INTERNATIONAL LABOUR OFFICE STUDIES AND REPORTS Seríes A (Industrial Relations) No. 31 FREEDOM OF ASSOCIATION V O L U M E IV ITALY, SPAIN, PORTUGAL, GREECE, SERB-CROAT-SLOVENE KINGDOM, BULGARIA, RUMANIA GENEVA 1 928 Published in the United Kingdom For the INTERNATIONAL LABOUR OFFICE (LEAGUE OF NATIONS) By P. S. KING & SON, Ltd. Orchard House, 14 Great Smith Street, Westminster, London, S.W.I PREFACE In the introduction to the first volume of this work — Freedom of Association : Comparative Analysis — attention was called to the manner in which the enquiry arose, the decision of the Governing Body of the International labour Office in pursuance of which it was undertaken, the plans on which it was carried out, and the objects which the International Labour Office had in view. The fourth volume, now published, comprises monograpEs on freedom of association in Italy, Spain, Portugal, Greece, Serb-CroatSlovene Kingdom, Bulgaria, and Rumania. In each of these monographs an effort has been made to study not. only the national legislation relating to trade unions but also the relevant legal decisions and administrative practice and the actual position of trade unions. It should be noted that these studies have, so far as the differ— enees in the legal systems in force permitted, been based on a uniform scheme : the first part traces the history of the trade union movement and trade union law ; the second part is devoted to the present legal status of associations ; the third part deals with the possible forms of action by trade unions in the various departments of social and economic life and the limits of such action. The conclusion deals with the position of trade unions in law and in fact. CONTENTS Page PREFACE v ITALY CHAPTER I : History Union Movement of Trade Union Legislation and the Trade i § i. History of the Trade Union Movement The Workers' Trade Union Movement The Employers' Associations Movement i i 7 § 2. History of the Legislation up to the Fascist Reforms . . . Freedom of Combination and Right to Strike Freedom to Combine for Trade Purposes Legal Limitations to the Action of Trade Associations . . 10 10 13 . 22 § 3. The de facto Position of the Trade Union Movement before the Fascist Reforms . . : 24 CHAPTER II : Present Legal Position of Trade Associations . . . § 1. Constitutional Reform and Preparatory Work for the Reform of Trade Associations The Spirit of Trade Union Legislation Constitutional Reform 33 33 33 35 § 2. Legal Organisation of Collective Relations resulting from Employment Legal Recognition of Trade Associations State Control for Recognised Associations The Single Trade Association with a Monopoly of Occupational Representation Legal Regulation of Collective Contracts of Employment . The Labour Tribunal The Offence of Strikes and Lock-Outs 59 62 70 83 CHAPTER I I I : Organisation of Official Trade Unionism : Its Share in Social, Economic and Political Life . . . . . . . . . . 91 § 1. Organisation of Official Trade Unionism Trade Associations of the Primary Grade . . . . . . . The Higher Grade Trade Associations . . . . . . Corporative Organisation 43 43 51 92 92 99 101 CONTENTS Vili § 2. Part Played by Official Trade Unionism in Social, Economic and Political Life no Part Played by the Trade Associations in Social Life . . . i n Part Played in Economic Life 125 Part Played in Political Life 128 CHAPTER IV : Legal Regulation of AssociaAions of State Employees CHAPTER V : The Legal and de facto Regulation Trade Unions of 131 Independent 136 CONCLUSION 149 BIBLIOGRAPHY , 160 ADDENDA 168 SPAIN CHAPTER I : History Movement of Trade Union Law and the Trade Union 179 § 1. Period previous to 1887 Abolition of the Guilds Prohibition of the Right of Association Principle of the Freedom of Association Evolution of the Trade Union Movement Recognition of the Freedom of Association Purposes 179 179 181 183 185 for Trade 190 § 2. Period after 1887 Growth of the Trade Union Movement . Bills and Acts Supplementing the 1887 Act The Right of Combination and Strike Organisation of Conciliation and Arbitration Recognition of the Legal Personality of Trade Associations The Institution of Official Joint Committees Collaboration of Trade Associations with the Public Authorities CHAPTER II : The Legai Status of Trade Associations 191 191 197 199 201 202 203 206 210 § 1. Constitutional Principle 210 § 2. Conditions of Existence Constitution Activities of Trade Associations Suspension and Dissolution of Trade Associations . . 211 211 214 . 219 § 3. The Conditions of Existence and Possibilities of Action of Trade Associations in the Province of Barcelona . . . 221 Conditions of Existence 223 Possibilities of Action 232 CHAPTER III : National Corporative Organisation of Industry . . 237 § 1. The Spirit and Antecedents of Corporative Organisation . 237 CONTENTS IX Pasc § 2. The Constitution of the National Corporative Organisation . Scope Structure and Composition The Powers of the Joint Organisations The Working of the Corporative System Suspension and Dissolution of Joint Committees and Mixed Commissions 242 242 245 254 257 262 § 3. The Application and Influence of the Corporative System 263 First Measures for the Practical Application of the Legislative Decree 263 Influence of the Corporative System 265 CONCLUSION 267 BIBLIOGRAPHY 277 PORTUGAL CHAPTER I : History of the Trade Union Movement and of Trade Union Legislation 285 § 1. The Trade Union Movement 285 § 2. Trade Union Legislation The Right of Combination and Strike Freedom of Association CHAPTER II : The Present Legal Status of Trade Associations . . 288 288 289 . 292 § 1. Constitution of Trade Associations Basic Conditions Formalities 292 293 294 § 2. Activity and Dissolution 295 CHAPTER III : Possibilities and Limits of Trade Union Action . . 298 § 1. Trade Union Institutions Independent Institutions Co-operation with the Public Authorities 298 298 299 § 2. Functions under Civil and Industrial Law . . . : . . . Civil Law Industrial Law 299 299 299 CONCLUSION 302 BIBLIOGRAPHY 304 GREECE § 1. Development and Present Position of Trade Associations . 305 § 2. Freedom to Combine for Trade Purposes 307 X CONTENTS Page The Individual Right to Combine The Law on Trade Associations 307 309 BIBLIOGRAPHY 315 SERB-CROAT-SLOVENE KINGDOM INTRODUCTION 317 § 1. Development of Trade Associations and the Law on Such Associations 318 Development and Present Position of Trade Associations 318 History of the Law on Trade Associations 320 § 2. Conditions of Formation and Existence of Trade Associations 322 General Laws 322 Special Laws 326 § 3. Activities of Trade Associations The Relations between Trade Associations and State Social Institutions Trade Corporations, " Esnaf ", etc. . . . " Trade Councils Determination and Enforcement of Conditions of Work . . Militant Action (Strikes and Lock-Outs) 330 330 331 332 334 335 CONCLUSION 338 BIBLIOGRAPHY 340 BULGARIA CHAPTER I : History Movement and Present Position of the Trade Union . 341 § 1. The Workers' Trade Union Movement • 342 § 2. The Employers' Movement CHAPTER II : Conditions of Existence 345 of Trade Associations . § 1. Legal Status The Constitutional Principle The Act on Combinations of Officials (1907) State Employees' Act (28 January 1922) The Schools and Societies Act (3 July 1922) Acts for the Defence of the State . . 347 . . 347 347 348 349 350 351 § 2. The System in Practice CHAPTER III : Possibilities and Limits 352 of Trade Union Action . § 1. Collaboration of Trade Associations with the State Social Affairs . 357 in 357 CONTENTS XI Page § 2. Legal Limitations on the Activities of Trade Associations (Collective Disputes) 359 Limitations under Penal Law 359 Limitations under Administrative Law 360 Limitations under Civil Law 360 CONCLUSION 362 BIBLIOGRAPHY 364 RUMANIA CHAPTEK I : History of the Guilds and the Trade Union Movement 365 § 1. History of the Guilds 365 § 2. History of the Trade Union Movement The Labour Movement . • The Employers' Movement 369 369 374 CHAPTEP. H : The Present Legal Status of Trade Associations . . 376 § 1. Trade Associations under the General Law 377 § 2. The Status of Recognised Associations Constitution and Working of Associations Dissolution of Trade Associations — Penalties 378 378 385 CHAPTER H I : The Possibilities and Limits of Trade Union Action 389 § 1. Trade Union Institutions and Co-operation with the State 389 Institutions .' : . . 389 Co-operation with the State . 390 ,§ 2. Civil Capacity and Influence of Trade Associations on the Contract of Employment 393 Effects of Legal Personality 393 Conclusion and Enforcement of Contracts of Employment 394 CONCLUSION 402 BIBLIOGRAPHY 404 ITALY CHAPTER I HISTORY OF TRADE UNION LEGISLATION THE TRADE UNION MOVEMENT AND The history of trade union legislation and the trade union movement in Italy is of interest to-day merely for the sake of comparison with the present situation. It is well indeed to bear in mind from the outset that the trade union system at present in force in Italy does not hold to the principles which can be deduced by historical analysis, but takes its inspiration from a special conception of social relationships which is in some respects radically opposed to the practice of trade union law in iiiost other countries. Subject to these observations, the first part of the present study will deal in the first place with the growth of trade unionism among both employers and employed, and secondly with the phases of the development of trade union law. Finally, an outline will be given of the events which have paved the way for the present reforms. § 1. — History of the Trade Union Movement T H E W O R K E R S ' T R A D E UNION MOVEMENT At the moment when the Kingdom of Italy was united in i860, the social movement was still in its infancy both as regards trade union forms and political activity. Nevertheless, the miserable conditions of life of the lower classes, especially in the country, aroused here and there trouble and risings which were promptly quelled by the Government. Strikes began to appear (statistics show but a few dozen each year), and the spirit of association among workers assumed its first rudimentary form. Freedom of Association i 2 FREEDOM OF ASSOCIATION Following the example of an association formed in 1848 among the printers of Turin, the Society for Resisting the Reduction of Wages, there arose leagues for resistance and leagues for obtaining improved conditions. These came to the assistance of the strikers, supervised apprenticeship, etc, The year 1874 saw the beginning of annual congresses of workers. At the same time mutual-aid societies among the workers of the same trade spread, exercising the double function of mutual help and resistance. In the country co-operative societies sprang up and multiplied. Then, inspired by the first workman to be elected to the Italian Parliament, Mr. Maffi, there were founded workmen's " Consulates " (1880-1890) whose task it was to co-ordinate the forces of the workers and of the members of the mutual-aid societies. But it is from 1890 particularly that the trade union movement, strictly speaking, becomes clearly marked. From 1891 one may date the dawning prosperity of the " Chambers of Labour ", whose mission it was to co-ordinate on a common basis of resistance all the forces of the workers in a given centre. Finally, in 1893, there was formed in Parma the first Federation of Chambers of Labour. Parallel with this went the first appearance of the social movement in a political form. In 1880 was formed at Bologna a Labour Party, which later became the Italian Labour Party. In 1892 the Italian Socialist Party was founded (Congress of Genoa). The social movement, which at first was confused with tendencies towards conspiracy and insurrection, grew clearer as the doctrines of Marx gained the upper hand and became, in 1892, finally supreme. With the opening of the new century the working class movement and the trade union organisation took their places as important factors in the national life. Chambers of labour, workers' and agrarian leagues, provincial, regional and national confederations sprang up in great numbers throughout Italy. Strikes became more frequent in industry and in agriculture. Up to 1900 statistics record only a few rare examples each year ; in 1901 and in 1902 there were nearly four thousand with four million days lost. A considerable number of these were successful. It is calculated that in one year the workers raised the total of their wages by about 150 million lire. Meanwhile, the trade union movement — which was on the way to organisation on a national scale and had assumed autonomous forms — was subject to political influence and followed different lines. Henceforth its characteristic features can be linked up with the ITALY 3 political views of t h e great body of the trade unionists and of the leaders who represented t h e m . I t will be well, therefore, with a view t o clearness, to follow successively the two main currents : t h a t which borders most closely on Socialism (including the syndicalist sections) and t h e Christian-Social movement. I t should be recalled that already in the course of the ten years 1890-1900 the Italian Federation of Chambers of Labour had been established. T h a t is to say, a federation of organisations for propag a t i n g in urban centres the policy of organising the proletariat in harmony with national organisations. T h e Federation was dissolved in 1898, b u t reconstituted when political reaction declined. I n 1902 the Federation of Chambers of Labour, in common w i t h a certain number of national federations of particular trades, set u p a general secretariat for chambers of labour and for purposes of resistance. I t h a d its seat in Milan and the director was Mr. Cabrini. I t acted as a co-ordinating bod}' linking t h e chambers of labour with the federations (whose functions were not yet precisely defined) and was destined, moreover, to give an impulse to social legislation. However, t h e growing resistance of t h e employing class, which was beginning to organise, and the discord between reformists, revolutionaries and syndicalists caused, about 1905, a w e a k e n i n g of the trade union movement. T h e trade union leaders, strengthened by the experience t h e y had gained, turned their attention t h e n chiefly towards t h e improvement of their technical organisation. I n 1906 the General Confederation of Labour was founded b y the vote of a congress representative of 200,000 organised workers. T h i s Confederation had its seat at first in T u r i n , then a t Milan. T h e secretary was Mr. Rigola. T h e majority of the Confederation pronounced in favour of parliamentary action calculated t o carry t h r o u g h social reforms in association with t h e democratic parties, b u t proclaimed its own independence of all political parties, including the Socialist Party. T h e programme of the Confederation defined its principal aims as follows : (a) To ensure the general direction of the industrial and agricultural proletarian movement by co-ordinating and disciplining the action of the trade federations and chambers of labour. The proper functions of the federations consist in supporting and directing the movement of resistance made by their members after first consulting the chambers of labour. The functions of the chambers of labour are the protection and organisation of the local interests of the working classes ; ° (b) To create chambers of labour in places where they do not exist, taking care, however, that there shall be no excessive multiplica- FREEDOM OF ASSOCIATION 4 tion of small centres and that all such bodies shall have a regional or provincial character and, in the second place, to create and develop national federations of industrial workers taking care to discourage particularist tendencies in any groups and to encourage the union of all social groups in one and the same federation ; (c) To support, regulate and co-ordinate the legislative suggestions put forward by the affiliated organisations, and to lay any suitable proposals before the representatives of the proletariat in advisory bodies ; (d) To give the masses of the proletariat the capacity necessary for prosecuting their claims directly and with the aid of their representative bodies ; . . . (/) To adhere to the Trade Union International, of which it shall constitute the Italian section ; . . . (z) To organise the proletariat movement in the matter of resistance in such a manner that group conflicts shall every day more and more give place to united struggles directed to raising the standard of living of the working class as a whole, and making it clear to the said class that every improvement won in the matter of wages by means of partial or group struggles is doomed to be of no avail in the long run unless the whole working class resolves to fight with more unity and in closer ranks against the existing political and economic power for the radical transformation of the system of ownership. T h e progress made by the General Confederation of Labour can be clearly seen from the following figures, which represent the number of organised workers regularly paying their contributions : Years . 1907 1908 1909 191° 191I *9 T 2 Ì^Ò I9Ï4 . • • • . • . • • . . . . . . Membership Years Membership 190,422 262,006 307,925 356,420 383,770 3 0 9,87i 327,802 320,858 1915 1916 ICI? I918 I919 1920 I92I 1924 233,963 201,291 337,560 249,039 I,I59,?43 2,150,000 2,200,000 269,800 Mention should be made, side by side with the General Confederation of Labour, of certain other organisations associated with revolutionary syndicalism. As early as 1906, w h e n the General Confederation of Labour came into existence, revolutionary syndicalists, republicans and anarchists had sought to set u p a National Resistance Committee (Parma, 1907), b u t the attempt failed. Under the influence of the ideas of Sorel, which had penetrated to Italy and found important adherents in t h e persons of Labriola, Leone, and others, there was founded the Syndicalist Association (Unione Sindacale Italiana) which declared itself independent of every political party and adopted the general strike, not as a measure of political defence, but as an active method capable of endowing ITALY 3 the proletariat with a power of effective action a n d leading it to the conquest of the State. T h e Association succeeded in gathering more than ioo.ooo adherents. T h e Christian T r a d e Union Organisation received its impulse from t h e Encyclical Rerum Novaruvi promulgated by Leo X I I I in 1891, and was taken under the patronage of the I n s t i t u t e of Congresses, which was the social b r a n c h of the Catholic movement. T h e n began t h e g r o w t h of Christian associations of industrial and agricultural workers which preferably chose the name of Labour Leagues. T h e essential features of the organisation were defined in 1903 at t h e congress of Bologna : the t r a d e associations, while seeking to bring together the two elements, worker and employer, must be composed exclusively of workers. T h e y must be denominational, both in spirit and as regards their directors, b u t they were authorised to leave their character unexpressed in the titles which they adopted. Finally, it was admitted that it was desirable to agitate for the legal recognition of trade unions. At this period there were 400,000 organised Catholics. Since then t h e r e h a s been a falling off which continued u p to 1911, when the economic institutions regrouped themselves to form the Social Economic Union of Italian Catholics. T h i s latter body created a general secretariat for trade organisation. I n the same year there were 374 Christian t r a d e associations with 101,164 members. T h e Catholic movement spread from 1911 to 1914, fell off during the war period, and revived vigorously after peace was restored. I n 1918, the Italian Confederation of W o r k e r s was formed with ten affiliated national trade unions and twenty-five labour offices in different Italian towns. T h i s Confederation included local organisations (professional leagues, trade associations, labour unions) and national federations or national trade unions, t h e most important of w h i c h were the Italian T e n a n t F a r m e r s ' Federation, the Italian. T e x t i l e Federation, etc. I n 1921, the Christian organisation numbered 992,390 organised m e m b e r s ; in 1922 597.503 members enrolled in the national federations a n d 581,174 in the local unions. T h e principles which inspire this movement may be stated t h u s : (a) Christian inspiration which it seeks to apply to society and to class relationships ; (6) Rejection of the idea of revolution and determination to achieve social reform not by violence but by constitutional means ; 6 FREEDOM OF ASSOCIATION (c) A general tendency towards class co-operation rather than class warfare, but organised co-operation between organised classes (" integral " 1 corporations) ; (d) As ultimate aim not collectivism but the development and spread of autonomous forms of private ownership and production ; (e) Independence of political parties ; that is to say, while dui}' recognising its affinities with the Italian Catholic People's Party, it considered itself autonomous and independent in the technical and trade union sphere. T h e Italian Confederation of Workers also suffered from internal struggles. A n e x t r e m e Left appeared which, in 1920, b r o u g h t about a schism and created the Christian T r a d e Union Confederation, but this body did not live. T h e participation of Italy in the war of 1914-191S was preceded by a long period of uncertainty and violent dissensions which had their effects on the trade union movement. A n important section of the Italian Syndicalist Association favourable to intervention founded the Italian Association of Labour (Unione Italiana del Lavoro), which drew to its ranks t h e Republican and Socialist workers who were in favour of war. I n 1921 it had 200,000 members. T h e programme of the Italian Association of Labour proclaimed t h a t it held absolutely aloof from all political objects and was committed t o the struggle against capitalism and the wage system. I t announced as its ultimate aim : " to hand over to the organised working class the production, distribution and exchange of wealth ". B u t , in addition to its economic conquests, it announced " the raising of the proletariat to the dignity and capacity which would enable it to solve all the problems of production and social justice ". T h e picture of the trade union organisations would not, however, be complete without some reference to the relations between the trade unions, the co-operative societies, the mutual-aid societies, and other provident societies in general. Just as trade union action originated from t h e mutual-aid movement, so the trade unions endeavoured to increase their power of action and strengthen the bonds of social solidarity by means of co-operative and mutual-aid organisations. Stimulated by trade unions, the co-operative movem e n t had attained a very high degree of prosperity. I t is impossible to give here even a brief outline of the movement. Mention m a y be made, however, of one fact which illustrates its importance to the 1 i.e. including employers and workers. ITALY 7 full : in certain parts of Italy, particularly in the N o r t h a n d centre, the co-operative system in its different forms (credit, producing and consumers' societies) had succeeded, especially in agriculture, in t a k i n g the place to some extent of t h e individual system of cultivation \ A m o n g the most notable social provident institutions attached to the General Confederation of Labour m a y be mentioned the National Co-operative L e a g u e and the Italian Federation of MutualAid Societies and Provident F u n d s . Along with t h i s organisation of a national character, mention should be m a d e of the offices for consultation, protection, medical and legal advice, as well as the numerous working m e n ' s clubs for recreation and vocational education which are in existence in most provincial towns. T h e Christian T r a d e Union Confederation also supplemented the resistance movement b y the creation of co-operative societies federated in the Italian Co-operative Confederation, mutual-aid societies, and protective institutions. Parallel with the Labour movement, but a little later, came the development of the employers' associations movement. THE E M P L O Y E R S ' ASSOCIATIONS MOVEMENT T h e employers' movement appeared u n d e r a double form. On the one h a n d , as an economic organisation aiming at defending the interests of its class w i t h references to G o v e r n m e n t legislative measures (taxation, customs regulation, etc.) and, on t h e other hand, as an organ of defence against the workers' trade union movement. I t is proposed to give a brief account of the vicissitudes of this movement, considering in t u r n the most important groups of interests, agriculture, commerce, and industry. T h e employers' associations movement in agriculture had its birth in the P o Valley, and its expansion and activity w a s centred 1 It should moreover be remembered that the co-operative movement, which, from G. Mazzini to L. Luzzatti, had always found enthusiastic supporters outside the Socialist Party, developed until quite recent times in complete independence of the trade unions, whether Socialist or Catholic. Cf. Mr. RUINI : " The Co-operative Movement in Italy ", in The International Labour Review, Vol. V, No. i, Jan. 1922, pp. 13 et seq.Cf. also CARLO COSTAMAGNA : Il Diritto Corporativo Italiano, pp. 146 et seq. 8 FREEDOM OF ASSOCIATION in Bologna. I t was with t h e beginning of t h e new c e n t u r y t h a t it grew in s t r e n g t h a n d e x t e n t . Originating as a local movement, it developed gradually into a vaster organisation, provincial, interprovincial, and national. T h e earliest manifestations of an effort towards national unification of the agricultural employers' associations, and the first attempts at organising it, date back to i g i i . But it was only in 1920 t h a t a strong national organism came into being, the General Confederation of Agriculture, h a v i n g its seat at Rome with M r . A . Domini as secretary. Constituted on 18 April 1920, a t the m o m e n t w h e n t h e struggle of the workers' associations was at its height, t h e Confederation did not content itself with an uncompromising defence of class interests. On the occasion of a serious rural agitation (occupation of lands in the Sorresina), during which the workers' organisations had demanded a share in the management of agricultural undertakings, the Confederation laid down the fundamental principle of its action thus : Complete willingness to conclude an agreement which would make it possible for the workers to rise to a higher level, both economically and morally, under the express condition that the agreement itself should remain strictly within the legal bounds of a co-partnership association, keeping intact the idea of individual ownership and the independence of the functions of management. I n accordance with this fundamental principle, t h e Confederation, at its first congress, defined its guiding rules in the following terms : That all the affiliated associations should support and extend the system of métayage, as being the most effective instrument for creating a stable social basis for agricultural progress and for the economic and moral improvement of the workers themselves, and that, while observing in the drafting of the economic clauses of such contracts a liberal and modern spirit, they should defend the necessity for safeguarding the technical direction of the owner against the efforts of any who may seek, whether by the limitation of this power or by insisting on the substitution of farming leases for contracts of métayage, to withdraw the administration of rural undertakings from the hands of those technical experts who have done good service to the cause of agricultural progress and production. . . . That the principle of co-partnership should be extended even to the class of occasional workers and to that of workers with fixed wages. T h e Confederation succeeded in building u p a strong organisation in t h e country. I t embraced roughly five h u n d r e d bodies and associations, which form numerous regional federations (Lombardy, ITALY 9 Piedmont, Upper Venetia, The Marches, Emilia, Tuscany, Umbria, the south of the mainland, Sicily, and Sardinia). The numerical strength of the organisation was estimated at a total of 700,000 members. Quite contrary to the agrarian organisation, the commercial organisation of the employing class preserved a predominantly local and economic character, owing to the fact that the most important interests which it has to consider concern local life. Nevertheless, in order to offer some resistance to the national movement of employees and clerks, it formed itself into a General Confederation of Commerce. The employers' movement in industry, on the other hand, proved much stronger and more efficient. The earliest organisations arose in the district of Biella, at Massa, and at Turin as a counterpoise to the workers' movement. The attempts at national unification began in 1910; soon afterwards the Association of Joint Stock Companies sprang up, and, finally, in 1920, the General Confederation of Italian Industry was created, embracing all great industrial undertakings and three-quarters of the medium and small undertakings. Mr. Olivetti was its secretary. It is a highly organised institution which, closely united to the Association of Joint Stock Companies, exercised a powerful influence on the whole of the national life. The General Confederation of Industry, before its recent reorganisation, comprised some one hundred bodies divided among federal organisations (of which twenty-five were national) and local organisations and was made up of two sections : (a) The Economic Section, which protected all kinds of industrial interests and set up as its aim the defence of those interests by means of direct co-operation in the drafting of laws and also by supporting the interests of its members against the State ; (b) The Trade Union Section, which studied and solved problems connected with the relationships between industrialists and the staff dependent on them, and also problems connected with social legislation. The growing vigour of trade unionism was bound to mould the legal system in accordance with its requirements. It is proposed in the next section to give a brief outline of the history and inspira- FREEDOM OF ASSOCIATION IO tions of the trade union law in force before the Fascist Government came into power. § 2. — History of the Legislation up to the Fascist Reforms FREEDOM OF COMBINATION AND R I G H T TO STRIKE Period of Relative Prohibition At the time of-the unification of the Kingdom of Italy (i860) there were left in force, out of the different existing Penal Codes, those of Tuscany and of the Kingdom of Sardinia, which were extended to all the countries whose Codes had been abolished. The Sardinian Code of 1859 (sections 385-386), modelled on the French Code of 1810 \ punished, on the one hand, " every agreement between employers with a view to unjustly compelling workers to accept a reduction of wages ", and, on the other hand, " every agreement between workers with a view to suspending, hindering or raising the price of work without reasonable motive ". In both cases it was necessary that the concerted agreement should have begun to have been put into execution. The spirit of the Tuscan Code, on the contrary (sections 201-203), was quite different. Following the French Act of 1864, it punished violence accompanying a strike, but not the act of ceasing work or even the employment of fraudulent means for inducing workers to strike. Now, it was this liberal conception which triumphed in legal theory, if not always in judicial practice, and which was to be definitively established in the new Italian Penal Code. v But the preparation of the new Code progressed slowly, while, in certain regions, the strike movement gained in extent and intensity. The governing class and the Government became anxious ; it was then that Crispi, in 1878, took the initiative and appointed a Royal Commission to enquire into strikes. This Commission after having made fully plain the severity of the struggles, formulated its conclusions thus : Being convinced that no single expedient whatsoever could be proposed which would be effective in restoring the former concord between capital and labour, the Commission has put in the forefront of 1 See Vol. II of this work, " France ", Chapter i, § 1, " History prior to 1884 "• ITALY II the measures it suggests an Act which will recognise without anv restriction the right of workers and employers to combine- for the defence of their respective interests, and which will protect this right .against such violence and fraud as would deprive these combinations of their character of spontaneous voluntary associations and transform them into instruments of violent compulsion for the profit of men seeking personal gain or into instruments of disorder in the hands of turbulent and ambitious men. T h e Depretis Ministry adopted these proposals and laid before the Chamber of Deputies in 1883 a Bill recognising the freedom of combination among employers and workers, while punishing all violence, threats, or frauds. T h e Parliamentary Commission which was appointed to examine the Bill introduced some a m e n d m e n t s , and h a n d e d in a report drawn up by Di San Giuliano. T h e latter discussed the question first of all from the point of view of justice : The prohibition of combinations and strikes, he said, was less unjust at a period when wages and the prices of the essentials of existence were officially fixed. But to-day freedom of contract would lead purely and simply to acknowledging the right of capital to starve labour, if the latter were refused the freedom of combination. It is useless to maintain that combinations of employers, in opposition to combinations of workers, are equally prohibited, seeing that every employer in the negotiations for the settlement of the contract of employment is a combination in himself, in view of the irresistible power of the natural law of supply and demand. H a v i n g laid clown these principles, Di San Giuliano proved that the long history of laws forbidding combinations showed irrefutably that such laws had had no effect except to excite u n d u l y the spirit of the workers. H e boldly faced the capital objection based on the abuses a n d excesses of the workers, but h e noted that " freedom of combination, while subjecting the working classes to the sometimes rough, but always valuable lessons of experience, has nevertheless had satisfactory results ", whereas there are very few examples of industries ruined by strikes. Finally, he replied to the legal objection which alleged that freedom of combination constituted a constraint exercised upon the liberty of others by an appeal to the ancient maxim of R o m a n wisdom : Qui suo jure utitur neminem laedit. T h e Bill was fully discussed by the Chamber, but rejected in the secret ballot by 121 votes to 117. I t was not therefore until the new Penal Code of 1890 that Italian legislation recognised freedom of combination and the right to strike, subject to the penalties inflicted for the'use of threats and of violence. 12 FREEDOM OF ASSOCIATION Offences against the Freedom of Work T h e P e n a l Code punishes by Chapter 6, T i t l e I I I , offences against the freedom of work. I t organises, by means of t h e following provisions, w h a t is k n o w n as the legal guarantee of this liberty : Section 165 punishes " whosoever, by violence or by threats, restricts or hinders in any m a n n e r whatsoever the freedom of industry or trade ". Section 166 punishes " whosoever, by violence or by threats, provokes or prolongs a cessation or suspension of work, vvith i n t e n t to impose either on any workers or on a n y employers or on the owners of any industrial undertakings a reduction or increase of wages or a n y contracts other than those which have previously been agreed upon ". Section 167 provides a more severe punishment for the leaders or instigators. T h e Ministerial report annexed to the Penal Code declares that this Code " recognises the freedom of combination and t h e right to strike . . . and presupposes the legality of every combination of workers or employers, and refrains from considering the cause which has b r o u g h t it about ". T h e sections are therefore " intended to recognise and sanction the freedom of work ". T h e essential feature common to the two categories of offences is the use of violence or threats. I t is not necessary t h a t there should be either concerted action or direct interest in the act ; violence may be exercised against persons or against things and m u s t be direct. I t is a debatable point whether it must of necessity be physical or whether it m a y also be moral ; whether it may, for instance, take the form of intimidation by numbers. On this point there are conflicting theories and judicial practice is not uniform. T h r e a t s are defined by the Penal Code (section 156); thev must imply severe and unjust injury ; they are aggravated threats if effected by means of weapons, or by a person in disguise, or b y several persons banded together, or by anonymous letters, or in symbolical form, or if they make use of the intimidatory power of real or imaginary secret societies '. 1 Sections 165-167 remain in force to-day and are combined with sections 18-22 of the Act of 3 April 1926 on the legal regulation of collective relations arising from employment. As regards the interpreta- 13 ITALY F R E E D O M TO COMBINE FOR T R A D E P U R P O S E S Period of Restrictive Interpretation of the Right Association, 1848-içoo of T h e Charter of the K i n g d o m of Italy, the Albertinian Constitution of 1848, guarantees, individual liberty (Article 26), the inviolability of the domicile (Article 27), the freedom of the press (Article 28), and recognises the right of peaceful assembly w i t h o u t a r m s (Article 32) x . T h e r e is no express mention made of the right of association. T h e Constitution reproduces in almost identical terms Article 19 of the Belgian Constitution of 7 F e b r u a r y 1831, so far as the right of assembly is concerned, but not Article 20, which expressly recognises the right of association 2 . W a s this omission intentional ? I t seems doubtful in view of the liberal spirit of t h e whole constitution. Be t h a t as it m a y , ithe doubt w a s not long i n being dispelled by legislation, namely by the Decree of 6 September 1848, delivered with full authority and, as the preamble puts it, with intent " t o do away w i t h such provisions as have ceased to be in harmony with present-day policy ". T h i s Decree revoked sections 483-486 of the Sardinian Penal Code, which forbade every religious, literary, and political association formed without the permission of the competent authorities. All the authorities on public law and the politicians were unanimous in concluding that Italian public law recognised implicitly and clearly the principle of t h e right of association considered as one of the branches of individual liberty, but not applicable — at first a t least — in t h e sphere of labour r e l a t i o n s 3 . tion by the courts of the means of pressure employed by trade unions, such as mobs, picketing, boycotting, progressive strike, sabotage, trade union fines, etc., which are forbidden to-day, see various authors, particularly : FLORIAN, Delitti contro la libertà di Lavoro, Milan, 1913 ; LASCHI, Delitti contro la libertà di Lavoro ; MANZINI, Diritto penale, Turin, 1913. 1 Article 32 is drawn up as follows : " The right to assemble peacefully and without arms in conformity with the laws which control the exercise of this right in the public interest is hereby recognised. This provision does not apply to meetings in public places or open to the public, which meetings remain entirely subject to the police regulations ". 2 See Vol. II of this work : " Belgium ", Chapter I, § 1, " Legislative History ". 3 Cf. CARLO COSTAMAGNA, op. cit., section I, pp. 2-5. 14 FREEDOM OF ASSOCIATION Several attempts had been made to regulate the right of association by legislative measures, but without success until the most recent times. In 1852 the Sardinian Government had submitted to the Council of State a Bill concerning associations, but the supreme assembly had replied that it did not consider it opportune to restrict a right which had always been exercised without doing the slightest injury to the public weal. Some years later the Government, under the leadership of Rattazzi, presented, on 3 June 1S62, a Bill concerning associations, consisting of three clauses. It provided punishments for the acts and deeds of every association whatsoever which should tend to encourage the enrolment of men and the acquisition of arms and munitions without the consent of the Government, or to spread doctrines contrary to the Constitution and tending to compromise the safety of the State ; it gave the Government power to dissolve such associations by Royal Decree ; it brought within the law the acts or deeds which had given occasion for this dissolution; it punished the members who, despite the dissolution, assembled again during the course of the trial or after sentence had been passed. But the Bill was badly received. The Commission of the Chamber criticised it. It added that to punish the diffusion of principles contrary to the Constitution would be to attack at the same time every discussion, even if purely theoretical, and would mean placing an insurmountable barrier in the way of the peaceful development of ideas and opinions, which is an essential condition of progress in a political State ; moreover the life or death of every association would be left at the mercy of the Government. A counter-proposal was drawn up, with the character of a penal law, authorising the suspension of an association in the event of crimes or offences being committed for which the responsibility devolved on decisions taken by the association or its representatives. It granted at the same time to the Court of Assizes, in the event of a conviction, the power to order the dissolution of the association, while in the event of an acquittal the suspension ceased by right. The counter-proposal, however, was not favourably received either and was not passed. Nevertheless, the Council of State, when consulted by the Government, recognised that " the Government may take advantage of its right to preserve economic peace, and is even entitled to order l 5 ITALY the dissolution of a society w h e n it imperils this peace, a conception which follows from t h e unlimited powers of t h e Cabinet T h e action of t h e Government, save for some rare liberal interludes, w a s inspired by this restrictive theory of freedom of association all through t h e second half of t h e nineteenth century. Period of Liberal for Interpretation Trade Purposes, of the Right to Combine IQOO-IÇ2I I t is only after t h e rejection of t h e exceptional measures laid before t h e Chamber of Deputies by Pelloux, on 4 F e b r u a r y 1899, that t h e liberal interpretation of t h e principle of freedom of association begins to t r i u m p h . T h e s e measures of the Pelloux Ministry were intended t o r e g u l a t e and restrict freedom of assembly a n d of association, to prohibit strikes in t h e public services, a n d restrict t h e freedom of t h e press. Chapter I I bis of t h e Bill, entitled " Additions and A m e n d m e n t s to the Act on Public Safety a n d on t h e Press ", contained t h e following sections : 1. Besides the cases provided for in the Penal Code, all associations are forbidden which aim at overthrowing by force the social structure and the Constitution of the State. 2. The police officials, at the request of the judicial authorities, shall proceed to dissolve associations of the kind described in the preceding clause, by closing their meeting places, seizing their documents, books and badges, and handing over to the judicial authorities all articles confiscated. 3. The associations dissolved in terms of the above section shall not re-form, even under another name. 4. The funds of the dissolved associations shall be taken over by the Public Prosecutor and paid into the Government office for the deposit of trust funds under litigation (Caisse des dépôts et consignations) in the name of the dissolved association. After the passing of sentence, or if for any reason whatsoever the case be not settled within a reasonable time, the judicial authorities shall, on instructions being given by the Chamber of Council, hand over t h e funds of the dissolved associations to the provident fund laid down by the Statute, or, in default of definite provisions, dispose of it to charitable societies. 5. Every breach of sections 1 to 3 shall be punished — provided the action committed does not constitute a graver crime — by a fine not exceeding 500 lire or by imprisonment up to three months. 1 Applying this principle, the Government proceeded to dissolve t h e following associations: .500 emancipation societies (1862), the internationalist associations (1871), the republican associations (1874), and, for a second time, the internationalist associations (1876). 16 FREEDOM OF ASSOCIATION The Ministerial report which introduced the Bill justified these measures as follows : The Government has considered that it was less opportune than ever to adopt this principle (that of abandoning preventive authorisation) to-day, when the necessity for legal regulation of freedom of association has made itself manifest, seeing that, in default of provisions governing exactly the dissolving of illegal associations, this freedom of association tends to be abused and is subject to arbitrary interpretation. It is for this reason that it is proposed to add to the Act on Public Safety provisions based on the principle of repressive limitation, because preventive authorisation constitutes, not a limitation, but a negation of liberty, and because the preventive prohibitions which would come to be decreed could easily be evaded and would be the unhappy cause of a host of punishable contraventions which, far from serving to maintain public order, would tend to disturb it by leading to continual demands and protests against the actions of the public authorities. The proposals aroused strong opposition. The Socialist and Radical Extreme I^eft organised systematic obstruction. The Democrats, led by Giolitti and Zanardelli, were equally hostile to the Bill. In order to overcome this resistance, Pelloux had recourse to an Edict for promulgating these measures. But the Edict was declared unconstitutional by the Court of Accounts, and the Court of Cassation entirely denied its legal validity. The Government, powerless to overcome the opposition, appealed to the country. But the results were such that it was forced to resign soon afterwards ; in the same way, the Sarocco Ministry was overthrown by the Chamber a year later, after having dissolved the Genoa Chamber of L,abour. From that time the liberal point of view had finally gained the day. Constitution of Trade Associations The principle of the freedom of trade association being thus definitely established, what was its practical value and what were its limitations ? Indeed, it does not seem possible that an uncodified abstract general principle should be sufficient in itself to regulate such complex social phenomena as the right to combine for trade purposes. It will be well, therefore, to review briefly the general and particular principles, mostly in ordinary law, which controlled the trade union movement until quite recently and the practice of the courts with regard to it. In the absence of any legislative provision, and seeing that in general the trade associations did not seek to adopt the types of society recognised by the law, they were purely de facto associations. They were constituted on a basis of personal member- 17 ITALY ship ; their working was regulated by the same constitution as controlled their voluntary dissolution ; the agreement by which the society was constituted counted as a contract in terms of general law, and was drawn up in writing. Personal membership could be notified either individually or collectively ; it had to be voluntary. _ Membership of the trade association implied acceptance of obligation and a limitation of liberty which was lawful in so far as it was voluntary, since the law admits voluntary limitation of liberty. Consent was not valid if given in error, extorted by violence, or obtained by trickery (section 1108 of the Civil Code). There were no general limitations in existence restricting freedom of association. Membership of trade associations was open to all individuals without distinction of sex, age, nationality, or occupation. There was no legal prohibition, no limitation by custom. Foreigners permitted the exercise of civil rights were free to form associations. It was generally conceded that the freedom of trade association, which consisted essentially in the right to combine for the defence of some interest or other, was not subject to any limitation based on the assumption of degree of capacity for membership depending on age, sex, or inferior occupational status (apprentices). As regards officials, there was no prohibition of any kind, and in fact trade unions of magistrates and police officials have been known. The sole exception made was for citizens who formed part of the armed forces of the State, who were forbidden by their regulations from combining. The constitution of trade associations was not subject to the carrying out of any special formalities whether at their foundation or later, whether normal or exceptional. The association was considered constituted from the moment when it had gathered a considerable number of members and possessed rules. The registration of associations was permitted for definite limited purposes. In the course of recent years it had been found necessary to call upon the trade associations to appoint representatives, not only to certain Government consultive bodies — Labour Committee, Provident and Social Insurance Committee, etc. — but also to the directorate of more important provident institutions — National Provident Fund, National Accident Fund, etc. But in virtue of the Royal Decree of 29 October 1922, No. 1,529, it was ordained that the nomination of vocational representatives to public committees and advisory committees should be regulated on Freedom of Association 2 i8 FREEDOM OF ASSOCIATION a proportional basis, the right to take part in the elections being reserved exclusively to registered associations. T h e formalities and guarantees of registration were laid down by t h e same Decree, which looked forward to the setting u p at the Ministry of a register for national associations a n d at the labour inspectorates of registers for the regional, provincial a n d local associations. Applications for registration had to be accompanied by documents proving that the constitution was regular and showing the form of the association. T h e constitution was to include everything essential that was customary for the proper w o r k i n g of the organisation. Registration as well as the suppression of registration or suspension was decided b y commissions appointed for t h a t purpose, on which employers and workers were to be represented. T h e effects of registration were explained in section 14 as follows : Associations of workers or employees registered in terms of the present Decree shall be called upon to elect or appoint, on a basis of proportional representation according to the number of their members and in accordance with the rules hereinafter laid down and those which will be drawn up by an administrative order, representatives of workers or of employees to the public committees and the bodies to which the said representatives are admitted. The same right shall be granted to associations of industrial, agricultural or commercial employers duly registered as laid down by the present Decree with reference to the public committees and bodies to which industrial, agricultural or commercial employers are admitted and which pursue the aims defined in the first section : (a) The associations defined under section 2, (a) (national associations of a general nature), shall be called upon to nominate their representatives to the Committees and bodies having a national sphere of action and concerned with industry or agriculture or trade in general ; (b) The associations defined under section 2, (b) (national associations grouped by categories of production or of commerce), shall be called upon to appoint their representatives to the committees and bodies having a national sphere of action and concerned specially either with their own industry or the group of affiliated industries, or their own agricultural products or the group of affiliated agricultural products, or the affiliated trades ; (c) The associations defined under section 2, (c) (regional or local associations of a general nature), shall be called upon to appoint their representatives to the committees or bodies concerned with industry or agriculture or commerce in general and having under their jurisdiction the territory in which they exercise their activities ; (d) The associations defined under section 2, (d) (regional or local associations grouped by categories of production or of commerce), shall be called upon to appoint their representatives to the committees and bodies concerned either with their own industry or the groups of related industries, or with their own agricultural production or the group of related agricultural products and having under their jurisdiction the territory in which they exercise their activities. ITALY 19 But this Decree, which had been very slowly and carefully drafted and had not been issued without discussion of the various problems raised by the recognition of trade associations, and which m i g h t seem to be the beginning of an understanding between the numerous conflicting interests 1 , was never applied. However, in view of t h e considerable importance which t h e associations had acquired in recent years a n d the lack of any special law, legal practice had allowed t h e m a certain legal and social competency. T h e positive content of this competency depended in its essence on the agreements a n d facts which will be examined from the point of view of the relations between the association and its members and the relations between t h e associations and third persons. T h e relations between the association and its members in general may be outlined as follows : (a) Membership was personal ; it was neither transferable nor alienable. (b) Successive joinings of the association were permitted, as was also, under conditions laid down by the social constitution, resignation. (c) T h e member was obliged to pay contributions social purposes. for (d) T h e member was obliged to submit to the requirements of discipline and solidarity. H e had therefore to fulfil all decisions of the association, even t h o u g h h e were of a different opinion, provided that they k e p t within the limits of t h e constitution and had been duly discussed. These provisions covered strikes, stoppages of work and the contract of employment. (e) T h e association possessed disciplinary powers which found their concrete expression in t h e ability to suspend or expel the member or impose a fine on him. T h e sanctions of these obligations were of a civil n a t u r e . T h e legal competency of trade associations in relation to third parties was also recognised by the legal practice of that day. T h e y 1 See the report on the Bills Nos. 195 and 1,469 (Chamber of Deputies, 26th session) jrat forward under the signatures of Piemonte, Olivetti, and Grandi Achille. 20 FREEDOM OF ASSOCIATION had t h e power of acquisition a n d of ownership ; it was also granted, although less unanimously, that they had the power of receiving donations a n d it was likewise admitted that t h e association w a s competent t o conclude contracts of employment for its members, to appear in a court of justice a n d to exercise subsidiary trade union functions. Various schemes had been p u t forward in Italy with regard to collective labour contracts, b u t n o n e h a d been ratified b y legislation. However, there had grown u p in legal theory and in judicial practice a certain number of principles, which might be outlined t h u s : (a) T h e organs of t h e trade association h a d , within t h e limits of their representative powers, t h e right to make collective agreements which were binding on t h e members \ (6) T h e agreement entered into b y t h e association w a s binding on those w h o might join it later. (c) There was a tendency in theory and in judicial practice to extend t h e collective agreement for i t s whole duration to all t h e groups concerned, even including those which had not taken part in it, w h e t h e r because they dissented or because they had arrived later. T h i s tendency towards the diffusion of collective labour agreements appeared chiefly in t h e practice of t h e Probiviral Courts, which sought to have t h e agreements in force considered as obligatory local usages 2 . 1 The Act of 7 April 1921, No. 407, on the prorogation of agrarian contracts, now abolished, laid down in section 17 that : " collective agrarian agreements entered into by employers and land workers were binding on all those who, at the moment when the agreements were made, were members of an association therein represented ". 2 UFFICIO DEL LAVORO : Il probovirato in Italia, Rome, 1921 ; and the decisions of the Probiviral Courts published successively in the Bollettino del Lavoro. Cf. CARLO COSTAMAGNA, op. cit., p. 161. The author sums up as follows the attitude of legal practice to the personal and territorial radius of application of the collective agreement : (a) effectiveness of the collective contract confined to the contracting parties stricto sensit, to the exclusion of third parties : such was the doctrine constantly maintained by the traditions of civil law which held absolute sway in the practice of the courts and in the central commission for private salaried employment ; (b) effectiveness of the collective contract in respect of all the members of the categoty to which it referred, whether or not they had been consenting parties ; (c) legal effectiveness limited to the contracting parties but possessing- interpretative value for ITALY 21 (d) T h e association was responsible for its own actions and the actions of the persons representing it, but in view of the practical difficulties which prevented a definite determination of responsibility, it was found preferable to have recourse to a system of real guarantees. A s regards the competence to appear in a court' of justice, Italian judicial practice had taken its inspiration successively from three conflicting theories. I t was inspired first by the restrictive system, according to which all the members act collectively, or give authority to a person in whom they have confidence ; later it took its inspiration from a mixed system, which distinguishes between internal differences between the association and its members and external differences between the association and third parties. I n the first case the associations could appear in court either actively t h r o u g h themselves or else through their authorised representatives. In the second case, the members were to be parties to the suit either directly or by mandate. I n recent times it was the extensive system which generally triumphed. According to this system, the competency of the association de facto to appear in a court of justice was recognised for all internal and external differences, either as plaintiff or defendant, save that the third parties had the right, if they so wished, to cite t h e association in t h e persons of all the members \ Finally, the trade association was authorised to exercise subsidiary functions ; it had the right to promote and constitute within itself organisations for co-operation and m u t u a l aid. T h e s e m u t u a l and co-operative organisations, in so far as they were not constituted in legal form, were considered as societies de facto. I n a general way the associations had been left free to dispose of their resources within the limits of their constitutions. T h e y were therefore entirely free to use them for supporting newspapers or in g r a n t i n g subsidies to political parties. analogous cases. This conception was upheld by a certain number of decisions of the Probiviral Courts. It is only quite recently that the Royal Court of Cassation finally admitted the validity of the collective labour contract concluded by a trade association de facto with reference to workers not connected with the undertaking at the time of the agreement. 1 BORSATTI : La capacità processuale delle associazione prive di personalità giuridica. Florence, 1906. MORTARA : Commentario al Codice delle leggi di procedura civile, Voi. II, pp. 717 et seq. 22 FREEDOM OF ASSOCIATION LEGAL LIMITATIONS TO THE ACTION OF T R A D E ASSOCIATIONS The action of trade associations was confined within certain limits : prohibitive limitations affecting the rights of certain categories of persons to combine for trade purposes ; preventive limitations establishing certain forms of control or of supervision ; finally, repressive limitations, envisaging sanctions in case of violation of the laws and offences against public order. One important problem was that concerning officials and citizens employed in the public services. It has been seen already that officials, and therefore all the more those employed in the public service, enjoy freedom of association, but their power to combine for trade purposes did not include the right to strike. Section 181 of the Penal Code stated, indeed : " Public servants who, to the number of three or more and after having previously planned together, do irregularly abandon their proper duties, shall be punished by a fine of 500 to 3,000 lire and by temporary removal from their posts. " The employees of the State Railway had been placed on the same footing as public officials by section 56 of the Act of 7 July 1907, No. 429, which stated : " All the employees of the railways administered by the State, whatever be their grade or duties, shall be considered as public employees. " This provision was repeated in identical terms by section 115 of the Act of 9 May 1912, No. i,447, which regulates the constitution of the secondary railways handed over to private enterprise. Finally, a seaman's contract of service had always been considered as a public contract. It followed that in case of breach of contract the sanctions were not only of a civil nature but also penal. In fact, the seaman who, after signing on, left his ship and did not return on board was guilty of the crime of desertion, which was aggravated by conspiracy when it had been planned by at least three members of the crew (Code of the Mercantile Marine, sections 266 and 267). The Code punished disobedience to the captain's orders (sections 281 and 282) and insubordination marked by refusal to serve and carry out the work of navigation until the conclusion of the voyage, as it was defined in the contract on the basis of which the seaman had signed on (sections 283-293). Other penalties were incurred by mutiny, which consisted in presenting complaints riotously and with threats, and which moreover could be committed elsewhere than on board (sections 294-296). ITALY 23 All these provisions, which were based on the necessity for protecting the public services, did not, properly speaking, restrict the freedom of membership of trade associations, but limited the employment of certain methods of action usual to such associations. The preventive limitations set to the freedom to combine for trade purposes were, until quite recently, so to speak non-existent in Italian law. The Public Safety Act (of 30 June 1889, No. 6,044) prescribed in its first section that previous notice must be given of all public meetings (with the exception of meetings of electors). Police were present at the meetings and if they gave rise to seditious demonstrations or to disturbances they were dissolved. These provisions in fact made subject to police control all public meetings, which, in practice, could also be prohibited by order of the prefect under the political responsibility of the Cabinet. Private meetings were uncontrolled, but the police had the right of surveillance from without ; they could not interfere except in case of crime or disturbances. The repressive limitations referred to violations of the right to work 1 and to dissolution by administrative or judicial means. The question whether, in the eyes of Italian general law, it is illegal to dissolve trade associations and associations more generally had never been definitely decided. In any case, in the whole arsenal of positive State laws there was not a single line to be found which authorised the State or the police to dissolve an association as a preventive measure as long as there had been no crime or misdemeanour. But in practice, from 1862 several associations had been dissolved with or without denunciation before the judicial authorities, so that finally, quite outside the proper limits of the law, there had come into existence a kind of zone of vague general legality, the limits of which were left to the discretion of the Government or of Parliament. But from 1900 until the most recent years the associations had enjoyed complete freedom of development. To sum up, the legal position of the trade associations before the Fascist reforms appeared as follows : recognition of the right of combination and the right to strike since the promulgation of the new Penal Code in 1890 ; legal recognition of the right of association by the Constitution and formal recognition of this right by Government 1 See pp. 12 et seq. 24 FREEDOM OF ASSOCIATION practice since 1900 ; possibility of legal action by a trade association in the name of its members in their relations with third parties (right of entering into collective contracts and appearing in court to uphold the enforcement of such c o n t r a c t s ) , a n d in their relations with public authorities (participation in a great number of State consultative bodies). Generally speaking, trade associations were completely free to extend their activities save for the limitations imposed by general law. T h i s position was to be greatly modified in fact, first of all as a result of the upheaval in Italy after the war, and then in law with the arrival of the Fascist Government. § 3. — The " de facto " Position of the Trade Union Movement before the Fascist Reforms T h e history of trade unionism after the war is interwoven with the general history of Italy in t h e last few years. Considering it generally and as a whole, it is possible to distinguish two periods : a first period characterised by feverish activity among the Socialist trade unions from 1919 to the middle of 1922, and a severe period characterised by the predominance of Fascist activity. I n the course of the first period the trade union struggle was dominated by the idea of realising completely, by taking over the means of production, all the r i g h t s claimed b y t h e proletariat. T h e struggle developed with great intensity in industry and agriculture as well as among seamen. I t was stronger in U p p e r Italy, and particularly in the great valley of the Po and in the surrounding spurs of t h e Apennines. I t grew gradually weaker towards the South, more lost in the life of t h e locality, more deeply influenced by ancient traditions and adapted to ordered and established social conditions. I t seemed at first as if the struggle would end in a social upheaval. But the curve reached its zenith in a u t u m n 1920 with the occupation of t h e factories and the general invasion of landed property. After this period t h e curve fell continuously, the produci n g classes recovered their fighting spirit and combined with all their weight and all their power under the stimulus of a common danger, while the workers, disappointed at the lack of success of their most powerful efforts, began to disband. T h e situation in Italy during this period can be illustrated by the statistics of strikes, which nevertheless give only a very faint 25 ITALY approximation to t h e t r u t h , seeing t h a t a good number of strikes escaped statistical returns. Contrast t h e figures for a period of three normal years, say, from 1911 to 1913, w i t h t h e period from 1919 to 1921 *: Days of Strike Years 191I 1912 1913 Average of the three years, 1911-1914 . . . 1919 1920 1921 . . . . . Average of the .three years, 1919-1921 . . . Agriculture- Industry Total? 1,863,564 921,217 /03,3?6 2,477,798 1,968,198 3,839,240 4,341,2/2 2,889,415 4,542,636 1,162,726 2,761,715 3,924,441 3,436,829 14,170,961 407,393 18,887,917 16,398,227 7,772,870 22,324,746 30,569,188 8,180,263 6,005,061 14,353,005 20,358,066 T h e figures show that from 1021 onwards t h e revolutionary trade union push had already been definitely held u p . I n 1922 t h e strike figures continue t o fall, although b u t slightly. T h e fall becomes more rapid in 1923 a n d continues in 1924 a n d 1925. T h e causes of t h e triumph of the revolutionary sections of opinion in t h e earlier period were varied a n d complex. T h e y were at once psychological, economic, social, a n d political. I t is unnecessary t o analyse them in detail. I t is important however to examine in outline t h e reasons which determined t h e choice of t h e means employed. T h e desire to secure a monopoly of labour — t h e old ambition of the trade union movement — ceased to b e considered as a mere condition of successful tactics in t h e struggle for wages a n d for a general fixed scale, b u t was held to be t h e indispensable means of securing an advantageous position in view of " t h e decisive attack " which was to b e launched against t h e employers. T h i s privileged position of t h e Socialist trade unions found practical expression in the maintenance of a n almost complete monopoly w i t h regard to t h e conclusion of collective agreements a n d t h e representation of wage-earners on labour advisory bodies and joint employment exchanges. 1 The figures are taken from the publication of the MINISTRY FOR ECONOMIC A F F A I R S : Rome, 1924. Conflitti del Lavoro nel decennio 1Q14 à 1Q23 ; 20 FREEDOM OF ASSOCIATION The trade union methods of action became more violent ; hence the succession of strikes, economic and political, local and national, confined to one trade or general, extending to the most necessary vital services (railways, tramways, shipping, foodstuffs, lighting). And along with the strikes went, almost everywhere, individual and collective threats and acts of violence against persons and things, riotous agitation in the fields, in shops, in the streets ; there was a rigorous labour monopoly applied by the severest methods, from strict, irritating boycotting to the infliction of fines in the country districts on workers guilty of infringement of trade union discipline. The hope was indulged in that by the help of such proceedings it would be possible to obtain not only an immediate improvement in economic conditions, but also a monopoly of employment and seizure of the factories by participation in the administration of the undertakings. Trade union activity moreover was supported by political activity : numerous seats in Parliament were won and also a great number of seats in local administrations, and a constant and energetic pressure was exercised on all kinds of authorities. The struggle reached its height with the occupation of the estates and factories. " The land for the peasants ", this slogan raised during the war was a germ which grew.and bore fruit, especially in the districts of extensive estates and vast domains where labour is less bound to the soil than elsewhere and where the life of the workers was harder and more precarious. More or less everywhere, but especially in Sicily and Latium, a great number of estates, nearly always extensive arable estates, were seized in IQIQ and 1920. Private organisations, at the instigation of municipal parties, hastened to take possession of the large domains, particularly those which were within their more immediate reach. The State sought to stem the movement and to create an irrevocable title to possession based on occupation, and in exceptional cases a title to ownership, while at the same time insisting on the payment of the market price. But thè most important episode in the history of those years was the occupation of the factories, which took place in September 1920 on the occasion of a conflict in the metal industry. The number of workers who took part is estimated at about 600,000, chiefly in Piedmont, Lombardy, and Liguria. The Government allowed the workers to take possession of the factories and to continue to work them. But the attempt failed and the trade union leaders tried to ITALY ¿J find another solution of their difficulties. A t the meeting held at Milan on 10 and 11 September between the Council of t h e General Confederation of Labour, t h e organs of t h e Socialist P a r t y , a n d of a certain n u m b e r of independent federations, a resolution was passed by which it was decided to set u p as t h e aim of t h e struggle State recognition of the principle of trade union control in industry. T h e President of t h e Council, indeed, opened negotiations with owners a n d workers, negotiations which ended in t h e Presidential Decree of 19 September, worded as follows : The President of the Ministerial Council (acting on an agreement in principle arrived at between the General Confederation of Labour and the General Confederation of Industry, deciding on management by industrial categories) decrees : There shall be set up a Joint Commission of six members nominated by the General Confederation of Labour and of six members nominated by the General Confederation of Industry, two from each party being technicians or employees ; the said Commission shall draw u p proposals which will permit the Government to put forward a Bill for organising industries on a basis of participation by the workers in the technical or financial management or in the administration of the undertaking. But within t h e Commission t h e representatives of t h e employers and those of the workers did not succeed in reaching an agreement over t h e e x t e n t a n d methods of t h e control \ Mr. Giolitti drew u p a compromise Bill, which h e laid before t h e Chamber without delay and which he presented a second time before the following Government. But there was no one, even among the Socialists, who demanded that it should be discussed. T h e results of the tremendous effort of t h e mass of t h e workers were not long in showing themselves t o be deceptive. T h i s reverse of t h e independent trade union movement, indeed, is the forerunner of the rise of a new trade union movement, bold in attack : t h e Fascist movement. T h e first Fascist trade union came into being in J a n u a r y 1921, at F e r r a r a . Helped b y the political successes of the Fascist P a r t y , t h e Corporations — t h e name by which they were at first known — spread very rapidly and were united in the Confederation of Fascist Corporations. As this movement increased in extent a n d influence the leaders of Fascist trade unionism strove to set u p their own principles 1 BALELLA : //. controllo delle Industrie : Rome, 1921. Cf. INTER- NATIONAL LABOUR OFFICE : The Dispute in the Metal Industry Studies and Reports, Series A, Nos. 2 and 11. in Italy, 28 FREEDOM OF ASSOCIATION and m e t h o d s , of action in opposition to the programme of the old independent trade unions. But it w a s not until the congress of the Corporations of 5 October 1924 that they definitely established their programme. T h e old Article 5, the first two parag r a p h s of which have become the present Article 5 of the constitution of the Confederation of Fascist T r a d e Unions, states it t h u s : The Confederation, considering that the social structure based on the trade unions is developing as a representative of the interests of all professional branches and of all classes (interests which tend to build between the classes a network of economic and social relations which are such as to determine and define the social functions of each), maintains that the trade union is established as the essence of all the branches of production and, as such, is identified with the needs and the processes of production and is incorporated in the nation as a supreme synthesis of all the moral and spiritual values of the race. The Confederation maintains that the common interests and duties of all branches and all classes consist in work and in intensive and, growing production in proportion to the growing needs of the nation as also in struggling against parasitism, the squandering of wealth, and speculation in the essentials of existence. It is for those reasons' that trade unionism is the expression of the demands of a society in which the problems of production and cultivation are of the highest importance, seeking to put all organised productive forces under the control which science and technical progress demand. The Confederation admits all types and all systems of production and of labour, inasmuch as they represent the result of technical and administrative ability and of foresight; qualities which are indispensable for the success of any undertaking, and inasmuch as they work in the field of free competition, admitting neither admixture nor illicit interference on the part of Government bodies. The Confederation maintains that classes are necessary, seeing that each has its special function which is essential for the orderly accomplishment of the common task, a division of labour which is indispensable for the national organisation of labour and production. Hence the dynamic law of social history does not consist so much in an irreconcilable classwarfare, which would finally prove a denial of the real purpose of society and reduce it to chaos, as in a struggle of ability, that is to sa}', a struggle carried on by groups of occupational categories which are acquiring the ability to carry out the work of management, against groups of categories which are beginning to lose the ability to fulfil the duties of control. The Confederation therefore maintains that the historical justification of every revolution is to be found, not in poverty, discontent, or a spirit of discord, but in the peculiar merit of groups which are being formed or renewed in the bosom of society. Consequently revolution cannot be hastened or advanced, but can be nothing more than the passing of supreme power into more capable hands. The principle of the conflict of ability implies as a rule a sectional struggle which may also exercise the right to strike, but which is not entitled to do so unless the strike or other similar forms of specialised action are likely to remain strictly localised, attacking only those groups which it is legitimate to eliminate in the interests of laboul and of national production. T h e Fascist movement came into existence as a reaction to defend society against the excesses of independent trade unionism. ITAXrY 29 I n its first phase the Fascist reaction was purely destructive. W i t h all its strength and by all possible means it sought to destroy what it considered to be the germs of the malady which was infecting t h e nation. Armed battalions occupied the town halls, provident institutions, association offices, hindered the strikes, pillaged the political clubs, the trade unions, the mutual-aid societies and the co-operative societies \ W i t h the coming of the Fascist Government the aspect of events changed. T h e desire of the Fascist P a r t y to be one with the nation encouraged it to seek to achieve a new and more extensive monopoly both over the trade union sphere and over the sphere of labour relations. T o attain this end the Fascist corporations aimed at t h e suppression of the independent trade unions and the absorption of the associations of employers. But if the workers' associations had felt the weight of the destructive attack, the employers' associations remained for a time unmoved. T h e corporations succeeded nevertheless in absorbing first of all the Confederation of Agriculture, and finally in being recognised by the General Confederation of I n d u s t r y as the sole representative of labour. T h e Fascist movement, at the same time as it tried to absorb the existing trade associations, sought also to swallow up in its own organisation all the social classes and particularly those groups of citizens (salaried employees, liberal professions, etc.). which u p to then had to some extent at least remained outside the bounds of trade union protection. T h e Fascist trade associations, moreover, promoted the setting u p of technical councils, such as t h e expert groups entrusted on t h e one hand with the establishment of relations between the trade associations and various sections, and on the other hand with the preparation of plans for a constitutional transformation which would bring about a n integral and centralised organisation of the social forces of the country 2 . W h e n Fascism appeared it had enjoyed the strong sympathy of the employing class in agriculture. T h e r e were also a good number 1 Cf. discussions of the Seventh and Eighth Sessions of the International Labour Conference, Report of the International Labour Conference, 1925. Vol. II, pp. 609-639 ; ibid., 1926, Vol. I, pp. 315-327. 2 Cf. CARLO COSTAMAGNA : II problema dei consigli tecnici. 30 FREEDOM OF ASSOCIATION of people to be found who favoured the idea of making the corporations a basis of the agricultural employers' association movement. The resistance of the leaders of the Confederation brought about the secession of a large section of the agriculturists, who formed at Bologna the Italian Federation of Agricultural Associations (F.I.S.A.). The instigators of the secession believed that by this step they would give a more vigorous impulse to the movement by means of a closer fusion with the party in power. The year 1923 saw the development of a duel with blunted foils between the old Confederation and the corporations. Finally, on 19 February 1924, a treaty of amalgamation was concluded. The Fascist corporations tried to absorb the General Confederation of Industry as well, but the leaders of the Confederation succeeded in maintaining its autonomy for the time being. The employers' associations hesitated indeed to break with the independent trade unions, which, although at the moment disorganised, could yet count on the faithful support of the industrial workers in the great urban centres, who were less exposed to political pressure than those in small centres. The independent trade unions therefore continued to exert a definite influence on labour conditions, either by collective bargaining or by the action of the internal committees. These committees had been instituted by an agreement between the employers and the trade unions in order to supervise the enforcement of contracts made and to be the interpreter of labour claims to the heads of undertakings. The members of the committees were elected by universal suffrage among the workers of the various establishments, and the independent trade unions always secured the success of their candidates. However, the corporations did abandon the struggle. They took part ex officio in the drawing up of contracts of employment, without troubling about being empowered to do so, in order that they might present to the body of workers the signed agreement already settled, so as to give them the impression that they had no other means of defending their interests. At the same time they continued their efforts to obtain recognition from the General Confederation of Industry as the sole representatives of labour to the manufacturers. After long negotiations they at last won their point, thanks to the help of political power : the Fascist Grand Council, under the presidency of Mr. Mussolini, passed a resolution (November 1923) by which, " recognising that the majority of the forces of Italian ITALY í1 industry are banded together in the General Confederation of I n d u s t r y ", it declared that " it had not the remotest intention of creating schisms or imperilling the effective action, either technical or moral, of this body ", b u t demanded t h a t " the said Confederation should remember this in its relations w i t h the Fascist trade unions ". T h i s appeal was listened to. On 19 December, the General Confederation of Industry and the Fascist corporations reached the following agreement : The General Confederation of Industry and the General Confederation of Fascist Corporations : In pursuit of their common aim of harmonising their own activities with the guiding principles which inspire the Government of the nation, which has repeatedly affirmed its conviction that a sincere agreement and determination to work among leaders of industry, technicians, and workers is the surest method of increasing the welfare of all classes and the wealth of the nation ; And recognising the perfect correctness of this political view and the necessity of making it play an effective part among all the productive forces of the nation ; Declaring that the wealth of the country, the chief condition of its political power, may be quickty increased, and that it is possible to spare both workers and employers the losses and harm resulting from interruptions of work, if harmony between the various elements of production assures the continuity and peacefulness of industrial development : Do lay down as an irrefutable principle that the organisation of trade associations should not be inspired by an irreconcilable conflict of interests between manufacturers and workers, but on the contrary should be permeated by the necessity of binding more and more closely the individual ties between their associations with a view to securing for all the factors of production the best possible conditions for carrying out their respective duties and the most equitable reward for their labour, a principle which ought to be reflected likewise in the clauses of contracts of employment concluded in the spirit of national trade unionism ; And do decide : (a) that the Confederation of Industry and the Confederation of Fascist Corporations shall intensify their activity so as to organise respectively the manufacturers and the workers, with the firm intention of working harmoniously together ; (b) to appoint a standing committee composed of five members from each of the contracting parties, which shall have the duty of seeing that the ideas expressed above are more thoroughly carried out, at the centre as well as on the outskirts, by uniting the governing bodies of both Confederations, so that the activities of the associations may develop in accordance with the guiding principles approved by the head of the Government. But this friendly alliance was merely the prelude to an agreement of m u c h greater importance arrived at on 2 October 1925, which ratified de fació the sole right of t h e Fascist corporations as representatives' of the Italian industrial class. FREEDOM OF ASSOCIATION 32 H e r e is the text of the agreement : i. The General Confederation of Industry recognises that the Confederation of Fascist Corporations and the dependent organisations are the sole representatives of the workers. 2. The Confederation of Fascist Corporations recognises that the General Confederation of Industry and the dependent organisations are the sole representatives of the manufacturers. 3. All contractual agreements between employers and workers shall be secured by an organisation subordinate to the Confederation of Fascist Corporations and the Confederation of Industry. 4. The internal committees are abolished and their duties transferred to the local Fascist association. T h e vast import of this agreement cannot be better shown than by recalling the words of appreciation used by the author of the Act of 3 April 1926 : The agreement of 2 October 1925 [he writes in the preamble] between the General Confederation of Industry and the Confederation of Fascist Corporations, by which the two organisations recognise each other's position as sole lawful representatives of employers and workers in industry, marks the triumph of national trade unionism and paves the way for the most profound transformation that any State has undergone since the French Revolution, and which the Fascist Government is inaugurating by the Bill submitted for your approval l . 