labor
Political. The Government
is a constitutional monarchy under King
Frederick IX. Executive power rests in the Council of Ministers, which is
responsible to the unicameral legislature (Folketing) of 179 members, elected
for 4-year terms by universal suffrage.
The Social Democratic Party (SPD),
supported largely by industrial workers, civil servants, small shopkeepers,
and farmers, is the strongest of 14 political parties.
The Communist Party
is one of the weakest.
Only the six largest parties are represented in the
Folketing. Jens Otto Krag, head of the SPD, is Premier.
Economic. Denmark is a noted producer of livestock and dairy prod
ucts, but the estimated contribution of agriculture and fishing to the gross
national product (GNP) (without income received from abroad) in 1963 ( 13 per
cent) was less than the contributions of manufacturing (30 percent) , serv
ices (20 percent), or trade and finance (18 percent).
Transportation con
tributed nearly 10 percent; other branches of economic activity
(construc
tion, utilities, mining) together contributed about 9 percent. Heavy indus
try produces machinery, especially diesel engines, and ships. Per capita GNP
in 1963 was US$1,680. About 60 percent of agricultural production and about
25 percent of manufactured goods are exported. Balance of payments is a prob
lem because of extensive imports of fuels, machinery, metals, and textiles.
Social. Well over 90 percent of the population are ethnic Danish. The
only sizable minority element consists of about 30,000 Germans in South Jut
land.
About 95 percent of the people belong to the Evangelical Lutheran

Church. The universal language is Danish. German, French, and English are
also taught in many elementary schools.
Almost all the adult population is
literate. Education at all levels is free and is compulsory for children
age
7-14. There are two universities and many institutions for technical
and adult education.
Manpower and Employment
Employment and Unemployment. The labor force in 1964 totaled 2.3 mil
lion, or 48 percent of the population.
About 600,000 workers were in manu
facturing; 450,000 in services; 370,000 in agriculture, fishing, and forest
ry; 300,000 in commerce; 150,000 in transportation and communications; and
150,000
in construction.
In recent years, there has been a marked shift in
employment from agriculture to manufacturing. Between 1955 and 1962, the pro
portion of workers in agriculture and fishing declined from nearly 25 percent
of the labor force to 19 percent, while the proportion of workers in manufac
turing and construction increased from 36 percent to 39 percent; and by 1965,
there were less than 80,000 basic farm workers. Wage and salary earners num
bered over 1.5 million in 1960; self-employed, managers, and directors, over
400,000; domestic
servants, about 70,000; and family workers, 45,000.
The
number of wage and salary earners
in 1964 was estimated to be 1,6 million.
Unemployment was under 2 percent of the labor force in 1964.
Despite the
scarcity of labor, the policy of both the Government and the labor unions is
against the importation of foreign labor.
Productivity, Skills, and Training. Mechanization and improved tech
niques have raised productivity greatly in the postwar period.
Rising pro
ductivity is the major cause of a marked increase in the national income (47
percent from 1956 to 1961). The Danish labor force is noted for efficiency,
versatility, and good craftmanship. Apprenticeship
training programs and
technical and vocational schools maintain high standards and are wel 1 attended.
Labor Standards
Labor Legislation. Advanced social and labor laws fix employers' ob
ligations respecting dismissals, wage and salary payments during illness or
military service, and death benefits; set rules for apprenticeship and the
employment of women and minors; prescribe safety measures and factory in
spections; and provide for 3 weeks' paid annual leave, workmen's compensa
tion, unemployment and health insurance, and pensions.
Several laws are de
signed to implement or reinforce the provisions of labor-management agreements.
Administration and Practice. Administration of labor legislation is
mainly the responsibility of the Ministry of Labor.
The Ministry of Finance
bargains directly with the unions of civil servants.
State mediation and
conciliation boards and the Permanent Court of Arbitration (Labor Court) deal
with disputes.
Labor laws are usually well observed.
Wages, Hours, Prices, and Level of Living
Average gross hourly wages in industry and handicrafts were 9.35 kroner
(US$1.35) in 1965.
Wages in the private sector increased 52.6 percent from

1958 to 1962. Agricultural wages are lower, but customarily include room and
board. Extensive social security benefits supplement basic wages. There is
no minimum-wage law. The general index for consumer prices rose 22.4 percent
between 1957 and 1964. There is an escalator clause in the nationwide collec
tive agreement by which, twice a year, nearly all wages and salaries in pri
vate industry are adjusted automatically to the cost-of-living index if it
goes up 3 points or more. This arrangement has been extended by law to civil
servants and social pensioners. Higher wage rates stipulated in collectively
bargained agreements, therefore, mostly represent gains in real wages.
An 8-hour day, 45-hour workweek generally prevails in industry, under
labor-management agreements. The law forbids more than 8 hours’ work in a
given day by any one worker in 24-hour operations.
Collective agreements in
the metal trades in 1964 extended voluntary overtime from 16 to 24 hours per
month.
A 2-year contract signed by the employers’ association and the cen
tral labor federation provides for a 44-hour week beginning in 1966.
The Danish standard of living is high, and housing is perhaps the best
in Europe. The average daily caloric intake in 1960 was 3,400. Public health
facilities are good, and the incidence of disease is low.
Employer Organizations
The Danish Employers’ Association is a federation of industrial and
regional employer associations as well as individual firms.
Its members em
ploy about half the nation’s wage and salary earners. In 1899, it negotiated
a nationwide ’’September Agreement” with the central labor federation, which
laid down in detail the rights and duties of employers and unions and estab
lished basic procedures for the peaceful settlement of disputes. This basic
agreement, as revised in 1960, sets the pattern for labor-management relations.
Labor Organizations
About 65 percent of the estimated 1.6 million wage and salary earners,
or 1,060,015, are members of trade unions. Four-fifths, or 833,970, are or
ganized in the Federation of Danish Trade Unions (Landsorganisationen de samvirkende Fagforbund--L0), an affiliate of the International Confederation of
Free Trade Unions (ICFTU).
LO affiliates in related industries (occupations) have formed cartels
with a view to coordinating their activities in general matters of mutual
interest.
At present,
seven cartels have been formed,
including those for
metalworkers; lower echelon civil servants; construction workers; workers in
the food and drink industry; workers in graphical trades; hotel, restaurant,
and related personnel; and woodworkers.
Some of these cartels have been
joined by noti-LO unions.
About 14 percent of all trade unionists,
or 142,455, are members of
the Federation of Civil Servants’ and Salaried Employees’ Organizations (Faellesraadet for danske Tjenestemands- og Funktionaerorganisationer--FTF). Some
of its affiliates have also formed cartels, altogether six, for coordinat
ing their activities.

A Council of Danish Supervisors1 and Technical Employees1 Associations
(Faellesrepraesentationen for danske Arbejdsleder- og tekniske Funktionaerforeninger--FAF)
coordinates the activities of salaried private employees
representing 30,510 trade union members, or 3 percent of the overall total.
Labor-Management Relations
The practice of collective bargaining is not only customary, long es
tablished, and accepted by all, but legally required. While there is some
plant-level bargaining (on the increase since World War II) and industrywide
bargaining, major issues are negotiated on the national level between the
employers1 association and the L 0 .
Elaborate rules have evolved, in which
mediation and arbitration have an important place. Nationwide contracts are
for a fixed period, usually 2 years; both unions and employers must formulate
their demands
in advance of the time set for negotiating contract renewals.
The Labor Court, whose members are chosen by labor and management, has jur
isdiction over breaches of contract and disputed legality of strikes and
lockouts.
Its decisions are final, and it can levy fines and damages.
Strikes are permissible after established procedures for peacefu1 set
tlement have been exhausted. Because of these procedures and prevailing at
titudes, strikes, especially prolonged ones, are infrequent.
In 1963, there
were only 19 work stoppages, involving 6,527 workers and entailing the loss
of only 23,600 man-days.
In recent years, there have been only three major
strikes--those of transport workers
in 1956 and 1961, and of metallurgical
workers in 1961. The strike in 1956 involved 66,306 workers and caused a loss
of over 1 million man-days; those in 1961 involved 153,304 workers and ac
counted for over 2 million man-days lost.

LABOR DIGEST
Ho. 71
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN FINLAND
Finland, situated in northern Europe between the Scandinavian Peninsula and
the Union of Soviet Socialist Republics, has an area of 130,120 square miles.
Its population was estimated at 4.6 million in 1964.
Factors Affecting Labor
Political. The Constitution of 1919 provides for a unicameral Par
liament, consisting of 200 members elected by universal suffrage for 4-year
terms. The Prime Minister and his Cabinet are elected by and are responsible
to Parliament. The main political parties are the Agrarians, who won con
trol of the Government in 1938 from the Social Democratic Party which was
weakened by a split, and the Finnish People’s Democratic■League, a Communist
front.
Economic. Of the gross national product (GNP) in 1963, 30.4 percent
was derived from manufacturing; 20.8 percent from commerce and transporta
tion; 20.1 percent from agriculture, forestry, and fishing; 18.4 percent from
services; and 10.3 percent from construction.
Per capita GNP was US$1,278.
The value of wood products was about one-third of the nation's total indus
trial production and three-fourths of total exports.
Other major manufac
tures are machinery, chemicals, textiles, and ships.
Social. The Finns are a homogeneous people; more than 92 percent
speak Finnish and belong to the Evangelical Lutheran State Church. Non-Luth
erans include about 3.5 percent of the population without church affiliation
and 2.5 percent in other groups. About 7 percent of the population are of
Swedish origin. There are approximately 6,000 Lapps and Gypsies who are only
partially assimilated. Finnish and Swedish are the official languages. Al
most all adults in the population are literate; 8 years of school attendance
are compulsory.

Manpower and Employment
Employment and Unemployment, The labor force at the end of 1964 con
sisted of 2,185,000 persons, or 47.5 percent of the population, including 31
percent in agriculture and forestry, 23 percent in mining and manufacturing,
20 percent in commerce and transportation, 16 percent in services, and 9 per
cent in construction. Unemployed persons accounted for 1.5 percent of the
labor force. Of the employed persons, 42 percent were wage earners, 28 per
cent were salaried employees, and 30 percent were self-employed or unpaid
family helpers.
Productivity, Skills, and Training. Overall productivity in manufac
turing, agriculture, and services increased 21 percent in the period 1954-62.
Professional,
technical, and production workers
in industry are generally
considered highly competent, but they are in short supply.
Most 15- to 19year-old workers receive on-the-job training; in 1964, about 72,000 students
attended vocational schools and 4 ,000 persons were in apprenticeship training.
Labor Standards
Labor Legislation. Extensive legislation covers labor-management re
lations, working conditions, public employment services, and social insur
ance. The constitutional right of all persons to form associations and the
right of workers to employment are implemented by the Collective Agreements
Act of
and the Public Employees' Collective Bargaining Act of
A
labor court and procedures for mediation in labor-management disputes were
provided by law in
and joint production committees in
.
Hours of
work, overtime pay, paid vacations, and working conditions are regulated by
numerous laws, according to occupation, age, and sex of employees. The Labor
Protection Act of
regulates working conditions and job safety, and in
cludes special provisions for women and young workers.
Social security leg
islation provides insurance coverage for old age, disability, sickness, fam
ily welfare, job accidents, and unemployment.

1924

1943c

1946,

1949

1958

Administration and Practice. The Ministry of Social Affairs is the
chief agency for administration of labor affairs, including research and sta
tistics, industrial inspection, welfare, and family allowances; it supervises
social insurance operations, the Insurance Court, and the Mediation Service.
The semi-judicial Labor Council assists the Ministry
in the interpretation
of labor laws and in drafting new legislation. Manpower administration, pub
lic works programs, and the Public Employment Service functions are under the
Ministry of Communications and Public Works. The Labor Court settles dis
putes arising from collective agreements,
if negotiation fails. Compliance
with labor and social security laws is relatively good, according to Finnish
sources.
Wages, Hours, Prices, and Level of Living
Rates of pay in industry are usually set by collective agreements.
Average hourly wage rates in various industries in 1964 ranged from 2.00
markkas (US$0.62) to 3.70 markkas (US$1.15), while monthly salaries were from
343.38 markkas
(US$106.64)
for female shop assistants to 1,362 markkas

(US$423) for male industrial supervisors.
12 percent to cash earnings in industry.

Fringe benefits added as much as

The legal limit on hours of work in industry and commerce is 8 per day,
47 per week. Actual hours worked in industry, determined by collective agree
ments, in recent years have been about 42 weekly. Labor and management have
agreed on the gradual introduction of the 40-hour workweek between 1965 and
1970. Extra pay for overtime ranges from 50 percent of normal pay for the
first 2 hours to 200 percent on holidays. There are 10 paid public holidays,
and the legal minimum paid vacation is 18 days.
While wages and salaries increased by 20 to 34 percent in various in
dustries from 1957 to 1962, consumer prices increased only 15 percent. Pur
chasing power is equalized throughout the country by a 5-percent difference
in wage and salary rates between each of 4 cost-of-living regions, resulting
in a maximum difference of 15 percent between regions.
Employer Organizations
Employers^are organized in the Finnish Employers' Confederation (STK),
which comprises 28 employers' federations, with about 2,100 member firms em
ploying nearly 300,000 workers,
and several smaller confederations of com
mercial and agricultural employers. The STK develops general employer policy
and acts as spokesman for employers before governmental bodies dealing with
labor,
social, and economic affairs.
It can supervise the collective bar
gaining of its affiliates and has authority to approve or disapprove all col
lective agreements made by them.
Labor Organizations
Somewhat less than two-thirds of the 917,700 wage and salary earners
are members of trade unions. Since 1958, the free trade union movement, which
up to then was represented by the Confederation of Finnish Trade Unions (Suomen Ammattiyhdistysten Keskusliitto--SAK) , has been badly split following a se
cession of a left-wing group called "Skogists" (after the name of its leader)
from the Social Democratic Party. Later the SAK came under the control of
Skogist trade union leaders, which in turn led to an exodus of anti-Skogist
trade unions.
Some of these formed a new federation, the Finnish Federation
of Trade Unions
(Suomen Ammattijarjestd--SAJ); others,
intent on keeping
their membership together, remained independent.
Both the SAK and the SAJ
are members of the International Confederation of Free Trade Unions (ICFTU),
while some of the independent anti-Skogist trade unions have shown their al
legiance to the free trade union movement through membership in International
Trade Secretariats. At present, nearly 40 percent of all trade union members,
or 233,915, are with the SAK, while nearly 18 percent, or 103,176, belong to
the SAJ*
The independent unions, which include many former SAK affiliates,
claim 94,129 members, or about 16 percent of the trade union membership. Two
SAK affiliates are members of Trade Unions Internationals (Trade Departments)
of the Communist-controlled World Federation of Trade Unions (WFTU).
A large number of white-collar workers are organized in the Confedera
tion of Salaried Employees (ToimihenkiId- jaVirkamiesjarjestojen Keskusliitto

--TVK). With 150,000 members,
they represent about one-fourth of the total
trade union membership.
This confederation has no international ties; it is
known for its nonpolitical orientation.
Labor-Management Relations
Wages, hours, and working conditions in industry are generally regu
lated and improved beyond legal requirements by collective bargaining.
The
ground rules for labor-management relations have,
since 1946, been set in
basic agreements which contain permanent rules concerning the rights of em
ployers,
of workers,
and of the unions. Periodic bargaining on wages and
working conditions is usually industrywide. Collective bargaining agreements
are valid for
1 to 2 years. On the plant level, collective agreements are
enforced by shop stewards, who are elected by the workers in a plant.
Strikes are not prohibited by law. The Government and the employer
must receive 2 weeks' notice before the start of a work stoppage.
Strikes
in recent years have generally been caused by failure* to agree in collective
bargaining on increases in pay rates.
A total of
1,380,000 man-days were
lost in 1963, but only 66,000 in 1964.

LABOR DIGEST
No. 72
UNITED STATES DEPARTMENT OF LABOR
1965

BUREAU O F LABOR ST A TISTICS

T his is one of a serie s of brief notes on labor conditions prepared in the D ivision of
Foreign Labor C onditions of the Bureau of Labor S ta tistic s, for in clu sion in the Directory
of Labor Organizations-~Europe, jointly prepared and published in 1965 by the Bureau of
International Labor Affairs and the Bureau of Labor S ta tistic s.
LABOR CONDITIONS IN FRAN CE
France, located in western Europe, has an area of 212,737 square miles, and
had a population of 48.3 million in 1964.
Factors Affecting Labor
Political. The 1958 Constitution provides for a President,
elected
for a 7-year term, and a bicameral Parliament,
consisting of a Senate (273
Senators) and a National Assembly (482 Deputies). President Charles de Gaulle
was elected in 1958. The majority in the Assembly is composed of a coalition
of the Gaullist Union for the New Republic and the much smaller Independent
Republicans. The French Communist Party remains the largest and best organ
ized party in France, but its parliamentary representation has been reduced
in the Gaullist period. Other political groups are the Socialist Party, the
much smaller Unified Socialist Party,
the Popular Republican Movement,
the
Radical Socialists, and the National Center of Independents and Peasants.
Economic. France is both a leading industrial country and the largest
agricultural producer in western Europe. Manufacturing contributed about 37
percent of the gross national product (GNP) in 1963; services (including gov
ernment) , about 21 percent; trade, finance, and rent from dwellings,
about
18 percent; construction, transportation, communications, and utilities, ap
proximately 14 percent; agriculture and forestry, about 9 percent; and mining,
less than 2 percent.
The main manufacturing industries are metals, machin
ery, automobiles,
chemicals, foods, and textiles. Agricultural production
includes grain, corn, potatoes, fruit, vegetables, dairy products, meat, and
wines. Per capita GNP was about US$1,765 in 1964. Planned economic develop
ment and extensive control over manpower utilization,
currently embodied in
a 5-year plan, are established government policies.
Social. Most French are Roman Catholics; about a million belong to
Protestant churches.
In 1962-63, France received over 750,000 repatriates

from Algeria, less than one-tenth Muslims. About 96 percent of the popula
tion 14 years of age and over are literate. Education is compulsory for
children aged 6-16, and is free in public primary and secondary schools.
Manpower and Employment
Employment and Unemployment. The civilian labor force totaled about
18.9 million persons in 1962, and was estimated to have grown to 20.3 million
in 1964. Wage and salary earners comprised about 71 percent of the 1962 ci
vilian labor force; employers and self-employed, about 20 percent; and unpaid
family workers, about 9 percent. About 37 percent of the labor force were
employed in manufacturing and construction; 26 percent in services, transpor
tation, communications, and utilities; 21 percent in agriculture, forestry,
and fishing; 14 percent in trade and finance; and less than 2 percent in min
ing. An estimated 1.1 percent of the labor force were unemployed on the aver
age in 1964. Labor shortages have led to importation of foreign workers-165.000 in 1963.
Productivity, Skills, and Training. Increased productivity has re
sulted from extensive industrial modernization since World War II. Output
per man-hour increased at an average annual rate of 4.4 percent between 1949
and 1962.
Shortage of skilled workers and technicians- is a major problem.
The Government finances vocational and technical
training programs.
Over
24.000 adult workers were retrained under government-financed programs in
1963.
Private industry and professional organizations also support train
ing programs.
Labor Standards
Labor Legislation. Wages and working conditions, hiring and firing,
safety and sanitation,
labor education and labor-management relations are
regulated extensively by the Labor Code,
the Artisans1 Code,
the Code of
Technical Training,
the Rural Code, and the Penal Code. Other laws provide
for minimum wages related to cost-of-living indexes; family allowances; a
basic 40-hour workweek for most workers; 3 weeks1 annual vacation for indus
trial and commercial workers; health, accident,
and unemployment insurance;
pensions; the open shop; conciliation, mediation, and arbitration procedures;
shop stewards and mixed (employer-worker) plant committees; labor participa
tion in many administrative boards; and, in nationalized industries, the pow
er (rarely used) to ’'requisition" (draft) labor to prevent strikes.
Administration and Practice. The Ministry of Labor is the principal
labor agency of the Government.
The Ministry of Agriculture has direct re
sponsibility for agricultural labor, the Ministry of Public Works and Trans
port regulates working conditions for seamen and railwaymen, and the Ministry
of Industry has jurisdiction over workers in the other nationalized indus
tries. Interministerial labor commissions and councils have functions relat
ing to law enforcement, employment policy, collective bargaining,
and other
matters.
Law enforcement is included in the functions of the Labor Inspec
tion Service, numerous manpower services and bureaus at departmental and local
levels, and certain tripartite (government-management-labor) and mixed (man
agement-labor) commissions.

