Self-Management in Yugoslavia

Excerpt from the Basic Law on Management of State Economic Enterprises and Higher Economic Associations by the Workers' Collective


Date: June 26, 1950
Source: pamphlet, pp. 46-55
Published: Belgrade, 1950
Transciption/HTML Markup: Mike B. for MIA, 2006
Public Domain: Marxists Internet Archive (2006). You may freely copy, distribute, display and perform this work; as well as make derivative and commercial works. Please credit “Marxists Internet Archive” as your source.


 

On June 26th, 1950, the Yugoslav Federal Assembly passed the Basic Law on Management of State Economic Enterprises and Higher Economic Associations by the Workers' Collectives.

Fundamental Principles

The factories, mines, communications, transport, trade, agricultural, forestry, municipal and other state economic enterprises, as national property, are to be managed by the workers' collectives, in the name of the community, within the scope of the state economic plan.

The workers' collectives will manage such enterprises through the workers' councils and management boards of the enterprises and the workers' councils and management boards of the higher economic enterprises, amalgamating several economic units.

The workers' councils of the enterprises and of the higher economic associations are to be elected and recalled by the workers' collectives.

In smaller enterprises, the workers' council is made up of the entire working collective.

The workers' council is elected for a period of one year.

The workers' council, and its individual members, may be recalled before their term is up.

The workers' council, as representative of the workers' collective, elects and recalls the management board and has other rights determined by the Law.

The management board of the economic enterprises, or of the higher economic associations, runs the business and is responsible to the workers' council and competent state organ, while the management board of the enterprise is also responsible to the management board of the higher economic association.

The management board operates on the basis of the Law and other legal regulations, the decisions of the workers' council, and directives from the competent state organs, or the management board of the higher economic association.

The management board' is elected for a term of one year.

Only one third of the members of the management board holding office during the previous year may be elected to the new management board.

No one can be a member of the management board more than twice running.

During their term of office on the management boards, the members remain at their regular jobs in the enterprises.

The members of the management board receive no pay for their work on it.

The labor contract of a member of the management board may not be cancelled during his term of office, nor can he be transferred without his consent.

The director of the enterprise, and the director of the association, manage the production and other affairs of the enterprise and the higher economic association respectively.

Until the Law determines otherwise, and for the purpose of securing the correct technical direction of the enterprise and higher economic association, the director of the enterprise will be appointed by the management board of the higher economic association, or competent state organ if the enterprise is not amalgamated, while the director of a higher economic association will be appointed by the competent state organ.

The workers' council or the management board may recommend the removal of the director of an enterprise.

The director is a member of the management board.

The director of an enterprise is responsible to the management board of the enterprise, and the management board and director of the higher economic association, as well as to the competent state body, while the director of a higher economic association is responsible to the management board and the competent state organ.

Workers' Councils of the Enterprises

The workers' council of an enterprise is elected by universal, equal and direct voting, by way of the secret ballot.

All workers who have concluded labor contracts according to the existing regulations, and all technical personnel, engineers and other employees of the enterprise have the right to vote for the workers' councils.

Voting is to be effected by ballot.

Every ballot contains the names of the proposed candidates on the respective list.

Each voter receives as many ballots as there are lists of candidates.

Each voter has the right to cross out the names of the candidates on a proposed list and enter the names of other candidates who are workers or employees of that enterprise having the right to vote.

The voter puts the candidate list for which he will not vote on a specific place in the special quarters set aside for filling out the ballots.

The voter folds the list containing the names of the candidates for whom he is voting and puts it in the ballot box before the electoral council.

Those candidates who receive the greatest number of votes on those lists for which the majority of workers and employees cast their ballots are then considered elected to the post of member of the workers' council.

The workers' council chooses its chairman from its own members.

A member of the management hoard cannot be chairman of the workers' council.

Meetings of the workers' council are convened by, and presided over, the chairman of the council.

Meetings of the workers' councils are to be held at least once in six weeks.

The chairman must convene a meeting of the workers' council at the request of the management board of the enterprise, the trade unions, one third of the members of the workers' council, or the director.

The workers' council has full authority to decide matters if attended by over half the members.

Decisions of the workers' councils are made by the majority of those members present.

Workers' councils of the enterprises:

approve the basic plans and final accounts of the enterprise;

make decisions on the management of the enterprise and fulfillment of the economic plan;

elect, recall and change the management boards of the enterprise or its individual members;

make the rules of the enterprise, with the approval of the management board of the higher economic association, or of the competent state organ;

discuss reports on the work of the management board and make decisions on, and approve of, its work;

discuss the various measures of the management board and make decisions on them;

distribute that part of the accumulation remaining at the disposal of the enterprise, that is, of the working collective.

Management Board of Enterprise

The management board of an enterprise is made up of from 3 to 11 members, including the director in that number.

The number of members in the management board of each enterprise is determined by the rules of the enterprise, depending on its size and' structure.