1 Preamble, p. 4. CHAPTER II PRESENT LEGAL POSITION OF TRADE ASSOCIATIONS § 1. — Constitutional Reform and Preparatory W o r k for the Reform of Trade Associations THE S P I R I T OF T R A D E UNION LEGISLATION T r a d e union legislation, spurred into action by these events, can be explained, according to its authors, only in terms of the Fascist theory of t h e State. I t will be well then to commence by considering the part which the State proposes to assume in this new regime. A brief comparison of two contradictory points of view, or rather of two contradictory professions of faith, will serve better t h a n any long discussion to make the matter clear. Waldeck-Rousseau, originator of the Act of 21 March 1884, laid down in t h e following terms, in his Circular to t h e Prefects on 25 A u g u s t 1884, t h e attitude of the Government to the new trade union legislation : In removing all barriers to the industrial associations' right to combine, the Act of 21 March 1884 has, in the same spirit of freedom, abolished all preliminary authorisation, all arbitrary prohibitions, all special formalities. . . . Were the duty of the State confined exclusively to the strict supervision of the enforcement of the laws, your intervention would doubtless be rarely required. . . . Your duty, however, is more comprehensive, and you are expected to encourage the spirit of association, to stimulate it, to facilitate the generalisation of this Act of liberty, to make its practice as easy as possible and to smooth out the difficulties which will certainly arise from inexperience and want of habit '. T h e Act of 1884 inaugurated the policy of freedom of occupational association in France. According to this new policy which has prevailed in legislation after having won its position in fact, freedom of association is conceived as a complement of individual liberty. 1 See Vol. II of this work : " France ", p . 100. Freedom of Association 3 34 FREEDOM OF ASSOCIATION I t is t h e t r i u m p h of that principle of freedom of trade association which h a s prevailed in F r e n c h law, b u t which to-day, in almost t h e same forms, is also the basis of trade union legislation in most countries. Henceforth the State recognises independent trade associations, encourages their progress, b u t refuses to submit them to a n y other discipline than t h a t imposed by general law and public order. N o w t h e rôle assumed b y t h e ruling power in t h e Italian trade union system is quite different : The Fascist State [says the preamble] which we wish to achieve, and which we are on the point of achieving, is the really sovereign State dominating all the existing forces of the country and directing them towards the historical aims of the nation *. According to my conception of Fascism [added, for his part, the President of the Council] everything is in the State, nothing is outside the State, and above all nothing is hostile to the State 3 . T h e State t h u s conceived cannot restrict itself to an attitude of benevolent neutrality, " b u t must take into its own h a n d s t h e question of t h e relationships between capital and labour and must find a solution which tends to peaceful collaboration between social groups and an increased revenue from national production " 3 . T h e State t h u s asserts its supremacy in economic affairs a s well as in t h e realm of politics, it repudiates at the same time economic Liberalism characterised by the neutrality of the State and also t h e Socialism of class warfare, and insists upon " t h e genuine solidarity of all classes of a poor people which must march towards the future like an army in battle array ". 4 . F r o m those quotations, which might have been multiplied, t w o g u i d i n g ideas of the new reform can be clearly distinguished ; first, the subordination of t h e activity of trade associations to t h e control of t h e Government ; secondly, class co-operation with a view to increasing the power and wealth of t h e State, and t h e necessity of moulding this co-operation from now on in legal formulas. T h e task of creating t h e legal i n s t r u m e n t of t h e new social and trade union organisation had been entrusted to a Committee of 1 Preamble to the Bill for regulating collective labour relations, p. 4, col. 2. Cf. sections I and II of the Labour Charter. 3 Parliamentary Documents, Speech of the Prime Minister in the Senate, in Trade Union Reform in Italy, p . 206. 3 Ibid., Preamble, p. 5. 4 Ibid., p . 4. 35 ITALY eighteen members appointed by Decree of the President of the Council dated i J a n u a r y 1925. T h i s was a double task. I n the first place there was the constitutional side, the regulating of the relations of the different authorities with each other ; the other task was the social one of regulating the relations between the State and the associations. A s regards t h e first of these problems, the work of the Committee resulted in various proposals which implied important amendments, if not in the letter, at least in the spirit of the constitution of 1848 \ T h e s e proposals with certain important alterations have since been included in the statute book. I t is not necessary here to analyse the different measures in detail, far less to estimate their political i m p o r t a n c e 2 , but as the whole trade union organisation can be conceived only in terms of the preceding political reforms, these must be at least briefly mentioned.. CONSTITUTIONAL R E F O R M Strengthening of the Executive Power T h e first group of these Acts refers to the strengthening of the powers of the Leader of the Government a n d of his direct agents in the provinces and in the communes. T h e Act of 24 December 1925 on the attributes and prerogatives of the Leader of the Government, P r i m e Minister, and Secretary of State lays down in particular : Section 2. — The Leader of the Government, Prime Minister, and Secretary of State shall be appointed and dismissed by the King and shall be responsible to the King for the general political administration of the Government. The Decree of appointment of the Leader of the Government and Prime Minister shall be countersigned by himself, that of his dismissal by his successor. The Secretaries of State shall be appointed and dismissed by the King on the recommendation of the Leader of the Government and Prime Minister. They shall be responsible to the King and to the Leader of the Government for all their actions and for all the measures of their Ministries. 1 See the report and proposals of the President's Committee for the study of constitutional reforms : p. 81, proposed Act to regulate certain relations between the Government and the Chamber ; p. 82, proposal to amend Article 35 of the constitution ; p. 84, proposed Act on the procedure to be observed in the promulgation of laws and regulations. 2 Cf. A. Rocco : " La réforme constitutionnelle en Italie ", in Revue politique et parlementaire, Vol. CXXVI, pp. 329-345. 36 FREEDOM OP ASSOCIATION The Under-Secretaries of State shall be appointed and dismissed by the King on the recommendation of the Leader oi the Government, in agreement with the Minister concerned. Section 6. — No Bill may be put forward in either of the two Chambers without the consent of the Leader of the Government. The Leader of the Government shall have the power to insist that a Bill rejected by either of the Chambers shall be voted upon again when at least three months have elapsed since the first vote. In this case, voting on the Bill shall be proceeded with by secret ballot without discussion. vShould the Government, in demanding a fresh vote, put forward amendments, the examination and discussion of the Bill shall be limited to the amendments ; voting on the Bill by secret ballot shall then be proceeded with. The Leader of the Government shall also have the power to demand that a Bill rejected by one Chamber shall be laid before the other to be examined and voted upon. When a Bill already passed by one Chamber is passed by the other with amendments, the fresh examination and the fresh discussion in the Chamber to which the Bill is returned shall be limited to the amendments ; thereupon voting on the Bill" by secret ballot shall be proceeded with. As this Act makes the President of the Council the real Leader of the Government, so the Act of 3 April 1026, on the extension of the powers of the Prefects, makes his direct agents the real heads of the provinces \ T h e same idea finally inspired the institution of Governors 2 in the most important towns and Podestas in all other towns of the Kingdom 3 . Governors and Podestas, nominated by the Government, assume in their respective spheres all the powers which formerly belonged to the mayors, to the aldermen's corporations (collège 4 échevinal), a n d to the municipal councils . Delegation of Legislative Power to the Executive A second group of Acts grants the executive enormous power in legislative matters, of which t h e Government made great use in the application of trade union laws. 1 Gazzetta Ufficiale, Act No. 660 : Extension of the powers of the Prefects. 2 Ibid., Act No. 1,949 : Institution of -^and regulations for the Governor of Rome. 3 Act of 4 Feb. 1926, institution of Podestas and municipal councils • in the communes whose population does not exceed 5,000 inhabitants, completed by the Legislative Decree of 3 Sept. 1926, which extends the institution of Podestas to all the towns of Italy. * The part played by the recognised associations in the councils by which the representatives of authority are surrounded will be examined later. Cf. " Part Played in Political Life ", p. 128. ITALY 37 T h e Act of 31 January 1926 on the power of the executive to promulgate legal rules ' gives the Government the right to promulgate, by Royal Decree, such rules as are necessary for regulating the enforcement of laws, the use which the executive makes of its powers, the organisation and working of the State administrations, t h e organisation of the staff attached thereto, the organisation of civil personalities and of public institutions. Besides, the Governm e n t may, by Royal Decree, after discussion by the Cabinet Council, publish regulations having t h e force of law : when t h e right to do so has been delegated to the Government a n d within the limits of this delegation, or in exceptional cases w h e r e urgent reasons and absolute necessity make it essential. T h e decision as to the necessity and urgency is not subject to any control save the political control of Parliament. I n these t w o cases t h e Royal Decree m u s t contain a clause regarding its presentation to Parliament to be made law, and it becomes null a n d void if not t h u s p u t forward to be made law in one of t h e t w o Chambers during one of t h e three sessions following its publication. T h e Act of 24. December 1925 for its part delegates to the Government the power to amend the P e n a l Code, t h e code of penal procedure, and the laws on judicial organisation, and to introduce fresh a m e n d m e n t s or additions to the Civil Code. T h e first section authorises the Government : (1) To amend in the Penal Code the provisions concerning the system of penalties, the effects and carrying out of penal sentences, the clauses which exclude or lessen criminal liability, relapses, annulment of the action and of penal sentences, and the provisions concerning every offence and the respective punishments, to adapt them to fresh exigencies of economic and social conditions, as well as to amend the sections of the Code itself which traditionally give rise to discussion or have been recognised as imperfectly formulated ; (2) To modify the laws on judicial organisation, other laws concerning the organisation of the Ministry of Justice, of the law courts and of the judicial personnel in all its branches ; to bring the rules of judicial organisation into harmony with the new Codes of Civil Procedure and of Penal Procedure and to publish a fresh single text of the Act on judicial organisation ; (3) To co-ordinate the new provisions of the Penal Code, the Code of Penal Procedure and the Acts on judicial organisation, and those relating to the same subject contained im other Acts, incorporating if necessary the provisions of the latter in the two Codes and in the single text on judicial organisation ; to amend, always with a view to coordination, other Acts. 1 Gazzetta Ufficiale, Act No. 100. 38 FREEDOM OF ASSOCIATION Section 3 authorises H i s Majesty's Government moreover : to introduce in the Civil Code other amendments and additions besides those indicated in t h e first section, N o . i , of t h e Act of 30 December 1923, N o . 2,814, at the same time preserving the fundamental principles of the institutions. It also authorises it to establish co-ordination between the provisions of this Code a n d those which refer to the same subject in other Acts, incorporating the latter in the Code and amending them if necessary,, always with the same purpose of co-ordination. Finally, the Act of 31 December 1925 authorises H i s Majesty's Government to amend the provisions of the Acts on public safety and to establish their co-ordination with those referring to the same subject contained in the Code of Penal Procedure and in other Acts and to publish a new consolidated text of the Acts on public safety l . T h a n k s to this extensive delegation of authority, the Government found itself armed to undertake trade union reform, which, as is well k n o w n , is merely the starting point of a much vaster reform seeking to reorganise Italian society on an entirely new basis. The Preparatory Work for Trade Union Reform T h e second problem, the trade union problem properly speaking, with which the Committee of Eighteen was entrusted, has been the object of two draft Bills, complementing each other. T h e first deals with the legal recognition of trade unions and the second with corporate organisation. Both have helped in the building up of the new trade union law and an analysis of them as a preliminary will serve to make clear its inspiration. Draft Bill for the Legal Recognition of Trade Associations 2. — I n conformity with the political premises which form the basis of all Italian legislation, legal recognition is accorded to trade associations above all in the superior interest of the State rather t h a n in their own interest \ I t follows that the State is sovereign judge of the opportuneness or otherwise of endowing trade associations w i t h a moral personality, a privilege which it will hold subject to the 1 In virtue of this Act the Royal Decree of 6 Nov. 1926, No. 1,848, was promulgated, approving the single text of the Acts on public safety. Cf. " The legal and de facto Regulation of Independent Trade Unions ", pp. 138 et &eq. 2 Report", op. cit., Appendix, pp. 89-102. 3 Ibid., p . 102. ITALY 39 conditions which it may please to lay down. These conditions may be summed u p in one single fundamental one : the special activity of collective bodies m u s t never spread to t h e extent of clashing w i t h the general weal \ Consequently legal registration will not be proceeded with wholesale, but shall b e dealt w i t h case by case as may be decreed by the administrative authorities. T h e guardianship of the State over t h e associations will continue to b e exercised during t h e whole of their active existence. I n case of violation of the provisions of t h e Act or of the spirit which inspires it, the Prefect and the Minister may decree the dissolution of the administrative councils or t h e suppression of the associations themselves. Certain of the principles of t h e proposal have been sanctioned b y the Act of 3 April, others again have been sacrificed. T h u s , for example, the Committee, while prohibiting political strikes, granted trade associations the right of defending, even by a stoppage of work, the economic interests of the groups represented. Moreover, accordi n g to t h e general opinion of t h e Committee, there was n o t h i n g to prevent the legal recognition of several t r a d e associations i n categories \ I t will be seen later for what reasons the Government deliberately p u t aside these two suggestions. T h e Committee had refused to (acknowledge t h a t t h e trade associations h a d a n y administrative, social or political attributes ; these it considered reserved for the corporate organisations. The Committee of E i g h t e e n considered in short that in order to realise completely the programme of State reform the group trade associations ought to merge into the national corporations, the organisation of which was provided for in the second draft Bill. Draft Bill on Corporate Organisation". — T h e idea and scope of t h e new corporate organisation are defined by the first section of the draft Bill in the following terms . In order to promote co-operation and a sense of unity between the different classes of citizens, to further by an equitable adjustment of interests the general prosperity of the nation and to secure sovereign control for the State over all the forces of the nation, there shall be created a national corporate organisation, which shall include all the citizens who are divided into different groups according to their economic activities, and which shall absorb all existing institutions. 1 2 3 Report, op. cit., Appendix, p. 96. Ibid., p. 97. Report of the Committee of Eighteen, Appendix, pp. 103 et seq. 40 FREEDOM OF ASSOCIATION Such being the general programme, the following are some of the details of the structure and working of the Corporations : All active citizens will, according to their occupations, belong to the following three groups : i. Liberal professions ; arts and crafts and public offices ; 2. Agriculture, including all the special branches of agricultural work : proprietors, lessors of landed property, tenants, " métayers ", technical'workers and farm labourers ; 3. Industries, commerce, urban or personal property, divided in turn into different groups according to the purpose of their activity. In each province will be set up three Chambers corresponding to these three groups and able to be federated into national or regional unions. Each Chamber is represented by an executive committee and a council 1 . The three provincial Chambers will constitute the Corporate College of the province, likewise with a committee and a council. The provincial colleges will elect representatives to the National Corporate Council, which in its turn is divided into three committees which can meet for the discussion of matters affecting all in common. The choice of the President elected by the Council must have the approval of the Government. The attributes of the corporate organisations were to be very far-reaching and to cover all the field of national production. They were to have at the same time disciplinary, regulatory, advisory and active administrative functions. As regards the disciplinary attributes, they had the power to settle by means of compulsory arbitration labour disputes affecting the public services ; to intervene at the request of the interested parties on both sides in disputes between employers and workers not affecting the public services ; to give, when requested by the public authorities, their opinion on collective disputes which have not been submitted to arbitration ; 1 The representatives in the provincial Chambers were tö be elected by the citizens enrolled in the vocational registers of the commune. According to the principles formulated by the Committee, the election regulations to be drawn up later were to provide for the number of representatives allowed to each Chamber and to each section of the Chamber and for the method of election so as to secure adequate representation of the various forms of national activity in proportion to their economic and social importance. ITALY 41 to ratify collective agreements concluded by legally recognised trade associations ; to superintend the working of the Provisional Courts and committees for private salaried employment. The authorities of the corporations will have, in the second place, the right of issuing regulations for disciplining the economic and social forces which they represent. In the exercise of this power and to secure the accomplishment of their task, they will be empowered to impose, subject to the approval of the administrative authorities, the payment of membership subscriptions in the respective groups. The organisation of the Corporations are bound, moreover, to give their opinion on all questions submitted to them by the authorities. They will finally be endowed with active administrative functions, the chief among them being : completion of the occupational registers and registration of recognised trade associations ; the drawing up of statistics ; defining the usages and customs of trade ; supervision of the enforcement of laws and regulations for the protection of labour ; co-ordination of the different forms of economic and occupational activity with a view to reducing the cost of production and encouraging specialisation and unification of undertakings ; obtaining employment for workers and taking measures to prevent forced unemployment ; vocational training ; provident and mutual-aid work ; organisation of assistance for emigration within the country or abroad ; organisation of saving and of the various forms of insurance and of health assistance ; assistance to families in case of death ; supervision and employment of minors ; institution of pension funds, etc. The adoption of the corporate regime will in addition entail profound changes in the system of political representation. Half of the deputies, henceforth, will be elected by the Corporate Colleges by voting on the second ballot system, by the members of the Council of the Chamber in charge at the moment of the election. The working of the corporate organisation will be placed under the control of the public authorities. The Government will have in particular the power of dissolving the corporate organisations in case of violation of the law and in the interests of public order. Those two proposals constitute the basis of existing trade union legislation. The Act of 3 April 1926 has adopted indeed most of the ideas of the Committee of Eighteen. Nevertheless the Govern- 42 FREEDOM OF ASSOCIATION ment has abandoned, in the meantime at any rate, the plans for an integral corporate organisation ; the reasons for this were partly practical, partly questions of principle. For practical reasons, because this organisation presupposed a detailed classification of the occupations of all citizens, which could not possibly be undertaken in a moment. On questions of principle, because the corporate organisation, which assumes a certain autonomy of action, ran contrary to the principle of the subordination of all interests to the supreme power of the State 1. Finally, and this is the fundamental reason, the corporate organisation as the Committee had conceived it placed all the active citizens of the nation on an equal footing, which meant a direct attack on the privileged position which in point of fact the Fascist trade union organisations had won for themselves. But in abandoning the plan of an integral corporate organisation, the Government did not on that account give up its idea of providing an integral solution for the problems raised by the relations between the various social classes. It stopped at an intermediate system, which consists in endowing the recognised association — whether of employers or of workers — with the social, economic and political attributes which the Committee had reserved for the corporations. This system offers the advantage of being capable of immediate realisation, of resting on a.state of affairs actually arrived at and conforming in all points to the doctrine of the State. It is based on the following ideas : i. 2. 3. 4. Ilegal recognition of a single trade association by category, invested with a monopoly of occupational representation. Privilege, of the recognised trade association to conclude collective contracts enforceable for all in that occupation. Institution of a compulsory labour tribunal for all collective disputes. Penal sanctions in case of stoppage of work and neglect to observe decisions given by the labour tribunal. This regulation, however, is not limited to the organisation of collective relations resulting from employment. It is extended, as will be seen later, to the social, economic, administrative and political spheres as well. Now the working of such a vast system is possible only if it rests on an organisation of trade associations solidly built 1 See " Corporative Organisation ", p. 101. 43 ITALY u p a n d ordered. T o this end t h e Regulations of i July 1926, p u t into effect b y t h e A c t of 3 April, provide for a double organisation : an organisation of trade associations b y category and by class with several grades : unitary associations, federations, confederations a n d general confederations, which separate a n d to some extent balance against each other the different factors of production ; a n d a corporate organisation which on the other hand unites the different factors of a single branch of national production. A l l this structure of trade associations is placed under t h e supervision of a special Ministry, t h e Ministry of Corporations. § 2. — Legal Organisation of Collective Relations resulting from Employment 1 ' L E G A L RECOGNITION OF T R A D E ASSOCIATIONS Fundamental Conditions of Legal Recognition T h e A c t of 3 April 1926, following t h e example of various foreign laws, makes legal recognition t h e basis of t h e regulation of trade a n d occupational associations. A n examination of t h e practice followed in this respect in most States shows that t h e law tends to g r a n t , under certain formal rather than substantive conditions, legal personality to associations simply from t h e fact of their existence and their social utility 2 . Often, indeed, legal personality is a consequence attached ex officio to t h e power to conclude collective agreements, limited, it is true, to this one r i g h t \ I n short, modern doctrine endows trade associations with legal competence for the sake of t h e better working of t h e association. Under t h e Italian system, on t h e contrary, in conformity with the proposal of t h e Committee of E i g h t e e n , t h e trade associations, doubtless in consideration of t h e important functions which they a r e called upon to fulfil, and t h e peculiar privileges granted them, are recognised chiefly in t h e interests of t h e State. T h a t explains w h y associations have t o fulfil a certain n u m b e r of preliminary conditions which have no equivalent in foreign legislation. Certain of these conditions are of a moral a n d political nature. Others refer to per1 Gazzetta Ufficiale, Act No. 563 ; INTERNATIONAL LABOUR OKKICK : Legislative Series, 1926 — It. 2. Gazzetta Ufficiale, Royal Decree No. 1,130 of 1 July 1926 ; Legislative Series, 1926 — It. 5. 2 Cf. Vol. II of this work : " France " and " Belgium ". 3 Cf. Vol. I l l : " Germauv " and " Austria ". 44 FREEDOM OF ASSOCIATION sons, to the number of members, and to the aims followed by the associations. These will be examined in turn. Moral and Political Competence. — T h e first section of t h e A c t makes legal recognition subject to the condition " that the directors of the association offer guarantees of moral character a n d sound patriotism ". Section 4 enumerates, among the conditions of admission of members, " good conduct from a national point of view ". Finally, section 7 declares that " the rules shall fix the body which is entrusted with disciplinary powers over the members, and t h e right to expel those who may have become unworthy on account of their moral or political conduct ". T h e s e provisions lend a peculiar character to Italian trade union regulations. T h e y prove that the law does not aim in the first place merely at defending the occupational or economic interests of its members, b u t follows chiefly a political or, it m i g h t be said, nationally ethical object. Now it seems certain t h a t these conditions of a moral and political n a t u r e must tend to exclude Catholic and Socialist organisations from the enjoyment of legal recognition. Such is, moreover, the intention of t h e declarations which the Minister of Justice made during the debate on the Bill before the Senate. We have no difficulty in declaring from now on that recognition will be granted only to Fascist organisations. Why ? For two reasons. Because the Fascist organisations fulfil, completely, the demands of the law ; that is to say, they are associations which propose to defend the interests of the producing classes, while remaining within the national sphere, that is to say, that they accept national discipline and the principle of class co-operation. The second reason is that the great Majority of organised workers are members of the Fascist associations. B u t does not this political and spiritual proscription, which attacks the old independent trade unions, r u n the risk of compromising t h e success of a law based essentially, as is often proclaimed, on the solidarity of all elements in the nation ? Even the mover of the law in the Senate seems to fear this. " Doubtless ", he cried, " t h e success of the law will depend to a great e x t e n t on the enlightened application of this principle." Indeed [he added] if in practice one were to close the doors to associations and to men who, although animated by patriotic feeling, were not members of definite political parties, it would mean depriving the law of its most favourable asset, namely, its emphasis on national solidarity and on justice between social classes, and would inevitably destroy all respect for the trade associations which are entrusted with the representation of the different classes of employers and workers '. 1 Ministerial Report of the Senate in Trade Union Reform in P- 153- Italy, IT/TLY 45 But the Minister of Justice does not share the apprehensions of the mover of the Bill in the Senate : In recognising the usefulness of the Fascist associations, we do not deliver the associations into the hands of one party, for to recognise, as the Fascist associations do, the principle of national solidarity, to recognise the great needs of production, to accept the principle of class co-operation is not a party programme ; it is the duty of all citizens l . I t is clear from those declarations of the Minister that the law feared t h a t the success of t h e T r a d e Associations Act m i g h t be endangered if the political parties were not able to exercise preliminary political supervision, not only over associations as moral persons, but also over all the members taken individually. T o this fundamental political condition there is added a second condition concerning the people w h o m a y become members of recognised associations. Who may be a Member of a Recognised Association ? — T h e Act of 3 April 1926 enumerates (sections 1 a n d 2) the associations which enjoy legal recognition. T h e s e are associations of employers and wage earners, whether intellectual or manual workers, a n d associations which recruit their adherents among the liberal professions a n d arts and crafts. T h e Regulations of 1 July 1926 (sections 1 and 2) enumerate the persons w h o may be members of recognised trade associations. Membership of trade associations is open — always on condition of good moral and political conduct from a national point of view — to Italian citizens of both classes who are over eighteen years of age 2 ; legally constituted commercial associations and other corporate bodies of Italian nationality ; foreigners residing in Italy for at least 1 »Speech of the Minister of Justice in Trade Union Reform in Italy, pp. 196 and 197. 3 Against refusal of admission to a legally recognised association, and against expulsion- or any other form of exclusion, there is always, as a last resort, not only the resource provided by the constitutions of the unitary associations, and associations of a higher rank, but recourse to the Minister of Corporations (section 9 of the Regulation). The preventive conditions of good moral and political conduct from the national point of view do not imply compulsory membership of the Fascist political party. It is well to note, indeed, that if the Fascist political party numbers 800,000-900,000 members, the membership of the legally recognised occupational associations has a total of more than 3,000,000. That of the associations of State employees reaches 500,000 members. 46 FREEDOM OF ASSOCIATION ten years. T h e latter cannot be appointed or elected to any office or administrative duty. I t is well to recall t h a t t h e original proposal submitted for discussion in the Chamber of Deputies granted legal recognition also to mixed associations of employers and workers. T h i s clause had given rise to heated discussions in the Chamber of Deputies, b u t in spite of the eloquent a r g u m e n t s of Mr. Cavazzoni in favour of those associations, which in his view are a more highly developed form of occupational organisation and m a r k the first step towards integral corporations, this clause was suppressed. Instead, the Act provides for the setting up of central liaison bodies between the associations of employers and those of wage earners. T h e functions and duties of these will be studied later. T h e enumeration of those w h o obtain rights under the law on trade association is restrictive. T h e Act excludes in the first place " associations which, without Government authority, may have contracted obligations of whatsoever n a t u r e , whether of discipline or of dependence, towards associations of an international character " (section 6 ) . T h i s prohibition which, in fact, attacks the associations of employers as well as the workers' associations, seems, up to the present at least, to be actually applied -only to recognised associations of workers. I t can seorcely be imagined, indeed, t h a t employers' organisations, which are always accompanied by associations for b u y i n g , selling f ud production, can give up their international relationships without being exposed to certain risks. I t is known, moreover, that the General Confederation of Industry has continued its relationships with foreign bodies of the same type, and that with the consent of the Government. It may, however, be asked if t h e same reasons, based upon the economic and social interdependence of States — and certain orators in the Chamber of Deputies and the Senate have maintained this — do not apply even more strongly to organisations of wage earners w h o are still more disposed to seek solidarity and assistance from t h e international organisations, b u t here again, the Government holds exactly the opposite opinion. I n opposition to the doctrine of international solidarity, the Minister of Justice supported t h e ideal of national solidarity : Senator Loria [he said] does not approve of the suspicion with which the law considers international organisations, and he maintains, on the contrary, that labour tends to be organised internationally, and that that will happen as a result of the solidarity uniting the working ITALY 47 classes of different countries. Now I hold exactly the apposite view Experience shows, more and more, that there is a close community of interest within the nation itself, and that this solidarity of the whole nation far exceeds the motives of solidarity which may unite the working classes of different nations 1. T h e Act excludes, also, from legal recognition " associations of officials a n d administrative agents of the State, the provinces, t h e communes, and public welfare institutions. T h e same rule applies to the personnel of the autonomous State railway undertakings ; of the postal, telegraph and telephone service ; of the Bank for Deposits and Loans ; of the Bank of Issue ; the banks of Naples and Sicily ; institutions and establishments of a public n a t u r e and savings banks " (section 3 of the Regulations) \ Along with those groups which may not claim legal recognition, there are others which, in conformity, be it noted, with the practice followed by previous Governments, are naturally deprived of the right of association. I t is laid down in section n that " associations shall, moreover, be forbidden, on pain of discharge, reduction of rank, dismissal, and other disciplinary sanctions, among officers, non-commissioned officers, and men of t h e A r m y , of the Navy, the Air Force a n d other armed forces of the State, of the provinces and of the communes, for judicial or administrative magistrates, for officials, employees a n d agents working for the Ministries of the Interior, of Foreign Affairs and of the Colonies ". By Special Decree this prohibition was extended to officials of the Ministry of Corporations. T h i s list, however, is not restrictive. T h e President of the Council took pains, indeed, to make it clear at a Session of the Chamber of Deputies on n December 1925 t h a t the Government, in virtue of t h e power of control conferred upon it by this Act, reserved to itself the right to extend this prohibition to other classes of officials, a n d particularly to professors in universities and intermediate schools \ Section 94 of the Regulations e x t e n d s this prohibition, also, to associations set up for the defence of alleged academic and vocational interests, a m o n g the students of educational institutions of 1 Speech of the Minister of Justice in Trade Union Reform in Italy, p. 197. 2 The special regime to which unrecognised associations are subject will be studied later. See " Legal Regulation of Associations of State Employees ", pp. 131 et seq. » Parliamentary Documents. Speech of the President of the Council, 11 Dec. 1925. Cf. Decree concerning the dismissal of professors in universities, and intermediate schools. See p. 133. 48 FREEDOM OF ASSOCIATION all kinds. T h e forming of associations of this type and membership of such associations, it adds, are considered as grave breaches of discipline, and punished by exclusion from all schools and all educational institutions in t h e kingdom. Wiiat Aims may Legally be Pursued by a Recognised Trade Association ? — Legal recognition is connected with a third series of conditions referring to the aims of the association. Section i , subsection (3), lays down : " Besides the defence of the economic and moral interests of the members, associations m a y propose to carry out, and may actually carry out, such work as m u t u a l aid, training and the moral and patriotic education of its members. " I t is well to add to those provisions t h e one contained in section 4, last subsection, which declares that " t h e rules may provide for the organisation of vocational schools, institutions for financial assistance, a n d for moral and patriotic education, as also for institutions aiming a t promoting in the country the progress and perfection of national production, education or art " *. T h e field of action of the trade associations laid down by those sections necessarily goes beyond the mere defence of occupational interests. T h e associations, institutions recognised b y general law, are t h u s being prepared for the work which had been reserved for the integral corporations in the proposal of the Committee of Eighteen. A study of the developments of the programme, merely touched upon here, but applied in the different spheres of economic, social and political activity, will be found later 2 . Conditions as to the Number of Members. — A final substantive condition which had to be satisfied by trade associations refers to the n u m b e r of members. Section 1, subsection 3, says : " Associations of employers and of workers may be legally recognised if, in the case of employers, those who voluntarily become members employ a t least one-tenth of the total number of wage earners employed in t h e undertakings of that branch of industry for which the association 1 It is necessary to distinguish among the industrial organisations those which, having a special or local character, are directly connected with trade associations, and those which, having a national and general character, such as national associations of co-operative societies, the National Association for Organising Workers' Leisure, the National Organisation for Maternity and Child Welfare Work, are placed directly under the supervision of the Minister of Corporations. 2 See " Part Played by Official Trade Unionism in Social, Economic and Political Life ", p. n o . ITALY. 49 is constituted, and existing in t h e area where t h e association exerts its activity ; in the case of associations of wage earners, if the wage earners w h o have voluntarily become m e m b e r s represent at least onetenth of the wage earners in the branch for which the association is constituted, and existing in the area where the association exerts its activity ". W h a t is the real aim of. this provision ? T h e preamble declares that the n u m b e r is large if one considers that it is an initial, minimum figure corresponding, moreover, to the percentage of the masses at present organised in Italy *, b u t important as t h e figure may appear of itself, and it is plain from t h e most recent trade union statistics that this legal minimum has actually been considerably exceeded, it seems, on the other hand, small if one considers that the recognised association in Italy is called upon to exercise real political and economic sovereignty over, the masses w h o are not organised. On t h e occasion of the discussion of this provision in Parliament, Senator Loria emphasised the paradoxical situation which m i g h t result, according to him, from the fact t h a t the law would give preference to the associations which had only one-tenth of t h e membership, while an association including over nine-tenths would not be recognised. Therefore a member of the Central Office of the Senate made the proposal to raise t h e legal percentage to a m i n i m u m of 25 per cent., b u t the legislature did not see its way to carry out this suggestion. O n the contrary, the President of the Council definitely claimed t h e right of control by the Fascist minorities. The Fascist Trade Associations [he said] are above all educational. They want a self-conscious minority of workers convinced of the necessity for national discipline. A minority, it will be objected. In the working class movement there has never been a question of anything else but minorities 2. T h e agreement arrived at between the Fascist T r a d e Unions and the General Confederation of Labour at the Vidoni Palace 3 had 1 Preamble, p. 6, No. 2. Speech of the Prime Minister in the Senate in Trade Union Reform in Italy, p. 204. Cf. article by Mr. ROSSONI in La Stirpe, Feb. 1927, " The Legal and Monopolistic Trade Union ". Mr. Rossoni declares, in effect, that the trade union recognised by the law is essentially a selected trade union, as opposed to a compulsory trade union. 3 See p. 31. 2 Freedom of Association 4 50 FREEDOM OF ASSOCIATION forestalled, indeed, the solution which has been legally ratified. There seems to be no doubt, either, that it was for the same reasons that the law abandoned the proposal for corporate organisation, which would have given all citizens without distinction of any kind access to trade associations and, as a result, a share in the regulation of labour. Formal Conditions of Legal Recognition The trade association which has satisfied these preliminary substantive conditions is free to apply for legal recognition. A request for recognition must be accompanied first of all by an account of the origin and the activities of the association since its foundation, as well as by a list of the names of members, and of the persons invested with offices in the association (section 14, subsection 1, of the Regulations). Thanks to this necessity, the authorities will be able to frustrate the attempts of the old independent trade unions which might wish to enjoy the benefits of this legislation. Besides this account of their origin, the associations must add to their request a copy of the rules, which must show the aims of the association, the territorial area in which it is operative, its principal seat, its connections, whether of dependence or of union with other associations, the conditions for the admission and resignation of members, the methods and the form in which the decisions of the competent organs of the association are arrived at with reference to the contributions provided for by section 5 of the Act of 3 April 1926, the composition, method of election and of appointment, as well as the competence of the managing and disciplinary organs, the reasons for exclusion from the association, the regulations for the administration of the income from subscriptions and the revenue, the proportion of the income devoted to necessary expenses (section 14 of the Regulations). It results from this section that in the Italian system, it is not a question merely of lodging the rules for purposes of publicity, as in the French system, for example, and in most of the laws in other countries on the same subject, but of a detailed, although indirect, control of their contents. The same formal conditions apply to the recognition of associations of the higher grade (federations and confederations) with the following conditions. To obtain recognition, associations of higher grade must present not only the rules and the report laid down in section 14, but also the list of all the associations of a lower grade and other ITALY Ol institutions constituted for the aims provided for in t h e last subsection of section 4 of the Act of 3 April 1926, which are affiliated with it, w i t h a certified copy of the membership certificate of the rules of each and a certificate from t h e Prefect of the province in which each of them is situated. I t must be clear from those documents that all the conditions prescribed by sections 1 and 2 of the Act of 3 April 1926 are fulfilled, except in the case of national associations where this is certified directly by the Minister of Corporations. Approval of the rules of t h e association of a higher grade carries with it approval of t h e list of all t h e associations of a lower grade and of all other affiliated associations and institutions. Later amendments made in t h e list are approved by Royal Decree. T h e Decree g r a n t i n g recognition to a trade association of a higher grade carries with it recognition of all t h e affiliated associations of the lower grade. It grants also recognition to other associations and other institutions constituted for the aims laid down in t h e last subsection of section 4 of the Act of 3 April 1926, which are affiliated with it. T h i s recognition confers on recognised associations legal personality (section 36 of t h e Regulations) 1 . T h e accomplishing of all these formalities, however, does n o t confer on associations any right to legal recognition, for t h e recognition of an association of whatever sort may, according to section 13 of the Regulations, be refused not only when t h e conditions laid down by t h e Act are not fulfilled, b u t also w h e n it seems inopportune for political, economic, or social reasons. Recognition m a y , moreover, be made subject to certain definite a m e n d m e n t s to be introduced in t h e constitution. T h e Government reserves for itself, therefore, in any case, t h e right of g r a n t i n g or not the privilege of legal recognition to trade associations. STATE CONTROL FOR RECOGNISED ASSOCIATIONS Subject to those substantive and formal conditions, subject to its being politically and socially opportune, legal recognition is granted to associations on the proposal of t h e competent Minister in 1 In virtue of the last subsection of section 36 of the Regulatitans, the Decrees confer legal recognition on national confederations, recognising at the same time the affiliated associations. FREEDOM OF ASSOCIATION 52 agreement with the Minister of the Interior after consulting the Council of State. But once the association has been recognised, it nevertheless remains during its later activity subject to the continual supervision of the authorities. T h i s supervision is, according to the mover of the Bill in the Chamber of Deputies, more severe than in any other country \ I t is exercised over all the activity of the association from the m o m e n t of its formation u n t i l its dissolution. I t covers at once its internal activities, supervision of the deliberations of the association and its financial administration. Working Internal Organisation of the and Management Association of the Association T h e administrative bodies of the association are placed first of all under the guardianship of the authorities. Every association, says section 7 of the Act, must have a president or secretary who manages it, represents it, and is responsible for its activity. T h e president or the secretary is appointed or elected in conformity with the methods laid down by the rules. Section 7, which foresees the double possibility of the election or of mere appointment of the officials of the associations, refers for the regulation of this point to the constitution of the association ; but t h e liberty the Act t h u s grants to associations carries with it n u m e r o u s reserves. I n the first place, it is known that the rules m u s t first of all be ratified b y the public authorities and t h a t every a m e n d m e n t of the association agreement must also obtain the approval of the representatives of authority. T h e Government is, therefore, in a position to intervene and prevent any modification of the procedure adopted for the election of representative bodies of the society. I t reserves to itself also the r i g h t of ratifying t h e choice made by the association. Section 7 declares indeed : The appointment or election of the presidents or secretaries of national, inter-regional, or regional associations shall remain null if 1 Report of the Parliamentary Committee, p. 6. " This Government supervision ", the mover adds, " is, moreover, a logical consequent of the powers with which recognised associations are invested by general law. The power of fixing a subscription even for non-members, and the power of drawing up contractual rules which are compulsory even for nonmembers. " vSee pp. 58, 62 et seq. ITALY 53 it is not approved by Royal Decree on the proposal of the competent Minister, in agreement with the Minister of the Interior. This approval may be revoked at any moment. In the same way, the appointment or election of the president or secretary of associations in provinces, districts, or communes shall remain null if it is not approved by the Decree of the competent Minister in agreement with the Minister of the Interior. On t h e other hand, the management committees by w h i c h the presidents and secretaries are assisted in carrying out their duties are chosen in conformity with the rules (section 8 ) . However, t h e competent Ministers, as is laid down by this same section 8, in agreement with t h e Minister of t h e . Interior, may dissolve t h e committees of management of the associations and concentrate the whole power in the hands of t h e president or of the secretary for a space of time not exceeding one year \ T h e Government, having made certain b y these measures t h a t only persons w h o enjoy its full confidence should preside over the destinies of the association, considered it could without danger devolve on t h e m part of its duties of supervision. Section 7 states t h a t the rules must determine " the body to which disciplinary power over t h e members is granted ". T h e s e organisations of t h e first grade are in their turn subject to the jurisdiction of the higher organisations of the regional and national federations, not only by virtue of t h e rules (section 6, subsection 2 ) , but also by virtue of a real delegation of authority. Section 8 says : In the case of associations affiliated to a federation or confederation, the Decree recognising the former and approving their rules, may lay down that supervision and discipline should in part or in whole be carried out by the federation or confederation. However, this delegation of power is not unlimited. Section 37. of the Regulations states that it may in time be revoked by means of a Royal Decree after consultation with the Council of State, and it adds that, notwithstanding the delegation, it is within t h e power of the Minister of Corporations to apply directly to associations subject to the control of a higher organisation for documents or information, and to institute directly enquiries and inspections whenever the requests made to the higher organisations may have remained fruitless. 1 Cf. CARLO COSTAMAGNA, op. cit., Title II, Chapter III, pp. 92-97. FREEDOM OF ASSOCIATION 54 All those provisions proye that the action of the Government remains the most important factor in the appointment of the governing bodies. B u t once the constitution of t h e association has been approved — and the Decrees recognising the principal confederations which have recently been issued have ratified at the same time without a m e n d m e n t , the accompanying rules ' — it acquires the force of a legal regulation in the strictest sense, completing the provisions of t h e statute. I t is well, therefore, to refer to the approved constitutions to find out the rules which actually cover t h e working of the association. By way of e x a m p l e 2 , a few details of the organisation of the General Confederation of Fascist T r a d e Unions will be given. T h e Confederation possesses t h e following organs : the congress, the president, the executive committee, the national directorate, and the national council. T h e national congress is made u p of t h e representatives of the provincial g r o u p associations appointed by the respective provincial congresses. T h e national congress meets every two years. I t s object is to examine the general work of the Confederation, to discuss questions of major importance concerning all t h e relations between different groups, to appoint the president and to approve the financial report and the report on the cultural activities of the Confederation. T h e president represents the Confederation in all manifestations of its activity. H e appoints the secretaries of the provincial offices of the Confederation and the secretaries of the national federations, and he chooses the representatives of the trade organisations in all 1 See Royal Decree, 26 Sept. 1926, No. 1,718 : " Legal Recognition of the National Confederation of Fascist Trade Associations. '.' Royal Decree, 26 Sept. 1926, No. 1,720 : " Legal Recognition of the General Fascist Confederation of Italian Industry. " Royal Decree, 7 Oct. 1926, No. 1,1803 : " Legal Recognition of the General Fascist Confederation of Traders. " Royal Decree, 7 Oct. 1926, No. 1,804 : " Legal Recognition of the National Fascist Federation of Agriculturists. " Royal Decree of 14 Oct. 1926 : " Legal Recognition of the National Fascist Federation of Transport, Maritime and Aerial Undertakings, etc. " 2 Cf. The constitutions of the other confederations attached to the Decree of Recognition reproduced almost word for word the same provisions. ITALY 55 the bodies and institutions in which provision is made for representation of workers. It is also the exclusive right of the president of a confederation to enter into relationships with the Powers of the State, with the central committees of the National Fascist Party, with the international organisations recognised by the State, and with all other authorities. The president also appoints the head of the technical and administrative offices of the Confederation. Finally, he supervises the newspaper of the Confederation. The executive committee and the national directorate have the duty of carrying into effect the decisions of the congress, to see that the programme of the association is carried out, to control the administration of the Confederation by appointing an administrative committee, and setting up definite rules for the administration of all the bodies of the Confederation, of appointing one of their members to replace the president in case of necessity, of summoning, in agreement with the president, the congress and the national council in conformity with the Rules set up by the constitution of the association. The national council is made up of the representatives of the provincial federations, the president, the members of the executive committee and of the directorate ; the secretaries of the provincial offices of the confederation are ex-officio members of the national council. It meets at least once per year when summoned by the president in agreement with the directorate. Its duty is to examine the general situation of the trade union movement and to solve problems of a general character. It is clear from this analysis of the constitutions of the Fascist trade associations that the president of the confederation has complete power in his own hands, but delegates part of it to the managing organs of the affiliated associations of lower grade. Appointed by the National Congress, he is, in fact, chosen by the Government, by whom he must have been invested before being allowed to exercise his powers. Administrative Control of the Activity of Trade Associations Government supervision is not limited to the regulations of the managing bodies and discipline of the internal working, but extends also to the other activities. To this end the Act sets up, first of all, a general supervision over the deliberations of the associations and a special supervision over the financial administration. 56 FREEDOM OF ASSOCIATION (a) General Administrative Supervision. — T h e associations are subject to the supervision either of the Minister or of the Prefect and the Provincial Administrative Council \ Section. 29 of t h e Regulations lays down, in fact, that the Prefect, in the case of associations whose activity covers only one province, and t h e Minister in the case of associations operating in two or m o r e provinces, may demand documents and information, and order inspections and enquiries to be m a d e into the working of t h e associations. T h e Minister of Corporations may at any time, on denunciation or by virtue of his office, annul t h e decisions of t h e governing bodies of legally recognised trade associations w h e n they are contrary to the laws or regulations, to the rules or essential aims of the associations. (b) Financial Supervision. — T h e financial supervision set u p b y the Act is particularly strict, doubtless because the resources of the association in view of their source and their ultimate object, are considered under the Italian system as forming a social fund rather t h a n a purely trade union patrimony. A s regards the source of income of the associations, it is well to point out first of all a peculiarity of the Italian Act which seems unique in t h e annals of t h e rights of trade association. Section 5 of the Act lays down definitely that legally recognised associations have t h e r i g h t of imposing on all employers, wage earners, artists, a n d persons exercisi n g a liberal profession w h o are represented b y them, whether •members or not of these associations, a contribution which in t h e case of employers shall not exceed t h e wage for one w o r k i n g day for each wage earner employed, and in the case of wage earners, artists, and persons exercising a liberal profession one w o r k i n g d a y ' s wage 2 . Contributions. — I n view of the great importance of the revenue t h u s collected by the association from all the wage earners and from all the employers, the Government had to be careful to regulate in all its details the method of collecting a n d fixing the contributions. 1 The Provincial Administrative Council is composed of the Prefect as President, of two Prefectural Councillors, and four members chosen every two years by the Provincial Economic Council. 2 A similar contribution had been provided for in the draft Bill put forward by the Committee of Eighteen on Corporate Organisation, but this levy did not cover all members of the profession except in so far as they were all compelled to join their respective corporations. ITALY 57 T h e discussions for determining the contributions, as is laid down in section 23 of the Regulations, must be approved by t h e Provincial Administrative Council in the case of associations operating within the area of one province, by the Minister of Corporations in t h e case of associations operating in two or more provinces. T h e Minister of Corporations himself fixes t h e rules for determining the contributions, even in cases where by reason of the nature of the work or the character of the undertaking it is not possible to fix them on a basis of a daily wage (section 24). T h i s compulsory contribution automatically applies to all wage earners, t h a n k s to very simple methods of collection. Section 5 s t a t e s that for the collection of contributions the provisions of the laws for the collection of taxes in t h e communes shall be applicable. T h e contributions of the workers shall be collected by means of a deduction from the wages a n d salaries, a n d paid into the fund of t h e association \ Finally, section 26 of the Regulations regulates as follows the employment of the funds thus collected. T h e collectors of taxes who are entrusted with gathering the contributions pay the total of the subscriptions into the special current account of the Prefecture in the section of t h e Royal T r e a s u r y of the province in question. T h e Prefect authorises the payment thereof to the unitaryassociation or to t h e associations of a higher grade from which t h e 1 A Decree promulgated on 24 Feb. 1927 fixed the form of declaration which each employer must make concerning the number, class, remuneration, etc., of the wage earners and salaried employees under him. It states also the total contribution which must be paid to associations of employers and of workers for the current year. The method of calculation of this contribution varies according to the occupation, industry, etc. The maximum total contribution due by employers represented by theNational Fascist Confederation of Traders is fixed at 42,800,000 lire, and that of employers represented by the National Fascist Confederation of undertakings for land transport and inland navigation at 6,400,000 lire. The Decree lays down that Provincial Committees and other authorities shall be set up to draw up lists of persons subject to payment of a contribution, to determine the wages of the employees of agricultural workers, etc., and to carry out the administrative functions attached to those operations. The incidental expenses for the working of these bodies will be borne equally by the employers and the workers' associations. (Industrial and Labour Information, Vol. X X I I , p. 30.) For further details, see the Decree of 24 Feb. 1927 on the collectionof trade union contributions. Cf. speech of Mr. Bottai in the Chamber of Deputies, 1 June 1927, on the system of collection of trade union. contributions. 58 FREEDOM OF ASSOCIATION former depends, in the proportion fixed for each of them by the Decree of the Minister of Corporations. In every case 10 per cent. of the sum collected is deducted by the State. Trade Union Expenses. — It has been seen that the occupational associations may, in addition to their purely occupational aims, pursue social and political aims. The problem of the employment of the funds of the society was, therefore, bound to occupy to a great extent the attention of the law. The Regulations, in fact, divided the expenses of legally recognised trade associations into compulsory expenses and optional expenses. Section 18 of the Regulations states that the following expenses are compulsory : those for the organisation of the association, for social and financial assistance, for moral and religious assistance, for national education, for vocational training. Compulsory also are the contributions to the National Institution for Workers' Leisure (Opera Nazionale del Dopolavoro), to the National Institution for Maternity and Child Welfare, to the National Balilla Institute (for young Fascists), and to the National Charitable Institution recognised by the Decree of the Minister for National Economy, dated 26 June 1925, in a proportion which shall be fixed by Decree of the Minister of Corporations after consultation with the legally recognised associations of a higher grade on which the association is dependent. Finally, it is also necessary to set up the fund provided for in section 5 of the Act destined to guarantee the fulfilment of the obligations assumed by the associations in virtue of collective agreements. The other expenses are optional. Besides those provisions concerning the subscriptions and the expenses of the association, certain aspects of the financial administration considered particularly important, are made subject to the approval either of the Provincial Administrative Council or of the Minister of Corporations. For example, the budgets, documents referring to changes in the patrimony, expenses which will burden the budget for more than five years, the regulations concerning the collection of contributions and payments charged to the Guarantee Fund for collective agreements (section 30 of the Regulations). Nothing could show more clearly how the recognised trade association is considered to be a public body than this treatment of the budget of the association as if it were the budget of a public institution. 59 ITALY Dissolution of Trade Associations T h e Act reserves to the State authorities the right either to dissolve the committee of m a n a g e m e n t or purely and simply to withdraw legal recognition from the associations. The competent Minister, in agreement with the Minister of the Interior [says section 8], may dissolve the committee of management of the associations and concentrate all power in the hands of the president or the secretary for a period not exceeding one year. In more serious cases he may even entrust the extraordinary management of the association to a commissioner appointed by himself. T h e . t e x t contents itself with asserting t h e right po'ssessed by political authorities to dissolve committees of management without specifying the cases in which such intervention is permissible. I n view of t h e silence, it must be admitted t h a t the intervention of the Minister is left entirely to his own discretion. I n fact, seeing it is a case of actions carried out d u r i n g t h e exercise of political power, they do not come under t h e administrative legal control of the Council of State. But t h e most serious sanction which can be incurred by a recognised association consists in the withdrawal by t h e authorities of legal recognition. When there are serious grounds [says section 9] and in any case when the conditions required by the Act for the granting of legal recognition cease to exist, such recognition may be revoked on the proposal of the competent Minister in agreement with the Minister of the Interior, after consultation with the Council of State. I t is, however, probable that t h e Government will not have recourse to this measure unless in cases of extreme necessity, for the withdrawal of legal competence would take away the whole real basis of vocational organisation. THE SINGLE T R A D E ASSOCIATION W I T H A MONOPOLY OF OCCUPATIONAL REPRESENTATION Italian law attaches to legal recognition a number of advantages and privileges such that the recognised association is in a position to exercise real sovereignty over all m e m b e r s of the occupation. I t arranges this absolute power of t h e official association over the mass of the workers who are not enrolled in it, b y the institution of the 6o FREEDOM OF ASSOCIATION single association for each group or occupation, invested with a monopoly of vocational representation. Legal recognition [says section 6] may be granted only to a single association for each group of employers, of wage earners, of artists, or of persons engaged in a liberal profession. Legal recognition for one territorial area and for the same groups of employers or of wage earners may be granted only to a single one of the federations or confederations referred to in the previous paragraph. Legally recognised associations [says section 5] shall be bodies corporate and shall represent in law all the employers, wage earners, salaried employees, artists, and persons engaged in a liberal profession, in the group for which these associations have been set up and within the territorial area where they carry out their activity, whether such persons are members or not. T h e privilege granted b y this section only takes on its true significance when one considers that the single trade association has the sole right of concluding collective contracts, of appearing before the labour tribunal, and of appointing representatives in all the councils and institutions in which such representation is provided for by the laws and regulations. T o this absolute monopoly in the economic and social sphere will be added in future the right, reserved exclusively for recognised associations, of appointing political representatives. T h i s privilege cannot be explained b y the principles of general law, for all legal theories on w h i c h such an explanation might be based (representation, proxy, m a n d a t e , delegation of management, covenanting for another) rest in t h e last resort on the free expression of the will of t h e interested parties. Also, to jusify the situation t h u s created, vocational and political arguments have for preference been b r o u g h t t o bear. T h e a u t h o r s of t h e Act begin b y invoking t h e principle of the unity of occupational interests, which has as a necessary corollary t h e u n i t y of trade associations. The unlimited freedom [declared the mover of the Bill in the Senate] to set up within a single occupation an indefinite number of associations with different or antagonistic aims is in opposition to the idea of the unity of vocational interests. Unlimited freedom for the associations leads to disintegration, and consequently to the impossibility of vocational representation. One association competes with another to the greater detriment of the collective body of workers, and if there is no public authority which can say which of the associations is the true representative of the workers, victory remains with the stronger association. As has been remarked in the course of the discussion in the Chamber of Deputies, freedom of association resulted in Italy, as elsewhere, in a multiplication of workers' organisations. Political parties divided all the workers into such numerous groups that they were weakened in ITALY 6l comparison with the employing classes which had never more than a single organisation '. I t is certain t h a t n u m e r o u s theoretical supporters of independent trade unionism, whatever be their views o n other subjects, consider unity of association on an occupational basis as the indispensable condition for the collective regulation of labour conditions. I t is their opinion indeed, that only in the occupational sphere do reasons of solidarity outweigh the reasons for divergence, which result from opposing political views. I t m a y , however, be asked whether the whole system of Italian t r a d e union legislation, which makes membership of recognised associations subject to preliminary conditions of a political and moral nature, does not form, an insurmountable obstacle to unity of trade unionism. Be t h a t as it may, non-recognised associations deprived of all occupational activity have become the upholders of a solution which would, in their opinion, have permitted of all the interests involved being considered. Between the two extreme conceptions [writes Mr. Buozzi, in substance] the classical one of liberty and equality amongst associations and that of the single association as held by the State, there are certainly other more just solutions which might be considered. . There was first of all the possibility of simple legal recognition of all trade organisations having a definite percentage of members. It will be recalled that with regard to this point, the Royal Decree of 29 October 1922, which granted only to registered associations the right of appointing vocational representatives to the public bodies according to a proportional system, constituted a valuable precedent in the history of Italian trade union legislation itself 2 . There had been also the idea of setting up compulsory associations or " integral " corporations such as had been imagined by the Committee of Eighteen, which implied compulsory membership, but also compulsory participation on the part of all members of different occupations in their respective corporations, and in the regulation of that occupation. But in adopting this solution [Mr. Buozzi adds] the Government would have had to grant to all a minimum right of control over the associations, over the funds at its disposal, and over the directors and officials 3 . T h u s it was political reasons which decided t h e legal solution. H e r e again, the agreement of the Vidoni Palace had been the necessary preliminary. Moreover, the Parliamentary Report does not hesitate to declare that the Act in this p a r t , as in all the rest, is inspired purely b y the theories of the Fascist State. 1 The Ministerial Report to the Senate in Trade Union Reform Italy, p. 150. 2 Cf. pp. 17 et seq. ' Battaglie sindacali, 16 May 1926. in 62 FREEDOM OF ASSOCIATION To grant legal recognition to ¡ncfn-Fascist trade associations [it declares] would have been in contradiction with the Fascist conception based upon a single disciplined hierarchy, contrary to all individual and collective atomism. Moreover, the fact that the association is the only one fits not only the new needs of the country but also the unitary conception, which demands the same political aim in all the spheres of political and social activity '. There is a single recognised association [the preamble says], just as there is a single commune, a single province, a single State. The multiplication of public institutions for the purpose of exercising identical public functions is a characteristic of periods of disintegration and anarchy. Only by going back to the Middle Ages can one find situations similar to that which the champions, not only of liberty but also of equality of trade association, wish to set up 2. However, no matter w h a t m a y have been t h e occupational or political reasons which inspired the law, the fact remains t h a t t h e recognition of a single trade association endowed with the monopoly of vocational representation, constitutes the basis for the regulation of labour relationships and of t h e organisation of the State. LEGAL REGULATION OF COLLECTIVE CONTRACTS OF EMPLOYMENT 3 T h e monopoly of occupational representation by a single association finds its most valuable application in t h e sphere of the regulation of collective contracts. T h e legal n a t u r e of t h e collective contract a s defined b y t h e legislation and judicial practice of different countries has been profoundly modified by this fact, both from t h e point of view of the contracting parties and t h a t of third parties. Competence to Conclude a Collective Agreement T h e recognised association possesses the exclusive right of concluding collective agreements. Doubts which might exist as to whether de facto associations were competent to conclude collective agreements under general law have been definitely set to rest by the arrival of the T r a d e Union Regulations. Section 47 states : " Every collective contract of employment concluded by associations not legally recognised shall be void. " T h e contract entered into by a recognised association must, under penalty of becoming void, be signed by the legal representatives 1 2 3 Parliamentary Report, p . 5. Preamble, p. 8. Cf. infra, Labour Charter, section IV, and sections X I to X X I I . 63 ITALY of the contracting associations or by persons w h o have been granted a special m a n d a t e . Nevertheless, the conclusion of the agreement is not left entirely to t h e initiative of associations of the first grade. By reason of t h e disciplinary organisation of Fascist trade unionism, no contract of employment can come into existence unless it has been previously authorised in conformity with the conditions laid down in their rules by the associations of a higher g r a d e . I n fact, t h e higher associations have reserved for themselves by their constitutions the right of supervision of t h e conclusion of contracts \ T h e central corporative organisations for their part can set up general rules relating to the conditions of work which have t h e value of contracts of employment, properly so called, always provided that each of t h e affiliated associations has given t h e m t h e authority to do so. By t h e laying down of these rules .the existing collective agreements between the affiliated associations are annulled and amended to such extent as they ¡may in whole or in part be incompatible w i t h t h e m . Finally, it results from these provisions t h a t t h e conclusion of collective agreements is, like all other cases in t h e trade union and vocational system, made subject t o directions issued by the higher t r a d e union bodies, which themselves are merely t h e mandatories of authority. Extension of the Collective Agreement to Third Parties T h e contractual incompetence of non-recognised associations had as a necessary corollary t h e subjection of all third parties to t h e conditions of the contracts entered into by the official associations. T h i s is what is laid down in section 10 : Collective labour agreements entered into by legally recognised associations of employers, wage earners, artists, and persons engaged in a liberal profession shall be compulsory for all employers, wage earners, artists, and persons engaged in a liberal profession of the class to which the collective agreement refers, and represented bj r the associations in conformity with section 5 2. 1 Cf. Article S of the constitution of the National Confederation of Fascist Trade Unions ; Article 37 of the constitution of the General Fascist Confederation of Italian Industry ; Article 17 of the constitution of the National Fascist Confederation of Traders ; Article 51 of the constitution of the National Fascist Confederation of Agriculturists, etc. Cf. section XI of the Labour Charter. 9 Section 5 ; cf. p . 60. 64 FREEDOM OF ASSOCIATION Section 48 of the Regulations defines as follows the field of application of the collective contract of employment : The collective contract shall contain the names of the undertaking or the undertakings or the classes of undertakings and of workers to which it refers, and the area within which it is in force. In default of such a specification, the collective contract shall be effective for all employers and workers legally represented by the contracting associations according to the provisions of section 5 of the Act of 3 April 1926. T h e L a b o u r Charter for its part, dealing with t h e same subject, states in section X I : Trade associations are obliged to regulate by means of a collective agreement the relations arising out of employment between the groups of employers and wage earners which they represent. The collective contract of employment is concluded between associations of the first grade, under the direction and supervision of the central organisations, and reserving to the association of a higher grade the right which it possesses of taking the place of the association of the first grade in the cases laid down by the Act and the rules. Similarly the rules set u p by central corporative bodies apply to all t h e workers and all t h e employers whom they represent. By these provisions, the law solves straight away the problem of the personal a n d occupational extension of the collective contract, a problem which has never ceased to occupy the attention of legislation and legal t h e o r y in all countries. Faced with the risk of depriving collective regulation of its power, the laws of other countries have in fact recognised the pre-eminence of this form of contract over individual contracts, whether b y extending the conditions of collective agreement to all members of the contracting associations or even with certain obligations to a certain n u m b e r of t h i r d persons completely outside the contract \ T h e principle of individual freedom of contract has therefore had to compromise to a certain extent with the principle of collective agreement. I t has seemed necessary to the law to reserve for itself the possibility in exceptional cases of m a k i n g an indifferent minority subject in its own interests t o the will of the majority; b u t whenever the law or a judge has restricted in this way the free expression of the individual will, h e has first of all surrounded himself with numerous precautions. H e has in particular ensured t h a t the collective agreement entered into by the 1 Cf. Vol. II of this work : " France ". 65 ITALY interested parties is of indubitable social utility, and t h a t this contract which is to be extended beyond its original sphere of application includes henceforth the great majority of the possible beneficiaries '. N o legislation on collective agreements, however, has dared to provide for the compulsory extension de jure of the collective contract to third parties ". On this further point t h e Italian Act brings in an important innovation. T h e collective agreement passes from the sphere of contractual law into the sphere of a special public law, for if the collective agreement still partakes of the nature of a contract at the moment of its conclusion — a n d the competence to conclude it is moreover reserved to a very limited number of persons — it becomes right from its formation a regulation compulsory for all. Besides, as will be clearer later on, w h e n the decision of the magistrate is given, in default of the actual presence of the parties concerned, it has the force of a collective contract, properly speaking, in the formation of which the interested parties will no longer have had any share. T h e advantages of the method which consists in proclaiming the validity of the collective contract erga omnes, axe. obvious. T h e y consist in the elimination of disloyal competition, whether on the labour market or on the market for commodities. But there are some possible defects : the field of action of unitary associations authorised to conclude collective contracts m a y cover one or more provinces, or the whole of the country, b u t it is presumable that most of the agreements concluded under the direct influence of t h e federations or confederations of workers will be of a national charaoter 3 . 1 Cf. Vol. I l l of this work : " Germany ". Compare the regulations for collective contracts in Italian law with the same regulations in the Russian Labour Code (sections 15 to 26 of the Russian Labour Code). There exists, however, between the two systems, a fundamental difference, for while the recognised association in Italy is a closed institution, the Russian vocational association (having the sole right as has the recognised association in Italy of concluding collective contracts which extend compulsorily to third parties) is open to all members of the occupation. 3 Cf. G. BOTTAI : " Trade Organisation in Italy under the Act and Regulations on Collective Relations in connection with Employment " (International Labour Review, Vol. XV, No. 6, p. 821). The author expresses in the following manner his views on the conclusion of collective 2 Freedom of Association 5 66 FREEDOM OF ASSOCIATION Even if reduced to the region or province, the sphere of application of the collective agreement will necessarily include undertakings whose economic and financial conditions are profoundly different. Then the collective agreement will be made between two associations which, it must be repeated, need to include only one-tenth of the interested parties, and this agreement will bind, nevertheless, all t h e employers and all the workers in that class and t h a t province. W h a t will happen in the case of u n d e r t a k i n g s for which the conditions officially laid down by the single ;association should prove itoo burdensome? I t is to be feared t h a t t h e y will b e driven to ignore t h e m in order not to succumb to the competition of more flourishing undertakings. T h e Committee of the Senate took upon itself to point out this possible danger to the Minister of Justice : The Central Bureau contents itself with expressing the opinion with reference to collective contracts which may be drawn up by the most important territorial associations such as regional, inter-regional and national associations, that these contracts, although valid for the whole area which they affect, must take into consideration, as regards wages, differences between places, in default of which the enforcement of these contracts over the whole area will1 very probably find itself faced with unsurmountable practical difficulties . Now, it is those effects of the collective contract which extend compulsorily to third parties, which explain the firm opposition of the Confederation of Medium and Small Scale I n d u s t r y to compulsory membership of the General Confederation of Industry which contracts : " A s regards the conclusion of collective contracts of employment, the central organisation has ample powers, which may take the form of requiring a contract to be submitted for the approval of the Confederation either before or after signature, the Confederation having the right to act instead of the primary association concerned. This tendency towards centralisation appears natural enough in the early stages of the establishment and functioning of the system. It is imperative that one of the most delicate attributes arising out of the function of a public body entrusted to the unions shall not be left to the mercy of the masses, who are liable to become unstable and irritable. Later on, when the system is functioning as a complete whole, the conclusion of collective contracts may well be entrusted to the primary associations, as indicated by the Labour Charter (section X I ) , which, however, still recognises the right of higher-grade associations to substitute themselves for those of primary grade." 1 Ministerial Report to the Senate in Trade Union Reform in Italy, P- 159- ITALY 67 represents chiefly the great industrialists. It is also the same consequences which form t h e basis of the difficulties met with in seeking to unite in one body, the General Confederation of Agriculture, the different classes of agriculturists, proprietors, lessors of landed property, métayers, just as they generally prove to be at the root of the difficulty met with in dividing the different elements of production over their respective organisations. I t will be seen later by w h a t means the regulations sought to arrange t h e various interests concerned, by means of a careful organisation based on a detailed classification of the factors of national production \ Conditions of Validity of Collective Contracts Most of t h e other provisions of the law : invalidity of derogations from collective agreements by individual contracts, t h e necessity for a written agreement, publicity, the duration and renewal of contracts, conform to international practice on collective contracts. I t will be sufficient to recall those briefly : Individual contracts oí employment entered into personally by employers and workers subject to a collective contract shall conform to the rules laid down by the latter. Every conflicting clause of an individual contract of employment, whether previous or subsequent to the collective contract, shall be legally replaced by the clauses of the collective agreement except in the case where it is more favourable to the workers (section 54 of the Regulations). Collective agreements of employment shall, in order to be valid, be drawn up in writing. They shall also, to remain valid, specify the period for which they are concluded (section 10, subsection 2). The collective contract when it comes to the end of the period for which it was made, shall be considered renewed for an equal period if it has not been denounced by one of the contracting parties within a period fixed by the contract or, in default of such period, two months before its expiry (section 53 of the Regulations). Collective contracts of employment shall be effective only if they are lodged with the competent prefecture and published in the Bulletin of official notices for the province in the case of associations in communes, arrondissements and provinces, or lodged with the Ministry of National Economy and published in the Gazetta Ufficiale in the case of regional, inter-regional or national associations (section 10, subsection 4). Collective contracts entered into by associations working in two or more provinces, shall be lodged not only with the Minister of National Economy but also with the Minister of Corporations (section 51 of the Regulations). I t is clear from this last provision that publicity is intended not only to inform interested parties, w h o are not members of the 1 See p. 92, " Organisation of Offical Trade Unionism ". 