Wages, Hours, Prices, and Level of Living
The average hourly wage, including overtime and other premium pay and
excluding deductions for social security, in establishments with over lOworkers, was about 3.3 francs
(US$0.67) in 1963. The national average hourly
rate in manufacturing in 1963 was 2.7 francs (US$0.55). France is divided
into wage zones corresponding to cost-of-living levels (a system scheduled
for termination by the end of 1967) . In the highest wage zone (Paris area),
hourly earnings of wage earners in the highest paid industry (printing and
publishing) averaged 5.3 francs (US$1.08) in 1963; skilled industrial work
ers received 40 percent more than unskilled workers, and highly skilled work
ers 66 percent more. The legal minimum hourly wage for all branches of activ
ity except agriculture was raised in October 1964 to 1.92 francs (US$0.39)
in the Paris zone, and 1.81 francs (US$0.35) in the lowest zone. Government
policy is to hold the line on wages and prices; but labor shortages and labor
demands run counter to government stabilization plans.
The basic legal workweek is 40 hours. Overtime is legal up to 20 hours
per week; overtime pay for industrial and commercial workers, by law, is 25
percent of base pay (excluding supplements)
for the first 8 hours, and 50
percent thereafter. The great majority
(88.5 percent)
of all wage earners
worked more than 40 hours per week; actual weekly hours worked in industry
and trade averaged 46.2 in 1964.
The standard of living is rising. Private consumption of goods and
services increased about 28 percent during 1959-64. The percentage of the
average family income spent for items other than food increased about 7 per
cent in this period. The purchasing power of workers has apparently increased
in recent years. Real wages in 1964 increased 4.5 percent, according to offi
cial statistics.
Employer Organizations
Employer organizations are numerous and influential.
The National
Council of French Employers (Conseil National du Patronat Franc^ais--CNPF)
comprises some 150 trade associations and three major federations.
In ad
dition, there are other employer organizations and over 100 state-subsidized
chambers of commerce. Labor-management negotiations are frequently conducted
with an employers' association on the national, regional, or local level,
rather than directly with individual company management.
The Government is
the country's largest single employer.
Labor Organizations
There is no reliable information available on the number of trade
union members.
It is conservatively estimated
that of the approximately
1,440,000 wage and salary earners in 1946 about 21 percent,
or 3,070,000,
were members of trade unions. Claimed membership figures may raise this pro
portion to 20-35 percent.
The strongest trade union federation, the Communist General Confeder
ation of Labor (Confederation Generale du Travail--CGT), an affiliate of the

Communist World Federation of Trade Unions (WFTU), had a membership of more
than 6 million after World War II.
It has continuously lost members since
the exodus of the non-Communist groups which formed the General Confederation
of Labor-Workers' Force (Confederation Generale du Travail-Force Ouvriere
CGT-FO) in 1947.
It is believed that, of the estimated more than 5 million
members lost since 1947,
the great majority remained unorganized,
although
many of them may still support the CGT in social-security and other elections.
Its present membership is estimated to be 900,000, or about 30 percent of all
trade union members. One of its affiliates,
the Federation of Workers in
Printing Trades, has been provisionally admitted to membership in the Inter
national Graphical Federation (IGF), an International Trade Secretariat (ITS),
pending ratification by the next IGF congress.
The CGT-FO is a member of the International Confederation of Free Trade
Unions
(ICFTU). With an estimated 425,000 members,
the CGT-FO represents
about 1*4 percent of organized labor.
The French Democratic Confederation of Labor (Confederation Franqaise
Democratique du Travai1--CFDT (CFTC))is a member of the International Feder
ation of Christian Trade Unions
(Confederation Internationale des Syndicats
Chretiens--CISC). It has an estimated 600,000 members, or 20 percent of the
total trade union membership. The CFDT until
1964 was known as the French
Confederation
of
Christian
Workers
(Confederation
Francaise
des Travailleurs
/
7
Chretiens--CFTC) and it continues using the initials CFTC in addition to the
initials CFDT. The dropping of all denominational references in the title
means the end of a long and intense struggle within the Confederation. A dis
sident group with 80,000 members, centered around the miners' affiliate, left
the CFDT in protest against the change of name and constitution and operates
under the old title. The CFDT (CFTC) National Union of French Journalists is
a member of the ITS-International Federation of Journalists.
The General Confederation of Supervisory Employees (Confederation Gen
erale des Cadres--CGC)
claims 200,000 members,
or almost 7 percent of the
overall total.
It plays a significant role in the trade union movement.
The Federation of Public Education Personnel has been able to attract
teachers of different political orientation in one organization.
It claims
400,000 members, or about 13 percent of all trade union members.
Labor-Management Relations
Collective contracts are reached either by direct negotiation between
the parties or with government assistance.
Contracts of the latter type may
be extended by the Minister of Labor to all employers and workers in a given
industry and geographic area. Collective agreements do much to supplement the
codes and laws; for example,
they have provided about 80 percent of French
workers with 4 weeks of paid annual leave instead of the statutory 3 weeks.
In 1963,
there were 2,382 strikes,
involving 1,147,782 workers
in
9,794 establishments and resulting in a loss of 5,991,495 man-days.
This
was the greatest number of conflicts and of workers involved in strikes since
1957.
4

LABOR DIGEST
Ho. 73
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN EAST GERMANY
The Soviet Zone of Germany calls itself the "German Democratic Republic,"
and is accorded diplomatic recognition almost exclusively by the Communist
countries. Located in north central Europe, the Soviet Zone occupies an area
of 41,635 square miles.
With East Berlin,
it had a population in 1964 of
17 million.
Factors Affecting Labor
Political. The East German regime functions as the executor of Commu
nist policy in the Soviet Zone. The instrument of communication is the Social
ist Unity Party of Germany (SED), now headed by Walter Ulbricht. Virtually
every important post in the Government is occupied by an SED member. Theoret
ically, the regime consists of separate executive, legislative, and judicial
branches, with sovereign authority vested in a Parliament (Volkskammer) . In
actuality, power is wielded by Ulbricht as president of the State Council,
the highest Government organ.
Economic. The Soviet Zone of Germany ranks second to the U.S.S.R. as
the largest industrial producer among the Communist countries of Europe. The
Government controls and administers production, distribution, and allocation
of resources for consumption and investment on the basis of annual and longrange economic plans. In 1964, industry contributed nearly 67 percent of the
national income. The principal industrial products are basic chemicals, ma
chinery and equipment,
transportation equipment, and precision and optical
instruments.
In contrast to industry, agricultural production has grown
slowly, primarily because of opposition to collectivization of farms. Apart
from brown coal (lignite) and some nonmetallic metals, the Zone is relatively
poor in natural resources.
Social. About 82 percent of the population belong to the Evangeli
cal Lutheran Church, and about 12 percent are Roman Catholic. Most of the

remaining 6 percent have no denomination,
A 10-year period
general education begins at age 6, Illiteracy is negligible.

of obligatory

Manpower and Employment
Employment and Unemployment. In September 1963,
the labor force of
7,645,972 persons amounted to 45 percent of the population.
The 6,219,126
wage and salary earners constituted 81.3 percent of the labor force.
The
remainder were, in addition to apprentices,
independent economically active
persons such as private employers and professionals.
Of the total
labor
force, 2,784,879 (37 percent) were engaged in industry, 864,364 (11 percent)
in commerce,
387,635 (5 percent) in transportation,
1,260,533 (16 percent)
in agriculture and forestry, 457,719 (6 percent) in building construction,
395,234 (5 percent)
in the crafts (other than the building trades), 132,549
(2 percent)
in the postal services, and 1,363,059 (18 percent) in ’’fields
outside material production.” A declining labor force, because of the effects
of the World Wars on population growth and of the flight of refugees to the
West, economic expansion, and the utilization pf almost all available man
power have resulted in negligible unemployment.
Productivity, Skills, and Training. According to East German statis
tics, productivity per industrial worker increased by 46.2 percent from 1958
to 1963,
through application of a strict method of wage payment relating
earnings of workers to their actual production and making the efficiency of
a few outstanding workers the output standard for all. An additional measure
taken to improve the efficiency and political orientation of the labor force
is ”polytechnic education,” which provides for (a) a special course on ”introduction to socialist production” ; (b) several weeks of work in a factory
or on a farm, and other practical work in each grade, from the first to the
highest school grade; and (c) a pre-university year of practical labor and
other obligatory periods of practical work for university students.
Each graduate of the basic 10-year general school must serve as an
apprentice and simultaneously study atapart-time trade school (Berufsschule)
for at least 2 years, bringing the total obligatory minimum period
in any
type of school up to 12 years. In addition, technical schools
(Fachschulen)
teach skilled trades which cannot be learned in the part-time obligatory
trade school.
A certificate of completion from these schools entitles the
holder to enroll in auniversity or institute of technology to continue study
in his special field.
Labor Standards
Labor Legislation. The 1961 Labor Code regulates matters such as re
sponsibilities of enterprise managements; works collective agreements; wages,
hours, and other conditions of employment; vocational training; paid leave;
labor discipline; settlement of labor disputes; unionism; protection of work
ers1 health; industrial safety; and social insurance.
The code does not
mention the right to strike which is guaranteed in the Constitution.
To the
’’unified trade unions” it assigns the function of teaching socialism, of
representing the interests of wage and salary earners, and of mobilizing the
working class
toward greater productivity and fulfillment of the economic

plans.
The social insurance system is operated by the Free German Trade
Union Federation (Freier Deutscher Gewerkschaftsbund--FDGB) and financed by
contributions from enterprises and workers.
Its program includes maternity,
health, accident, unemployment, old-age, and survivors’ insurance.
Administration and Practice. The Committee for Labor and Wages, at
tached to the Council of Ministers, is responsible for the development of the
wage system, output standards, and manpower policy. The Ministry of Education
is responsible for vocational education and training, the Ministry of Health
for social welfare matters, and the FDGB for control of industrial safety.
Wages, Hours, Prices, and Level of Living
The Labor Code does not fix minimum wages. Official statistics indi
cate that the average monthly earnings of wage and salary earners were 592
East German marks in 1963 (US$27 to US$37, according to the free market
exchange rate). A ’’wage fund” available to each enterprise is fixed by the
long-term economic plans and is based on production quotas and the number
of workers employed.
Its distribution among the personnel is regulated by
agreement between the director of an enterprise and the works trade union
committee.
Hours of work are determined in the national economic plan, primarily
in the light of the level of labor productivity, and are laid down in each
enterprise according to a timetable agreed upon between the director and the
appropriate trade union committee.
Statutory maximum hours do not exist.
Overtime pay, equal to 25 percent of base pay, is paid for work in excess of
the regular hours of work; 50 percent is paid for nonscheduled Sunday work
and
100 percent for work on public holidays. Overtime work is limited to
not more than 4 hours on any 2 consecutive days and 120 hours annually. Work
ers are entitled to 1 day off per week and paid annual leave of 12 work
ing days.
The general level of living in the Soviet Zone has been going up in
recent years but is still below that of West Germany.
Shortages of consumer
goods continue.
The official price index for goods and services for wage and salary
earners’ households increased from 96.7 in 1960 to 97,7 in 1962 and fell
slightly to 97.6 in 1963 (1958=100). During the same period, the average
monthly income grew 6.4 percent, and the index of real wages and salaries in
the socialized economic enterprises showed an increase of 5 percent.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of Government-Party policy with regard to the
working population.
Practically all wage and salary earners are members of
the FDGB, which claims 6,400,000 members. The FDGB is an affiliate of the
World Federation of Trade Unions (WFTU). A number of professional associa
tions, such as artists and scientists, apparently have official ties with
the FDGB.

Labor-Management R ela tio n s
The terms and conditions of employment are regulated by law, and no
collective bargaining as it is known in the West is permitted.
Enterprise
contract agreements are concluded annually by enterprise directors and their
works trade union committees, in which workers pledge to fulfill the produc
tion plan prepared for the enterprise. Disputes committees,
elected by the
workers under surveillance by the appropriate trade union committee, have
jurisdiction over violations of work discipline and disputes. Disputes arising
out of the application of labor law and not settled within the enterprise may
be settled by a district or regional labor court.
The Labor Code is silent about the right to strike, although such right
is guaranteed in the Constitution. Small-scale work stoppages have happened.
The Government appears to prefer to settle stoppages on an ad hoc basis.

LABOR DIGEST
No. 74
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN TH E F E D E R A L R E P U B L IC OF GERMANY
The Federal Republic of Germany (West Germany) is situated in central Europe.
Including West Berlin,
the country covers an area of about 95,700 square
miles and had a population of 58.3 million in 1964.
Factors Affecting Labor
Political. The Constitution of 1949 provides for a bicameral Federal
Parliament which consists of the Federal Council (Bundesrat) , composed of
voting delegates appointed by the Lender (States) legislatures and some non
voting members from West Berlin; and the Federal Chamber of Deputies (Bundes
tag) , which includes voting members elected by universal suffrage and some
nonvoting West Berlin observers.
The Federal President, who is elected
jointly by both Houses of Parliament for a 5-year term, serves as head of
state.
Executive powers are exercised by the Chancellor, who is elected by
the Federal Parliament.
The present coalition government is formed by the
Christian Democratic Union (CDU) , the Christian Social Union (CSU) , and the
Free Democratic Party (FDP). The Social Democratic Party (SPD) is the major
opposition party. The Chancellor is Dr. Ludwig Erhard (CDU).
Economic. The largest constribution to the gross national prduct (GNP)
in 1963 was made by manufacturing (40.5 percent); services, including govern
ment, contributed 22.6 percent;
construction, 7.6 percent; commerce, trans
portation, and communications, 19.5 percent; and the primary industries (ag
riculture, forestry and fishing, and mining) 9.8 percent. The country ranks
third as a steel producer.
Foreign trade accounts for about one-third of
the GNP. Per capita GNP was US$1,771 in 1964.
Social. West Germany is densely populated and highly urbanized.
About 99 percent of the people are ethnic Germans, roughly one-fourth of them
expellees and refugees from former German territories in central and eastern

Europe and from the Soviet Zone of Germany. About 51 percent of the popula
tion belong to the Evangelical Lutheran Church, representing a majority in
northern Germany, and some 44 percent belong to the Roman Catholic Church,
which is dominant in the south. Education is free and compulsory between the
ages of 6 and 18. Full-time attendance is required during at least the first
8 school years. Virtually all the people are literate.
Manpower and Employment
Employment and Unemployment. In 1964, the labor force (including West
Berlin) consisted of 27.1 million persons, or a little less than half of the
population. Of these, 13,022,000 (48 percent) were engaged in manufacturing;
6,121,000 (22.6 percent)
in services; 4,752,000 (17.5 percent)
in commerce
and transportation; and 3,084,000 (11.3 percent)
in agriculture, forestry,
and fishing. A total of 169,000 (0.6 percent) were registered as unemployed.
The gainfully occupied labor force included 21,547,000 wage and salary earn
ers (79 percent), 3,089,000 employers and self-employed persons (11 percent),
and 2,343,000 family helpers (9 percent). To meet manpower shortages, the
Federal Republic has recruited foreign workers, who in 1964 represented about
3 percent of all employed persons.
Productivity, Skills, and Training. The labor force is generally well
trained and highly productive. Industrial production reached the prewar vol
ume early in 1950 and subsequently increased 183 percent by 1963. All young
people who complete only 8 years of full-time compulsory schooling must at
tend a vocational school, whether employed or apprenticed,
through the age
of 18, or until the apprenticeship is completed.
In 1962, 1,614,035 regular
students attended 2,263 vocational schools.
Since most of these students do
enter into apprenticeship, basic training of adults is rarely needed.
Ad
vanced vocational training through a variety of programs is offered adult
workers by many enterprises. The Federal Ministry of Labor may grant allow
ances to trainees undergoing supplementary vocational education, and the
public employment service provides retraining for unemployed persons.
Labor Standards
Labor Legislation. The Lander may enact labor and social security
legislation where no Federal provisions exist.
Employment relations are ba
sically covered by the Civil Code, which regulates the service contract and
is supplemented by the Industrial Code (for industrial laborers), the Com
mercial Code (commercial clerks), the Crafts Code (artisan apprentices), the
Agricultural Labor Code, and a number of other laws.
Various aspects of
individual labor relations,
such as paid leave and protection against dis
charge , are governed by a considerable number of special statutes or principles
established by the Federal Labor Court. Provisions concerning collective
contracts are contained in the Collective Agreements Act of 1949 , as amended.
The basic laws concerning employee representation in individual enter
prises are: The 1951 Law on Codetermination of Employees in Managing Boards
and Supervisory Boards of Enterprises in the Mining, Iron, and Steel Indus
tries and its 1956 amendment regulating the right to codetermination in holding
companies in these industries; the Enterprise Constitution Law of 1952, which

covers works councils at the enterprise level and codetermination in enter
prises not fal ling under the special provisions for the mining, iron, and steel
industries; and the 1955 Law on Staff Representation in the Public Service.
The major Federal social legislation includes the 1961 Law to Promote
the Accumulation of Capital by Employees, as amended, which provides tax
incentives for certain benefits paid by employers to employees in addition to
their regular compensation, provided the benefits are earmarked for use in
building up the employees1 personal capital; the 1964 Children's Allowance Act,
amended in 1965 to add educational allowances; and social insurance laws pro
viding health, accident (workmen's compensation), unemployment, old-age, and
survivors' insurance. In addition, there are provisions for public assistance
and social aid.
Administration and Practice. At the Federal level, al 1 aspects of man
power and labor affairs are handled by the Ministry of Labor,
except for
education, which is the exclusive concern of the Lender governments.
The
administration of Federal labor legislation is also largely delegated to the
latter. A tripartite Federal Institute for Labor Placement and Unemployment
Insurance operates under the general supervision of the Labor Ministry. Under
the Labor Courts Act of 1953, special courts have exclusive jurisdiction in
civil suits involving labor matters.
The health, accident, and pension
branches of the social insurance system are administered by a large number of
specialized insurance carriers that are regionally or departmentally decentral
ized; the executive bodies of these self-governing ins ti tutions usual ly inc lude
equal numbers of employers and employees.
Wages, Hours, Prices, and Level of Living
Wages are determined by individual or collective bargaining. In 1964,
average gross hourly earnings of industrial wage earners were DM3.87 (US$0.97),
and average gross monthly earnings of salaried employees in industry and com
merce were DM784 (US$196). According to the Federal Statistical Office, cash
supplementary payments average 44.4 percent of total wages and salaries;
legally required contributions to social insurance account for about one-third
of these payments.
Legislation provides for a maximum 8-hour workday and a standard 48hour workweek. Many collective agreements, however, provide for fewer hours.
In 1963, weekly hours actually worked by industrial wage earners averaged
40.2. Union policy aims at gradual reduction of the workweek to 40 hours and
a 2-day weekend. A statutory premium of 25 percent of regular pay is required
for overtime.
Collective agreements frequently provide for overtime pay up
to 50 percent. The statutory minimum paid annual leave is 15 working days up
to age 35, and 18 working days thereafter. Many collective agreements provide
for longer leave, based mainly on seniority.
Average wages and salaries rose 168 percent from 1950 to 1963. Aver
age real earnings of all employees rose 104 percent,
and average real wages
in industry,
110 percent.
Private consumption per resident (in constant
prices) increased 106 percent, indicating an appreciable improvement in liv
ing standards.

Employer O rgan ization s
Employers1 associations handle labor problems,
especially collective
bargaining, in an industrial or geographic area. The Confederation of German
Employers’ Associations (BDA) comprises the majority of employers' associa
tions and acts as their spokesman on labor, social, and economic matters.
Labor Organizations
Of the 21.5 million wage and salary earners, about 8 million,
or 37
percent, are members of trade unions.
With almost 6.5 million members,
or
about 81 percent of all organized wage and salary earners,
the German Trade
Union Federation for the area of the Federal Republic and Berlin (Deutscher
Gewerkschaftsbund--DGB) is by far the strongest trade union federation.
The
DGB is the successor to the separate politically oriented trade union feder
ations which existed before the Hitler era.
It has 16 member federations
which are integral parts of the central body, created by statute in 1949.
Approximately 500,000, or one-third of the white-collar workers, have formed
their own independent federation,
the German Salaried Employees' Union
(Deutsche Angestellten Gewerkschaft--DAG), while most of the other whitecollar workers belong to DGB affiliates.
The DGB is a member of the Inter
national Confederation of Free Trade Unions (ICFTU). The DAG application for
ICFTU membership is still pending.
The Confederation of Christian Trade Unions of Germany
Gewerkschaftsbund Deutschlands--CGB) numbers 233,000 members.
in 1959 when three small trade union federations amalgamated;
with the International Federation of Christian Trade Unions
Internationale des Syndicats Chretiens--CISC) the same year.

(Christlicher
It was formed
it affiliated
(Confederation

The German Association of Civil Service Officials (Deutscher Beamtenbund--DBB) reports 692,279 members.
Labor-Management Relations
About 17 million wage and salary earners out of a total of approximately
22 million are covered by collective agreements. Under traditional procedure,
the regional office of a union and the corresponding employers' association
for the industry agree upon wages and conditions of employment. The resulting
contracts cover al 1 member employers and employees in the region. The Minister
of Labor may extend an agreement to nonmembers in the region. Wages and em
ployment conditions more favorable than those established by the union contract
are common, especially in larger firms.
Labor-management relations were comparatively free from serious conflic ts for some years following World War II. Growing union demands for higher
wages, more fringe benefits,
shorter hours,
and other changes, and stiffer
employer resistance to these demands, have more recently resulted in firmer
collective bargaining positions which have led to some serious strikes. The
years 1962 (450,000 working days lost) and 1963 (878,000 working days lost)
were characterized by high strike activity; however,
1964 showed a postwar
low of 16,711 man-days lost through strikes.