At least three fourths of the members of the management board must be workers who are engaged directly in production, meaning in the basic economic activity of the enterprise, while the other members of the management board are chosen from the technical personnel, engineers and other employees.

The management board of an enterprise:

draws up the proposals for the basic plan of the enterprise;

draws up the monthly operative plans;

sees that the enterprise is being run correctly;

draws up a plan for the international organization of the enterprise and a proposal for the classification of jobs;

draws up a draft of rules and regulations in the enterprise and takes measures for increasing work discipline;

makes decisions on the appointment of employees to executive positions in the enterprise;

makes decisions on complaints lodged by workers and employees on hiring and firing and the internal distribution of jobs;

undertakes measures for the advancement of the enterprise's production and especially to improve production, increase the productivity of labor, lower the costs of production, improve the quality of products, economize, reduce waste;

decides questions of work norms in the enterprise; decides who is to be proclaimed a shockworker, and makes decisions on proposals made by worker-inventors;

takes measures for the technical advancement of workers and employees and for their correct assignment to jobs;

sees to the correct application of regulations on labor relations in the enterprise, on pay, wages, and the promotion of workers and employees, on work protection and social insurance, and improvement of the living conditions of the workers and employees in the enterprise;

discusses and adopts a plan for annual vacations;

takes measures for the protection and correct utilization of state property managed by the enterprise, and to eliminate, and prevent damage, waste and other forms of unconscientious behavior toward state property.

The management board of an enterprise is responsible for the fulfillment of the plan and the correct running of the enterprise.

The management board chooses a chairman from its members.

The director cannot be the chairman of the management board.

The president of the management board presides over the meetings of the management board and, together with the director, draws up the agenda.

The management board of the enterprise has full authority to make decisions if over half the members are present at a meeting.

The decisions of the management board are made by the majority of those attending a meeting.

The members of the management board, while busy with its affairs, have the right to compensation to the extent of wages lost during that period.

It is the right and duty of the management board to send to the competent state organ its complaints and objections to decisions, directives and rulings made by the management board of a higher economic association which it considers illegal or contrary to the interests of the enterprise, but it cannot put a stop to the fulfillment of same until the competent state organ makes its decision.

A member of the management board not agreeing with one of its a decisions may inform the management board of the higher economic association, or the workers' council of the enterprise of his objections.

A member of the management board may bring out his objections to the work of the director only at meetings of the management board of the workers' council.

Enterprise Director

The director organizes the production process in the enterprise and directly sees to the fulfillment of the plan and the running of the enterprise, adhering to the laws and regulations set up by the management board of the enterprise and directives and orders from the competent state organs, the management board and the director of the higher economic association.

The director is directly responsible for adherence to the laws, legal regulations and directives of the competent state organs and for assuring their application in the enterprise.

The director of the enterprise, within the scope of the economic plan and in accordance with the decisions of the management board of the enterprise, concludes agreements and directs the use of working funds. An agreement is valid when signed by the director.

The director represents the enterprise before the state organs and in legal relations with physical and legal persons. He may authorize another person to represent the enterprise in certain legal matters.

The director of an enterprise hires workers and employees except for those jobs for which provision is made elsewhere, and makes decisions on their job assignment in the enterprise.

The director of the enterprise makes decisions on notice given by workers and employees, insofar as this right is not given to other persons in the enterprise on the basic of general regulations.

Workers and employees have the right of appeal to the management board of the enterprise, whose word is final, on any decision to give them notice or to assign them to other jobs.

Should the director consider that a decision of the management board is contrary to the law, legal provisions, plans or directives of the competent state organs, it is his duty immediately to inform the management board of the higher economic association, or the competent state organ, and temporarily retard the execution of the decision until the management board of the higher economic association, or the competent state organ, makes a final decision. The management board of the higher economic association, or the competent state organ, is bound to make a decision at the latest within ten days.

The director of an enterprise can undertake measures necessary for the fulfillment of the plan and for the correct management of the enterprise, which otherwise fall within the scope of activity of the management board, in case the management board does not make such decisions in time. The director is to inform the management board of the measures undertaken at the following meeting.

 


 

Workers' Council, Management Board and Director of Higher Economic Association

The workers' council of a higher economic association is elected by the workers' collectives of all amalgamated enterprises, in proportion to their numerical composition.

The workers' council of a higher economic association is composed of from 30 to 200 members. The management board of a higher economic association is composed of from 5 to 15 members, including the director.

At least three-fourths of the members of the management board must be workers directly engaged in production, that is, in the basic economic activity of the various enterprises.

The director of a higher economic association is appointed by the Presidium of the Federal Assembly of Yugoslavia, by the presidium of the national assembly of a people's republic, or by the people's committee.

A special law will be passed providing for the method of election, the scope and activity of workers' councils and management boards of the higher economic associations, and the position and authority of the director.


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