68 FREEDOM OF ASSOCIATION association, about the contents of the agreements arrived at, but also t o permit t h e Ministry of Corporations, the highest authority in trade union organisation, to exercise a general control over collective agreements. T h e publication of contracts which are void either on account of their content or their form, will be refused. However, an appeal may be made against t h e refusal of publication before t h e L a b o u r Magistrate, w h o gives h i s decision in the Chamber of Council after consultation with the Public Prosecutor by an explanatory decree. I n t h e same way as collective contracts, decisions given with regard t o collective labour disputes have no effect until they are lodged and published as laid down in the preceding Regulations. Sanctions of the Collective Contract On the other hand, t h e Act introduces several important innovations with regard to the sanctions of the collective contract. Responsibility for breach of collective contract, once established by law, falls at the same time both on individuals and associations. The individuals [says section io], whether employers or wage earners, guilty of breach of contractual agreements shall be civilly responsible both towards the emplo3 r ers' association and towards that of the wage earners which entered into the agreement. I t is well known that, according to the principles of general law, civil responsibility covers compensation for damage caused directly or indirectly, provided it can be proved. T h e person who benefits b y these Regulations cannot be other t h a n the person harmed by the violation or non-accomplishment of engagements legally undertaken. T h e Italian Act, on the contrary, substitutes first of all for the right of compensation which t h e individual w h o is harmed possesses, the association to which he belongs (whether he is a member or not) ; in the second place, the individual guilty of breach of the collective contract not only incurs responsibility towards the other contracting p a r t y , b u t also towards his own association which represents h i m . T h e s e provisions, an innovation of the legislation concerning collective contracts, can be explained only by the public character which the recognised trade association has in the Italian system. T h i s system ignores the rights of individuals, or at least, considers them only under the aspect of of the organised collective body. ITALY 69 Besides this individual responsibility, t h e Act provides also for the case of collective responsibility when t h e breach of contract is committed by the contracting association itself. The associations [says section 55 of the Regulations] shall be responsible for damages resulting from the non-accomplishment of obligations assumed by them in the contract. The association is also responsible for the acts of all those who are subject to it, whether members or not, if it has omitted to do everything in its power to.ensure observance of the contract. Finally, t h e association may lay down in the contract that it will be responsible in its own name as fidejussors for its observance by those w h o are subject to it (section 5 5 ) . T o ensure, in any case, the solvency of the association responsible for breaches of t h e contract of employment, at least one-tenth of the income provided by the compulsory contributions will be set aside to form a guarantee fund for the execution of obligations assumed by the associations. Precautions are, moreover, taken in case of the dissolution or t h e revocation of recognition of one of the contracting associations. I n this case, t h e social patrimony guarantees the fulfilm e n t of the obligations assumed for the whole period of the collective agreement and for the following year. Dissolution and revocation of recognition do not, moreover, influence the rights originating in the collective contract for all those for w h o m the contract was effective in terms of the Act. T o this double civil responsibility are added also penal sanctions which will be studied in connection with the working of the Labour T r i b u n a l '. 1 From July 1926, the date on which the Ministry of Corporations was set up, until 1 March 1927, 457 collective contracts were drawn up in industry, in conformity with the system instituted by the Act of 3 April 1926 ; 267 agreements regulate working relationships in general ; igo are agreements about wages. It appears, moreover, from a Circular of the Minister of the Interior, of 19 November 1920, that contracts drawn up under the old system shall continue in force during the whole period of their validity. Only collective agreements concluded after legal recognition and in terms of the Act of 3 April 1926 (as well as contracts formed previously but confirmed according to the new Act) will extend to third parties in virtue of section 5 of this Act. It is premature to pass a general judgment on the practical consequences of this legislation. •JO FREEDOM OF ASSOCIATION THE LA-BOUR TRIBUNAL All t h e previous Regulations which seek to control by t h e mediation of the official t r a d e association collective w o r k i n g relations had, b y t h e very n a t u r e of this system, to end in a L a b o u r T r i b u n a l . T h e State, whose p r i m a r y p a r t in t h e s e Regulations is already k n o w n , cannot indeed remain aloof from the enforcement of the principles laid down. By virtue of its position as supreme regulator of production — for working relations are determined in t h e last resort b y agents responsible t o the S t a t e — it could not leave the solution of labour disputes merely to the conciliation and arbitration bodies set u p by t h e interested parties themselves, but had to call them before its own T r i b u n a l \ The institution of State Tribunals [says the Report of the Senate] is in harmony with the fundamental idea of the Bill. Admitting, indeed, that the State forbids classes or groups of producers to defend their interests themselves, that, moreover, it considers that it should not remain an indifferent spectator in economic disputes, but that it ought, on the contrary, to exert its influence in the direction of conciliation and social justice between classes and groups of producers, it follows that it has the moral and political obligation to set up for such disputes, a permanent Tribunal which will be a direct representative of the State, and, in consequence, of the general interests of society 3 . The Act sets up straight away [the preamble, for its part, states] a Labour Tribunal. . . . Compulsory arbitration is only a form of State justice which has lapsed ; the arbitrator has less authority than the judge. He is elected by the parties concerned ; he represents them on the arbitration body. His opinion must of necessity be in the nature of an arrangement and a compromise which lessens his authority. . . . A sentence which is binding on the parties must come from an impartial body ; that is why we have felt it necessary to go beyond the intermediate and imperfect stage of arbitration to reach the more perfect and more exact form of real judicial decision which can be exercised only by an impartial judge, neither directty nor indirectly interested in the dispute 3. I t follows from these statements t h a t labour disputes are removed from the economic and private field into t h e field of public order. I n other words, the offence of breach of a contract of employment no longer affects chiefly the parties concerned but affects above all, the State itself, which henceforth will intervene officially. 1 Cf. Labour Charter, section V. Report of the Committee of the Senate, in Trade Union Reform Italy, p. 167. 3 Preamble, p. 9. 2 in 7* ITALY But as t h i s intervention of the State T r i b u n a l cannot fail to make a profound impression on economic and social life, it is well to analyse its chief aspects. Competence of Labour Tribunals Section 13, first version of the Bill, limited t h e competence of the Court of Appeal acting as a Labour T r i b u n a l to all disputes connected with collective contracts in force and disputes about the laying down of fresh conditions between agricultural employers and workers, or between public or public utility undertakings and their personnel. I n the case of a dispute over the establishment of new conditions of labour between other groups of the employers a n d workers (industry) the jurisdiction of the Court of Appeal was only optional. T o establish it the consent of both parties was necessary. Section 13 of the Act in its present form, however, extends the competence of t h e T r i b u n a l to all disputes without exception. T h i s •is a point of fundamental importance in the Act, and one which has aroused heated controversy in Parliament. I t may therefore be useful to give an account of the manner of its adoption and of the debates which led to this result. T h e theory of a compulsory L a b o u r Tribunal for disputes over the institution of a collective agreement in industry also had found a supporter in the President of the Fascist Corporations '. T h e industrialists, on the contrary, through Mr. Beimi, President of the General Confederation of I n d u s t r y , at first declared themselves entirely opposed to the extension of the Labour T r i b u n a l to t h e fixing of the clauses of collective contracts in industry. Mr. Benni stated particularly : It is absolutely impossible for the Labour Tribunal to take into account the complex and essentially changeable conditions of industry. That is why it is impossible to rely ou its arbitration for the solution of labour disputes. I consider that the extension of the competence of the tribunal to industry would pass sentence of death on Italian industry 2. But this was not the opinion of the Leader of the Government. W h e n he took part in the discussion on section 13, he pronounced in 1 Parliamentary Documents, speech of Mr. Rossoni, 9 Dec. 1925. - Ibid., speech of Mr. Bermi, 9 Dec. 1925. 72 FREEDOM OF ASSOCIATION favour of t h e universal competence of the Labour T r i b u n a l , and won t h e support of his adversaries of the previous day. H e r e are the principal points in his argument : Our trade unionism [he said, first of all] differs from " Red " trade unionism for one fundamental reason, namely, it does not seek to strike at the right of property. When an employer finds himself faced with a " R e d " trade union, he has before him a trade union fighting for the increase of wages merely as a side issue of its ultimate aim, which lis to overthrow existing conditions, that is to say, to abolish the right of property. Much could be said about the definition of the right of property, but this is not the place to discuss it. Our trade unionism is a selective trade unionism wishing to improve the conditions of the categories and classes grouped under its banners, and it has no finality about it. Our trade unionism applies the principle of class co-operation at different periods in the process of production. It applies it first of all in connection with the production of wealth. It applies it again when it is a question of getting due value out of this iwealth. It cannot continue to apply the principle of co-operation in the third case when it is a question of sharing out the gains obtained, but even then, if good faith exists on both sides, the principles of class co-operation shows itself again in the form of a compromise which restores the equilibrium which may have been disturbed for a moment. H a v i n g reassured the opponents of the reform by this preliminary declaration, he attacked the root of t h e matter as follows : This law [he said] which is really fundamental, considers two systems : the industrial system and the agrarian system. According to this conception, the two systems proceed along parallel lines. At a certain point the agrarian system comes to the compulsory Tribunal, while the economic system stops at the optional stage. Now, it seems to me, that such a law is imperfect. It must be compulsory or optional for both. Either the industrial system must take a step forward, or the agricultural system must take a step back. I believe [he added] that it is absolutely necessary to gain the unitary conception of the national economic svstein. But apart from those technical reasons based on t h e equality of conditions in agriculture and in industry, the President of the Council appealed to the fundamental argument, the reason of State interest, which, according to him, comes above all other considerations: I have come to this conclusion, starting from the point of view which is fundamental. Whenever I wish to examine the Italian situation, I consider the Italian nation as being in a state of perniauent war. I have already said, and I repeat that the next five or ten years will be decisive for the fate of our people. They will be decisive because the international struggle has begun and will spread more and more. We, who have arrived rather late on the stage of the world, are not allowed to dissipate our energies. Just as during the war at the Front, disputes were not permitted in factories, conciliation bodies having been established to ITALY 73 settle them and the results having proved satisfactory (for there was never any suspension of work), so also, to-day, by means of those organisations we shall be able to raise national productive power to a maximum. . . . I beg you, therefore, to consider, in order to give the vote on this section its full value, that this law has its origin in a definite political and moral atmosphere and is the product of a definite system. There is no danger so long as this system remains invincible and so long as the moral atmosphere which the nation breathes is not altered. As far as human foresight can judge, this political system and this atmosphere cannot be changed. This certainty justifies our confidence in the present law *. T h e r e could be n o clearer statement of the subjection of every interest, even the most vital, to the political and spiritual control of t h e authorities. T h i s intervention produced an immediate change of front on t h e part of the industrialists. Mr. Benni declared : After the statements of the President of the Council, I obey with enthusiasm and with that sense of duty which the Italian industrial class has always shown to the Government 2 . T h e new section 13 established the result of these discussions in the following formula : All disputes referring to the arrangement of collective working relationships whether they concern the enforcement of collective contracts and other existing rules s , or whether they aim at obtaining new conditions of work, shall come within4 the competence of the Courts of Apfieal acting as Labour Tribunals . T h e principle of the universal competence of t h e Labour Tribunal having t h u s been gained completely, how shall it be p u t into practice ? 1 Speech of the President of the Council in the Chamber of Deputies in Trade Union Reform in Italy, p. n o . 2 Parliamentary Documents, speech of Mr. Benni, n Dec. 1925. s The Act, by the expression " existing rules " refers to regulations in factories and to all other provisions concerning conditions of work, rights and obligations of the worker, internal discipline, etc., in short, all matters not directly controlled by the collective contract. Cf. infra, " The National Labour Charter ". 4 As regards its competence, ratione loci, the principles of general law apply. The action is brought before the Court of Appeal within whose jurisdiction the labour relations to which the litigation refers are enforced. If the labour relationships to which the litigation refers are in force within the jurisdiction of two or more Courts of Appeal, the action is brought before the Court of Appeal at Rome (section 72 of the Regulations). 74 FREEDOM OF ASSOCIATION In particular, what was to be the organic constitution of the Tribunal ? Its method of work, the procedure to be followed, according to what criteria was judgment to be passed, and what sanction was to be attached to its judgments? The Act of 3 April suggests in principle certain solutions which are defined into the most minute details by the Regulations of 1 July. The Working of the Labour Tribunal Composition of the Labour Tribunal. — The Labour Tribunal is composed of three elements : three magistrates, of whom one is the president of a section ; two councillors of the Court of Appeal ; two laymen who are experts in industrial and labour problems, and the Public Prosecutor. The only concession made by the Act to the principle of autonomous regulation of labour disputes consists in co-opting along with the general law judges two expert laymen chosen in the following manuer. For each Court of Appeal a register is drawn up of laymen who are experts in industrial and labour problems. These experts are divided into groups according to the different classes of undertakings existing within the jurisdiction of the Court of Appeal, the list being revised every two years (section 15 of the Act). The proposals for the registration of citizens called upon to undertake the duties of expert advisers are drawn up for each province by the provincial economic councils. These proposals are transmitted first of all to the competent central corporative bodies, who may introduce amendments or additions, and then to the President of the Court of Appeal. On receipt of the proposals and after consultation with the President of the Labour Tribunal, the First President of the Court of Appeal draws up the general list of citizens called upon to carry out the duties of expert advisers. The choice of expert advisers called upon to act on "the bench is made in each case by the President of the Labour Tribunal. However the latter may at any time ask the First President of the Court of Appeal to appoint to act upon this body one or more experts not on the special list of persons for that section (seotions 61 to 67 of the ITALY 75 Regulations) '. I t is clear from all those provisions that the associations concerned have no direct part in the appointment of the expert judges 2 . Legal Action. — T h e right of bringing an action and of representi n g in court all t h e employers and all t h e workers of one class or occupation is reserved solely for recognised associations. T h e action, as is stated in section 68 of the Regulations, is brought by legally recognised associations of the first grade and of higher grade. I n any case, a trade association of higher grade can intervene in an action brought against a lower grade association, and vice versa. An action may also be brought by the Public Prosecutor w h e n it seems necessary in the public interest. I n such a case, the association concerned m a y intervene in the action. T h e associations are represented in court b y their president or secretary or by a special attorney. I n the case of disputes regarding the enforcement of the collective contract and other existing rules, legal action is taken against the legally recognised association, which represents t h e employers and workers w h o are subject to these rules and obliged to carry t h e m out. A n action concerning disputes arising from t h e fixing of new conditions of work is brought against t h e legally recognised association representing the employers and workers for w h o m the new conditions of work are proposed (sections 68-72 of t h e Regulations). T h e monopoly of legal representation granted b y these provisions to the recognised association is in fact only a corollary of the general occupational and political monopoly established by section 5 s . It comes practically to this conclusion : in the place and stead of individuals directly harmed and often not members of the recognised association, the latter alone has t h e right to appeal to the court. On the 1 It appears from a Circular which the Minister of Corporations sent at the end of May to the competent authorities that the Labour Tribunal has in fact been set up and may from that date exercise its functions in any of the courts of appeal of the Kingdom (cf. Industrial and Labour Information, Vol. X X I I , p. 322). 2 At the inauguration of the legal year (1927) Mr. Bottai, UnderSecretary of State in the Ministry of Corporations, declared in substance that " the expert advisers for the Labour Tribunal must be State technical authorities, that is to say, having no interest in the labour disputes and drawing their authority solely from the State. " s See p. 60. 76 FREEDOM OF ASSOCIATION other hand, decisions given against associations take effect on all members of the occupation which they represent. It is only when no recognised association exists — a possibility which doubtless will never actually occur — that a special trustee (curatore) is appointed by the president of the court of appeal, and that the voluntary intervention of the interested parties is permitted 2. The Regulations also lay down in detail the methods of procedure to be followed before the Labour Tribunal. A summary of them will suffice. The parties, that is to say, the representatives of the recognised associations, may appear in court personally, or by means of a legal representative, and may have the help of counsel and advisers; but the judge can limit the number of the latter and can at any point demand personal appearance in court. The petition is sent directly to the president of the Labour Tribunal, who within twenty-four hours determines by an order the date of the hearing and the period allowed for producing the defence. The petition and the order are communicated to the interested parties and published in the bulletin of legal notices for the province or in the official journal. The president must always try to effect a reconciliation. The bench arranges the necessary preliminary proceedings. Once these proceedings are over, the decision must be arrived at within a space of ten days and given in a judgment in which the reasons are clearly stated. All decisions are arrived at in the Council Chamber and the text publicly promulgated. The Criteria for the Decision. — A review of the different systems for the solution of disputes by conciliation or arbitration in other countries shows that everywhere, and for the same technical reasons, the exclusive competence of the general law courts has been ruled out. The author of the preamble, in opposition to international opinion on this point, hopes to gain certain technical advantages by the intervention of the general law judge. After recalling similar precedents in Italian legislation, which grants the judge in particular the right of determining fair prices for goods (Commercial Code, sections 38-60), or which calls upon him to regulate certain patrimonial relationships between individuals (Civil Code, sections 1 The competence for individual labour disputes arising out of the interpretation or the enforcement of collective contracts belongs to the ordinary court which acts along with the assessors appointed by the associations concerned (cf. section X, Labour Charter). ITALY 77 544-678), t h e author concludes t h a t experience has shown in these cases t h a t the magistrate carries out his task splendidly, despite t h e variety and difficulty of the subjects on which he has to give his decisions. " E v e r y day " h e adds, " our courts settle questions of civil responsibility and of competence, etc. . . . questions which demand even wider technical knowledge than is required for deciding the capacity of an industry to pay certain wages corresponding to a certain amount of work performed " \ But quite apart from the independence and t h e legal technique of the labour magistrate, there is nevertheless a fundamental difference between his new t a s k and those which u n d e r the constitution devolved upon the general law judge. I t is well k n o w n indeed that the general law judge, when giving his decision on disputes submitted to him, does so according to formal rules, or at least according to precise principles illustrated by established legal practice. But w h a t criterion can guide him in settling labour disputes? Is it a case of interpreting the existing collective contracts ? T h e n t h e judge will certainly find a basis for his decision in the clauses of the agreement or in the general legislation concerning contracts 2 . Again, it must be remembered that the collective contract, especially in certain particular occupations, is a very complex legal i n s t r u m e n t regulating at the same time such diverse problems as : h o u r s of work, p a y m e n t by results, family allowances, cost-of-living allowances, p a y m e n t during holidays, etc., and affecting at one t i m e single individuals, at another t i m e whole groups or categories of workers \ But on what will the decision be based in the case of establishing new conditions? I n this case there is no established legal regulation, no existing legal practice t o guide the judge in his decision. I n such a possibility his d u t y does not seem to be limited to the interpretation of existing laws, b u t to involve creating on the spot a new law on a subject, which u p to the present it has been t h o u g h t impossible to mould into rigid legal formulae. I t is t r u e that t h e law has taken care to lay down a certain n u m b e r of principles to guide the action of the judge : " T h e court of appeal 1 Preamble, p. 10. Compulsory arbitration is generally limited to the interpretation of existing contracts : " justiciable disputes ". 5 The Labour Charter lays down on this point certain principles to which the contracting parties must conform. See below, particularly section XII : " Fixing of Just Wages ". 2 78 FREEDOM OF ASSOCIATION acting as a Labour Tribunal shall, when d r a w i n g u p new conditions of employment base its j u d g m e n t s on t h e principles of equity seeking t o harmonise the interests of the employers and of t h e workers and in every case protecting the higher interests of industry " (section 16). T h e s e instructions are indeed wide enough to leave the judge great freedom of interpretation. T h e manner in which the labour magistrate m a y carry out t h e task t h u s entrusted to him will without doubt be decisive for the future of the Act. I t is therefore necessary to examine it with the greatest care, in order to see the consequences arising from it. T h e first rule for decisions indicated by section 16 is the criterion of equity. T h e decision, according to the author of the law, must not be a compromise, b u t must state what is just. I t follows that the judge must, as a preliminary, gather all useful elements of information. H e must in particular know all the documents, industrial and commercial certificates, balances, account books, etc., which could possibly explain the situation either of a special undertaking or of the whole of a branch of industry. B u t this necessity for gathering detailed information must, in the nature of things, end in a real control of industrial undertakings by the State t h r o u g h the- Labour T r i b u n a l . N o w , it is doubtless this result counted upon by the head of the Fascist workers' trade unions which explains the enthusiastic support he gave to the idea of the extension of the Labour T r i b u n a l . I t is this result also which made the representative of the General Confederation of I n d u s t r y state that arbitration would mean the ruin of industry \ I n fact, the regulations of i July 1926 set u p a certain method of supervision of undertakings. T h e Tribunal, as is stated in section S i , orders, when expedient, ex officio, the necessary preliminary proceedings, including the production of documents. However, investigations for the purpose of collecting evidence as to the economic strength of undertakings extend only to certificates and documents supplied by the 1 Mr. Buozzi points out in his commentary on the Act that this control would have to be exercised continuously. According to him, it is impossible to restrict oneself to an estimate of the economic capacity of an undertaking at a given moment. This can only be estimated for a period of several years. Equity would demand that part of the profits should compulsorily be put aside as a reserve in order to make it possible to grant wages corresponding to the cost of living in years of depression. (Battagglie Sindacali, 1 June 1926.) 79 ITALY parties or published, to the interrogation of the parties, to visits to t h e places concerned and to the evidence of expert laymen not connected with t h e u n d e r t a k i n g (section 83 of the Regulations). E v e n although t h u s limited, it is nevertheless true t h a t t h e principle of supervision is henceforth incorporated in t h e law. But the problem has also another aspect. I t has been seen that in carrying out his task the magistrate is obliged to u n d e r t a k e preparatory technical a n d economic research of a very varied n a t u r e . Now it is presumable that he will find it impossible to keep in mind t h e innumerable special casés, and t h a t on this account h i s decision will be of a very general n a t u r e . T h i s fact became particularly clear d u r i n g t h e discussion, at a meeting of the F r e n c h National Association for t h e L,egal Protection of W o r k e r s , of the Bill for the amicable settlement of disputes on labour conditions, introduced by M r . Millerand. D u r i n g the discussion of this Bill, Mr. Nogaro t h u s defined the scope of compulsory arbitration : It is often imagined that arbitration puts an end to disputes between employers and employed within a limited group. In reality, when an arbitration court has imposed a certain decision on certain employers and certain workers, then all employers and all workers, that is to say, a whole corporation or a whole region, will necessarily be subject to the same conditions or to similar ones. If arbitration councils do not, as in the Austrian courts, give corporative decisions, that is to say, decisions applicable to a whole corporation, they will be called upon to do so by the demands of the workers. Hence it is necessary to consider the problem of arbitration as a whole. When compulsory arbitration is set up it implies regional corporative control, at least for each industry. This is inevitable. It is not an objection, but simply the way in which the problem must be looked at. The position is this : the arbitrators, whoever they may be, must impose the same conditions on producers who are not working under the same conditions ; they will have to take into account local differences and all other differences which make competition unequal. They must take account of internal and external competition. This is a practical problem which must be faced in compulsory arbitration. The solution of a dispute cannot be more or less individual ; it implies regional and even national corporative control. Mr. Millerand himself admitted t h e t r u t h of this r e m a r k : You are perfectly right in saying that when a regulation is imposed by arbitration on one establishment, it will inevitably extend to the whole region '. 1 See MILLERAND : " La grève et Vorganisation and 36. ouvrière ", pp. 35 8o FREEDOM OF ASSOCIATION T h i s consequence will be all the more inevitable in the Italian system. T h e conclusion of collective contracts extending compulsorily to third parties, legal action reserved to recognised associations, which will certainly mean p u t t i n g aside purely individual or local differences, all those new factors peculiar to the Italian system will tend to give t h e magistrate's decisions a general corporative character, and t h u s to accelerate the spread of uniformity of working conditions and t h e concentration of industry. Besides the criterion of equity, section 16 introduces another factor in helping the labour magistrate to arrive at his decision : the necessity of harmonising t h e interests of the employers and the workers and of safeguarding in every case the higher interests of industry. T h i s provision arouses a certain hesitation both on the part of the employer and on t h e part of the worker. T h e employer fears t h e political pressure which the masses, having numbers on their side, m a y be able to exercise on the Labour T r i b u n a l ; the workers fear that t h e Tribunal may be tempted to see in the personal interests of the employer the higher interests of industry ; for, they maintain, if it is possible to lower wages until they have reached the minimum for existence, their improvement will be limited by the possibilities of economic expansion of the industries, which is the same t h i n g as the interest of the State. Be t h a t as it may, the interests of t h e respective classes must bow before the higher interests of industry and in face of this necessity the idea of State justice is no longer more t h a n a relative one. This justice [the Minister of Justice states] will have only one limit : the higher interests of the nation, which are, from an economic point of view, the higher interests of industry l . Finally, it is the element of public interest which predominates in deciding the judgment of the magistrate 2 . T h i s interest is represented by the Public Prosecutor who takes p a r t ex officio in the proceedings and is obliged to state his conclu- 1 Speech of the Minister of Justice in Trade Union Reform in Italy, pp. 193 and 194. 2 " There is indeed ", the preamble states, " an element of public interest which must influence the magistrate's decision, because a dispute between employers and workers affects not only the parties involved but the whole body of society which is interested in the state of industry. " (Preamble, p. 31.) ITALY Si sions. I t is therefore by t h e intervention of t h e Public Prosecutor that t h e State exercises its direct influence on the Labour T r i b u n a l . T h e reason is t h a t the State wishes to be present d u r i n g the last and most important phase of the arrangement of collective relations, just as it has been present in all t h e previous phases. But w h a t is the objective value of the formula : " safeguarding the higher interests of industry " ? I t is indeed well k n o w n t h a t the interests of industry are very far from being the same in every case. One need only consider the antagonism between export and import industries, the struggles which take place between free traders and protectionists to obtain from the State the tariff system best suited to their own interests. Will it then be part of the duty of the labour magistrate t o discriminate between the fundamental and secondary interests of national i n d u s t r y ? Will he have to set u p a scale of economic values to judge if certain industries must be condemned because t h e y hinder the general economic progress, and favour certain others which are solidly rooted in the national economic system? I t is certain that the wording of the law gives the authorities every possibility for intervention, not only as regards individual undertakings, but also for the system in general. T h e Leader of the Government _has moreover pointed this out with considerable emphasis during hi? speech in the Senate : We are now going to supervise [he said] all the forces of industry, of agriculture, oí the banks and of labour. The task is difficult,! but experience helps us and makes us confident in the happy issue of this attempt. . . . All that cannot be done in one day, but the important thing is that it should/ be in existence and should be enforced '. Effects of the Decision and Penal Sanctions. — J u d g m e n t s passed with regard to collective labour relations and fixing new conditions of employment have all the effects of a collective contract. E v e r y judgment referring to individual litigation which infringes a collective contract of employment or contradicts a judgment previously given with reference to collective labour relations may be challenged by any of the parties or by the Public Prosecutor with a view to its being annulled. 1 Cf. Speech of the Minister for National Economy, Mr. Belluzzo, on 12 March, in the Chamber of Deputies. Cf. also p. 125, " Part Played in Economic Life ". Freedom of Association 82 FREEDOM OF ASSOCIATION J u d g m e n t s or orders are subject to annulment, revision and reversal b y the Court of Cassation. Revision may be determined by one of the parties or b y the prosecution in the case of any important change in the state of affairs. But if this demand is rejected, the p a r t y p u t t i n g it forward is subject to a fine not exceeding 10,000 lire. A petition for appeal to the Court of Cassation, whether made by one of the parties or by t h e Public Prosecutor may be sent in within a period of a fortnight. If the decision is revised, t h e Labour T r i b u n a l , to which the matter is sent back, must in every case confirm the decision of the Court of Cassation on the point of law on which t h e latter pronounced. On the other hand, section 22 of the Act imposes severe sanctions for non-observance or violation of the decisions of the Labour Tribunal : Without prejudice to the enforcement of the principles of ordinary law on civil responsibility for the carrying out or not of court decisions, employers and wage earners who refuse to accept the decisions of the Labour Tribunal shall be punished by imprisonment of from one month to one year and to a fine of 100 to 5,000 lire. Officials of legally recognised associations who refuse to accept decisions of the Labour Tribunal shall be punished by imprisonment of from six months to two years and subject to a fine of 2,000 to 10,000 lire, and shall, in addition, be removed from their positions. When refusal to carry out the decisions of the labour magistrate is accompanied by a lock-out or strike provoked by t h e guilty parties, then the provisions of the Penal Code concerning the concurrence of crimes and penalties shall apply. 1 T h e law, anxious to ensure respect for decisions given by the Labour T r i b u n a l , however severe these might appear to be, considers it desirable to increase the severity of the regulations concerning distraint on goods by ordinary law by adding penal sanctions even to t h e extent of bodily constraint. The Compulsory Attempt at Conciliation. — D u r i n g t h e discus-- sion in April of sections 16 and 17, Mr. Olivetti, Secretary of the General Confederation of Industry, supported an amendment which sought to make judicial action subject to a preliminary attempt at conciliation, which was adopted in the following form : When associations of employers and of wage earners belong to a confederation, or when associations of employers and of wage earners are concerned for which central liaison bodies have been set tip, legal ITALY 83 action is permissible only when it is proved that the federation or confederation or control liaison body (the corporation) has tried to settle the dispute amicably and that this attempt has failed 1. T h i s addition to the t e x t satisfies a double need. On t h e one hand, it seeks to m a k e legal action on the part of an association of a primary grade subject to t h e control of associations of a higher grade. On t h e other hand, it seeks to settle collective disputes amicably without setting in motion the complex and dangerous organism of the Labour T r i b u n a l . If this attempt were to succeed to the full, t h e Labour T r i b u n a l would be reduced to the rôle of intimidation or t o being a mere interpreter of collective contracts. T H E O F F E N C E O F S T R I K E S AND L O C K - O U T S I t has been seen that the draft Bill drawn up by the Committee of Eighteen, while prohibiting political strikes and lock-outs, admitted stoppages of work to defend the economic interests of the groups represented 2 . Similarly, the first version of the Bill admitted ' implicitly strikes and lock-outs in all cases where the Labour T r i b u n a l was not compulsory by reason of the Act or by consent of both parties \ But as a result of the a m e n d m e n t s t o section 13, strikes and lock-outs are now completely prohibited. T h u s the strike has once again been made an offence as has also mere combination. I n t h e system set up by the Italian Act the strike and lock-out do not imply simply the (civil) offence of breach of t h e contract of employment, b u t constitute offences against the administration of justice and against the social body represented by the State. I n other words, 1 Cf. injra, Labour Charter, section X. Section X of the Labour, Charter states that " in collective labour disputes judicial action may not be taken unless the corporative body has made a prior attempt at conciliation ". It seems to follow from this section that in contrast to section 17, subsection 2, of the Act of 3 April 1926, only corporative bodies, that is to say, excluding higher grade associations, will be competent to undertake attempts at conciliation with regard to collective labour disputes. On the other hand, in individual disputes concerning the interpretation and the enforcement of collective contracts the higher grade occupational associations will keep their power of offering their services for the purpose of conciliation. = See p. 39. 3 ¡See p. 71. 84 FREEDOM OF ASSOCIATION collective stoppage of work is n o longer a n affair concerning t h e t w o parties, b u t is considered r a t h e r as a direct attack on public order a n d is repressed in t h e same w a y as sedition. T h i s n e w conception of t h e strike explains t h e gradation of penalties provided according t o t h e persons who a r e guilty or t o t h e aim in view. Section 18 lays down t h e general principle of prohibition of strikes a n d lock-outs. I t states : The lock-out and the strike are prohibited. Employers who, without justification and for the sole purpose of obtaining from their employees changes in the existing conditions of employment, shall stop work in their factories, establishments or offices, shall be subject to a fine of 10,000 t o 100,000 lire. Employees and workers who, to the number of three or more, after premeditated agreement, shall cease work or shall work in such a way as to interfere with the continuity or the regularity of the work in order to obtain from their employers conditions of employment other than those in force, shall be subject to a fine of 100 to 1,000 lire. When there are several people guilty of the offences mentioned in the preceding paragraphs, the leading instigators and organisers shall be punished by imprisonment» for *a period of not less than one year nor more than two years in addition to the fine laid down in the said paragraphs. A comparison of t h e wording of section 18 with t h e texts of t h e revolutionary legislation forbidding combination shows t h e same difference of treatment between combinations of employers and those of workers. While all strikes which have been premeditated and agreed upon a r e suppressed, t h e lock-out is punishable only when it is announced without justification. Moreover, a n y irregular performance of work which interferes with t h e continuity or t h e regularity of t h e work is forbidden for t h e workers only. On the o t h e r h a n d , t h e Act takes into account w h e n deciding t h e fine t h e superior financial position of t h e employer \ 1 If Italian law suppresses the lock-out only when it is not justified, that is because it does not insist on a preliminary understanding between employers with reference to the lock-out, while it demands combination on the part of the workers before it punishes a strike. Moreover, admitting the conception of respect for individual initiative adopted by Italian law, it would seem logical that legal intervention should not be carried so far as to repress freedom of initiative with regard to the improvement of the economic possibilities of an undertaking. Besides, the text of the Trade Union Act does not prevent an employer from incurring penal responsibility when he deliberately provokes a falling off in production. Cf. CARLO COSTAMAGNA, op. cit., Title V, Chapter 2. 85 ITALY Section 18 seems to affect only such stoppages of work as a r e made to enable t h e employers " to obtain, from their employees changes in t h e existing conditions of employment ", and for the workers " to obtain from their employers conditions of w o r k different from those in force ". Must it be concluded t h a t lock-outs, and strikes with other aims (concerted stoppages of w o r k t o force t h e opposing parties to respect engagements undertaken, sympathetic strikes) are not repressed ? T h e t e x t of the law might seem t o suggest this, although the whole system flatly contradicts it. T h e Regulations have filled this blank : When the lo.ck-out or strike or irregular performance of work [says section 95] take place for ends other than those indicated iin section 18 of the Act of 3 April 1926, then the penalties laid down by section, 235, subsection 1, and section 236 of the Penal Code shall apply, the actions being brought officially *. T h e penalties laid down by section 18 may be re-enforced also by the sanctions provided for by sections 166 and 167 of the Penal Code (offences against the freedom of work) when the lock-out or strike or irregular performance of work are accompanied by violence or threats 2 . If the violence and threats are used in t h e m a n n e r laid down in section 154, subsection 1 of the Penal Code, t h a t is to say, to force a person to agree to or to refrain from doing something, t h e penalties provided for in t h e said section (imprisonment with hard labour up to one year and a fine not exceeding 1,000 lire) shall apply, or else those of t h e Act of 3 April 1926 if the offences are more serious. I n short, the penalties provided in section 18 of t h e Act of 3 April 1926 m a y be made stricter by special provisions of the Penal Code, b u t t h e y can never be mitigated. T h e sanctions with reference to interruptions of w o r k in public or public utility services are naturally even more rigorous : Officials and. servants of the State and of lother public bodies, ,as also those of undertakings providing a public or essential service, who to the number of three or more, after premeditated agreement, shall cease to work or shall work in such a way as to hinder the continuity or regularity of work shall be punished by imprisonment of from one to six months and shall be prohibited from carrying out their public duties for six months. 1 2 Section 235 and 236 refer to the arbitrary exercise of See p . 12. rights. 86 FREEDOM OF ASSOCIATION The leading instigators and organisers shall be punished with imprisonment of from six months to two years and shall be prohibited from carrying out their public duties for a period of not less than three years. Contractors providing a public or essential service who, without sufficient justification shall stop work in their factories, establishments, or offices, shall be punished by imprisonment of from six months to one year, and by a fine of 5,000 to 100,000 lire besides temporary suspension from the exercise of their public duties. When the act referred to in the present section shall have endangered the safety of any persons, the penalty of imprisonment shall be at least one year. If the act has caused the death of one or more persons the imprisonment shall bé not less than three years (section 19). E v e n simple negligence on the part of officials or servants of the State during strikes or lock-outs is punished : Officials and servants of the State or other public bodies, contractors providing a public or essential service and the employees and workers of the latter who, during strikes or lock-outs, shall neglect to do all in their power to ensure the regular continuity or the resumption of a public or essential service shall be punished by imprisonment of from one to six months (section 26). F o r t h e purpose of enforcing sections 19 and 20, which p u t public services and public utility undertakings on the same footing, the Minister of Corporations fixes by Decree the classes of services which should be considered as public utility services. O n the basis of this Decree the communes draw up in the m o n t h of J a n u a r y of each year a list of the firms and undertakings in the commune carrying on public utility work. Section 98 adds that the work of persons connected w i t h the preservation of health, of barristers, solicitors and notaries, of engineers, architects and geometricians, and of agricultural engineers is always considered as being of public utility \ Those provisions are wide enough for the authorities to include most private industries in the list of public utility undertakings, and t h u s make them subject to the system set up by sections 19 and 20 of the Act. Finally, in t h e Italian system the political strike must be considered as a crime against the nation deserving to be repressed most severely. 1 Section 21 a d d s : The Decree determining classes of public utility services for the purpose of enforcing sections 19 and 20 of the Act of 3 April 1926 appeared on 20 March 1927. See Gazzetta Ufficiale, No. 72. ITALY 87 When stoppage of work by the employers or cessation of work or irregular performance of work on the part of the employees shall take place for the purpose of exercising compulsion on the will or influencing the decision of a public body in the State, the provinces or the communes, or a public official, the leading instigators and organisers shall be punished by imprisonment of from three to seven years and shall be prohibited for all time from exercising public duties, and the other guilty parties shall be subject to imprisonment of from one to three years and shall be temporarily prohibited from the exercise of public duties. S u c h t h e n is the system of sanctions against t h e offences or crimes of strikes. H o w far will they b e effective? Since the advent of the Fascist Government t h e n u m b e r of strikes has grown less from year to year. But the Act is so recent t h a t it would be premature to judge its future effect. T h e mover of the Bill in the Senate admits himself that " in the economic sphere there may be m o m e n t s of severe depression, during the course of which elemental forces are let loose breaking all bounds and overthrowing all institutions " \ Moreover, if it is hoped b y t h e severity of t h e repression t o prevent workers from having recourse t o strikes, it is to b e feared t h a t it will not be within t h e power of t h e L a b o u r T r i b u n a l , at least in the present circumstances, to prevent employers from dismissing wage earners en masse if they consider t h a t the interests of their undertakings demand it. On this supposition forced unemployment will very often take the place of voluntary stoppage of work. * As the Labour Tribunals have only just been set u p , there is at present a lack of detailed information as to the working of these T r i b u n a l s with reference to strikes and lock-outs. However, a p a i t from several examples of prevention of interruptions of work by ordinary law courts, particularly at Treviso, Casale-Monferrato, Alessandria, etc., reference may b e m a d e to one decision given recently by the special section of the Court of Appeal in Rome acting as a Labour T r i b u n a l . I n view of t h e importance of this decision which m a r k s the first a t t e m p t at interpretation by a Labour T r i b u n a l of certain important provisions of the Act of 3 April 1926, of the Regulations of 1 July 1926, a n d of the Labour Charter, it seems desirable to analyse it briefly. 1 Ministerial Report in the Senate in Trade Union Reform in p . 142. Italy, 88 FREEDOM OF ASSOCIATION T h e following is first of all an outline of the facts : A collective contract had been entered into by the employers atid workers in the rice-fields for the work of the new season. Negotiations for the contract had begun in Milan in February and the contract had been concluded at Rome on 16 March 1927, helped by the intervention of the competent national organisations. The wage for an eight-hour day had been fixed at 19.50 lire for the immigrant workers (male and female) and at 18.50 and 17.50 lire respectively for local workers from the provinces of Piedmont and Lombardy where the ricefields are situated. I n the course of the following months the agricultural depression having become appreciably more severe the representatives of the farmers declared that they could not continue the harvest work with such high wages, and they demanded that the wages should be reduced by 20 per cent. All attempts at harmonising the opposing interests having failed, including that made by the Ministry of Corporations, the National Fascist Federation of Agriculturists took the question to the Tribunal to ask that new just conditions of employment should be laid down in terms of section 16 of the Act of 3 April 1917 and of section 71 of the relative regulation. Mr. Cacciari, President of the National Fascist Federation of Agriculturists, and Mr. Rossoni, President of the National Confederation of Fascist Trade Unions, appeared in person assisted by counsel and technical advisers. The President of the Court of Appeal, Mr. Preda, tried twice during the case to persuade the parties to have recourse to a just compromise, but this attempt failed. During the hearing the argument put forward by the counsel for the agriculturists was that the latter based their demand, not on the depression that was affecting production as a whole as the result of the deflation of the lire (a depression which had showed itself already in the month of March when the contract was drawn u p ) , but on the existence of an exceptional depression peculiar to the production of rice, the prices of which have suffered and are still suffering, as is clear by the marketprice-lists, a much more rapid fall than that affecting other products. The counsel for the Confederation of Fascist Trade Unions, on the other hand, sought to prove that the changes which had occurred in market conditions since the month of March were not of a nature to justify a reduction of wages of more than 10 per cent., a reduction which had already been applied' for the season 1927 in comparison with 1926, and which corresponds to the reduction in other spheres of national production. These arguments were taken up by Mr. Rossoni who emphasised that it is not in conformity with the spirit of the Act for judicial organisation of collective labour relationships that the conditions of a contract laid down in due form by the national, organisations of employers and workers should change from month to month with each fluctuation in prices, especially when the workers' concessions had already attained their maximum limit. Mr. Rossoni recalled the amendment made in paragraph 13 of the Labour Charter by the suppression of the firsf phrase which was worded as follows : " The consequences of depressions in production and momentary fluctuations must be borne equally by all the factors of production. " This paragraph was suppressed just because it had been recognised ITALY 89. as impossible to put into practice strictly such a provision without at the same time and to the same extent making allowance for the periods of prosperity in production. Now the rice-growers have certainly not granted an increase iu wages at times when the market showed a rise in prices as compared with what had been expected when the contract was drawn up. If these ideas were accepted it would mean admitting the control of the workers over the profits of the undertakings, for wages would always have to be adapted to the conditions of each particular undertaking. Such were the arguments put forward. T h e Court in giving its j u d g m e n t took into consideration the following points : " The court has taken notice that the collective agreement concluded on 16 March 1927 between the employers and workers in the rice-fields had not been published in the Gazzetta Ufficiale nor lodged with the Minister of National Economy as is laid down in section 10 of the Act, but it considers that if these forms of publicity are necessary to make agreements binding upon all employers and wage earners in the group who may not have taken part in the actual drawing up of the agreement, the omission of them does not affect the validity of the agreement between the contracting associations and their members. " The demand for the reduction of wages put forward by the Fascist Federation of Agriculturists was based 011 the paragraph of section 71 of the Regulations, which states : ' Legal action for the purpose of setting up new conditions of emplo>inent is permissible, even when a collective contract has been made and even before the period fixed by the contract has lapsed, if any important change is observed in the state of affairs existing at the moment when the contract was drawn up. ' " Examining the argument that this paragraph is not applicable to seasonal work of very short duration such as the husking of rice which lasts from 35 to 40 days, the court has decided that this argument was not admissible. It has based its decision on the spirit of the Act in general and on the precise wording of section 13, according to which all disputes concerning the regulation of collective labour relationships whether for the enforcement of collective agreements or of other existing rules, or demanding changes in the conditions of work come within the competence of the Courts of Appeal functioning as Labour Tribunals. " As regards the fundamental question, the Court recognises that an important change did take place in the state of affairs existing at the moment when the contract was drawn up. Since the uncleaned rice quoted at 120 lire per cwt. in March 1927 had fallen to 90 lire or even less by the beginning of June, general temporary measures (the large existing stocks, the deflation of the currency) have certainly had an influence on this fall in price. Nevertheless, it depends chiefly, in the opinion of the Court, on the special position of the national rice production in both the Italian and foreign markets with regard to foreign competition, but this economic phenomenon is not of a transitory nature. Seeing that it is determined chiefly by a fall in the cost of production of foreign rice, it is therefore co FREEDOM OF ASSOCIATION necessary not only to improve the technical side of rice growing, but also to reduce the labour costs which in the production of rice form a very important item. " However, the Court did not consider it fair that the consequences of this change in the state of affairs existing at the moment when the contract was drawn up should be borne exclusively by the workers and more particularly by those engaged in husking the rice, which is a most painful task. This is all the more true because the fall in the cost of living which has appeared recently has not yet had a general and appreciable effect on the position of the working classes. " The Court has therefore agreed to the demand for a reduction, but limits it to 60 centimes per day for all classes, which, in view of the special circumstances, seems to it to be in harmony with the principle of equity mentioned in section 16 of the Act. " T h i s judgment was very well received by the press, which considered it as supporting the a r g u m e n t of the workers. T h e representatives of t h e latter h a d indeed already accepted during t h e attempts at previous arbitration a reduction of wages equivalent to t h a t decreed by the Court. The Lavoro d'Italia, in its editorial of 22 July, makes, however, certain reservations with regard to the remark of the Labour Tribunal that important changes in the state of affairs existing at the moment of the conclusion of the contract are shown by a variation in the price of the products : " If every variation in the price of agricultural and industrial products were to lead de jure to a revision of the contract of employment, this would mean setting up a very serious and perhaps dangerous principle. Indeed, sometimes the employers and sometimes the workers would be induced to demand a revision of the contracts made, at least with regard to the clauses affecting salaries, every time that changes — whether a rise or fall — appeared in the prices of commodities. " Really, that would lead to the possibility of setting up in labour contracts sliding scales of wages which would take account of all possible market fluctuations. " As far as we are concerned, we are by no means opposed to the establishment of this principle in law provided that the practical application of the system be reciprocal. That is to say, that if wages have to be reduced during a period of market depression they should be raised to the same extent and by the same methods when the opposite phenomenon occurs. " CHAPTER H I ORGANISATION OF OFFICIAL TRADE UNIONISM: ITS SHARE IN SOCIAL, ECONOMIC AND POLITICAL LIFE Fascist trade union legislation pursues a double aim : first, to regulate collective relations arising out of employment, and secondly to organise the forces of society on new bases with a view to their taking part in the life of the State. These two problems are, moreover, closely linked together. The Act of 3 April 1926, completed by the provisions of the Regulations of 1 July, sought to solve the first problem ; but as soon as it came to be a question of putting into practice the principles laid down by this Act, the second problem, that of organising the forces of society, at once became urgent. It had been observed, indeed, that the uniform and compulsory regulation of conditions of employment was likely to compromise the interests of certain classes of producers if they were not guaranteed sufficient representation in the different organisations for the defence of their vocational interests. Collective regulation of conditions of employment demanded, therefore, in the first place, a very clear differentiation between the organisations of a primary grade based on a careful census of all the professions. It is only in the second place that the primary associations must be re-grouped in a more limited number of centralised organisations either of employers or of wage earners. But the problem of trade organisation by the Government did not stop there. In conformity with the principle of class solidarity which is at the basis of all this legislation, the law wished to reunite the different factors of production which up to the present had been split up into class organisations, and make of them one single body — the corporation based on occupation or trade and endowed with special attributes. Hence the Government has been led to create, alongside of the trade organisation properly speaking, a corporative organisation FREEDOM OF ASSOCIATION 92 sui generis, which, it is true, differs fundamentally from that proposed by the Committee of E i g h t e e n , as does the corporative idea in general. T h e Regulations of i July laid the foundation of the new reform. Other Acts have continued the work in the economic and administrative sphere. Proposals being discussed at present seek to finish off the work by extensive political reform on a corporative basis. § I. — Organisation of Official Trade Unionism ' T R A D E ASSOCIATIONS OF T H E PRIMARY G R A D E T h e first problem raised b y the difficulties in applying t h e Act of 3 April 1926 is that of dividing up t h e parties w h o enjoy legal recognition into t h e different primary associations. Certainly this distribution might seem simple if one were faced b y groups of producers whose duties are clearly defined : employers, wage earners, liberal professions. But t h e interests of different classes of producers within the same branch of industry a n d the interests of different classes of wage earners are very far from being the same 2 . But the law is faced with greater difficulties when seeking to classify in their respective organisations producers who possess some of the characteristics of employers a n d at t h e same time those of wage earners, farmers, artisans, etc. T h e Regulations of 1 J u l y 1926 sought to solve the different problems of distribution b y setting up various distinctions. T h e following are t h e rules which were finally laid down. T h e proprietors of rural estates w h o have rented their lands to others are admitted, according to section 4, to membership of legally recognised associations of agricultural employers, b u t must be formed into a special section with its own representatives on t h e m a n a g i n g bodies of the association. Nevertheless, the representative bodies of this type cannot take part in the conclusion of collective contracts. 1 Cf. G. BOTTAI : " Trade Organisation in Italy under the Act and Regulations on Collective Relations in connection with Employment ", in International Labour Review, Vol. XV, No. 6, pp. 815 to 827. 2 It should be remembered in this connection that during the first months of 1926 before this trade organisation had been finally decided upon, the General Confederation of Medium and Small Scale Industry continued to insist that it desired to remain independent of the General Confederation of Industry. ITALY 93 F o r the purpose of concluding collective contracts of non-agricultural employment on the part of the proprietors themselves, t h e representatives of the agricultural section will act as representatives of an autonomous association. Artisans working for themselves on a small scale and on their own account ; small traders and subsidiary traders ; middlemen, commission agents a n d representatives not enjoying the legal provisions concerning the contract of private employment ; proprietors and farmers working their lands themselves, must form special primary associations, but may be members of higher grade trade associations of employers. On the other hand, the special associations of metayers must be affiliated to the higher grade trade associations of agricultural workers (sections 5 and 34). A m o n g associations of wage earners the Regulations draw a clear distinction between intellectual and manual workers. Section 6 says : Intellectual workers and manual workers cannot belong to the same association even if they are employed in the same type and the same class of undertaking. T h e Regulations further make a triple distinction among intellectual workers between technical employees, administrative employees and technical and administrative managers. Technical employees and administrative employees may be united in the same association, but in separate sections with separate representatives. Technical and administrative managers, on the other hand, as well as office managers and heads of sections with similar functions, administrative officials,. and agents with powers of attorney must belong to separate associations. T h e s e last associations must belong to the federations of employers' associations. S u m m i n g up, among the wage earners in a single u n d e r t a k i n g will be found, first of all, a n association of manual workers, then an association of administrative and technical emplo3-ees, finally a separate association of the m a n a g i n g staff. As regards u n d e r t a k i n g s of all kinds carried on in a co-operative form which may be legally recognised in terms of the Act of 3 April 1926, the Regulations declare t h a t t h e y must constitute special associations distinct from the associations of similar capitalistic u n d e r t a k i n g s and also from workers' associations. T h e y must belong FREEDOM OF ASSOCIATION 94 to higher grade associations either of employers or workers according to their nature and their method of working (sections 8 and 34) . Finally, by reason of their economic character, which does not permit of their being classified in any single group, either of employers or of wage earners, the Regulations authorise employers and workers who are permanently and continuously members of different categories of employers or of workers respectively to belong at the same time to different trade associations. Similarly, the Regulations authorise anyone who, in different fields of activity, is at the same time an employer and a worker, to belong simultaneously to workers' and employers' associations (section 7). It has been seen that the Act of 3 April also grants legal recognition to associations of persons exercising an art or a liberal profession. Now here the new legislation came in conflict with a number of legal provisions which, by virtue of previous Acts, already regulated the exercise of a certain number of liberal professions. According to the constitutions of these professions, enrolment in the public registers was a condition of the exercise of the profession. The compulsory registration was justified by the necessity of keeping this class of workers, who had a very close community of interests, independent of the control of the public authorities \ But these associations, while legally representing the professions, were also the interpreters and defenders of their class interests. Amongst their attributes they had the right of fixing the scale of charges. The managing bodies were elected by direct, equal and secret voting. Those compulsory associations included the most important liberal professions. It will be sufficient here to mention the principal groups and outline briefly their constitution : (a) Barristers and attorneys (Act of 8 June 1874, No. 1,937) : The College of Barristers was governed by a regulative council ; the College of Attorneys by a disciplinary council. They were set up in the towns in which there were courts. (b) Notaries (Act of 18 February 1913, No. 89) : The College of Notaries was governed by a council; its seat was that of the court. 1 BAKASSI : Contratto di Lavoro, Vol. II, p. 58. ITALY 95 (c) Professions connected with public health : The Act of io July 1910, No. 455, instituted in each province, with its seat in the capital, an order of doctors and surgeons, an order of veterinary surgeons and an order of pharmacists. Registration was compulsory for the exercise of the professions. Each order appointed an administrative council which, amongst other functions, supervised the observance of professional etiquette and independence. (d) Engineers and architects. The Act of 24 June 1923, No. 1,395, made the exercise of these professions subject to registration established in each province. The members appointed their own regulative council which, amongst other duties, supervised the freedom of exercise of the profession and the observance of professional etiquette. (e) Accountants: The Act of 15 July 1908, No. 327, set up in each province a college of accountants with its seat in the capital. These colleges were divided into sections for the different districts. This brief analysis shows that it was difficult, if not impossible, to harmonise certain rights acquired by these orders and colleges with the prerogatives of the recognised trade associations for the liberal professions. Therefore, the new legislation had, of necessity, to institute a complete re-moulding .of the existing system. If it does not go so far as simply to suppress these orders and colleges, it practically deprives them of all their privileges for the benefit of the recognised associations. The Regulations laid down, first of all, a restriction as to the creation of new orders and colleges in the future. Existing orders and colleges legally recognised at the date on which the Act of 3 April 1926 came into force are, according to section 12, to remain, but no new ones shall be recognised even though their constitution may be provided for by previous Acts. But the constitution of existing orders and colleges is also amended on points of fundamental importance ; when exercise of a given art or profession is subject to registration, controlled in virtue of the Acts at present in force by an order or college, then according to section 11, a trade association may be legally recognised concurrently with the order or college. In such a case, the trade association is subject to the Act of 3 April 1926, and it is this association and not the previously existing bodies which may assume the obligations of protecting the moral and material interests of their members and of o6 FREEDOM OF ASSOCIATION supervising t r a i n i n g and education, as provided for in the A c t . T h e y alone are entitled to appoint representatives to t h e administrative and technical political bodies of the State or of public institutions w h e n such representation is provided for by Statutes and Regulations. Moreover, and this is t h e most important provision, when the exercise of a given art or profession for which no order or college h a s been set u p is subject to enrolment in a special register, all the functions belonging to the orders or colleges r e g a r d i n g t h e keeping of the register and the supervision of the members are exercised by the legally recognised trade associations, or, in their absence, are entrusted t o the president of the court (section 12, subsections 2 and 3 ) . T h e logical consequences of this reform are t h a t while the previous registration, giving the right to exercise certain functions, was subject only to purely professional conditions (possession of university' qualifications), henceforward enrolment, and therefore t h e exercise of the profession, in terms of the Act of 3 April 1926, m a y be refused for reasons of moral ór political incapacity \ T h e same t h i n g happens in other classes of liberal professions, such as artists and journalists. Section 2 of the A c t of 3 April 1926 decrees that the constitutions of associations of artists and of persons exercising a liberal profession which have obtained legal personality previous to the promulgation of the Act shall be subject to revision to b r i n g them into harmony with the provisions of the Act. I n conformity with these provisions, the old associations of journalists and artists, which h a d a special legal constitution and enjoyed legal personality, have had to be transformed into trade associations in terms of the Act of 3 April 1926 \ T h e keeping of registers of enrolment, made compulsory for journalists by section 7 of the Act of 31 December 1925 on the periodical press, will henceforward be entrusted to the legally recognised associations. I t fol- 1 Act of 25 March 1926, No. 453, on the organisation of the professions of barrister and attorney, Gazzetta Ufficiale, No. 70. Royal Decree of 6 May 1926, No. 747 : Regulations for the co-ordination of the Act of 3 April 1926 with the Act of 25 March 1926 on the exercise of the professions of barrister and attorney. Royal Decree of 26 Aug. 1926 approving the regulation for the enforcement of the Act of 25 March 1926. 2 See Decree of 27 Sep. 1926, Gazzetta Ufficiale, 1926, No. 1,718, granting recognition to the National Fascist Association of Journalists. Decree recognising National Fascist Association of Newspaper Editors, ibidj. 1927, No. 48. ITALY 97 lows that the enrolment necessary for the exercise of the profession m a y be refused on the ground of moral and political incapacity \ T h u s , by the logic of things, political monopoly over t h e press is arrived at, and more generally, a political monopoly of the exercise of t h e liberal professions. 1 The secretary-general of the National Fascist Trade Association, Mr. Amicucci, comments upon the constitution of the trade association of journalists in the following terms : " If a solution is sought for the problem of the enrolment of journalists, the preliminary political qualification cannot be overlooked. The qualitative association is indispensable in journalism, which is essentially a political profession. That is why only Fascist journalists and journalists who have given constant proof of sympathy for that system may belong to Fascist trade associations. All other journalists who do not fulfil these political conditions may be registered in the professional lists which guarantee the right to exercise the profession. But even for enrolment in the register, a certain minimum of political guarantees will be demanded in conformity with the criteria laid down in the Act regarding the exercise of the profession of barrister and of attorney. The keeping of the registers will be entrusted to the association in accordance with a regulation included in the Act on the press and which will be promulgated by the Minister of Justice. " With the legal recognition of the National Trade Association of Journalists and of the National Association of Newspaper Editors the typical contract of employment will soon be lodged with the Minister of Corporations. " As regards the part which journalism is called upon to play in the national life, the secretary-general declares that newspapers must take into account the political creed of their editors. The Italian press is destined to play an important part in the State. " It must not be forgotten ", he added, " that the head of the Government, in a memorable speech delivered in the Senate in the winter 01 1924, proclaimed that the parliamentary system was destined to be replaced by two basic institutions : trade unionism and journalism. Trade unionism already constitutes the basis of national society ; the task now is to give journalism its proper place so that it may fulfil the duties for which it is destined. " As a result of the recognition of the professional associations of journalists, the leaders of the Fascist Party decided, in a session i.n 3 March 1927, to proceed with the reorganisation of the press system. Newspapers and publications will be divided into two main categories — newspapers recognised by the party and those not recognised. The first group will consist of newspapers which, by their origin, their support of the Fascist cause, and the political fidelity of all the managing, editing and administrative staff, offer sufficient guarantees to be considered true and proper organs of the State. All other newspapers will belong to the second class. The Party will take the necessary steps to supervise the recognised newspapers as ¡Freedom of Association 7 9« FREEDOM OF ASSOCIATION T h i s regulation h a s aroused m u c h criticism, even on t h e part of the interested parties. Some have maintained indeed t h a t t h e duties carried out b y t h e liberal professions can only with difficulty be compared to collective relationships resulting from employment. I n an article in the Critica Sociale, Mr. Gaio Ulpiani shows, by w a y of example, t h a t the relationships between a barrister and his client are essentially of a personal and qualitative n a t u r e , a n d hence unsuited for a single compulsory system of collective regulation. T h e a u t h o r considers this as a proof t h a t t h e object of the Act is not so m u c h economic as essentially political \ S u c h then, are the difficulties which the law had to overcome in order t o bring the liberal professions under the new trade legislation. T h e following are the criteria by which it was guided in enrolling the associations of the liberal professions in the higher g r a d e t r a d e organisations. T h e orders and colleges of persons exercising liberal professions,, according to section 35, c a n n o t constitute federations or other h i g h e r grade organisations nor be affiliated to other higher grade associations. T h e different associations of editors and authors must belong to t h e General Confederation of I n d u s t r y . T h e associations of artists, on the other hand, must b e affiliated to the Theatrical F e d e r ation and t h r o u g h it to the General Confederation of T r a d e Associations of Fascist Workers. T h e associations of journalists will belongto the Federation of Associations of Intellectual W o r k e r s . But it was not sufficient to lay down the principles g o v e r n i n g the division of the citizens into different trade associations. A regards their political and possibly their administrative activity,, and will' urge all Fascists to support onty these newspapers. Only journalists who belong to the associations and are faithful to the State may collaborate in recognised newspapers. On other newspapers, not only Fascist, but any journalists admitted for enrolment in the register, may collaborate. (Lavoro d'Italia, 1-4 March, 1927.) At the moment of going to press the Regulations for the enforcement of the Act regarding the registration of journalists have not yet been promulgated. 1 " Collegi, Sindacati e Corporazioni ", Critica Sociale, 16 April15 May 1926, pp. 110-113. The president of the Italian Society of Authors, in his report addressed to the President of the Council, explaining the difficulties met with by the society in adapting its constitution to the requirements of the new legislation, advanced similar arguments. with reference to authors. * 99 ITALY further discrimination was necessary in order ito make certain that t h e conditions prescribed by the first section of the A c t for membership of recognised associations had been complied with T o make certain of this the Government had to u n d e r t a k e annually a general vocational census of all citizens. F o r this purpose section 5 of the Act orders all employers to give annually, before 31 March a t the latest, t o t h e associations which represent t h e m , a return of the number of wage earners in their employment. If this declaration is not m a d e , or if it is false or incomplete, t h e offenders are punished b y a fine n o t exceeding 2,000 lire. T h e associations, for their p a r t , m u s t immediately communicate t h e declarations received to. the prefects. As regards the liberal professions, section 10 of the Regulations lays down t h a t whosoever undertakes in a commune the exercise of an art or profession m u s t m a k e a declaration to this effect t o the said comm u n e within t h r e e months, on pain of a fine of 100 lire. W i t h the help of t h e data received from the associations and the communes, the prefects draw u p , after consultation with t h e provincial economic council, definite occupational registers. THE H I G H E R G R A D E T R A D E ASSOCIATIONS 1 Section 6 of the Act of 3 April 1926 recognised besides the u n i t a r y associations t h e higher grade associations, federations and confederations. Section 7 and the following sections regulate the legal constitution of these higher associations a n d their relationships w i t h the lower associations. T h e organisation of these higher t r a d e associations is as follows : second grade associations or federations ; third grade associations or confederations; fourth grade associations or general confederations. Trade Federations Several unitary associations form a federation which m a y b e local (communal, provincial, or regional) or national. I t is, however, not _' We borrow part of this commentary from an article of the Minister of Justice which appeared in the review Gerarchia, July 1926, entitled " La Nuova disciplina del Lavoro e la State corporativo ". 100 FREEDOM OF ASSOCIATION necessary that the union of the different elements of a given category in larger areas or even over the whole of I t a l y should be on a federal basis; it may also be done by means of unitary associations. T h u s a given category m a y be organised by provinces, regions, or even on a national basis in one unitary association. T h e fact of choosing a federal organisation or unitary organisation depends solely on the technical problems of the association. I t is therefore left to the initiative of the organisers who may approve according to the type of the branch of industry concerned, the n a t u r e of the persons interested, and the number of members, either one or the other scheme. Trade Confederations Several federations are united into a confederation. T h e latter, therefore, includes several categories of employers and of workers and represents one or more classes of u n d e r t a k i n g s or even t h e whole of a given branch of production. T h e confederations also may be local (provincial or regional) or national. I n the first case, the provincial or regional confederations unite to form a national confederation. T h e national confederation m a y include federations as well as unitary associations. T h e number of national confederations is limited. Section 41 of the Regulations provides indeed for the recognition of only thirteen national confederations, six for the employers, six for the workers, and one for the liberal professions. T h e six national confederations of employers or of workers are drawn up according to the six chief classes of economic production : industry, agriculture, trade, maritime and aerial transport *, land transport and inland navigation, and b a n k s . Besides these twelve confederations divided according to the branches of production, the Regulations also provide for the setting u p of a thirteenth national confederation, t h a t of artists and liberal professions. The General Confederations T h e Regulations authorised finally, t h e formation of two general confederations. A general confederation includes all the employers 1 Contrary to the provisions of the Regulations of 1 July 1926, which provided for the union of all the federations of wage earners' in the appropriate National Confederation of Workers an autonomous Federation of Workers and Salaried Employees in Maritime and Aerial Transport has been formed. (Gazzetta Ufficiale, 24 Nov. 1926.) ITALY 101 or all the workers and consequently extends to all branches of production. Following the example of the simple federations, a general confederation may be either local or national. By means of the institution of general confederations, the law hopes to solve the problem of unitary provincial organisation either of employers or of workers. It succeeded in this by one of the following methods. The organisers may in the first place take the province as the basis of the organisation, and thus they constitute a general provincial confederation comprising all the provincial organisations whether of employers or of workers. It is only as a second step that the provincial organisations in their turn unite to form national confederations. The organisers may also constitute straightway a general national confederation having branches in each province. This, again, is a question of the system of organisation, the solution of which is left to the organisers, who may choose either the more centralised form of a single national confederation with local branches or the more decentralised form of general local federations united in a national confederation. The Regulations admit only two types of general confederations : one for employers and one for workers and the liberal professions. Such are the main outlines of the trade organisation properly speaking, but once these frameworks have been definitely established a new element appears which gives Italian trade organisation its particular stamp : corporative organisations. CORPORATIVE ORGANISATION The corporative organisation was already hinted at in the Act of 3 April 1926. Section 3 of this Act provides indeed for the constitution of central liaison bodies, and section io, subsection 3, and section 17, subsection 2, sketch outlines of their duties. It is on these provisions of the Act that the Regulations have built up corporative organisations. As this new organisation is generally considered of fundamental importance, it is well to give a brief outline of its purpose and scope. It has already been seen that the Act of 3 April 1926 was the result of a compromise between the plans for integral corporative organisation put forward by the Committee of Eighteen and the system of the legally recognised trade association ; but the idea of integral corporative organisation has always found and still finds at present enthusiastic supporters in Italy, in particular, the national Catholic I02 FREEDOM OF ASSOCIATION school makes it a central point in its social programme. The suggestion of the Committee of Eighteen corresponded to this ideal. It should be recalled, for the sake of comparison with the situation established by the Regulations on trade organisation, that, according to the idea of the Committee of Eighteen, a corporation was to be formed by the union of all the social activities of the nation in a single body, and was finally to harmonise or rather to merge all the individual interests in the general interest of the nation. Being open to all, the corporation was to constitute an autonomous organisation endowed with legal personality. Although its working was to be subject to the supervision of the State, it was nevertheless authorised by its constitution to issue its rules controlling vocational and social life. Later, it was the Fascist trade unions which became, and still are to-day, the champions of corporative organisation. Formed under the banner of the corporation, the Fascist trade union had attempted to unite the different factors of production in their own organisation. This union, had it been realised, would according to them, not only have afforded the greatest possibility of co-operation in the sphere of labour disputes, but would also have formed thé best possible foundation for the reorganisation of society on a basis of social duties. The Fascist trade union theory based its action indeed on the idea of social duties. According to this theory, production is no longer exclusively the personal business of the employer, and the right of property no longer extends simply to the control exercised by •persons over things but must correspond to a social duty, the exercise of which will be entrusted to whoever is most suited to fulfil it. It follows that the Fascist trade unions, which reject the idea of class warfare, substitute for it " the struggle of social ability, that is to say, the struggle carried out by groups of vocational categories who acquire ability to carry out duties of management against groups of categories who are gradually losing ability to fulfil the duties of control " \ 1 Cf. the programme of the Fascist corporations p. 28. Cf. also the constitution of the Confederation of Fascist Trade Unions (Article 7) and that of the Federation of Employers (Article 3), which repeat in almost identical terms this theory of the social duty of capital and labour, thus showing that by mutual agreement they have made it the basis of their trade union action. ITALY IO3 But t h e leaders of Fascist trade unionism consider t h a t the setting up of the corporative organisation is a necessary preliminary to this struggle of abilities \ On t h e other hand, t h e idea of corporative organisation h a s always aroused the hostility of the employers in large-scale industry. It can be understood [states the Minister of Justice, who has been spokesman of these doubts] how much the idea of unitary organisation, of a single disciplinary force in employment and in production must terrify the employers if the corporation were constituted outside the State in a system of liberty full of dangers 2. T h e institution of the integral autonomous corporation necessarily came in conflict with the Fascist theory of t h e State ; t h a t was the result already of the report of t h e nationalist minority in t h e Committee of E i g h t e e n , which summed up its objections to t h e system of integral corporative organisation in the following sentence : " Corporative reform reduces the State to a mere systematised federation of interests in direct contradiction to t h e modern conception of t h e State as the synthesis of all t h e moral and material interests of t h e nation. " 3 T h e Minister of Justice, for his part, in a speech delivered in the Chamber of Deputies during the discussion on the Act of 3 April 1926, laid down even more clearly t h e ideas of the Government on this point : I must say, finally, a few words about the relationships between the trade organisation provided for in this Bill, and the corporative organisation for which some people hope. According to the conception of the corporative organisation, all citizens would be enrolled according to the occupation which they fill in such a way as to create a rigid and systematic organisation without any possibility of freedom of development. 