LABOR DIGEST
No. 75
UNITED STATES DEPARTMENT OF LABOR
1965

BUREAU O F LABOR ST A TISTICS

LABOR CONDITIONS IN G R E E C E
The Kingdom of Greece is situated in the southernmost part of the Balkan
Peninsula. It has a total area of 51,200 square miles, including 13,500 square
miles of islands in the Ionian and Aegean Seas. The population was 8,450,000
in mid-1963.
Factors Affecting Labor
Political. Greece is a constitutional monarchy with a unicameral
legislature, whose representatives are elected by universal suffrage for 4year terms. Executive power is vested in a Cabinet headed by the Prime Minis
ter. The main political parties are the Union of Center (EK), a coalition of
smaller parties; and the National Radical Union (ERE).
Economic. The agricultural sector of the economy accounts for 85 per
cent of total exports and 27 percent of the gross national product (GNP).
Cereals, olives, and tobacco are the main crops, while citrus and deciduous
fruits are becoming increasingly important.
Approximately 26 percent of
the GNP comes from manufacturing, mining, and construction; 11 percent from
wholesale and retail trades; 8 percent from public administration and defense;
and 28 percent from other activities. Although crop production in most areas
has been sufficient to meet internal demand,
the import of foodstuffs con
tinues to account for asignificant part of Greece*s trade deficit. A 10-year
(1960-70) development program calls for increasing the per capita income,
providing for better distribution of income, and reducing unemployment. Per
capita income is increasing, but the 1963 estimate of US$456 is still below
the level o f the advanced Western European countries.
Social. A total of 96 percent of the population adheres to the Greek
Orthodox Church, and 92.8 percent are of Greek extraction. Turks represent
3.8 percent of the population. Modern Greek is the language of the country,

but English and French are widely spoken. About 82 percent of the population
are literate. Education is free and compulsory for children between the ages
of 6 and 14.
Manpower and Employment
Employment and Unemployment. In 1961, the total labor force was about
3,663,000, or 44 percent of the total population. Of this number, about 1.95
million (53 percent) were in agricu1ture; 700,000 (19 percent) were craftsmen,
miners, quarrymen, process workers, and general laborers; 360,000 (10 percent)
were in clerical and sales occupations; 240,000 (7 percent) were in service
occupations and the Armed Forces; 160,000 (4 percent) were in technical, pro
fessional, administrative,
executive, and managerial occupations; 110,000
(3 percent) were in transportation and communications occupations; and 140,000
(about 4 percent) were in other occupations.
Unemployment and underemployment affect over a fourth of the labor
force.
It is estimated that 1 million workers, both urban and agricultural,
work less than 100 days inayear. This situation, coupled with the opportunity
for higher wages in other parts of Europe, has encouraged emigration of skilled
workers and young workers.
The total number of workers who left Greece in
1963 amounted to 100,000, and 339,000 people have emigrated since 1958. This
number is practically equal to the entire natural growth of the population.
Productivity, Skills, and Training. Productivity tends to be low in
agriculture due to lack of mechanization, fragmentation of farmland (90 per
cent held in parcels of less than 12 acres), and limited arability.
There
are shortages of managerial and technical workers in some areas. A 1958 study
found that only 13,5 percent of the total labor force had secondary or univer
sity training. Progress is being made, however,
to increase the number of

w ork ers r e c e iv in g h ig h e r e d u c a tio n and advanced t r a in in g . Ass is t a n c e f o r p o s t

graduate training is provided by the State Scholarship Foundation, while
vocational training is available through private, governmental, or quasigovernmental programs.
Labor Standards
Labor Legislation. In June 1964, the Greek Parliament called for the
compilation of a labor code.
Existing legislation provides for a maximum
workweek of 48 hours in 6 days of 8 hours each, applicable to most industry
sectors. The extent of overtime is subject to special regulation by the Minis
try of Labor.
Annual vacations with pay are provided by law, varying from 8
to 12 days for those of at least 1 year*s employment, and supplemented by 1
day for every 6 months of employment over 1 year to a maximum of 26 days
annually. In general, the employment of minors, defined as persons under the
age of 14, is prohibited.
Standards of hygiene and safety in industry have
been established by legislation. Social insurance is compulsory and adminis
tered by the Social Insurance Foundation and the Employment and Unemployment
Insurance Fund.
Administration and P ractice. Labor law is administered by the Ministry
of Labor.
The main components of the Ministry are the Directorates General

for Labor and Social Insurance.
The Ministry is striving for more efficient
implementation of existing labor legislation.
Wages, Hours, Prices, and Level of Living
The approximate average daily wage for industry in the Athens-Piraeus
area ranged in 1963 from $2.43 to $2.80 for men, $1.47 to $1.76 for women, and
$0.73 to $1.85 for apprentices. The minimum monthly salary for men in 1964 was
$53.33; for women, $43.33. Women are paid generally at a lower rate than men.
Overtime pay varies according to circumstances, from 25 percent to 100 percent
above normal hourly rates. Practice requires a bonus payment of an additional
month's salary or its equivalent in daily wages at the end of each year, and a
half-month’s salary or its equivalent in daily wages at Easter. A comprehensive
social insurance program covers about 90 percent of all workers and employees.
The cost-of-living index in 1964 was 110 (1958=100). Wages reportedly
have kept up with or ahead of cost-of-living increases.
Employer Organizations
There are two central employers’ organizations-- the League of Greek
Industrialists, affiliated with the International Organization of Employers,
and the General Federation of Greek Traders and Artisans. They negotiate and
sign national agreements on behalf of employers.
Labor Organizations
Organized labor claims 564,325 members. It represents about one-third
of the industrial .labor force.
About 385,000, or two-thirds of the trade union membership, be long to
the General Confederation of Greek Labor (Geniki Synomospondia Ergaton Ellados-GSEE). Frictions between various factions within the GSEE,aswell as between
the GSEE and the newly elected Government,
led in 1964 to legislation which
authorized the Government to appoint a provisional administration of the GSEE.
Structurally, the GSEE, a member of the International Confederation of Free
Trade Unions (ICFTU), is organized on both an industry and an area basis.
The Central Administration of the Unions of Civil Servants
Diokisis Enosios Demosion YpalliIon--ADEDY) has 85,000 members.

(Anotati

Labor-Management Relations
Under Greek law, collectively bargained agreements are concluded be
tween one or more employers' organizations and wage earners'
organizations,
and are then binding on the entire industry.
In the event that agreement is
not reached through negotiation,
the organizations involved may request the
intervention of the Ministry of Labor, which, through mediation, will attempt
to bring about a settlement.
If mediation fails, the dispute is referred to
tripartite arbitration panels whose decisions are binding upon both parties.
The Minister of Labor may veto any collective bargaining agreements which he
deems to be contrary to the ’’economic or social policy of the Government."

LABOR DIGEST
No. 76
UNITED STATES DEPARTMENT OF LABOR
1965

BUREAU O F LABOR ST A TISTICS

LABOR CONDITIONS IN HUNGARY
Hungary, a landlocked country situated in central Europe, at the beginning of
1965 had a population of 10 million and an area of 35,912 square miles.
Factors Affecting Labor
Political. Under Communist rule since 1947, Hungary calls itself a
People's Republic.
Its 1949 Constitution is patterned after that of the So
viet Union. The Hungarian Socialist Workers’ (Communist) Party controls all
political, economic, and social life; it approves the single list of candidates
presented to the people for election to the Hungarian Parliament. The Par
liament is named the highest authority of the state by the Constitution and
nominally elects the executive and administrative bodies (including the Presidential Council of the People’s Republic and the Council of Ministers).
Premier Janos Kadar has been head of the Government since 1956 and of the
Party since 1957. Hungary is a member of the 1955 Soviet bloc's Warsaw Pact
(a 20-year mutual defense treaty) and of the bloc's Council of Mutual Economic
Assistance (CEMA).
Economic, Hungary’s planned economy is patterned after that of the
Soviet Union.
Its socialized sector in 1963 accounted for 98.4 percent of
the country's industrial production. Goals for the production of capital and
consumer goods, for manpower utilization, and for labor productivity are set
in the annual and 5-year economic development plans. Under these economic
plans, Hungary has changed from a primarily agricultural country to an indus
trial-agricultural one; in 1963, industry accounted for 62 percent of the
national income. The main industries are chemical fertilizers, coal, steel,
bauxite, machinery, and textiles; the main crops are corn,
sugar beets, and
wheat. Most of the land hAs been socialized,
the farmers becoming estab
lished on collective farms. Nonagricultural private enterprises which employ
no more than nine workers are permitted to operate, but employers are heavily
taxed according to the number of employees.

As a member of the CEMA, the country has been dependent on the Soviet
bloc, especially the Soviet Union, for the trade necessary for its economic
growth; however, Hungary recently has turned to the West for purchases of major
industrial equipment and with proposals for the establishment of joint enter
prises with West European firms.
Social. The population is predominantly Hungarian; there are about a
half million people of German origin and also small Slovak and Yugoslav m i
norities (about 100,000 each). The principal religions are Roman Catholicism
(over 6 million) and Protestantism (about 3 million). Most of the adult pop
ulation is literate;
school attendance is compulsory and free for children
aged 8 to 16,
Manpower and Employment
Employment and Unemployment. In 1964,
there were approximately
4,858,000 economically active persons, about 48 percent of the population.
About 32 percent were employed in agriculture;
31 percent in industry;
8.3
percent in public administration
(including health and education); 7.5 per
cent in commerce; 6.3 percent in transportation and communications; 5.8 per
cent in construction; and the remaining 9.1 percent in other sectors of the
national economy.
A system of public employment offices has been established. The regime
claims that there is no unemployment in the country; however, seasonal unem
ployment has occurred.
In some economic sectors, underemployment may exist
as evidenced by the decree of January 1965, which directed industrial enter
prises to reduce their labor force by 3 percent.
Productivity, Skills, and Training. Shortages of skilled manpower,
underemployment,
and lack of discipline have contributed to the relatively
low level of productivity that characterizes Hungarian industry. Productivity
reportedly increased at the annual rate of 4.5 percent in the decade 195060;
in 1964, the increase was 4.6 percent. The Government established an
incentive system of wage scales and premiums in 1961, and recently has been
introducing higher production quotas for workers and tightening labor disci
pline. In 1963, production councils were established in al1 state enterprises
to promote efficiency. There are vocational high schools and evening schools
in the larger cities and in some densely populated agricultural areas; these
schools train workers for all sectors of the economy. Children who reach the
age of 14 may conclude a formal contract of apprenticeship with an industrial
or commercial establishment. On the college level,
there are evening and
correspondence courses for students who have full-time jobs. Universities
in accepting full-time students give preference to candidates with several
years of work experience.
Labor Standards
Labor Legislation,, Labor legislation in Hungary has the fundamental
purpose of controlling the labor force so as to achieve the regimefs economic
objectives. The Labor Code of 1951, as amended in 1953, declares that work
is a matter of duty for every able-bodied citizen and that every citizen has

the right to work, to change his job, to an annual vacation,
to health pro
tection, and to social insurance benefits.
It contains provisions relating
to hours of work, days of rest and leave, individual work norms
(production
quotas), wage rates, the protection of women and young workers, disciplinary
penalties against workers, and to a workbook which must be presented by every
worker when applying for a job. It also provides for aconciliation committee
on the factory level to settle workers' grievances or disputes;
appeals can
be made to the district court. In December 1964, a decree directed the with
holding of bonuses and other benefits in the cases of workers changing jobs
without good cause, as defined in the decree.
Administration and Practice. The Ministry of Labor and the National
Trade Union
Council administer labor legislation. The Ministry of Labor
prepares manpower plans , maintains the program for a nationwide labor exchange,
supervises the apprenticeship programs, and establishes work norms, wage
scales, and overall production quotas. The Trade Union National Council
administers social insurance through the National Institute of Social Insur
ance .
On the local level, the basic party organization and the trade union
representatives in a factory or establishment theoretically are responsible
for checking on the enforcement of labor legislation. The Party-appointed
management of a factory or establishment is responsible for enforcing the
rights and the obligations (as to production) of its workers under the Labor
Code. The factory or local conciliation committee handles the complaints of
workers who feel that their labor rights have been violated. A system of
social voluntary courts (with juries) handles disciplinary, work safety, and
compensation cases.
Wages, Hours, Prices, and Level of Living
The Labor Code prescribes an 8-hour workday and a 48-hour workweek for
most workers. There are 7 legal holidays in the year. Overtime is limited
to 8 hours a month except in urgent or seasonal work; however,
in practice
there is evidence of much overtime. All workers are guaranteed paid annual
leave of 12 to 24 workdays, depending on years of service and other factors;
they are also paid for sick leave.
The Government controls wage rates.
In 1964,
the average monthly
earnings in industry were 1,761 forints (US$75, at the tourist exchange rate);
in construction, 1,816 forints (US$77.34); in trade, 1,557 forints (US$66.31);
and in state-owned agriculture, 1,509 forints
(US$64.27). The largest sup
plement is the family monthly allowance, which ranges from 75 forints (US$3.10)
to 720 forints (US$30.63), depending on the number of children and on whether
the father or the mother is the -family head. Other supplements are free
medical care, disability pensions, and scholarships to workers.
The prices of consumer goods and services are controlled by the Gov
ernment. The Government claims that increases in productivity raised the real
wages of Hungarian workers by 56.4 percent during the period 1949-60, and 5
to 6 percent in 1964. However, by Western standards, consumer goods are ex
pensive. For example, in terms of worktime required, to purchase a low-priced

(1,180 forints) man's woolen suit would require about 3 weeks of work by the
average industrial worker.
Because of the wartime destruction,
the demands
of industrialization, and the expected population growth, the Government has
adopted a 15-year (1961-75) housing construction program (1 mi 1lion dwellings)
to relieve the critical housing shortage.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of Government-Party policy with regard to the
working population. The National Trade Union Council (Szakszervezetek Orszagos Tanacsa--SZOT) claims 2,824,000 members. The SZOT is an affiliate of the
World Federation of Trade Unions (WFTU). A number of professional associa
tions and nonworker groups, such as artists, chemical and construction work
ers, physicians and printers, are active in the private sector of the economy,
but apparently have some official ties with the SZOT.
Labor-Management Relations
Collective bargaining in the Western sense does not exist in Hungary,
for the Government fixes wage rates, hours of work, and working conditions.
However, annual agreements are concluded between the managements of various
enterprises and their trade unions. These agreements have the primary pur
pose of stimulating the fulfillment of production plans and the secondary
one of improving working and living conditions.
Strikes are not legal; the minimum penalty for inciting a strike is 5
years' imprisonment.
Disputes over pay, hours of work, job assignments, and
working conditions which are not satisfactority settled by the conciliation
committees within enterprises can be appealed to district conciliation com
mittees; in certain cases, appeals can be made to the public courts.

LABOR DIGEST
No. 77
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN ICELA N D
Iceland is an island
located in the north Atlantic Ocean.
It has a total
area of about 40,000 square miles, and 3,730 miles of coast line.
Its popu
lation was 187,000 in 1963.
The independent Republic of Iceland has a 60-member bicameral Parlia
ment (Althing) , elected by direct popular vote on the basis of proportional
representation.
Its members choose from among themselves the members of the
upper House. Executive power is exercised by the Prime Minister, who is se
lected by the President with the approval of the Althing. The present Govern
ment is formed by a coalition of the Independence and Social Democratic par
ties.
The Prime Minister is Bjarni Benediktsson of the Independence Party.
The official language is Icelandic; over 96 percent of the population
belong to the Evangelical Lutheran Church. Education is compulsory for 8
years, from age 7. There is almost no illiteracy.
Fish and fish products account for over 90 percent of the value of
total exports. Livestock and dairying activities,
in addition to fishing,
provide Icelanders with most of their food needs.
Iceland must rely heavily
on imports of industrial raw materials and semimanufactured goods for its
small-scale manufacturing industries.
In 1963, per capita GNP was US$1,713.
In 1960, the labor force totaled 73,000 persons, or 41 percent of the
population.
About 19,000 persons (27 percent of the labor force) were in
manufacturing; 18,000 (25 percent) in agriculture, forestry, hunting, and
fishing; 12,000 (16 percent) in services; 9,000 (12 percent) in commerce;
8,000 (11 percent) in construction; 6,000 (8 percent) in transport, storage,
and communications; and 1,000 (1 percent) in electricity, gas, water, and
sanitary services. Between 80 and 85 percent of the labor force were wage
and salary earners.

Productivity has increased appreciably in recent years.
The Ministry
of Education offers vocational and technical instruction to students between
the ages of 14 and 18 years. At age 16 these students may become apprentices
in the handicrafts.
The Ministry directs a system of specialized schools
that provide training for almost every trade and occupation in Iceland.
Wages, hours, and other employment conditions are determined through
industrywide bargaining between the central organizations of labor and man
agement.
The contract terms must be ratified by the local union affiliates
concerned.
Hours are not regulated by statute.
The generally prevailing
workweek is 44 hours, and the workday 8 hours. Overtime pay is usually 50
percent of the hourly rate. Average hourly earnings rose from 21.91 kroner
(US$0.51) in 1960 to 36.18 kroner (US$0.84) in July
1964, an increase of
about 65 percent. Wages are geared to the official cost-of-living index,
which rose by almost the same ratio during that period.
Wages and salaries
are supplemented by considerable family, and maternity allowances.
Social
insurance covers old age, health, accident, and disablement.
Of the about 60,000 wage and salary earners, 38,795, or about 65 per
cent, are members of trade unions.
Of the organized workers, over 30,000
(77 percent)
are concentrated
in the Icelandic Federation of Labor (IFL)
(Alihydusamband Islands--ASI).
The IFL is a member of the International
Confederation of Free Trade Unions (ICFTU). Left-wing Socialists and Commu
nists dominate a coalition elected to top offices of the federation. Unions
in the capital, Reykjavik, and its environs have formed a council which rep
resents more than half of the IFL membership.
Three International Trade Secretariats have affiliates in Iceland:
The International Federation of Building and Woodworkers,
the International
Graphical Federation, and the International Transport Workers' Federation.
Labor disputes arising out of collective bargaining may be settled by
voluntary conciliation at the Ministry of Social Affairs. Disputes concern
ing contract violations are subject to compulsory arbitration by the Arbitra
tion Court.
Strikes have increased in recent years,
especially in connec
tion with demands for higher wages.

LABOR DIGEST
No. 78
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABO R STA TISTICS

1965

LABOR CONDITIONS IN IRELAN D
The Irish Republic forms the southern part of an island west of Great Britain,
It covers an area of 26,599 square miles, and had a population of 2.8 million
in 1963.
Factors Affecting Labor
Political. The Constitition of 1937 provides for a bicameral national
Parliament, which consists of a House of Representatives
(Pail Eireann) ,
whose 144 members are elected by popular vote on the basis of proportional
representation,
and a Senate (Seanad Eireann) of 60 members,
elected from
panels of candidates with experience in various fields,
such as government,
industry, and labor. The President serves as head of state. Executive au
thority is exercised by a Prime Minister and a Cabinet. The leading parties
are Fianna Fail (Republican), Fine Gael, and the Labour Party. Prime Minis
ter Sean F. Lemass belongs to Fianna Fail.
Economic. The economy is based mainly on agriculture. Livestock and
livestock products account for over three-fourths of the gross value of farm
output and are the country's most important exports. Manufacturing industries
are based primarily on the processing of agricultural products. Other manu
facturing industries, notably clothing, textiles and woolens, metals and en
gineering, automobile assembly, and chemicals, which depend largely upon im
ports of raw materials, have been built up in recent years. In 1963, industry
contributed 30.6 percent; agriculture 21.2 percent; distribution and trans
port 15.8 percent; finance,
insurance, and services 20.9 percent; public
administration and defense 5.8 percent; emigrants' remittances
1.9 percent;
and other foreign income 3 08 percent of the national income. The per capita
gross national product was US$778 in 1963.
Social. The predominant religion is Roman Catholic. English is the
universal language.
Since the establishment of the Irish Free State in 1922,

the Government has sought to reestablish Irish (or Gaelic)
as an equal lan
guage, but has had only limited success.
Education is free and compulsory
between the ages of 6 and 14. Vocational education is available at a nominal
fee and is widely used to age 16.
Manpower and Employment
Employment and Unemployment. In April 1964, about 1,117,000 persons,
or 40 percent of the total population, were in the labor force, including
1.059.000 employed.
Of these,
352,000 (33 percent) were in agriculture,
196.000 (18 percent) in manufacturing, 160,000 (15 percent) in trade and fi
nance, 72,000 (7 percent) in building and construction,
54,000 (5 percent)
in transport and communication, 41,000 (4 percent) in public administration
and defense,
and 184,000 (18 percent) in other nonagricultural activities.
About 60 percent of all the employed were wage and salary earners. Most of
the remainder were self-employed in agriculture, frequently on small holdings.
The unemployment rate was 5.5 percent in June 1965.
Productivity, Skills, and Training. A National Apprenticeship Board,
established under the Apprenticeship Act of 1959, has prescribed regulations
for training in a limited number of trades. Vocational training for young
persons is also provided at agricultural and technical schools operated by
the Government.
The emigration of many skilled workers has contributed to
shortages of skilled and semiskilled workers in the building trades, in en
gineering, and in the metal industries, although some emigrants have been
returning to take up jobs in newly established industries.
Labor Standards
Labor Legislation. The right to organize is regulated by the Trade
Union Act of 1941 and the Industrial Relations Act of 1946. The employment
conditions of wage and salary earners are regulated by the Conditions of Em
ployment Act of 1936, as amended, and by special legislation concerning agri
cultural and other specific categories of workers. The Factories Act of 1955
sets standards for industrial safety.
The Social Welfare Act of 1952, and
the Workmen's Compensation Acts of 1897-1953
provide for health insurance,
unemployment insurance, and pension plans for widows and orphans.
The In
surance (Intermittent Unemployment)
Act of 1942 compensates workers in the
painting, civil engineering, and building industries for loss of earnings due
to wet weather.
The Agricultural Wages Acts of 1936 and 1945 provide agri
cultural workers with a minimum wage, annual leave with pay, and one half
holiday per week.
Administration and Practice. The Department of Social Welfare operates
a free employment service, registers workers for unemployment insurance or
assistance,
and supervises the national health insurance and social assist
ance services. The Department of Industry and Commerce licenses trade unions
and enforces labor legislation. The Labour Court investigates labor disputes,
makes nonbinding recommendations for their settlement,
and provides a con
ciliation and mediation service. Joint industrial councils, authorized by
legislation, exist in a variety of industries and provide the usual forum for
industrywide collective bargaining.