1 However, the idea which the Fascist trade unions have of corporative organisation differs in one fundamental way from that of the ChristianSocial school ; it is plain indeed from numerous articles which Mr. Rossoni has devoted to this question in the Lavoro d'Italia that, in his opinion, the corporation formed by the union of different factors of production within one single body must be composed exclusively of Fascist employers and workers. 2 A. Rocco : La nuova disciplina del Lavoro e lo Stato Corporativo, p. io. 3 Report and Proposals of the Presidential Committee for the Study of Constitutional Reforms, p. n o . I04 FREEDOM OF ASSOCIATION We consider that such a corporation of the Italian population does not fit present conditions of Italian life. It is better to start from an existing body, a reality, that is to say, from the trade associations. We develop this reality, we give it new aspects and we create the legally recognised trade associations. If the life of these associations becomes as strong as we hope, so that all those who are worthy to enter may be active members, the result will be a system very similar to the corporative system, but distinct from it in one essential point. The members of the association who will direct the economic life of the country and regulate class relationships must constitute an élite of persons of ability and of definite convictions. On the day when all employers and all workers in Italy possess this ability, this consciousness of the aim to be achieved and these convictions, then, but only then, the trade association will automatically become a corporation '. F o r all these reasons the law has stopped at a n intermediate system which gives u p two characteristics considered essential in the corporation, namely, universality and autonomy. Universality has been lost because the Regulations have contented themselves with setting u p corporative bodies formed by t h e union in one single body of the legally recognised associations of workers and employers within one single branch of i n d u s t r y only. T h e result is t h a t all those who are excluded from this single trade association are automatically excluded from the corporative organisation. A u t o n o m y has been lost because the Regulations not only d e n y t h e corporation its own legal personality b u t makes it an administrative body within the State. T h e following are a few details of the corporative organisation sui generis as conceived by the Regulations of i July. T h e national trade organisations of the different agents in production (employers, workers, artists and persons exercising' a liberal profession), w h e t h e r representing a given branch of production 1 Speech of the Minister of Justice in the Chamber of Deputies in Trade Union Rejorin in Italy, p. 129. It has been pointed out, moreover, that the idea of the corporation as an autonomous legal personality has had to be abandoned because it would have endangered the principle of the autonomy and equality of social classes, a principle which constitutes one of the foundations of the whole Fascist system ; consequently in the Fascist system the corporation has become a public institution, without real personality, so as to respect the legal individuality and autonomy of the vocational associations of which it is composed. Within these limits the universality of the corporative organisation is guaranteed by the fact that the corporative bodies formed for every branch of production, are united and co-ordinated amongst themselves by the National Council of Corporations. ITALY IOS or one or more given categories of undertakings, may be set u p as corporations by Decree of the Minister of Corporations (section 4 2 ) . T h e corporation is not, therefore, a union of all social activities in one single organism, as was intended b y the proposal of the Committee of E i g h t e e n , b u t is peculiar to each given branch of production. Consequently, t h e r e will be in the system of trade organisation general corporations for industry, for agriculture, for trade, for maritime transport, for land transport, and for b a n k s . Although section 42 of the Regulations declares t h a t t h e corporation has a national character, there is n o t h i n g to hinder it h a v i n g local branches. T h e Decree setting u p a n y corporation determines, at the same time, its attributes, its powers, and its organisation (section 4 3 ) . T h e corporation is governed by a council formed by representatives of the different trade associations united in the corporation, a n d directed by a Chairman appointed by the Minister of Corporations. T h e incidental expenses for the working of corporative bodies are a burden on the State. T h e latter puts aside for this purpose the share of subscriptions which it receives according to t h e Regulations \ S u m m i n g u p , the structure of Fascist trade unionism is based upon a double organisation, a purely trade union organisation working for the defence of the interests of each group and of each class, and a corporative organisation entrusted with the defence of the interests common t o each branch of production a n d t o each g r o u p of undertakings. • T h a n k s to this double organisation, as the Minister of Justice maintains, the double aim pursued by the Act of 3 April 1926 and completed b y the Regulations of 1 J u l y 1926 is realised : t h e peaceful solution of labour disputes, and the organisation of the forces of production under State supervision \ T r a d e union organisation is completed b y the institution of a special Ministry, the Ministry of Corporations. 1 No corporation has yet been set up in the course of the year 1926, or the first months of 1927. - A. Rocco, op. cit., p. n . io6 FREEDOM OF ASSOCIATION The Ministry of Corporations T h e w o r k i n g of t h e T r a d e Union Act has all t h r o u g h been p u t , as has been seen already, u n d e r the direot control of the authorities and their agents. H e n c e the need for setting up a supreme controlling body. T h e Ministry of Corporations was constituted by a Decree of 2 July 1926. T h e first section of the Decree defines its attributes. T h e Minister of Corporations, and under his direction, the prefects of provinces, carry out all the duties of organisation, co-ordination and supervision entrusted to the Government b y virtue of the Act and t h e Regulations. Section 4 institutes a National Council of Corporations along with the Ministry of Corporations. T h i s Council is composed of the Minister, the Under-Secretary of State, the General Labour Director of the Ministry of National Economy, representatives of different Ministries, representatives of t h e g r e a t t r a d e associations of employers a n d workers which are legally recognised, representatives of the National Institute for W o r k e r s ' Leisure, representatives of the National I n s t i t u t e of Fascist Y o u t h , and of the National I n s t i t u t e for M a t e r n i t y and Child Welfare. T h e meetings of t h e Council will also be attended by a delegate of the National Co-operative I n s t i t u t e (Ente nazionale della Cooperazione), representatives of the associations of wage earners employed by t h e State, and of the Fascist Political P a r t y . T h u s composed, t h e Council will form a synthesis of all the different forces of the nation \ T h e members of the Council are appointed by Royal Decree for four years, and are eligible for re-election. T h e Council is called upon to give its opinion on questions concerning the different corporations and associations belonging to t h e different corporations, and in general, on any question submitted to it b y the Ministry of Corporations. T h e Legislative Decree of 17 M a r c h 1927, N o . 401, completes t h e organisation of the Ministry of Corporations, as was proposed b y 1 Cf Speech of Mr. Bottai in the Chamber of Deputies on 1 June 3927 — " Organisation of the Ministry of Corporations ". The Under-Secretary of State declared, on the same occasion, that the corporations still remained to be set up, that the members of the Council have still to be appointed, and that the relations between the corporations and the Council, and between the Council and the Ministry have still to be defined. ITALY I07 the Decree of 2 July 1926. It sets up within the Ministry two general managing bodies : the general managing committee of the trade associations and the general managing committee of the corporations. The attributes of the general committees will be determined later by a Decree of the Ministry of Corporations in agreement with other Ministers concerned. Besides the National Council of Corporations, other bodies will act along with the Ministry of Corporations : (1) The six national corporations which will be set up in conformity with the Trade Union Regulation of 1 July 1926 ; (2) The several permanent advisory committees which will be instituted by Decree of the Minister, and which will be required to carry out a preliminary study of any given problems, and to attend to the publication of reviews and other periodicals dealing with questions within the scope of the Ministry. The chairmen of the different corporative bodies will be citizens distinguished by their outstanding merit in the sphere of production, of labour, or the management of public services. In each province, the services within the scope of the Ministry of Corporations will be placed in the hands of an official of the prefecture, or of services depending upon the Ministry of National Economy. This official, besides the task thus imposed upon him, will co-operate with the prefects in the work of supervision entrusted to him by the Act of 3 April 1926, and the Regulations of 1 July 1926. He also superintends the working of the local offices of the corporative bodies, laid down in section 43 of the Regulations of 1 July 1926. He collects the documents connected with collective contracts of employment and similar rules, which in terms of section 10 of the Act of 3 April 1926 must be lodged with the prefect of the district, and he authorises their publication. This official is ex officio a member of the Provincial Administrative Council when it acts as a protective body for the trade associations and of the Provincial Economic Council. Finally, a Decree of the Head of the Government dated 8 May 1927, and published in the Gazzetta Ufficiale of 21 June defines, as follows, the attributes of the Ministry of Corporations \ 1 Cf. Industriai and Labour Information, Vol. XXI, p. 152, and Vol. x x n , p. 22. io8 FREEDOM OF ASSOCIATION SECTION I ( I ) To control the exercise of the duties of representation reserved for legally recognised trade associations by section 5 of the Act of 3 April 1926, without, however, allowing this control to extend to acts performed by bodies or institutions outside the corporative organisation, but participated in by the representatives of the latter. (2) To co-ordinate the activity of the trade associations with that of the national institutions in terms of section 19 of the Regulations of 1 July 1926. (3) To supervise the schools which may be set up for training the managing officials of trade associations. (4) To direct the scientific and popular diffusion of the principles inspiring co-operative organisation. (5) To control, supervise and co-ordinate in their different spheres the working of the trade associations and complementary institutions according to the principles laid down in sections I and IV of the Labour Charter with reference to the relations of trade associations, either with each other, or with the agencies of corporative and inter-corporative action subsidised by the special fund which is at the disposal of the Ministry, òr created conjointly by several trade associations. To encourage and subsidise similar undertakings in terms of section 44, (b), of the Regulations of 1 July 1926 without infringing the competence of the Ministry of National Economy. (6) To co-ordinate the data referring to production and labour gathered by other branches of the State administration, by the Central Institute for Statistics, and by the trade associations for the purposes of applying section XIII of the Labour Charter. (7) To supervise the drawing up of collective contracts of employment, and to attend to the publication of the latter, in agreement with the Ministry of National Economy, and with other Ministries which may be concerned ; to communicate to the Ministry of Justice all the necessary information for the exercise of the duties laid upon the Public Prosecutor with regard to the Labour Tribunal by the Act of 3 April 1926, ' and the Regulations of 1 July 1926. (8) To support and direct the advisory, regulative and organising activity of the corporations within the sphere of their competence ; to take part in attempts at conciliation in collective differences ; to study and put forward legislative measures for the enforcement and development of the Labour Charter, and with regard to collective labour relations. (9) To promulgate the decisions and ratify the Orders of the corporations, to superintend the carrying out of these Orders, tc coordinate the action of the central and local corporative bodies in their mutual relations, and in their relations with the National Council of Corporations. (10) To supervise within the limits of its special competence the services set up by the corporations ; to administer the funds not included in the budget which are put at the disposition of the Ministry by section 4 of the Decree of 17 March 1927. SECTION 2 The State administrative bodies shall transmit periodically to the Ministry of Corporations the data collected in conformity with subsection (6) above. The Ministry of Corporations shall, in agreement with these administrative bodies, take steps, in urgent cases, to make the enquiries which may be necessary in virtue of the said paragraph. It may also ask the Central Institute for Statistics to carry out special ITALY IOC work and, after consultation with this Institute, may set up special criteria for enquiries concerning relations in labour and in production. SECTIONS 3 AND 4 Sections 3 and 4 give the Ministry of Corporations the power to divide the attributes enumerated above among the different services of the Ministry, to decree, in agreement with other Ministries, regulations for the administration of the provincial services, and to organise the Secretariat of the National Council of Corporations. SECTION 5 Section 5 decrees that the special fund placed at the disposal of the Ministry of Corporations, and under the supervision of the Court of Accounts, shall be administered by the Minister and the Under-Secretary of State, assisted by a committee composed of two General Directors of the Ministry, the Head of the National Secretariat of Corporations, a counsellor of the Court of Cassation, a State counsellor, and a member appointed by the Minister of Finance. The regulations for the constitution of the fund, its administration and the organisation of institutions subsidised by it shall be drawn up by Decree of the Minister of Corporations in agreement with the Minister of Finance. lit is clear from all those provisions t h a t the Ministry of Corporations will be essentially the supreme regulating body in the trade union, economic and social organisation. T h e following table gives an idea of t h e structure of Fascist trade unionism *. 1 Cf. G. BOTTAI : ¡-.^ordinamento corporativo dello Stato, Edition Del Diritto del Lavoro, Roma, 1927. The author gives the complete table in the appendix. ItO F R E E D O M OF ASSOCIATION NATIONAL CONFEDERATION OF National organisations 2 FASCIST TRADE l UNIONS Provincial and local organisations National Federation of Fascist 47 national trade unions and national groups co a Trade Unions in Industry. a v of unions. Cl T3 National Federation of Fascist 6 a <u CS ' S Trade Unions in Agriculture. S'a T3-2 National Federation of Fascist 13 Trade Unions in Commerce. CB . ß •u 1& a National Federation of Fascist Trade Unions in Land Transport and Inland Navigation. I! !{ S bo National Federation of Fascist Trade Unions of Bank Employees. National Federation of Fascist Trade Unions of Intellectual Workers. "E <u 16 •r o o o «J 0.2 ¿3 a ~£ O ¡U a S S £ .2 '2 ¿ H a 'g 'S -S C3 O .a « Il <L> la $ 0 1 The General National Confederation of Fascist Associations of Employers is constituted on a similar basis. 2 There should be added to the list of national organisations the autonomous Federation of Workers and Salaried Employees in Maritime and Aerial Transport. § 2 . — Part Played by Official Trade Unionism in Social, Economic and Political 'Life On the basis of this trade union and corporative organisation it is proposed to u n d e r t a k e b y legislation the complete reform of Italian society. T h i s reform will have various aspects. I t is at the same time social, economic and political, a n d in all these spheres it is on t h e way to completion. Mention will be made here only of the most characteristic expressions of this reform in each section of national activity. / l l 1 ITALY P A R T P L A Y E D BY T H E T R A D E A S S O C I A T I O N S I N S O C I A L L I F E The National Labour Charter 1 Section i o of t h e Act of 3 April 1926 g r a n t s the central liaison body, t h a t is to say, the corporative organisations, the right of setting u p general rules regarding conditions of work in the u n d e r t a k i n g s with which they are connected. I t has been seen that these rules, like collective contracts in t h e strictest sense, are effective for all employers and all wage earners of t h e g r o u p to which they refer, and w h o are represented in terms of section 5 by the unions of associations (see a b o v e ) . T h e mover of the Bill in t h e Senate had drawn the attention of t h e legislators to the danger of leaving the control of such an important matter affecting t h i r d parties entirely to the contractual will of the parties 2 . T h e Regulations of 1 July 1926 e n u m e r a t e in section 44 t h e powers granted in this respect to corporative bodies, b u t w i t h o u t g i v i n g exact details of the m e t h o d s of enforcing t h e m . T h e section s t a t e s t h a t the central corporative bodies have in particular the right r To undertake conciliation in disputes which may arise between groups of organisations and to draw up the provisions outlined in section 10 of the Act of 30 April 1926 ; To stimulate, support and subsidise every effort made by the trade associations to co-ordinate and organise production, to set up employment exchanges wherever there is need for them. Where such exchanges exist the right of seeking employment and the working of other agencies may be forbidden by Royal Decree, having regard in every case to any special legislative provisions on the subject ; To regulate periods of probation or apprenticeship by enforcing the general rules on this subject and seeing that they are observed. These rules are subject to all the provisions regarding collective contracts of employment. T h e National Labour Charter, which has just been promulgated, s u m s u p all t h e provisions of the Act a n d the Regulations on these points. 1 Editorial Note. — This work was in the press when the Labour Charter was promulgated on 21 April 1927. That is why we have been content to reproduce this document without comment at the end of this chapter, and have refrained from altering the general plan of the work. 2 See the Ministerial Report to the Senate in Trade Union Reform-. in Italy, p. 165. FREEDOM OF ASSOCIATION 112 General Factory While Regulation- waiting for the p r o m u l g a t i o n of this new legislation, the Fascist organisations of employers and workers had agreed t o d r a w up general plans for factory regulation which were to be enforceable o n all parties concerned. T h e following, according to a resolution adopted in April 1926 by the General Confederation of Fascist W o r k e r s , are the g u i d i n g principles of the reform. T h e Council of the General Confederation of Fascist T r a d e Unions expresses the desire : That all questions affecting all classes of workers as regards finding of employment, welfare work, mutual aid, the annual holiday and compensation for dismissal, should be promptly settled in such a way as to make possible complete corporative control of the labour market ; That social assistance in the case of involuntary unemployment, of sickness, disablement, old age or retirement should be guaranteed to the workers. U p to the present the discussions between the two parties have n o t reached a definite decision, b u t t h e aims of t h e Fascist organisations are already sufficiently obvious from the actual situation resulting from local or regional agreements arrived at b y discussion between t h e parties concerned. According to the Fascist political or trade union press, t h e situation is as follows : Fascist t r a d e unionism found in force the factory regulations laid down b y the independent trade unions in 1919. T h e latter have already been gradually modified for certain classes of workers such as chemists, sugar workers, electricians, etc. ; on the other h a n d , for other g r o u p s there have so far been n o important amendments. N o w it is necessary to remove t h e inequalities in this situation and to amend t h e internal factory regulation, in particular the provisions regarding internal committees, the finding of employment, and social assistance. On these three points solutions have been arrived at in practice which establish the monopoly of the official trade unions in representing labour in the workshops, in finding employment and in establishing social welfare institutions. Monopoly of Labour Representation I t has been seen in the chapter devoted t o history t h a t the internal committees h a d been definitely suppressed according t o t h e Vidoni Palace a g r e e m e n t ; they have not yet been officially replaced. I t ITALY "3 is moreover doubtful what bodies will take their place, but the Fascist press asserts that it is already clear that the members of the new bodies will no longer, as formerly, be elected by universal suffrage on the part of the workers in their undertakings. In fact, labour representation in the workshops has been exclusively assumed by the representatives of the official organisations. Monopoly of Finding Employment Equally important is the problem of finding employment. While waiting for legislation which will decree new regulations through the central corporative bodies for reorganising completely the system of finding employment, heads of undertakings and representatives of the Fascist trade unions have already reached an understanding for regulating the engagement of their staff. Now the difficulties which may result from the exercise of a monopoly in finding employment by party institutions can scarcely be disguised. It must indeed be feared that the parties will be tempted to give preference to members of official trade unions, all the more so because as the result of an economic depression the possibilities of employment are limited. The following example, based on documentary evidence, tends to show that the danger is not merely a possible one. A thousand workmen in Molinella had formed, in conformity with existing legislation, an independent trade union affiliated to the General Confederation of Labour. Becoming involuntarily unemployed, these workers applied to the employment exchange in Bologna for employment in the construction works in the region of the Reno and Crevalcore. They were told that to obtain employment in this work they must be members of a Fascist trade union. The trade union (then applied to the President of the Central Employment Exchange and claimed the right of employment for their members, basing their argument on the regulations of the exchange itself, which is supported by contributions from all the workers employed in these works. The Joint Committee of the Exchange replied that as the independent trade union had no claim to legal recognition, it had no right to represent collective labour interests. The Central Exchange confirmed the decision taken by the Employment Exchange at Bologna. Meanwhile the trade union of Molinella was dissolved for reasons of public order without the question of its members being admitted to the work referred to having been settled. In the appeal Freedom of Association 8 114 FREEDOM OF ASSOCIATION which the m a n a g e r s of the dissolved associations sent to the Minister of the Interior, they stressed once again the fact t h a t at t h e busy season for agricultural work, and at a moment when there was a shortage of labour, a t h o u s a n d persons could n o t find work for t h e simple reason t h a t they refused to be members of a Fascist t r a d e union. T h e y added t h a t even many employers deplored such a situation which is prejudicial t o the economic system of t h e country. Nevertheless, not only did their complaints remain fruitless, b u t t h e proprietors went so far as to eject several families from the dwellings which they had occupied for a number of years \ I t may certainly be said t h a t the e x a m p l e quoted is isolated — as a matter of fact, cases of dismissal or non-engagement for refusing to join official trade unions are becoming more and more frequent — and t h a t exceptional measures had to be t a k e n to meet a n exceptional situation, b u t it remains t r u e , a n d t h i s is the most serious consequence of the T r a d e Union Act which g r a n t s a monopoly of occupational representation to the sole recognised union, t h a t t h e right to employment runs the risk of being b o u n d u p with membership of a Fascist t r a d e union (cf. below, L a b o u r Charter, Section X X I I I , " Preferential Clauses of E m p l o y m e n t " ) . " De jacto " Monopoly for Mutual Aid, over Co-operative Institutions 'and Institutions Vocational Training and Social Welfare T h e Act of 3 April 1926, lays on recognised associations the obligation of a t t e n d i n g t o m u t u a l help and vocational t r a i n i n g , as well as merely defending occupational and economic interests. T h e Regulations of 1 July 1926 includes in the list of those enjoying legal recognition civil bodies whose members are of Italian nationality as well as co-operative u n d e r t a k i n g s of any kind. Penally, section 18 of t h e Regulations mentions among necessary expenses for associations those incurred for economic and social assistance, for moral and religious assistance, for national education and vocational training. I t also classes as compulsory contributions those made t o the National Institution for W o r k e r s ' Leisure, the National Institution for Maternity and Child Welfare, the National Institution Balilla (for Fascist y o u t h ) , and to the National Relief Institution for Assistance and Social Welfare. 1 Cf. Report of the Discussion of the Governing Body of the International Labour Office with regard to the. Molinella incidents. Geneva, 1926. ITALY 'IS T h e s e provisions show t h a t the Government attaches special importance to t h e different branches of welfare work. T h i s m a t t e r will doubtless be the subject of special regulations. T h e situation actually existing at present gives a hint of what future legal solutions may be. I t has been seen that before t h e beginning of the Fascist movement, the independent and the Catholic trade unions were rightly proud of the exceptional prosperity of their co-operative and m u t u a l aid movement. T h e Fascist trade unions, conscious of the importance of this movement, have spared no effort to absorb the existing institutions in the framework which they themselves have set u p . To-day the process of absorption is almost complete, t h a n k s to t h e suppression of t h e institutions connected w i t h t h e independent trade organisations \ T h e Italian Federation of Mutual-Aid Societies was dissolved by Decree of t h e Prefect of Milan on 23 November 1925 for the following reasons : Seeing that the Italian Federation of Mutual-Aid Societies and of Provident Funds, having its seat in Milan, has through its managers engaged in activities directly contrary to national policy, activities aiming at making an eminently and exclusively economic institution serve political ends to the detriment of the public authorities and the Government, the said Italian Federation of Mutual-Aid Societies and of Provident Funds, as well as all branches and federations of mutual-aid societies existing either in Milan or in the provinces, are hereby dissolved. T h e former independent federation was subsequently attached to the Institute for Mutual Aid and Social Welfare (Istituto di Mutualità e di Previdenza fascista). F o r similar reasons at the same time the National Co-operative League (Lega nazionale delle Cooperative) was dissolved and 1 Nevertheless, the co-operative and mutual-aid movement connected with the General Confederation of Labour has been the object of harsh criticism by the Fascist Party. It is accused of letting itself be governed by the Socialist Party, and hence having become an instrument for political propaganda by the State. Cf. M. PREZIOSI : Il cooperativismo rosso, piovra dello Stato ; Bari, Laterza, 1922. Cf. also the Parliamentary Report of the Committee of Enquiry into War Expenses, Rome, Government Printing Office, 1923. nò FREEDOM OF ASSOCIATION replaced b y the National Fascist Co-operative Institution \ The same fate awaited ithe institutions for medical and legal assistance, which were replaced by the N a t i o n a l Fascist Relief Institution for Social Assistance and Welfare W o r k . Finally, t h e w o r k m e n ' s clubs for recreation and vocational training, in so far as such existed, were replaced by t h e N a t i o n a l I n s t i t u t e for W o r k e r s ' Leisure (Opera nazionale del Dopolavoro). T h u s co-operative institutions and independent welfare institutions in all their forms are definitely centralised in the h a n d s of Fascist trade unionism which i n t e n d s under the supervision of t h e authorities to give t h e m uniformity of management so as to make t h e m more efficient. I t should be added t h a t only representatives of Fascist t r a d e unions and institutions have a seat on the public social welfare insitutions such as national insurance funds, national funds for industrial accidents, etc. But everything concerned either directly with the collective regulation of employment or more generally .with t h e problems of social welfare and w o r k e r ' s protection is henceforth subject to a uniform general system of regulation b y the institution of the National Labour Charter. T h e following document. 1 are the phases in the development of this Mr. Bottai, in a speech of i June 1927 in the Chamber of Deputies, gave the following information about the organisation of the National Co-operative Institution. He declared first of all that a Royal Decree was being prepared, according to which the co-operative associations for the •purposes of the legal organisation of collective labour relations must belong through their special bodies to trade associations. But in order to keep the co-operative movement free from the influence of individual interests which, in the working of the different confederations, might possibly prevail over the interests of the movement as a whole and in order to avoid dangerous interference and wasteful duplication of offices in the national co-operative institutions and the confederations, it has been decided that the power of representation for economic and technical purposes will belong solely to the National Cooperative Institution to which the different federations of co-operative associations must belong. The Minister of Corporations may moreover grant the National Co-operative Institution the same powers with regard to its members as the law grants to corporative bodies. Cf. " Central Co-operative Organisations in Italy ", in Industrial and Labour Injormation, Vol. X X I I , pp. 324 et seq. ITALY II7 T h e first m e e t i n g for the drafting of the L a b o u r Charter was held on 13 F e b r u a r y 1927 at the Ministry of Corporations under t h e chairmanship of Mr. Bottai, Under-Secretary of State. T h e general discussion ended in the drawing u p of a questionnaire, which was to b e discussed at successive meetings. T h e following points in t h e p r o g r a m m e were p u t down for preliminary study : 1. Co-ordination and definition of the work for social assistance and vocational instruction among trade associations, national institutions, and the Ministry of Corporations. 2. Extension of social welfare work ; duties which the trade associations may assume in this sphere ; uniformity in insurance policies ; possible transfer of accident insurance from private funds to the trade associations. 3. Co-ordination and discussion of the laws for the protection of workers ; opportunity for codifying the same ; method to be followed ; functions which may be assumed by trade associations in the supervision of labour. 4. Functions of the trade associations in the economic system ; co-ordination of economic and credit institutions in co-operation with the central corporative bodies ; economic attributes of the trade organisations in connection with the functions actually exercised by the State in this matter ; regulation of prices, reduction of the cost of production. 5. Standards for fixing wages in relation to the output of the ent»iprise and the depreciation of the currency. 6. Procedure for drafting collective contracts of employment ; sphere of application of collective contracts, and general conditions .of labour and of conciliation of collective disputes as regards institutions set up by the Act of 3 April 1926, No. 563, and the Regulations for its enforcement. 7. General provisions of the individual contract of employment (periods of probation, dismissal, holidays, hours of work, transference of the undertaking, etc.) ; limits of legal intervention by the State in the realm of the collective contract and with regard to new functions granted to this contract. 8. Organisation of the jurisdiction over individual labour disputes, taking into account the general rules concerning contracts of employment and the indefeasible right of the State to exercise legal protection over its citizens. 9. System of co-operative societies in their relations with the State and with the Fascist trade union organisation. 10. Institution of official labour exchanges ; preferential classes of employment l . T o make quite clear the fundamental importance attached by the Fascist regime to the institution of the N a t i o n a l Labour Charter, M r . Mussolini had addressed t h e following message to t h e members 1 Lavoro d'Italia and Corriere della Sera, 12 Feb. 1927. ii8 FREEDOM OF ASSOCIATION of the preparatory committee which defines once again the fundamental principles of the co-operative organisation : Realisation of the equal rights of all social classes — equality which has never been secured by liberal and democratic systems — and proclamation of the solidarity of all citizens in view of the higher interests of their country, interests which form the limit and the standard of all individual rights from the right of property and the > right of private profit to the right of work and the right to wages. Raising the occupational association (trade association) to the dignity of a public institution invested with power to regulate the interests of the category of citizens which it represents and with social duties which make it an organ of economic policy and of national education. The principle to be followed in this matter is : maximum functions for the »State, no power against the State. Responsibility of the citizens belonging to various associations towards the trade association as regards careful observation of the rules governing the work and production. Responsibility of the trade associations towards the State as regards the discipline of the occupational categories which they organise, regulate and represent ; duty of the trade associations to maintain this discipline among their members, if necessary by a revision of their rules. Co-operation of the trade associations with the Ministrv of Corporations, which is an organ of political and social reconstruction in. Italy, to ensure that the State may effectively control all social forces and obtain the maximum of solidarity and discipline among Italians, both in the moral and the economic sphere. Under the Fascist system, which is an organic system, the declaration of rights and duties concerns both the citizens considered individually and the associations in which the citizens are grouped and which constitute within the framework of the corporative organisation the fundamental element of the system. The legal and political consequences of these principles will be studied in the course of successive meetings and made concrete in the Labour Charter. They will develop the corporative system in the framework determined for it by the sovereign Fascist State and the duties of cooperation and organisation granted to the confederations of trade associations. The first conclusion which can be drawn from these principles is that the Fascist system appears, thanks to the institution of the central corporative bodies, as the first which grants the workers the right of participation in the control of production, that is to say, in the supervision of the whole economic system of the nation and not only in that of every single undertaking. This it grants as a right and a duty for the worker, for he is urged to subordinate his own claims to the higher needs of the national economic system. Moreover, within the limits of these rights and these duties, that is to say, within the limits of the corporation of the Fascist State, there arises a new economic constitution, the exact form of which cannot be defined at present but which can already be guessed at, under the influence of the collective labour contract and the work of co-ordination of production which is being undertaken by the trade associations and the corporations. T h e L a b o u r Charter was definitely promulgated on 21 April 1927. T h e following passages from the report of Mr. Bottai, Under-Secretary of State in t h e Ministry of Corporations, w h i c h accompanies the document, show its legal n a t u r e and its political and social scope. ITALY HC The idea of a Labour Charter, which the Head of the Government had conceived as soon as the Regulations for enforcing the Act on the organisation of collective labour relations had been promulgated, is connected with the whole original conception of the Fascist Revolution. When the news spread that the Government and the Party intended to put this idea into practice and that a Labour Charter would, by the decision of the Fascist Grand Council, be promulgated on the occasion of the anniversary of Rome, year V of the first national Italian era, the greatest uncertainty reigned in many circles as t o its contents. Certain persons were in favour of setting up a Labour Code. According to this conception, the Labour Charter would have been the result of a systematic revision and a compilation in a single text of the legislation in force regarding the supervision of labour, of social assistance, welfare work and insurance, completed by the recent legislation on trade organisation and collective contracts of employment. In reality, the principles laid down by the Labour Charter are based on another idea. Fascism, which is essentially revolutionary and political, could not be satisfied with a technical and legal systématisation of the regulations issued during the last decades with regard to labour legislation. It aspired to something higher than a legal document. It was a question of giving concrete form to our aspirations, which are already almost ten years old, and to proclaim to the Italian people and to the world the reasons for its existence and for its peculiar historical and political individuality. That is why the Labour Charter could not be drafted by the usual procedure for law. It was destined not to have the external form nor the immediate value of an Act, but to express the will of the new organisms created by the Revolution and to constitute the basis not only for the guidance of future legislation but for a new point of view for the whu'e society of the nation. Objectively, the Labour Charter must be considered as a fundamental act of the Government, resulting from the constructive forces of the Revolution. . . . T h e report, after recalling t h e different phases in the drafting of the Labour Charter and giving a summary of its contents, concludes : The organisation of labour — and by labour is meant all activities tending to increase the moral and material wealth of the nation — constitutes, therefore, the fundamental aim of the Charter. Thanks to it, all citizens grouped in trade organisations will be incorporated in the Fascist State. The interests of the most humble workers, those connected with contracts of employment and with manual labour, will be placed on the same level as the interests of industrial undertakings and will, for the first time, be included, not only in private law in conformity with the democratic programme, but also in public law and more definitely still in constitutional law. It is for the State to carry into practice the principles enshrined in the Charter, but certainly the National Council of Corporations instituted by the Decree of 2 July 1926 will contribute to this end, as also the Ministry of Corporations, which is the supreme body in the whole system of full collaboration which is identified with the State. The judgment passed on the Labour Charter, a document without precedent in constitutional history, is a question for the future, but already we consider it as the most valuable result of the mutual interest and the confident co-operation with the State which the social classes have ever realised up to the present either in Italy or abroad. 120 FREEDOM OF ASSOCIATION I t is clear from these quotations t h a t the L a b o u r Charter does not so much codify legal rules properly speaking, b u t rather lays down certain general principles which m a y later b e translated into legislation, b u t which already have executive legal value and shall be enforced i n t h e contractual relationships of t h e parties. T h e following is t h e t e x t of t h e L a b o u r Charter approved b y t h e Directorate a n d the G r a n d Fascist Council. T H E CORPORATE STATE AND I T S ORGANISATIONS X I. The Italian nation, thanks to its strength and its history, is an organism with specific ends, a separate life, and methods of action superior t o those of the individuals or groups which compose it. It constitutes a moral, political and economic unity the complete realisation of which is found in the Fascist State. II. Labour in all its forms, intellectual, technical and manual, is a social duty. On this count, and on this count alone, it is protected by the State. Production as a whole must be regarded as a unit from the national point of view. Its objectives are all of the same kind, and may be summarised as the well-being of producers and the development of t h e national power. III. Occupational or trade union organisation is free, but only trade associations which are legally recognised and subject to State control are entitled legally to represent all the categories of employers or workers for whom they are constituted, to protect their interest vis-à-vis the State or other occupational associations, to conclude collective labour agreements which are compulsory for all persons belonging to their category, to impose contributions on their members, and on their behalf to exercise delegated powers in the public interest. IV. The concrete expression of solidarity between the various factors in production is the collective agreement, through the conciliation of the opposing interests of employers and workers, and their subordination to the higher interests of production. V. The Labour Tribunal constitutes the organisation through which the State intervenes to settle labour disputes, whether in connection with the observance of agreements or other existing provisions, or in connection with the determination of new conditions of labour. VI. Legally recognised trade associations secure juridical equality between employers and workers, and maintain and seek to improve t h e regime of discipline in production and labour. The corporations are t h e unifying organisation of the forces of production, and fully represent its interests. In virtue of this plenary representation, the corporations are legally recognised as State organisations, since the interests of production are national interests. As representatives of the united interests of production the Corporations themselves may issue binding regulations governing the discipline of labour relations and the co-ordination of production whenever they have received a mandate from the affiliated associations. 1 Cf. G. BOTTAI : La Carta del Lavoro (Commentary on the Labour Charter). Studi e documenti di diritto e economia del lavoro, Series B» Document No/ 3. Rome, Diritto del Lavoro, 1927. ITALY 121 VII. The corporate State considers private enterprise in the sphere of production as being the most effective and useful method of securing the interests of the nation. Since private organisation of production is a work of national importance, the head of an undertaking is responsible to the State for the development of production. From the collaboration between the forces of production is derived a reciprocity of rights and duties. The worker, whether a technician, a salaried employee, or a manual labourer, collaborates actively in the work of an economic under•taking, and the direction of the undertaking devolves upon the employer, who is responsible for it. VIII. Trade associations of employers are required by all means in their power to increase and improve the production of the goods which they produce, and to reduce the cost thereof. The representatives of persons who carry on a liberal profession or an art, and associations of employees in public undertakings, are required to combine in protecting the interests of art, science and letters, in the improvement of production, and in the achievement of the moral objects of the corporate system. IX. State intervention in economic production takes place only when private enterprise is wanting or inadequate, or when the political interests of the State are at stake. Such intervention may take the form of control, encouragement or direct administration. X. In the event of collective, labour disputes, legal action cannot take place unless the corporate organisation has first made attempts at conciliation. In individual disputes concerning the interpretation and enforcement of collective labour agreements, trade associations are allowed to proffer their good offices for conciliation. Competence in such disputes belongs to the ordinary courts, with the assistance of assessors appointed by the trade association concerned. THE COLLECTIVE LABOUR A G R E E M E N T AND LABOUR GUARANTEES XI. Trade associations are compelled to regulate labour relations between the categories of employers and workers whom they represent, by means of the collective agreement. The collective labour agreement is concluded between associations of the first degree, under the direction and control of the central organisations ; but the association of the first degree may be replaced by the association of the higher degree in the cases provided for by law and by the rules of the associations. All collective agreements must, under pain of being null and void, contain precise rules concerning disciplinary relations, the period of probation, rates of wages and the methods of paying wages, and hours of work. Determination of Fair Wages XII. Trade union action, the conciliation work of the corporate organisations and the awards of the labour courts all constitute guarantees that wages will correspond to the normal requirements of life, to the possibilities of production and to the output of labour. The work of determining the wage is carried out without reference to any general rules, and is entrusted to the parties to the collective agreement. XIII. Data established by the public departments, by the Central Statistical Institute, and by the legally recognised trade associations,. concerning conditions of production and of labour, the situation of the money market and variations in the standard of existence of the workers will, when co-ordinated and collated by the Ministry of Corporations, supply the criteria for the reconciliation of the interests of the various categories and of the various classes among themselves, and also of their interests in comparison with the higher interests of production. 122 FREEDOM OF ASSOCIATION Piece-Rates XIV. Payment should be made in the manner which best meets the needs of the worker and of the undertaking. When payment is calculated on a piece-rate basis and is made for periods longer than a fortnight, accounts by the fortnight or the week are required. Night work not carried out in regular shifts is paid for at a higher rate than day work. When payment for labour is made on a piece-rate basis, the piece-rates must be determined in such a way that the hard worker with a normal capacity for work receives a minimum remuneration higher than the basic wage. The Weekly Rest XV. The worker is entitled to a weekly rest coinciding with Sunday. Collective agreements will enforce this principle, taking account of existing legislation and of the technical requirements of the undertaking and, within the limits of these requirements, will take steps to secure that civil and religious holidays are respected in accordance with local tradition. Hours of work must be fully and strictly observed by the worker. Paid Holidays XVI. After one year's uninterrupted service, a worker in a continuous process undertaking is entitled to an annual holiday with pay. Dismissal Indemnities XVII. In continuous process undertakings the worker is entitled, in the event of his dismissal through no fault of his own, to an indemnity proportionate to his years of service. Such indemnity is also due in the event of the worker's death. # Continuation of the Contract of Employment in case of or Transfer of the Undertaking Sickness XVIII. In continuous process undertakings the transfer of the undertaking does not cancel the contract of employment, and the staff of such an undertaking preserve their rights as against the new proprietor. Similarly, sickness on the part of the worker, which does not exceed a certain period, does not cancel the contract of employment. A worker may not be dismissed because he is called up for service in the army or in the militia. Internal Discipline XIX. Infringement of discipline and acts committed by workers calculated to disturb the normal working of the undertaking are punished, according to the gravity of the delict, by fines, suspension from work and, in serious cases, immediate dismissal without an indemnity. The cases in which the employer may inflict fines, suspend from work or dismiss on the spot without indemnity will be specified. Probation Periods XX. When a worker is engaged, he must undergo a period of probation, during which period the agreement may be cancelled on either side, provided only that work actually done during the period in question must be paid for. I23 ITALY Extension of the Collective Agreements to Home Workers XXI. Collective labour agreements are extended, both as regards their benefits and the discipline which they impose, to home workers also. Special rules will be laid down by the State for securing conditions of cleanliness and hygiene for home work. EMPLOYMENT EXCHANGES XXII. The State is the only body which can ascertain and control the state of employment and unemployment among the workers, which is the final index of conditions of production and of labour. Preferential Clauses X X I I I . The joint employment office is under the control of the corporate organisations. Employers are compelled to take workers registered with these offices, and are entitled to choose them from a list of persons registered, giving the preference to members of the Fascist Party, to Fascist trade unionists, and also to seniority of registration. Occupational Selection XXIV. "Workers' occupational associations are compelled to make a certain choice among the workers, with the object of improving continuously their technical capacity and their moral worth. Supervision of Workers' Protection Acts XXV. The corporate organisations see to the observance of legislation concerning the prevention of accidents, and labour regulations on the part of all the individuals who are members of an affiliated association. Welfare, Social Assistance, Education and Vocational Training XXVI. Welfare is an important manifestation of the principle of collaboration. The employer and the worker must contribute proportionately to welfare charges. The State, through the medium of the corporate organisations and the trade associations, will, so far as possible, coordinate and standardise the system and the various welfare insitutions. XXVII. The Fascist State proposes : (1) to perfect the system of accident insurance ; (2) to improve and extend maternity insurance ; (3) to set up a system of insurance against occupational diseases and tuberculosis, as a first step towards a general system of insurance against all diseases ; (4) to perfect the system of insurance against involuntary unemployment ; (5) to adopt a special insurance system for endowing young workers. XXVIII. It is for the workers' associations to protect the interests of their members in administrative and judicial matters connected with accident insurance and social insurance in general. In collective agreements, whenever technically possible, mutual benefit funds for sickness will be set up, fed by contributions from employers and workers, and administered by representatives of both, under the control of the corporate organisations. X X I X . It is both the right and the duty of the trade associations to assist the persons they represent, whether members or non-members. The trade associations must exercise their functions of assistance directly through the medium of their own organisations, and may not delegate them to other bodies or institutions, except for reasons of general interest 124 FREEDOM OF ASSOCIATION which go beyond the scope of the interests of any single category of producers. X X X . Education and instruction, in particular, the technical instruction of the persons they represent, whether members or nonmembers, is one of the chief duties of the trade associations. They must collaborate in the work of the various National Workers' Spare Time Institutes, and in other educational schemes. After the promulgation of t h e Charter, Council adopted t h e following resolution : the Fascist Grand The Grand Council expresses the wish that the Government should, on the initiative of its Head, the Minister of Corporations, and in agreement with the other Ministers concerned, prepare the necessary legislative measures for the promulgation of the principles affirmed to-day, the object of which is to develop Fascist legislation on the legal disciplining of collective labour relations and on the corporate organisation of the State ; and decides that, in the present year, there should be concluded, either in a new or in a modified form, collective agreements on the basis of the clauses contained in the " Charter ", and that the duration of the agreements should be such as to allow undertakings the possibility of a sufficient lapse of time to adapt themselves to the new financial situation and to the difficulties of international competition. T h e H e a d of the Government, for his p a r t , declared t h a t the Charter constituted a document of fundamental importance for the Fascist system and that it might, in its different sections, be transformed into law, b u t t h a t it already possesses executive legal value. H e expressed his conviction t h a t the provisions regarding collective contracts of employment, labour exchanges a n d social assistance would quickly be realised. Finally, the Fascist Grand Council, at Mr. Mussolini's suggestion, adopted t h e following resolution : On the occasion of the promulgation of this Charter, one of the basic documents of the Fascist regulation, inasmuch as it lays down the rights and duties of all forces of production, the Grand Council seizes the opportunity to bring it to the attention of the whole Italian people and of all those throughout the country who are concerned with the social problems of our time because, by this act of will and faith, the Black Shirts show that the forces of production may be harmonised and that their harmony is the sine qua non of their fertility. Fascism thus demonstrates that, as opposed to the absurd and ruinous Socialist demagogies which are everywhere bankrupt, disconnected and impotent, its effect is to raise the moral and material standard of the most numerous class in society which has consciously taken its place in the national existence, both in theory and in fact. A n examination of this document and the official commentaries shows t h a t the social reform established by the L a b o u r Charter not only affects vocational organisation, as has already been shown, and I25 ITALY in a more general w a y t h e regulation of t h e whole economic production of t h e country, b u t even t h e political constitution of t h e State. T h e principles laid down in t h e Charter, which complete a n d define t h e principles of the T r a d e Union A c t of 3 April 1926 a n d t h e T r a d e Union Regulations of 1 July 1926, will, w h e n translated into law, form t h e basis of t h e future Fascist Labour Code \ P A R T P L A Y E D I N ECONOMIC L I F E I t h a s been noticed in all countries where trade "unionism represents a social force t h a t it t e n d s to t a k e a direct share in t h e regulation of economic life. T h e public authorities, for their p a r t , realising t h e value of such co-operation, give t h e trade associations of employers and workers a share in drawing u p social and economic legislation. T h i s co-operation, which tends more and more to become p e r m a n e n t and official, is a result of t h e trade union representatives being elected to consultative and technical bodies such a s t h e H i g h e r Economic Council in F r a n c e , t h e Provisional Economic Council in Germany, t h e Vocational Committees in Austria and L u x e m b u r g , e t c . Similarly, the Italian State, which wishes t o exert a more direct influence than any others on social and economic relations, and intends t o take t h e work of economic reorganisation u n d e r its o w n direct control, gives t h e recognised trade unions an important share in this work. T h e proposal of t h e Committee of E i g h t e e n h a d already granted t h e corporative bodies important economic duties while t h e T r a d e Union Regulations of 1 July enumerate a m o n g t h e powers granted to t h e central liaison bodies t h a t of stimulating, encouraging, and subsidising every attempt of t h e trade associations t o co-ordinate and organise production. Finally, t h e recognised trade unions have, according to t h e L a b o u r Charter, " t h e r i g h t to s h a r e in the regulation of production ; t h a t is t o say, in t h e control of t h e whole economic system of t h e nation. " T h e Minister of Justice, d u r i n g t h e Parliamentary discussion on t h e Act of 3 April 1926, described this aspect of trade union activity as follows : 1 It is useful to compare this attempt at a uniform regulation of labour conditions in Ital\- with the provisions of the Russian Labour Code (cf. INTERNATIONAL LABOUR O F F I C E : Legislative Series, 1922, Russ. 1). 126 FREEDOM OF ASSOCIATION The State [he said] has sometimes, particularly in war-time, found it necessary to assume economic functions as a result of certain urgent necessities. . . . But the day may come when the nation will again be called upon to organise itself into a unity for some great effort. When that day comes, the trade unions will give us men who are technically trained ; that is another special and important task of the trade unions 1 . But tins work of organisation is slow. A t present it depends on the reform of the Government and the institution of a H i g h e r Council for National Economy and of Provincial Economic Councils. T h e reform of the Government consists in the union of the Ministries of Agriculture, I n d u s t r y , L a b o u r and Commerce into one single department : T h e Ministry of National E c o n o m y . By this reorganisation the G o v e r n m e n t intends to establish a uniform system of m a n a g e m e n t of t h e different factors in national production. The Higher Council of National Economy set up by Royal Decree of 6 September and 2 December 1923, completed by the Legislative Decree of 4 September 1925, consists at present of sixty m e m b e r s divided into four sections : agriculture and forestry ; industry ; commerce, credit a n d private insurance ; labour and social welfare. T h i s Council, whose members are appointed directly by the Government, b u t in which recognised organisations of employers and workers are represented by several members, has only consultative powers. A more important reform for t h e future would seem to be the creation of the Provincial Economic Councils b y the Act of 18 April 1926. Besides the members who belong to t h e m by rights, recognised trade associations have the right t o appoint a certain number of delegates to these Councils. I n the same way as in the H i g h e r Council of National Economy, the Provincial Economic Councils are divided into four sections : industry, agriculture, commerce, labour. T h e Provincial Councils are called upon to assume all the attrib u t e s which formerly belonged to the Chambers of I n d u s t r y and 1 Speech of Mr. Rocco, Minister of Justice, in the Chamber of Deputies, in Trade Union Reform in Italy, p. 128. Cf. provisions of the Military Act with reference to the civil mobilisation of the country : speech quoted by Mr. Belluzzo, Minister of National Economy, in the Chamber of Deputies. ITALY 127 Commerce, t h e Provincial A g r a r i a n Councils, the agricultural committees, e t c . T h e y have also power to take a n y steps which seem useful for the creation of educational institutions, services and societies for the benefit of production and of the wage e a r n e r s ; to control under the Government the action of existing bodies carrying out social aid and also to take p a r t in d r a w i n g u p collective and agrarian contracts. T h e action of these councils aroused, at first, t h e hostility of older bodies, particularly of the Chambers of Commerce, who very reluctantly agreed to forfeit their power. I t is, moreover, necessary to amend the constitution of the Provincial Economic Councils in connection with the administrative reform of the province at present under consideration. (See below, page 128 \ ) P e r h a p s more important t h a n the reforms mentioned are the steps t a k e n by the Government, such as t h e recent regulation of trade with a view to m a k i n g the exercise of a trade subject to a licence granted by the public authorities, or again the Legislative Decrees constituting the National I n s t i t u t e for E x p o r t a t i o n , the National I n s t i t u t e of Silk Industries, and the Society for Research into Deposits of Petrol and Combustibles. All these institutions work w i t h the support and under the direct control of the State. It is sufficient to mention these measures, which are very characteristic of t h e new economic policy of t h e Government, b u t which would require too much time to study in detail. 1 A new Legislative Decree was indeed promulgated on 16 June 1927, No. 1,071 (Gazzetta Ufficiale, 7 July). The new regulations, while respecting in general the system set up by the Act of 13 April 1926, No. S31, instituting Provincial Economic Councils, introduced, however, certain important amendments. In the first place, it establishes in the capitals of other provinces under the direction of the Ministry of National Economy, Provincial Economic Committees composed of a chairman and other employees, who are all State officials. These committees supervise the carrying out of measures taken by the Ministry, and under its control work for the economic development of the province. At the same time they act as secretariats for the provincial economic councils. The chairmanship of these councils is given to the Prefect assisted by a vice-chairman and heads of sections appointed by the Minister of National Economy. The Councils are composed of twelve to twenty-eight members appointed by the provincial institutions, whose aims are similar to those of the economic councils and of the legally recognised trade associations. Membership is also granted with consultative powers to certain officials of the province (the chairman of the itinerant agricultural committee, the inspector (provveditore) of Public Works, the Provincial 128 FREEDOM OF ASSOCIATION P A R T PLAYED IN POLITICAL L,IFE T r a d e union legislation contains the germ of one other reform, political representation b y the trade associations. A first step in this direction has been t a k e n by the institution of governors and podestas in all the communes in I t a l y . T h e podestas and the governors appointed by Royal Decree will t a k e over, in future, all t h e functions which the communal and provincial laws formerly granted to t h e mayors, to the aldermen, and to the municipal authorities. I n carrying out their duties, t h e governors and podestas will be assisted by an advisory council and t h e council of the podestas. I n communes of less t h a n 100,000 inhabitants, this Council will consist of a m i n i m u m of ten, or a m a x i m u m of twenty-four members ; in communes of more than 100,000 inhabitants, the n u m b e r m a y be increased to forty. W i t h i n the limits indicated above, the prefect will decide on the n u m b e r of councillors for each commune. H e also will appoint t h e m , choosing them from a list of three names for each place vacant. T h e list will be d r a w n u p b y the legally recognised trade associations in t h e communes. Nevertheless, the r i g h t to appoint the councillors of the podestà belongs to the Minister of the Interior if the population exceeds 100,000 inhabitants. F o r reasons of public order or of a n administrative n a t u r e , the Minister of the Interior may order t h e council to be dissolved or suspended. Councillors, who, without justification fail to attend three successive meetings, are declared to have forfeited t h e i r m a n d a t e . T h i s forfeiture is pronounced either b y the Minister of the Interior or by t h e prefect, as the case may be. T h e councils of the podestà have only advisory powers. I n communes of less than 100,000 inhabitants, t h e opinion of the council must be taken in all Doctor, the Regional Railway Director, the Factory Inspector, the Harbour Masters, etc.). In the course of the year 1927, the Extraordinary Commissioners appointed by the Chamber of Commerce shall give up their duties, which will be taken over by the Prefects, assisted by the vice-chairman and the heads of sections appointed by the Ministry of Economy, who will proceed without delay to set up councils. From 1 Jan. 1928 onwards, the sphere of action of the Chambers of Commerce and the Provincial Economic Councils, which are to replace them, will coincide with the area of the province. ITALY I29 cases where according to terms of. Acts previously in force, the measure in question would have belonged to the exclusive competence of the communal council. I n communes with a larger population, the opinion of the council is necessary in the cases ' provided for by section 217 of the Communal and Provincial Act of 4 F e b r u a r y 1915, t h a t is to say, as regards the funds, the budgets of t h e communes and the direct appointment of agents to the public services. If the step taken by the podestà has not been approved by the council, an official report will be drawn u p and the matter must be submitted to the prefect for his approval. T h e decisions of the council are valid only if at least half the councillors were present at the meeting, and they shall be taken b y an absolute majority. Municipal reform will soon be completed by the administrative reform of the province. A proposal at present under consideration seeks to set u p on a basis similar to t h a t established by the reform of the commune, a new administration which will unite all the attributes hitherto belonging to t h e president of t h e provincial deputation, t h e body of provincial deputies (Deputazione provinciale) and the provincial council (Consiglio provinciale). T h e president of the new body will be appointed by the Government and assisted by the provincial council, composed generally of representatives of the recognised trade associations. I t appears, moreover, from communications in the press, t h a t the Institution of Provincial Economic Councils will be connected with t h e new provincial body, which will t h u s possess b o t h economic and administrative functions. But the municipal and provincial reforms are only preliminary steps for the Parliamentary reform. T h e President of the Council has announced in t h e following terms the impending transformation of the political State into the corporative State : Our aim [he stated] is the corporative State. To confer the vote on a person who has reached his twentieth year seems to me absurd. The only persons who ought to share in the direction and administration of the State are those who work, who produce, and who, in any manner whatsoever co-operate with the State. We wish to set up a corporative Chamber without any opposition. We neither wish nor require anypolitical opposition. On the other hand, I accept healthy constructive criticism as an absolute necessity because it is a kind of effective cooperation. Freedom of Association 130 FREEDOM OF ASSOCIATION I n another interview, he expressed his ideas in t h e following manner : The future Italian Parliament will be the expression of the new corporative State which is at present being formed. Its powers will be renewed and defined, it will be better adapted to the duties which it is called upon to fulfil, and it will represent more truly the will of the nation. The right of suffrage will be exerted through the corporations as the citizens will have no right to vote as electors but only as workers and producers. T h e reform supported by the President of the Council seems about to be accomplished. F i r s t of all, it had been intended t o proceed with a partial reform of t h e Senate on a corporative basis ; but this proposal has been definitely abandoned a n d t h e present constitution of the Senate will remain without any change \ T h e reform of the Chamber of Deputies on the other h a n d , appears according to official information in the press, to be as follows. T h e Chamber of Deputies will be transformed into a corporative assembly. T h e right to vote will be a privilege only of producers and more generally of all those who co-operate with the S t a t e . T h e election will take place in two steps : F i r s t of all, each elector will appoint his m a n d a t o r y within the official b o d y to which he belongs ; those elected in this first step will then be called upon to elect representatives t o the Chamber. I t is not yet k n o w n w h e t h e r it will be the national or the provincial area which will form the basis of the corporative assembly, nor is it known by w h a t means the recognised associations will appoint the candidates for the corporative assembly. B u t it already seems certain t h a t only members of official trade associations will possess the right to vote. I t is well, moreover, to await the publication of the Government proposals before j u d g i n g t h e system of w o r k i n g and t h e political and social scope of the reform announced. By all those actions and proposals which complete the T r a d e Union Act of 3 April 1926 and the Regulations of 1 July, the monopoly of Fascist trade union representation is completely realised in all spheres, social, economic, and political. 1 The Senators are appointed by the King at the suggestion of the Government and chosen from certain classes of important officials. generals, admirals, university professors, etc. CHAPTER IV LEGAL R E G U L A T I O N OF ASSOCIATIONS OF STATE EMPLOYEES T h e Act of 3 April 1926 and the Legislative Regulations of 1 July exclude from legal recognition : (1) associations of State employees and employees in similar undertakings ; (2) the former independent trade unions. T h e legal regulation of each of these classes will be briefly examined. T h e principal provisions regarding associations of State employees and employees in public u n d e r t a k i n g s are as follows : T h e Royal Legislative Decree of 6 November 1Q26, which annuls, but reintroduces textually t h e provisions of the Act of 26 November 1925 on the regulation and the action of associations, societies and institutions, and the conditions under which officials of ithe State, provinces, communes and institutions controlled by the State, provinces and communes may be members. T h e Act of 24 December T h e Legislative 1Q25, on the dismissal of State officials. Regulations of 1 July 1Q26, Title 6, on associa- tions of employees of t h e State and other public establishments. Section 216 of the Royal Decree of 6 November 1926 forbids officials to belong to secret societies. I t states : Officials, employees and civil and military agents of the State of any class or any grade, and officials, employees and agents of the provinces, communes or establishments controlled by the State, provinces and communes, who belong, even as ordinary members, to associations, societies or institutions constituted within the Kingdom or without it, whose activity is even only partially secret or hidden, or whose members are bound by any secret oath, shall be dismissed, discharged or cashiered. I32 FREEDOM OF ASSOCIATION Subsection 2 of t h e same section compels officials, on pain of heavy disciplinary sanctions, to announce their membership of societies of any kind : Officials, employees, military and civil agents, as described above, must announce if they are members, or if they have been members, even ordinary members, of associations, societies or institutions of any kind constituted or existing within the Kingdom or without it. This declaration must be made to the Minister, in the case of State officials, and to the prefect in all other cases if it is demanded from them individually. The aforesaid officials, employees, civil and military agents who do not reply to this request within a space of two days from the date of notification will be punished by suppression of their salary for a period of not less than fifteen days and not more than three months. If the official has knowingly given false or incomplete information, the stoppage of his salary is extended to six months. I n virtue of t h e Act of 24 December 1925, the Government has the power, according to section 1, to dismiss, even apart from the cases provided for by existing laws, officials, employees and agents of all classes and all grades, civil and military, in any branch of the State service who, as a result of their conduct, whether in the exercise of their duty or outside it, do not give a complete guarantee of faithfully carrying out their d u t y , or have placed themselves in a position incompatible with the general aims of the Government. Dismissal is ordered b y a Royal Decree on the suggestion of the competent Minister. N o appeal in the case of be made to the All other legal is allowed against t h e provision of section 1 except incompetence or violation of the law, w h e n it m a y Council of State, or in exceptional cases, to the K i n g . or administrative action is forbidden. I t is necessary to complete these provisions by a whole series of Legislative Decrees concerning the classes of public agents, not included in the general list of officials, such as t h e Legislative Decree of 29 November 1925 on the dismissal of the staff of the public transport services which have been handed over to individual undertakings, or again the Legislative Decree of 23 December 1926 . concerning the right of removing seamen from the register. A m o n g other provisions these Decrees give either Government authorities or heads of enterprises the right to dismiss agents w h o , b y their political attitude, are in a position of moral incompatibility with the aims of the Government. Now, the fact of belonging to an independent trade union has very often been interpreted as constituting an infraction of these various legislative provisions and been punished ITALY J 33 by dismissal. But the example which shows most clearly the desire of the law to institute everywhere and always the same political and moral conformity with regard to associations is given by the measures regarding the dismissal for political reasons of university professors. One of the provisions of the Legislative Decree makes it compulsory for university professors to take an oath of fidelity to the Government at the moment of taking up their duties. They must, in particular, promise not to belong either at present or in the future to any association or secret society or to any political party which is opposed to the Government. Finally, the Regulations of i July 1926 devote a special chapter to associations of State employees. Associations of employees of the State, provinces, communes, public charitable institutions, the autonomous State railway undertaking, the postal, telegraph and telephone service, the Deposit and L/Oan Bank, the Bank of Issue, the Banks of Naples and Sicily, institutions and establishments haying public functions and savings banks must, if their constitution is permitted by law, be authorised by Decree of the Head of the Government in agreement with the Minister under whom the persons concerned are serving in the case of associations of State employees, by Decree of the Minister of the Interior for associations of wage earners in local public establishments working in two or more provinces, by Decree of the prefect for associations of wage earners in local establishments working within the area of one province (section 92). The conditions laid down in section 1 of the Act of 3 April 1926 — conditions concerning the numbers, the aims pursued and especially the guarantees of ability, moral character, and sound patriotism — must be fulfilled. Moreover, the higher and lower grade associations including State employees and employees of other services and public establishments must always be authorised by Decree of the Head of the Government in agreement with the Minister of the Interior and other Ministers concerned. Therefore, independent trade unions must demand special governmental authority if they include amongst their members State employees. Associations of State employees are subject to yet other restrictions. As for legally recognised trades unions, authorisation cannot be granted except to one single association for each class of public employees, and even this authorisation does not bring recognition in 134 FREEDOM OF ASSOCIATION terms of the Act of 3 April 1926 '. Moreover, associations of State employees are not allowed to enjoy the provisions regarding collective contract and Labour T r i b u n a l s (section 92, subsections 3 and 4) 2 . I t is clear from all these provisions that the constitution of associations of State employees and employees of public utility services is left to the discretion of the political and administrative authorities who, in fact, do not g r a n t authorisation except for orthodox political associations 3. Once authorisation has been granted the existence of associations of State employees remains none the less subject t o regulation by 1 The Head of the Government has made the following comments on this provision : " In authorising a single association, it was the object of the Government to determine what was the association which, from all points of view, gave the best guarantees that it would collaborate with the Government in the various reforms in which the staff and the administrations concerned were interested. For practical reasons, and in order to avoid harmful competition, the Government did not think it desirable to authorise different organisations, and in this it was adopting a criterion which had been adopted by the trade unions themselves. The name and quality of "Fascist ', which these association had spontaneously adopted, meant only that it was their intention to work in the spirit of the Fascist system for the supreme gtood of the nation. Moreover, as in the case of the trade unions, public employees were entirely free to decide whether or no they would become members of the authorised associations. " (Cf. Industrial and Labour Information, Vol. XXI, p. 399.) 2 It was pointed out during the Parliamentary' discussion that the associations of State employees (including such classes as the employees of the autonomous railways, whose economic and contractual position is in many respects similar to that of employees of private undertakings) are deprived of the advantages of the regulations regarding collective contracts and are therefore placed in an inferior position to other social groups. The Minister of Justice said, in this connection, that the regulation of legal relationships between the State and its officials would form the subject of later legal provisions intended to complete the present system (Provincial Administrative Committee and fourth section of the Council of State) as regards administrative justice. 3 See Decree of Authorisation of Trade Associations of State Employees (Gazzetta Ufficiale, 24, 28 and 31 Aug., 24 Sept. and 18 Oct. 1926). Legal authorisation has been granted in particular to the following associations : National Fascist Association of State Railwaymen ; National Fascist Association of Postal and Telegraph Employees ; National Fascist Association of State Telephonists ; National Fascist Association of Primary School Teachers ; National Fascist Association of Tax Collectors, etc. ITALY ISS the State administration. This authorisation, according to the last subsection of section 92, may at all times be annulled. Moreover, according to section 96, the Head of the Government, in agreement with the competent Minister, the Minister of the Interior, and the prefect, may always order the dissolution of an association of State employees even if it has been authorised, when its action is incompatible with the order and discipline of the service. Any offence against the order of the Head of the Government, the Minister or the prefect is considered as a serious breach of discipline and punished by dismissal. CHAPTER V THE LEGAL AND" DE FACTO " REGULATION OF INDEPENDENT TRADE UNIONS Section 12 of the Act of 3 April 1926 allows former independent trade unions to exist as de facto associations: Associations of employers, wage earners, artists, or persons exercising a liberal profession, which are not legally recognised, exist as de facto associations in conformity with existing legislation except those mentioned in subsection 2 of the preceding section. These associations are subject to the provisions of Legislative Decree No. 64 of 24 January 1924. T h e Legislative Decree to which section 12 alludes inaugurated to some e x t e n t the new trade union policy of the Government towards independent t r a d e unions. I t set u p , in effect, control b y the Government and more definitely by the political authorities over associations or bodies of a n y k i n d which ow'e their existence t o contributions from the workers. Certainly, the prefects h a d already been k n o w n to interfere in certain isolated cases in emergencies. Henceforth, b y reason of this Decree, such intervention is made regular and legal. A s this Decree fundamentally altered t h e outlook of previous trade union legislation it seems i m p o r t a n t to give t h e complete t e x t . T h e following is t h e final form : SECTION I . —-. Associations or bodies of all kinds, however entitled, even when regularly constituted, which derive the whole or part of their funds employed for the support of their activities from workers' contributions, whether these contributions be fixed or variable, voluntary or levied compulsorily under the rules, or obtained in any other way from the members or from third parties who may wish to give economic or moral support to the workers, irrespective of the form in which they are organised and even when they are directly managed by the persons concerned, shall be subject to the control of the political authorities of the province for the purposes and within the limits prescribed by the following section. SECTION 2. — Should there be good reason for suspecting abuses of public confidence or illegal application or appropriation of funds to the ITALY I37 detriment of the members, or employment of the funds for objects other than those of affording financial or moral support to workers, the prefect may proceed to hold an inspection or an enquiry into the working of the said associations or bodies, and may repeal or annul their certificates and even, in particularly serious cases and if necessity demands it, declare the administrative committees of the association concerned to be dissolved and temporarily entrust for a period not exceeding one year the management of the property of the association to a commissioner appointed for this purpose, with instructions to preserve the same and to take any other steps which may seem desirable for the interests of the association or body. SECTION 3. — The Decree by which the prefect has recourse to any of the measures mentioned in section 2 above is published in the official gazette for the province. An appeal against the Decree may be made to the Minister of the Interior by administrative procedure by any person concerned. The appeal shall not be valid unless lodged within a fortnight from the date of publication of the Decree. The appeal shall not stay the execution of the Decree unless the prefect grants a stay pending the result of the appeal. An appeal against a Decree of the Minister of the Interior may be made to the Council of State by the procedure for actions against administrative authorities under section 22 of the consolidated text approved by the Ro}ral Decree of 17 August 1907, No. 638. SECTION 4. — If the management of the property of the association or body has been entrusted to a commissioner appointed by the prefect in conformity with the provisions laid down in section 2, the said commissioner shall, a month before the expiry of the period fixed by the Decree, draw up a. detailed report on the position of the association, its assets, and any irregularities which he may have noticed. The prefect, after having heard, if necessary, the interested parties or their representatives, shall issue a Decree with reasons therefor to state whether the special arrangement for the management of the property of the association shall cease and the management be given back to the representatives ot the association, or wüether, on/the contrary, tne said special arrangement shall be continued, or whether on the other hand steps shall be taken to wind up the affairs of the association. In the last-mentioned case, the prefect shall make proposals for the utilisation of the balance (if anyj of the funds oí the association in the manner which he considers most suitable to the purpose of financial and other interests of the workers belonging to the association or body. The continuation (if any) of the special arrangement shall not be ordered for a period longer than that specified in section 2 above. The Decree of the prefect is published in the official gazette of the province. SECTION 5. — Without prejudice to any action which may be brought under ordinary jurisdiction in case of prejudice to private rights, an appeal may be made by any person concerned to the Minister of the Interior by administrative procedure against the Decree of the prefect providing for the winding u p of the affairs of the association under section 4 above. The appeal shall not be valid unless lodged within a fortnight of the date of the publication of the Decree in the official gazette of the province, and shall stay the execution of the provision respecting the winding up of the affairs of the association. An appeal against the Decree of the Minister of the Interior may be made to the Council of State by the procedure for actions against administrative authorities under section 22 of the consolidated text approved by Royal Decree No. 638 of 17 August 1907. Î38 FREEDOM OF ASSOCIATION SECTION 6. — If the provision respecting the winding up of the affairs of the association has become" final, the manner of the winding up and the utilisation of the balance of any funds shall be prescribed by a Royal Decree issued on the proposal of the Minister of the Interior after consultation with the Council of State. In any case, any balance of funds shall not be assigned to other bodies or institutions or to persons other than the members of the association, unless it has been found impossible to ascertain the proportion of the funds belonging to each member of the association or his heirs, in conformity with the rules of the association, or, in default thereof, in conformity with the general provisions 1. In any case the decisions of the judicial authority with respect to any action which may have been brought under the first subsection of section 5 of this Decree in order to enforce the claims of any person before the liquidator or liquidators of the property of the association shall take effect. Without prejudice to any arrangement to the contrary provided for in the Royal Decree referred to in subsection i of this section, the liquidator or liquidators shall be appointed by the president of the local court upon the request of the prefect. SECTION 7. — If any of the measures referred to in the preceding sections have been adopted prior to the coming into operation of this Decree for reasons of public safety or public order or for other urgent reasons, the prefect, by a Decree with reasons therefor to be issued five days from the date of the coming into operation of this Decree, shall examine any actions of the special management and confirm or repeal them, and shall issue the provisions referred to in section 4. An appeal against such provisions may be made or laid down in section 5, without prejudice to actions under ordinary jurisdiction as laid down in the first paragraph of section 5. T h i s Decree is drawn u p in wide terms so t h a t it can be applied not only to trade unions, but also to co-operative and mutual-aid societies constituted under ordinary law. T h e Decree of 24 J a n u a r y is, however, not the only legislative measure regulating the legal status of de facto associations. T h e y also are subject to section 3 of t h e Act for communes and provinces and of the Royal Decree of 6 November 1926 approving the consolidated t e x t of the Acts for public safety. Section 3 of the Act for communes and provinces confers on the prefects exceptional powers in emergencies, a wide term which allows them to intervene whenever they consider it desirable. Section 214 of the Legislative Decree of 6 November 1926 obliges all constituted or de facto associations, societies and institutions within the K i n g d o m or in the colonies, to communicate to the 1 In virtue of this section, the funds of numerous voluntary cooperative and mutual-aid institutions which have been dissolved have been handed over to the corresponding Fascist organisations. ITALY I39 police authorities their certificate of establishment, their constitution, their internal regulation, a detailed list of their social functions and of their members, and all other information regarding their organisation and activities whenever such indications m a y be demanded by the above authority for reasons of order or public safety. These communications must be made by all w h o manage or represent associations, societies, or institutions in their central or local headquarters. T h e y must be made within t w o days after receipt of the request. Offenders will be punished by imprisonment for not less than three months and a fine of 2,000 to 6,000 lire. If t h e declaration has knowingly been made falsely or incompletely the imprisonment imposed will be not less t h a n one year and the fine from 5,000 to 30,000 lire, while the offender is also suspended from occupying any public position during five years. I n ajl cases where the declaration is omitted or is false or incomplete, the associations may be dissolved by Decree of the prefect. .Section 215 also gives prefects the power to order the dissolution of associations, organisations, and institutions constituted within the Kingdom which shall, by any means, engage in any activity endangering the safety of the State. T h e order of dissolution m a y also decree confiscation of the social fund. An appeal against the decision of the prefect m a y be made to the Minister of t h e Interior. However, no appeal is possible even on legal grounds against the decision of the Minister. Section 218 adds that under t h e title " association " all parties, groups, and political organisations in general are included. On the basis of these different regulations, the authorities have, in the course of the last few years ordered the dissolution of most of the independent trade unions, labour exchanges, mutual-aid and co-operative societies, and in general all t r a d e union institutions \ Moreover, trade union propaganda either t h r o u g h the press or by means of public or private meetings is strictly controlled. T h e Act of 31 December 1925 on t h e periodical press makes all publications, newspapers and periodicals subject to the supervision of the authorities. Severe penalties, from simple confiscation to temporary 1 For details of the dissolutions ordered, the reader may refer to the documents laid before the International Labour Conferences in 1923, 1924, 1925, and 1926 by the Secretary of the Italian General Confederation of Labour. FREEDOM OF ASSOCIATION 140 or p e r m a n e n t suspension of the newspapers involved, are inflicted for any infringements. T i t l e I I of the Legislative Decree of 6 November 1926 lays down the following regulations respecting public meetings and assemblies : According to section 17 the organisers of a public meeting or a meeting open to the public shall be bound to give notice at least three days in advance to the police authorities of the district. A private meeting shall be considered to be public if, as a result of circumstances (place of the meeting, number of persons concerned, purpose of the meeting), the meeting is not really of a private nature. Offenders shall be punished by imprisonment of not less than one month and a fine of not less than i,ooo lire. The same penalties shall be inflicted on those who address such meetings. The police authorities of the district may forbid the meeting if no declaration is given, or if it is considered necessary for the sake of public order, public morality, or public health. The police authorities may, for the same reason, decide the time and place of the meeting. Whoever infringes the prohibition or instructions of the authorities shall be punished by imprisonment of not less than two months and a fine of not less than 2,000 lire. The same penalty shall be inflicted on anyone who addresses the meeting. According to section 19, if, on the occasion of public meetings or assemblies, anything shall happen which gives rise to expressions of sedition or attacks on the dignity or prestige of the authorities or which may endanger in any way public safety or the security of the citizens or if in these meetings or assemblies any other offences shall be committed which are subject to the Penal Code, these meetings and assemblies may be dissolved. Section 20 describes as sedition the exhibition of flags or emblems which are symbols of social revolution or of revolt or of contempt for the State, the Government, or the authorities '. T o complete the s u m m a r y of the legal measures referring t o de facto associations, it is well to quote also section 4 of the Act on t h e defence of the State. Whosoever re-establishes, even under a different form and a different name, associations, organisations, or parties dissolved by order of the public authorities shall be punished by imprisonment of from three to ten years, besides being permanently forbidden to fulfil public duties. Whoever belongs to such an association, organisation or party shall be punished simply on account of this membership by imprisonment of from two to five years and shall be permanently prohibited from carrying out public duties. The same penalty shall be inflicted on anyone who spreads in any way the doctrine, programmes, and methods of action of these associations, organisations, or parties. 1 See also sections 184-193 of the same Legislative Decree regarding compulsion to remain domiciled in a certain place. ITALY 141 Such are the regulations concerning the rights of association of independent trade unions. T h e Confederation of Labour, in one of the circulars addressed at the end of t h e year 1925 to its affiliated organisations, criticised these regulations as follows : The Fascist trade unions hold the legal and de facto monopoly of all social action. They have a trade union monopoly because, as a result of the enforcement of the Act on the legal organisation of labour relations, occupational representation for all classes of workers has been taken over by the Fascist Confederation of Trade Unions. They have the co-operative monopoly which, as a result of the suppression of the National League of Co-operative Societies, has been taken over by the National Institution of Fascist Co-operative Societies. They have the monopoly of the mutualaid societies which, as a result of the suppression of ithe Italian Federation of Mutual-Aid Societies, has been taken over by the Fascist National Institute for Mutual Aid and Provident Work. They have the monopoly of social assistance and social welfare which, as a result of the suppression of the welfare institutes and the medical and legal offices attached to the independent organisations, has been taken over by the National Fascist Relief Society for Social Assistance and Welfare. They have the monopoly of vocational education and workers' spare time organisation which, as a result of the suppression of the independent workers' clubs, has been taken over by the National Institute for Workers' vSpare Time. It must also be added that the legally recognised trade unions have or will have in the future the monopoly of labour representation : (1) from the economic point of view by their being represented on the higher council for national economy and on the provincial economic councils ; (2) from the social point of view by their being alone represented on the national funds for social insurance and accident insurance ; (3) finally, from the political point of view when the impending reform of the Chamber of Deputies as a corporative assembly is carried out. I n view of the situation t h u s described, which has recentyl been growing worse, the management committee of the General Confederation of Labour (Confederazione Generale del Lavoro — " C . G . L . ") on 4 J a n u a r y 1927, decided unanimously save for a single vote to dissolve this organisation. I n an official communiqué issued by t h e committee, the following account is given of the events since the e n d of October 1926 which have led to the decision now taken : On 1 November 1926, the headquarters of the C G . L . at Milan were occupied and ransacked. On the same day the headquarters of the Italian Federation of Metal Workers (" F . I . O . M . " ) , at T u i i n , and those of the International Secretariat of T r a m w a y Employees, at Rome, suffered the same fate. On 2 November the editorial department of the trade union journal Battaglie Sindacali was notified that, by Decree of the Prefect 142 FREEDOM OF ASSOCIATION of Milan, dated i November, the publication of this paper was suspended. On g November, the headquarters of t h e C . G X . and the F . I . O . M . were restored to the secretariat of the Confederation. A s a result, however, of the damage done, the tramway workers' headquarters at Rome could no longer be used. On 16 November the secretariat of the Confederation made the following communication to the press, with a view to contradicting rumours of the dissolution of the C.G.L. : (i) The General Confederation of Labour has not been dissolved. The police authorities who sequestrated the premises at Milan, after the pillage of i November, restored them to the representatives of the C.G.L. on g November last ; (2) Up to the present no meeting has been held and no decision taken concerning the reorganisation of the work of the C.G.L. ; (3) The C.G.L. has for the moment confined itself to suspending all its work from the organisation point of view. Decisions which may be necessitated by existing conditions of political and social life in Italy remain to be taken in the near future ; (4) Until notice to the contrary, the C.G.L. will continue to exist, and its headquarters will continue to be at No. 2, Via Manfredo Fanti, Milan. T h i s communication was not published in any paper. I t should be remembered (adds t h e statement) t h a t all non-Fascist papers have been suppressed, and all non-Fascist political parties dissolved. T h u s , the situation of the C.G.L., which no longer had its own organ and could no longer count on the daily press to publish t h e simplest communications to its members, tended to become more and more precarious, and it was practically impossible for it to u n d e r t a k e any useful action in the social sphere. A few weeks later the general secretary addressed a request to the Commissary of Police to be allowed to resume possession of the objects and documents stolen of destroyed during the occupation of the headquarters of the Confederation on 1 November 1926. N o reply was vouchsafed to this letter. F u r t h e r , the General Secretary requested the Prefect to raise his embargo on the appearance of t h e trade union journal. On 15 December last he received the reply that the Decree suspending Battaglie Sindacali would continue in force. I n the meantime, t h e secretariat of the Confederation had been Informed that two members of the m a n a g e m e n t committee, the secretary of the Federation of Agricultural W o r k e r s , the secretary of the Federation of Wood W o r k e r s , and the Federal Representative 143 ITALY of Liguria, had been condemned to reside in certain specified localities. Such was the actual situation which the management committee had to consider at its meeting of 4 J a n u a r y . I t had to be admitted that, in face of these enormous difficulties, the organisations of the Confederation h a d tried in vain t o continue to exist and to operate under section 12 of the T r a d e Union Aot of 3 April 1926. An uninterrupted series of illegal acts and acts of vandalism (adds the communiqué), the dissolution of trade unions for political and not for legal reasons, the promulgation of new Acts on public safety and the protection of the Realm, the continual pressure exercised by the Fascist trade unions to force the workers to leave the independent organisations and to join the official unions, the sentence of undisguised economic and political ostracism pronounced on workers who have remained faithful to the independent organisations — all this constitutes such a general record, and gives such slight ground for hopes for the future, as to prove that there is no room in Italy for unrecognised trade unionism. T h e management committee therefore after discussion adopted the following resolution : The management committee of the Italian General Confederation of Labour met on 4 January 1927 at its headquarters at Milan, After noting the reports from local headquarters on the situation of the trade unions and also the views expressed by the managements and by the representatives of the Confederation : Considers that the experiment of carrying on a de facto trade union organisation, under the terms of section 12 of the Act of 3 April 1926 and subject to other police regulations and control, has failed, and that it is impossible to distribute membership cards for 1927 ; and Declares its work at an end and instructs the executive committee to proceed to wind up the General Confederation of Labour l . As a result of this resolution a split, which had already been latent for some time, showed itself in the independent trade union movement. A certain number of the former leaders now living abroad had decided, in agreement with the International Federation of TradeUnions, to transfer t k e headquarters of the General Confederation of L a b o u r abroad. T h e majority of the trade union leaders, on the other h a n d , sought to create in I t a l y itself a centre for cultural association and assistance intended t o support the social action of the Government by its advice and criticism. According to a resolution 1 Industrial and Labour Information, Vol. XXI, pp. 294-296. i-H FREEDOM OK ASSOCIATION adopted at Milan on 16 J a n u a r y 1927 t h e reasons which led t h e leaders to adopt this decision were as follows : The Italian trade union movement has hitherto been almost exclusively concerned with securing economic and general advantages for the working classes. It is true that one of its ultimate objects was the socialisation of the means of production, but in practice the trade union movement was confined to very definite and limited objectives. Similarly, the object of its political activity was to secure the "passing of laws for the completion and consolidation of the reforms achieved by direct trade union action. It is true that the capitalist class was confronted by a working class conscious of its strength and of its rights ; but this class appeared rather to be marking time, hindered as it was by collectivist ideals. It would never make up its mind to declare either for or against the State. On behalf of its occupational interests it brought pressure to bear on the State ; on behalf of its political ideals, it ignored the State. . In the long run this ambiguous position became untenable, and it was only to be expected that a time would come when the workers would have to choose between the alternatives of pronouncing for or against the State ; against the bourgeois State, if the workers considered that the trade unions should themselves take over the duties hitherto reserved for the State ; in favour of the State, if they thought it desirable to incorporate the trade unions in the general political fabric. From whatever point of view the question be considered, it is certain that the denial of the State as conceived by the Italian working classes was a symptom of the infancy of the working-class movement in the country. In this early phase, the workers really confined themselves to claiming improvements. The undertaking belonged solely to the capitalists, and the workers had no voice in its management. The State was a bourgeois State, and it was for the bourgeoisie to undertake the duty of defending it. Neither political compromises, which were almost always provisional, nor alliances between the various classes and parties, concluded for a common but limited purpose, substantially altered the theoretical position of the working classes with regard to the State, since the alliances in question were formed with the sole object of obtaining advantages. Centuries of experience in Europe have clearly shown that, when a working-class movement has become a real social force, it can no longer continue to maintain an attitude of this kind. Historical evolution has always proceeded by the following stages. At the outset the State forbids the trade union, but when, in spite of all, the trade union succeeds in existing and in prospering, the State ends by recognising it and subjecting it to legal discipline. The limits of recognition vary according to the criteria applied in a given State, just as, from another point of view, the antagonism between the State and the trade union is in close relation to the policy pursued by the working classes. If the working classes deliberately take up the constitutional attitude, the State is not concerned to subject their actions to discipline. But if, on the contrary, working class organisation constitutes a threat to the State, the latter is compelled to take firmer action, since there can be no question of admitting the co-existence of a State de jure and a State de facto. The only method by which the working classes could escape from this dilemma was to enter upon a campaign for the destruction of the de jure State (i.e. the bourgeois State). There is another conception of the question, which involves the abandonment of the principle of the class war. This does not mean, however, that the objective reality of the class war is denied or that the ITALY 145 sphere of action of the working-classes is restricted. What is abandoned is only the theoretical principle in its strictest one-sided interpretation. vSocialism is not discontinued, but interpreted in a more realistic way as a goal towards which society is tending. In freeing themselves from the theoretical principle, the working classes acquire greater liberty of action. What is vital for them is that the State proclaims the principle of intervention in the relations between classes. The various possible forms of administration must in this case be considered in relation to their efficiency, and in relation to the general interest. Under certain specified conditions, public administration might be preferred to private enterprise, and vice versa. What a State, which really takes up a position over and above classes, cannot do is to crystallise itself in an attitude of defending a given system.. It must admit all forms of administration, and it's sole desire, as between private enterprise, co-operative enterprise, and public administration, should be that the administration which is the fittest to survive should be decided by competition alone. The germs of these conceptions were already to be found in the old independent trade union movement, however much it may have appeared spiritually bound by tradition to the formula of pure collectivism. Today, however, the time has come for the clear expression of such ideas. The revision and adjustment of programmes is an every-day necessity ot life. We wish in: particular to affirm that production is not merely the result of manual labour, and that there is a solidarity between the various factors of production which can exist without prejudice to a campaign for the defence of class interests. If we take this position, we are compelled to recognise that there must in practice be limits to class self-defence and that such limits are binding not only upon the employers, but also upon the workers. It is of importance that the whole doctrine should be stated explicitly and that the problem of the working classes should be raised as a problem of national responsibility. An explanation of this kind is the more necessary in view of the political situation in Italy. The Fascist regime is a reality, and all realities must be taken into account. It is a reality which, as much as any other, is an emanation of the principles which are binding upon us. The trade union policy of Fascism, for instance, is on certain points identical with our own. We were not in agreement with the Liberal State because it did not intervene in the economic sphere. We may probably make considerable reservations as to the objects and methods of Fascist intervention ; but, since intervention takes place, it is important for us to follow the developments of it as closely as possible. The Fascist regime has enacted a law on the control of collective labour relations, and this law is no doubt an audacious experiment. In it we see that appeal has been made to principles which are also ours. So long as there was, on the one side, the Liberal State, and, on the other side the workers, firm in their disregard of that State, a law of such importance could not be proposed. The Fascist Revolution has cut the Gordian knot, and the fact must be recognised. In all countries where the political method of intervention has been applied, something has been achieved which is analogous to the legally recognised trade union and the Labour T r i b u n a l ; and, more than anywhere else, in Russia. There can, therefore, in principle, be no opposition to the reform in question. • We should equally be contradicting our own principle if we opposed the Corporate State and the Charter of Labour, which it is the object of the Fascist regime to secure. It will be enough to remember our past resolutions and schemes to make it clear that it is our duty to contribute by action and by criticism to the success of this experiment. But it may be asked in what way we can do this. The Act of 3 April 1926 solved the question by allowing non-Fascists to take advantage of Freedom of Association 146 FREEDOM OF ASSOCIATION section 12, which authorised de jacto trade union organisations. The subsequent changes in general conditions in the country made it impossible to pursue this policy. It is a matter of common knowledge, however, that there is in Italy a whole body of experience on this question which can be used in the general interest, that there are men who by years o£ working-class propaganda have become specially competent to understand social problems and to explain them to the masses. The theoretical and practical guidance of the masses towards the general principles set forth above can only be the result of a process of individual education. We shall endeavour to develop this process by placing our work at the service of the nation for the establishment of some centre of cultural association and assistance '. T h i s document provoked the following reply from the Italian General Confederation of L a b o u r abroad : The Italian General Confederation of Labour states that it has nothing to do with the astounding declaration which, according to information in the press, would appear to have been signed by a certain number of ex-militants of the Italian trade union movement. It is needless for the C.G.L. to record the fact that, some time ago, in agreement with the International Federation of Trade Unions, of Amsterdam, it transferred its headquarters abroad because of the impossibility of non-Fascist organisations carrying on even the minimum of trade union activity in Italy. In addition, the C.G.L. has no hesitation in stating that, if the document in question actually exists, its signatories should be stigmatised as unworthy of the name of trade unionist 2. T h e signatories of the declaration, t h e t e x t of which has been given above, have in fact set u p , according to the provisions of existing legislation, a National Association for t h e Study of L a b o u r Problems. A periodical magazine, under the direction of Mr. Rigola, entitled Labour Problems, has just appeared. T h e new association proposes to disseminate theoretical and practical knowledge of labour problems keeping strictly within t h e limits of objectivity and instruction. I t will follow the principles and the programme indicated in the declaration of 16 J a n u a r y 1927. I t s work is to be considered as " completing t h a t of the bodies to which the law entrusts exclusive representation of the workers regarding collective agreements, co-operation, mutual aid, relief and education " '. Since the enforcement of t h e Fascist T r a d e Union Acts, the Christian trade union movement has suffered the same vicissitudes as the Socialist trade union movement. T h e former Christian Con1 2 3 Lavoro d'Italia, 3 Feb. 1927. Le Populaire, Paris, 4 Feb. 1927. Industrial and Labour Information, Vol., XXT, p. 462. ITALY H7 federation of Labour, which had decided to continue in existence as a de facto association not legally recognised, h a s ceased to function. Nevertheless, the social sections of the Catholic movement, which form the right wing of the Christian trade union movement, joined on 9 October 11925 Fascist trade unionism on condition t h a t the authorities should give them full guarantee of liberty of conscience for Catholic members. As a result of a decision arrived at by the central committee of the Catholic movement on 18 F e b r u a r y 1927, this union has been confirmed. I n reality the Christian trade union organisations t h o u g h t that they could take refuge m a compromise which would allow them at the same time to preserve the autonomy of the Christian t r a d e union movement and to take a direct share in the occupational regulation of employment. F o r this purpose the}' had authorised their members to join, at the same time, recognised trade unions, b u t the text of section 7, subsection 3, of the Regulations seemed to oppose this solution. Section 7 states in fact t h a t members of legally recognised associations cannot, on pain of expulsion, belong at the same time to de facto associations constituted for the same trade union purposes in terms of section 12 of the Act of 3 April 1926. W h a t interpretation was to be given to this section? The executive committee of the Catholic movement asked the Head of the Government for an explanation of this point. Mr. Mussolini's reply was as follows : De facto associations are not prohibited. There is 110 restriction of liberty in this respect. The Regulations do no more than make adherence to, and membership of, a legally recognised union, which is open to all whose intention it is to work for the nation, subject to the amount of discipline involved in providing that such a union cannot include persons who are simultaneously members of other organisations with the same trade union objects ; that is to say, organisations which, like the Socialist and similar trade unions, are in direct competition with and antagonistic to the legally recognised organisation. It would be absurd to allow a legally recognised trade union to accept persons who belong to associations (in this case associations of workers are primarily meant) at home or abroad, the object of which it is to compete with the legally recognised organisations. This prohibition does not affect the members of the occupational sections of the Catholic Association, which, while they have their own organisation and their own constitution, are not pursuing the same objects as the legally recognised trade unions, are not in fact trade union organisations as such, but rather propose to work for the progressive adaptation of the legally recognised trade union to the principle of national collaboration and to the social and national purposes which, I48 FREEDOM OF ASSOCIATION under the present organisation, the Fascist system is endeavouring to achieve '. I t is clear from this statement that there is incompatibility between the status of membership of a Socialist or Christian trade union and membership of a recognised trade union, but this incompatibility does not affect members of social groups which are not trade unions in terms of section 12 of the T r a d e Union Act. T h e fact remains that, since t h e dissolution of t h e General Confederation of Labour and of t h e Christian Confederation of Labour, the Fascist trade associations monopolise not only de jure but also de facto t h e occupational organisation movement in Italy. 1 Industrial and Labour Information, Vol. X X I , Mo. I T , p. 399. CONCLUSION It would be premature at present to pass a definite judgment on Fascist trade union legislation. It is of too recent date to have stood the test of experience, and exists to-day only in a state of theoretical construction. How could it be otherwise? The mechanism of this legislation is so complex, the wheels which it sets in motion are so numerous, the reforms begun or planned are so important, the effects in every sphere of national life are so serious and so widespread that the enforcement of the legislation must necessarily be a slow and progressive process. But from all these Acts and plans it is possible already to deduce the idea which has been guiding the legislators and the aims which they are pursuing. In principle, as in practice, this legislation is, above all, political. It is only through the Fascist doctrine of the State that it is possible to explain the trade union reform, which is really only one aspect (the most striking, indeed) of the general political reform. ^ It is noteworthy in this connection that the same Committee for Constitutional Reform set up by the Decree of the Government of 33" January 1925 had to fulfil the two tasks of putting forward political reforms and of drawing up plans for social reform. The political reform, already to a great extent complete, seeks to centralise all authority in the hands of the Head of the Government. The Act of 24 December 1925 on the attributes and prerogatives of the Prime Minister, the Act of 3 April 1926 on the extension of the powers of the Prefects, and the Act of 4 February 1926, completed by the Legislative Decree of 3 September 1926 on the institution of podestas, have all the same aim of strengthening the power of the Head of the Government as the central authority and the power of his direct agents, the prefects and podestas in the provinces and in the communes. A second series of Acts, the Act of 31 January 1926 on the power of the Government to establish legal rules, the Act of 24 December 1925 on the power of 'the o FREEDOM OF ASSOCIATION Government to amend the Penal Code, the Code of Penal Procedure, the Acts on judicial organisation, etc., delegate to the executive ample powers of legislation. There must be one single head from whom all power comes. That is the formula which sums up, according to the secretary-general of the Fascist Party, the new legal and. political system of Fascist Italy. Thanks to this delegation of authority, the Government is armed to undertake the trade union reform which in itself is merely a starting point for a much wider reform seeking to reorganise all Italian society. On what basis is this to be done? The Fascist Government has never made a secret of its wish to break with the systems.of the past — " laisser-faire Liberalism and the Socialism of class warfare " — and to set up a new system which, under the control of the authorities, would solve the social problem on a basis of class co-operation and thus strengthen the power of the State. The Committee for Constitutional Reforms had advocated the institution of a national corporative organisation which would include all existing institutions, and all the citizens divided according to their activities into their respective groups. This organisation would be granted extensive powers for regulating social, economic, and political life. It has been seen for what reasons the Government gave up the proposals of the Committee for Constitutional Reform. It stopped at an intermediate system based on the recognition of one exclusive trade association for each occupation, an official institution endowed with the monopoly of all rights, not only as regards colleotive labour relations, but also in the social, economic, and political sphere. This solution follows from the fundamental principle of Fascism : all rights have their only source in the Government. It is therefore the State which grants to recognised trade associations the right, which may at any time be annulled, of regulating social relations. This application of power is a discretionary act on the part of the authorities, who may refuse it for reasons of political or social expediency or revoke it ad nutum without requiring to justify this refusal or annulment except by the reason of State interest. Thus in the sphere of collective relations, neither individuals nor groups really possess any rights. The principle of the autonomous organisation of labour conditions has been replaced by the principle of authoritative and delegated regulation. It is in the light of this new conception that the trade union and social reform in Italy must be examined. It is this conception ITALY IS! which, according to its authors, explains the conditions which the State imposes for the constitution and working of recognised associations. According to them it justifies the content of these conditions : refusal of recognition to Catholic, Socialist, and international organisations ; reduction of the minimum number of members to ten per cent, in order to grant the effective control of vocational organisation to a minority of proved fidelity ; investing the trade unions with duties which, far from being merely occupational or social, must also be political and moral. It also justifies the formal conditions : obligation imposed on the trade associations of giving an account of their origin and previous activity, of lodging their constitutions for ratification and of communicating, upon request of the authorities, reports of their trade union meetings ; the compulsory institution of managing bodies responsible for their work to the authorities and also to the higher trade union bodies. I t also justifies the methods of supervision which the authorities exercise over recognised associations through the prefects and the provincial administrative councils, the higher trade union bodies, and the Ministry of Corporations. Finally, it justifies the institution of r compulsory contribution to the" funds of the recognised trade association, a contribution which is deducted from all members of the occupation even although they have not joined the association. It is on the basis of this recognised trade association, whose activity (that of the managing bodies as well as of the ordinary members) is subject to permanent supervision by the authorities, that the Government proposes to reorganise the whole life of the nation. The monopoly of occupational representation held ' by the exclusive trade association finds its most valuable application in the regulation of contracts, but even here the application of the fundamental principle of Fascism involves a profound change in the legal conception of the collective regulation of conditions of employment : now the regulation of collective relationships no longer falls within the sphere of private law but is subject to special public law. This explains why the Act grants the right of concluding collective contracts to the recognised trade associations only, subject to the supervision of the higher trade union authorities, but excluding de facto trade organisations. This explains also why the contract entered into by the recognised associations (who often do not I52 FREEDOM OF ASSOCIATION represent either amongst the employers or the workers more than a minority of the interested parties) is extended de jure to all members of the class or of the occupation — a provision which results in the collective contract being in reality a legal occupational regulation. Finally, this explains the organisation of a new system of \ sanctions, both civil (constitution of a special guarantee fund) and penal, guaranteeing the execution of collective agreements. Similarly, collective disputes no longer concern only or even primarily the contracting parties; they concern chiefly the State. Therefore, the Act, while allowing for a preliminary attempt at conciliation, sets up straight away for labour disputes a State tribunal presided over by a body composed of three judges of the Court of Appeal and two technical State judges, with the assistance of the Public Prosecutor as a direct representative of the Government; the competence of this court is universal. It deals with disputes concerning the interpretation of existing., contracts and also with disputes regarding the conclusion of new contracts. Legal action can be taken only by recognised associations and by the Public Prosecutor, excluding, therefore, even, those, who are directly injured. On the other hand, decisions given byVthe court, accompanied by civil and penal sanctions, apply to all members, even if not registered, of the group or occupation represented by :the exclusive trade association. The institution of the Labour Tribunal, which forbids all classes and groups of producers to defend their own interesfi.; themselves;has, as a corollary, the complete prohibition of strikes^tid lock-outs, For, according to the Fascist conception, strikes and lock-outs and' even mere negligence or irregularity in carrying out work not only affects the interests of individuals, but, more important still, affects the interests of the whole social body represented by the State. Inopportune suspension of work is therefore no longer considered merely a civil offence but un offence against the nation as a whole, and, therefore, a crime in the nature of sedition. This new conception explains why sanctions have been set up again for the offences of strikes and of combination, as during the revolutionary period, and also the gradation of penalties, which are more severe for officials and employees of the State and of public utility undertakings than for those in private undertakings. Such is, in short, the system of the Act of 3 April 1926 regarding the legal regulation of collective labour relations. This ITALY J 53 Act, in its principles and in the institutions it sets up, aims at a unitary and general corporative organisation. It cannot take into account purely individual interests nor special cases interesting collective bodies. But it would seem that in practice this uniform and compulsory regulation of conditions of employment would run the risk of sacrificing the interests of certain classes of producers if they were not assured of an adequate representation in the different bodies for occupational defence. Hence the necessity for undertaking on the basis of an annual occupational census a very highly differentiated organisation of trade union institutions of primary grade. It has been seen how the Trade Union Regulations of i July sought to take account of the different interests involved. This multiplicity of trade organisations of primary grade representing opposing interests was in opposition to the principle of unitary organisation ojf which the whole of this trade union legislation rests. For this reason, the Regulations in the second place are careful to reconstitute by degrees this unity of organisation. First of all, the primary grade organisations must be attached by bonds of discipline and dependence to more and more centralised organisations : federations, confederations and general confederations. Thus the central liaison bodies which are to be set up by a Special Decree of the Ministry of Corporations are to unite the different elements (separated up to the present) of any particular branch of production, . em^ö^.er^ieetyiicians, -workers, for the defence of their common interests, j^ánd the unity of organisation will be completed by the institution of the Ministry of Corporations, which is to play the part of a central supervising body and also of supreme regulator of occupational, social, economic and political life. It is on the basis of this trade union and corporative organisation that the Government intends to proceed with the complete reform of Italian society, in which it permits the recognised trade associations to play an important part. In this sphere also the State asserts its complete predominance. It preaches and it practises not only the principle of intervention, but also that of authoritative regulation of the national life in all its various manifestations. This reform has several aspects, of which the most characteristic may be recalled. In the social sphere the State intends to take under its own supervision the regulation of the labour market. To this end, the Labour Charter codifies not only the general provisions of the 154 FREEDOM OF ASSOCIATION •collective contract (such as probation periods, dismissal, holidays, hours of labour, guarantees in case of transfer of the undertaking, •etc.), but also all questions connected with social welfare, whether private (unification of mutual-aid and co-operative institutions, of societies for medical and legal assistance, of institutions for relief and occupational training, etc.) or official (insurance funds for sickness, old age, accidents, unemployment, etc.) and the protection of the worker (public health, maternity and child welfare, etc.). In the economic sphere, the trade unions will have the right to share under State supervision in the regulation of production, that is to say, in the control of the whole economic system of the nation This participation by the trade unions is henceforth exercised through the Higher Economic Council, the consultative body of the Ministry of National Economy, and the Provincial Economic Councils, which exercise the duties formerly carried out by a series of institutions run by private initiative such as chambers of industry and commerce. provincial agrarian councils, agricultural committees, etc. In the political sphere it is the recognised trade associations which from now onwards appoint representatives to the advisory councils of the podestà and which in future will appoint the deputies to the Corporative Assembly which shortly is to take the place of the Chamber of Deputies. These are the main outlines of the new social edifice. It is clear that it is a complete system of social organisation in which the State is the alpha and omega. This new organisation, according to its authors, could not be built up except by doing away with the previous system. Now the independent trade unions, Socialist and Catholic, had played an important part in the political and social evolution of the country. Fascism, first by its actions, and then by legislation, tried to destroy their influence. First of all, by their actions, the Fascist trade unions sought to thwart the work of the independent trade unions by all means in their power and to win the monopoly of labour representation. Then, by legislation, they ratified this existing state of affairs, instituting a special legal system to control associations of State officials and employees and, finally, the former independent trade unions. The system adopted for associations of State officials and employees has the following characteristics : first of all it comes under ITALY '55 the Legislative Decree of 6 November 1926 ' which forbids State officials, on pain of dismissal, to be members of secret societies. In the second place, it is regulated by the Act of 24 December 1925, which authorises either the Government or the heads of public utilityundertakings to dismiss, even in cases not provided for by the existing Acts, officials or agents " who put themselves in positions incompatible with the general aims of the Government ". Finally, in conformity with Chapter IV of the Trade Union Regulations of 1 July 1926, associations of State employees are subject to the same conditions as regards content (moral and political fitness, etc.) and of form (authorisation of a single association for each group) and also to the same methods of supervision as the recognised trade unions, but without being granted the same privileges and prerogatives as the latter. The existence of the independent trade unions is just as strictly regulated. The laws have set up harsh control over the constitution, •the-functions, and the activity of the independent trade associations by a whole number of Acts : Legislative Decree of 24 January 1924, instituting supervision by the public authorities over associations of any nature whatsoever which owe their existence to contributions by the workers ; Legislative Decree of 6 November 1926, approving the consolidated text of the Acts for public safety, which oblige associations to communicate to the police administration their certificates of establishment, their constitutions, their internal regulations, their list of members and any other information regarding their organisation or activity whenever the authorities may demand it for reasons of public order or security. Similarly, trade union propaganda through the press or in public or private meetings is strictly supervised. The Act of 31 December 1925 on the press, completed by the system set up with the constitution of the Fascist trade unions of editors and journalists, makes every publication of whatsoever nature subject to preliminary supervision by the authorities and in fact suppresses the whole influence of the Fascist press. Chapter I I of the Royal Decree of 6 November 1926 makes every public meeting, and, in some cases, private meetings, subject to preliminary control by the public 1 This Legislative Decree, as will be remembered, reproduces word -for word the provisions of the Act of 26 Nov. 1925. " 156 FREEDOM OF ASSOCIATION authorities. Finally, section 4 of the Act, for State defence, punishes by imprisonment of from three to ten years anyone who sets up, even under a different form and under a different name, associations, organisations or parties which have been dissolved by order of the public authorities. It should be added that the Trade Union Act of 3 April 1926, while expressly authorising (section 12) the constitution of independent trade unions, actually deprives them of all possibrlity of action and of every reason for existing. In face of a situation rendered so dangerous by legislation and by the facts,, the independent trade unions dissolved. To-day the Fascist trade union organisations have the sole monopoly in law and in aotual fact of the occupational.organisation movement in Italy. The social sections of the Catholic movement have joined Fascist trade unionism. A certain number of former leaders of the General Confederation of Labour have given adherence to the principles if not to the methods of Fascism. These last two facts seem to some people to herald a real solution of the trade union problem. The conditions seem indeed to be present for transforming, the exclusive trade union, which is at present a closed political institution, into a really unitary association including the great majority, of the workers without distinction of political views. At the same time the central liaison bodies would be changed into real corporations open to all interested parties without distinction. It does not seem that for the moment at least the leaders of Fascist trade unionism wish to go back on their original uncompromising theories. Several times Mr. Rossoni has protested against the tendency of various organisers to grant admission to all workers and all emplo3'ers into the single trade association. According to him, the latter must, on pain of losing its true charaoter, remain a qualitative, educative, and moral organisation (Stirpe, February 1927). Mr. Rocco, Minister of Justice, stated in the Chamber of Deputies that only on the day when all employers and all workers in Italy had the same ability, the same consciousness of the aim to be achieved, and the same convictions would the trade union automatically become a corporation. The secretary-general of the Fascist Party, Mr. A. Turati, in a speech delivered on 21 February 1927 in the Augusteo at Rome, proclaimed that the corporative organisation must be completely subordinate to the political control of the Fascist Party. ITALY *57 To imagine [he said] that the new organisation will presently take the place of our existing political life would be an error. I do not know if all those who occupy or who will occupy to-morrow positions of responsibility in the great corporative movement have a clear and precise idea on this point. I do not think so. But we are fully and entirely conscious of it. The Party has not yet completed its task of setting up the new organisation born of the Fascist revolution. . . . Just as in positions of command in economic and administrative life, so at the head of trade union organisations there must be everywhere and always very faithful Black Shirts. All authority for the whole of Fascism — that is the complete conception of our doctrine '. One final question demands attention. W h a t is, or rather, w h a t will be, according to t h e promoters, the future scope of this reform? T h e y state t h a t it really anticipates the future system of vocational organisation. I t goes ahead of present tendencies and realises, according to them, certain fundamental aspirations common to t h e whole trade union movement of every school. I t sets up exclusive occupational representation, which is an essential condition for all effective occupational action and is too often paralysed b y division's within t h e trade unions. T h é exclusive trade association constitutes a solid foundation for the collective regulation of conditions of employment. T h e compulsory collective contract extending de jure to all members of the occupation eliminates individual competition and t h u s becomes the essential instrument of occupational organisation. T h e compulsory Labour T r i b u n a l , together with the complete prohibition of strikes, ensures economic stability and industrial peace. Finally, the State grants to recognised trade associations the right of taking an active part in the organisation of social, economic and political life. Besides these advantages from the point of view of the occupation, the enthusiasts see in this organisation the prelude to a much wider reform, viz. the reform of the very basis of Italian society. Certainly, at various times the Government has declared that Fascist trade unionism differs fundamentally from " red " trade unionism because it recognises the social value of t h e principle of property. But it is certain also that t h e very conception of capital on the one hand and of labour on t h e other has been profoundly modified. The institutions of the T r a d e Unions Act (exercise of vocational control by the recognised trade association over third parties who are not 1 Lavoro d'Italia, 22-23 Feb. 1927. 158 FREEDOM OF ASSOCIATION registered members, the compulsory n a t u r e of the collective contract erga omnes, the Labour T r i b u n a l with, as a corollary, State supervision of undertakings) limit on very important points the autonomy of the heads of undertakings. T h e s e limits have been narrowed by the coming into force of the Labour Charter. It will be recalled t h a t d u r i n g t h e first discussion of this proposal the President of t h e Council described in the following formula the aim pursued b y the State : Realisation of the equal rights of all social classes and proclamation of the solidarity of all citizens in view of the higher interests of their countiy, interests which form the limit and the standard of all individual rights from the right of property and the right to profit to the right of work and wages. The principle to be followed fhe added] is the following : the maximum of duties for the State and no authority against the State *. Moreover, in virtue of the theory of the social duties of capital and labour which forms the basis of action for Fascist trade unionism, both for employers and workers, the organisation of produotion is no longer considered as being exclusively a personal matter for the employer, but must be considered as a social duty the exercise of which must be entrusted to whoever is most suited to fulfil it. I t follows from these official statements t h a t from now onwards the State claims a clear right over national property. A p a r t from all these questions of what has already been accomplished and of the reforms still being planned and the difficulties of enforcement which may be foreseen, one question arises — will the State be able to force all personal and collective interests to become subject to its discipline? T h e evidence of all leaders of t h e Fascist movement agrees on this point t h a t t h e new Act will have no chance of being enforced and of remaining in force except as a result of the disciplinary power of the nation. T h e preamble asserts this in the following terms : The social and political conditions of Italy give our country the 1 Cf. Labour Charter, sections II, VII, VIII, and IX. It should be recalled in particular that section VII states that the employer is responsible to the State for the organisation of production. Section IX states that State intervention in economic production may take place when private initiative is lacking or is insufficient or when the political interests of the State are at stake. This intervention may take the form of supervision, support, or direct management. ITALY !59 possibility, which is really an historical privilege, of putting an end to the chaotic attempts at the defence of class interests by their own forces and substituting for it State justice. A State stronger than any that has yet existed, thanks to the prestige of the Government and the support of the population ; a trade union organisation permeated with patriotic feeling and perfectly disciplined ; employers convinced of the excellence of the Government's proposals and of the necessity for supporting them — all these guarantee the loyal enforcement of the new legislation. B u t is not the realisation of such a far-reaching reform, dependent on the regularity and continuity of enforcement, not so much a question of national discipline as of t h e evolution of economic conditions? T o attempt to answer this question would be out c place here. By w a y of conclusion, it may be well t o recall the memory of Mr. Luzzatti and of the following words spoken by him in Paris on 29 M a r c h 1926, not indeed in connection with the Fascist trade union legislation b u t with reference to all social institutions : " W e are all merely searching, and the last word will always remain w i t h experience, examination of the facts, and comparison of experiments." BIBLIOGRAPHY CHIEF LEGISLATIVE TEXTS QUOTED IN T H E WORK Trade Union Reform i. Act of 3 April 1926, Gazzetta Ufficiale, No. 563, on the legal organisation of collective relations resulting from employment. Legislative Series, 1926, It. 2. Bill, first version, presented to the Chamber of Deputies by the President of the Ministerial Council in agreement with the Minister of the Interior and the Minister for National Economy, at the sitting of 18 November 1925 ; Parliamentary Documents, Nö. 624. Report of the Parliamentary Committee on the above Bill presented to the President of the Chamber on 1 December 1925 ; Parliamentary Documents, No. 624-A. Bill, second version, approved by the Chamber of Deputies on 12 December 1925 and laid before the Senate on 17 December 1925 ; Parliamentary Documents, No. 350. Report of the Central Committee of the Senate on the above Bill laid before the President of the Senate in March 1926 ; Parliamentary Documents, No. 350-A. 2. Royal Decree of 1 July 1926, Gazzetta Ufficiale, No. 1,130, regulating the public administration of the Act of 3 A^/ril 1926, No. 563, on the legal organisation of collective relations resulting from employment. Legislative Series, 1926, It. 5. , 3. Royal Decrees granting legal recognition to the chief national confederations : Royal Decree of 26 September 1926, Gazzetta Ufficiale, No. i,7iS : legal recognition of the National Confederation of Fascist Trade Unions. Royal Decree of 26 September 1926, No. 1,720 : legal recognition of the Fascist General Confederation of Italian Industry. Royal Decree of 26 September 1926, No. 1,719 ; legal recognition of the Fascist General Confederation of Banks. Royal Decree of 7 October 1926, No. 1,803 : legal recognition of the Fascist National Confederation of Traders. Royal Decree of 7 October 1926, No. 1,804 : , e » a l recognition of the Fascist National Confederation of Agriculturists. Royal Decree of 14 October 1926, No. 1,901 : legal recognition of the Fascist National Confederation of Maritime and Aerial Transport Undertakings. ITALY l6l Royal Decree of 24 October 1926, No. 1,908 : legal recognition of the Fascist National Confederation of Land Transport and Inland Navigation. Royal Decree of 14 October 1926, No. 1,900 : legal recognition of the autonomous Fascist Federation of Agents for Maritime and Aerial Transport. Royal Decree of 14 January 1927 : legal recognition of the autonomous Fascist Federation of Societies of Artisans. Royal Decree of 5 December 1926, No. 2,088 : legal recognition of the Fascist National Association of Managers of Industrial Undertakings. 4. Legal recognition of the chief national associations of employees of the State or public utility undertakings. Decree of the Head of the Government, of 23 August 1926, Gazzetta Ufficiale, No. 196 : authorising the constitution of the Fascist National Association of State Railwaymen. Decree of the Head of the Government of 27 August 1926 : authorising the constitution of the Fascist National Association of Postal and Telegraph Employees. Decree of the Head of the Government of 30 August 1926 : authorising the constitution of the Fascist National Association of Postal Sub-Office and Rural Agents. 1 Decree of the Head of the Government of 30 August 1926 : authorising the constitution of the Fascist National Association of State Telephone Employees. Decree of the Head of the Government of 17 September 1926 : authorising the constitution of the Fascist National Association of Primary School Teachers. Decree of the Head.of the Government of 10 October 1926 : authorising the constitution of the Fascist National Association of Tax Collectors. 5. Appointment of presidents of the principal confederations : Royal Decrees of 18 November 1926 : appointing presidents for the Fascist General Confederation of Banks, the Fascist General Confederation of Italian Industry, the National Confederation of Fascist Trade Unions, the Fascist National Confederation of Traders and the Fascist National Confederation of Agriculturists. Royal Decrees of 28 "November 1926 : appointing presidents for the Fascist National Confederation of Land Transport and Inland Navigation, and the Fascist National Confederation of Maritime and Aerial Transport Undertakings. Reorganisation of the Legal Constitution of the Liberal Professions 1. Act of 25 March 1926, Gazzetta Ufficiale, No. 453 : on the organisation of the professions of barristers and attorneys. Royal Decree of 6 May 1926, Gazzetta Ufficiale, No. 747 : regulating the co-ordination of the Act of 3 April 1926 on the legal organisation of collective relations resulting from employment with the Act of 25 March 1926 on the organisation of the professions of barristers and attorneys. Royal Decree of 26 August 1926, Gazzetta Ufficiale, No. 1,683 : approving the regulation for the enforcement of the Act of 25 Mar-ch 1926. Freedom of Association 11 IÓ2 FREEDOM OF ASSOCIATION 2. Royal Decree of 23 October 1925, Gazzetta Ufficiale, No. 2,537 : approving the regulation for the exercise of the professions of engineers and architects. Royal Decree of 3 September 1926 : establishing standards for the exercise of the professions of architects and engineers in the new provinces. Establishment of the Ministry of Corporations Legislative Decree of 2 July 1926, Gazzetta Ufficiale, No. 1,131 : instituting the Ministry of Corporations. Royal Decree of 17 March 1927, Gazzetta Ufficiale, No. 401 : organising the Ministry of Corporations. Social Reform 1. Promulgation of the National Labour Charter, 21 April 1927 : Report on the National Labour Charter by Mr. Bottai, Under-Secretary for Corporations. 2. Reorganisation of the system of rnutual-aid and co-operative societies and institutions for vocational training. Ministerial Decree of 26 June 1925 : granting recognition to the National Medico-Legal Relief Society. Royal Decree of 30 December 1926, Gazzetta Ufficiale, Nò. 13, 1927 : on the organisation of the Fascist National Institute of Co-operation (Ente nazionale della Cooperazione fascista). Royal Decree of 23 September 1926, No. 1,732 : approving the regulation for the National Association for the Prevention of Industrial Accidents. Royal Decree of 31 December 1925, Gazzetta Ufficiale, No. 2,392 : approving the regulation for the National Institute for Workers' Spare Time (Opera nazionale del Dopolavoro). Royal Decree of 11 November 1926, No. 1,936 : amending the constitution of the Opera nazionale del Dopolavoro. Legislative Decree of 9 January 1927 : organising the institute A. Balilla (Fascist Youth). Royal Decree of 6 August 1926, No. 1,408 : granting legal personality to the Fascist National Institution for Culture. 3. Reorganisation of public institutions for social welfare and workers' protection. Legislative Decree of 5 December 1926, No. 2,051 : amending the Act of 31 January 1904, No. 51, on industrial accidents. Legislative Decree of 16 May 1926, No. 853 : organising the insurance fund for industrial accidents. Legislative Decree of 25 November 1926, No. 2,052 : containing supplementary provisions for the reorganisation of the National Insurance Fund for Industrial Accidents. Act of 14 April 1927, Gazzetta Ufficiale, No. 570 : converting the Legislative Decree of 25 November 1926 into an Act. ITALY 163 Royal Decree of 3 January 1926 : dissolving the Managing Committee of the National Fund for Social Insurance and appointing a new Committee. Act of 10 December 1925, No. 2,277 : for the protection and assistance of maternity and child welfare work. Royal Decree of 15 April 1926, No. 718 : approving the regulations for carrying out the Act of 10 December 1925. Legislative Decree of 21 October 1926, No. 1,904 : amending the Act of 10 December 1925. Economic Reform Act of 18 April 1926, No. 731 : instituting ' provincial economic councils. Royal Decree of 3 April 1926 : concerning the reorganisation and composition of the Higher Council for National Economy. Legislative Decree of 16 December 1926, No. 2,714 : regulating retail trade. Ministerial Decree of 31 December 1926 : setting up standards for the enforcement of the Legislative Decree of 16 December 1926. Legislative Decree of 18 April 1926, No. 800 : establishing a National Institution for Exportation. Legislative Decree of 3 April 1926, No. 556 : constituting the Association for Research into Deposits of Petrol and Combustibles. Political and Administrative Reform Act of 24 December 1925 : on the attributes and prerogatives of the Head of the Government, Prime Minister, and Secretary of State. Act of 31 January 1926, No. 100 : on the power of the Executive to promulgate legal rules. Standards for the enforcement of the Act of 31 January 1926, No. 100, Gazzetta Ufficiale, No. 22. Act of 24 December 1925 : delegating to His Majesty's Government the right to amend the Penal Code, the Code of Penal Procedure, and the Act on judicial organisation, and to introduce fresh amendments and additions to the Civil Code. Act of 31 December 1925 : delegating to the Government the power to amend the Acts on Public Safety and to promulgate a new consolidated text of the Acts relating to public safety. Act of 3 April 1926, No. 660 : extending the powers of the prefects. Legislative Decree of 28 October 1925, No. 1,929 : on the institution and organisation of the Governor of Rome, amended by the Royal Decrees of 10 June 1926, No. 1,023, and of 9 December 1926, No. 2,055. Act of 4 February 1926, No. 237 : instituting the Podestas and the Council of the Podestà in communes of less than 5,000 inhabitants. Legislative Decree of 31 December 1926, No. 1,910 : extending the organisation of the Podestas to all communes in the Kingdom. IÓ4 FREEDOM OF ASSOCIATION Legal Regulations concerning State Officials and Employees Act of 24 December 1915, No. 2,300 : exempting State officials from service. Circular for the enforcement of the Act of 24 December 1925 on the dismissal of State officials. Title VI of the Legislative Decree of 1 July 1926 : regulating the administration of the Act of 3 April 1926 on associations of employees of the vState and other public establishments. Legal Regulation of the Independent Trade Unions Legislative Decree of 24 January 1924, No. 64 : instituting supervision by the public authorities over associations or societies of any nature whatsoever which owe their existence to contributions from the workers. Ro3ral Decree of 6 November 1926, 'No. 1,848 : approving the single text of the Acts on Public Safety. Act of 25 November 1926, No. 2,008 : containing measures for the defence of the State. Royal Decree of 12 December 1926, No. 2,026 : containing rules for the enforcement of the Act of 25 November 1926 on the measures for the defence of the State. Act of 31 December 1925, No. 2,307 : containing provisions regarding the periodical Press. Act of 31 December 1926, No. 2,308 : changing the Legislative Decree of 10 July 1924, No. 1,081, into an Act containing rules for the enforcement of the Legislative Decree of 15 July 1923, No. 3,288, on the administration and supervision of newspapers and periodicals. Royal Decree of 4 March Í926, No. 371 : approving the Regulations containing provisions on the periodical press. OTHER OFFICIAL PUBLICATIONS Reports and proposals of the Presidential Committee for the study of constitutional reforms. Rome, 1925. La Réforme syndicale en Italie et la Charte du travail (French translation of the chief Parliamentary documents relating to trade union legislation). GENERAL BIBLIOGRAPHY PRIOR TO T H E TRADE UNION REFORM AMBROSINI, G. Rome, 1925. AMBROSINI, V. BARASSI. Sindacati, consigli La battagglia BoGGiANO-Pico. Le organizzazioni di classe. Turin, 1903. GiANTURCO, M. e Parlamento per lo Stato sindacale. Il contratto di lavoro. GiANTURCo, Emm. tecnici Rome, 1925. Milan, 1901. professionnali Il contratto di lavoro. La rappresentanza politico. e la rappresentanza Naples, 1902. di classe. Naples, 1919. 165 ITALY MusTO. Sulle organizzazioni operaie. Naples, 1908. ORLANDO. " Lo Stato sindacale e le condizioni attuali della scienza del diritto pubblico. " Rivista del Diritto pubblico, 1924. PANUNZIO. " Stato e sindacati. " Rivista internazionale di filosofia del diritto, 1923. PERGOLESI. Sindacalismo operaio. Città di Castello 1922. La rappresentanza corporativa nelle assemblee Rome, 1923. PRATO. " Realtà economiche et miti sindicalistici. " sociale, Voi. X X X V I . PREZZOLINI. La teoria sindacalista. RANNELLETTI. Rocco, Alfredo. ROMANO. pubblico, politiche. Riforma Naples, 1905. " I sindacati e lo Stato. " Politica, 1920. " Crisi dello Stato e sindacati. " Politica, 1920 " Lo Stato moderno e la sua crisi. " Rivista del Diritto 1910. RUFFINI. SOMMI. Guerra e riforma constituzionale. La riforma constituzionale. Turin, 1920. Milan, 1924. VIANA. Sindacalismo, teoria e praxis delle organizzazioni e di resistenza. Bari, 1923. economiche GENERAL BIBLIOGRAPHY AFTER T H E TRADE UNION REFORM ARIAS. " Trade Union Reform in Italy. " Review, September 1926. International —— " La riforma sindacale e corporativa. " June 1926. Nuova Labour Antologia, Economia /corporativa. Rome, .published by " Diritto del Lavoro ", 1927. BOTTAI, G. La Carta del Lavoro. Rome, published by " Diritto del Lavoro ", 1927. " Trade Organisation in Italy under the Act and Regulations on Collective Relations in connection with Employment ". International Labour Review, Vol. XV, No. 6, June 1927. Il diritto della rivoluzione. Lavoro ". 1927. Rome, published by " Diritto del BÜOZZI. " Mentre va in vigore la legge sui sindacati. " sindacali, 16 May 1926. Battaglie " Ancora della legge sui sindacati. " Battaglie sindacali, 1 July 1926. (Commentaries on the Act of 3 April 1926 on the legal organisation of collective relationships connected with employment.) CARLI. " Il sindacalismo nel dopoguerra e la legge 3 aprile 1926. " Rivista di Politica economica, Rome, Part VI, 30 June 1926. 166 FREEDOM OF ASSOCIATION CARNELUTI, B. Sindacalismo. Lavoro ", 1927. Rome, published by " Diritto del COSTAMAGNA, C. Diritto corporativo scritti giuridici e sociali. Turin, 1927. Il problema dei consigli italiano. raccolta di Il Diritto del Lavoro, tecnici. " Teoria delle corporazione fascista. " January-February 1927. CELENTANO. Nuova La legge e il regolamento sui sindacati. Naples, 1926. CONSTANZO. " Le nouvel ordre syndical en Italie. " Revue internationale des institutions économiques et sociales. Published by l'Institut international d'agriculture, July-September 1926. D'AMELIO. " La magistratura del lavóro." Le Assicurazioni Rome, No. 1, January-February, 1926. D ' O N O F R I O E PELLEGRINO GIANPTETRO. rapporti collettivi del Lavoro. La discipliina sociali, giuridica dei Naples, 1926. GIANTURCO, M. " La legislazione sindacale fascista e la riforma constituzionale. " Quaderni Imperia, Genoa, No. 13, 1926. " Le monopole syndical et l'organisation Revue politique et parlementaire, June 1926. MARCHI, C. La pplizza unica del lavoro. " Diritto del Lavoro ", 1927. MAROZZI. 1926. professionnelle. " Rome, published by Problemi sindacali. " Il Giornale d'Italia, " Questiono sindacali. " Il Giornale d'Italia, Rome, 8 July Rome, 3 August 1926. PANUNZIO. LO Stato fascista. Bologna, 1925. Il riconoscimento rivoluzionario dei sindacati. Rome, published by " Diritto del Lavoro ", 1927. RIGOLA. " Una teoria dei sindacati. " Critica sociale, April-May 1920. Rocco, A. " La réforme constitutionnelle en Italie. " Revue politique et parlementaire, Vol. CXXVI, p. 329. La nuova disciplina del Lavoro e lo Stato Corporativo. chia ", July 1926. " Gerar- RossoNi. " Il sindacalismo nello Stato. " Il Lavoro d'Italia, 30 June 1926. Rome, " Sindacato giuridico e monopolio. " La Stirpe, February 1927. TTi.p.rANO, G. " Collegi, sindacati e corporazioni. " April-May 1926. Critica VIRGILI. " Il riconoscimento giuridico dei sindacati. " nazionale, Vol. LTI, June 1926. sociale, Rassegna ITALY 167 Consult also the collections for the last years of the following reviews : Il Diritto del Lavoro (organ of the Ministry of Corporations, recently published) ; Gerarchia ; La Critica fascista ; La Stirpe ; La Nuova Antologia; Echi e Commenti ; La Critica sociale (suspended) ; Battaglie sindacali (organ of the former General Confederation of Labour, at present suspended) ; I problemi del lavóro (organ of the group " Rigola"). Consult also the collections of the following important periodicals : Il Popolo d'Italia ; Il Lavoro d'Italia ; Il Tevere ; l'Impero. La Tribuna ; Il Giornale d'Italia ; Il Resto del Carlino ; Il Corriere delle Sera ; Il Secolo ; La Stampa. Il Mondo (suspended) ; L'Avanti (suspended) ; l'Unità (suspended). ADDENDA The present study was already completed when the following events happened with which it was therefore impossible to deal in the text itself. ad. : Legal regulation of collective contracts of employment. — Conditions of validity of collective contracts (p. 67 after the quotation). A Royal Decree of 6 May 1928, published in the Gazzetta Ufficiale of 15 June 1928, No. 139, contains detailed provisions as to the lodging and publication of collective contracts. This duty devolves on the contracting associations and embraces not only the text of the contracts but also that of any approbation, authorisation or ratification subject to which contracts have been entered. into or which are required by the regulations of the associations. The Decree fixes the period within which contracts must be lodged, usually thirty days, and the penalties incurred by any person who, being by virtue of his office under obligation to make such deposit, fails to comply with the regulations in the matter. The prefects or the Ministry of Corporations must forward a copy of every such contract to the competent factory inspection services or to the Ministry of National Economy for the purposes of the supervision of the observance of the laws for the protection of workers. No collective contract of employment may be published unless it clearly indicates the disciplinary measures contemplated, the rules relating to the employment of workers during their period of probation, the amount of wages and the method of payment of the same, the hours of work, the weekly rest, and for undertakings continuously carried on, the period of annual paid leave, the measures provided for in case of sickness or death of the worker, dismissal of the worker through no fault on his part, change in the management of the undertaking or the calling-up of the worker for service with the colours or in the voluntary militia for the maintenance of national security in accordance with the principles contained in Articles 14 to 20 of the Labour Charter, which thus receive legal sanction. ad: Legal regulation of collective contracts of employment — Sanctions of the collective contract (p. 69, Note (1), substitute for the first sentence). According to the statistical returns up to 31 July 1928 the number of collective contracts concluded since the constitution of the Ministry I69 ITALY of Corporations amounted to 3,181, of which 67 were national, 106 regional and 3,008 provincial. As regards the different branches of production, these contracts were divided as follows : 373 for agriculture, 2,334 for industry, 193 for commerce, 63 for banks and 218 for transport. ad: The labour tribunal. — The working (p. 76, Note (1), at the end). of the labour tribunal The principle proclaimed by Article 10 of the Labour Charter was applied by a Royal Decree of 26 February 1928 published in the Gazzetta Ufficiale of 22 March 1928, No. 69. . This Decree abolishes the colleges of prud'hommes and commissions of private salaried employees and transfers to the justices of the peace (pretori) or the ordinary courts within the limits of their respective jurisdiction, individual disputes, disputes arising from the relations of private employment and all other individual disputes arising from relations subject to collective contracts of employment or other regulations having the force and effect of collective contracts. The justices of the peace are also to have jurisdiction in all actions which may be brought by associations legally recognised against employers or workers civilly liable for an infringement of a collective contract. For the decision of such disputes the justices of the peace and the courts are assisted by two expert assessors, one representing the employers and the other the workers, chosen from special lists. The participation of these assessors is • not, however, required, under penalty of nullity of sentence, unless the same is demanded at the first hearing by one of the parties. The lists of assessors are revised every two years by the Labour and Social Welfare Section of the Provincial Economic Councils on the basis of proposals by the legally recognised trade associations, having regard to the industries of each province. The executive officers of the trade associations must not be included in the lists. Experts who are interested in the dispute or who are employers, employees, representatives or relatives up to the fourth degree or connections by marriage up to the second degree of one of the parties must also not be chosen as assessors in any given matter. Actions based on the non-observance of collective contracts of employment may not be brought unless the plaintiff has previously protested against such non-observance to the legally recognised association of the vocational category to which the plaintiff belongs. The legally recognised associations may always appear in any such action. The difference must be brought before the justice of the peace or the court of the circuit in which the undertaking or establishment employing the worker is situate. The parties may appear personally or by representatives. Such representation may be entrusted to the secretary of the legally recognised association. The procedure is simple and rapid. The action is commenced by a petition signed by the parties or their representatives. A copy of the 170 FREEDOM OF ASSOCIATION petition, with a notification of the day of hearing, is in all cases officially communicated to t h e persons concerned at t h e cost of t h e plaintiff by registered letter. A t the hearing, if the parties maintain their respective contentions, the justice of the peace or the president of the court endeavours to bring them to a speedy agreement. T h i s effort must be renewed at every opportunity in t h e course of the action. If the attempt at conciliation is unsuccessful, the justice of the peace or the president may immediately commence the hearing or summon t h e parties to a fresh hearing within a period of not more t h a n ten days. T h e parties have three days in which to lodge their pleadings. W h e r e the value of the matter in dispute does not exceed 2,000 lire, j u d g m e n t is without appeal. I n the case of j u d g m e n t s in which the value exceeds 2,000 lire, appeal lies to t h e L a b o u r T r i b u n a l . Appeals are subject to the rules of the Code of Civil Procedure. Employers or workers fraudulently infringing obligations under collective contracts of employment or regulations made b y ' t h e corporative organs are liable to fines from 100 to 5,000 lire, w i t h o u t prejudice to the rules of t h e ordinary law relating to civil liability. T h e employment of workers with offers of remuneration inferior to that established by a collective contract is deemed to be an infringement of the contract. T h i s Decree came into force on 1 October 1928. a d : Part played by the trade associations in social life. — The nal Labour Charter (p. 120, after the first p a r a g r a p h ) . Natio- A t its session in September 1928 the Fascist G r a n d Council approved a Bill to be subsequently introduced in Parliament authorisi n g the Government to issue all necessary provisions for giving complete effect to the principles contained in the Labour Charter. a d : Part played by the trade associations in social life. National Labour Charter. — Employment exchanges note to t i t l e ) . — The (p. 123, Articles 22 to 25 of the Labour Charter have been p u t into force by a Royal Decree of 29 March 1928, No. 1,003, published in the Gazzetta Ufficiale, of 18 May 1928, N o . 116. U n d e r this Decree free employment exchanges for the different vocational categories will be established as and when the desirability of the same is recognised by Decrees of the Minister of Corporations in agreement with the Minister of National Economy and after consultation of the corporations concerned. T h e s e exchanges will be established at the offices of the workers' associations. T h e y will be managed by committees presided over by the Federal Secretaries of the National Fascist P a r t y a n d consisting of an equal n u m b e r of representatives of the employers' and w o r k e r s ' associations concerned. T h e Committees will select the officers of the exchanges from ITALY 171 the executive officers of the workers' associations concerned on the proposal of such associations. The supervision of the employment exchanges and their coordination in accordance with uniform principles will be effected in the territory of each province by the labour and social welfare section of the Provincial Economic Council. This section will be presided over by a delegate of the Ministry of Corporations and will consist of representatives in equal numbers of the trade associations of employers and workers, an inspector of industry and labour, the Director of the Institute of Social Welfare and the Commissioner for Public Works or the Civil Engineer-inChief. The regional and national co-ordination of the employment exchanges, even as regards internal and foreign migration, will be secured by the Ministry of Corporations in agreement with the Ministry of National Economy, the Ministry of Finance, and the other Ministries which may be interested, and in consultation, if the same is deemed necessary, with the central offices of the Corporations. The Minister of Corporations, in agreement with the Minister of National Economy, may, in the event of the irregular working of the employment exchanges and after consulting the Labour and Social Welfare Section of the competent Provincial Economic Council, dissolve the administrative committee and appoint a commissioner. The Minister of Corporations, in agreement with the Minister of National Economy, may by Decree published in the Gazzetta Ufficiale forbid all individuals, associations or institutions of any kind whatever to carry on the business of finding employment, whether gratuitously or otherwise, in specified localities or in the whole Kingdom or for specified categories of employers and workers. Employers are forbidden to engage unemployed persons not registered in an employment exchange. They are empowered to choose among the persons so registered and to give the preference to members of the Fascist Party and of Fascist trade unions. These provisions apply to manual workers, with the exception of workers in the employment of Government administrations. All persons out of employment must register in the employment exchange of the district in which they reside which is competent as regards their occupation or industry. All employers, with the .exception of Government administrations, must within five days after the engagement of any worker, notify the employment exchange in which such worker was registered, indicating the nature of -the employment for which he has been engaged. Within the same period and subject to the same conditions, the worker so engaged must notify the employment exchange in which he is registered. All employers, with the exception of Government administrations, must within a period of five days notify the employment exchange of all workers who have been dismissed or have left their establishment for whatever reason, specifying the nature of their employment and the period for which they were employed. Any person performing any acts with a view to finding employment for any person in contravention of the rules established shall be punishable by a fine not exceeding 5,000 lire. In more serious I72 FREEDOM OF ASSOCIATION cases, where the act does not constitute a first offence and has been carried out for purposes of gain, provision is made for. imprisonment for not exceeding one month in addition to the fine. Any employer engaging unemployed persons not registered in the employment exchange through any intermediary shall be punishable with a fine of from 50 to 300 lire for every worker illegally engaged and not exceeding in the whole 3,000 lire. Any unemployed person accepting an engagement without having been previously registered in an employment exchange shall be punishable by a fine not exceeding 300 lire. Every employer who does not, within the period prescribed, notify his engagements and dismissals shall be punishable by a fine of from 30 to 100 lire for every worker engaged, not exceeding an aggregate maximum of 2,000 lire, and from 50 to 200 lire for every worker dismissed, not exceeding an aggregate maximum of 4,000 lire. Every unemployed person who neglects to register in the employment exchange shall be punishable by a fine not exceeding 200 lire. Every such person neglecting to notify his engagement to the employment exchange in which he is registered shall be punishable by a fine not exceeding 50 lire. ad: Part played in economic life (p. 125, following title). As regards the part played by the trade associations in economic life, mention should be made also of the " inter-association committees" of the provinces. These committees were not contemplated by any law, but have come into existence for the purpose of dealing with special problems raised by the necessities of the economic and financial policy of Italy during the period of the gradual rehabilitation of the lira which preceded the de facto and subsequent legal stabilisation of the lira. The first stage to be covered was that of the reduction of wages up to a maximum of from 10 to 20 per cent, in conformity with a decision adopted by the Directorate of the Fascist Party under the presidency of the Head of the Government. The inter-association committees had the task of adapting this measure to local conditions. With a view to co-ordinating their action, these committees have in their turn been placed under the direction of a central committee presided over by the Secretary of the Fascist Party, and including the Under-Secretaries of State of the Ministry of Corporations and the Ministry of National Economy, the representatives of the great trade federations, of the National Co-operative Institute and of the Federation of Autonomous Bodies (enti autarchici) (communes, provinces and charitable institutions). The Government had previously, by Decree law, established a system of rent restriction, which did not allow rents to be raised to more than four times their pre-war amount. It had also lowered postal and transport charges and authorised the communal authorities to fix prices for the principal articles of consumption. This last measure not having produced the required effect, it was considered desirable, with a view to the adjustment of retail prices and the reduction of the cost of living, to entrust the inter-association com- ITALY )73 mittees with a moderating action for the determination of prices, calculated with due regard to the various elements in cost, which the federations of traders, themselves represented on the committees, also undertook to enforce as the basis of actual prices, and which were to serve as standards for t h e local authorities. T h e method followed for adapting economic values to the r a t e of exchange is regarded in I t a l y as one of the first important manifestations of corporative activity in the economic sphere. Recently the functions of the inter-association committees in the determination of retail prices have been assigned to the Provincial Economic Councils, which must establish price committees for the purpose. T h e inter-association committees continue in operation for the purpose of agreements concerning relations of employment, especially for agreements concerning wages '. ad: Part played in political life (p. 128, following t i t l e ) . T h e reform of parliament on a trade union and corporative basis has now been approved (Act of 17 May 1928, N o . 