Wages, Hours, P r i c e s , and Level of Living
In December 1963, average hourly earnings of workers were 4 shillings
2.5 pence (US$0.58) in manufacturing; between US$0.44 and US$0.60 in agri
cultural processing; US$0.57-US$0.85 in beverages ; US$0.70 in tobacco; US$0.44US$0.56 in textiles; US$0.35-US$0.42 in clothing; US$0.51-US$0.52 in wood and
furniture; US$0.60-US$0.72 in paper, printing , and publishing; US $ 0 .39-US$0.67
in leather and leather products; US$0.47-US$0.74 in chemicals; US$0.59-US$0.64
in nonmetallic mineral products; US$0.52-US$0.94 in metal products; and
US$0.66 in mining and quarrying.
Women1s earnings in many industries are
from 50 to 60 percent of mens1 earnings.
Legislation provides for a maximum 9-hour workday and 48-hour workweek
for industrial workers, and an 11-hour day, 48-hour week for retail employ
ees. In practice,
the normal workweek in many establishments is substan
tially below the statutory limits. Collective agreements currently provide
for a 42%-hour workweek in Dublin, and a 44- to 45-hour workweek in the Prov
inces. A statutory minimum premium of 25 percent must be paid for overtime
work, but this may be exceeded by collective bargaining agreements.
Average wages have been increasing in recent years.
In January 1964,
a national agreement boosted industrial wages by 12 percent. Consumer prices
rose 9 percent between February 1964 and May 1965.
Employer Organizations
The majority of large employers and many smaller ones belong to the
Federated Union of Employers
(FUE). Other employer organizations are the
Federation of Master Builders and Contractors of Ireland; the Retail Grocers,
Dairies and Allied Trades Association; the Guild of Master Bakers; and the
Limerick Employers' Federation.
The FUE advises
its members on industrial
relations matters, represents them in Labor Court procedures, and takes care
of their interests vis-a-vis government agencies.
The FUE belongs to the
International Organization of Employers and to the Council of European In
dustrial Federations.
Labor Organizations
The Irish Congress of Trade Unions (ICTU) was formed in 1959 through
the merger of the Congress of Irish Unions (CIU)
and the Irish Trade Union
Congress (ITUC).
Some of its affiliates have members both in the Republic
of Ireland and in Northern Ireland, which is part of the United Kingdom. The
ICTU, which has no international affiliation, represents about 450,000 wage
and salary earners. Although no breakdown is available on the distribution
of the membership between the Republic of Ireland proper and Northern Ireland,
it is estimated that about 75,000 ICTU members are in Northern Ireland.
Eight International Trade Secretariats have affiliates among ICTU
unions.
They are the International Federation of Commercial, Clerical and
Technical Employees; the International Union of Food and Allied Workers'
Associations; the International Graphical Federation; the International Fed
eration of Plantation, Agricultural and Allied Workers; the Postal, Telegraph

and Telephone International; the Public Services International; the Interna
tional Shoe and Leather Workers* Federation; and the International Transport
Workers 1 Federation.
Labor-Management Relations
Wages and other conditions of employment are generally determined by
collective bargaining.
Collective employment agreements may be registered
with the Labour Court and become legally binding on all workers and employers
in the particular industry concerned. In certain industries, such as tailor
ing,
tobacco, sugar confectionery, and creameries, minimum wages are fixed
by the Labour Court on the recommendation of statutory wage boards known as
joint labor committees.
When collective bargaining breaks down,
the court
can offer its services for voluntary conciliation and arbitration.
Employer-employee relations are generally harmonious, and most dis
putes are settled peaceably. Nevertheless,
strikes often occur over inter
pretation of the terms of a national agreement. Wildcat strikes as such are
not illegal and are quite frequent. A trade union can be directed by Govern
ment order not to support workers who strike in an effort to change a regis
tered employment agreement.
In 1964, 545,384 man-days were lost due to 87
strikes, compared with 233,617 in 70 strikes in 1963.

LABOR DIGEST
No. 79
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN IT A L Y
Italy is situated in the south of Europe.
Including the islands of Sicily
and Sardinia, it covers an area of 117,000 square miles, and had a population
of 52.4 million at the end of 1964.
Factors Affecting Labor
Political. Italy is a constitutional republic.
The Constitution,
which came into force in 1948, established a bicameral Parliament consisting
of a Chamber of Deputies and a Senate, both elected by direct popular vote on
the basis of proportional representation.
Executive power is exercised by
the Prime Minister.
The present coalition Government is formed by the domi
nant Christian Democratic and the Republican, Social Democratic, and Social
ist parties.
The Prime Minister, Aldo M oro, belongs to the Christian Demo
cratic Party, and the President to the Social Democratic Party.
Economic. In 1964, 32 percent of the gross national product (GNP) was
derived from industry; 13 percent from agriculture; 7 percent from construc
tion; 26 percent from commerce, transportation, banking, insurance and other
services; 11 percent from public administration; and 11 percent from miscel
laneous (indirect business taxes, net foreign investment, etc.). Having few
natural resources, Italy must import many raw materials and some foods. Major
export articles are machinery, vehicles, textiles and fibers, fruit, vegeta
bles, petroleum,
and chemical products.
In 1964,
total GNP was US$49.5
billion and per capita GNP, US$950.
Social. The population is predominantly Roman Catholic.
The largest
ethnic minority groups are 250,000 German-speaking people in the north and
200,000 Slavs in the Trieste area. Education is free and compulsory for
children between the ages of 6 and 14. Illiteracy is estimated at less than
10 percent of the population.

Manpower and Employment
Employment and Unemployment, In May 1964,
the labor force totaled
20.4 million, or 40 percent of the population. Of these,
19.6 million were
employed--7,950,000 (40.5 percent) in industry; 6,405,000 (32.7 percent)
in
commerce, transportation, and services; and 5,261,000 (26.8 percent) in agri
culture. Of the employed labor force,
12,698,000 (62.8 percent) were wage
and salary earners, 4,654,000 (23.0 percent) were self-employed, and 2,864,000
(14.2 percent) were family workers.
The unemployment rate was 2.2 percent.
In the past 10 years,
several million Italians have gone abroad to work,
mainly in France, West Germany, and Switzerland.
Productivity, Skills, and Training. Labor productivity has risen ap
preciably in recent years. Basic vocational training is given to students
aged 11 to 14 under the public school system. Thereafter, young persons may
either enter into apprenticeship, or they may receive further theoretical and
practical training at vocational and technical schools operated by the Ministry
of Education and other public bodies and also, under Government supervision,
within industry,
or by trade unions and other private groups.
Currently,
almost 70 percent of all vocational trainees
(over 1 million in 1963)
are
apprentices. The law specifies that they must be given paid time off to attend
government-financed day classes for theoretical training. The Ministry of
Labor and Social Welfare subsidizes and supervises vocational and technical
courses given at privately operated training centers or by large industrial
establishments for young people (mostly those over 18) and unemployed adults,
many of them former agricultural workers in transition to industrial occupa
tions.
To adapt the labor force to the needs of a rapidly changing economy,
the Government has initiated accelerated (2 to 8 months) training courses for
unskilled unemployed and semiskilled workers wishing to improve their qualifi
cations, as well as refresher or advanced courses for skilled workers,
and
retraining for persons in need of acquiring new skills,
including those who
intend taking employment abroad.
Labor Standards
Labor Legislation. Hours of work and overtime pay are regulated by
law. The Civil Code of 1942 recognizes the worker’s right to paid
leave
and to advance notice and severance pay in the event of dismissal. Industrial
safety regulations are prescribed by law.
Wage and salary earners, arti
sans, and agricultural workers are covered by a comprehensive compulsory
social insurance system, including family allowances.
Administration and Practice. The Ministry of Labor and Social
Secu
rity has jurisdiction in virtually all labor matters including research and
statistics,
industrial safety,
labor organization, collective bargaining,
labor law, labor disputes, vocational training, apprenticeship,
employment
service, labor migration, and social security. The Labor Ministry is repre
sented on committees planning for economic development.
The National Social
Insurance Institute under the control of the Labor Ministry administers social
insurance and public welfare.
Sickness insurance is administered by the Na
tional Sickness Insurance Institute, and workmen's compensation by the Nation
al Employment Accident Insurance Institute.

Wages, Hours, P r i c e s , and Level of Living
In September 1964,
the average hourly earnings of wage earners in
all industry were 383 lire (US$0.61); in mining, 457 lire (US$0.73); manu
facturing,
373 lire (US$0.60); and electricity, 825 lire (US$1.32). Within
manufacturing, average hourly earnings varied from 246 lire (US$0.39) in the
clothing industry to 462 lire (US$0.74)
in transportation equipment. Wage
supplements, including family allowances, special bonuses, paid leave, social
insurance contributions, and meal allowances, were estimated to average 74
percent of hourly earnings in 1964.
The law provides for a standard 8-hour workday and 48-hour workweek.
A statutory overtime premium of not less than 10 percent of the basic rate
must be paid for work exceeding 8 hours a day. Collective agreements fre
quently provide for substantially higher overtime pay. The length of paid
annual leave is determined by collective bargaining--usually 2% to 3 weeks,
depending on seniority.
From 1961 to December 1964, average hourly earnings in all industry
rose from 252.39 lire (US$0.41) to 408.40 lire (US$0.65), an increase of over
50 percent. The cost-of-living index rose 22.8 percent during the same period.
As a percentage of consumer expenditures, Italians spent 47.5 percent on food
and beverages; on housing, fuel and electricity, 10.4 percent; clothing, 9.4
percent; transportation and communications, 8.7 percent; durable and non
durable goods (household, maintenance, etc.), 6.3 percent; and 17.7 percent
on recreation, medical care, and miscellaneous items.
Employer Organizations
The majority of employers are organized in industrywide associations
affiliated with the General Confederation of Italian Industry (Confindustria) .
Some large industrial employers are unaffiliated.
In agriculture, many em
ployers belong to associations connected with the General Confederation of
Italian Agriculture, and in commerce to the Italian General Confederation of
Commerce.
The confederations represent the interest of their members vis-avis the Government, and often negotiate master contracts for their associates.
Labor Organizations
Of the 12,698,000 wage and salary earners,
are members' of trade unions.

6,320,336, or 50 percent,

Of the three major trade union federations, the Communist Italian Gen
eral Confederation of Labor (Confederazione Generale Italiana del Lavoro-CG1L) is the strongest in membership.
It claims 3,402,336 members,
or 54
percent of all organized labor.
Its membership includes also partisans of
the Italian Socialist Party (PSD, which at present is a member of the leftof-center Government. A member of its executive committee, Renato Bitossi,
is president of the Communist World Federation of Trade Unions (WFTU), with
which the CGIL is affiliated. More recently, CGIL policies in the field of
East-West relations have shown some change, particularly marked by the CGIL's
interest in gaining status in the European Common Market organization.

The anti-Communist Italian Confederation of Labor Unions
(Confederazione Italiana Sindacati Lavoratori--CISL), which was established in 1950
as an outgrowth of a secession in 1949 of non-Communist trade unions from the
formerly unified CGIL,
is the second strongest confederation.
CISL is non
political. Its members and officers come from various political non-Communist
shades, mostly Demo-Christians, but also from the Italian Social Democratic
Party (PSDI) and the Italian Republican Party (PRI). It claims 2 million mem
bers, or about 32 percent of all trade union members. The other anti-Communist
confederation, the Italian Union of Labor (Unione Italiana del Lavoro--UIL),
which is politically close to PSDI and PRI, claims 500,000 members, or about
8 percent of the overall total. Both CISL and UIL are members of the Inter
national Confederation of Free Trade Unions
(ICFTU), The general secretary
of CISL, Dr. Bruno Storti, is president of the ICFTU. Of the other national
centers, only the Italian Confederation of National Workers' Unions (Confederazione Italiana del Sindacati Nazionali Lavoratori--CISNAL), often referred
to as a neo-Fascist group, which claims 76,000 members, has some importance.
Labor-Management Relations
Collective contracts are usually the result of national and industry
wide bargaining. The national contracts, which set minimum wage rates and
standard employment and working conditions, form the framework on the basis
of which industrywide regional and local contracts are negotiated.
In firms
with more than 40 employees,
shop committees may negotiate supplementary
agreements dealing with such matters as job evaluation, premium pay, piece
rates, and checkoff of union dues.
Since 1945, a considerable number of agreements between central or
ganizations of unions and employers' associations have regulated major areas
of industrial relations, for example,
the function and power of factory in
ternal commissions, dismissal procedures, certain social in su r a n c e p r o c e d u r e s,
and technical and administrative problems. These accords have served in lieu
of basic labor legislation to regulate labor-management relations.
Labor disputes are often submitted to voluntary conciliation or ar
bitration.
The Ministry of Labor may intervene in strikes affecting the
public interest.
In 1964,
13,088,620 working days were lost due to labor
disputes. A substantial number of strikes were politically motivated.

LABOR DIGEST
No. 80
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABO R STA TISTICS

1965

LABOR CONDITIONS IN LUXEMBOURG
The Grand Duchy of Luxembourg, with a land area of 999 square miles and a
population estimated at 327,000 in 1963, is one of the smallest countries in
Europe.
It is a member of the Belgium-Luxembourg Economic Union, the Benelux
Customs Union, and the European Coal and Steel, Atomic Energy, and Economic
Communities.
The Grand Duchy
is a constitutional monarchy, with executive power
exercised
through a Council of Ministers responsible to the Parliament.
Legislative power is vested in a Chamber of Deputies, whose 52 members are
elected for 5-year terms by universal suffrage. Legislation passed by the
Chamber may be delayed or amended by the Council of State, made up of 15 mem
bers appointed for life by the sovereign upon the recommendation of the Prime
Minister.
The population is predominantly Roman Catholic. French, German,
and a local dialect are spoken.
The economy is highly
industrialized, with most production concen
trated in the metallurgical industries. Agriculture also plays a major role
in the economy, especially in the northern part of the country. The civilian
labor force, in 1962, included 145,700 persons, of whom 98,400 were wage and
salary earners. About one-fourth of these were employed in steel production.
Although the number of wage and salary earners employed on farms was small,
agriculture accounted for about one-fifth of the civilian labor force in 1962.
Foreign workers,
recruited in increasing numbers
to relieve current labor
shortages, made up more than 20 percent of the labor force.
Most collective agreements relate wage increases
to changes in the
cost-of-living index and provide for a workweek of 42 or 44 hours instead of
the 48 hours established by law. Wages in the Luxembourg steel industry are
higher than in the other countries of the European Coal and Steel Community;
hourly rates averaged 57.73 francs (US$1.15)
in the first 3 months of 1963.

The cost-of-living index rose above 135 during 1963 (1948= 100) , and the legal
minimum wage for adult workers, which is tied to the cost-of-living index,
was increased to 26 francs
(US$0.52) per hour or 5,200 francs (US$104) per
month in May 1963. Benefits paid for pensions, family allowances, medical
care, and other social security purposes augment significantly the income of
workers.
Of the 98,400 wage and salary earners,
67,617, or 69 percent, are
members of trade unions.
About 30,000, or 45 percent of the trade union
members, are organized in the General Confederation of Labor (Confederation
Generate du Travail--GGT), an affiliate of the International Confederation
of Free Trade Unions (ICFTU). The Confederation of Christian Trade Unions
of Luxembourg (Confederation Luxembourgeoise des Syndicats Chretiens--CLSC),
an affiliate of the International Federation of Christian Trade Unions (Con
federation Internationale des Syndicats Chretiens--CISC), claims 18,048 mem
bers,
or 27 percent of the total trade union membership. Although the Free
Luxembourg Workers1 Federation (Federation des Syndicats Libres des Travailleurs Luxembourgeois--FSL), an affiliate of the Communist World Federation
of Trade Unions (WFTU), has only 2,000 members, or 3 percent of all trade
union members,
it reportedly attracts a greater number in the election of
plant worker committees.
Government and municipal wage and salary earners have formed unions
not affiliated to any of the national centers. A Federation of Private Em
ployees claims 9,000 members, or about 14 percent of the total trade union
strength.
Labor-management relations are well developed. At least three-fourths
of the blue-collar workers are covered by collective contracts, most of them
negotiated on an industrywide basis by union contract commissions represent
ing management and the two major union groups, the CGT and the CLSC.
Indus
trial disputes are handled by the National Office of Conciliation's labormanagement commission, made up of employer and worker representatives under
the chairmanship of a Labor Ministry official.

LABOR DIGEST
No. 81
UNITED STATES DEPARTMENT OF LABOR
1965

BUREAU O F LABOR ST A TISTICS

LABOR CONDITIONS IN MALTA
Malta is located at the geographic center of the Mediterranean Sea and has
one of the finest harbors in the world. The country1s total area is 122
square miles. At the end of 1962,
its population was estimated at 330,000.
The State of Malta was established in September 1964 as a member of
the British Commonwealth. The Independence Constitution provides for a Gov
ernor General, appointed by the British Crown. The British Government is re
sponsible for defense and foreign affairs and is represented in Malta by a
High Commissioner.
A Legislative Assembly of 50 members is elected by uni
versal suffrage, and the Prime Minister and Cabinet are appointed from among
its members.
The Maltese are predominantly of the Roman Catholic faith. The offi
cial languages are Maltese and English; Italian is also widely spoken.
Approximately 50 percent of the national income is derived from serv
ices to British Armed Forces installations and personnel. As these installa
tions are being curtailed,
the Government of Malta is taking steps to alter
the structure of the economy by developing industry and tourism. Economic
development, however, is difficult because only slightly over 60 square miles
of the country are capable of being cultivated, and a shortage of water and
natural resources hinder the establishment of new industry.
Because of
British subsidies, the per capita annual income has been about US$389, one
of the highest in the Mediterranean area.
In 1962, agriculture and fishing
contributed 3.3 percent of the gross national product, industry (including
mining and construction) 10.5 percent, and services 86.2 percent.
The labor force at the end of 1962 was estimated at 86,820 persons,
of whom about 14.3 percent were in agriculture and fishing, 41 percent in
industry (including mining and construction), and 44.7 percent in services.

An estimated 59 percent of the labor force was composed of wage and salary
earners, about 40 percent were employers and self-employed, and about 1 per
cent unpaid family workers. The private sector accounted for 63.6 percent
of all employment, and the Government and defense services for 36.4 percent.
Some 6,350 persons (approximately 7 percent of the labor force) were regis
tered as unemployed.
There were also a large number of unregistered unem
ployed .
In 1962,
the nine employers1 associations had a total membership of
1,868. The two largest were the General Retailers’ Union, with some 830 mem
bers, and the General Transport Union (about 450 .members). The other associ
ations had an average of 60 members.
Of the approximately 50,000 wage and salary earners,
some 28,000, or
56 percent,
are members of trade unions.
The General Workers’ Union (GWU),
an affiliate of the International Confederation of Free Trade Unions (ICFTU),
has 15,648 members, while the Confederation of Malta Trade Unions (CMTU), an
affiliate of the International Federation of Christian Trade Unions (Confed
eration Internationale des Syndicats Chre/tiens--CISC) claims 10,068 members.
Seven International Trade Secretariats (ITS's) have affiliates within the
GWU.
The principal member union of the CMTU is an affiliate of the ITSPublic Services International.
Resort to conciliation and arbitration (through the Director of Emi
gration, Labor and Social Welfare, or the Arbitration Tribunal) is provided
for by law, and most industrial disputes are settled by this means.
Strikes
are rare.

LABOR DIGEST
No. 82
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STA TISTICS

1965

LABOR CONDITIONS IN TH E N ETH ERLA N D S
The Netherlands, situated in northwestern Europe, has a total area of about
13.000 square miles.
One-fourth of the country lies below sea level, and
land reclamation is a continuing process. At the end of 1964, the population
was 12 million, the densest per square mile in the world.
Factors Affecting Labor
Political. The Netherlands is a constitutional monarchy. Executive
power is exercised by the Crown and the Cabinet, which must have the support
of the majority
in Parliament.
The Parliament,
called the States General,
consists of an upper House (First Chamber) of 75 members elected for 6-year
terms by the Provincial legislatures,
and a lower House (Second Chamber) of
150 members elected by popular vote for 4-year terms. The elections,
con
ducted on a proportional representation basis, usually result in a coalition
government.
New legislation must be introduced by the lower House.
Queen
Juliana has been the reigning sovereign since 1948. The present Government
is a coalition of the Catholic People’s Party,
the Labor Party,
and one of
the two Protestant parties.
Economic. In 1963, industry and construction accounted for 41 percent
of the gross national product (GNP), agriculture for 9 percent.
The princi
pal industries--machine construction, metal fabricating,
shipbuilding, tex
tiles, chemicals,
earthenware and glass, and food processing--depend to a
considerable extent on imports of raw materials or semifinished goods. Most
industries are privately owned, and government control is largely confined
to public utilities,
transport, and coal mining.
In 1964, the Netherlands
exported 29 percent of its total industrial output. Per capita GNP was es
timated at US$1,382 in 1964.
Social. The Dutch are predominantly of Germanic stock. More than
370.000 repatriates from Indonesia, including many of Eurasian origin, immi

grated since 1945. Dutch is the official language.
About 41 percent of the
population are Protestants,
39 percent are Roman Catholics, and 20 percent
belong to other denominations or are unaffiliated.
Education is free and
school attendance compulsory between the ages of 6% and 15. Denominational
as well as nondenominational schools are supported by the Government. Illit
eracy is almost nonexistent.
Manpower and Employment
Employment and Unemployment. In 1964,
the labor force numbered 4.5
million, of whom 45 percent were employed in industry,
11 percent in agri
culture and fishing, 12 percent in public services and education, and 32 per
cent in private services. About 80 percent, or 3.6 million, were wage and
salary earners.
Virtually full employment has prevailed in the postwar pe
riod, with increasing shortages of workers, both skilled and unskilled.
In
1964, when registered unemployment averaged 28,200, or about 0.8 percent of
all wage and salary earners, unfilled job openings outnumbered unemployed
persons by more than 3 to 1. In January 1965, there were about 51,500 for
eign workers resident in the country, mainly from Germany, Italy, Turkey, and
Spain, plus 17,000 commuters, chiefly from Belgium and Luxembourg.
The Gov
ernment operates the only employment service in the country at the national
and local level, and its activities effectively contribute toward alleviating
imbalances in the labor market.
Productivity,
Skills, and Training.
The labor force is generally
well-trained and highly productive. Vocational instruction is offered by a
large number of public and private institutions. Management and labor have
joint arrangements for apprenticeship training, which is supervised and sub
sidized by the Government.
In 1963, about 68,000 apprentices were in train
ing. The industrial labor productivity index rose by an estimated 37 points
between 1958 and 1964 (1958=100).
Labor Standards
Labor Legislation. Legislation passed in 1927,
1937, and 1945 em
powers the Government to give the force of law to collective contracts nego
tiated between labor and management and to make the terms of such agreements
binding throughout an industry.
The Industrial Organization Act of 1950
established the tripartite Social-Economic Council to advise the Government
on economic and social policy. The Joint Consultative Committees Act of 1950
set up machinery for formal labor-management consultation at the plant level.
Protective laws, notably the Labor Act of 1919, regulate the working condi
tions of women and young workers, and hours of work, rest periods,
safety,
and hygiene for all workers in industry and agriculture. An extensive system
of social insurance provides for health insurance, family allowances, unem
ployment insurance, workmen's compensation, old-age and disability pensions,
and death benefits.
Administration and Practice. Labor legislation is strictly enforced
by the Department of Social Affairs and Public Health and its Labor Inspec
torate. Working conditions are periodically investigated, and violators are
fined. Recommendations for improvement are made by public officials when

indicated. Prevailing safety standards and working conditions are generally
at a high level.
Wages, Hours, Prices, and Level of Living
Wages are usually determined by collective agreement,
subject to ap
proval by the bipartite Labor Foundation,
the top-level
labor-management
consultative body.
The Foundation is responsible for keeping wages in line
with the objectives of national economic policy.
In 1964, the Labor Founda
tion established a general minimum wage of f 1. 110 (US$30.60) per week for
adult men employees.
As of April 1964, hourly earnings averaged fl. 3.05
(US$0.85) for men workers in manufacturing and industry, fl. 3.02 (US$0.84)
in metal fabricating, fl. 3.2Q (US$0.89)
in construction, and fl. 3.05
(US$0.85) in mining. Average gross weekly earnings of men workers over 25
in industry were fl. 126.46 (US$35.13)
in October 1964.
Social insurance
and other supplementary benefits averaged 35 to 40 percent of earnings, at
the end of 1964. In addition to paid holidays and a cash holiday bonus equal
to 4 percent of annual earnings, employers often provide such additional
benefits as cafeterias, recreational facilities, and savings plans.
The maximum legal workweek is 48 hours, but the norm since 1960 has
been a 5-day, 45-hour workweek. The average paid annual vacation is 15 work
ing days. Between January 1962 and January 1965, the cost of living increased
12.6 percent and wages 35 percent. Real income increased 29 percent between
1959 and 1965, and 5 percent between 1964 and 1965. Per capita income was
US$1,115
in 1964. The share of workers1 wages
in the national income rose
from 66.5 to 74.5 percent between 1959 and 1964.
Employer

Organizations

The four main employers* organizations are the Netherlands Employers*
Federation, the Central Social Employers* Federation, the Catholic Employers*
Federation, and the Federation of Protestant-Christian Employers
in the
Netherlands.
They cooperate closely with each other on labor and economic
problems.
All are affiliated with the International Employers* Association
and, together with the organizations of tradespeople and farmers, participate
in the deliberations of the Social-Economic Council and the Labor Foundation.
Labor Organizations
Of the 3.6 million wage and salary earners,
1.4 million, or about 40
percent, are members of trade unions. Political as well as denominational
orientation is one of the basic characteristics of the Netherlands trade
union movement. Of the three major trade union federations, the strongest is
the Netherlands Federation of Trade Unions (Nederlands Verbond van Vakverenigingen--NW) , an affiliate of the International Confederation of Free Trade
Unions (ICFTU), with a membership of 526,243, or 36 percent of the total
trade union membership.
The NVV is close to the Labor Party.
The Nether
lands Catholic Workers* Federation (Nederlands Katholieke Vakverbond--NKV),
formerly known as the Netherlands Catholic Workers* Movement (Nederlandse
Katholieke Arbeidersbeweging--KAB), with 407,466 members, or 28 percent of
the total trade union membership, has a close relationship to the Catholic

People's Party.
The National Federation of Christian Workers
(Christelijk
Nationaal Vakverbond in Nederland--CNV) with 230,000 members, or 16 percent
of the total trade union membership, is close to the two Protestant parties.
The three federations cooperate closely, particularly in the field of col
lective bargaining. Both the NKV and the CNV are affiliated with the Inter
national Federation of Christian Trade Unions (Confederation Internationale
des Syndicats Chre/tiens--CISC).
Another small federation, the Federation of Workers' Organizations
(Federatie van Worknemers Organisaties--FEWO), representing 16,513 members,
is politically as well as denominationally neutral.
The Communist unions, which at one time attracted as many as 33,500
members, have ceased to exist as viable units. One splinter group of trans
port workers in the Rotterdam port has an estimated 500 members.
Labor-Management Relations
Labor and management, beginning with close clandestine collaboration
during World War II, have achieved a unique degree of cooperation with each
other and with the Government.
This is, in part, manifested in the work of
the Labor Foundation and the Social-Economic Councilc The Foundation has
the final power to approve collective agreements,
including provisions for
wage increases, although emergency powers are reserved to the Government in
the event that it deems any increases excessive.
The trade unions voluntar
ily accept wage restraint in the national interest. As of December 1964,
some 3 million workers were covered by collective agreements.
The duration
of contracts is usually for 1 year.
The most frequently used method of set
tling labor disputes not resolved at the plant level is voluntary negotia
tion between the parties at progressively higher levels, under the auspices
of the Labor Foundation. As a last resort,
either party may call in a Gov
ernment arbitrator.
In 1964, a total of 43,862 man-days were lost due to strikes,
pared with 38,000 in 1963 and 9,500 in 1962.

com

LABOR DIGEST
No. 83
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN NORWAY
Norway is located in the extreme north of Europe and occupies the western
part of the Scandinavian Peninsula,
It has an area of about 125,000 square
miles, and the population was estimated at 3.7 million in 1964.
Factors Affecting Labor
Political. Norway is a constitutional monarchy.
Executive power is
vested in the King, at present King Olav V, and his Council of State. Legis
lative power is exercised by a unicameral Parliament (Storting) , composed of
150 members who are elected for 4-year terms by direct vote, on the basis of
a system of proportional representation.
Of the seven political parties,
the Labor Party has been the dominant one, and Norway has had a Labor Party
government almost continuously
since 1935. A non-Socialist government was
in power during August-September 1963. A similar coalition government of the
Conservative, Liberal, Center, and Christian People's Parties was established
after elections in the fall of 1965.
Economic.
In 1961, manufacturing contributed 24.3 percent of the
gross national product (GNP); trade and finance,
20 percent; transportation
and communications, 17 percent; services, 13.8 percent; agriculture, fishing
and forestry, 9.4 percent; construction, 12 percent; and utilities and mining,
3.5 percent. The pulp and paper, canning, chemical, and metallurgical indus
tries provide the chief export commodities. The ship freight earnings of
Norway's merchant marine,
the third largest in the world, are the greatest
single item in the export structure of goods and services. Textiles, ships,
lumber, fish, and whale oils are also important products.
Per capita GNP
1963 was about US$1,720.
Socialo
Norwegians are a homogeneous people except for 20,000 Lapps
in the northern part
of the country« Norwegian is the official language.

Nearly all Norwegians belong to the state-established Evangelical Lutheran
Church of Norway.
There is virtually no adult illiteracy. Education is free
and compulsory between the ages of 7 and 14. The educational system is in
transition to a 9-year compulsory program, with6years of primary and3years
of secondary school.
Manpower and Employment
Employment and Unemployment. The labor force, according to the census
of 1960, numbered over 1.4 million workers, of whom 27 percent were in manu
facturing, mining, and electricity and water supply; 20 percent in agricul
ture, forestry and fishing; 18.5 percent in services; 13 percent in trade
and finance; 12 percent in transportation and communications; and 9c5 percent
in construction. One-third of the labor force are employed in export indus
tries.
Wage and salary earners in 1960 constituted 78 percent of the labor
force; employers and self-employed, about 19 percent; and family workers,
less than 3 percento Average registered unemployment was 1.1 percent of the
total labor force in 19640
Productivity, Skills, and Training. A 1945 agreement between the
Norwegian Federation of Trade Unions and the Norwegian Employers' Association
provides that any factory with over 20 workers must elect a joint labor-manage
ment advisory committee, whose function is to promote greater production.
Productivity
increased 90 percent between 1938 and 1962.
The Government,
private industry, and trade unions collaborate on vocational training for young
people and adults, particularly unemployed and underemployed workers,
at a
variety of technical, commercial, handicraft, and other schools.
In 1960,
more than 20 percent of all persons over 14 years of age had some vocational or
apprenticeship training.
Some industries occasionally experience shortages
of skilled workers.
Labor Standards
Labor Legislation. Minimum standards covering hours of work, overtime
and nightwork, dismissal, employment of women and children, and safety and
health measures in industrial undertakings are regulated by the Workers'
Protection Act of 1956.
Separate laws govern employment standards for other
categories of wage earners, such as seamen, agricultural workers, and domestic
workers. The Labor Disputes Act of 1915, as amended, established legislative
procedures for collective bargaining, strikes, and lockouts. An act of 1952
established a system of voluntary arbitration, and set up a National Wages
Board.
The Full Employment Act of 1947 set forth comprehensive manpower
policies which are implemented by the Labor Directorate under the Ministry of
Labor and Municipal Affairs. Apprenticeship training is regulated by an act
of 1950. A comprehensive compulsory social security system covers health,
work injuries, unemployment, old age, and disability. Family allowances are
provided for families with two or more children under 16 years of age.
Administration and Practice. The Labor Department, under the Ministry
of Labor and Municipal Affairs,
enforces labor laws and administers
labor
policy.
The National Wages Board renders binding settlements of disputes
voluntarily submitted to it, and acts as a compulsory arbitration board in

disputes passed to it by act of Parliament. Protective labor legislation is
generally well observed, and violations are infrequent.
Wages, Hours, Prices, and Level of Living
The average hourly wage in industry and mining in the fourth quarter
of 1964 was 8.54 kroner (US$1.20) for men, and 6.06 kroner (US$0.85) for
women. The average monthly salary of male office employees on March 1, 1964,
was 2,029 kroner (US$283.38) in wholesale and retail trade and 2,188 kroner
(US$305.59) in banking.
There is no legal minimum wage. Wages are not tied
automatically to price developments, but most collective agreements permit
the contracting parties to reopen wage and salary issues in accordance with
fluctuations of the consumer price index.
The law stipulates a maximum 9-hour workday and a 45-hour workweek.
Weekly hours worked by male employees in mining and manufacturing averaged
40 in 1963. Among white-collar workers, the average workweek was 38 hours
in 1963. Paid holidays vary from 7 to 8 per year, and paid leave of 4 weeks
per year is required by law for nearly all workers.
In the period 1959-64, while prices increased 19 percent according to
the consumer price index, real wages of workers in industry and mining in
creased 14 percent for men and 19 percent for women. In food, housing, social
security, and health, the standard of living is high.
Some housing shortage
exists, but almost all housing has electricity and running water.
Employer Organizations
The Norwegian Employers' Association (Norsk Arbeidsgiverforening--NAF)
is by far the largest of several employer organizations.
It embraces the
great majority of employers, about 8,700 members employing some 300,000 work
ers in industry and handicrafts, and acts as their official spokesman in col
lective bargaining.
Second largest is the Shipowners' Association, which
has about 350 members with some 50,000 employees.
Employees in the retail
and wholesale business are organized in the Commercial Employers' Association.
Several independent associations, covering small groups of employers such as
banks and insurance companies, cooperate with the NAF in many respects.
Labor Organizations
Of the estimated 1.1 million wage and salary earners,
about 696,245,
or 63 percent, are members of trade unions.
The Norwegian Federation of
Trade Unions (Landsorganisasjonen i Norge--L0), close to the Norwegian Labor
Party and an affiliate of the International Confederation of Free Trade
Unions (ICFTU), represents 567,230, or 82 percent of all trade union members.
To counter separation tendencies among white-collar workers,
as well
as to give a better representation to the specific interests of their grow
ing number, a Confederation of Salaried Employees of Norway (Funksjonaersambandet i Norge--FSN) within the L0 was established in 1953 to coordinate the
activities of 21 unions with 142,227 members, or more than one-fourth of the
L0 membership. An organization of government personnel within the L0,
the

Cartel of State Civil Servants (Statstjenestemannskartellet), formed in 1937,
represents 20 unions with 104,033 members.
A white-collar workers’ group, which seceded in 1951, regrouped in 1965
in a Central Committee of Salaried Employees and Public Servants (Funksjonaer
og Tjenestemannsorganisasjonenes Fellesutvalg--FTF).
It represents 26,050
workers
in eight affiliates.
It has reached only about 70 percent of the
strength of the original grouping, apparently because of increased organiza
tional efforts by the LO on behalf of white-collar workers.
A Federation of State Civil Servants
(Statstjenestemannsforbundet-STAFO) with 60 affiliates claims 15,300 members, and a Central Association
of Prof essional Organizations (Yrkesorganisasjonenes Hovedsammenslutning--YH)
with 4 affiliates has 8,527 members.
Labor-Management Relations
Labor-management relations are highly centralized. The NAF and the LO
in 1935 signed a Basic Agreement which defines their rights and obligations
and is a part of all other collective agreements between the two organiza
tions.
Industrywide "master" agreements dealing with wages and working con
ditions, which usually run for 1 or 2 years,
are frequently negotiated at
the national level.
Disputes over the interpretation of collective contracts must be taken
before the Labor Court when direct negotiation between the parties is incon
clusive.
Strikes and lockouts over such issues are illegal, and the deci
sions of the court, whose seven members, appointed by the King, include two
each proposed by labor and management, are final. Strikes over disputes con
nected with other issues are legally permitted but only after private and
Government mediation efforts have failed.
In the case of strikes that are
harmful to the national economy, the Government may intervene with compulsory
arbitration on the basis of special legislation. In 1964, for example, over
all limits on wage increases in line with the Government’s economic policy
guidelines were imposed by this method. In 1963, there were eight work stop
pages involving 10,588 workers, with 226,394 working days lost.

LABOR DIGEST
No. 84
UNITED STATES DEPARTMENT OF LABOR

BUREAU OF LABOR STATISTICS

1965

LABOR CONDITIONS IN POLAND
Poland, an eastern European country situated between Germany and the Soviet
Union, had a population of over 31 million at the beginning of 1963 and an
area of 120,733 square miles.
Factors Affecting Labor
Political. Officially called the Polish People’s Republic, the country
has been controlled since 1947 by the Communists, who currently rule through
the Polish United Workers’ Party (PZPR). Poland nominally has a parliamentary
system of government,
based on the Constitution of July 22, 1952. The Sejm
(Parliament) is elected every 4 years and includes several minority parties.
Wladyslaw Gomulka assumed power in 1956 as First Secretary of the PZPR. Poland
has signed the 1955 Soviet bloc's Warsaw Pact
(a 20-year mutual defense
treaty) and is a member of the bloc's Council of Mutual Economic Assistance
(CEMA).
Economic. The country has a socialized planned economy--patterned
after the Soviet model--which accounts for over 75 percent of the national
income. Under a series (since 1947) of 3-year and 5-year economic development
plans, industry has increased to the extent that in 1960 only 38.4 percent of
the population were dependent on agriculture (in 1931, it was 60.0 percent).
Farm collectivization has been successfully resisted by the peasantry, and
farming is mostly in private hands. The main industries are coal, steel and
iron, chemicals
(including fertilizers), food processing, and textiles; the
main crops are sugar beets, corn, and rye. As a member of the CEMA, the coun
try has been increasingly dependent in late years on the Soviet bloc for most
of its trade (in 1964, for 63 percent of its imports and 64.4 percent of its
exports). Coal has been Poland's largest export item. The majority of U.S.
trade with Eastern Europe in 1964 was with Poland, which under a law of Decem
ber 16, 1963, has a"most-favored nation" trade status with the United States.

Polish data indicate that national income per capita doubled in the period
1950-63; for 1963, a per capita figure of 14,600 zlotys (about US$608) was
claimed.
Social. Over 98 percent of the population is Polish.
The largest
minorities are the Ukrainians and Byelorussians. Most of the Polish popula
tion are Roman Catholic. Eight years of primary schooling are compulsory for
children, from the age of 7.
Manpower and Employment
Employment and Unemployment. In 1960, about 46 percent of the popula
tion (13.7 million out of 29.8 million) were economically active. Of these,
47.8 percent were active in agriculture; 23.0 percent in industry; 5.4 percent
in trade; 5.0 percent in construction; 4.8 percent in transport and communi
cations;
3.7 percent in education, science, and art;
2.5 percent in health
and welfare; and 7.8 percent in other work.
In 1964, there were 8,694,000 wage and salary earners in the national
economy, most of them (8,524,000) in the socialized sector. Unemployment,
mostly of unskilled women and young workers entering the labor force,
is a
continuing problem. There is also underemployment in overstaffed enterprises.
Productivity, Skills, and Training. The Government has promoted educa
tional and training programs to relieve the shortage of ski 1led workers. About
66 percent of new workers in 1963 had secondary vocational or higher profes
sional training, compared with 15 percent in the early 1950’s. In 1964, there
were nearly 250,000 trainees (as compared with 68,500 in 1960) in the nation.
During 1963 and 1964, some 100,000 workers passed examinations to be qualified
as highly skilled; they obtained their training and technical knowledge in
night schools and in correspondence courses (many of which are on the college
level).
Poland's relatively low productivity is reported to be due mainly
to underemployment resulting from the excessive number of unskilled workers
coming into industry from the countryside; the 1965 economic plan seeks to
provide for an increase in productivity through the introduction of new tech
nology and better working conditions.
Labor Standards
Labor Legislation. Poland has no labor code. The Polish Constitution
of July 22, 1952, declares work to be a duty and guarantees every citizen the
right to work, the right to rest days and paid annual vacations, and the right
to educational, cultural, health, and social insurance benefits. Special laws
and regulations establish the hours of work and holidays; fix wage rates; set
standards of hygiene and safety; regulate the employment of women and young
workers, prescribe penalties for the violation of labor discipline; and pro
vide for the creation, by works councils, of factory arbitration commissions
to settle workers’ grievances or disputes. No worker may be discharged except
for cause and with the consent of the works council.
Government labor in
spectors check on the observance of labor legislation by managers. The basic
Trade Union Act of July 1, 1949, made the Federation of Trade Unions in Poland
the sole body representing the trade union movement in Poland.

Administration and Practice, Labor legislation is administered by the
Ministry of Health and Social Welfare, the Labor and Wages Committee, directly
subordinate to the Council of Ministers, and the Social Insurance Institute.
Specifically, the function of the Labor and Wages Committee is to ensure the
implementation of legislation relating to employment
(including vocational
guidance), wages, output standards,
and collective labor agreements. The
administration of social insurance, with the exception of matters relating to
the fixing of old-age, disabi1ity, and survivors 1 pensions, has been a function
of the trade unions since 1955; they also.have certain duties in connection
with the enforcement of legislation relating to occupational safety and health.
Pensions are administered by the Social Insurance Institute.
In practice,
the constitutional guarantee of the right to work is not effectively imple
mented in view of the continuing problem of unemployment.
Wages, Hours, Prices, and Level of Living
Most workers are on an 8-hour workday and a 46-hour workweek (6 hours
on Saturday). There are 12 legal holidays in the year. Overtime is limited
to 4 hours a day and 120 hours a year; time-and-a-half is paid for the first
2 hours, and double-time pay for the third and fourth hours. All workers are
guaranteed an annual vacation of from 12 workdays to 1 calendar month, depend
ing on length of service and other factors; they are also paid sick leave.
The Government controls wage rates and prices. By late 1964, average
gross monthly earnings in the socialized economy were 1,890 zlotys (US$79).
The average earnings were lowest
(1,377 zlotys, or US$57)
in the forestry
sector, and highest (2,195 zlotys, or US$91) in the building sector. Supple
ments to earnings appear in the form of family allowances, free medical care,
sickness benefits,
and scholarships to workers.
The annual economic plans
provide for increases in real wages on the basis of increases in productivity.
The Government claimed a 3-percent increase in real wages in 1964; however,
real wages--as reflected by the ability of the ordinary worker to buy certain
staples, such as meat, white beans, and potatoes--had dropped in the period
1958-64. Consumer goods are expensive, by U .S . standards, in terms of worktime
required; for example,
a ma n ’s ordinary worsted wool suit cost 1,890 zlotys
(US$79) in 1963, or about a month’s average gross earnings of workers in the
socialized economy. Because of heavy wartime destruction, increasing urbaniza
tion as a result of the industrialization policy, and a rapid population
growth, the housing situation continues to be one of the most critical prob
lems. The 1965 plan calls for the construction of over 400,000 dwelling units.
Employer Organizations
The few remaining private employers, mostly craftsmen,
are permitted
to join associations, which enable employers to submit their grievances to the
Government's Committee for Small Industry and Handicrafts, and to disseminate
Government regulations and instructions.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of Government-Party policy with regard to the

working population. Of the 8,525,000 wage and salary earners, 5,500,000, or
65 percent,
are members of the Central Council of Trade Unions
(Centralna
Rada Zwiazkow Zawodowych--CRZZ), which is an affiliate of the World Federation
of Trade Unions (WFTU).
Trade union members in an enterprise elect a works council which repre
sents all the wage and salary earners in the enterprise on questions relating
to their work and welfare. The council supervises the work of subordinate
workshop councils
(in large enterprises),
activists (volunteer trade union
workers),
and various commissions
(on safety, housing, protection of young
workers, cultural activities, etc.).
"Workers' Self-Government Conferences," which were established in 1958
after 2 years of workers' active participation in management,
following the
1956 political revolt against Moscow control, are made up of representatives
of the Party, the management, and the works council. Their ostensible func
tion is to endorse production plans, factory rules,
incentive bonuses, and
workers' welfare programs. They have little independent influence on manage
ment decisions, since they are under complete Party control.
Labor-Management Relations
Collective bargaining in the Western sense does not exist in Poland,
as the Government fixes wages, hours of work, and working conditions. In 1954,
the Government introduced the Soviet-type of collective agreements between
trade unions and management. The purpose of the agreements, primarily, is to
stimulate the fulfillment and overfulfi1lment of production plans and , secondarily, to improve working and living conditions.
By unwritten law, Polish
trade unions are not permitted to strike, but many wildcat strikes of short
duration occurred in 1963 and 1964 in protest against Government increases
in the prices of consumer goods, against the introduction of higher production
quotas, and against unhealthful working conditions. Disputes over pay, hours
of work, job assignments, and certain other work matters may be submitted to
arbitration commissions; their decisions may be appealed to the public courts.