1,019, published in the Gazzetta Ufficiale of 21 May 1928, N o . 118). T h e number of deputies has been reduced from 560 to 400. T h e Kingdom forms a single electoral constituency. T h e thirteen great economic organisations which comprise the general body of Italian producers a n d workers submit to the Fascist G r a n d Council the list of candidates which they propose. T h e number of candidates so proposed is double the number of the deputies to be elected (800). E a c h of the great organisations proposes a number of candidates fixed according to its importance, and in each organisation the candidates are selected, one half by the associations of producers and the other half b y the associations of workers comprised in the organisation. T h e power of proposing candidates is granted, in the second place, to public institutions and associations, including de facto associations, of national importance p u r s u i n g objects connected with culture, education or assistance. T h e number of candidates proposed by such institutions and associations m u s t not exceed one-fourth of the total number of deputies to be elected ( 100). T h e candidates so proposed are submitted to the consideration of the Fascist G r a n d Council, which fixes the list of nominated deputies, who are freely chosen from the candidates submitted, a n d , if necessary, also from persons not included in the proposals, w i t h a view to introducing into the list persons of note in the sciences, letters, arts, politics and the army who have not been proposed. T h e list is subsequently submitted for the approval of the electoral body, which m a y vote " yes " or " no " in reply to the formula printed on the balloting ticket: " Do you approve of the list of deputies nominated b y the National Grand Council of Fascism ? " If at least one-half of the votes is not favourable, a new election takes place, for which the associations and organisations n u m b e r i n g 1 Cf. U. AILLAUD : " The Growth of the Corporation in Italy ". International Labour Review. Vol XVII, May 1928 174 FREEDOM OF ASSOCIATION at least 5,ooo members regularly inscribed on the electoral lists may submit lists of candidates comprising not more than three-fourths of the deputies to be elected. The candidates in the list which obtains the greatest number of votes are elected. The places reserved for the minority are distributed among the other lists in accordance with the number of votes obtained by each. The old universal suffrage is replaced by a suffrage of persons paying a trade union contribution or a certain amount of direct taxation, or who are owners or usufructuaries of public securities for a certain annuity, or who are in receipt of a salary of a continuous character from the funds of a public institution, or who are members of the Catholic clergy or the clergy of any other religious body recognised by the State. The Fascist Grand Council, to which the last-mentioned Act assigns such important functions, and the part played by which has been seen in the references made to the origin of the Labour Charter (pp. 116-125 of the text), was constituted by Mr. Mussolini immediately after the accession of Fascism to power. It has acted as the supreme liaison instrument between the revolutionary party and the Government, its task being to ascertain and define the broad principles of the new political, economic and social order. Although it played a preponderant part in political life, the Grand Council remained until recently merely a de facto body. It was accordingly decided a short time ago to transform it into a fundamental organ of the Constitution, and a Bill with that object, which was submitted to the Council during its session in September 1928 and unanimously approved, will be introduced into Parliament before the end of its legislative existence. * This Bill recognises the Fascist Grand Council as " the supreme organ for the co-ordination of all the activities of the régime resulting from the Revolution of October 1022 ". It will have a voice in the decision of all matters provided for in the Act and will be consulted in all questions of a constitutional character and in all other political, economic or social questions of national importance which may be submitted to it by the Government. To the first-mentioned domain of activity belong, in the first place, the formation of the final list of candidates for the Chamber of Deputies, which will subsequently be submitted to the vote of the electors in pursuance of the provisions of the Act previously mentioned, the approval of the rules, regulations and political aims of the Fascist Party and the nomination and dismissal of the secretary, deputy-secretary and the members of the directorate of the Party. As regards the constitutional questions on which the Grand Council must be consulted, the Bill, while not giving a complete enumeration of such questions, mentions the following as having in all cases this character: legislative proposals relating to the succession to the throne, the royal powers and prerogatives, the composition and operations of the Grand Council itself, of the Senate and the Chamber of Deputies, the attributes and prerogatives of the Head of the Government, the power of the executive to promulgate legal rules, trade union and corporative organisation, the relations between the State and the Catholic Church, international treaties involving a ITALY J 75 modification of the national territory or the renunciation of the annexation of new territories. .The Grand Council will also prepare and revise from time to time a list of names to be presented to the King, in case of vacancy, for the nomination of the Head of the Government. It will also prepare and revise from time to time a list of persons whom it considers suitable for assuming governmental functions in case of vacancies. The Head of the Government will be the President of the Fascist Grand Council. He will convene it when he considers it necessary and will fix its agenda. The Secretary of the National Fascist Party will be the Secretary of the Grand Council. He will convene and preside over the Grand Council in case of vacancy in the office of President or of the latter being unable to act. The sittings of the Grand Council will be secret and its decisions will be valid whatever the number of members present. Internal regulations approved by the Grand Council will fix the other rules for its operations. Members of the National Grand Council will receive no remuneration for their services. The Secretary, Deputy-Secretary, Administrative. Secretary and Members of the Directorate of the National Fascist Party will be appointed and dismissed by Decree of the Head of the Government in pursuance of a decision of the Grand Council. They will serve for three years and be re-eligible. By Royal Decree, on the proposal of the Head of the Government, the Secretary of the National Fascist Party may be called upon to take part in the sittings of the Council of Ministers. The following persons will form part of the Grand Council as ordinary members : the Presidents of the Senate and the Chamber of Deputies, the Ministers and the quadrumvirs of the March on Rome, the Under-Secretaries of State of the Presidency of the Council, the Ministry of Foreign Affairs, the Ministry of the Interior and the Ministry of Corporations, the Commander of the National Militia, the Secretary and Deputy-Secretary, the Administrative Secretary and the Members of the Directorate of the National Fascist Party, exministers who have served for at least five years since 1922, the Secretaries of the National Fascist Party retiring from Office since 1922, the President of the National Fascist Institute of Culture, the President of the General Confederation of Public Bodies (Enti Autarchici) (provinces, communes and charitable institutions), the President of the General Federation of Fascist Trade Unions, the President of the National Federation of Agriculturists and the President of the National Federation of Industry, the President of the National Institute of Co-operation, the President of the National Institution of the Balilla (boy Fascists) and the President of the Special Tribunal for the Defence of the State. The quality of member of the Grand Council is compatible with that of senator or deputy. No member of the Grand Council may be subjected to criminal proceedings or police measures without the authorisation of the Grand Council. Similarly, no disciplinary measure may be taken against the members of the Grand Council as members of the National Fascist Party without the authorisation of the Grand Council. 176 FREEDOM OF ASSOCIATION T h e quality of ordinary member of the Grand Council is conferred by Royal Decree on the proposal of the Head of t h e G o v e r n m e n t . T h e latter may by Decree call upon a n y persons w h o have deserved well of the nation or of t h e cause of the Fascist Revolution to take part in the labours of t h e G r a n d Council for a specified time or m a y call u p o n persons specially competent in any questions submitted for consideration by the G r a n d Council to participate in such labours as regards specified matters. a d : The legal and de facto regulation (p. 146). of independent trade unions T h e National Association for the Study of Labour Problems held its first general meeting on 17 J u n e 1928. I t will be interesting to reproduce the text of the two resolutions which it passed and which were communicated and explained to the Government on 9 July 1928: I The National General Meeting of 17 June 1928 held at Milan, referring to and supplementing the programme contained in the resolution of 16 January 1927, namely : The incorporation of the trade union as a public body in the State ; The co-existence on the one hand of associations legally representing an occupation open to all producers, and on the other hand of independent cultural associations pursuing objects of instruction, education and assistance ; The impartial examination of corporative trade union evolution and of all the institutions of the corporative State ; The intervention of the State in the regulation of economic activity and unprejudiced experimental judgment of the forms of management adopted ; Application of Socialism as a tendency of society in the moral, legal and economic sphere ; Renews its affirmation that the conception of liberty according to Socialist doctrine must be understood in a clear and categorical manner as implying complete and entire respect for the life of the individual so far as higher social considerations do not prevail and that the right of affirming ideas and expressing opinions should be normally guaranteed to all within the limits of national discipline ; Declares that the action of the association up to the present has entirely fulfilled the objects for which it was established; that is to say, the revision of independent trade unionism, the formation of a popular conscience v and the education of the masses with a view to rendering them capable of governing ; the moral assistance of the masses and the popularisation among them of the principles of public and private law which most directly concern them ; Accordingly, the meeting invites all persons present to co-operate in every way in the development and improvement of the association for the sole object of serving the nation and the socially useful and productive classes in a disinterested manner. ITALY I77 II The General Meeting of 7 June 1928 held at Milan, considering that it is premature to pass any judgment on the manner in which the institutions of the State are regulated, inasmuch as it is not yet possible to ascertain with precision : (a) In what bodies the official representatives of the productive citizens as a whole will be definitively incorporated and what will be their political and legislative powers ; how and with what prerogatives it will be possible to secure the continuity and legitimacy of the executive power ; (b) In what manner the organisation of production by the corporations, which is a necessary condition of the " corporative economy " contemplated, will be realised ; Again undertakes to make a thorough study of the constructive developments of these institutions. The meeting considers, on the other hand, that : By the legal recognition of trade associations and their coordination ; By the rules relating to the conclusion, lodging and validity of collective contracts; B3' the establishment of employment exchanges which in addition to their ordinary functions are entrusted with the supervision of the application of the conditions of contracts ; By the establishment of a tribunal for regulating individual and collective disputes ; By the services of social assistance created by employers ; By the measures of legal protection and compulsory insurance in force or in preparation ; The revision of the laws and the reform of the institutions for the protection of labour may be considered as almost completed. On this subject, however, the meeting observes that, as a result of certain imperfections and omissions which are not irremediable, the practical effect of these arrangements does not correspond to the imposing constructive effort. Accordingly the meeting, While formulating the following principles which it considers as absolutely necessary for securing the spontaneous and fruitful cohesion of the productive classes : (a) All producers should be able in complete liberty to participate in the legally recognised trade association, to co-operate m its technical and moral action, and be empowered to represent it and participate in its direction ; (b) Guarantees of continuity and free operation should be granted to independent associations established for objects of culture or assistance ; Calls the attention of all competent persons to the following points which it considers as calculated to contribute to the improvement of trade union organisation and institutions of assistance and social insurance ; 1. Legal associations should be officially constituted for all occupational categories not yet organised (failing this, the power of representation should be confided to the workers' organisations as a whole) in order that the contractual clauses contemplated by the Labour Charter may be applied, imperatively if necessary, to all workers without exception. Freedom of Association 12 i78 FREEDOM OF ASSOCIATION 2. Trade union representatives in factories or undertakings should be recognised for the purpose of the rapid and pacific settlement of conflicts arising in work-places and the supervision of the application of all conditions (contractual, legislative or administrative) established for the physical, hygienic and moral protection of the workers. 3. Employment exchanges should be established throughout the national territory and for all occupational categories so as to exercise a regulative action on all labour markets and to eliminate agents carrying on business for gain. Further, the date of registration and occupational capacity should alone determine the right of priority in engagement. 4. The corporative functions of assistance to workers should be vested exclusively in the recognised trade associations, and carried out for the latter by the Institute for Social Assistance and similar offices, with the moral and advisory co-operation of the independent cultural associations. 5. The tribunal for the regulation of collective disputes should act in all cases where a direct agreement has not been obtained, and not only in exceptional cases. The judicial machinery for individual disputes which will be in operation from October should be rendered more easily accessible, particularly in matters of small material importance by means of periodical sittings iu districts least well provided with tribunals. 6. Accident insurance (extended to all categories of workers and supplemented by the assimilation of occupational diseases to accidents and carried out by a single semi-public institution according to the principles of public social services) should have for its object, in addition to the payment of an adequate pension in case of serious invalidity, the development of preventive measures both technical and hygienic and the re-establishment of the capacity for work in the victims of accidents by means of effective medical treatment and vocational re-education. 7. Insurance against involuntary unemployment (extended to categories at present excluded and organised as a trade union or corporative function) should pay daily allowances more nearly corresponding to the elementary requirements of existence. It should be considered not only as an object in itself but also as a necessary complement to the functions of supervision of the labour market and finding employment and as an instrument for the development and improvement of the occupation. It will find in the joint trade funds the form of administration most suitable to its objects and offering an initial basis for a corporative co-operation capable of undertaking the study of the economic, hygienic, technical and vocational problems inherent in the different categories of production. 8. General sickness insurance (to be introduced as soon as possible and extended to all the workers) should have for its object the granting of complete medical assistance to families (side by side with the economic assistance separately granted to insured persons and their dependants). It should accordingly include the complete protection of maternity and childhood. Administered by a single fund in each territorial district, it should become the centralising organ of the public administrative and health services and of other branches of social insurance. Including all workers and penetrating directly by virtue of effective assistance into family life, it will the better stimulate throughout the country a real educative comprehension of the material and moral advantages of social insurance. SPAIN CHAPTER I HISTORY OF TRADE UNION LAW AND THE TRADE UNION MOVEMENT The legal status of trade associations in Spain was profoundly modified by the growth of political institutions and industrial development in the nineteenth century. The old guilds gave way to new organisations of workers and employers, founded on the free initiative of those actually concerned. To-day, on the basis of these free trade organisations, the legislature has established a new corporative organisation which, like the old guilds, though on modern lines, aims at co-ordinating all the forces of national activity. That is, in outline, the process of development. Taken broadly, two periods may be distinguished. The first is from the abolition of the guilds until the regulation of the freedom of association in 1887 ; the second is the period of the statutory freedom of association that started in 1887, and lasted until the promulgation of the Decree on corporative organisation in industry. This first chapter will deal briefly with the principal events characterising each of these two phases of evolution. § 1. — Period previous to 1887 ABOLITION OF THE GUIÌ.,DS As in most other countries, the Middle Ages had bequeathed to Spain a social, economic and religious organisation which found expression in the guilds and brotherhoods. The guilds and the brotherhoods satisfied different needs. According to certain authors, the formation of the latter under the old regime was inspired by " class motives ", whereas the former i8o FREEDOM OF ASSOCIATION were t h e outcome of " economic motives ". T h i s distinction explains w h y certain monarchs organised guilds but prohibited brotherhoods. T h u s , the Burgos Order of 1500, for instance, concerning tailors, governed their industrial conditions, b u t prohibited t h e members of the trade from forming a brotherhood, union, or similar association. I n spite of all restrictions, however, t h e n u m b e r of brotherhoods increased, and m a n y were still in existence a t t h e beginning of t h e nineteenth century. I n 1770, according to t h e information collected by the Superior Council of Castile, t h e r e were 25,927 '• Similarly t h e guilds, a l t h o u g h t h e y had lost their original importance, survived in their capacity as industrial organisations, during the eighteenth and the first decades of the nineteenth centuries. But after their conversion into compulsory closed corporations, strictly supervised by the State, they lost all life and practical.influence. Moreover, they were vigorously fought by the economists of the day. T h e y were accused of " putting a stop to honest emulation, preventing the progress of the arts, provoking a p a t h y , and introducing a monopoly injurious to the public and national commerce " 2 . A first step towards the system of industrial freedom was taken in 1783. A n Order of 5 J u n e of t h a t year provided t h a t " t h e brotherhoods of workers and the. guilds must dissolve and take the form of friendly societies and funds for providing the arts and crafts with raw materials ". A few years later t h e Orders of 25 M a y 1790 and 1 March 1798 prescribed t h a t all persons, whoever they might be, had the right to work in their trade or occupation without other formality t h a n t h a t of certifying their competence. But the decisive step was not taken until after t h e constitutional reform that was begun at t h e first meeting of the Cortes at Cadiz in 1810. On 8 J u n e 1813 a Bill for introducing industrial freedom was passed. I t provided t h a t " any Spaniard or any foreigner who decides to settle in one of the towns of the K i n g d o m m a y freely establish a factory or t r a d e of a n y k i n d without being compelled to obtain a licence or enter a guild ". 1 CANGA-ARGÜELLES : Diccionario d'e hacienda. Second edition, Vol. I, p. 211. Madrid, 1833. 2 Bernardo W A R D (of His Majesty's Council, and member of the Junta of Commerce and Currency) : Proyecto económico en que se proponen -varias providencias dirigidas a promover los intereses de España con los medios y fondos para su plantificación, escrito en el año 1762. Madrid, 1782. SPAIN l8i But the principle of the freedom of industry and work had not been finally established. A few years later t h e " absolutist reactionary " Government repealed the Decree of 8 J u n e 1813, and, on the p r e t e x t t h a t the powers given by the Cortes t o carry on an industry outside a guild were the ruin of civil order, a Royal Circular of 29 June 1815 prescribed t h e re-introduction of the Orders relating to guilds. T h i s interlude, however, lasted only t w e n t y years. On 20 January 1834, the Queen Mother again raised the question and introduced the following distinction : It shall be lawful to form a guild or assembly of men moved by a common interest, for the purpose of stimulating the progress of the respective industries, and assisting each other to satisfy their needs, on condition that it is placed under the authority of the municipal authorities, that it enjoys no privileges, that it does not monopolise work or organise trade in the products for the benefit of specific individuals. On the other hand, the rules of guilds were not to be approved if t h e y were " contrary to the freedom of manufacture, the home circulation of goods and products of the K i n g d o m , or the unlimited competition of labour and capital ". T w o years later the Government, by the Decree of 6 December 1S36, restored the Decree of 8 J u n e 1813, and definitely established the principle of t h e freedom of work in Spain. After t h a t t h e guilds could exist only as mutual-aid and charitable associations. PROHIBITION OF T H E R I G H T OF ASSOCIATION T h e proclamation of the freedom of industry was to produce farreaching changes in social organisation. T h e new regime by encouraging the growth of large-scale industry, contributed to t h e concentration of large masses of workers, whose only resources lay in t h e remuneration for their work. Moreover, economic competition, by its tendency to reduce wages as a factor in the cost of production, made the association the only weapon of defence of the wage earner. T h e problem of the freedom of association was raised as early as 1820 b y patriotic societies and associations of ttíe partisans of constitutional monarchy, w h o drew their argument from Article 371 of the Constitution of Cadiz, guaranteeing to all Spaniards " the freedom t o write, print and propagate their political views without previous authorisation and without other restrictions and liabilities than those established by the law ". But the Government of the l82 FREEDOM OF ASSOCIATION day considered that a distinction should be made between " the right of freedom of speech and the action of societies which surreptitiously may create a state within the State ". The Act of i November 1822 accordingly authorised political meetings only on condition that certain preliminary formalities were fulfilled. If these meetings were to be held periodically, the persons who took pant were to submit the rules to the authorities, " not with a view to obtaining approval, but only for examination whether they contain provisions calling for the attention or intervention of the Government " . These societies had no right of petition, a privilege reserved for recognised associations. The system of regulation was aggravated in 1845 : in the first place by the Act of 2 April 1845, giving the political authorities or provincial governors the power, at their discretion, to grant or refuse authorisation for all public meetings, as well as the right to preside over such meetings; and, secondly, by the Order of 30 May 1848, which defined all societies as unlawful " where newspapers were read or political questions discussed ". All these measures related only to political associations, but the question of freedom of association was also to arise for trade associations. The attention of the Government had been particularly drawn to this aspect of the problem when in 1862 a Deputy presented to the Congress a petition of 15,000 workers at Barcelona for " the right to associate so as to fight against capital in a noble and peaceful manner ". At that time, what was the position of workers' associations? For them the prohibitions of the general law briefly described above were strengthened by the repressive provisions of the Penal Code against combinations. The first Penal Code, adopted in 1822, prohibited, on pain of severe penalty, all leagues and combinations of employers or workers. The 1848 Code, which took its place and was in turn amended in 1850, was no less rigorous. In section 450 it prohibited agreements for the purpose of modifying prices, and punished combinations for increasing or reducing the remuneration of work in an abusive manner, or for regulating conditions of work. The members of a combination actually formed were liable to a fine and imprisonment, the maximum penalty being imposed on the leaders and promoters. The Penal Code of 1850 also punished secret societies with special severity. Persons who acted as leaders in such a society were SPAIN 183 punished", according t o circumstances, by imprisonment, banishment, and t h e final loss of civil rights. T o complete this account of the repressive regulations on associations in force in the first half of t h e n i n e t e e n t h century, reference should also be made to certain exceptional measures, such as the martial law of 17 April 1821 on conspiracies, a n d the Order of 20 October 1835 on the state of siege, which further intensified the regulations of the general law. P R I N C I P L E OF T H E FREEDOM O F ASSOCIATION T h e r e was no change in the situation until after the revolutionary movement of 1868, which led to the fall of the Bourbons. On 20 November 1868, Sagasta, a member of the Provisional Revolutionary Government, promulgated a Decree guaranteeing to all citizens t h e r i g h t freely to form associations without other formality t h a n t h a t of notifying the local authorities of the aims, rules, and agenda of the association. T h i s was the prelude t o t h e recognition of t h e right of association for trade purposes by t h e Constitution. T h e Constitution of 1869, which gave expression t o the revolutionary movement of 1868, expressly mentioned freedom of association for the first time. According to Article 17, " n o Spanish citizen m a y be deprived of the right freely to express his opinions, the right t o meet peacefully, the right to associate w i t h others for all purposes of h u m a n life not contrary to public morals, and the right, individually and collectively, to petition the Cortes, t h e K i n g , and the authorities ". Article 19 restricted this right as follows : Any association whose members break the law by the means supplied by the association may be liable to the penalty of dissolution. The Government authority may similarly pronounce the suspension of an association which breaks the law, and immediately denounce the guilty party to the competent judge. Any association whose aims or means of action compromise the State may be dissolved by an Act. T h e Constitution of 1869 was only transitory, but the of the freedom of association h a d been established. I n Cortes of the Republic similarly included in t h e draft Constitution prepared by Castelar t h e right of peaceful and association " among the natural, personal rights that no shall have the power to suppress and no law may limit ". principle 1873 the Federal assembly authority Finally, the Constitution of t h e Bourbon restoration of 1876, l84 FREEDOM OF ASSOCIATION which is still in force, continued on this point with the tradition of the Revolutionary Constitution of 1869, and in Article 13 definitively guaranteed the right of assembly and association. On another point, on the contrary, the new Constitution was more severe than that, of 1869. Article 17 of the 1876 Constitution empowers the Government in emergency, and in the absence of the Cortes, to suspend certain constitutional guarantees, in particular that of the right of association. On several occasions, as will be shown below, the Government made use of this power. The proclamation of the constitutional principle of the freedom of association led in turn to the reform of the Penal Code and the revision of the special laws on assemblies and associations referred to above. The new Penal Code of 1870 contains a special chapter on the punishment of offences committed in connection with the exercise of the rights guaranteed by the Constitution. In application of Article 13 of the Constitution, the Code punishes, on the one hand, offences committed by private individuals, and on the other the abuses of power of which public officials may be guilty. A public official who is guilty of arbitrary acts likely to hamper citizens in exercising the right of assembly and association renders himself liable to a fine, the suspension of his employment, or the loss of his civil rights. As regards private individuals, the Code' imposes the penalty of a fine, imprisonment, and even hard labour, for the organisation of other than peaceful assemblies or demonstrations (see Penal Code, sections 189 to 197) and unlawful associations (sections 198 to 203). The revised Code also imposes Fhe severest penalties for rebellion and sedition (sections 243 to 262). These provisions of the Penal Code are supplemented by those of the Act of 20 to 23 April 1870 concerning public order, which gives the Government exceptional powers to deal with " the state of siege and the state of war ". Definitive regulations as to the public assemblies not covered by the Penal Code or special laws were not adopted until the Act of 15 June 1880. According to this Act, the right of peaceful assembly guaranteed to all citizens by Article 13 of the Constitution shall be subject to the following restrictions only : the promoters of a public meeting — the law defines a public meeting as one attended by more than twenty persons, which is held outside the ordinary domicile — must notify the public authorities in writing of the purpose, time, and place of the meeting. Meetings, demonstrations, SPAIN ISS and processions on the high road must be authorised in advance. The representatives of the public authority may attend meetings, but not take part in the discussions. The public authorities have the right to dissolve all meetings held contrary to these provisions, or dealing with other matters or held at other places than those defined in the statement, as well as those likely to interfere with communications. Obviously the assemblies defined in section 189 of the Penal Code are prohibited, as well as those at which offences are committed or it is decided to commit offences. In the last case the authorities notify the Government and institute proceedings before the ordinary courts. These are. the legal changes in the general regulations as to assemblies and associations which followed on the proclamation of the principle of the freedom of association in the Constitution. On the other hand, the constitutional recognition of the freedom of association had no effect on the provisions relating to the offence of combination. I,ike the earlier Codes, the Penal Code of 1870 imposesa penalty of one to six months' imprisonment for combinations intended to produce a rise or fall in the remuneration of labour, or to regulate the conditions of work — on condition, however, that the combination has actually begun to act. The maximum penalty is imposed on the heads and promoters of the combination and persons responsible for violence or threats, without prejudice to any more serious penalties for such offences under the general law. In brief, although the principle of freedom of association was thus established, the constitutional guarantee did not apply automatically and without reserve to trade associations. In the absence of special regulations for such associations, the special legislation on unlawful associations gave the authorities the greatest power to intervene in the constitution and working of trade unions. Combinations and strikes were still prohibited. In Spain — as, indeed, in all other European countries — it was not until trade organisations had become sufficiently strong in fact that the legislature was led to grant them constitutional rights.. EVOLUTION OF T H E T R A D E UNION MOVEMENT Benevolent Societies Under the legislation briefly analysed above, most associations,. such as guilds, brotherhoods, and secret, patriotic or revolutionary societies, were alike subjected to persecution. Only charitable l86 FREEDOM OF ASSOCIATION societies, mutual-aid societies, and co-operative societies were regarded with approval by the executive authorities. It followed that (the workers in their desire for association turned for preference towards these forms of organisation. Thus,.as early as the first half of the nineteenth century many charitable associations were founded, as well as mutual-aid societies, some of them definitely educational in character, such as the Barcelona labour schools, relief funds, and even co-operative societies. In the same way the legislature, at least at first, regarded these societies with toleration ; a Royal Order of 28 February 1S39 recommended the formation of mutual-aid societies to take the place of the guilds. By degrees, however, as these societies, which at first often comprised both employers and workers, became centres of labour resistance, the Government began to react. The Royal Order of 26 November 1859 gave the public authorities a right to examine their constitution by treating them on the same footing as benevolent institutions, which they could set up or suppress at their own discretion. After that the restrictions became more marked. In Catalonia, a province which had been the pioneer of the movement, special restrictions were adopted. The societies in question were no longer authorised under a general measure, but the Government confined itself to approving particular societies and then only after the fulfilment of many formalities. As regards co-operative societies, it was not until 26 June 1870 that an Order of the Revolutionary Government granted them the privilege of the constitutional freedom of association. In spite of these restrictions, mutual benefit and co-operative societies continued to develop, and they strengthened the spirit of organised solidarity among the workers. Parallel with, and often under cover of, this movement, specifically labour organisations were also formed, either political or trade union in character. The International Working Men's Association The political revolution of 1868 and the creation at the same date of the Spanish Section of the International Working Men's Association marked an epoch in the evolution of the trade union movement. Before that date the ideas of social emancipation had hardly gained any hold on the workers; Socialist propaganda had kept more to the political ground than to that of the trade organisation of the working class. Barcelona, the principal industrial centre SPAIN I87 of Spain, had been the stronghold of this movement. As early as 1*840 the workers had taken an active part in the Republican and Socialist Pronunciamento of that year. They had similiarly supported the regency of General Espartero, and had taken part in the revolutionary movements of 1850 and i860. But side by side with this political action the Barcelona workers had laid the foundations of trade association, properly so called. A first workers' federation, " The Union of Classes " was constituted. In 1855 the new federation organised the first general strike, taking as its motto " Association or death; bread or work ". In reaction against the persecution of the charitable societies, it claimed, in addition to the freedom of association, a ten-hour day and the creation of joint committees. All these movements, whose arena was the industrial area of Catalonia, reacted on the agricultural districts of Andalusia, particularly beyond the Guadalquivir in Lower Andalusia. As an example of the many campaigns characteristic of these movements, reference may be made to the rising of the inhabitants of Casa Bermeja in the province of Malaga, who in 1840 divided up among themselves certain large estates. Similar disturbances in which the workers' organisations were involved took place at Madrid in 1840, Saragossa and Valencia in 1S55, Valladolid, Palencia, and Zamora in 1856, Olivenza and Badajoz in 1859, and elsewhere. It was in this disturbed atmosphere of party feeling that the Spanish Section of the International Working Men's Association was formed, thanks to the 1868 revolution. Its aim was to unify the labour movement and give it a definite programme. Its first action was the issue of the " Manifesto of the Madrid Section of the International Working Men's Association to the Workers of Spain " on 24 December 1869, as soon as the state of siege had been raised. Soon after, the first Labour Congress was held at Barcelona, which attracted much attention throughout the country. The rapid progress of the new organisation, however — even at that date the Spanish Section of the International Working Men's Association had 25,000 members, grouped in 149 federations, with 361 sections and 12 regional unions — began to prove a source of anxiety to the public authorities. The question of the legality of the International Association was raised in the Chamber of Deputies. Supported by the Chamber, the Government issued the Royal Order of T6 January 1872, giving the provincial governors instructions as to l88 FREEDOM OF ASSOCIATION " public order, the International, and filibustering ". The International Working Men's Association was declared' unlawful and unconstitutional, and was sued for breach of the provisions of the Penal Code relating to unlawful associations. At the same time, the Order instructed the governors " to protect the right of association with a view to all the lawful aims of human activity, and to promote the formation of co-operative and other kinds of societies aiming at the improvement of the conditions of the working classes and the reconciliation under cover of the law of the possibly distinct, but not antagonistic, interests of employers and workers ". The result of these measures was to put a stop to the development of the trade union movement for a time. Moreover, the young organisation [was already undermined by conflicting tendencies : Federalism and Anarchism on the one hand, Socialism and Marxism on the other. At the Saragossa Congress in 1872 the rupture was complete; the Anarchist elements, which much outnumbered the others, held a congress at Cordoba, while the Socialist elements founded a new organisation at Toledo in the following year. Although weakened by dissension, the movement gained fresh impetus during the brief republican interlude of 1873, but the revival was of short duration. On 10 January 1874,. on the eve of the restoration, General Serrano announced that the Government of the Republic, " persuaded as it was of its duty to go to the root of the disturbances and destroy it, and having decided to prosecute any association which, like the Spanish Section of the International Working Men's Association, attacked the family and the other foundations of social life ", decreed the immediate dissolution " of all political assemblies and societies whose members conspired by word and deed against public safety, the sacred interests of the country, the integrity of Spanish territory, and constituted authority ". This was in fact the legal suppression, pure and simple, of the Spanish Section of the International Working Men's Association. However this may be, these first attempts at labour organisation had the advantage of drawing the attention of the authorities and public opinion more and more to the social problem as a whole, and the problem of trade association in particular. The Government was thus led to make a general enquiry into the social position of wage earners. 189 SPAIN The Enquiry into the Social Position of Wage Earners of 1882 • As early as 1855 certain politicians had demanded the creation of a committee " to define, and estimate the t r u e value of t h e causes of the difficulties between employers and workers in the manufacturing provinces, and to propose to the Government t h e most suitable means of b r i n g i n g these to a happy end " l . T h e Cortes of 1869 had similarly asked t h a t a parliamentary enquiry into the position of the working class of Spain should be undertaken. T h e subject was taken up again in 1871, but nothing came of it until Moret, by the Royal Decree of 5 December 1882, set up " the Commission for studying questions relating to the improvement of t h e conditions of life and welfare of the w o r k i n g classes, both agricultural a n d industrial, and affecting the relations between capital and labour " 2 . • T h e G o v e r n m e n t proposed, on the one h a n d , to create a permanent organisation for enquiry, and, on t h e other, to prepare social legislation on the data furnished by the Commission. I n this way it aimed at obtaining t h e assistance of the persons for whom it would legislate. T h e Commission was empowered to ask t h e workers' associations to take part in the enquiry, and in 1884 municipal and provincial committees were set up on which t h e w o r k e r s ' associations were to be represented by five and ten members respectively. Organised bodies and institutions were invited to designate the persons responsible for such representation, w h e t h e r of employers or workers. T h i s w a s equivalent to an official recognition of t h e social utility of t h e workers' associations, a n d m a n y of them decided to take part in the enquiry. One of t h e results of the enquiry was t o induce the Government to pass the Act of 30 June 1887 on associations. 1 Adolfo BUYLLA : La riforma social en España. Address to the Academy of Moral and Political Science, Madrid, 1917. - See the brochure with this title published in Madrid in 1890, which contains the Royal Decree setting up the Commission, the Circular to the governors, the instructions as to provincial and local committees, and verbal and written enquiries. It also contains a detailed questionnaire. I90 FREEDOM OF ASSOCIATION RECOGNITION OF T H E F R E E D O M OF ASSOCIATION FOR TRADE PURPOSES I t will be remembered that t h e principle of the freedom of association h a d been finally established b y the 1S76 Constitution. T h e purpose of t h e 1887 A c t was t o define t h e methods of application. W i t h o u t entering now into a detailed analysis of this Act, which still constitutes t h e basis of t h e status of associations a n d will b e studied later, some account should be given here of t h e principles u n d e r l y i n g t h e A c t . Certain authors have summarised t h e m as follows : A n association constitutes a social person which is born naturally a n d spontaneously a n d n o t b y t h e will of t h e administrative authorities. I t is for the judicial and not for t h e executive authorities to intervene in cases of breach of t h e law i n connection with the constitution a n d working of an association. I n other words, instead of t h e preventive system so far in force, t h e system should be repressive. T h e legal status of all associations, w h e t h e r of employers or of workers, should be t h e same, without privilege or favour. T h e discussion on t h e Bill was not thoroughgoing, for t h e r e was a tacit agreement between the 'parties on the subject of these principles. T h e only manifestation of the Liberal opposition was t h e counter-project of Comas, introduced in the Senate, where it was not even discussed. T h e following are some of Comas' objections to t h e 1887 A c t : The fact of association (he said) had creative virtues from the point of view of law. An Act on associations should aim at governing the relations that ought to exist between free associations and the public authorities as regards : (1) the official recognition of their existence, which is indispensable for guaranteeing the integrity of the personality of the association and the security of its property ; (2) their independence and liberty in exercising their functions ; (3) the responsibility for their acts with a view to protecting the right of supervision which it is the duty of the authorities to exercise as the foundation of social order. In the opinion of the author of the counter-project, the 1887 Act did not satisfy these needs, but was incomplete, unjust, and open to many ambiguities. However this m a y be, t h e Act of 1887, such as it was, was some improvement on t h e previous situation. F u r t h e r m o r e , under the influence of the g r o w t h of the trade union movement, this Act became completed by a series of laws to be analysed below. SPAIN ICI § 2. — Period after 1887 GROWTH OF THE T R A D E UNION MOVEMENT After the split of 1872 1 the Spanish trade union movement developed on two distinct lines, that of Revolutionary Anarchism and that of Reformism. The principal stages of this evolution will be rapidly sketched. The Labour The Anarchist Revolutionary Movement Movement At the Anarchist Congress of Valencia in 1888 the Spanish Section of the International Working Men's Association was finally dissolved, and instead a Committee of Relations and Statistics was created. In accordance with their doctrine, and no doubt also to evade the repression of the authorities, the Anarchist leaders considered that there was no need for centralised organisation, nor for large funds for effectively supporting the fight against employers. In their view, strikes, whether partial or general, based on the spontaneous solidarity of the working masses, were the best weapon for enforcing their demands for improvement in conditions of work \ At the same time the Committee tried to keep in touch with the.mass of wage earners by periodically holding congresses, and by creating new federations and centres of labour solidarity. In 1910, however, the central organisation of the revolutionary trade union movement was reconstituted under the name of " The General Confederation of Labour ". This body, whose influence was exercised mainly in the industrial centres of Catalonia and the agricultural centres of Andalusia, played a predominant part in all the social disturbances — partial and general strikes, strikes in public services, attempted insurrection — which have characterised the last twenty years of public life in Spain. After the war, in particular, the General Confederation of Labour attained first-rate importance. It acted then as the champion of the 1 See p. 188. Among the more important strikes of this period were those in Biscay and the Asturias in 1890, Barcelona and Bilbao in 1892, Malaga in 1894, Madrid in 1895, Gijon, Corunna and Seville in 1901, Barcelona and Alcalá del Valle in 1902. In 1892 there was a strike of telegraphists in State employment. 2 ÎÇ2 FREEDOM OF ASSOCIATION complete organisation of wage earners on the widest possible territorial basis. For this purpose k founded unified trade unions, grouping wage earners in the various trades and belonging to the various industries, and these were in turn combined in regional and national federations. The Confederation reached the climax of its development when in 1919 k was joined by the National Federation of Agricultural Workers, founded in 1913 at the Cordoba Congress, and consisting mainly of agricultural workers of Andalusia. At the Madrid Congress held in December 1919 the General Confederation of L,abour stated that its membership was from 800,000 to a million. The Government, disturbed by the rapid progress of the revolutionary movement, had recourse to all the measures of repression placed at its disposal by the law : suspension of constitutional guarantees under Article 17 of the Constitution, judicial proceedings against the unified trade unions under the provisions of the Penal Code on unlawful associations, proclamation of a state of war under the Act of 23 April 1871. Further, the Governor of Barcelona, Count de Salvatierra, instituted by a Circular of 21 January 1920 a system ot general supervision of all associations in that province. As a matter of fact, after this measure, the large majority of the trade unions found it legally and practically impossible to exist. Those which continued in existence after the application of the measure did so by virtue of special toleration, whether express or tacit. On 6 August 1920 the attorney of the Supreme Court issued a Circular to the attorneys of all the high courts in the country, making the collection of contributions by workers' associations, which had been declared suspended by the Government authorities, a fraudulent act. By this Circular the act of closing down the headquarters of an association and 'seizing its books and documents, by virtue of the suspension of constitutional guarantees, was made equivalent to a sentence, without appeal, of dissolution by judicial authority as provided for in the Act on associations. In consequence of these repressive measures in the first place, and subsequently of the military revolution, the influence of the General Confederation of Labour rapidly declined To-day it has practically ceased to exist. The Reformist Trade Union Movement Side by side with the Anarchist revolutionary movement, those trade union organisations developed which had withdrawn from the SPAIN I93 International Working Men's Association in 1887. The General Federation of Spanish Workers, which represents this tendency, was formed in 1888 at Barcelona on the occasion of the International Exhibition and it was immediately joined by the National Union of Societies of Resistance. The Reformist trade union movement is distinct from the revolutionary movement as regards both methods of organisation and programme of action. At its first congress the Federation adopted rules defining its aims and the means it proposed to use. The end in view is the improvement of the social position of its members. The means to be used are, on the one hand, organised strikes and, on the other, public action- with a view to promoting the adoption of social legislation. The General Federation tries in the first place to prevent unorganised and ruinous strikes, and, in accordance with its strike regulations, only to support well-organised movements which have the greatest chance of success. Secondly, and often in close agreement with the Socialist Party, it acts as the principal' promoter of labour legislation. It was under its direct influence that the first laws for the protection of labour were voted, from 1900 onwards. Since then, the Federation has taken part in the work of the official bodies set up by the Government, such as the committees of the Institute for Social Reform and the local offices (delegación) of the Ministry of Labour, the Government having made it easier for tra'de associations to collaborate with these official bodies by leaving it to the organisations themselves to designate the worker and employer members. The prudent tactics adopted from the first by the General Fedeiation usually won for it the toleration of the public authorities. It may be recalled, however, that on the occasion of the general strike of 1911, the General Federation of Spanish Workers, like most trade unions, was dissolved as an unlawful association whose rules had not been approved by the Government. But this measure of prohibition had no lasting effect. The result of the severe repression which followed the widespread social agitation of the last years of the'war and after the war was for a time to bring together the two principal labour organisations in Spain, the General Confederation of Labour and the General Federation of Spanish Workers. Negotiations with a view to agreement were conducted during three years and led to the conclusion of an alliance in 1920, but this union was only transitory, for it was Freedom of Association 13 194 FREEDOM OF ASSOCIATION denounced t h a t same year on the occasion of the general strike proclaimed by the General Confederation of Labour, but not approved b y the General Federation of Spanish W o r k e r s . T h e very increase in its importance after the war compelled t h e General Federation of Spanish W o r k e r s to define its programme of action and strengthen its structure. Until 1918 trade union rules of t h e kind established by the first congress, which have already been analysed, were modified only in detail. I t was not until the fourteenth National Congress (1918-1919) that t h e General Federation decided on the programme which, in the main, still inspires its action \ T h i s programme proclaims the principle of t h e class war as the fundamental doctrine, establishes the political and religious neutrality of the trade union movement, demands the introduction of workers' control with a view to the nationalisation and socialisation of u n d e r takings, and defines t h e attitude of t h e General Federation of Spanish W o r k e r s towards various social, economic, and political problems. T h e revision of the programme of action was accompanied by t h a t of methods of organisation. T h e Federation proposes to substitute for the system of organisation by trade that of organisation by industrial federations. T o this end, it recommends t h e e x i s t i n g organisations, founded on the principle of organisation by trade and maintained in view of their local utility, to join their respective industrial federations. Finally, the General Federation announces its intention of taking a direct part in political life. The political apathy of the masses (says Mr. Caballero) has certainly contributed to Government repression. In Spain, the political and social rights of the workers have always been a myth. The constant suspension of constitutional guarantees and the frequent proclamations of a state of siege have prevented the workers from exercising in full freedom, the rights of assembly, association, free speech, and thought 2 . T h e General Federation of Spanish Workers is to-day the most important and representative wage earners' organisation in Spain : t h e following table shows t h e steady growth of its membership. 1 F. L. CABALLERO : Presente y jw-uro de la Union general trabajadores de España, pp. 185-225. 2 Ibid., p. 239. de I95 SPAIN 1 Year Number of trade unions MemberA Year ship Number of trade unions Membership ! i88q 27 1890 1891 1892 1893 36 54 79 no 79 69 65 69 1895 189Ó 1899 1900 1901 1902 1903 1904 1905 1906 246 240 301 305 328 6,276 1907 1908 1909 1910 1911 1912 376 128,914 6,154 15,264 1913 1914 147,729 127,804 352 14,737 29,383 32,778 46,896 56,900 373 56,905 274 36,557 1915 1916 1917 1918 1920 1922 1923 1924 351 393 384 438 464 172 226 282 3.355 3,896 5.457 7,170 8,848 457 1,078 1,198 1,275 1,299 32,405 32,6l2 43,478 40,984 77,749 121,553 76,304 99,52° 89,601 211,342 208,170 310,617 •»10,741 The Free Trade Unions Besides the two principal organisations of wage earners, the General Confederation of Labour and the General Federation of Spanish Workers, reference should also be made to the Federation of Free Trade Unions and the National Federation of Catholic Trade Unions. The free trade unions, which were first formed in Barcelona in 191S, brought together workers of various tendencies who were united in their opposition to the General Confederation of Labour. It may be remembered that this rivalry soon degenerated into free fights between the " unified trade unions " and the " free trade unions ". Being supported by employers and the public authorities, the free trade unions soon acquired a privileged position. Certain features of trade union legislation may in fact be explained by the wish of the Government to promote the development of a trade union movement based in essence on organisation by undertaking and trade, and in favour of class collaboration. Already at the outset, the Federation of Free Trade Unions had over 50,000 members, and its influence has steadily grown, its membership now being over 100,000. The National Federation of Catholic Trade Unions, whose programme may be summarised in the well-known motto " free unions 196 FREEDOM OF ASSOCIATION within the organised trade ", now has 220 affiliated unions and over 50,000 members. At the present moment, an attempt is being made to amalgamate the Federation of Free Trade Unions and the Catholic Federation. If these attempts succeed, the new organisation would no doubt very soon become larger than the General Federation of Spanish Workers. The Employers' Movement Faced with the growing influence of the organised labour movement, especially as embodied in the General Confederation of Labour, employers began to feel the need of establishing a united front against the workers' organisations. They gave up their first associations, which were religious rather than economic in character, and began to organise on the basis of social resistance. The Spanish Employers' Federation was founded in 1911 with a view to co-ordinating the action of employers' organisations, placing them in touch with official bodies and the Government in respect of all social and fiscal legislation, and improving the relations between employers and workers. The first National Congress was held in Madrid in 1914, on which occasion the Spanish Employers' Federation decided to make itself an association in accordance with the 1887 Act on associations. At the second Congress held at Barcelona in 1919, the Employers' Federation defined its attitude towards social policy. Among other things, it expressed its disapproval of various actions of the Institute of Social Reform and of certain reforms in the field of labour legislation. As a matter of fact, in its campaign of resistance, the Employers' Federation made use of the weapons current in the opposite camp, no doubt in order to cope with the risk of revolution, which was considered imminent during the troubled period from 1917 to 1922. This explains the frequency of partial and general lockouts, their intervention in trade union conflicts with a view to producing scission and fomenting rivalry in the ranks of the workers, attacks against certain Governments which were accused of favouring the labour movement, and even appeals to public force and military organisations. But with the weakening of the General Confederation of Labour and the return to a normal situation, the policy of the Employers' Federation has changed. To-day employers' and workers' organisations collaborate on an equal footing in the joint official bodies set up by the Government. <97 SPAIN Some mention had to b e m a d e of t h e bitterness w i t h which t h e social struggle was conducted on both sides, for it was the desire to p u t an end to this state of constant disturbance t h a t explains t h e m a n y legislative measures taken successively by the several Governments a n d the military dictatorship for t h e stable organisation of collective labour relations. . B I L L S A N D A C T S S U P P L E M E N T I N G T H E 1887 ACT Most of the Acts passed since 18S7 are still in force to-day, but their principal provisions have been codified in the l e g i s l a t i v e Decree of 25 November 1926 on the organisation of industry on a corporate basis. I t will therefore be sufficient to give a brief account of their contents. I n view of the marked growth in trade organisations, the Spanish Government had become convinced t h a t the 1887 Act, which was confined to prescribing in what conditions associations might be constituted and worked, without giving t h e m any kind of representative character, no longer satisfied all trie new needs arising out of the trade union movement. All the Bills for amending the Act of 1887 aimed in fact at giving t r a d e associations — whether on the basis of compulsory or of free association — sufficient power to enable t h e m to intervene effectively in the regulation of conditions of work. T h e first of these Bills was based on the principle of compulsory association. T h e Royal Order of 16 J a n u a r y 1919 instructed the I n s t i t u t e of Social Reform to prepare a Bill on the compulsory association of employers and workers in accordance with the following principles : (a) T h e obligation for employers and workers in each t r a d e to form their respective associations in each locality ; (b) T h e recognition of t h e legal personality of t r a d e associations ; (c) T h e condition for the formation of these associations t h a t they comprise 75 per cent, of the employers or workers in each branch of industry or trade; (d) T h e obligation in all disputes to have recourse first to conciliation and arbitration proceedings, without which a strike would be illegal. T h i s attempt failed. T h e same applies to the Bills submitted in t h e same year to the Senate and Chamber of Deputies based on the principle of free trade organisation. T h e Maura Bill introduced in 198 FREEDOM OF ASSOCIATION the Senate of 9 July 1919, proposed to combine the formation of free workers' and employers' associations with the institution of chambers of labour on which employers and workers would be compulsorily represented. The Bill submitted to the Senate on 13 November 1919 by Burgos y Mazo, Minister of the Interior, proposed that trade associations, which should be open to all employers and all workers included in a social census and engaged in a trade or profession, should have full legal personality, with the exclusive right to declare strikes and lockouts after the failure of compulsory conciliation and arbitration proceedings. This last Bill was very much amended by the Parliamentary Committee. According to the text prepared by the Chamber, the Government was first of all to define the territorial areas in each province in which employers and workers in any one branch of industry, trade or profession might separately form trade associations to a limited number. These associations would be given sufficient legal capacity to conclude collective agreements, which would be binding not only on members of the association, but under certain conditions, on employers and workers in the same branch of industry, trade or profession, not belonging to an association.' The associations would be allowed to form federations only for the protection of their collective interests, and then on condition that they had their headquarters in the same territorial area, and that they belonged to branches of industry, trades and professions engaged in the manufacture of a given product. The Parliamentary Committee's Bill introduced a new idea which was to serve as the basis for the Decree of 23 November 1922 on the free trade unions of Barcelona : the idea of the territorial delimitation of the associations superposed on that of delimitation by trade and occupation. This preoccupation, which is characteristic of Spanish legislation, may be explained by the particular conditions in which the trade union movement has developed. It tends principally to make it impossible to create associations on a wide territorial basis such as the " unified trade unions " belonging to the General Confederation of Labour, and, on the contrary, to favour the creation of " free trade unions " which, being organised by undertakings, satisfy this requirement. In this historical survey, it has been sufficient to draw attention to this fundamental feature of the Royal Decree of 23 November 1922 on the free trade unions of Barcelona. In the following chapter, the I99 SPAIN other provisions of this Decree will be studied in detail, for, together with t h e A c t of 1887, as amended by t h e Decree of 10 March 1923, it forms t h e basis on which the new corporate organisation of industry has been established. T H E R I G H T OF COMBINATION AND S T R I K E I n spite of t h e proclamation of t h e freedom of association by Article 13 of t h e Constitution a n d t h e regulation of t h e right of association by the Act of 30 J u n e 1887, t h e Penal Code continued t o punish t h e old offence of combination. Section 556 of the Penal Code defined as an offence " any combination intended to bring pressure to bear on t h e price of goods or labour ". A s long as this regulation was in force it might well be asked whether trade unions, being in fact p e r m a n e n t a n d organised combinations whose very purpose was t o influence conditions of work, were entitled t o legal existence. B u t i n point of fact, owing t o t h e increasing s t r e n g t h of w o r k e r s ' and employers' organisations, and t h e accompanying rise in t h e n u m b e r of strikes and lockouts, section 556 of t h e Penal Code was hardly ever applied in practice. T h e result was t h a t the A c t of 27 April 1909 1, which repealed section 556, merely b r o u g h t t h e law into relation w i t h actual facts. I n section 1, this A c t recognised t h e right of combination, strike, a n d lockout in t h e following terms : Both employers and workers shall be entitled to form trade combinations, to strike or to declare a lockout for the furtherance of their respective interests, without affecting the rights arising out cf contracts previously concluded. Every individual person therefore possesses t h e full right t o strike, as both t h e elements of this right — t h e r i g h t of agreement and t h e right to stop work without incurring a penalty u n d e r criminal law — are simultaneously recognised. T h e same right is granted to trade associations. According t o section 9 " legally constituted associations ma}' form trade combinations or decide on or continue strikes or lockouts in conformity with the provisions of this Act ". According to this section, only legally constituted associations 1 Cf. Bulletin p . 276. oj the International Basle, 1909. Labour Ojfice (Basle), Vol. IV. 200 FREEDOM OF ASSOCIATION m a y make use of the right to strike. T h i s provision therefore tends to prohibit existing trade unions which failed to place themselves under the 1887 Act, such as the General Confederation of Labour, and for a long time also the General Federation of Spanish W o r k e r s , from organising strikes or lockouts. But a n y penalties imposed could apply only to the organisations as such, and not to t h e strikers taken individually, whose right to strike was guaranteed b y section 1. T h e r i g h t to strike for individuals a n d associations was t h u s established in principle by the A c t of 27 April 1909. A t the same time, t h e A c t introduced various restrictions of this principle, relating in particular to the protection of individual freedom a n d the protection of the r i g h t t o work. T h e Act guaranteed that any individual belonging to a trade association would have the r i g h t not t o take p a r t in a combination organised by the association and freely to withdraw from the association. Section 9 runs : c It shall not be lawful for such associations to force their members to join the trade combination, strike or lockout by methods which would obstruct them in the free exercise of their rights. Members who do not acquiesce in decisions respecting a trade combination, strike or lockout, shall be free to retire from the association without incurring by their action any liability towards the association. This provision shall not affect any civil obligations previously contracted by the members in question towards the association. Section 2 organises the protection of the right to work, for which purpose it provides the penalties of imprisonment and fine from 5 to 125 pesetas for— any person who in order to promote or prevent trade combinations of employers or workers or strikes on the part of the workers or lockouts on the part of employers has recourse to violent acts or threats or who uses compulsion sufficient to check or to take away the desire of employers or workers to carry on their trade or work in a free and lawful manner. Section 3 prohibits peaceful picketing, and imposes the penalty of imprisonment for— any person who disturbs the public peace or who organises a riotous assembly with the obvious intention of forcing any person to strike or to declare a lockout or to cease striking or to discontinue a lockout. I n addition to these restrictions which apply to all labour disputes, t h e Act provides for others based on t h e Heed of p r e v e n t i n g 20I SPAIN interference with the working of public services or public utilities.' Sections 5 and 6 fix a definite period between t h e declaration of a strike and its taking effect, so t h a t the necessary measures m a y be adopted : In the following cases the authorities shall be notified of any intended strike or lockout at least eight days beforehand : (1) if they may lead to the stoppage of the light or water supply or the suspension of the railway service ; (2) if in consequence of the strike or lockout sick persons or hospital inmates are likely to be left without assistance (section 5). The authorities shall be notified of any intended strike or lockout five days beforehand if it may lead to the suspension of the tramway service, or if in consequence of such strike or lockout the inhabitants of a locality are likely to be deprived of some article of general use. In such case, and in the case contemplated in the previous section, the.causes of the strike or lockout shall be set forth in the notification sent in to the authorities (section 6). Leaders and promoters of strikes or lockouts specified in sections 5 and 6 who fail to give notice of the same to the authorities within the prescribed period shall be liable to imprisonment (section 7). T h e legislation on the settlement of disputes, as will be shown below, also fixes a definite period of notice for strikes so as to allow time for conciliation and arbitration proceedings. O R G A N I S A T I O N O F C O N C I L I A T I O N AND A R B I T R A T I O N I n Spain the problem of settling collective disputes has been given serious consideration and has to some extent determined the direction taken by trade union legislation. T h e attention given to this subject has taken practical form in a series of Acts and Decrees which are still in force, although their substance has been modified in t h e Decree on the organisation of industry on a corporate b a s i s ; t h e principal provisions are as follows. T h e Act of 19 May 1908 on conciliation and arbitration councils ' was a first a t t e m p t at introducing conciliation for.disputes. According to section 1 : When a strike is threatened or at least twenty-four hours before it commences, the workers shall inform the president of the local Committee for Social Reform of their intention by means of a duplicated notice written^ on ordinary paper and briefly setting forth the causes of the strike and the name and residence of the emplo3'er or employers concerned. 1 Cf. Bulletin p . 14S. of the International Basle, 1909. Labour Office (Basle), Vol. IV, 202 FREEDOM OF ASSOCIATION When one or more employers determine to lock out the workers in their businesses or undertakings or in a considerable part of the same they shall inform the president of the local Committee for Social Reform a week beforehand by means of a duplicated notice written on ordinary paper and briefly setting forth the causes of the lockout and giving the name of the place where their undertakings, factories, mines, or workshops are situated and the number of workers who in consequence of the lockout will be thrown out of employment (section 2). On receiving this notice t h e president of t h e local Committee of Social Reform must immediately set u p a conciliation board consisting of a president a n d six members, of whom t h r e e are chosen from t h e list of persons elected b y t h e workers, a n d three from the list provided b y employers, in accordance with section 12 of t h e A c t on industrial courts \ If conciliation seemed impossible, t h e board was to propose that t h e parties concerned should appoint one or more arbitrators. T h e 1909 A c t did not go so far as t o make arbitration compulsory. Moreover, a n d this was perhaps t h e chief reason for t h e weakness of the system, employers and workers took part in t h e conciliation and arbitration proceedings only in a personal capacity a n d not as representatives of their respective associations. T o remedy these defects a n d associate t h e unions directly in the settlement of collective disputes t h e system was completed i n t w o directions, first by giving the trade unions legal personality, a n d secondly by extending the system of joint committees. RECOGNITION OF ¡THE LEGAL PERSONALITY OF T R A D E ASSOCIATIONS I t was t h e Royal Decrees of 10 A u g u s t 1916' a n d 25 August 1923 " that gave the trade unions legal personality a n d made it compulsory for employers to recognise t h e m . T h e Royal Decree of 1916 required companies or industrial u n d e r t a k i n g s which perform public services under a concession from t h e State to recognise t h e associations or trade unions legally formed 1 This Act was also promulgated on 19 May 1908 ; it was amended by the Act of 22 July 1922 and codified in 1926. As the scope of the Act exceeds that of the question of arbitration and conciliation it will be sufficient to make a direct reference to the sources. Cf. Código del Trabajo : " De los Tribunales industriales ", pp. 111-133. 2 Cf. Bulletin of the International Labour Office (Basle), Vol. X I I , p. 67. Basle, 1917. 3 Cf Sp. 5. INTERNATIONAL LABOUR OFFICE : Legislative Series, 1923, SPAIN 203 by their employees and workers. This obligation was further defined and extended by the Royal Decree of 1923 to : (a) industrial companies or undertakings engaged in working the following public services in virtue of a concession from the Government : railways, tramways, telephones, wireless telegraphy, and water, light and power supply ; (6) industrial companies or undertakings and employers' associations which supply the public with any necessary article of general consumption ; (c) mining companies or undertakings and banking businesses ; (d) any other industrial companies or undertakings and employers' associations whose members normally employ more than 300 workers ; (e) associations, unions and federations of wage-earning and salaried employees of the bodies mentioned under (a) to (d) ; (/) any other associations, unions, or federations of workers belonging to the same trade which have more than 300 workers. According to this Decree, the recognition of the legal personality of the trade unions implies for the undertakings an obligation to discuss with the legal representatives of the unions any collective demands or claims relating to the conditions of work of their members in such undertakings. Without carrying the analysis of these Decrees further, it may merely be mentioned that, thanks to these measures, the representatives of the workers' unions thenceforward had the right to approach their employers in any matters relating to the regulation of conditions of work. Similarly, the recognition of the trade union is the underlying principle of the institution of the joint committees, the permanent or temporary bodies for preventing and settling labour disputes. T H E INSTITUTION OF OFFICIAL JOINT COMMITTEES The organisation of joint committees entailed the following legislative action : the Royal Decree of 24 April 1920 setting up the first Mixed Labour Commission in the province of Barcelona ; the Royal Decree of 5 October 1922 concerning the establishment of 204 FREEDOM OF ASSOCIATION p e r m a n e n t and temporary joint committees; t h e Royal Decree of 25 A u g u s t 1923 relating to strikes of public interest \ T h e first of these Decrees aimed at t h e amicable settlement of differences between commercial employers'and workers in Barcelona, and for this purpose set up a joint committee for each of the following branches : b a n k i n g , transport, wholesale trade, and retail t r a d e , as well as a Mixed Commission consisting of authorised representatives of each of t h e four joint committees a n d presided over b y a magistrate of the court of Barcelona. T h e joint committees' function was conciliatory. T h e y h a d to submit all their decisions relating to wages, hours of work, and working regulations to the Mixed Commission for approval. T h e Mixed Commission had to settle all questions submitted to it by the joint committees. I t was further competent to fix the minimum wages payable in each commercial category, to secure t h e observance of the laws for t h e protection of workers, to m a k e proposals to the G o v e r n m e n t for legislative reforms, and to organise technical and administrative offices. I t s principal task was to unify and harmonise the action of t h e four joint committees, and to endeavour to secure an amicable settlement of any disputes which m i g h t arise. T h e Decree of 24 April 1920 applied only to Barcelona and dealt exclusively with commercial undertakings. T h e Royal Decree of 5 October 1922 2 provided for the constitution of joint committees for t h e settlement of disputes between capital and labour in particular industries or branches of production ; such a committee m i g h t be set u p either o n official initiative or at the request of the parties concerned, and m i g h t be either p e r m a n e n t or temporary, according to the circumstances. P e r m a n e n t committees could only be established by a Royal Order. F o r determining the characteristics of each joint committee account was to be taken of the principal classes of employment, namely, agriculture, commerce, industry, mining, and transport. W i t h i n each class of employment the system of joint committees was to be formed on the basis of industries and groups of occupations or 1 Cf. Count de ALTEA : " National Corporative Organisation in Spanish Industry. " Industrial Labour Review, Vol. XV, pp. 828-S41 : cf. also Boletín del Instituto de Riformas Sociales, Nos. CCXXI and C C X X n , pp. 844-847, and No. CCXXXI, pp. 598-616. 2 Legislative Series, 1922, Sp. 2. SPAIN 2 5° trades. Committees m i g h t be local or regional, or m i g h t be formed by an u n d e r t a k i n g employing more than 500 workers or employees, according to the organisation and requirements of each occupation. Each joint committee consisted of equal n u m b e r s of employers and workers, the n u m b e r varying according to the importance of the elements represented. T h e chairman, who might n o t belong to the industry or occupation in question, was appointed b y the u n a n i m o u s votes of the workers' and employers' representatives. I n default of unanimity, he was appointed by the Ministry of Labour. T h e chairman h a d a casting vote only if this was previously agreed to unanimously by the members of the committee. Otherwise, he could intervene merely as a conciliator and to encourage agreement between the parties. T r a d e associations were called on to take a direct part in electing the members of the joint committees. The elections for permanent joint committees shall conform to the following rules : (a) Lawfully constituted trade associations of workers and employers shall be entitled to elect members within the limits of the representation allocated to them. (b) Associations of employers shall mean trade associations consisting exclusively of employers of a particular employment group or groups in the district for which the joint committee is appointed. (c) Associations of workers shall mean trade associations consisting exclusively of workers in the occupation or occupations or employment groups in the district for which the joint committee is appointed. (d) Any members of associations, whether men or women, may be elected members of the committees, councils, meetings, or associations. (e) The members of the associations concerned shall be entitled to vote at such elections, and the register of members of each association shall serve as the register of electors. Votes shall be cast at the general meeting of the association held in accordance with the rules and regulations in the presence of a representative of the authorities (section 14). T h e Royal Decree of 25 A u g u s t 1923 \ which, as explained above, required employers to recognise the legal personality of lawfully constituted trade unions, also provided for the creation of temporary joint committees in the case of claims and disputes between employers and workers in undertakings carrying on public services under an administrative concession. 1 Ibid., 1923, Sp. 5. 206 FREEDOM OF ASSOCIATION Among the provisions of this Act reference may be made to those contained in sections 27 to 30, which establish certain restrictions as to strikes and lockouts in these undertakings. Notices of lockouts and strikes within the time limit laid down by the Act of 19 May 190S ' might in no case cause the suspension of the conciliation proceedings. Every possible effort was to be made to prevent the lockout or strike taking place before the termination of these proceedings. Even after the negotiations had broken down and a lockout or strike had been declared, the competent authority must convene the special joint committee once a fortnight with a view to arriving at a settlement of the dispute, and must communicate the result of these negotiations to the Ministry (sections 27 and 28). The Minister of Labour might at any time refer to the Institute of Social Reform the questions at issue in a strike or lockout in order that the Government might take any steps deemed necessary. It was required to follow all circumstances likely to give rise to incidents during the course of strikes or lockouts, and to call upon other authorities to co-operate if necessary, without prejudice to the special powers of these authorities (sections 29 and 30).. These were the various measures taken on the initiative of the Government with a view to introducing legal proceedings for the settlement of industrial disputes and organising on a stable foundation the collective relations between employers and trade unions. In yet another direction the Government completed the system set up by the Act of 1887, by organising collaboration between the trade unions and public authorities. COLLABORATION OF T R A D E ASSOCIATIONS W I T H THE PUBLIC AUTHORITIES* As early as 1902, Canalejas, chief of the Liberal Party, acted as champion of the cause of State intervention in social questions. For this purpose he proposed the creation of a Labour Institute, in whose work trade associations would take a direct part. His Bill, which had been approved by the Cortes was held up by the Senate, but the idea was partially realised in the Royal Decree of 23 April 1903 creating the Institute of Social Reform, which has played a part of first rate importance in preparing social legislation and developing trade union law. Its function was to prepare labour legislation, 1 See p . 