LABOR DIGEST
No. 85
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR ST A TISTICS

1965

LABOR CONDITIONS IN PORTUGAL
Portugal is located on the Atlantic coast of the Iberian Peninsula.
Metro
politan Portugal, which includes the Atlantic archipelagos of Madeira and
the Azores, has an area of 92,000 square miles, and had a population of 8.9
million in 1960.
Portugal considers
its African possessions as integral
with the Republic, but does not include them in the administrative system of
the metropolitan area.
Factors Affecting Labor
Political. The Constitution of 1933 made Portugal a corporative re
public.
Executive power is vested in a Premier--since 1932, Antonio de
Oliveira Salazar.
The bicameral legislature consists of a National Assembly
of 130 members, elected directly by heads of families
(less than 1 million
persons voted in the 1961 elections)
for 4-year terms, and an upper House,
the Corporative Chamber, which functions as an advisory body to the Assembly
and to the Government, and is composed of avariable number of members repre
senting the "corporations11 or official entities which guide the country's
economic, social, and cultural life. There are eight corporations--one each
for agriculture, industry, commerce, transportation and tourism, banking and
insurance, graphic arts,
the press, and entertainment.
There is only one
political party,
the National Union, and only its candidates are permitted
to seek election.
Economic. In 1963, agriculture, forestry, and fishing accounted for
22.9 percent of the gross national product (GNP), industry and construction
accounted for 37.4 percent,
and services for 39.7 percent. Major crops in
cluded potatoes, cereals,
grapes, and olives. The chief manufactures are
textiles (cotton and woolens), glass and pottery, cement, chemicals,
and
cork products. In 1963, exports of goods and services amounted to 19 percent
of the GNP, and per capita-. GNP was US$305.

Social. The Portuguese are a homogeneous ethnic group. Portuguese
is the only language, and almost the entire population belongs to the Roman
Catholic faith. The literacy•rate was 65 percent in I960. Education is com
pulsory from age 6 through 13. In 1964, there were 43 secondary schools with
59,700 students, and 4 universities with an enrollment of 23,000.
Manpower and Employment
Employment and Unemployment. In 1960, the labor force totaled 3,398,669
(or 38.2 percent of the population); of these, 44 percent were in agricul
ture, 20.5 percent in manufacturing, 6.7 percent in construction, 4.3 percent
in transport and communications,
and 24.5 percent in other industries and
services.
Wage and salary earners constituted 72.3 percent of the labor
force; employers and self-employed, 21.4 percent; and unpaid family workers,
6.3 percent.
Unemployment data are not available.
An average of 37,500
workers
(approximately 50 percent agricultural) emigrated each year between
I960 and 1963 to the overseas provinces and to foreign countries.
Productivity, Skills, and Training. Productivity is low, due mainly
to a shortage of skilled manpower at all levels as well as a generally anti
quated industrial plant and archaic farming practices.
With the collabora
tion of the Organization for Economic Cooperation and Development
(OECD),
the Government in 1963 completed a study of the measures necessary to supply
the requisite skills and technical education.
A Manpower Development Fund,
established under a decree of 1962, has begun operations, and an Institute
of Accelerated Vocational Training was scheduled to open in 1964.
Some 20
new technical and trade schools were opened in 1962-63.
Labor Standards
Labor Legislation. The Constitution gives the Government control of
the means of production. To implement the constitutional provisions,
the
National Labor Statute of 1933 designated the official labor and management
organizations as the basic pillars of the corporative state and outlawed
strikes and lockouts as well as any other activity inimical to the political
and economic life of the nation.
A large uncodified body of labor laws and
regulations establishes minimum labor standards.
In addition, provisions in
collective bargaining contracts, which are negotiated under the supervision
of, and are strictly enforced by, the Government, in effect prescribe stand
ards for entire industries or geographic areas. Legislation provides family
allowances and benefits for sickness and maternity, work injury, unemploy
ment, old age,
invalidity, and death under a variety of official and semi
official social insurance and welfare systems, administered or supervised by
the Government.
Administration and Practice. Administration of labor laws is the re
sponsibility of the Ministry of Corporations and Social Welfare. The prin
cipal entity through which this Ministry exercises its powers of regulation
and inspection is the National Institute of Labor and Welfare, which also
administers the labor judiciary and social security systems. The Instituted
Labor Inspectorate checks on labor conditions and supervises the enforcement
of labor and social security legislation.

Wages, Hours, Prices, and Level of Living
Unskilled workers, who constitute the majority of the labor force,
earned on the average about 28 escudos (approximately US$0.95) a day in 1963.
A skilled worker can earn 65 escudos (about US$2.20) a day. While wages are
determined mainly by Government-supervised collective bargaining, the Govern
ment may establish minimum rates when contracts fail to do so. Legal and
customary supplemental benefits may increase basic remuneration by as much
as 24 percent.
The regular workweek in industrial enterprises is limited by law to
48 hours--8 hours a day for 6 days a week.
The overtime premium must be at
least 25 percent of base pay.
A definite rise in the level of consumption was recorded between I960
and 1963.
In that period,
the consumer price index rose about 2 percent,
while wages rose some 5.6 percent. Per capita income was US$260 in 1962.
Employer Organizations
Employers and managers are organized in guilds for the various indus
tries. Once a guild is formed,
it represents all entrepreneurs in a given
industry or service for a particular area, whether they are guild members
or not.
The Government can order the formation of guilds in any sector.
As of 1960, there were 529 guilds in the various branches of the economy,
grouped by geographic area into some 23 federations or similar parent bodies.
Engineers,
lawyers, and physicians are organized into '’orders,11 which are
represented in the Corporative Chamber on an equal footing with the manage
ment and labor organizations.
Labor Organizations
Labor is organized on a syndical basis and is grouped in syndicates
by districts,
industries, or trades. The syndicates are regulated by the
National Labor Statute of 1933, which defines the Portuguese state as a
unitary and corporative republic and stipulates that the primary elements
of corporativism are the national syndicates, composed of wage and salary
earners, and the national guilds,
composed of employers.
(The syndicates
and the guilds are national in function rather than organization,
that is,
they are designed to promote national welfare though they may be organized
on a regional or district basis.)
Syndicates or guilds in the same occupa
tion in different areas of the country may be combined into federations.
Syndicates or guilds in several related occupations may be combined into
unions.
In 1961, a total of 1,044,963 wage and salary earners belonged to
syndicates.
Labor-Management Relations
Wages and working conditions are largely determined by agreements
negotiated between the management guilds and the labor syndicates under
Government supervision.
The Government strictly enforces the contracts and
is empowered to extend the provisions of regional contracts to the entire

country.
Conciliation and arbitration are compulsory.
Grievances, as well
as issues concerning the interpretation of collective contracts, come under
the jurisdiction of special labor courts.
Strikes are prohibited.
If any
in 1963-64, they were not publicized.

labor-management conflicts

occurred

LABOR DIGEST
No. 86
UNITED STATES DEPARTMENT OF LABOR
1965

BUREAU OF LABOR STATISTICS

LABOR CONDITIONS IN RUMANIA
Rumania, a Balkan State in eastern Europe, had at the beginning of 1965 a
population of about 19 million and an area of 91,671 square miles.
Factors Affecting Labor
Political. Officially called the Socialist Republic of Rumania,
the
country has been controlled since 1947 by the Rumanian Communist Party, which
was created in 1948. Under the Constitution of 1965, the Grand National
Assembly,
elected every 4 years on the basis of a single electoral list, is
nominally the supreme organ of state power.
Between the brief
semiannual
Assembly sessions,
its functions are exercised by the State Council, which
it elects. Rumania is a member of the 1955 Soviet bloc’s Warsaw Pact (a 20year mutual defense treaty)
and of the bloc's Council of Mutual Economic
Assistance (CEMA).
Economic. Primarily an agricultural country, Rumania has a socialized
planned economy, patterned after the Soviet model, which accounts for over
95 percent of the national income. The collectivization of agriculture was
announced as complete in 1962. The main industries are petroleum, coal, ma
chine construction, chemicals, and food processing; the main crops are corn,
wheat,
and sugar beets. As a member of the CEMA,
the country has been de
pendent on the Soviet bloc for most of its trade (68.5 percent in 1964).
Annual national ’income per capita is about US$400.
Social. About 85 percent of the population is Rumanian. The largest
ethnic minorities are Hungarians (about 9 percent) and Germans (about 2 per
cent) . The principal religion is Rumanian Orthodox, the religion of an esti
mated 80 percent of the population. Eight years of free primary schooling
are compulsory for children, from the age of 7.

Manpower and Employment
Employment and Unemployment, The 1956 census showed that about 60
percent of the population (10.4 million out of 17.5 million) were economically
active.
In 1963, 59.5 percent of the population were in agriculture,
17.5
percent in industry, 10 percent in administration and services,
6.5 percent
in construction, 3.7 percent in trade, and the remaining 2.8 percent in other
activities.
The number of wage and salary earners in the national economy in 1964
was 4.1 million, or about 36 percent of the labor force on the basis of the
1956 census ratio (60 percent) of labor force to population. The demand for
manpower under the country's industrialization program is being met by re
cruitment from the rural areas, where much underemployment is reported as a
consequence of extensive farm mechanization.
Productivity, Skills, and Training. Rumania has a system of voca
tional training schools and in-plant apprenticeship schools.
In 1964-65,
there were
181,097 persons enrolled in vocational schools and 123,284 en
rolled in higher institutes. In addition, 14,026 foremen were taking courses
in day and evening schools and by correspondence.
Labor productivity
in
industry was claimed to have risen by 10 percent in 1964, and an increase of
9 percent was planned for 1965.
Labor Standards
Labor Legislation. The Constitution of August 21, 1965, and the amend
ed Labor Code of June 1, 1958, constitute the basic labor legislation. The
Constitution declares work to be a duty of every able-bodied citizen, and
guarantees him the right to work, to receive pay according to work performed,
to rest days and paid vacations,
to health protection, and to educational,
cultural, and social insurance benefits. The Labor Code describes the func
tions of the so-called trade unions, defines the extent of social insurance,
and establishes labor disputes boards for the settlement of workers' griev
ances or disputes. Although legislation prevents the transfer of a worker to
another locality without his consent, it sanctions his dismissal for refusing
to transfer. Management may dismiss any worker for the sake of efficiency,
but is expected to place the dismissed worker in a similar job elsewhere. A
worker may quit his job by giving 2 weeks' notice.
Administration and Practice. There is no centralized administration
of labor legislation. Various ministries--especially the Ministry of Health
and Social Welfare--the Central Council of Trade Unions,
and managements of
enterprises and establishments are responsible for enforcing or checking upon
the enforcement of labor legislation. There are indications that shortages
of resources have prevented the implementation of safety, housing, and other
legislation.
Wages, Hours, Prices, and Level of Living
The Government controls wage rates and prices but does not publish
wage or price data. The minimum monthly wage is 520 lei (about US$29, at the

tourist rate of exchange). At the beginning of 1965,
the average unskilled
worker earned monthly an estimated 700 lei (about US$39), and the average
skilled worker about 1,000 lei (US$56).
Supplements to earnings appear in
the form of family allowances, medical care, sickness benefits, and scholar
ships to workers.
The 6-year (1960-65)
economic plan calls for a gradual
increase in the standard of living; official statistics claim that real earn
ings of wage and salary earners doubled between 1950 and 1962. The prices
are high by Western standards, and the consumer,
especially in rural areas,
is bn a low level of living. In the cities,
the housing situation is so
critical that it is common for a family with children to live in a single
room and to share a kitchen with several other families.
Most workers are on an 8-hour workday and a 48-hour workweek. There
are 6 legal holidays in the year.
Overtime is limited to 4-hours a day and
120 hours a year. All workers are guaranteed a paid annual vacation of 12
to 24 working days, depending on length of service and the nature of the job.
They are also paid for sick leave.
Employer Organizations
There is no national organization of enterprise managers in Rumania.
Labor Organizations
The trade union organization is an arm of the Government, and its pri
mary purpose is implementation of government-party policy with regard to the
working population.
Of the 3,900,000 wage and salary earners in 1963, 83
percent were members of the Central Council of Trade Unions (Consiliul Cen
tral al Sindicatelor--CCS). The CCS is an affiliate of the World Federation
of Trade Unions (WFTU).
Labor-Management Relations
Collective bargaining in the Western sense does not exist in Rumania,
as the Government fixes wage rates, hours of work, and working conditions.
By unwritten law, Rumanian trade unions are not permitted to strike, and no
strikes have been reported in recent years. Labor disputes boards, repre
senting '‘management11 and labor equally, have been established for the settle
ment of specified disputes, such as those arising from the dismissal of work
ers, job assignments, wage payments, and working conditions.
A decision of
a board may be appealed to the plant trade union committee and, if more than
500 lei (US$27) are involved, to a public court.

LABOR DIGEST
No; 87
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STATISTICS

1965

LABOR CONDITIONS IN SPAIN
Metropolitan Spain (including the Balearic Islands in the Mediterranean, the
Canary Archipelago off the west coast of Africa, and the cities of Ceuta and
Melilla on the Mediterranean coast of Morocco) has an area of 195,988 square
miles; it had a population of 31.5 million in 1964.
Factors Affecting Labor
Political. The present Spanish state was established at the end of the
Civil War of 1936-39,
replacing the Republic created upon the fall of the
monarchy in 1931.
General Francisco Franco has been Chief of State since
1939. The legislative organ of the Government is the unicameral Parliament
(Cortes),
composed of members appointed by the Chief of State,*Cabinet Min
isters, Government officers, and other members elected mainly by the munici
palities or designated by the syndicates
(official
labor and management
bodies). The Falange Espanola Tradicionalista, or ’’National Movement," is
the only political party permitted in Spainc
Economic. In 1964, mining and manufacturing accounted for 27.8 percent
of the gross national product (GNP); agriculture accounted for 20.8 percent;
wholesale and retail trade, 11.1 percent; transportation and communications,
6.T percent; construction,
6.0 percent; public administration and defense,
5.5 percent; and other sectors, 22.7 percent.
Crops represented 64 percent
of agricultural production.
Coal and iron ore are the principal mineral
products.
Industrial production includes steel, heavy machinery, ships,
motor vehicles, and petrochemicals. Per capita GNP was US$562 in 1964. The
4-year Economic and Social Development Plan
(1964-1967)
envisions rapid
industrialization and an average annual GNP growth rate of 6 percent, compared
with 4.5 percent in the 1954-62 period.
Social. Spanish is the official language; Basque, Catalan, and Gali
cian are also spoken in their respective regions. Roman Catholicism is the

religion of practically the entire population. Primary education is free for
a period of 8 years, starting at age 6, and compulsory through age 11. Accord
ing to of f icial estimates, 92 percent of the population were literate in 1964.
Manpower and Employment
Employment and Unemployment. At the end of 1963, an estimated 12 mil
lion persons, or 38.4 percent of the population, were in the labor force.
Approximately 4.7 million
(39.2 percent) were in agriculture,
4 million
(33.3 percent)
in industry, and 3.3 million (27.5 percent)
in services.
Wage and salary earners comprised 65.1 percent of the labor force, employers
and self-employed 30.1 percent, and unpaid family workers 4.8 percent.
Un
employment was unofficially estimated at 1.5 percent.
Underemployment in
agriculture and the service trades was extensive, but declining.
Some
150.000 workers emigrate each year to other European countries
(excluding
seasonal migration).
During 1963, some 103,000 new jobs were created,
of
which 30 percent were in industry.
The Development Plan sets a target of
250.000 new jobs a year through 1967.
Productivity,
Skills, and Training,,
Lack of adequate training,
a
shortage of skilled manpower, obsolete equipment,
and inadequate managerial
techniques are regarded as the principal causes of low productivity. As of
1960, more than 50 percent of the labor force had only an elementary educa
tion and were without basic skills. The number of new skilled workers needed
by the economy during each year of the Development Plan was estimated at
80,000 in 1963, but fewer than 30,000 were completing training. In an attempt
to meet the need, the Government has embarked on a program (a) to expand
vocational and technical training, (b) to double the total school enrollment
by 1967, and (c) to provide at least 740,000 skilled workers, technicians,
and professional employees by 1968c
Labor Standards
Labor Legislation,, Minimum wages and working conditions are stipu
lated in ordinances issued by the Ministry of Labor, as prescribed by the
Labor Regulation Law of 1942. Standards higher than those established in the
labor ordinances may be (and frequently are) made mandatory by collective
agreements for an enterprise, a group of enterprises, or an entire industry.
Under a law of 1958, collective agreements are negotiated between the manage
ment and labor segments of the syndicates, subject to approval by the Ministry
of Labor. Nationwide minimum standards are established by the Labor Contracts
Law of 1944, as amended. Hours of work, overtime, paid holidays, annual and
sick leave, and dismissal, as well as the employment of women, children, and
foreigners, are also regulated by legislation.
Strikes are outlawed by a
decree of 1938 (Charter of Labor),
as amended.
Social security is governed
by the Social Security Law of 1963, together with subsequent related
legis
lation.
It includes family assistance, unemployment compensation, health
and maternity care, and insurance for work injuries, invalidity, old age, and
death.
Administration and Practice. Labor and social affairs are the exclusive
responsibility of the Central Government. The Ministry of Labor drafts laws,

for approval by the Parliament,
and issues decrees on labor standards; it
administers these statutes and supervises the labor courts.
The Spanish
Syndicate Organization (SSO), the official unitary association of employers,
the self-employed, and wage and salary earners,
supervises labor-management
relations,
although the final authority rests with the Minister of Labor.
The Ministry of Labor and the SSO maintain representatives (Provincial Dele
gates of Labor and Provincial Delegates of Syndicates, respectively) in each
of the country!s 50 Provinces.
Enforcement of labor and social legislation
is handicapped by a shortage of inspectors, particularly in rural areas.
Wages, Hours, Prices, and Level of Living
The legal basic daily minimum wage for unskilled labor was set at 60
pesetas (US$1), beginning in January 1963, except for apprentices and certain
categories of farm workers. Higher rates are usually established in collec
tive agreements. The average daily pay as of May 1965 was about 224 pesetas
(US$3.70) for a carpenter or plumber, and 180 pesetas (US$3) for asemiskilled
worker.
Average weekly pay for a beginning office clerk was about 1,000
pesetas (US$17.60), for a senior bank clerk 2,700 pesetas (US$45), and for
a junior engineer about 4,000 pesetas (US$67). Bonuses and allowances (fam
ily, length of service,
incentive, and seasonal), which vary considerably,
may add 35 percent or more to base pay.
The maximum hours of work for most workers are 48 hours over a 6-day
week.
Shorter hours may be prescribed for certain industries,
e.g., coal
mining, by ordinances of the Ministry of Labor or in collective agreements.
The average workweek in industry and services was 44 hours in 1963. Overtime
may not exceed 50 hours a week.
Per capita income is one of the lowest in Western Europe, US$490 in
1962. However, wage increases since 1960 have outstripped rises in the cost
of living, resulting in a marked increase in real earnings for workers covered
by recently concluded collective agreements.
An expanding social security
system also contributes to a rising standard of living.
On the other hand,
inadequate housing for low-income families is still one of Spain's most acute
social problems. A 17-year housing plan,
intended to remedy the situation,
was instituted in 1961.
The current Development Plan aims to reduce the
present sharp income differences among the various social segments and geo
graphic regions.
Employer Organizations
The Syndicate Organization is one of the entities officially charged
with labor-management relations and overall guidance (working with Develop
ment Plan officials) of the entire national economy. In addition, management
has chambers of commerce,
industry, and navigation.
The chambers have a
token representation
(3 members out of nearly 600) in the Parliament, while
the syndicate members constitute one-third.
Labor Organizations
In accordance with the principles of the corporate state, trade unions
do not exist in Spain. The only permissible forms of labor organization are

the syndicates, in which both employers and workers are represented. There
are 28 syndicates, each one a quasi-governmental organization of employers,
technicians, and workers.
Former trade unions have retained their identity
quarters outside Spain, mainly in France.

by setting up head

Labor-Management Relations
Collective agreements, presumably, are designed to supplement and improve
the minimum conditions stipulated by labor regulations and ordinances. Nego
tiations are conducted under official supervision, within the Syndicate Organ
ization, by representatives of the labor and management sections within each
syndicate.
These representatives also attempt conciliation of individual
disputes. Cases not settled by this means are referred to the Ministry of
Labor for further consideration; if agreement is still not reached, cases
are submitted to the labor courts for final arbitration.
Although strikes and lockouts are illegal, a number of
occurred in recent years, particularly in Asturias and Vizcaya
of Spain.
A strike of coal miners
in April-May 1964 and its
sympathy walkouts, involved, for example, nearly 38,000 people,
official Spanish sources.

strikes have
in the north
accompanying
according to

LABOR DIGEST
No. 88
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STATISTICS

1965

LABOR CONDITIONS IN SWEDEN
Sweden is situated on the Scandinavian Peninsula in the north of Europe.
It
covers 173,000 square miles, and had a population of 7.7 million in 1964.
Factors Affecting Labor
Political.
Sweden is a constitutional monarchy.
King Gustav VI
Adolf has been head of state since 1950. Legislative power is vested in the
Crown and the Parliament (Riksdag), which consists of an upper House of 151
members,
elected for 8-year terms by Provincial
and city councils, and a
lower House of 234 members, elected every 4 years by universal
suffrage.
Executive policy is formulated by the Prime Minister and a 15-member Cabinet;
decisions are made by a number of central boards and agencies responsible to
the Cabinet. The Social Democratic Party,
led since 1946 by Prime Minister
Tage Erlander, has been in office, alone or in coalition, since 1932.
Economic.
Sweden1s chief natural resources--forests, iron ore, and
water power--are the basis for its highly developed industrial, predominantly
free-enterprise economy.
To the gross national product (GNP), estimated at
US$18,528 billion in 1964 (equaling a per capita GNP of US$2,255, the highest
in Europe), mining, manufacturing, and construction contributed 48 percent,
services 44 percent, and agriculture and forestry 8 percent. Agriculture is
highly mechanized,
and produces virtually all food needed on the 10 percent
of the land which is arable. In manufacturing, production of electrical and
other machines, transportation equipment, and primary metals is the most im
portant, followed by woodpulp, paper and paperboard, lumber, food processing,
textiles, and chemicals and allied products.
Social. The population is concentrated in the south, and more than
half is urban.
The Swedes are ethnically homogeneous, with only small mi
norities of Finns and Lapps in the north. Swedish is the official language,

and at least 94 percent of the population belong to the state-established
Lutheran Church.
Education is free and compulsory for 7 to 9 years, begin
ning at age 7. The people are highly literate.
Manpower and Employment
Employment and Unemployment. The labor force totaled 3,760,000 per
sons, approximately half of the population,
in November 1964.
Of these,
1,594,200 (42.4 percent) were engaged in manufacturing, construction, mining,
and utilities; 864,800 (23 percent), including 600,000 employees of govern
ment on all levels,
in services; 565,300 (15 percent)
in commerce; 451,200
(12 percent)
in agriculture;
254,500 (6.8 percent)
in transportation and
communications; and 30,000 (0.8 percent) were not classified by industry.
Wage and salary earners numbered 3,166,000,
employers and self-employed
431,000 (including 216,000 farmers), family helpers (mostly on farms) 110,000,
and 53,000 were not classified. Women comprised one-third of the labor force.
The unemployment rate has been low in recent years; it was 1.7 percent of
the labor force in 1964. The demand for labor in industry has exceeded the
supply, and about 145,000 foreign workers were employed in Sweden at the
beginning of 1965.
Productivity,
Skills, and Training.
Labor productivity is high, as
indicated by industrial production increases of 3.7 percent in 1962, 5 per
cent in 1963, and 7 percent in 1964, with little corresponding increase in
manpower.
Labor productivity in agriculture increased about 40 percent be
tween 1950 and 1960.
Professional, technical,
and production workers are
highly competent.
Full-time students
in vocational and technical schools
totaled 76,000 in 1962. Of some 60,000 workers under 18 employed in industry,
most were receiving on-the-job training. A Government program for retraining
adult workers helps to keep unemployment low and to fill industry’s demand
for skilled workers.
Labor Standards
Labor Legislation. Swedish labor legislation covers four major areas:
(1) Working Conditions--These are governed by the General Act on Working
Hours of 1930, amended in 1957; the Holidays Acts of 1945 and 1951;
the
Workers* Protection Act of 1949 and regulations issued thereunder; the FourWeek Annual Vacations Act of 1963; and laws on the employment of special
groups, including women and minors. (2) Labor-Management Relations--Existing
practices were largely codified by the Acts of 1928 on Collective Agreements
and the Labor Court, and the Act on Right of Association and Right of Col
lective Bargaining of 1936, amended in 1940 and 1945. (3) Social Insurance-The General Social Insurance Act of 1962, which codified and superseded pre
vious laws , reaffirmed the principle of protecting all citizens during periods
of need.
This and other legislation provides for benefits in case of sick
ness and maternity , work injury, unemployment, old age, invalidity, and death,
plus family allowances.
(4) Manpower Policy--Manpower policies and adminis
tration are governed by the Royal Instructions of 1948, authorizing the work
of the National Labor Market Board and the Public Employment Service.
Administration and Practice.
Labor and management participate fully
in the formulation of the Government's labor policy and in the administration

of labor laws through autonomous boards. Under the Ministry of the Interior
are (1) the National Labor Market Board, which makes manpower policy, super
vises the Public Employment Service, and administers programs to further the
mobility, training,
and efficient use of workers;
and (2) the Labor Court,
which is the major Government agency for labor-management relations.
Under
the Ministry of Social Affairs are (1) the National Board of Industrial Safe
ty, which implements laws on hours of work and health and safety, and oper
ates the Labor Inspectorate;
(2) the National Social Insurance Board, which
supervises the social insurance funds; and (3) the National Social Welfare
Board, of which the National Mediation Service is a part.
Wages, Hours, Prices, and Level of Living
Sweden has no wage laws; pay rates are set by collective bargaining.
Average hourly earnings for men workers in mining and manufacturing were
8.39 kroner (US$1.62), and for women workers 6.34 kroner (US$1.22) in May
1965. Wage supplements, including paid leave,
social security benefits,
family allowances, and special bonuses, are estimated to average 15 percent
of earnings. Legislation on hours applies only to workers whose working time
is not regulated by collective agreement--about one-third of the labor force.
The contractual hours of work for most workers are 8 to 9 per day, and 45
per week.
The 5-day week is widespread.
Overtime pay is normally set by
collective agreement at 35 percent of regular hourly pay for the first 2
hours, 50 percent for additional hours, and 100 percent for Sunday and holi
day work. Most employees have at least 11 paid holidays and 4 weeks of paid
annual leave.
Public health and consumption statistics indicate that Sweden has the
highest level of living in Europe. Although consumer prices have risen about
85 percent since 1949, wage increases have been far greater; average indus
trial earnings rose nearly fourfold between 1949 and 1964.
On a national
basis, average income per wage earner,
including part-time employees, was
equivalent to about US$2,710 in 1964.
Employer Organizations
The Swedish Employers* Confederation (SAF), which comprises 44 trade
and industry associations with 1 million employees, acts as their represen
tative in labor-management relations.
The SAF maintains a fund from which
members may be compensated for financial losses incurred in connection with
strikes and lockouts lasting more than 7 days. Smaller associations function
in commerce,
agriculture, and maritime shipping, as well as in the public
sector, where federations and boards of employers bargain with employee
unions.
Labor Organizations
Of the 3,166,000 wage and salary earners, 2,163,000, or about 68 per
cent, are members of trade unions. About 95 percent of all trade union mem
bers belong to two affiliates of the International Confederation of Free
Trade Unions (ICFTU): The Swedish Trade Union Confederation (Landsorganisationen i Sverige--L0) with 1,563,273 members, or about 72 percent of the total
trade union membership; and the Central Organization of Salaried Employees

(Tj&nstem&nnens Centralorganisation--TCO) with 489,429
percent of the total trade union membership.

members, or about 23

Within the LO, 11 public service unions, with 160,000 members, have
formed a cartel representing their joint interests in discussions on wages
and working conditions with the Government.
Similar groupings have been
formed within the TCO by 4 unions of municipal employees,
13 unions of pri
vate employees, and 19 unions of public service employees.
Outside of the LO and the TCO,
there are about 113,000 trade union
members who belong to three small federations. One of them, the Swedish Con
federation of Professional Associations (Sveriges Akademikers Centralorganisation--SACO), also includes persons in independent professions and university
students.
Labor-Management Relations
Continuous labor-management cooperation was established through sever
al basic agreements between the SAF and the L0.
The basic agreements and
their implementing machinery, which had their beginnings in 1938, cover
collective bargaining negotiations, industrial disputes,
safety, training,
works councils, performance ratings, employment security, and women workers.
Periodic centralized
bargaining, usually every 2 years,
establishes the
total amount available for wage increases, while actual wage rates are set
in industrywide agreements.
Strikes are legal when there is no collective bargaining agreement
in force, and after Government mediation efforts have failed.
Strikes are
usually well disciplined.
In accordance with basic labor-management agree
ments, workers usually continue to perform work essential for safeguarding
plant and materials and for protecting health.
Management, on its part,
very rarely uses strikebreaking methods.
In illegal strikes,
the Labor
Court may fine individual strikers. In 1963, there were 24 strikes involving
2,841 workers, with a loss of 23,000 working days.

LABOR DIGEST
No. 89
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS

1965

LABOR CONDITIONS IN SW ITZERLAND
Switzerland, situated in the center of Europe, is a mountainous country with
a total area of nearly 16,000 square miles and apopulation estimated in 1963
at 5.8 million.
Factors Affecting Labor
Political. Switzerland is a federal republic composed of 22 Cantons,
which, under the Constitution of 1874, retain sovereignty in all matters not
delegated to the Federal Government.
Supreme Confederal authority is vested
in the bicameral Federal Assembly, which comprises the National Council and
the Council of States. Members of the National Council are elected for- 4-year
terms under a system of proportional representation; the Council of States
consists of 44 representatives--2 elected in each Canton. Executive power is
vested inaFederal Council of seven members, elected by the Federal Assembly
for 4-year terms. From among their number, the President is chosen each year
by the Assembly .
All legislation must be approved by both Houses of the Federal Assembly,
and by popular vote whenever eight Cantons or 30,000 voters request a referen
dum*
Amendments to the Constitution must be approved by popular vote. The
dominant parties are the Social Democratic, the Free Democratic (or Radical),
and the Conservative Christian Socialist People1s Party.
Economic. Switzerland is highly industrialized and, owing to scarce
natural resources, heavily dependent on imports of food and industrial raw
materials. Manufacturing is concentrated on products requiring a high degree
of skill and precision work; machinery, watches, clocks, tools, instruments,
and pharmaceuticals are the most important exports. Agriculture is important,
but production is limited by a lack of level and fertile land. Other important
economic activities include foreign commerce,
international banking, insur
ance, and tourism. Per capita gross national product was US$2,024 in 1963.

Social. Ethnic groups in Switzerland are differentiated primarily on
the basis of language. More than two-thirds of the population are of Germanic
origin and speak Swiss German; about 19 percent are French speaking, almost 10
percent speak Italian, and 1 percent (in the southeastern Canton of Graubunden)
speak Rhaeto-Romansh. German, French, and Italian are official national lan
guages.
In 1960, 52.7 percent of all Swiss residents were Protestants, 45.6
percent Roman Catholics, and 1.7 percent members of other faiths.
Education
is free and compulsory for 8 or 9 years, depending on the Canton. Virtually
the entire adult population is literate.
Manpower and Employment
Employment and Unemployment. In 1960, a total of 2,590,000 persons, or
45 percent of the population, were in the labor force. Of these,
1,011,000
were employed in manufacturing and crafts; 338,000 in commerce, banking, and
insurance; 292,000 in agriculture and forestry; 250,000 in transport, communi
cations, and the hotel industry; 234,000 in the construction industry; 75,000
in domestic service; and 390,000 in miscellaneous activities. Approximately 86
percent of the labor force were wage and salary earners. At the beginning of
1964, according to unofficial estimates, the total labor force was about 2.7
mi 1lion.
Labor is in short supply; Cantonal employment offices reported 5,685
job vacancies and only 631 unemployed in December 1964.
Foreign workers,
recruited to relieve the shortage, amounted to more than one-fourth of the
labor force in August 1964.
The large volume of foreign labor has become a
major political and economic issue in Switzer land, and legislation to restrict
the influx of foreign workers into the country was passed early in 1965.
Productivity, Skills, and Training. Swiss manufactures generally have
a high skilled labor value and are either special quality products or do not
lend themselves readily to mass production methods.
But rationalization
investment has increased during the last decade, the economic growth rate has
been steady, and productivity per worker has risen.
In 1963, productivity
gains were most pronounced in chemicals and in the metals and machinery indus
tries. Most workers receive training in industry under apprenticeship pro
grams; at the end of 1963, a total of 131,039 apprentices were under contract.
The Federal Government establishes apprenticeship requirements and subsidizes
vocational education under the Vocational Training Law of 1963 and the Agri
cultural Training Act of 1955. High-level scientific and technical personnel
are scarce.
Labor Standards
Labor Legislation. Since labor matters are regulated by the Cantons,
as well as by the central Government, some legislative provisions and social
benefits vary from one Canton to another. The major Federal labor laws include
the Law on Work in Factories,
the Code of Obligations for employers and em
ployees, the Home Work Act, the Resolution on the Declaration of Collective Con
tracts as Generally Binding, the actconcerning the Federal Conciliation Board
for Collective Labor Disputes, the Employment Service Law, the act concerning
Family Allowances for Employees in Agriculture,
the Unemployment Insurance

Act, and the Old-Age and Survivors1 Insurance Act,
In March 1964, a new
Federal labor law for industry, commerce, and trade was passed (subject to a
referendum), which is intended to replace the factories legislation and pro
visions of other laws on the weekly day of rest and the employment of women
and children.
Administration and Practice. Labor legislation is administered by
agencies of the Federal and the Cantonal Governments.
The Law on Work in
Factories, which in 1963 covered 760,771 workers in 14,354 establishments, is
administered by the Federal Bureau of Industry, Crafts, and Labor.
The same
Bureau supervises the unemployment insurance program,
in collaboration with
Cantonal employment offices.
The Office of Social Insurance.in the Federal
Department of the Interior administers
the old-age and survivors’ insurance
program.
Wages, Hours, Prices, and Level of Living
Average hourly earnings in October 1963 were 5 Swiss francs (US$1.16)
for male skilled workers and 4.13 francs (US$0.96) for male semiskilled and
unskilled workers. Female workers averaged 2.82 francs (US$0.65) per hour.
Male adult salaried employees earned an average of 1,220 francs (US$282.40)
per month, and female salaried employees, 745 francs (US$172.47) per month.
Legislation passed in 1964 maintained the maximum legal workweek at 46
hours.
The average workweek in manufacturing enterprises was 45.5 in 1963.
The number of paid legal public holidays varies from 4 to 8, and the minimum
annual paid vacation is 6 days; more favorable provisions have been adopted
in some industries by collective agreements.
Because of the strong economic expansion in recent years, the Govern
ment has adopted policies to curb inflationary pressures. The consumer price
index was 209.8 (August 1939=100) at the end of December 1964, having increased
by 2.3 percent during the previous 12 months. Between June 1939 and October
1963, real earnings (adjusted for price changes) of workers had increased an
average of 73 percent, and the real income of salaried employees, an average
of 45 percent.
Employer Organizations
Employers are organized in industrial and commercial groups or Cantonal
associations, many of which are members of central organizations.
The four
largest central employers* organizations are the Central Federation of Swiss
Employers* Associations, the Swiss Association for Commerce and Industry, the
Swiss Federation of Arts and Crafts, and the Swiss Farmers* Federation.
Labor Organizations
Of the approximately 2,325,000 wage and salary earners, about 807,000,
or 35 percent, are members of trade unions. The largest trade union organiza
tion, the Swiss Federation of Trade Unions { Schweizerischer Gewerkschaf tsbund-SGB), an affiliate of the International Confederation of Free Trade Unions
(ICFTU), has 451,102 members.
A federation of white-collar workers,
the

Federation of Swiss Employees’ Societies (Vereinigung Schweizerischer Angestelltenverbande--VSA), which has fraternal relations with the SGB , has a
membership of 116,310. Together,
these federations represent more than 70
percent of all trade union members. Two federations are organized on adenominational basis,
the Catholic Swiss Federation of Christian-National Trade
Unions (Christlich-Nationaler Gewerkschaftsbund der Schweiz--CNGS) with 93,397
members, and the Swiss Federation of Protestant Trade Unions (Schweizerischer
Verband Evangelischer Arbeiter und Angestellten--SVEAA) with 13,840 members.
Both the CNGS and the SVEAA,
representing about 14 percent of all organized
labor, are affiliated with the International Federation of Christian Trade
Unions (Confederation Internationale des Syndicats Chretiens--CISC).
The Swiss Association of Autonomous Unions
(Landesverband Freier
Schweizer Arbeiter--LFSA), a Liberal union with 18,723 members, is affiliated
with the World Union of Free Trade Unions (WUFTU), an international organiza
tion of Liberal unions with members in a few countries and headquarters in
Ghent, Belgium.
Labor-Management Relations
Collective agreements are used extensively
in industrial relations.
Most contracts are negotiated between a trade union local or federation and
an individual employer; of the 1,580 collective agreements
in effect at the
end of 1963, more than half were concluded between individual employers and
unions. The Federal Government may extend the application of an agreement to
the entire industry concerned.
Industrial disputes are usually settled peaceably, either through the
provisions of basic labor-management "peace agreements," patterned on one
which was negotiated in the metal industry in 1937 and is renewed periodically
or, in case private conciliation efforts fail, through voluntary arbitration
procedures offered by Federal or Cantonal authorities.
Strikes occur infre
quently; there were none in 1961 and only two, involving a loss of about 1,400
man-days,
in 1962.
Man-days lost through strikes rose to 70,700 in 1963
largely on account of one dispute involving plasterers in Zurich.

LABOR DIGEST
Ho. 90
UNITED STATES DEPARTMENT OF LABOR
BUREAU O F LABOR STATISTICS

1965

LABOR CONDITIONS IN TH E U.S.S.R.
The Union of Soviet Socialist Republics (U.S.S.R.), which extends from eastern
Europe over northern Asia to nearby Alaska, had at the beginning of 1965 a
population of 229 million and an area of 8.6 million square miles.
Factors Affecting Labor
Political. The country is under the dictatorship of the Communist
Party of the Soviet Union (CPSU), which operates through governmental bodies
and mass organizations. The present Communist Party head is Leonid Brezhnev;
the Council of Ministers, which exercises administrative functions but is
subordinate to the Party, is presided over by Aleksei Kosygin.
The legisla
ture (Supreme Soviet), ostensibly elected by popular ballot under the oneparty
system, generally meets briefly twice a year to approve
legislation
recommended by the Council.
The Soviet Union maintains military links with
most of the Communist Eastern European countries through the Warsaw Pact of
1955 and economic ties through the Council of Mutual Economic Assistance
(CEMA).
Economic. The country has a socialized planned economy.
In I960,
state-owned enterprises accounted for about 97 percent of industrial produc
tion, and state-regulated cooperative enterprises for about 3 percent.
Over
99 percent of the farmers are on state and collective farms.
Since 1928,
successive 5-year and 7 -year economic plans have transformed the once mainly
agricultural economy into a highly industrialized one.
In 1963, the Soviet
gross national product per capita was estimated as $ 1,178, compared with $3,084
in the United States.
Social. The census of 1959 showed that the largest ethnic groups were
the Russians, with 54.8 percent of the population, and the Ukrainians,
with
17.7 percent. Among other large groups, each with a population of over 1

million (0.5 percent), were the Byelorussians, Uzbeks, Tatars, Kazakhs, Arme
nians, Georgians, Lithuanians, Germans, Latvians, Poles, and Estonians.
The
Government has enacted legislation regulating and restricting religious
groups and their activities.
The largest religious group is that of the
Russian Orthodox Church, with a claimed membership in 1959 of about 50 mil
lion. About 25 million persons were adherents of Islam.
There were about 8
million Roman Catholics, 4 million Baptists, and over 2 million Jews. For
most children, 8 years of free primary schooling are compulsory from the age
of 7.
Manpower and Employment
Employment and Unemployment. In 1959, about 47.5 percent (99.1 mil
lion out of 208.8 million) were economically active. Of these, 38.8 percent
were in agriculture*, 36.9 percent in industry, construction,
transport, and
communications; 14.6 percent in education, research, health work, finance and
credit, housing, and public utilities; 5.2 percent in trade and restaurants;
3.6 percent in the armed services; and 0.9 percent in other or unspecified
activities.
At the beginning of 1965, practically all of the 73 million wage and
salary earners in the Soviet Union were in the socialized sector. The regime
claims
that unemployment is nonexistent.
There is no national
system of
public employment offices, but cities have job placement commissions, and
the individual Republics have recruitment agencies for workers for the Far
East and Far North.
Productivity, Skills, and Training. The Government has been promoting
educational and training programs to implement its ambitious economic plans.
The 1959 census showed that 51.7 percent of the workers in Soviet industry
(mostly manufacturing and mining) were skilled, 46.4 percent were semi ski 1led,
and only 1.9 percent were unskilled.
T h a Government
claimed that, in 1965,
about 68 million persons were studying or undergoing training (nearly 5 mil
lion of them taking evening or correspondence courses on all levels). About
3.6 million were enrolled on the college
level, and over 3.3 million were
students in secondary technical schools.
In 1958, about 6.5 million workers
had raised their job qualifications while holding full-time jobs. Along with
the increasing proportion of skilled workers, industrial labor productivity
(which has been estimated as nearly half that of the United States) has in
creased annually about 5 percent, on the average, during the period 1960-64.
The Government is seeking to raise the relatively low level of productivity
through (1) reduction of the prevailing serious labor turnover, especially
in the more remote areas where living and working conditions are hard, and
(2) introduction of new technology and more efficient working methods.
Labor Standards
Labor Legislation. The fundamental characteristic of Soviet legisla
tion has been the attempt to maintain more or less rigid control over the
labor force for the purpose of achieving the regime’s economic and other ob
jectives.
The Constitution of the U.S.S.R. declares work to be a matter of
duty for every able-bodied citizen, calls upon him to maintain labor discipline,
2

and guarantees him the right to work, the right to rest days and paid annual
vacations,
and the right to educational, cultural, health, and social in
surance benefits. The 1922 Labor Code of the Russian Soviet Federated Socialist
Republic (R.S.F.S.R., the largest of the 15 Republics of the U.S.S.R.), as
amended, is the principal Soviet labor legislation. This code and many other
special laws and regulations establish the rules of employment and training,
hours of work, and holidays; fix wage rates and standards of work safety and
hygiene; regulate the activities of the Soviet trade unions and the employ
ment of women and young workers; and prescribe labor discipline, rules re
lating to social insurance, and procedures for settling workers’ grievances
or disputes.
Administration and Practice. There is no centralized national gov
ernment administration of labor legislation.
In 1933, the Commissariat
(Ministry) of Labor was abolished. Most of its administrative organs, in
cluding those dealing with social insurance, were absorbed by the All-Union
Central Council of Trade Unions (AUCCTU), which is an arm of the Government.
The State Committee on Questions of Labor and Wages, created in 1955 as an
agency of the Council of Ministers, has as its main function the unifying
and the systematizing of the wage system in the U.S.S.R.
The Council of the
National Economy (Sovnarkhoz) and the State Planning Committee (Gosplan) are
responsible for manpower planning on the national
level; their subordinate
regional bodies control the training and allocation of the labor force in
factories and the appointment of top-level management personnel.
The State
Committee for Vocational and Technical Training administers the country’s
trade schools. On the local level, the managements of enterprises and trade
union bodies are responsible for the implementation of labor legislation.
Most labor legislation seems to be strictly enforced.
In the past,
and to some extent today, shortages of resources, or tight production sched
ules, have prevented the implementation of some legislation, especially that
providing for the introduction of modern safety equipment at plants and for
construction of adequate housing space for workers.
Wages, Hours, Prices, and Level of Living
Most workers are on a 7-hour workday and a 41-hour workweek (6 hours
on Saturday). Overtime work at higher rates (usually time-and-a-half for
the first
2 hours) is limited to 4 hours within 2 successive days and to
120 hours a year. All workers are guaranteed an annual vacation of 12 to 36
workdays, depending primarily on years of continuous employment and the nature
of the j o b .
Average earnings of workers have been steadily rising as a consequence
of the increasing proportion of skilled workers and the continuous increase
in labor productivity.
At the beginning of 1965, average monthly earnings
of wage and salary earners were about 90 rubles (US$100).
Supplements to
earnings appear in the form of family allowances, free medical care, sickness
benefits, scholarships, and other fringe benefits to workers.
The prices of consumer goods and services are fixed by the Government,
which claims that real earnings per worker rose about 6 percent annually on

the average in the decade before 1964; in 1964, an increase of 4 percent was
claimed. Many consumer goods, such as meat and household equipment, continue
in short supply, and the available goods are admittedly wanting in variety
and quality.
There is also a shortage of consumer services, such as those
offered by repair shops and drycleaning laundries. Prices of consumer goods
are high by U.S. standards in terms of worktime required to buy goods.
The
housing
situation is one of the most
serious problems in every city (in
Leningrad, for example, the minimum waiting period for a new apartment by
qualified registrants is about 5 years); in 1957, the Government decreed a
12-year housing construction program to ease this situation.
Labor Organizations
The All-Union Central Council of Trade Unions (AUCCTU--Vsesoyuznyy
Tsentral'nyy Sovet Professional1nykh Suyuzov) is an arm of the Government,
and its primary purpose is implementation of Government-Party policy with
regard to the working population.
As a result of contractions, the number of
national affiliates organized on an individual basis has been reduced to 22.
The AUCCTU claims a 70-million membership, which represents 96 percent of all
wage and salary earners.
Trade union members in an establishment elect a factory committee of
up to 25 members which represents all the wage and salary earners of an en
terprise or establishment in all questions relating to the work and welfare
of workers.
This committee, which may include management personnel, partic
ipates in an advisory capacity in drafting the factory’s production and
construction plans; checks .on the implementation of these plans and on the
observance by management of labor legislation and trade union-management
•observance of obligations under ’’collective contracts"; administers the so
cial security laws in the factory; advises management on the appointment of
workers to managerial posts; and can prevent management from discharging a
worker.
Labor-Management Relations
Collective bargaining in the Western sense does not exist in the Soviet
Union, as the Government establishes wage rates, hours, conditions of work,
and fringe benefits.
However, "collective contracts" are concluded annually
between managements of enterprises and the trade union locals, primarily for
the purpose of emphasizing production targets, and secondarily for the im
provement of working and living conditions. By unwritten
law, trade unions
are not permitted to strike, but several wildcat strikes of brief duration
have occurred, usually in protest against price increases, food shortages,
or intolerable working conditions. Disputes over pay, job assignments, work
ing conditions,
and other specified matters which are not satisfactorily
settled by
labor disputes boards may be appealed to the factory
committee
and to the public courts.