201. SPAIN 207 organise the inspectorate and statistical services, and support social and Government action for improving the conditions of workers. The Institute consisted of a corporative council and a secretariat with several technical sections. The council had thirty members, eighteen being designated by the Government and six each elected by employers and workers. It contributed towards the development of trade union organisation in three ways in particular : (a) By the representation of employers' and workers' associations on the council. The application of this principle aroused a live spirit of emulation among the trade associations, which desired the triumph of their candidates in the elections for representation either in the Institute itself, or on the local and provincial Committees of Social Reform, which had the right to intervene in the administration of labour legislation and factory inspection. (b) By the extension of the principle of collaboration with trade associations to labour legislation in general. Thanks to the action of the Institute, many Bills due to the direct collaboration of workers and employers were prepared and adopted by the Chambers : the Act on Sunday rest of 3 March 1904, which made use of agreements between thetrade associations as a means of adapting the provisions of the Act to different circumstances; the Child Protection Acts of 10 August 1904 ; the Home Colonisation Act of 30 August 1907 ; the Emigration Act of 21 December 1907 ; the Conciliation and Arbitration Act of 19 May 1908 ; the Industrial Courts Act of 19 May 1908; the Act on strikes and combinations of 27 April 1909, etc. (c) By the interest always displayed by the Institute in trade associations, its relations with them in educational work, and its intervention in social disputes. After the Institut', of Social Reform was abolished in 1924, its functions were transferred to the Council of Labour set up by Royal Decree of 19 June 1924. The occupational representation of the associations in the new body is provided for on the same principles and within the same limits. The principle of the representation of trade associations has sincebeen applied in the most varied fields of national activity. In the matter of social legislation, a number of committees on- 208 FREEDOM OF ASSOCIATION which employers' and workers' organisations are represented have been created ; reference may be made in particular to the General Commission set up by the Royal Order of 22 February 1924 to co-ordinate the various labour laws. This Commission drafted the first part of the Labour Code, which was promulgated on 23 August 1926 in the form of a Legislative Decree and deals with contracts of work, contracts of apprenticeship, industrial accidents, and industrial courts. Among the committees and commissions on which workers and employers are represented, there are also the labour committees and administrative commissions in ports (Royal Decree of 11 October 1923) ; the Commission for the study of agricultural credit (Royal Decree, 29 October 1923) ; the Administrative Council of the Mines of Almadan and Arrayanes, which includes a worker elected by the trade unions (Royal Decree, 26 December 1923); the Commission appointed to organise technical education (Royal Decree, 15 March 1924); the Commission on emigrants' risk of shipwreck (Royal Decree, 2 November 1924) ; the Commission appointed to draft a Rural Code (Royal Decree, 12 May 1924) ; the Central Emigration Committee (Royal Decree, 16 September 1924), whose rules were codified by the Emigration Act and the regulations for its administration (Royal Decree, 20 December 1924) ; the Committee of protection and improvement for the vocational re-education of persons disabled in industry (Royal Decree, 23 October 1924) ; the Advisory Committee of the General Directorate of Shipping (Regulations of 28 October 1924) ; the Committee for studying and preparing regulations on the status of co-operative societies (Royal Decree, 14 January 1925) ; the Fuel Commission (Royal Decree, 16 January 1925), and the National Fuel Council (Royal Decree, 6 January 1926) ; the Supervisory Committee for general State accounts (Regulations organising the Supreme Public Finance Tribunal, 3 March 1925); the Superior Railway Council (Royal Decree, 19 December 1925) ; the Royal Decree of 12 January 1926 on public relief societies; the Regulations on home work of 26 July 1926, etc. In the political field there are the Municipal Constitution of 8 February 1924 and the Regulations on the work of municipalities of 9 July 1924, as well as the Provincial Constitution of. 20 March 1925, all of which provide for the representation of trade associations in the councils responsible for municipal and provincial representation. It may be added that under section 71 of the Municipal Constitution, SPAIN 209 such representation is compulsory, and a refusal to exercise it may entail for the association the withdrawal of fiscal exemptions, privileges and franchises and the loss of its rights of trade representation. The question has also been raised of reserving half the seats in the future legislative chamber for representatives of the corporations. All these measures taken by the Government since 1S87, either for the settlement of collective disputes or for ensuring that trade associations may collaborate continuously and effectively with the bodies responsible for preparing social legislation, have been incorporated in, and completed by the Decree on the organisation of industry on a corporate basis. Freedom of Association CHAPTER II THE LEGAL STATUS OF TRADE ASSOCIATIONS Section 12 of the Decree on corporative organisation in Spanish industry states that the members of the local joint committees shall be elected " by employers' and workers' trade associations which are legally constituted, and will be placed on a social register prepared by the Minister of Labour, Commerce and Industry ". Thus the whole corporative organisation rests ultimately on free but legally constituted trade associations. It is, therefore, of the first interest to examine in detail the conditions that trade associations must satisfy under the law. In the historical survey it has been shown that the right of associations to legal existence is derived from three sources : (i) Article 13 of the Constitution ; (2) the Act of 30 June 1887, supplemented by the Legislative Decree of 10 March 1923 on associations ; (3) the Decree of 3 November 1922 on the free trade unions of Barcelona. The first two of these apply to the whole of Spain, whereas the scope of the Decree of 3 November 1922 is limited to the province of Barcelona. § 1. — Constitutional Principle It will be remembered that Article 13 of the Constitution recognises " the right of all Spanish citizens to meet and associate with others for all purposes of human life ". Can this constitutional guarantee — a guarantee essentially intended to protect the rights of citizens against the encroachments of authority — which is thus formulated without any kind of limitation, be considered sufficient foundation for the legal existence of associations? If the reply to this question were in the affirmative, it would follow that all associations by the simple fact of their constitution would have a right to legal existence, and would therefore be entitled to the privilege of participating in the corporative organisation of industry. 211 SPAIN But this is not the doctrine on which the Spanish legal system rests. Section i of the Act of 30 J u n e 1887 o n associations affirms t h a t " the right of association granted by Article 13 of the Constitution may be exercised freely, in conformity with the provisions laid down by this Act". T h u s the constitutional principle, far from being absolute in scope, holds only under the conditions laid down in t h e Act on . associations. I t will therefore be necessary to study the Act of 30 J u n e 1887, completed by the provisions of the Legislative Decree of 10 March 1923, in order to learn the conditions of legal existence of associations. § 2. — Conditions of Existence (Act of 30 June 1887 a n d Legislative Decree of 10 March 1923 on associations) T h e conditions relating to the constitution, dissolution of associations will be examined in t u r n . working and CONSTITUTION Fundamental Conditions Subsections (2) and (3) of section 1 of the Act of 30 J u n e 1S87 enumerate the associations to which t h e Act applies : The provisions of this Act shall apply to associations formed for religious, political, scientific, artistic, charitable, recreative, or any other lawful objects, provided that they are not formed solely for purposes of gain or profit. This Act shall also apply to trade associations, mutual benefit and provident societies, charitable foundations, and co-operative societies for production, credit or distribution. I t thus appears that the Spanish legislature has dealt in one and the same Act with the general right of association and the right of association for trade purposes. I t follows from section 1 that, in addition to civil and commercial associations, the only associations excluded from the Act are those which by their objects or the circumstances surrounding their activities are contrary to public order or which propose to commit offences punishable under t h e law, t h a t is to say, associations covered by t h e Penal Code of 1870 \ 1 See p. 184. 212 FREEDOM OF ASSOCIATION As regards State officials and employees, who are not mentioned in the Act, the following distinction should be made. Persons holding responsible State positions, such as the chiefs and officers of the army, have no right of petition under the Constitution, which, in this respect, implies the absence of the right of association. On the other hand, it may be recalled that associations of members of the army have exercised considerable influence in political affairs, particularly since the war. But the Royal Decree on Civil Dictatorship which, on 5 September 1926, dissolved the Artille^ Corps — as in other difficult situations the Postal Union has been dissolved — appears to confirm the tendency of legislation to prohibit the right of association for this class of officials. Other officials have the right of association under the Act of 22 July 1918 and the Administrative Regulations of 7 September 1918, subject to the previous and explicit authorisation of the public authorities. According to the Administrative Regulations : No association of officials belonging to one or more Ministries may be formed without express ministerial approval, even if its object is to defend legitimate interests or promote the mutual assistance of members, and even if it does not constitute an obstacle to the satisfactory working of State services. The founders of such an association must accordingly attach . to the documents required in the Act of 1S87, and supplied in accordance with the procedure imposed by that Act, a petition to the Ministry of the Interior accompanied by the report of their chiefs on the advisability of granting or refusing the petition. The Minister of the Interior himself decides if the officials are in his own Ministry. In other cases the decision lies with the Minister under whose orders the officials making the petition are placed, or with the President of Council himself if the association comprises employees in different Ministries. The decision must be taken within one month of the date of the petition. The Minister of the Interior informs the Government authorities of the express approval or refusal of the Ministry. The fact of belonging to an association or other body collectively representing public officials which is contrary to a negative ministerial decision constitutes an act of grave disobedience. SPAIN Formal 2I3 Conditions T h e formal conditions prescribed b y the Act must be satisfied, some before, and others after, the constitution of the association. Formal Conditions previous to Constitution T h e founders or organisers of an association are bound, a week before constituting t h e association, to submit to the Governor of t h e province where the headquarters of the association will be situated, or, if in t h e province of Madrid, to the General Directorate of Safety *, two copies of t h e rules, regulations, contracts or decisions b y which the association is to be governed, stating its name, objects, headquarters, form of administration or m a n a g e m e n t , t h e funds with which it proposes to cover its expenses and the use to be made of its funds or capital in the event of dissolution. Similar formalities must be fulfilled for the foundation of branches, and for any change in the constitution or headquarters of t h e principal association or its branches. One of t h e copies sent in is returned on presentation w i t h t h e visa of the Governor and t h e stamp of the provincial Government and a mention of the date. If the provincial Government refuses to accept the documents the persons concerned m a y have the refusal recorded before a notary, attaching the documents, and this record serves the same purpose as the presentation and acceptance of the documents (section 4 ) . . Formal Conditions after Constitution Art the end of eight days t h e association or union may constitute itself or amend its constitution. A certified copy of the foundation deed or the a m e n d m e n t m u s t be communicated to the provincial Governor. If, however, the documents submitted to the civil Governor b y the association or union d o not satisfy the necessary conditions r they are returned b y him within a week, and the association may not be constituted until t h e m a t t e r has been put right. 1 Since the Royal Decree of 27 Nov. 1912 creating a General Directorate of Safety in the Ministry of the Interior, the local services of this Department in the province of Madrid, which, as in other provinces, were subordinate to the civil Governor, have been placed under this Directorate, which thus takes cognisance of all questions relating to assemblies and associations. 214 FREEDOM OF ASSOCIATION If it appears from the documents submitted that the association or union must be considered unlawful under the provisions of the Penal Code, the Governor immediately transmits a copy to the competent court and notifies those concerned within a week. If the suspension ordered by the Governor is not confirmed by the judicial authorities within the following twenty days, the association or union may be constituted normally (section 6). The foundation deed of a trade association must be confirmed by recording it in a special register kept by each provincial Government, in which all associations with their headquarters in the province are recorded. For this purpose the Decree of io March 1923 provides for the institution of a special file by every provincial Government with a system of enumeration corresponding to the special register of associations. On presentation, the foundation deeds are incorporated in this file together with the rules, regulations, contracts and resolutions governing each association, and all other subsequent proceedings, enforcements of orders and decisions to which the activities of the association may give rise (section 1). The legal existence of all associations is attested by means of certificates, issued on the basis of the register, which the directors, trustees or representatives of the association are entitled to demand. In order that each association may retain its separate individuality, section 8 of the Act provides that no association may take a name identical with that of another association already registered in the province or so similar that the two associations might easily be confused. The association, thus lawfully constituted, must similarly comply with the regulations laid down by the Act with respect to its internal organisation and its activities in general. ACTIVITIES OF T R A D E ASSOCIATIONS The provisions of the Act of 1887 on the activities of trade associations have been supplemented in great detail by those of the Decree of 10 March 1923, which may indeed be said to constitute regulations for the administration of the basic Act. These two laws establish supervision by the administrative authorities over all the activities of trade associations : their meetings, headquarters and premises, leaders and members, accounts, and organisation of their work. SPAIN Supervision 2I5 of Ordinary Meetings, General Premises, and Headquarters Assemblies, Section 9 of the Act requires twenty-four h o u r s ' notice to b e given before the holding of general meetings. T h e founders, directors, presidents, or representatives of any association m u s t give notice in writing to the civil Governor in the provincial capitals, a n d t h e local authorities in other towns, of the place and dates on which t h e association holds its ordinary meetings or general assemblies, within twenty-four h o u r s of the holding of the first. General assemblies are subject to the provisions of the Act concerning public meetings *, if they are held elsewhere t h a n o n t h e premises of the association, or on days other t h a n those specified in the rules or resolutions communicated to t h e authority, or if they deal with matters not relating to the purposes of the association, or if persons not belonging to the association are permitted to be present. T h e Government authorities m a y at any time enter the headquarters of an association and the places where its meetings are held, and order the immediate suspension of any m e e t i n g or assembly at which a n y of the crimes specified in the Penal Code is committed or a resolution adopted to that end (section 12). Supervision of Members and Leaders I n section 10, t h e 1887 Act made it compulsory to keep a list of m e m b e r s and one or more account books. T h e s e provisions were strengthened b y the Decree of 10 March 1923, and it may therefore be useful to quote the text of the provisions in question of t h e Decree, as t h e y show how minutely the formalities are defined : At the same time that the certified copy of the foundation deed of association is sent to the Governor, the books for the registers of members and for accounts, which are mentioned in section 10 of the Act and in subsequent provisions of this Royal Decree, shall be submitted to the said authority, which shall approve them and stamp all their leaves (which shall be consecutively numbered) with the seal of the civil Government. "When the first books are nearing completion, the association shall in due time submit new ones for similar approval ; and when the former are completed, they shall be closed by the signature of the president of the association immediately after the last entry, and until this has been done the new books shall not be available for use. The proceedings for the approval of the books by the civil Governor shall be completed within two working days in order that the books may he returned to the association on the third day from their submission, and 1 Acts of 2 Jan. 1877 afl d 15 June 18S0 ; cf. p. 184. 2l6 FREEDOM OF ASSOCIATION the entry of the proceedings in question shall be made in the file relating to the association, with a note of the date of their completion and of the number of pages in each of the approved books (section 2). The full names, occupations and addresses of the individual members of the association shall be entered consecutively in the register of members, together with the dates of their entering and leaving the association and the duties of management, administration, or representation entrusted to them, and also the dates on which they enter upon and retire from these duties. In addition to making the above entries in the register, the association shall notify the provincial Governor in writing of every appointment, entering on duties or retirement therefrom, within five days of its occurrence, and shall notify the local authority at the same time if the headquarters of the association are situated in a town which is not a provincial capital. The appointment of the collectors of contributions of the association and that of the caretakers, porters or stewards responsible for the caretaking and watching of offices, their entry upon and retirement from their duties, and their replacement shall be covered by the provisions of the preceding paragraphs (section 3). Finally, every Governors of their members who have the first day of t h e month the association must send to the civil respective provinces a list of the names of joined or left the association as recorded u p to month. Supervision of Accounts and Activities T h e 1887 Act provides, as already indicated, for the keeping of one or more account books in which, under the control of persons exercising m a n a g i n g or directive functions, all the receipts and expenditure of the association must be entered, showing clearly t h e sources of t h e receipts and the various items of e x p e n d i t u r e . A general balance sheet must be communicated annually to the provincial register (section 10, subsection 2 ) . F u r t h e r , in order t h a t both the public authorities and the members of t h e association m a y at any time become acquainted with the m a n a g e m e n t and u s e made of t h e reserve fund and the nature of t h e e x p e n d i t u r e , section 11 provides t h a t : The associations which collect or distribute moneys for the relief or assistance of members or for charitable, educational or other similar purposes, shall draw u p every six months an account of their receipts and expenditure, shall present a statement thereof to the members, and shall forward one copy thereof to the provincial Governor within five days of its being drawn up. But with the growth of the revolutionary trade union m o v e m e n t — which, being firmly consolidated and having substantial funds at its disposal o w i n g t o the size of its membership — t h e formalities for 217 SPAIN collecting contributions and using funds, and for financial supervision were made much more strict. T h e authorities even went so far as to treat the collection of contributions as equivalent to fraud \ T h i s measure was considered as an interpretation of the law, and a t the same time as a n act of Government authority, but it was not destined to have lasting effect. T h e Royal Decree of 3 N o v e m b e r 1922 for trade associations in Barcelona, followed by t h e Royal Decree of 10 March 1923 for the whole of Spain, added so m u c h to the formalities concerning accounts, the collection and use m a d e of funds, that all the financial activities of trade associations became subject t o severe and constant supervision by the authorities. T h e provisions of the Royal Decree of 10 March 1923 r u n a s follows : In one of the account books, which must be kept by every association covered by the Act, entries of the receipts and expenditure of the association shall be made in order of date under the control of the members exercising managing or directive functions, in accordance with the following rules : (1) Each entry of receipts or expenditure shall cover a single item. (2) The entries of receipts shall show clearly the source of the receipts and, in the case of contributions, whether they are ordinary or special, and the clause in the rules or the decisions of the general meeting of the association fixing the amount of the said contributions. If the receipts are derived from gifts, bequests or grants, an entry shall be made for each, stating the purpose for which it is intended, and giving a reference to the document making the grant or the record of acceptance by the general meeting or its authorised representatives ; (3) The entries of expenditure shall show clearly the items thereof, and shall include references to the rules, the decisions of t h e general meeting, or in default thereof, the decisions of the officials or executive bodies expressly or specially authorising the items in virtue of their powers with the vouchers for the same. The entries of expenditure for staff shall show the names of the employees. In the case of various payments for relief or compensation to members or their families which are made on the same day, each entry shall include only the payments which are made for the same reason and are equal in amount ; and in such case the number of persons granted relief or compensation shall be entered with a reference to the vouchers for the same, as in all other cases (section 4). T h e fixing a n d collecting of contributions are similarly subject of the strict regulations specified in sections 5 and 6. 1 See p. 192, Circular 6 Aug. 1920. of the attorney of the Supreme the Court, 2l8 FREEDOM OF ASSOCIATION The founders, directors, presidents, or representatives of the associations already constituted shall be bound to submit to the competent provincial Governor two signed copies of the resolutions introducing any amendments of the contract, rules or regulations of the association and consequently altering the amount of the ordinary contributions or the period for which they are fixed. They shall likewise be bound to give account to the said authority within a week of the decisions to levy compulsory special contributions, stating the amount and purpose thereof (section 5). A special book approved by the civil Government of the province in the manner prescribed by section 2 of this Royal Decree shall be kept for the accounts of the collectors of contributions of each association. The association shall not entrust a collector with the collection of contributions, nor shall he begin such collection, until ten days have elapsed since the authorities were notified of his appointment in accordance with the provisions of section 3. For the purpose of entrusting the collector with the collection of contributions, his name, the number of contributions which he is required to collect, the persons required to pay them, the period covered by the said contributions, and the total amount thereof shall be entered in the book mentioned in subsection (1), and he shall be provided with credentials in the form of a copy of the entry in the book numbered to correspond with it and attested by the responsible directors and executive officials of the association. Each entry, and consequently each set of credentials shall refer exclusively to a single period for which contributions are collected in the case of ordinary contributions, or to a single levy in the case of special contributions, and in the latter case the date of the general meeting at which the contribution was authorised shall be stated in the entry and in the credentials. The collectors, when engaged in collecting, shall carry their credentials and shall be bound to show them if so required by any public official (section 6). F u r t h e r , in order t h a t the authorities m a y supervise the use made of the funds, section 7 provides t h a t every m o n t h the association must forward to the civil Governor of the respective province a statement of the position as shown by the general record of receipts and expenditure of the association, and the amount of the moneys of the association and t h e names of the bodies or persons with whom such moneys are deposited. Section 9, finally, gives the authorities the power to supervise the financial management of the association on t h e spot. On the decision of the civil Governor of the province the representatives or officials of the authority may make visits of inspection to the offices of t h e association, the legal representatives of which are bound to show their registers, account books, minutes of proceedings, vouchers and other records. T h e authority may similarly adopt any methods of checking which it considers suitable to satisfy itself that the moneys of the association are utilised as shown in the accounts. Failure to comply with the formalities laid down for the constitution and working of associations entails a fine of 50 to 150 pesetas SPAIN 219 without prejudice to civil or criminal liabilities incurred under the law. I n addition to such fine, an association m a y , in the conditions specified by the Act, incur t h e penalty of suspension or dissolution, only the judicial authority being competent to impose such penalty. S U S P E N S I O N AND D I S S O L U T I O N O F T R A D E A S S O C I A T I O N S Suspension Suspension as a provisional measure may apply either to meetings or assemblies or to the operations of. the association itself. A s already slown, section 12, subscetion (1), of t h e 1887 Act provides t h a t the representatives of the Government authorities m a y at any time enter the headquarters of a n association and the places where its meetings are held, and order the immediate suspension of a n y meeting or assembly at which any of t h e crimes specified in the P e n a l Code is committed or a resolution adopted to that end. Subsection (2) of the same section provides for t h e suspension of t h e association itself. The Governor of the province may also order the suspension of the activities of any association, stating clearly his reasons for doing so, if it appears from the resolutions adopted by the association or from the actions of its individual members that there is sufficient ground for considering that its activities must be deemed to be unlawful or that crimes have been committed which would justify its dissolution. T h e suspension is without effect, however, until it has been submitted to and confirmed by the ordinary courts. I n every case the Government authorities must notify t h e competent examining c o u r t of first instance, within twenty-four h o u r s of their decision, of o the facts which have caused the suspension of t h e association or of i t s meetings, giving at the same time a statement of t h e preceding circumstances and the names of the members or persons present w h o appear t o be responsible. T h e suspension of an association by t h e Government authorities is without effect if it is not confirmed by t h e judicial authorities within twenty days of the decision. Similarly, the judicial authorities m a y order the suspension of the activities of any association as soon as it is decided that an action for dissolution shall be instituted in respect of a crime. T h e effect of suspension is to prevent t h e constitution of a n y other association with t h e same name or for similar purposes as t h a t to which the members of the suspended association belonged, a n d 220 \ FREEDOM OF ASSOCIATION the members of t h a t association m a y not meet in the place where its meetings were held or in any other place d u r i n g the period of suspension. Dissolution Neither the 1887 Act nor the Decree of 10 March 1923 mentions the voluntary dissolution of association's. I t follows that associations which dissolve voluntarily are subject to the provisions of the general law contained in section 39 of the Civil Code. Only the judicial authorities are competent to order the dissolution of the associations set u p in conformity with the 1S87 Act. Dissolution may be ordered : (1) in accordance with t h e general law on unlawful associations ; (2) as a penalty for crimes committed in fulfilment of decisions of the association ; (3) as a penalty for crimes committed b y members of the association, provided that the complicity of t h e association itself has been proved. According to section 15, the dissolution of the association shall be pronounced : In any sentence in which the judicial authority declares an association unlawful in conformity with the provisions of the Penal Code and in any sentence issued in respect of crimes committed in fulfilment of decisions of the association. It may also order the dissolution of the association concerned in sentences imposed upon members of the association, for crimes committed by means supplied by the association, and shall take into consideration in every case the nature and circumstances of the crime, the nature of the means employed, and the extent to which the association has intervened in the use of the said means and in the acts committed. T h e compulsory dissolution of a trade association has the followi n g effects : If the dissolution of an association has been ordered by an irrevocable sentence, it shall not be lawful for another association to be formed with the same name or for similar purposes if those purposes have been declared unlawful. If they have not been declared unlawful and if another association with similar name or purposes has been formed, it shall not be lawful for individuals on whom a penalty has been imposed in the above-mentioned sentence to belong to the new association (section 16, subsection (1)). SPAIN 221 As regards the property of associations, section iS of the 1887 Act provides that in the event of dissolution associations are subject to the provisions of the civil law respecting collective property. Section 1666 of the Civil Code lays down that if the dissolution of an unlawful society has been pronounced, its property shall be handed over to charitable institutions at the headquarters of the society or failing this, in the province. The guarantee against dissolution by administrative action contained in the provisions of the 1887 Act for judicial proceedings does not seem to apply in periods when constitutional guarantees are suspended. This would appear to be the result of the Circular of the Attorney of the Supreme Court, dated 10 August 1920, which states that the Government may dissolve certain associations which " for purposes of the application of criminal law are not legally constituted ", and thus treats dissolutions pronounced by Government authority on the same footing as judicial sentences. The historical survey has already shown that on various occasions the Government has had recourse to the suspension of constitutional guarantees, a suspension which has always-been accompanied by the compulsory dissolution of trade associations. Moreover, according to the Act and Regulations of 10,18 concerning public employees, the Government may, on condition of reporting its decision to the Cortes, decree the dissolution of any association of officials. As soon as that is done, the fact that a public employee belongs to the association in question constitutes an act of serious insubordination. § 3. — The Conditions of Existence and Possibilities of Action of Trade Associations in the Province of Barcelona (Royal Decree of 3 November 1922) Reference has already been made in the historical survey to the part played by Catalonia in the social life of Spain. In no province have disputes between employers and wage earners or between wage earners of different tendencies been more acute and impassioned. This special situation called for separate regulations for quelling disturbances. Several measures taken on Government initiative had prepared the ground for these special regulations on trade associations in Barcelona. There was first the Royal Decree of n October 1919 FREEDOM OF ASSOCIATION 222 s e t t i n g u p a l a b o u r Commission in Barcelona, t h e n the institution by the Royal Decree of 24 April 1920 of a Mixed L a b o u r Commission for Barcelona commerce \ and finally the appointment b y the Royal Decree of 15 October 1921 of a delegation of t h e Ministry of L a b o u r in the province of Barcelona to classify and group occupations and t a k e a census of employers and workers each of the occupational groups defined. T h e Government considered in fact t h a t it w a s first of all necessary to classify and group all industries, t r a d e s and occupations w i t h reference to their respective occupational interests, those of employers on t h e one hand, of workers on the other. On the basis of this classification, by which t h e interests at issue could first of all be defined, the Decree of 3 November 1922 was prepared 2 . T h e preamble to t h e Decree describes the new regulations in t h e following terms : The present Decree does not affect the freedom of Spanish citizens to associate or not in accordance with the Constitution and the Act of 30 June 1887. Its sole purpose is to give an impetus to the system of trade organisation and to encourage it by granting it wide powers by which it may be adjusted to present needs, care being taken, however, that no rights shall be affected. The urgency of this measure, which is particularly felt in Barcelona, and the need of taking a census and classifying industries before constituting the new bodies representing employers and workers, make it impossible to extend the application of this Decree to the whole of Spain. It will first come into operation in the province of Barcelona as an indispensable contribution towards the better settlement of the questions raised in that province. The experience gained from this experiment will serve to improve the system and if need be to apply it to other provinces. T h e main object of the G o v e r n m e n t in issuing this Decree was to propose t o trade associations a new type of organisation, while leaving it free to them to make use of it or not. Once a trade union has been constituted in accordance with t h e conditions prescribed in the Decree, however, the Government gives it the widest powers with respect to employers and the State. T h e provisions of t h e new Decree ought therefore to be briefly analysed from the twofold point of view of the existence of trade unions and their m e a n s of action. 1 2 See p. 203. See Legislative Series, 1Q22, Sp. 3. 223 SPAIN CONDITIONS OF E X I S T E N C E Trade Unions Chapter I V of the Royal Decree of 3 November 1922 states that the general provisions of the 1887 Act on association also apply to trade unions in the province of Barcelona. As these were analysed at the beginning of this chapiter ', all t h a t need be done here is to examine the special conditions to be satisfied by trade unions in t h a t province. T h e initiative in constituting a union, and this is one of t h e characteristic features of the Decree, is taken by the Government. I t is the Ministry of Labour which convenes t h e constituent meetings and settles t h e procedure, and it is the delegate of the Ministry of Labour or his representatives who conducts the proceedings and ascertains t h a t the unions satisfy the conditions of the law. . For the purpose of forming a trade union the workers shall be invited in the manner prescribed by the Ministry of Labour, Commerce and Industry to attend the special meetings for the industry in question, at which representatives of the industry shall be appointed, with adequate authority to negotiate in the name of the trade with the employers and with public authorities when necessary concerning the collective interests of the trade group. Meetings shall in all cases be held on Sunday, and the number of those which may be held on each date shall be notified, alphabetical order of trades being observed in convening meetings when several occur simultaneously. The}' shall be announced a fortnight in advance and presided over by the representative of the Ministry of Labour, Commerce and Industry, or a person delegated by him, the president of the divisional or provincial high court, or the magistrate or examining judge delegated by the president, whose sole duty shall be to preside over the discussion and put resolutions to the vote. The chairman shall appoint the secretary, who shall draw up and sign a report on the meeting, confirmed by the chairman, and shall send a duplicate copy to the Ministry of Labour, Commerce and Industry. At the meeting steps shall be taken to appoint persons to form a provisional committee responsible for drafting rules, which shall be discussed and approved at a meeting held within the next fortnight, and of which a duplicate copy shall be sent on adoption to the Ministry of Labour, Commerce and Industry (sections 3 and 4) Similar regulations associations (section 6 ) . apply to the constitution of employers' Before an association can be finally constituted, it must satisfy t w o conditions. In the first place, the membership must reach t h e 1 See pp. 211 et seq. 224 FREEDOM OF ASSOCIATION statutory minimum, and, secondly, it must satisfy the rule as to occupational and territorial delimitation. According to section 7, an association must consist of at least 100 workers or 20 employers, failing which the convening of the association in accordance with the provisions of section 3 is cancelled. A second convening is then made and in case of failure of the workers on this occasion to attend the meeting in sufficient numbers or of the meeting to arrive at an agreement, the result of the meeting is finally held to be negative (section 5). But an association has no legal personality, its resolutions are not valid, and it is not entitled to the privileges specified in the Decree, unless it comprises the majority of the workers or employers in the branch of industry or in the occupation in the district or locality in question (section 7). The reason for this last condition is that the Decree gives the association the power to represent the whole occupation or trade in question (including third parties not belonging to it). Secondly, associations must observe the rule as to occupational and territorial delimitation. This follows from section 8, under which employers or workers in the localities bordering on the districts defined in the Decree of 5 October 1921 may not be members of associations in such districts unless there is not a sufficient number of employers or workers in the locality to form an association. Furthermore, as each association is responsible for representing and defending well-defined interests, and in order to prevent the action of the association from being influenced by elements foreign to the trade or locality, section 27 provides that no employer or worker may belong to more than one association in the same locality at the same time. The regulation as to occupational delimitation applies also, though less strictly, to trade associations of wage-earning and salaried employees of railway, tramway, water, gas and electricity companies, and other undertakings rendering local services of the nature of public utilities. All the workers in any one of these undertakings may form themselves into a single association (section 11). Employers in the maritime transport industry similarly constitute a single regional group for purposes of association (section 12). A statutory minimum membership and the observation of the rule of occupational and territorial delimitation are the two preliminary conditions to be satisfied by associations as such before their SPAIN .225 constitution. The special conditions laid down by the Barcelona Decree for persons who wish ito belong to an association relate to nationality, occupation, age, and marital condition. According to section 24 a trade union consists of individuals joining it voluntarily, who must fulfil the following conditions ; (1) (2) (3) (4) They must be Spanish. It may be recalled that in the 1887 Act Spanish nationality was not a necessary condition for belonging to an association. They must belong to the occupation or branch of industry for which the trade union is formed, and must be included in the register for that occupation or branch. This is only a corollary of the rule of occupational delimitation, to which the unions themselves are subject. They must have attained the age of eighteen years. Nevertheless, a youth under eighteen years of age may join a trade union with the written permission of his parents or guardians or the director of the institution where he was brought up, but he will not have the right to speak or to vote in any meeting of the association. He will pay only half the contributions due from persons over eighteen years of age, though he will be entitled to full benefits. Members of over eighteen years of age but less than twenty-one years are entitled to speak at meetings but not to vote. Those who are over eighteen years of age and are married or widowed, and men of over twenty-one years of age are entitled to exercise all the rights and are liable to all the obligations connected with the association. Women of under eighteen years of age may not be members of other associations than trade unions for women and have no right to speak or to vote. Those above that age may join the proper association on the same terms as men, and the authority of the parent, husband, or guardian is not required. According to section 26, the persons belonging to employers' associations must: (1) belong to the branch of industry or occupation in virtue of their enrolment in the appropriate register ; (2) have acquired the legal qualifications for engaging in commerce — a woman over age or married who fulfils the conditions required of an employer and has the requisite legal qualifications may join the Vrcerlom of Association 15 226 FREEDOM OF ASSOCIATION association for her class without being required to procure the authorisation of her legal representative ; (3) the guardians or legal representatives of minors or incapable persons engaged in commerce or industry may be members of associations on behalf of such persons. In addition to individuals, bodies corporate, i.e. civil or commercial associations acting as employers, may belong to an employers' association, being represented by the chairman or a member of the board of directors or governing body (section 28). The working of associations in Barcelona is also subject to certain special regulations, from which the rules of the association may not deviate. These relate to the right of members to join or withdraw, the supervision of contributions, the headquarters of the association, and, in general, Government supervision of its administration and management. Subject to the fundamental conditions enumerated above, it is sufficient that the applicant should desire to join for him to be admitted to the association, and such admission may not be refused or deferred by the executive committee. A complaint concerning refusal or delay may be lodged with the local office of the Ministry of Labour, Commerce and Industry, or, failing that, the civil Governor. The decision taken thereon is enforceable without further appeal (section 25). It follows that there is not merely the simple freedom to join but, in fact, a right of admission to the union. It will be remembered that in most other countries the conditions of admission are fixed by the rules of the association, which may introduce any such conditions or limitations (nationality, occupation, political views, etc.) as they please; in addition, the authority of the association responsible for deciding on applications for admission has the right to reject them without giving any reasons. In the system established by the Legislative Decree on associations in Barcelona, on the contrary, the right to join an association is considered a public one which cannot be affected by particular agreements, such as the rules of an association. There are two reasons for this special protection of the right of admission : (1) the need of including the majority of the persons in the trade, an indispensable condition for acquiring the privilege granted under the Act on associations; (2) the need of preventing SPAIN 227 exclusions for political reasons, which were to be feared particularly in t h e province of Barcelona. Membership may be lost either for legal reasons, or at the wish of the persons concerned, or for reasons defined in the rules. A m o n g the first, the indispensable condition for belonging to an association, t h a t of carrying on a trade or occupation, is also necessary foi continuing as a member. T h u s , former members of the occupation or trade may not, as in F r a n c e , for instance, remain members of t h e association after having given u p their employment. T h e Decree further declares that the loss of civil rights also entails loss of membership. For analogous reasons it is to be supposed that the loss of nationality will involve the loss of membership. T h e right to withdraw from the association is merely a consequence of the principle of the right to join. Section 30 of the Decree protects this right by an express provision : Every clause or stipulation denying or restricting the right of members to cease to belong to an association shall be void, without prejudice to the right of the association to claim any sums due from members. ' W i t h i n these limits, t h e contract of association retains all its legal authority, and the Decree recognises the validity of clauses providing for the penalty of exclusion for breach of the rules. T h e Decree fixes a m a x i m u m for t h e entrance fee and in general reserves a right to supervise t h e rate of contributions. According to section 3 1 , the entrance fee for a t r a d e union may not exceed three days' wages or pay at the current rate for the locality. T h e contributions may be collected m o n t h l y , weekly, or on a special occasion for a specified purpose. I n any case, the local office of the Ministry of Labour or the Governor may reduce t h e sum specified in t h e rules on the occasion of their submission for approval, and m a y veto any increase considered unjustified. Every special levy requires the approval of t h e local office of the Ministry of Labour or the Governor (section 31) \ I n consequence of the rule of occupational and territorial delimitation, the Decree requires t h a t the rules of the association shall mention its headquarters. Section 32 provides t h a t the headquarters of the association shall be specified in its rules, and that if an association, union, ór federation carries on its activities beyond the boundaries of a single province t h e rules must specify the head1 See also p. 229, on sections 46 and 47. 228 FREEDOM OF ASSOCIATION quarters of its local offices, branches, or subordinate organisations. All the documents and correspondence of the union, federation, or joint federation must be kept at its central headquarters, which must be the office of the executive committee or central governing body, the management, and the general secretariat. Every change of headquarters on the part of the central association or the branches must be notified to the representatives of the Ministry of Labour, the civil Governor of the province, and the mayor of the locality, within three da5'S. Other restrictions on the independence of associations relate to their administration through various bodies and the supervision of their officials. The general meeting is the most important administrative body of an association. It meets at least once in six months, on the decision of the executive committee or at the request of over onetwentieth of the members. It is convened by the chairman, who must issue notices in due time and sufficiently widely for all members to take cognisance of the meeting and of the agenda. The convening of the meeting must be announced to the Government authorities, and to the representative of the Ministry of Labour in the localities where such exist, twenty-four hours in advance. The general meeting cannot be held unless at least half the members plus one are present or represented. The votes at general meetings are counted as follows : in meetings of trade unions, one vote per member; in employers' meetings, one vote per member of the association employing in his factory or workshop at least ten workers, with an additional vote for every fifty workers or fraction of fifty.. Resolutions taken by the meeting are not valid unless two-thirds of the members present have approved them. Votes are always taken by secret ballot (section 41-43). Section 42 defines the powers of the general meeting. It is responsible for organising institutions for relief, thrift, co-operation, commerce, etc., deciding on union, federation, or joint federation with other associations, electing the executive committee and the governing body, supervising, inspecting and approving the documents and activities of managing committees and officials, the balance sheets and accounts, adopting amendments and modifications of the rules, electing and dissolving organs of the association or the association SPAIN 229 itself, deciding on the final termination of membership, and, finally, establishing branches, offices and groups. The general meeting also allocates the ordinary and special funds to meet the expenses and decides as to the use of the sums collected. For this purpose, the following matters are determined : (i1) the amount of entrance fees and the method of paying them; (2) the amount of the periodical contributions, both ordinary and special, and the method of paying them ; (3) the maximum amount of the subscriptions for joint purposes due to unions, federations and joint federations ; (4) the part of the contributions or the special contributions allocated to the provident, co-operative and benefit funds; (5) the utilisation of gifts' and bequests; (6) the disposal of the funds in the event of the dissolution of the association and the method of winding up special funds, the former being allocated to social institutions within the area in which the association was established, for which purpose the National Provident Institution takes charge of the moneys in order to make proper use of them (section 46). The amount of the contributions due to the association from the members must be fixed by a resolution of the general meeting convened expressly for the purpose, which is not valid unless twothirds of the-members are present, and a proposal of the executive committee has been submitted and obtains an absolute majority of the votes cast (section 47). Trade associations are administered by their executive committees. These are elected biennially by the general meeting of members expressly convened for the purpose. Two-thirds of the members must be present, election is by a majority of the votes of those present, and voting is secret. If there are more than 500 members, voting may be effected in separate meetings, but it must always be secret. The necessary conditions for belonging to the executive committee are. as follows : the member must be Spanish, of full age, in full enjoyment of his civil rights, a member of the association, and engaged in the occupation or industry in question or previously engaged therein during the five years preceding the election. The rules of the association define the duties of the executive committee. These include the direction, management, and representation of the association, the supervision of the carrying out of its rules, the calling of general meetings and presiding at the same, the 2J0 FREEDOM OF ASSOCIATION representation of the association in the conciliation and arbitration proceedings prescribed by law, and the responsibility for the proper management of the moneys of the funds, institutions and undertakings of the association. On the other hand, the executive committee is not entitled to adopt on its own account resolutions or decisions affecting the general interests of the organisation or the private or trade interests of its members. Any clause to the contrary is void. The Government exercises permanent supervision over the executive committee, for which purpose all appointments must be communicated to the representative of the Ministry of Labour and to the civil Governor within twenty-four hours of the election or renewal (sections 33 to 37). The chairman of the association acts as its legal representative. He acts in its name and carries out the resolutions adopted by the general meeting of members or the executive committee (section 38). The collectors of contributions are appointed by a resolution of the executive committee adopted by an absolute majority. The names and addresses of the persons appointed must be communicated to the representative of the Ministry of Labour and to the civil Governor of the province, and if an association carries on its activities in a town other than a capital, to the civil Governor and the mayor for the district (section 39). With a view to making the supervision of all the activities of the association possible, the Decree provides that various books and registers must be kept. Thus, an association must in the first place keep a register of members joining and leaving it, showing the names, titles, ages, occupations, addresses, and the place where each member's industry or business is established or where he works. These entries must be made in chronological order and indicate the dates of admission and leaving and any change in the above particulars. An alphabetical index of members must also be kept. Further, the executive committee and governing body must keep minute books, with the pages numbered, headed and stamped with a seal affixed free of charge by the representative of the Ministry of Labour or the civil Governor for the province. Finally, it is compulsory to keep account books, namely, a journal, cash book, collectors' books and summary of receipts and expenditure. The accounting of the co-operative, provident and insurance institutions must be kept entirely separate, in conformity SPAIN 23I with the Commercial Code and the special laws regulating these matters (sections 44, 45 and 48). As regards dissolution, the Barcelona associations are subject to the provisions of the Act of 30 June 1887 and the Legislative Decree of '10 March 1923 on associations l . The analysis of these many and minutely detailed provisi ;ns will have shown the care taken by the Government to exclude from the trade union movement all influences unconnected with the trade, and to place the working of the associations under its own guardianship. Unions and Federations The object of the legislature in establishing the rule of occupational and territorial delimitation was to create a special body for defending the trade interests of each group of persons concerned. In actual fact, however, trade interests tend to exceed territorial limits if these are drawn too narrowly. In view of the tendency of undertakings to concentrate, the Decree accordingly authorises the formation of federations of trade associations, but on a twofold condition. It imposes, in the first place, respect for the administrative autonomy of the primary associations, and secondly, respect for the principle of occupational delimitation. Section 13 reaffirms this latter principle in the following terms : Trade unions for the same occupations in different localities or districts, and likewise trade unions for related occupations and undertakings, may for lawful purposes form a trade union federation with legal personality without prejudice to that of each of the federated associations. It may be seen, however, that the idea of occupational delimitation has been enlarged, and that it applies no longer only to members in one and the same trade, but also to members of trades and industries of the same kind. Associations may also organise permanent or temporary unions for the advancement of their joint trade interests, on condition that a resolution has been adopted in each association by an absolute majority of all the members. The text of- the resolution must moreover specify the purpose and scope of the arrangement and the extent of the obligations contracted. The resolution is not binding until it has been communicated to the Ministry of Labour. 1 S e e p. 220. 2¡2 FREEDOM OF ASSOCIATION Section 15 protects the autonomy and right of withdrawal of each of the member associations. In all cases of union, federation or joint federation of associations, every association shall retain its autonomy and absolutely distinct identity, and shall not in any case delegate the rights, duties and obligations reserved by this Decree or by the rules, to the executive committee and general meetings of each association; consequently a union shall not cancel, diminish, or restriot the personal rights of any of the affiliated associations. Every association shall be at liberty to secede at any time, and any stipulation to the contrary or penal clause or fine provided to impede or prevent such action shall be void. The same rules as apply to the constitution, working, and administration of primary associations also hold good for their unions and federations, with this difference however; that the constituent assemblies are attended, not by the individual members of the associations, but by the persons who, according to the law and the rules of the organisations forming the federation, are responsible for representing them. POSSIBILITIES OF ACTION The 18817 Act made no kind of reference to the possibilities of action of trade associations. Since then, as has been shown, the legislature has" enlarged their functions in the most varied directions *. These many measures, scattered in a series of laws, were consolidated in the Barcelona Decree, which also establishes the social powers of trade associations from the legal standpoint. The various powers conferred on trade associations by the Decree of 3 November 1922 will be examined below under the heads of trade union activity, civil and economic activity and social activity. Trade Union Activity Trade associations have the right to create institutions for purely trade purposes; under section 19, subsection (2), they may organise specialised instruction for the purpose of the vocational training and improvement of their members, and likewise workshops, exhibitions, competitions, museums, laboratories, technical schools, conferences, and publications. 1 .See p . 197. SPAIN 233 They have also the power — and this is an exception to the special legislation on this subject — to found provident and social assistance institutions, co-operative credit, producers', and consumers' societies, savings banks, insurance funds, and employment exchanges. Civil and Economic Activities Primary associations and their federations (but the latter only on certain conditions) have legal personality and enjoy all the rights derived therefrom. They have therefore the power to acquire and own property of all-kinds, to receive subsidies, gifts and bequests, to contract obligations of all kinds and to exercise the rights granted to ordinary associations under the laws in force (section 19, subsection (5). In this connection, reference may also be made to the provisions of section 21, which states that an association may adopt trade marks, devices, signs or.names to distinguish the products of its members' work. It follows from these provisions that in civil law the status of recognised trade associations is precisely the same as that of ordinary civil or commercial associations. In other words, they may engage in undertakings run for profit and in commercial transactions properly so-called. Thé concession of this privilege is not to be met with in the legislation of other countries, and the reasons for it may well be asked. It seems — and the many precautions taken to supervise the utilisation of the funds of the association would appear to prove this — that by this means the legislature hoped to interest the members of the association in the prosperity of their organisations, and thereby to dissuade them from activities (strikes, lockouts and boycotts) which might threaten their collapse. But this unlimited right of possessing, acquiring and contracting implies in return an unlimited responsibility, which responsibility entails sanctions not only from the fact of the activities of the organisation in their legal relations with respect to work (breach of contract of work, etc.), but also from the fact of their commercial activities. It must be pointed out that the law does not, like French law, for instance, ensure the partial or total immunity of the property of the association. Among the various forms of economic activity, there was one in particular in the mind of the legislature, when it authorised the m FREEDOM OF ASSOCIATION associations to engage in commercial transactions, namely, participation in and execution of public works. According to section 20 : The State, provincial assemblies, corporations (mancommunidades), municipalities, and port works committees may assign contracts for public works to trade associations in conformity with the following rules : (a) The public works in question shall be subdivided whenever possible in order to enable trade associations to take part in competitions for constructional work. (t>) The expert management of the works assigned to the trade associations under the conditions laid down in this Decree shall be entrusted to the technical and expert staff of the State or the official body giving the contract. (c) Special regulations shall be issued to explain in detail the provisions contained in these rules. Unions and federations of associations have legal personality of the same type as the affiliated associations, subject, however, to certain restrictions. Thus, they may hold only the real property necessary for their offices, meetings, libraries, classes, collections and museums, laboratories, employment exchanges, apprenticeship workshops, rest rooms, guest houses, homes and hospitals. They may not receive gifts and bequests except for the above-mentioned establishments or for funds and organisations for insurance or social assistance. Finally, they may not have any political purpose, nor undertake any commercial activities except those of a co-operative nature, which are exclusively for the benefit of members (section 16). Social Activities In the social field the Decree opens the widest possibilities to the activity of associations. The law officially recognises their right to intervene ex officio in the relations between the parties to contracts of work and to participate directly in the preparation of social legislation. In all these matters the authority of the association takes the place of the initiative of members. According to section 19, subsection (8), trade associations have the power to intervene in the conclusion of collective agreements, agreements regulating Sunday rest, the commercial working day, the eight-hour day, night work in bakeries, and in other cases where authorised or required by labour legislation, provided that they do so only within the occupation or industry covered by the association. They have also the power according to section 19, subsection (9), to intervene in disputes between their own members or between associations on questions relating to general or trade interests. SPAIN 2 35 In consequence of this right of general intervention in relations between associations and between the parties to the contract of work, the associations may institute any civil or criminal proceedings before the courts. They may also appear before an industrial court, or in default thereof, before a court of first instance, either in their own name or as representatives of their members if the latter or some of them should be required to appear as plaintiff or defendant for any legal purpose connected with labour. At the same time, the Decree reserves to the parties the right to renounce representation by the association, or withdraw the charge, or provide for their own defence by themselves or by an advocate (section 19, subsection (6), and section 22). The Decree simplifies judicial procedure in favour of associations. An association may supply a court of law with information in writing, stating facts, without any demand from a party or from the court. Such information is added to the documents in the case and communicated to the parties in order that they may controvert them during the proceedings if they think fit (section 22). In their relations with the public authorities, associations have : (1) the right to propose the amendment and improvement of the regulations for the health and safety of workers, housing and apprenticeship; (2) the right to appoint representatives to take part in commissions, joint committees and all other organisations established to take cognisance of disputes arising in the various industries and occupations between capital and labour (section 19, paragraphs 7 and 4). These are, in brief, the privileges conferred on associations in the province of Barcelona by the Decree of 3 November 1922. Yet in spite of these advantages, the reform has, in practice, remained a dead letter. What are the reasons? It seems that in the first place, owing to the conflict between the various trade union tendencies in the province, it was very difficult, if not impossible, to combine in a single association for each trade the majority of the persons concerned, and this is an indispensable condition for the working of the system. Secondly, the recognition of the union was made dependent on so many detailed conditions of all kinds that the existing association preferred to remain under the ordinary general law, or even to exist " outside the l a w " , rather than adopt a system 236 FREEDOM OF ASSOCIATION of organisation which subjected all their activities to the permanent supervision of the authorities. Finally, this reform, which rested in essence on the principle of organisation by occupational and territorial delimitation, was contrary to the increasing tendency towards centralisation in workers' and employers' associations. It remains true, however, that the Spanish Decree of 3 November 1922 constitutes one of the most complete attempts at codification of trade union law. The experiment was not without value for the future, for on this Decree, and in particular on certain provisions relating to the trade powers of associations, the Government, a few years later, based its institution of the national corporative organisation of industry. CHAPTER III. N A T I O N A L CORPORATIVE O R G A N I S A T I O N OF I N D U S T R Y § 1. — The Spirit and Antecedents oí Corporative Organisation * W h e n the Military Directorate came into power in 1923 it addressed manifestos to employers and workers in which it explained the principles of its social policy 2 . I n its manifesto to the workers the Directorate declared : The Military Directorate has been much gratified by the welcome which it has received from the Spanish people and in particular from the workers, who represent one of the most important factors in the life of a country and exert the greatest influence on the transformation and growth of the nation. The Directorate desires to make public its conviction that the chief factor in the increase in the cost of living is to be found in the deficiencies of vocational training and inadequacy of the labour supply and in the fact that the output of labour is not proportionate to the length of the working day. The working classes, having been wilfully led astray and having moreover been incensed by the feebleness and injustice of the public authorities, have been embittered against their employers and have engaged in a struggle with them. What is still more serious is that the workers have taken their vengeance at the expense of national production by endeavouring to reduce output. . . . Addressing itself more particularly to workers' associations, t h e manifesto added : The Directorate urges the workers to free themselves from their bonds and to leave the organisations which, on the pretext of conferring advantages upon them are in reality leading them to ruin and destruction. Workers' organisations are justifiable if formed for educational purposes. for mutual protection and mutual relief, and even for rightful political objects, but not if formed for the purpose of impeding production. 1 Legislative Decree of 26 Nov. 1926 concerning national corporative organisation. An English translation will appear in the Legislative Series of the International Labour Office for 1926. 2 See Industrial and Labour Information, Vol. VIII, No. 2, p. 44. 238 FREEDOM OF ASSOCIATION T h e manifesto laid particular stress on the need for greater and better output, making this a condition for the improvement of social legislation. Legislation for the protection of the workers against abuses and cupidity, legislation intended to guarantee them against the risks of old age, to promote their education, and to secure for them a reasonable amount of leisure, must be based on honest output on their part as regards both quantity and quality. This is a factor of first importance in the cost of living. T h e following employers. day the Directorate issued its manifesto to In the present circumstances the authority which has been entrusted with the government considers it its duty to address the principal industrial organisations in order to explain to them the attitude which the Government intends to adopt with regard to the most important national problems. The solution of the problem of production is of vital importance to the nation, and to-day the Directorate addresses the. employers, the representatives of capital, as yesterday it addressed the workers. The Directorate has no need to say that in case of industrial disputes it is firmly resolved to maintain order and to support the employers. It feels bound, however, to explain its point of view — a point of view which takes into account both modern conditions and the limitation of human nature — regarding the relations between employers and workers and the right of the latter to endeavour to find in lawful and peaceful organisation the best method of participating in production. It may be hoped that the avaricious and arbitrary type of employer will soon disappear. A large number of employers have already introduced in their undertakings on their own initiative conditions more favourable to the workers than any statutory regulations in force in any other country. Those who act otherwise hamper progress and block the way to the recognition of the rights of the workers. Their policy is irejudicial to society and hinders the normal evolution of the national ife. Employers must not oppose ideas of progress which are neither a danger to the social order nor an infringement of their legitimate rights to organise and direct their undertakings. The direction of these cannot. be subjected to supervision except in the case of lawfully constituted cooperative organisations of the type which on various occasions has had so much success in Spain. It is the duty of the State to see to it that the relations between capital and labour and the policy followed in this respect have the best results from the point of view of production. It is the State which must prevent employers from arbitrarily influencing wages and hours of work. Similarly it is the State which must see to it that workers fulfil their obligations by not lightly altering the standards laid down or organising revolutionary strikes. Î These manifestos show t h a t the Directorate proposed to have recourse to the collaboration of employers and workers in the work of economic and social reorganisation it was about to undertake. SPAIN 239 As soon as it came into power, therefore, is sketched its policy of State intervention in the relations between capital and labour, a policy on which the new corporative organisation created in 1926 ultimately rests. These manifestos were on the whole favourably received by both employers and workers. The Spanish Employers' Federation declared that " in order to ensure by cordial collaboration the realisation of aspirations common to the various factors of production employers were prepared to welcome the workers' demands, even of the boldest kind, on condition that they were lawful, and to examine how far they might be harmonised with the needs of national production ". After enumerating a whole series of social reforms which it proposed to support, the Employers' Federation declared that it was ready " to sacrifice its interests in order to allow of the establishment of a regime of peace and social reconciliation ". On the other side, the executive committees of the Socialist Party and the General Federation of Spanish Workers, speaking for the working classes, asserted, in a note communicated to the press r " their conviction that any kind of attempt to attack the rights already established by labour legislation, rights which, however modest, were the results of the action of the proletariat, would entail fresh complications in the life of the country, whose range it would be difficult to foretell, and the immediate effect of which would be to intensify the causes of the national economic crisis ". This declaration could hardly be described as an unreserved adhesion to the programme proposed by the Directorate, but it was nevertheless interpreted as a manifestation of benevolent neutrality. The foundations of an agreement, which if not expressed was at least tacit, and was to decide the future tendencies of trade union legislation, were thus laid. In the first few years of the military dictatorship the Directorate made great attempts to win over at least some of the workers' unions in favour of its policy. Its line of conduct appears to have been to hamper the action of openly separatist and revolutionary associations, and on the contrary to promote the development of associations which were profoundly rooted in the country, even if their tendency was towards the left, provided that they represented a force making for peaceful administration. The Directorate accordingly gave the trade unions representation in the new corporative municipal assemblies FREEDOM OF ASSOCIATION 240 and provincial councils, and the Council of State, as reorganised on 13 September 1924. This policy of the Directorate prepared public opinion for the acceptance of the national corporative organisation of industry set up by the Decree of 26 November 1926. The support given from the first by trade organisations to the work of the Government is largely to be explained by the fact that the new form of organisation is to some extent based on existing trade associations. It should in fact be observed, for this is one of the distinctive features of the reform, that the Spanish legislature, instead of following the Italian precedent ', did not consider it necessary to revise the status of associations before allowing them to take part in the new regulation of conditions of work. The.various laws relating to associations, whether covering Spain as a whole or only the province of Barcelona, were maintained in full. Within the limits of this legislation the legislative Decree respects the status of free trade associations, " organisations which must always have more life than Government creations because they enjoy the trust of their members and are the result of mutual good-will, enthusiasm, faith jn an ideal, and sacrifice " 2. The associations, without in any way losing their character of free organisations, enter in the corporative State, as will be more clearly explained below, by forming the electorate for the joint committees on which the whole system rests. The new system is, indeed, the natural outcome of Spanish trade union legislation. In previous chapters the Acts and Legislative Decrees constituting the national antecedents of the Legislative Decree on corporative organisation have been analysed. Among the more characteristic measures in this respect reference may be made to the Legislative Decree of 22 April 1920 setting up the first Mixed Labour Commission in Barcelona, the Royal Decree of 5 October 1922 setting up temporary and permanent joint committees, the Royal Decree of 25 August 1923 entrusting to these committees the work of settlingstrikes affecting public interests, and a whole series of complementary measures adopted in 1924 and 1925. " In view of the satisfactory results of this experience ", said the Minister of Labour, " we have decided to make these committees compulsory, in order to prevent 1 Cf. Italy, p. 1 of present volume. - El Sol, Dec. 1926. SPAIN 241 p a r t y or class interests from destroying recourse to these methods of conciliation. " I n addition to these national antecedents, it may be of interest t o refer to the foreign experience which has in some measure inspired the l e g i s l a t i v e Decree. Mr. A u n o s , Minister of Labour a n d the principal author of the reform, himself referred to this point in a press interview ' : The idea of co-ordinating the joint committees was gradually developed. On the one hand, I' was influenced by the Italian Act of 3 April 1926 on collective relations in connection with employment, and on the other, I was much impressed by the Belgian Royal Decree of 5 May 1926 making joint conciliation and arbitration committees compulsory. Of these two laws the Belgian Act is that best adapted to the realities of Spanish industrial conditions. Admittedly Belgium has no general national organisation, nor has it any corporative organisation, apart from the fact that the higher authority of the joint committees is the National Labour Committee, although even so there is no connection between the committees for the different trades. In the Spanish Decree use has been made of the experience gained both at home and abroad. Our Decree is more democratic than the Belgian, for in Belgium the members of the committees are appointed by the Minister on the nomination of the associations ; in Spain, on the contrary, the associations themselves freely designate their representatives. It is also more democratic than the Italian Act ; the latter reserves to the Government the right to recognise employers' or workers' organisations or not, according to their views and tendencies, and this approval, which makes them official associations, gives them the right to act to the exclusion of all others in regulating conditions of work. Moreover, the Italian corporative bodies have not the organic. character of those set up by our Legislative Decree, for ultimately they are nothing but meetings of national trade associations. T h e study of the legislative antecedents of the reform and t h e analysis of the official statements made by its authors now make it clear w h a t end the Spanish legislature had in view. I n the first place, and this was the immediate purpose, it proposed to introduce compulsory and general procedure for the settlement of labour disputes. Secondly, and this was the ultimate purpose, it proposed to establish under the supervision, if not the direction, of the State, b u t with the consent of t h e parties, stable relations between capital and labour with a view to increasing o u t p u t and State authority. I t was claimed t h a t this end might be achieved by means of a new form of organisation, the National Corporative Organisation, whose most characteristic features will now be examined in t u r n . 1 Statement published in La Nación, Madrid, n Dec. 1926. Freedom of Association 16 242 FREEDOM OF ASSOCIATION § 2 . — The Constitution of the National Corporative Organisation. SCOPE T h e system of Corporative Organisation is based on the preliminary classification of industries and trades. According to section i , t h e elements of which Spanish industry is composed are organised on the basis of specialised bodies, each of which is given official representation by the appointment of joint committees with graduated jurisdiction. T h i s system is based on the classification and definition of the occupations which together constitute t h e national industry '. 1 Section 9 classifies industries, employments, trades and occupations in the following corporative groups : A. — Primary Production (i) Mining : mines, quarries and saltpits, exploitation of all classes of veins or seams, springs and sources of water. (2) Fishing. B. — Secondary Production (3) Electricity, gas and water : electricity, gas, compressed air, and similar works ; supply of water and hydraulic power. (4) Iron and other metal working and allied industries : (a) iron working, including first transforming processes ; various rolling mills ; (b) all metal working except that of iron ; (c) metal construction ; engineering ; construction and manufacture of transport material of all kinds ; (d) production of apparatus and articles made altogether or principally of metal which do not belong to a special group owing to the nature of their employment. (5) Building materials : manufacture and preparation of all stone and earth materials intended for constructional and hydraulic works, such as cement, stone, marble, mosaics and artificial stone ; pottery and china ; glass and crystal ; heating, ventilation, sanitary engineering and preliminary wood-working. (6) Building tirades : all building trades, including decoration, ventilation, heating and hygiene of buildings ; public works and carpentry. (7) Furniture industry : furniture, cabinet-making, chair-making, upholstery ; wood, ivory and bone turners and cutters. (8) Textile industries. (9) Clothing and millinery industries : manufacture and transformation of articles excluding personal services ; (10) Luxury industries : goldsmiths' and silversmiths' work, jewellery, hardware, toys, watches, and clocks. SPAIN 2 43 Section 57 excludes from this system agriculture, home work, domestic service, and work carried on in private offices or those of the liberal professions, as also the work of u n d e r t a k i n g s and estates directly exploited by the Government, and public services carried on by the State or by a province, municipality, or any other official body. I n the case of public services carried on under contracts or concessions, the Government may authorise the formation of joint ( n ) Electrical and scientific instruments : lighting, optical, photographic, topographical, astronomical, meteorological, musical, medical and surgical instruments ; apparatus, and material ; weights, and measures ; teaching and laboratory material. (12) Printing and allied trades : printing trades, including photography and bookbinding. (13) Chemical industries : (a) manufacture of chemicals used in arts and industries, • pharmacies, agriculture, and for domestic purposes ; (6) powders and explosives ; matches of wood or wax ; (c) production and working of paper, cardboard, rubber, celluloid and similar materials ; (d) hides and leather. (14) Milling and baking : milling, baking, biscuits, and Italian paste ; (15) Preserved food industry. (16) Food industries : food products, including milk products : manufacture of sweets and chocolate. (17) Sugar and alcohol : sugar factories and distilleries ; preparation of beer and ice. '18Ì Press and publishing. \ 19) (20) (21) included (22) (23) C. — Services, Commerce, and Miscellaneous Land transport. Maritime, river, and air transport, including port services. Communications : various means of communication not under previous heads. Public entertainments. Hotel industry : (a) hotels, boarding houses, and restaurants ; (b) cafés, public-houses, bars and similar establishments ; (24) Hygienic services : baths, hairdressers, shoe cleaners ; laundries ; various hygienic and toilet services ; (25) Commerce : wholesale and retail trade. (26) Offices and banks, including similar commercial establishments. (27) Various industries and occupations : all those which cannot be placed under one of the previous heads. 244 FREEDOM OF ASSOCIATION committees in such form as appears most suitable to the satisfactory working of the service in question where there is no special provision to the contrary. A n y earlier provisions concerning joint committees in services of this kind remain in force l. On the basis and within the limits of this classification the Decree organises the representation of trade interests by means of joint bodies with graduated jurisdiction, namely : (i) (2) (3) (4) local and inter-local joint committees ; mixed labour commissions; corporations and corporation councils; the Delegate Commission of Corporation Councils. 1 The following, according to the Minister of Labour (La Organización corporativa del trabajo, p. 51), are the reasons given for the exclusion of these occupations from the system : (a) Home work, because a Legislative Decree of 26 July 1926 had already introduced a special system of joint boards for this group of workers, to fix minimum rates of wages. (b) The liberal professions, because the work of lawyers, doctors, etc., should be considered on the same footing as that in public appointments. (c) Undertakings and estates directly exploited by the Government and public services carried on by the State, provinces, municipalities, etc., because the methods of running such undertakings differ widely from those employed in private undertakings. In the case of public services carried on under contracts or concessions, the Government proposes to create a special system of joint organisation appropriate to each of these services. Thus a national joint committee has already been set up for the telephone service, and special joint committees for the railways. Public services property so called, on the other hand, come into the system of national corporative organisation. The proof is that in Barcelona, already before the new Act came into force, joint committees for gas and electricity works had been set up and remain in operation. As regards agriculture, which was temporarily excluded from the system for technical reasons, a Legislative Decree of 12 May 1928, published in the Gaceta de Madrid of 20 Ma}' 1928, created a special corporative organisation, the characteristic features of which may be summarised. The explanatory memorandum to this Decree recalls that the Legislative Decree of 26 Nov. 1926 creating the National Corporative Organisation of Industry met the need " of creating a national social structure which would allow of the peaceful application of social legislation ". The intention of the Government was to extend this measure to all branches of human activity, but agriculture demanded preliminary and careful study. The Decree provides for the constitution of three groups on a corporative basis. The first consists of agricultural employers and workers, its 245 SPAIN These institutions together form the National Corporative Organisation. T h e y may be studied from t h e point of view of the structure, composition, functions, working, and dissolution of each of the component bodies. S T R U C T U R E AND C O M P O S I T I O N Before examining the composition properly so called of the various corporative bodies, their legal status and field of activity should first be defined. Legal Joint Status of Joint Bodies Committees T h e joint committees are public institutions, and for this reason the initiative in setting t h e m u p is not left to those actually concerned, but lies with the Government. According to section 7 : The joint committees shall be created by a Royal Order of the Ministry of Labour, beginning with the chief centres of industrial population, and among these with the occupations and trades where this is called for owing to the special conditions of work. t T h u s , the Ministry of Labour does n o t from the outset appoint joint committees for the whole of industry, b u t only as and when special circumstances require. T h e suitable time for their creation is in fact left entirely to its discretion, b u t once a decision has been function being to fix the conditions of work by agreement and to settle any difficulties arising out of the observance of the agreements reached. The second consists of landowners and tenants of various kinds, its duty being to establish normal relations between these two sets of persons. The third includes the producers of agricultural raw materials on the one hand and those who use and transform such materials on the other. The first two groups will set up, on the lines of the National Corporative Organisation, joint committees with graduated jurisdiction : local in the first grade, inter-local in the second, and finally, at the top, corporation councils. An appeal against the decisions of the local and inter-local committees may be taken to the corporation council and the Ministry of Labour. The third group will be constituted on the basis of arbitration committees, which will vary in character according to circumstances and the special structure of each industry. These bodies will similarly be grouped in national corporations in which all types of agricultural manufacture will be represented. 