LABOR DIGEST
Ho. 91
UNITED STA TE S DEPARTM ENT O F LA B O R
BUREAU O F LABOR STATISTICS

This is

one of a series

1965
of brief notes on

labor conditions

prepared in the

Division of

Foreign Labor Conditions of the Bureau of Labor Statistics, for inclusion in the Directory

of Labor Organizations-Jeurope, jointly prepared and published in 1965 by the Bureau of
International Labor Affairs and the Bureau of Labor Statistics.

LABOR CONDITIONS IN T H E UNITED KINGDOM
The United Kingdom comprises England, Scotland, Wales, and Northern Ireland,
as well as a number of small adjacent islands, and is separated from the
continent of Europe by the English Channel.
It has a total area of 94,200
square miles, and had a population of 54 million in 1964.
Factors Affecting Labor
Political. The United Kingdom is a constitutional monarchy.
Queen
Elizabeth II has been the sovereign since 1952.
Executive powers are exer
cised by the Cabinet, headed by a Prime Minister.
The national Parliament
consists of the House of Commons, which has 630 members elected by universal
suffrage, and the House of Lords, composed of some 900 hereditary and appointed
peers.
Northern Ireland has a separate legislature but is represented in
the national Parliament and subject to much of its legislation. The Conserv
ative Party and the Labor Party are the leading political organizations.
Economic. The United Kingdom, one of the world's most highly industralized countries, ranks second after the United States in volume of foreign
trade. With few natural resources and limited agricultural land, the United
Kingdom imports
large quantities of food and raw materials and strives to
maintain a correspondingly high level of exports.
In 1963, 35 percent of
the gross national product (GNP) was derived from manufacturing;
33 percent
from distributive trades and services;
12 percent from utilities and trans
portation;
4 percent from agriculture, forestry, and fisheries;
3 percent
from mining and quarrying;
and 13 percent from other activities. Major in
dustries, whose products also constitute the main exports, are iron and steel,
engineering, chemicals, food processing* textiles, and miscellaneous consumer*
goods. The per capita GNP was US$1,619 in 1964.
Social. The principal ethnic strains are the English, Scotch, Irish,
and Welsh. It is estimated that several hundred thousand persons of different

racial origin immigrated from British territories during the past decade. The
predominant religion is Protestant Episcopal,
represented by the Church of
England.
Education is free and compulsory between the ages of 5 and 15.
Illiteracy is virtually nonexistent.
Manpower and Employment
Employment and Unemployment.
In June 1963, the labor force was 25.6
million, or 48 percent of the population.
Of the civilian segment of 24.7
million, about 36 percent were in manufacturing;
22 percent in services; 14
percent in the distributive trades; 7 percent in construction;
7 percent in
transport and communication; 4 percent in agriculture, forestry, and fishing;
3 percent in mining and quarrying; 2 percent in gas, electricity, and water;
and 5 percent in government service.
Wage and salary earners constituted
about 23 million, or 89 percent of the total labor force. Registered u n
employment averaged 612,300, or 2.6 percent of all wage and salary earners
in 1963, and 413,400, or 1.8 percent in 1964.
Productivity, Skills, and Training. The labor force is generally well
trained and highly productive. Vocational training has long been primarily
the responsibility of industry.
But the Government, in an effort to remedy
increasing shortages of skilled labor since the end of World War I I , expanded
its role with the passage of the Industrial Training Act, which became oper
ative in March 1964.
Designed to ensure high standards and maximum effec
tiveness of training programs, and spread the cost more equitably,
the act
empowers the Minister of Labor to set up Government-supervised training boards
in industry.
The boards arrange for training classes, collect
levies from
employers, and make grants to enterprises conducting approved programs of
their own.
Both the boards and a central advisory training council include
management and labor representatives and educational experts.
In addition,
the Government continues to operate training centers for special categories
of workers, e.g., veterans and the disabled, and conducts accelerated training
courses for displaced and older workers.
Scientific manpower is trained at
a number of technical colleges at the university level.
Labor Standards
Labor Legislation. Minimum standards for safety, health, and welfare
at the workplace have been established by law. The Trades Union Act of 1871
encourages collective bargaining, although it is not a statutory duty and
collective agreements are not enforcible in the courts. The compensation and
hours of work for workers, mainly in retail trade and agriculture, where
collective bargaining arrangements are inadequate, are fixed by statutory
wage boards, on which managanent and labor are represented. Legislation pro
vides a comprehensive social security system, including sickness, maternity,
and industrial injuries insurance, family allowances, unemployment compensa
tion, old-age and invalidity pensions, and death benefits.
Administration and Practice. The Ministry of Labor is responsible for
the administration of manpower policy and for the enforcement of protective

legislation on minimum standards for working conditions, which are generally
well observed. The Ministry of Pensions and National Insurance administers
the social security system.

Wages, Hours, Prices, and Level of Living
In October 1964, the average weekly earnings of salaried men employees
in industry were 23 pounds, 11 shillings, and 7 pence (US$66.01),
those of
women employees E9 14s. 7 d . (US$27.23). Equivalent figures for wage earners
were E18 2s. 2d.
(US$50.57) and E8 19s. Id. (US$25), respectively.
Hourly
earnings of men wage earners averaged 91. Id. (US$1.07) in industry as a whole,
and 95.5d. (US$1.12) in manufacturing.
Supplementary benefits, such as wel
fare plans and other employee services, are estimated as averaging 14 percent
of earnings.
National legislation prescribes a maximum workweek of 48 hours.
The
standard workweek, determined by collective agreement for the great majority
of workers, is usually 42 to 44 hours, worked either during a 5-day or 5^-day
week. Hours actually worked in industry (excluding mining and construction)
averaged 46.8 per week in 1963.
Overtime pay is usually 25 percent of base
pay for the first 2 hours and 50 percent thereafter.
A minimum paid annual
vacation of 12 days or 2 weeks and 6 paid holidays are provided for practically
all workers, either through collective agreements or statutory orders.
The retail price index, which measures changes in living costs for
wage earners, rose by 4.1 percent between October 1963 and October 1964.
During the same period, average hourly earnings increased by 7.9 percent for
men and 7.1 percent for women.
Average per capita income was US$1,250 in
1963; labor*s share of total domestic income, which has been rising over the
past decade, was 68.8 percent.
Employer Organizations
A single body,
the Confederation of British Industry (CBI), as of
July 30, 1965, replaced three formerly separate entities--the Federation of
British Industries (FBI), the National Association of British Manufacturers
(NABM), and the British Employers* Confederation (BEC).
The merger was en
couraged by the Minister of Economic Affairs who favored negotiation of policy
agreements with a central body whose decisions would be binding on as many
individual firms and trade groups as possible.
At the time of the merger,
the CBI embraced 100 employers* associations,
200 trade associations, and
14,000 individual private enterprises, as well as some nationalized industries
having associate status. It was anticipated that the British European Airways,
the National Coal Board, and the British Railroads would join the CBI in the
near future.
A small group of members of the former NABM, who refused to
accept the merger,
set up their own group, the Society of Independent Manu
facturers (SIM). The CBI informs, advises, and represents its members in the
field of labor-management relations vis-a-vis the Government,
the trade
unions, and international organizations.

Labor O rgan ization s
Of the 23 million wage and salary earners,
8,756,991, or almost 40
percent, are members of trade unions; of these, 8,325,790 belong to the Brit
ish Trades Union Congress (TUC), an affiliate of the International Confedera
tion of Free Trade Unions (ICFTU).
TUC affiliates in Scotland have formed the Scottish Trade Union Congress
(STUC), representing 817,965 trade union members, including 17,294 belonging
to unions in Scotland not affiliated with the TUC*
Mutual interests of trade unions in related industries or occupations
have led to the formation of groupings of such unions with the view of coor
dinating their activities on general matters.
At present, there are s i x building trades, metalworkers,
printing and kindred trades, professional
workers,
shipbuilding and engineering,
and textile workers. Three of the
groupings are also being used to facilitate affiliation with International
Trade Secretariats.
Labor-Management Relations
Labor-management relations are regulated primarily by voluntary ar
rangements between the parties rather than by legislation.
Some 200 indus
trywide joint industrial councils, consisting of representatives of both sides
and an independent chairman, negotiate collective agreements for the various
industries at the national
level. Joint production committees deal with
problems arising in individual enterprises.
Where private collective bar
gaining machinery is inadequate, the Government may step in. The provisions
of collective agreements are usually applied to union members and nonmembers
alike, and are generally well observed, frequently also by employers not
party to the agreement.
Industrial disputes not settled by private facilities may, at the re
quest of the parties, be referred by the Minister of Labor for conciliation
or arbitration to an individual, an ad hoc board, or the permanent statutory
Industrial Court. In disputes affecting the national interest, the Minister
of Labor may initiate investigative procedures to inform Parliament and the
public of the facts involved.
Arbitration awards,
though not as a rule
legally enforcible, are accepted in most cases.
The incidence of strikes
has been rather low since World War II. In 1964, a total of 2,275,000 working
days were lost through strikes, compared with 5,798,000 in 1962 and 1,754,000
in 1963.

LABOR DIGEST
Ho. 92
UNITED ST A T E S DEPARTM ENT O F LA B O R
BUREAU O F LABOR STATISTICS

This is

one of

a series

1965
of brief notes on labor conditions

prepared in the Division of

Foreign Labor Conditions of the Bureau of Labor S tatistics, for inclusion in the Directoty

of Labor Organizations--Europe, jointly prepared and published in 1965 by the Bureau of
International Labor Affairs and the Bureau of Labor Statistics.

LABOR CONDITIONS IN YUGOSLAVIA
Yugoslavia, the largest of the countries in the Balkan Peninsula in south
eastern Europe, had at the beginning of 1965 a population of over 19 million
and an area of 98,766 square miles.
Factors Affecting Labor
Political. Officially called the Socialist Federal Republic of Yugo
slavia, the country has been controlled since the end of World War II by the
Communist Party, now called the League of Communists of Yugoslavia (LCY),
the only political party. Under the Constitution of 1963, legislative and ex
ecutive powers are vested in the Federal People's Assembly, whose executive
organ is the Federal Executive Council. President Josip Broz Tito has been
head of the party since 1937 and head of state since World War II.
Economic. Yugoslavia's economy is largely socialized and planned. All
natural resources (except agricultural small holdings of 25 acres or less) ,
industries, banking,
insurance, and large trade establishments are nation
alized, with the exception of some private nonagricu1tural enterprises in the
form of small shops.
About 85 percent of the agricultural land is operated
privately. The socialized sector accounts for over 70 percent of the nation
al income. The main industries are metal products,
textiles, woodworking,
food processing, and coal mining0 In the past decade, there has been a con
siderable decentralization of Government controls of wages, prices, and pro
duction quotas. The Government is attempting to let the market to some degree
determine prices and the flow of economic goods. The gross national product
for 1963 has been estimated at $6.5 billion, or about $342 per capita.
Social. Most of the population (nearly 90 percent) is of five Slavic
ethnic groups, made up primarily of Serbs (42.1 percent in 1961), Croats
(23.1 percent),
Slovenes (8.6 percent), Macedonians (5.6 percent),
and

Montenegrins (2.8 percent).
In addition,
there are 17 national minorities,
the largest being Albanian (4.9 percent), Hungarian (2.7 percent), and Turk
ish (1.0 percent).
There are three principal religions:
The Serbian Ortho
dox in 1953 had 41 percent of the population; the Roman Catholic, 32 percent;
and the Moslem, 12 percent.
In 1961, 79 percent of the population 10 years
of age and over were literate, and 26 percent of the labor force had less
than 4 years of schooling.
Manpower and Employment
Employment and Unemployment. The March 1961 census showed a labor
force of 8,354,000, or about 45 percent of the population.
The majority--57
percent--were employed in agriculture; 21 percent, in manufacturing and min
ing; 5.9 percent, in the professions and arts; 4.1 percent, in services; 3.5
percent, in finance and office; 2.7 percent, in transportation; 2.7 percent,
in trade; 1.6 percent,
in the armed services; and 1.5 percent, in other ac
tivities. Largely because of the private nature of agricultural operations,
about 55 to 60 percent of the labor force are in the private sector.
The 1961 census showed 3.5 million wage and salary earners, most of
them in the socialized sector.
(There were only 31,000 private employers,
primarily craftsmen, who are permitted to hire up to 5 persons each.) Unem
ployment is an increasingly
serious problem,
caused chiefly by the heavy
influx into industrial areas of peasants from the countryside, where under
employment is so extensive that about one-fourth of those engaged in agricul
ture could be released for other work; underemployment
in industrial enter
prises is estimated at about
10 percent.
In the first 5 months of 1964, a
monthly average of 247,000 unemployed persons and others wishing to change
jobs (about 80 percent of them unskilled) were registered as seeking jobs.
Productivity, Skills, and Training. The Government is attempting to
remedy the shortage of skilled labor by promoting educational and training
programs; reportedly, about 800,000 employed persons have been taking courses
annually.
In 1962, 40,617 persons passed examinations qualifying them as
highly skilled.
The rapidly rising level of labor productivity in industry
(at the annual rate of approximately 10 percent during 1963 and 1964) is still
considerably below that in the economically developed European countries,
primarily because of the proportionately large number of unskilled workers,
who, as a rule, maintain strong ties with the land and work only temporarily
in factories to improve their financial situation in the village.
In early
1965, about 100,000 unskilled workers were temporary emigrants in Western
Europe, especially West Germany, Austria, the Netherlands, and France.
Labor Standards
Labor Legislation. The December 10,
1957, Law on Labor Relations,
known as the Labor Code, and the Federal Constitution of April 7, 1963, con
stitute the basic labor legislation. The Constitution guarantees every work
er the right to work,
the right to choose his occupation, and the right to
participate in management; it provides for vocational training, unemployment
compensation, the protection of health at work, vacations, and social insur
ance benefits. The Labor Code contains the provisions of the 1950 law estab

lishing workers' councils, and regulating wages, hours of work, periods of
rest and leave, the protection of women and young workers, labor discipline,
and the hiring and firing of workers.
A worker may not be transferred to
another job or place without his consent.
Administration and Practice. The Secretariat for Labor of the Feder
al Executive Council is the supreme executive labor authority and supervises
the wage system, vocational training, the labor inspectorates, the labor ex
changes, and the social security system. Each of the six constituent Repub
lics has its own Secretariat for Labor, which checks on the labor functions
of district and municipal authorities. On the plant level,
the workers'
council is responsible for checking on the enforcement of labor legislation.
The degree of enforcement of labor legislation appears to vary from
plant to plant, being at its lowest in the economically underdeveloped south
ern part of the country. Aggrieved workers may take their cases to the civil
courts for a final decision.
Wages, Hours, Prices, and Level of Living
The Labor Code prescribes an 8-hour workday and a 48-hour workweek for
most workers. The 42-hour maximum workweek guaranteed for all workers by the
Constitution of 1963 is slowly being put into effect. Overtime, with timeand-a-half pay, is limited to 4 hours a day, 8 hours a week. After 11 months
of continuous employment, a worker is entitled to paid annual leave of 12 to
30 workdays, depending on years of service. Workers' real earnings are be
low the European average, but have been rising steadily. Wage scales on the
enterprise level vary from industry to industry, as they are usually estab
lished by the managing board of an enterprise, subject to Government approval.
Average monthly earnings (including premiums)
of all employed workers in
May 1964 were 32,000 dinars (US$42.67); earnings were highest in the Republic
of Slovenia and lowest in Macedonia. The largest supplement is the family
allowance, which ranges from 3,840 dinars (US$5.12) a month for one child to
15,920 dinars (US$21.23) for five children. Other supplements are free med
ical care, disability pensions, and scholarships for workers.
The Government establishes "ceiling prices" for a few basic commodi
ties and services, and controls indirectly
the prices of a wide range of
additional commoditiesc
Retail prices are high in relation to earnings, by
U.S. standards; for example,
the average worker has to work about a week to
buy a pair of men's ordinary dress leather shoes.
The Government claims that considerable improvement in living condi
tions has taken place. For example, between 1939 and 1963 per capita con
sumption of textiles increased by 50 percent; of meat, by
15 percent; of
sugar, by 250 percent; of footwear, more than 300 percent; and of electricity,
more than 2,200 percent. However, as a result of a rapid industrialization
program in the postwar period,
the industrial labor force (drawing on the
rural population) has increased much faster than the total supply of consumer
goods, services, and housing. In addition to relatively high prices of basic
consumer goods, the housing situation is so critical in the growing indus
trial areas that many workers must commute long distances from their villages.

Employer O rgan ization s
There is no national organization of employers or enterprise managers;
however, enterprises with common problems may form associations. On the Fed
eral and Republic levels there are economic chambers which include individual
chambers dealing with foreign trade,
industry, agriculture,
and all other
basic economic activities.
The chambers, whose officials are for the most
part drawn from member enterprises,
serve in many ways as an intermediary
between the enterprises and the state. They deal with broad policy matters
of concern to the enterprises,
including financing, marketing, vocational
training, working conditions, and wages.
Labor Organizations
Yugoslav trade unions are practically organs of the Government; their
primary task is to promote production through educational, advisory, and
watchdog activities.
Strikes are not prohibited by law, but as a matter of
practice, unions do not have the right to strike nor to bargain for higher
wages, shorter hours, or fringe benefits. The trade unions have encouraged
the establishment by several
local governments
(communes) of workers* uni
versities to train workers for responsible positions, including participation
in workers' management bodies.
There are six national trade unions, united in the Confederation of
Trade Unions of Yugoslavia (CTUY) , with a membership at the beginning of 1964
of some 3 million, or about 87 percent of the wage and salary earners.
The
CTUY has had no international affiliation since 1950, when it was expelled
from the Communist-controlled World Federation of Trade Unions.
Workers' councils (at least one for each enterprise) were created in
1950 with the apparent authority
to decide major questions relating to pro
duction and to the distribution of the income of the enterprise.
Each coun
cil (from 15 to 120 members) elects annually a management board of 3 to 11
workers from among its members.
The board collaborates with a Governmentappointed director in the management of the enterprise or establishment. The
Constitution appears to give the workers' council the right to final decision
in the selection of the enterprise director.
Labor-Management Relations
Collective bargaining does not exist in Yugoslavia.
In the social
ized enterprise, the workers' council and the managing board usually resolve
labor-management problems.
Disputes over pay, working conditions, and dis
ciplinary penalties which are not satisfactorily resolved may be appealed to
an arbitration board set up by the local government authority; appeals may
also be made to the public court.
In the private sector, model agreements
called "collective contracts" are worked out by the appropriate trade union
and economic chamber and submitted to local government authorities for ap
proval ; the system of settling grievances is similar to that for the social
ized enterprise. Despite the fact that strikes are in effect prohibited, a
considerable number of brief limited wildcat strikes have occurred, mostly
with a demand for higher wages.

☆ U .S . GOVER N M ENT P R IN T IN G O F F IC E : 19 66 0 - 2 1 3 - 5 0 4

Full text of Labor Digests on Countries in Europe : Bulletin of the United States Bureau of Labor Statistics, No. 1497

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