246 FREEDOM OF ASSOCIATION taken, the parties concerned cannot interfere with the carrying into effect of the measure. According to section 16: When a local or inter-local joint committee set up by the Ministry of í.abour is unable to work owing to the systematic and unjustifiable refusal of either of the parties concerned to appoint its representatives, the Minister may appoint them ex officio. Section 10 defines the field of application and number of joint committees. Each of the corporative groups specified in section 9 is represented within its respective locality or localities by as many joint committees as the trades or occupations it comprises. The number of local joint committees will therefore be that considered necessary for the proper representation of all the groups distinguished in the Legislative Decree. It follows from this section that the institution of joint committees depends on the observance of the rule of occupational and territorial delimitation. But, as section 10, subsection (2), adds, in exceptional cases, where the extension of a particular industry, its special aim and the particular nature of labour relations so demand, joint committees for several localities may be set up. In every case the Ministry of Labour reserves the right to define for each group concerned these special industrial characteristics. In addition, in provinces which are economically not much developed, either because the principal industries are of the same kind, or because there is no corporative organisation, the Ministry of Labour may set up, by Royal Order, provincial joint committees and a mixed commission comprising and representing them. Finally, according to section 1 of the supplementary provisions of the Decree, the rules concerning the organisation and functions of the joint committees will apply to existing joint committees, which will be incorporated with any joint bodies subsequently set up. On the other hand, there will be no change in the organisation, working and electoral rules of the joint committees and mixed commissions for commerce in Barcelona ; only their powers will be brought into conformity with those conferred on joint organisations by the present Decree. Mixed Commissions Whereas the joint committees are compulsory institutions, the mixed commissions, on the contrary, are voluntary groups. According to section 19, they are formed by the voluntary combination of SPAIN H7 joint committees which from the labour or economic point of view are connected : (i) because they represent similar, and therefore homogeneous, industrial functions; (2) because they co-ordinate in an economic whole trades and occupations engaged in a series of inter-related operations within the system of industrial organisation; (3) because there is a direct relation between the trade activities represented, due to simultaneous and concurrent action in the work of production. This definition, while still inspired by the rule of organisation by trades, yet extends the idea sufficiently for the groups that are freely formed by the joint committees to be able to adapt themselves to the always changing necessities created by the movement of concentration and integration in industry. As already shown, the initiative in setting up the mixed commissions is taken by the joint committees themselves. This must be followed, however, by a Royal Decree in order to give them official standing. Moreover, within a fortnight of entering on their duties they must draft the rules which they are to observe. These rules are submitted to the Ministry of Labour for approval, which decides after consulting the Delegate Commission of Corporation Councils (section 22). The Corporations and Corporation Councils According to section 4 of the Legislative Decree, the corporation consists of the combination of all the joint committees for the occupations, trades and services comprised in each of the paragraphs of section 9. There are therefore twenty-seven corporations. The schedule contained in section 9 is not unchangeable, however, for section 4 adds that in the event of the creation of new corporations, owing to the fact that one of the trades or occupations mentioned in the section separates from the group, or to the constitution of new occupational groups, the promulgation of a Legislative Decree governing their working and functions will be necessary, to be issued on the report of the Delegate Commission of Corporation Councils and the Permanent Committee of the Council of Labour. Each corporation will have a council which acts as the central body for the occupation. Its headquarters will be fixed by Royal Order in the locality where the industry or industries covered are most highly developed (section 29). 248 The Delegate FREEDOM OF ASSOCIATION Commission of the Corporation Councils T h e Delegate Commission of the Corporation a co-ordinating body between these councils. I t direct advisory organ in the Ministry of l a b o u r relating to the corporations which t h e Ministry t o h e a r (section 3 3 ) . Councils acts as also serves as a for all questions decides it ought T h e corporations, corporation councils, a n d Delegate mission are bound to act in their respective spheres. Composition of the Various Joint Bodies Com- 1 According to the new section 11, the local joint committees consist of five employers' representatives and five workers' representatives with an equal number of substitutes, all of whom must belong to the industry or industries, trades or occupations for which t h e committee is set u p , and be included in the registers for employers or workers as the case m a y be. T h e chairman and first vice-chairm a n must be unconnected with the occupation, and are freely appointed by the Ministry of l a b o u r , which also appoints t h e secretary, w h o has no right to speak or vote at meetings. The second vice-chairman, the assistant secretary, the treasurer, and the accountant are appointed by the committee itself from among its members in such a way that these functions are equally divided a m o n g employers and workers. I n special cases the Ministry of Labour m a y reduce t h e number, b u t the representation of employers and workers must always be equal. W h e n t h e chairman is present, t h e vicechairman appointed by the Ministry is entitled to speak but not to vote. T h e Ministry of Labour m a y authorise the joint committees to increase the number of their employer and worker members if such a measure is justified b y the importance of the industry or branch of industry, or for any other admissible reason. I t may similarly reduce the number of representatives in localities where this measure is justified because industry is only slightly developed. According to the new section 13, t h e inter-local joint committees consist of seven employers' delegates a n d seven workers' delegates 1 See the Royal Legislative Decree of 18 June 1927 amending sections 11, 13, 15, 20, 30, and 34, and section 2 of the transitional provisions, of the Royal Decree of 26 Dec. 1926. An English translation will appear in the Legislative Series for 1927. SPAIN 249 with an equal number of substitutes. T h e chairman and vice-chairm e n , w h o must be unconnected with t h e occupation, are designated by the Ministry of Labour. T h e remaining regulations concerning the appointment of t h e officials of the local joint committees also apply to that of the officials of the inter-local committees. T h e mixed labour commissions consist, u n d e r the new section 20, of t h r e e representatives of employers and three representatives of workers from each of the joint committees constituting them. These representatives must belong as employers or workers to the trades or industries composing the mixed commission, but it is not necessary t h a t they should belong to the joint committees combined in t h e commission. E a c h mixed commission has a chairman, first and second vicechairmen, secretary, assistant secretary, treasurer, and accountant. T h e chairman and first vice-chairman, w h o must be unconnected w i t h the trades covered by the commission, are appointed by the Ministry of Labour. If a judge is appointed, there will be no incompatibility with his judicial functions. T h e Ministry of Labour also appoints the secretary, on the proposal of the mixed commission concerned. T h e other officials are appointed by the commission itself from among its own members, the appointments being divided equally between employers and workers E a c h corporation council, according to the new section 30, consists of a chairman, vice-chairman, eight employers' representatives, eight workers' representatives, and a n equal number of substitutes. All must belong to the industry or industries comprised in the corporation, and are elected by the joint committees for t h e industry, trade or occupation concerned. W h e n the corporation is subdivided into secondary groups as shown in section g 1, each of the latter elects four employers' and four workers' representatives with an equal n u m b e r of substitutes, and these trade committees together constitute t h e corporation council. T h e employer and worker members of the council are elected by the representatives of employers and workers respectively on the local and inter-local committees. If when the votes of t h e various committees are counted it is found that one of the minority candidates has obtained at least 20 per cent, of the votes of the employers and workers in the occupation concerned, this minority may be repre- 1 See p. 242, note 1. 250 FREEDOM OF ASSOCIATION sented, in which case each group of the council will consist of six members of the majority and two of the minority. If the corporation has five sub-groups and the minorities obtain at least 20 per cent. of the votes, the latter elects for each class, one of the four members of the sub-group. The Delegate Commission of Corporation Councils similarly has a chairman and vice-chairman appointed by Royal Decree of the Ministry of Labour, and a secretary-general designated by the Ministry (end of section 33 ). As soon as the corporation councils enter on their duties, the new section 34 adds that the trade representatives in each council, having been convened by the Ministry of Labour, appoint an employers' representative and a workers' representative who, meeting at Madrid, will freely elect the members of the Delegate Commission. This body consists of seven employers' representatives, seven workers' representatives, and an equal number of substitutes. Whenever the nature or importance of the subject under discussion requires, or on the proposal of the Delegate Commission, the Minister of Labour may convene the corporation councils or their authorised representatives, together or separately, for which purpose the agenda of the questions to be examined must be submitted to each of the corporations in sufficient time for the representatives to be able to acquire full credentials. In such a case the function of chairman of corporations is assumed by the Minister of Labour, who acts &x officio a? chairman of all the corporations, and that of first vice-chairman by the chairman of the Delegate Commission. The chairman prepares the meetings of the Delegate Commission. presides over the discussion, having the right to vote, has its decisions carried out, and keeps the Commission, corporations, and Ministry of Labour in constant touch with each other. The treasurer, accountant, assistant secretary, and second vicechairman are elected freely by the members, as in the mixed labour commissions, on condition that the system of rotation as between employers and workers is observed. The Director-General of Labour and Social Action and the Factory Inspector-General, or the Deputy Director and Assistant Inspector-General acting on their behalf, are ex-officio members of the Delegate Commission of Corporation Councils. On the proposal of the Commission, the Ministry of Labour appoints the necessary staff for organising the services of its general secretariat. SPAIN 25I Finally, both in the joint committees and in the central corporative bodies, technical experts may act as assessors, although without t h e right to vote, being designated either by the parties if they so decide, or at the request of the parties by the Ministry of Labour. T h e term of office of the joint organisations is five years without limit to the right of re-election (section 38-40). I t follows from these various provisions that the corporative organisations consist of four separate elements : ( 1 ) T h e representatives in equal numbers of employers a n d workers in the industry, trade or occupation concerned ; (2) T h e officers, some of whom a r e designated by the bodies themselves and some by the Government ; but only the chairman has the right to vote, acting as a conciliator or arbitrator directly representing t h e authorities ; (3) T h e secretariat, which will probably form the permanent technical organisation of the institution l ; (4) T h e technical assessors, w h o , like the secretaries, act in an advisory capacity and have no right to vote. Participation Composition of Trade Associations of the Joint in the Organisations T h e account of the regulations concerning the composition of t h e joint organisations will have shown that, subject t o t h e intervention of the representative of the Ministry of Labour, the working of t h e corporative system rests on t h e direct representation of t h e parties concerned. T h e questions how the representatives on the prim a r y joint committees are designated, whether t h e associations intervene in such designation, and if so, how far, are therefore of capital importance. Now, according to t h e Decree, the appointment of t h e members of the joint committees is the result of direct election by recognised associations. I t is t h e n t h e trade associations with electoral capacity that ultimately decide on the policy of their delegates in the corporative organisations. T h e r e is therefore occasion to examine in some detail what conditions are imposed on the associations for obtaining electoral capacity, the conditions of eligibility, and the m e t h o d s of election. 1 Cf. Mariano GONSALEZ-ROTHNOSS : " La misión de las secretarias en los comités paritarios ". Revista Social, Vol. III. 252 FREEDOM OP ASSOCIATION Electoral Capacity of Associations According to section 12, the employers' and workers' representatives on the joint committees are elected by the workers' and employers' trade organisations respectively, in the industry, trade, occupation or group in question, if these are lawfully constituted and included in the electoral register prepared by the Ministry of Labour. I t is explained in section 3 that in order to ensure the representation of each occupational group in the joint corporative organisations, a register of employers' and workers' organisations will be kept at the General Directorate of Labour and Social Action, which will be revised once a year in accordance with the Royal Decree of 5 March 1926. For the purpose of applying the joint system, section 12, subsection (2), adds that an association will be deemed to be a workers' association if it consists exclusively of intellectual or manual workers who combine for the defence or promotion of the interests of the trade, occupation, or group for which the joint committee is set up. The members of the inter-local joint committees are elected by the associations in the industry concerned, under similar conditions to those indicated for the local committees. The first condition for participation in the elections is therefore " that the associations shall be lawfully constituted "; in other words, they must conform to the legislation in force, i.e. the Acts of 1887 and 1923 and the Barcelona Decree of 1922. Existing associations which have not obtained legal recognition, therefore, cannot obtain the right of electing to the joint committees. In the second place, the associations must be entered on the electoral register. Inclusion in this register may in some respects be considered a proof of corporative capacity. Section 5 of the transitional provisions states, however, that pending the full coming into operation of the Decree and the approval of the electoral register, and before the constitution of each joint committee, a brief time limit will be allowed for associations which believe they have the right to be represented on the joint committee, to satisfy the necessary conditions, provided that the Permanent Commission of the Labour Council has first approved. Finally, there is the third condition that the associations must satisfy the rule as to occupational and territorial delimitation in their organisation. SPAIN 253 As regards the employers' electorate, the term employers' trade associations is taken to cover not only employers'.associations set up in accordance with the Associations Act, but also civil and commercial associations which normally employ over a hundred workers. The members of the associations or societies which have electoral capacity have the right to vote when each representative body is elected. The register of the members of each association serves as an electoral list. In associations including several industries, trades or classes of workers, only those members belonging to the occupation or group with which the committee is concerned are entitled to vote. It is only when there are no associations satisfying the statutory conditions that the employers and workers interested in setting up a committee may designate their respective representatives, in separate meetings convened by the regional authorities, the mayor, or the chairman of the local office of the Labour Council, and held in accordance with the provisions of the Act of 15 June 1880 on the exercise of the right of assembly. Conditions of Eligibility Section 15 provides that membership of the local and inter-local joint committees is open to Spaniards of full age who have not been declared incapable of fulfilling their public duties. Women have the right to vote and are eligible. In the inter-local joint committees the majority of the members representing employers and workers respectively must reside in the locality where the committee is to be set up. Methods of Election The election of the workers' representatives on the joint committees takes place within each workers' association in accordance with its rules and regulations, but in the presence of a representative of the authorities. The election of the employers' representatives takes place within each employers' association, which has one vote if the members employ less than a hundred workers, and an additional vote for every additional hundred or fraction of a hundred employed. Civil and commercial associations have two votes if they employ over a hundred workers and less than two hundred, with an additional vote for every additional hundred or fraction of a hundred. The counting of the votes and the declaration of the results are entrusted to the regional authorities, or failing these, the local labour 254 FREEDOM OF ASSOCIATION office, for which purpose these bodies receive the partial records giving the results of the voting in the associations or organisations. These results must be published. An appeal against the legality or accuracy of the records or acts nullifying the vote may be taken to the Ministry of Labour, which decides without appeal after having heard the Delegate Commission of Corporation Councils; but the necessary formalities connected with the appeal may not suspend the constitution of the joint committee. Voting is secret and taken by ballot. The results are recorded before a notary (section 12, subsections (s)-(8)). T H E POWERS OF THE JOINT ORGANISATIONS The system of ascending gradation in the corporative institutions is accompanied by a similar gradation in their powers. Thus the working of the primary bodies, the local and inter-local joint committees, is under the control and jurisdiction of the higher organisations — the mixed commission, the Delegate Commission of Corporation Councils, and the Ministry of Labour. The powers of the joint organisations are held by virtue of their twofold function : on the one hand, that of regulation, by which they are responsible for governing conditions of work, and, on the other, their advisory function, by which they must advise the Government on all questions of social and economic policy. The Function of Regulation In performing their duties in this field, the joint committees are responsible for : (1) determining for the respective trade or occupation, or groups of trades and occupations, the conditions for the regulation of work (remuneration, hours of work, rest periods) and generally the conditions which may serve as a basis for contracts of employment, and imposing suitable penalties on persons contravening their decisions; (2) preventing industrial disputes and trying to settle them if they arise ; (3) adjusting individual or collective differences between employers and workers, submitted to them by the parties ; organising labour exchanges with a view to finding work for the unemployed at any time. For this purpose they (4) SPAIN (5) 255 are to keep an occupational register of employers and workers in their particular branch of industry living in the locality, and they may issue certificates proving the inclusion of such employers and workers in the register ; carrying out any other social function which may be beneficial to the occupation concerned (section 17). The mixed commissions are competent in their respective spheres to consider, for the purpose of approving and giving effect to the same, all decisions of the joint committees of their group relating to the regulation of work, hours of work, rest periods, termination of employment, and other conditions serving as a basis for contracts of employment. They also deal with infringements of these decisions and cases of non-observance, and impose suitable penalties, which may only be economic, on proof of infringement, even without the application of one of the parties concerned, and see to it that the penalties are carried out. They must further endeavour to secure the amicable settlement of disputes and differences between employers and workers, and give effect to conciliation awards which the parties have agreed to accept. Finally, it is the duty of the mixed commissions to establish or support institutions for technical and vocational education, and for the protection or welfare of the workers, to carry out investigations of a social character contributing to this work of education and social progress, and to publish the results. When the mixed committees engage in this work of education and propaganda, section 23 provides that, with a view to co-ordinating the action taken in different fields, and for the purpose of the inspection which must always lie with the Government, the Ministry of Labour will define the supervisory powers to be conferred in each case on the regional authorities, so that these may direct the activity of the commissions in agreement with the latter (sections 21 and 23). It is the function of the corporation councils : (1) as a higher joint authority to hear all claims that may arise in regard to decisions of a general character, and as such affecting the whole industry or an important branch of the industry ; (2) to determine the conditions for the regulation of work in the case of rules or contracts that may be binding upon 256 FREEDOM OF ASSOCIATION (3) (4) occupational groups of more than one locality or district, subject in such cases to appeal to the Ministry of labour, which decides after hearing the Delegate Commission; to hear and decide appeals from decisions of local or interlocal joint committees, and to endeavour to settle disputes which are within their competence, or which the local or inter-local committees have failed to settle; to adjust disputes between joint committees of different localities in the same trade, and to lay down general principles for the settlement of disputes which may be occasioned by unemployment within the branches of industry subject to their jurisdiction, for which purpose the employment exchanges and the committees must furnish the Council with the necessary information (section 32, subsections (1), (2), (3), and (8)). Advisory Function By virtue of this second function the joint organisations have the following powers. The inter-local joint committees may propose to the Government the adoption of the technical and occupational measures they consider necessary for the life and growth of their industry (section 18). The mixed commissions, besides watching over the observance of general regulations concerning the organisation of work in their respective trades and occupations, also recommend to the public authorities the reforms and measures they consider expedient (section 2i, subsection (3)). The corporation councils are responsible : (1) subject to the approval of the Ministry of Labour after hearing the Delegate Commission of Corporation Councils, for holding congresses with a view to promoting the progress of the industry or branch of industry concerned ; (2) for providing the Government with information on questions relating to technical and vocational education, and to all social measures capable of being carried out in each industry by direct collaboration between employers and workers ; for working for the intensification of corporative activity and of the joint action of the various interests represented, (3) SPAIN (4) (5) 257 by encouraging social welfare institutions among their members ; for making an official collection, subject to the previous approval of a Royal Order of the Ministry of Labour, of the provisions in force in the branches of industry within their jurisdiction in virtue of decisions of joint committees, mixed commissions and the council itself ; for bringing to the knowledge of the Government all such social facts as may contribute to the formation of a body of experience likely to be of service for the development and guidance of legislation (section 32, subsections (4), (5), (6), (7), and (9)). The Government's principal advisory body is the Delegate Commission of Corporation Councils, which acts as a direct advisory organ in the Ministry of Labour in all questions relating to the corporations and affecting both workers and employers, in which the Ministry decides it shall be heard. The Ministry is bound to consult it whenever there is a question of amending the Decrees on corporative organisation, and it may itself propose to the Ministry the changes it considers expedient, in view of the experience gained in the administration of the Decree. All that has been possible here is to enumerate the powers conferred on the joint organisations by the Legislative Decree. At the present time, when the corporative structure is still in process of being formed, all comment on the probable effect of its provisions would be premature. It seems, moreover, that the object of the legislature has been to draw up a simple general programme of work for the organisations, rather than provide a, so to speak, anticipated solution of problems which will not appear with sufficient distinctness until the new system is actually in operation. However this may be, the Decree has already defined the procedure by which the joint organisations exercise their powers of regulation and jurisdiction. T H E WORKING OF THE CORPORATIVE SYSTEM The joint committees, in the first instance, and the mixed commissions, in the second, are genuine institutions for the regulation of conditions of work. The higher joint bodies, for the matter of that, like the Government, intervene only for the purpose of supervising and, if need be, revising the decisions taken by the Freedom of Association 17 258 FREEDOM OF ASSOCIATION joint committees and the mixed commissions. In order to obtain some idea of the working of the corporative system, it will therefore be necessary to study the procedure followed, first by the joint committees, and then by the mixed commissions in taking their decisions, how these decisions may be revised or annulled, and finally how they are carried out. The Decisions of the Joint Committees According to section 41, the decisions of the local and inter-local joint committees are taken by an absolute majority of the votes of employers and workers at the meetings held on a first convocation, and by an absolute majority of the members present at the meetings held on a second convocation. When a question is put to the vote at an ordinary meeting the vote is not valid unless the number of employers and workers is equal. In the meetings held on a second convocation and in extraordinary meetings, only the questions mentioned in the convocation may be discussed. The chairman has not a casting vote except in case of equality on a second vote, his functions being in other cases limited to conciliation and endeavours to secure agreement. These provisions show that the Decree in some measure respects the trade autonomy of the two panties. It is only in exceptional cases and on the second vote that the chairman may use his vote to influence the decision to be taken. Before the decisions of the joint committees are valid, they must undergo a twofold supervision. They are first submitted to the next grade of authority, the competent mixed commissions, without which section 42 lays down that they cannot be carried into effect. Secondly, they are submitted to the general supervision of the State authorities, in this case the regional labour delegation, the labour inspectorate, and the Delegate Commission of Corporation Councils, which examine them from the point of view of legality and social and economic expediency. As regards this first point, the check on legality, section 43 provides that if the decision is contrary to regulations in force, or outside the powers of the committee, the regional delegate, if there is one, or the provincial labour inspectorate, must notify the civil Governor and the Ministry of Labour. The Governor has the right to suspend the enforcement of the decision within six days of SPAIN 259 receiving the communication from the regional delegate or the inspector. The joint committee may appeal to the Ministry of Labour through the prescribed channels within ten days, its appeal being transmitted first to the regional delegation or labour inspectorate, which hands it on to the civil Governor, who, within the same period, must transmit it accompanied by a report to the Ministry. If within twenty days the Ministry, having consulted the Delegate Commission. confirms the suspension, the latter is considered final. If not 'confirmed within this period, the decision is held to be valid and final. This check on the legality of the decisions of the joint committees is supplemented by a check of a social and economic nature. Section 43 adds that in the case of decisions which, without infringing legal regulations, yet may, in the opinion of the regional delegate or provincial inspector, prove injurious to the interests of the industry or a branch of the industry, such decision must be brought to the knowledge of the Ministry of Labour, which, after consulting the competent corporative council, takes the decision which it considers best. In urgent cases the Ministry may merely consult the Delegate Commission. The Delegate Commission of Corporation Councils may propose the revision of all decisions of joint committees the enforcement of which might injure the interests of the occupation and industry concerned, owing to new circumstances and subsequent changes in economic conditions. In such cases, before the decision is taken, the local or inter-local joint committee whose decision is at issue must be heard. These provisions show that the State always reserves to itself the power to turn the social and economic policy of the joint committees in the direction it considers best. The decisions of the joint committees are not only subject to the normal check by the authorities. They may also be attacked by way of an appeal lodged by the third parties concerned with the corporation council and, if need be, the Ministry of Labour. According to section 45, an appeal against the decisions of the local and inter-local joint committees may be taken to the competent corporation council, whose awards, if of a general nature or likely to affect a whole industry or branch of industry, may similarly be taken to the Ministry of Labour. Any member of the committee, or any person who can prove his direct interest in the matter, has the right to appeal. Before deciding, the Minister of Labour must consult 2Ó0 FREEDOM OF ASSOCIATION the Delegate Commission and the Permanent Committee of the Labour Council. If the decisions of the joint committee have become final, that is to say, if they have not been amended, suspended or revised, either owing to the supervision of the higher corporative authorities and the Ministry of Labour, or in consequence of appeal, they are binding on all concerned. This follows from section 44 which imposes the following penalties for infringement. A joint committee which has to consider an infringement of one of its decisions must summon the offender to appear before it within three days. It decides on the. case, and may impose the penalties established by the Act of 4 July 191S, which may be increased in the case of a repeated offence, subject to a maximun? fine of a thousand pesetas. There are, however, two ways of appealing against these sentences. In the first place the economic penalty pronounced in the manner defined by the Legislative Decree may be attacked before a full meeting of the local or inter-local committee imposing the penalty, provided that the sum does not exceed 100 pesetas; in all cases the person concerned must be heard. If the sum exceeds this figure and is under the maximum allowed (i,ooo pesetas), the appeal must be made within ten days to the Delegate Commission of the Corporation Councils, whose decision is final. If all forms of remedy have been exhausted and the offender refuses to pay within a week, the committee may request the competent judge of first instance to enforce payment. The Decisions of the Mixed Commissions The mixed commissions follow the same procedure as the joint committees in taking their decisions, but the Government has power beforehand to check the manner in which they are taken. For this purpose, section 46 provides that when the rules for each of the mixed commissions are approved, details must be given as to the nature of the decisions and resolutions taken in connection with the component elements ; the transmission of the separate matters to the joint committees and mixed commissions ; the necessary powers for carrying out specific duties ; the rules for their work of conciliation ; and everything connected with their organisation and working within the limits of the powers assigned to them by the Legislative Decree. Within the limits of their territorial scope, already defined, the SPAIN 261 decisions of the commissions are' binding on all the elements they represent, and if not carried out, the commissions may impose the same penalties as the joint committees. The decisions of the mixed commissions, like those of the joint committees, are open to appeal by those concerned. According to section 50, an appeal for revision against decisions of a general nature affecting one or more branches of industry may be taken within five days to the mixed commission which pronounced them, and a further appeal within a fortnight, through the medium of the regional delegate, to the Ministry of Labour, whose decision is final, after having consulted the Delegate Commission of Corporation Councils and the Permanent Committee of the Labour Council. Their decisions are also subject to supervision by the higher corporative institutions and the public authorities. According to section 51, the mixed commissions must communicate their decisions ~ to the regional labour delegation, the inspectorate and the Delegate Commission of Corporation Councils. The carrying into effect of the decisions may be suspended under similar conditions to those provided in the case of the joint committees. Finally, a twofold remedy is provided against the penalties imposed by the mixed commissions. An appeal against decisions concerning fines imposed by the mixed commissions may,be taken within ten days to a full meeting of the competent commission if the fine does not exceed 100 pesetas, in which case the commission decides after having heard the person concerned, should it consider this necessary. If the fine is over 100 pesetas, an appeal may be taken within the same period to the Delegate Commission, whose decision, taken within the same period, is final. If the decision has become final and all other remedies have been exhausted, the mixed commission may apply under the same conditions as joint committees to the judge of first instance in order to have the sentence enforced. The proceeds of fines collected for infringement of the decisions of the joint committees and mixed commissions are retained by these bodies \ 1 The following additional particulars may be given on the revenue of the joint committees and the rights of their members : According to section 53, in exceptional cases the Government may grant the necessary subsidies for the maintenance of the central corporative organisations if the contributions of the joint committees and mixed 2Ó2 FREEDOM OF ASSOCIATION S U S P E N S I O N AND D I S S O L U T I O N O F J O I N T C O M M I T T E E S AND M I X E D C O M M I S S I O N S A n y joint organisation which exceeds its powers under the Decree or endangers the public safety, or in a general way fails to give satisfaction to t h e supervisory authorities may be suspended or dissolved. According to section 55, w h e n a joint .committee or a mixed commission takes decisions which, besides being outside its competence, interfere with public safety a n d lead to disturbance and conflict, suggesting that the attitude of the body is unlawful and disorderly, the Governor of t h e province in which it has its headquarters m a y temporarily suspend t h e committee or commission, his decision with his reasons being transmitted to the Ministry of Labour, which after consulting t h e Delegate Commission of Corporation Councils, either raises t h e suspension or pronounces the dissolution of t h e committee or commission. Administrative penalties m a y be imposed on joint committees : (i) if t h e y commit actions affecting their prestige owing to notorious immorality in t h e exercise of their functions; (ii) when, owing to their negligence and unsatisfactory w o r k i n g , they do not constantly carry o u t their duties, and t h u s seriously injure t h e trade interests entrusted to their care. I n both cases, as soon as the Ministry of L a b o u r or one of its subordinate institutions has been informed of t h e facts, these must be verified as soon as possible, and if the Ministry considers it e x p e d i e n t a n d so orders, t h e services of t h e committee m a y be inspected with a view to t h e final decision to be taken. T h e Ministry of Labour, h a v i n g made the investigations it considers necessary and consulted the Delegate Commission, takes a final decision, and, if it considers it just, orders the dissolution of the committee, leaving it to t h e ordinary courts to fix any penalties. T h e Ministry of Labour has also power to inspect all the central corporative organisations. commissions are inadequate These contributions are fixed in each case when the bodies in question are being set up or their annual budgets are being prepared. The latter must be approved by the Ministry of Labour. Section 54 adds that normally the joint committees will meet outside statutory working hours ; but in any case, a worker who is elected a member of a joint committee has the right to attend any meetings it holds, even during hours of work, in which case he is given a certificate so that he may receive his wages in full. SPAIN 263 These provisions do not define specific offences, and therefore leave the Government and the administrative authorities the widest powers of intervention. It will further be observed that, unlike the Act on associations, the Decree Uiakes no provision for appeal by the joint committees against decision» of the executive authorities to the ordinary courts. If the suppression pure and simple of joint committees, which are public institutions set up compulsorily, were to be final, the result would be to paralyse the working of the system as a whole. The legislature has therefore taken care to provide for the reconstitution of dissolved organisations. According to section 56, whenever a joint committee or mixed commission is dissolved, it must be reconstituted by the holding of fresh elections within a period of ten days. § 3. — The Application and Influence oí the Corporative System F I R S T MEASURES FOR T H E PRACTICAL APPLICATION OF THE LEGISLATIVE DECREE Before the system of Corporative Organisation, whose structure and working have been analysed above, can finally take effect, much preliminary work is needed. With a view to speeding up this part of the work, section 6 of the transitional provisions of the Decree provides for the creation of a Commission consisting of persons of authority in social matters. The advisory powers and the taking of decisions in other than executive matters or questions of joint organisation reserved to the Delegate Commission of Corporation Councils are temporarily assumed by this interim Commission, so that with the technical and administrative assistance of the Ministry of Labour it may carry out the preparatory work of organising the constitution of all the bodies provided for in the Legislative Decree at the earliest possible date. This Commission was set up by the Royal Decree of 4 December 1926, Mr. Angel Diaz Benito being appointed chairman, and Count de Altea, vice-chairman. Its, first meeting was held on 21 December 1926, being presided over by the Minister of Labour, Mr. Aunos, who on this occasion outlined the programme of the Commission in the following terms : The Commission has three objects. * It must undertake active propaganda with a view to making employers' and workers' associations un- 264 FREEDOM OF ASSOCIATION derstand the advantages of the Legislative Decree. It must collaborate in the work of organisation, in agreement with the Ministry of Labour, the local labour offices and the inspectorate ; and finally, in its advisory capacity it must define thè legislative objects of the Decree. I n accordance with this programme the Commission set u p three sections, a propaganda section, a n organisation section, a n d an advisory section. T h e Minister n e x t indicated the rules that m i g h t be followed in setting u p the various bodies. H e said : This work may be carried out successfully either by setting up corporative organisations in accordance with the requests made by the parties concerned, leaving them to take the initiative in some measure, or by taking the different productive areas into account. H e suggested that the two methods m i g h t be combined, " f o r while t h u s giving satisfaction to t h e claims of employers and workers, the organisation will at the same time satisfy the needs of production from the point of view of technique a n d system ". H e added that subject to observance of t h e fundamental principles of t h e Decree, the Government was prepared to carry out a n y alterations suggested b y practice and the actual facts. Mr. L a r g o Caballero, o n behalf of the General Federation of Spanish W o r k e r s , Mr. Junoy, on behalf of the employers' representatives in the Council of State, and Mr. Corrocher, on behalf of t h e Spanish E m p l o y e r s ' Federation, stated their readiness to co-operate in carrying out the programme sketched above by the Minister of Labour. Count de Altea, in- his article on corporative organisation in Spanish industry published in the International Labour Review 1, was able to state t h a t from 1 J a n u a r y to 10 F e b r u a r y 1927, 259 petitions for the constitution of joint committees had already been received from the most diverse industries. Since then t h e n u m b e r of petitions h a s steadily grown. All these facts appear to show, according to Count de Altea, that the reform satisfies a general demand and that all the parties concerned are ready to collaborate in p u t t i n g it into effect 2 . 1 Vol. XV, No. 6, June 1927. See also an account of the regime by Mr. Práxedes ZANCADA, Chief' of the Labour and Social Organisation Section in the Ministry of Labour, in Revista social, Vol. II, No. 4 : " Commentaries al real decreto-ley de organisación corporativa nacional. " 2 SPAIN 265 INFLUENCE OF T H E C O R P O R A T I V E S Y S T E M I t is n o doubt too early to formulate a reasoned judgment on the influence of the system of corporative organisation on the future of Spain. All that can be done here is to note some of the.advantages that the promoters of the reform expect it to yield. I n the first place, they say, t h e new institution will stimulate the spirit of association : The preponderant part assigned to employers' and workers' associations in the election of the members of the joint committees will give these ..institutions an organic and representative character which so far they have lacked. It will also give a vigorous impulse to the spirit of association that is still so insecure in Spain *. Secondly, the corporative system will contribute to the stability of economic a n d social conditions. A s Mr. A u n o s says : Being invested with irrefutable authority, the joint organisations will prove the firm foundation on which the relations between capital and labour will rest. The period of instability and disorder will come to an end. The employer will be able to forecast the future development of his industry without having to make allowance for sudden rises in wages, imposed in periods of agitation and founded only on violence ; through the joint organisations he will be able to adjust wages to labour output and provide for severe discipline in his factories and workshops. The worker will enjoy the certainty that the agreements entered into with his employer through the medium of the joint committee will always be strictly carried out ; his wages will be fixed in accordance with technical criteria, and will have a stability that only industrial depression can disturb, since they will be placed under the protection and guarantee of a public institution and no longer be subject to the arbitrary decisions of an individual. Thirdly, in the question of the regulation of conditions of work t h e new institution will substitute t h e g u a r a n t e e of trade regulation under State supervision for the principle of free individual determination. The compulsory character of the resolutions taken by the joint organisations and guaranteed by the legal control of the State will also be an excellent means of breaking the anti-social idea, so current among us to-day, of free individual determination in the question of the regulation of work 2. 1 Dr. D. A. GALLART : " Los aspectos morales de la solución paritaria. " Revista social, 1927, Vol. II, No. 4. 2 Ibid. 266 FREEDOM OF ASSOCIATION T h e corporative system will also promote the revival of the craft spirit a n d help to form a body of skilled workers a t the head of each occupation. A s the Minister of Labour, Mr. Aunos, says : Their work will affect a selection of values in each corporation. The sympathy between men in the same occupation, both employers and workers, will lead them to feel united in their higher efforts, and the social life of Spain will no longer consist solely of an aggregation of persons without mutual relations, or an amorphous mass of unco-ordinated forces, but of a body of disciplined efforts which will promote steady progress in the realisation of the great destiny of the country. The joint committees will bring together the elite of each occupation, the different trades will no longer be unco-ordinated and separated by ideas and geographical limitations as hitherto. The contact between employers and workers will produce a comprehension of the common end in view and love of the trade. The new organisation will result in that social and economic peace which is necessary for the development of nations. Finally, the upholders of the reform believe that it will awaken the sense of solidarity and social responsibility. Dr. D. A. Gallart maintains that : Those who participate in the work of the joint organisations will rise above the class spirit, and become imbued with the spirit which has led to the formation of these bodies. The workers' representative who discusses a suggestion cannot evade the duty assigned to him of acting as a referee or labour legislator. He will be compelled to take into consideration the effects of this suggestion on production and the advisability of realising it in specific economic conditions. And the employers' representative, when a question of wages is raised, will be bound conscientiously to estimate the cost of living among workers before adopting an opinion on the subject. The objective manner in which questions will be raised, freed from the factors of passion that accompany social conflict, faces each of the members of the organisation with a living problem, towards the solution of which they must contribute so far as they are able. In such circumstances the sentiment for justice dominates all others. Where arbitration is constantly dictating compromises between opposed conceptions in practice, those responsible for such practice find the moral distance between these conceptions becoming shorter. They realise that it is only men they have before them, and nothing human can be foreign to them. Thus, in these minorities of employers and workers, a more comprehensive and cordial spirit will gradually spring up, and they will realise their responsibilities. Without being too optimistic, any impartial observer of social realities must conclude that the policy of joint organisations is an effective means of pacification, and whatever the effects of the new reform, there will be a happy change in the moral atmosphere of Spanish social conditions. T o sum u p , the a u t h o r s of the reform regard it as the starting point of a renaissance not only from the economic and social point of view, but also, and above all, from the moral and political point of view CONCLUSION The Spanish Coiporative Organisation of Industry, like the Italian corporative system, is founded on the principle of State intervention in social relations. As Mr. Aunos, Spanish Minister of Labour, has said, " the State should intervene in all spheres of human activity where questions of collective interest are at issue ". " The State ", he adds, " which by weakness or indolence neglects its function of regulating collective relations and being the supreme judge in social conflicts, by that very fact abdicates its title of Sovereign State. " * This principle, which of corporative legislation, new social, structure. A already been given. It chief characteristics. dominates and explains the whole system must be turned into fact by means of a detailed description of this structure has will therefore be sufficient to recall its The National Corporative Organisation rests on the classification of occupations into twenty-seven corporative groups, the whole of which constitute the national economic activity. On the basis and within the limits of this classification, the Decree organises the representation of trade interests through joint institutions with graduated jurisdiction, as follows : local and inter-local joint committees in the first instance, mixed labour commissions in the second, corporations and corporation councils in the third, and finally, at the head of the structure, the Delegate Commission of Corporation Councils. The joint committees are the " nuclei " of the corporative organisation of industry. Their function is to defend local interests, account being taken of geographical and trade requirements. Each corporative group is represented in each locality or region by as many joint committees as it comprises trades and occupations. 1 Eduardo AUNOS PEREZ : La Organización Corporativa del Trabajo, pp. 55 et seq. 268 FREEDOM OF ASSOCIATION The mixed commissions, whose scope is not limited territorially, are formed by the voluntary association of the joint committees " which from the labour or economic point of view are connected by the homogeneity of their functions ". The corporation councils comprise all the joint committees throughout the country set up for a given branch of industry or commercial activity. The Delegate Commisgion of Corporation Councils acts, on the one hand, as a link between the different corporation councils and, on the other, connects up the corporative organisation with the administrative services of the State. Faced with the alternative of founding this system on the existing trade associations or of creating an altogether new organisation, the legislature chose the middle path. It combined the system of free and independent organisation with that of organisation by authority. The free associations of employers and workers are called on to elect their respective representatives in the joint committees, which in turn elect their delegates to the higher corporative institutions. Thus, instead of following the Italian precedent, the Spanish legislature, by associating the trade associations with the new corporative system, does not make their participation depend on previous revision of their legal status ; but once the corporative bodies have been formed they are no longer considered as trade organisations of a higher grade, but definitely as public institutions with official functions. In the process of creating the corporative organisation two stages may be distinguished, a trade union stage which is governed by private law, and a corporative stage which is entirely subject to public law. In examining the trade union stage, a first question arises, that of the conditions for obtaining electoral capacity. The answer to this question in the Decree is that the trade associations must in the first place be included in the trade register. Secondly, when the various committees are elected they must comply with the rule as to occupational and territorial delimitation ; in other words, only the members of an association belonging to a given occupation and living in a given locality may take part in electing the committees which are to represent them officially. This statutory condition will certainly affect the very structure of the trade organisations. These, being naturally anxious to direct the elections, will find it to their interest to divide up their membership into as SPAIN 269 many occupations and territorial sections as there are joint committees. Similarly, the higher grade of trade associations will no doubt adapt their strucfure to the field of activity of the higher grade of corporative institutions. Thus, side by side with the official system, there will be a free system reproducing its structure feature by feature. Finally, a third and fundamental condition is that if a trade association is to have electoral capacity, it must be lawfully constituted. This means that all existing associations do not necessarily enjoy such capacity, even if they satisfy the two previous conditions. Full importance is thus attached to the legal status of associations as described in Chapter II. This rests in the first place on the proclamation of the principle of freedom of association contained in Article 13 of the Constitution ; but this principle, far from being absolute, applies only in accordance with the regulations contained in the Associations Act of 30 June 1887, completed by the Legislative Decree of 10 March 1923. The Barcelona trade associations have a right to choose between the status conferred under the general law on associations, and that conferred under the Decree of 3 November 1922, applying only to the province of Barcelona. Both the Associations Act and the Barcelona Decree make the functions and working of trade associations subject to severe and permanent supervision by the public authorities. Moreover, associations which do not comply with these laws and engage in activitiesconsidered unlawful by the courts incur the penalty of suspension and dissolution. In this way the General Confederation of Labour, which at one time comprised a majority of the organised workers in Spain, has had many of its unions judged unlawful and dissolved. At present the following trade organisations constitute the corporative electorate : the General Confederation of Spanish Workers, the Federation of Free Trade Unions, and the National Federation of Catholic Trade Unions. As the Decree fixed a period of grace within which associations may satisfy the conditions of the Act, the number of these lawfully constituted organisations will no doubt be increased in future by the organisations of " non-unionists ", i.e. of all persons who on grounds of principle refuse to belong to one of the existing bodies (this applies, for instance, to the former members of the General Confederation of Labour), but who do not wish to be excluded from the corporative system. 270 FREEDOM OF ASSOCIATION Another question is whether the breaking up of the electorate into several groups of different views may not compromise unity in the protection of the interests of the workers, in particular in the corporative institutions. It is no doubt to prevent this risk that the legislature preferred the system of majority vote to that of election by proportional representation. For, supposing the different trade union groups failed to agree, the most powerful organisation would, by its numerical preponderance, in fact exert a decisive influence on the composition of the corporative institutions, and thus ensure a united front for the defence of the trade interests of wage earners. The function of the trade associations ceases with the election of their members to the joint committees. Once constituted, the corporation re-absorbs, judicially speaking, the trade association. It will be remembered that under the Decree on corporative organisation the corporative bodies are public institutions whose essential but not sole purpose is to regulate the activities of the occupation or group of occupations for which they are competent. In his commentary on the Legislative Decree, the Minister of Labour also describes them as " public administrative bodies ", differing only in origin from other administrative services. The joint committees, he adds, are part of the graduated administrative system, and through the mixed commissions and corporation councils are connected, by the Delegate Commission of Corporation Councils with the Ministry of Labour, which is the supreme authority in the corporative system. It is this idea of " State administrative bodies " and " public institutions " which, according to its authors, explains the fundamental part played by the State in the constitution, composition and working of the corporative institutions, and the very wide trade powers conferred by the Decree on these institutions. The initiative in constituting the joint committees is in fact not taken by those concerned, but by the Ministry of Labour. Secondly, and this is a corollary of the foregoing principle, the corporative bodies are not voluntary institutions set up to meet temporary requirements, but compulsory and permanent institutions. No doubt the Legislative Decree requires the trade associations to collaborate in their constitution by electing their respective representatives to the various corporative bodies ; but it does not go so far as to subordinate the creation of the committees to such collaboration. Section 16 provides that when a local or inter-local joint committee, created by the Ministry of Labour, is unable to work owing to the systematic SPAIN 27I and unjustified refusal of one of the parties concerned to appoint its representatives, the Ministry may appoint them ex officio. The Decree contains no regulations as to the organisation of the internal affairs of the corporative institutions. It intervenes on one point, however, for like the Italian Act it provides for the fixing, by special regulations to be adopted when the joint committees are formed, of a compulsory contribution for all members of the occupation represented by the committee. It is similarly compulsory to employ the sums thus obtained for the social measures it is the duty of the committee to undertake. The State similarly intervenes in the composition of the corporative bodies. Leaving technical elements, the secretariat, experts, etc., out of account, who can act only in an advisory capacity, its composition admittedly rests on the joint representation of those concerned, employers and workers. But the chairman is not a third party chosen by common agreement between the parties, but a direct representative of the central authorities. It is the Ministry of Labour which, by Royal Decree, designates the chairman and first vice-chairman of the joint, committees, the mixed commissions, the corporation councils, and the Delegate Commission of Corporation Councils. Moreover, two other direct representatives of the authorities belong ex officio to ' the Delegate Commission, namely, the Director-General of Labour and the Factory Inspector-General. In this connection, the Minister of Labour describes the Delegate Commission of Corporation Councils as the synthesis of all organised occupations. In its capacity .as a direct advisory body in the Ministry, it is solely official in character, for which reason the principle of joint representation is in some measure sacrificed, so that the State may be more fully represented \In the working of the corporative institutions the State intervenes even more directly than in their constitution and composition. It may be said that their whole activity is exercised under the direct supervision of the State. This is the object of the intervention of the representative of authority, i.e. the chairman, in the discussions. The presence of the chairman in the various bodies of the corporative system, says the Minister of Labour, reminds the parties that above 1 Cf. AUNOS, op. cit. p . 57. 272 FREEDOM OF ASSOCIATION the class aspirations of employers and workers there are the necessities imposed by collective interests and national expediency *. The chairman intervenes in the discussion not merely as a conciliator but also in the capacity of arbitrator and judge. When a question, submitted to a corporative body for decision, is discussed for the first time, he acts merely as conciliator and intervenes to secure agreement ; but if the parties fail to agree, it is he who settles the matter by his casting vote. And even if the parties agree on decisions, which in his opinion are likely to injure collective interests, he may ask for their suspension, revision or cancellation through the medium of the regional labour delegate. The chairman, too, is responsible for seeing to it that the decisions taken are carried out, interpreting them, and presiding over the corporative body when it sits as a tribunal to judge infringements. In brief, the State, through the medium of the chairman, compels the parties to agree, for it is only when they are in agreement that they can. actually exercise the power of decision. If, on the contrary, they refuse to compromise, the joint committees are reduced to acting merely as bodies to be consulted by the representative of the Ministry of Labour, who alone decides. If understood on these lines, the corporative system, in the opinion of its authors, offers sufficient guarantee of stability for the State to be able to use it as a foundation for its work of reorganising the social and economic life of the national community. The aim of the State is twofold : the first, which can at once be achieved, is the regulation of conditions of work ; the second, which depends on the achievement of the first and is therefore more remote, is the economic and social reform of the State. For the first of these the Legislative Decree has already laid down rules ; for the second it merely organises the permanent system of consulting the corporative institutions. The result is that these have two sets of functions, an advisory function and a function ot regulation. In exercising their advisory function, the joint committees, the mixed commissions, the corporation councils, and, above all, the Delegate Commission of Corporation Councils, all within the field of their respective competences, must notify the Government of all social facts which may help to direct its social and economic policy. Among the functions of regulation, a distinction may be made 1 Ibid., pp. 63 et seq. SPAIN 2 73 between those which are independent, those of limited independence, and those which are official. The independent functions of the corporative institutions, in thç. exercise of which the joint committees are not subject to special supervision by the public authorities, relate to the organisation of social work, measures for social assistance, thrift, mutual aid, cooperation, and in fact all the activities that may be summed up under the head of social solidarity. In this connection it may well be asked — and the same question arises in respect of all the functions of the joint committees — whether the free trade unions will still have the right to develop any similar institution they have themselves set up in the past. Considering that the activities in question are free and altogether unofficial, the corporative organisations could hardly claim a monopoly of trade union activities of this kind. In actual fact, however, developments may be different. It is to be expected that once the corporative system has been definitely set up and provided with substantial funds, it will be better equipped than the trade associations for the satisfactory organisation of such work. The function of limited independence exercised by the corporative bodies under State supervision relate principally to the preparation of the occupational register, the organisation of employment exchanges, and corporative propaganda. The Decree, rather than entrust to the trade associations the duty of preparing the occupational register, requires the joint committees themselves to draw up " registers of trades and occupations ". This they do, under Government supervision and subject to its subsequent approval. It was thought that it would be dangerous to leave such delicate questions as those of inclusion in or exclusion from the census to the sole decision of the corporative authorities. Excluded persons are therefore given the right to appeal to the Ministry, which decides in the last instance. The compilation of the occupational register, which will make it possible to determine exactly the requirements of the labour market, will also, it is hoped, make it possible to organise the employment exchange system on a rational and also national basis. The question of finding employment for wage-earners, says Mr. Aunos, will no longer be left to the arbitrary decision of employers, but will be considered as a public function to be assumed by the joint committees representing all members of the trade. Freedom of Association IS 274 FREEDOM OF ASSOCIATION In their activities the employment exchanges, attached to the corporative institutions and responsible in particular for placing workers in employment, must use only definitely trade criteria. They must, for instance, take into consideration length of service, so that workers of long standing may be occupied in the trade of which they have become masters ; quality of output, so that by degrees a progressive selection of a body of highly skilled workers in each trade may take place ; and finally, family responsibilities \ Thus, in the important question of finding employment for labour, the Spanish Decree is guided solely by trade and social considerations, irrespective of the trade union and political position of the unemployed. On the other hand, the Decree displays the obvious desire — a constant preoccupation in the corporative system — of creating a solid nucleus m each trade, and even in each particular occupation. Finally, the corporative bodies are responsible for organising propaganda so as to make the principles of the new legislation known. In order that the efforts made in this field may be co-ordinated, the Minister of Labour advocates setting up special committees in each regional labour delegation, to form what may be described as craft universities, grouping all the specialists in the joint committees and mixed commissions of the region concerned. In exercising the official functions the State, which acts through the chairman and other representatives of authority whose duties have already been described, has an absolutely preponderating influence. The principal duty of the corporative bodies under this head is that of establishing collective labour agreements. The Decree merely affirms the competence of the corporative institutions either to conclude agreements or to settle collective differences, without in any way defining the methods to be used. According to section 17, it is the duty of the local and inter-local joint committees— to determine for each trade or occupation, or group of trades and occupations, the conditions for the regulation of work : remuneration, hours of work, rest periods, and generally the conditions which may ser~ve as a basis for contracts of employment, and to impose suitable penalties on persons contravening their decisions. This principle serves, however, to throw light on the mam features of the Spanish theory of the collective agreement, at least 1 Ibid., pp. 58 et seq. SPAIN 275 so far as the fundamental problems of the capacity to conclude agreements, their field of application, their interpretation, and penalties are concerned Who may conclude agreements ? Or, more exactly, may the trade associations be contracting parties ? The Decree does not deal with this question expressly, but it follows from it implicitly that this privilege is reserved for the corporative institutions alone, to the exclusion of all other persons or groups, in particular trade associations. Similarly, the corporative institution is alone responsible for seeing to it that the agreement is carried out, through the special staff of inspectors appointed for this purpose. To whom do collective agreements apply ? The necessary corollary to the exclusive power given to the corporative institutions to conclude agreements is that collective agreements apply to all third parties represented by these bodies. Thus an agreement will apply to a given undertaking or group of undertakings if effected by a local or inter-local joint committee, to an occupation or branch of industry if established by a mixed commission, and to all the members of an occupation throughout the country if concluded by a corporation council. Which authority has the duty of settling collective disputes ? The reply of the Decree is in substance that all disputes arising out of the application of agreements, whether judicial differences as to 0 the interpretation of the terms of the agreement, or economic disputes for the modification of collective agreements or the establishment of new agreements, are within the competence of the corporative institutions responsible for their conclusion. Corporative bodies may ex officio consider all disputes and, if conciliation fails, institute judicial proceedings and impose penalties, which, subject to appeal to and revision by the higher corporative authorities, are directly enforceable in the same way as those imposed by the ordinary courts. In this connection it should be emphasised that the judicial power in the Spanish system is not in the hands of an authority outside the organisation, a conciliation board or the ordinary courts, as, for instance, in the Italian system, but by the corporative body which actually concluded the agreement. As this power of general jurisdiction applying to all individual or collective disputes is thus conferred on the corporative institutions, does it imply the abolition of the right to strike established by the Act of 27 April 1909 ? Here again the Decree contains no explicit 276 FREEDOM OF ASSOCIATION provisions. For the present, therefore, strikers will no doubt incur only the economic penalties that the corporative institutions may impose for the infringement of their decisions. As a matter of fact, in the field of the regulation of conditions of work, the corporative institutions have both legislative and judicial powers ; legislative powers, because, within the limits of their competence, they impose regulations binding on all the members of an occupation (it is wrong to describe an agreement established by a joint committee as a contract, for it has all the characteristics of a trade regulation or rather of a trade act) ; judicial, because they have the same right as the ordinary courts to impose penalties for infringement of the agreement. It was no doubt with this twofold function in mind that the Minister of labour compared the corporative organisation with a new power in the State, " the power of work ", responsible for creating a new law, " corporative law ". It is hoped that this collective and compulsory regulation of conditions of work will first of all lead to the establishment of minimum conditions for each occupation and region, minimum wages, minimum hours of work, holidays, etc. These minimum conditions, established by the joint committees and mixed commissions, will serve as the basis for national collective agreements concluded by the corporation councils. The body of such agreements and the decisions taken by the corporative organisations in their capacity as labour, courts will, adds the Minister of Labour, constitute a genuine National Code for each trade, and these codes will together form a new Labour Code. Such, in outline, is the progress made towards the new system of corporative organisation. For the present the organisation is still in the state of anticipation, for, although active progress is being made with the formation of the joint committees, the higher authorities, the mixed commissions, corporation councils, and the Delegate Commission of Corporation Councils, whose intervention is indispensable for the working of the system, still remain to be formed. Experience alone will reveal if the future will bring practical results to show for this important theoretical work of construction. BIBLIOGRAPHY í. — PRINCIPAL LEGISLATIVE T E X T S MENTIONED Agricultural Associations Act of 28 January 1906 on agricultural associations. Assembly (Right of) Acts of 22 October 1820, 1 November 1822,16 June 1864, 2 January 1877,. and 15 June 1880 containing regulations on the right of assembly. Association (Right of) Legislative Decree of 20 November 1868 on public associations. Act of 30 June 1887 on the right of association. [Legislative Series, 1923. s p . 2.) 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Amended Legislative Decree of 18 June 1927 altering sections n , 13, 15 > 20, 30, 34, and the second transitional section of the Legislative Decree of 26 November 1926 on National Corporative Organisation. {Legislative Series, 1927, Sp. 2, to appear shortly.) National Economic Council Royal Decree of 8 March 1924 setting up the National Economic Council. Public Officials (Right of Association of) Act of 22 July 1918 and administrative regulations of 7 September 1918 on the association of public officials. Right to Work Royal Orders òf 5 June 1783, 6 May 1790, arid 1 March 1798 ; Decrees of 8 June 1813 and 20 January 1834 ; Royal Order of 30 July 1835 ; a n ( î Decree of 6 December 1836 on the right to work. SPAIN 279 Social College Royal Decree of 16 August 1925 setting up the Social College. Strikes and Lockouts. — Combinations. — Recognition of Associations by Employers Act of 27 April 1909 on strikes and lockouts, and combinations. 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Publona,icatiinonpartof ictulhaer MithexedAnales LabouruntCommi sionandfortheComme rce irSodai Barcel i l 1925 Revista sincePubl1926.ications of the Institute of Social Reform. Publications of the Ministry of Labour, Commerce and Industry. PORTUGAL CHAPTER I HISTORY OF THE TRADE UNION MOVEMENT AND OF TRADE UNION LEGISLATION § 1. — The Trade Union Movement The promulgation of the Decree of 7 May 1834, abolishing trade corporations and proclaiming freedom of labour and industry, marked the end of a social system based on compulsion, and introduced an era of free industrial organisation. True, a few of the former craft fraternities, although deprived of their privileges, continued to exist for some time and maintained the traditional forms of composition and structure. But efforts were soon made to bring these societies into line with new requirements. The first real trade association, the Artistes' Society of Lfisbon, dates back to 1839. Some ten years later, in 1850, the Workers' Association was formed under the influence of the Socialist ideas of 1848, this body being transformed some years later into the Society for the Protection of the Working Classes. This movement, which was the harbinger of new ideas, did not meet with the support necessary for its development. At that period, the national economic system, dominated as it was by small-scale industry, did not exactly lend itself to a trade union movement of wide expansion. In most cases, the trade associations continued to adopt the traditional structure of joint societies and kept strictly from politics. It was only in 1872 that a group of Socialist leaders laid the foundations of the workers' trade union movement in its modern form. That year saw the foundation of the Workers' Brotherhood, which was replaced 286 FREEDOM OF ASSOCIATION during the following year by an organisation of national character, the Workers' Association of Portugal. The existing mutual-aid societies, which had gradually transformed themselves into workers' associations by excluding the employers' element, also came under the influences of the Socialist Party, and subsequently shared its vicissitudes. Thus it was that the split which took place in 1890 in the Socialist political movement, resulted in dividing the trade union movement into two factions, namely, the Workers' Association, and the National Confederation of Class Associations, replaced some little time afterwards by the Workers' Federation. The situation changed when the Anarchist elements began to take an active part in the trade union movement. At a workers' congress, held on 4 July 1909, which was convened by the Workers' Federations of Iyisbon and Oporto, and attended by four Socialist organisations and about thirty occupational and co-operative associations, the Anarchists brought up the question of the independence of the trade union movement from the Socialist Political Party . The congress decided against a separation of the two tendencies. The supporters of independence for the trade union movement did not, however, accept this rebuff, and convened a new congress on 5 September 1909, to which only the workers' trade associations and co-operative societies were summoned. The invitation was accepted by thirty-one workers' associations and several co-operative societies. This time, the motion advocating autonomy for the trade union movement was adopted by twenty-one votes to one, with two abstentions. This decision, while being a victory for the supporters of autonomy, also denoted the triumph of the revolutionary Anarchist elements over the social reformist party. An executive committee was appointed by the congress to co-ordinate and direct the work of the independent trade unions. The new organisations rapidly gained ground, both in industrial and agricultural circles, and the second congress, held in 1911, was attended by ninety-one unions having a total membership of 35,000 persons. The year. 1913 witnessed the reconciliation of the revolutionary and reformist parties, which had separated at the 1909 congress. The two factions compromised on the following formula : "Tactical reasons are not sufficient to cause a split in the trade union movement, as it is clear that all such questions must be decided by the unions PORTUGAL 287 themselves, and that class co-operation is unavoidable in certain cases. " T h e trade union congress held in Tomar in March 1914, a n d attended by both parties, sealed this agreement a n d restored t r a d e union unity. T h i s congress brought together representatives from 103 unions, three trade federations a n d four joint federations, with a total membership of 90,000. A s a result of t h e agreement arrived at, it was decided to set u p a central trade union organisation, which took the significant n a m e of the National W o r k e r s ' Union (Uniäo Operaría Nacional). T h e new organisation, strengthened in 1917 by the affiliation of the Oporto W o r k e r s ' Federation, soon acquired sufficient strength to treat with the Government on an equal footing. I t s career came to an end, however, in 1919, when it w a s transformed, doubtless out of s y m p a t h y with the Spanish revolutionary movement, into a General Confederation of Labour (Confederaçao General do Trabalho). According to its statutory rules, t h e General Confederation of Labour, as sole representative of the working class forces of Portugal, has the following objects : (1) To unite on a federal and autonomous basis all the wage earners of the country, with the object of protecting their economic, social and occupational interests ; (2) To develop, irrespective of all political and religious doctrines, the means of action of the organised workers, with the object of promoting measures for the abolition of the capitalist system and taking possession of the means of production ; (3) To maintain the closest relations with the central trade union organisations in other countries. T h e General Confederation of Labour joined the International W o r k e r s ' Association of Berlin. I n 1920 it included 17 local unions, 19 industrial federations, 3 national trade unions, 3 regional t r a d e unions, and 365 trade associations, representing a total of 100,000 to 120,000 members. F r o m that time, however, its strength declined as a result of party quarrels. T h e movement broke u p into four groups including the Anarchists, the most numerous, the Communists, a n e u t r a l group, and the reformists. T h e membership fell to roughly 20,000. T h e General Confederation of L a b o u r was recently dissolved by the military dictatorship. I t should be added t h a t during t h e last twenty years, Catholic circles have been promoting a ChristianSocialist trade union movement, which, however, does not appear tohave played an important part in the trade union life of Portugal. 288 FREEDOM OF ASSOCIATION T h e associations formed by t h e employers for the protection of their interests are grouped, like the workers' organisations, under a central body called the Portuguese E m p l o y e r s ' Confederation (Confederaçâo patronal Portuguesa). § 2. — T r a d e Union Legislation T H E R I G H T O F C O M B I N A T I O N AND S T R I K E T h e proclamation of freedom of labour by the Decree of 7 May 1834 included in Portugal, as in all other countries, the prohibition of t h e right of combination a n d strike. T h i s prohibition was definitely sanctioned b y section 277 of t h e Portuguese P e n a l Code of 10 December 1852, in t h e following terms : Imprisonment of from one to six months, or a fine of from 5,000 to 200,000 reis shall be imposed on : (1) all combinations of employers of labour which attempt to force down wages abusively, and (2) all combinations of wage earners intended to suspend, prevent or raise the cost of labour in any manner whatever. Section 277 was temporarily suspended by a Decree issued by the Revolutionary Government on 6 December 1910. By section 1 of this Decree, both workers and employers were granted the right t o combine with a view to a simultaneous stoppage of work. Peaceful picketing a n d all orderly action taken on behalf of combinations and strikes were similarly sanctioned. The manifestations of legally constituted associations (says section 8) which do not infringe the provisions of the laws governing public assemblies, and which are intended solely to promote, maintain, or end a combination are quite legal. Subject to the observance of the provisions of the present Decree (adds section 9), all propaganda work undertaken by the workers' and employers' trade associations, in order to prepare, maintain or end a combination or strike, are similarly sanctioned. On the other h a n d , the Decree prohibited the use of illegal measures of persuasion a n d all disturbance of the public peace. T h u s section 2 punishes with imprisonment up to six months all persons w h o employ violence, threats or improper pressure in order to set u p , maintain or prevent a combination. Section 3 provides for imprisonment up to three m o n t h s for all persons who, in the case of a combination or strike, trouble public order or contravene police regulations. 289 PORTUGAL The Decree forbade State officials and employees to strike, and required the public utility services to give notice of any proposed strike. Officials employed by the State or by the State Departments (states section 11) are forbidden to combine for the purposes of a strike, under penalty of dismissal or suspension. As regards strikes and lock-outs in services of interest to the public, section 4 obliged the promoters of such movements to notify the authorities twelve days in advance when the electricity, gas and water services, or other services of first necessity, hospitals and asylums were concerned, and eight days in advance when maritime, land or inland navigation transport undertakings were affected. In the above-mentioned cases, the strike leaders were required to show, by a statement submitted to the authorities, the reasons underlying the dispute and the objects of the strikers. A similar statement had to be submitted by the party calling the strike to the party affected by it. All cases of non-observance of these regulations were liable to be prosecuted, on the ground of the offence of " refusal of obedience " provided for under section 188 of the Penal Code. The penalties imposed in cases of " refusal of obedience " were likewise applicable to employers and workers who, having once accepted arbitration, declined to carry out the obligations which they had voluntarily undertaken r . This Decree, which had to be submitted for approval to the National Assembly, never received force of law. Section 277 of the Penal Code, whereby combinations and strikes are formally prohibited, still remains in force at the present day. FREEDOM OF ASSOCIATION During the first half of the nineteenth century the right to associate was entirely dependent on administrative practice, and as a general rule it. was prohibited. When, however, the influence of the associations which had nevertheless sprung up began to be felt in social and political circles, the question of the regulation of freedom of association arose, first from the standpoint of the right to associate in general, and subsequently from that of the right to associate for trade purposes. The 1 Cf. text of the Legislative Decree in Diario da Governo, 1910, No. 53, p. 685. Freedom of Association IB 2Ç0 FREEDOM OF ASSOCIATION general right of association was first recognised by the Civil Code in 1857, which included among the fundamental prerogatives of the citizen, the right to " combine their means and efforts for all purposes which do not prejudice the rights of others or those of society as a whole ". This formula appears to have been meant to apply only to industrial and commercial societies with economic objects, and not to associations working without profit. The Decree issued by the Dictatorship on 15 July 1870 was more precise, and extended freedom of association to all citizens without making it dependent on preliminary authorisation. This Decree, however, never became law and remained a dead letter. The right to associate without let or hindrance was definitely established only by the Act of 14 February 1907, which allows all citizens in full possession of their civil rights to form associations without previous notice and without having to have their statutory rules approved by the authorities, except when this is required by special laws, and provided that the aims of the associations are not in contradiction to the law. Two reservations are thus seen to limit freedom of association : one relating to special legislation on associations, the other to associations formed for illegal purposes. Trade associations come under the first reserve. As far back as 2 July 1867, a Decree relating to co-operative and mutual-aid societies, which was completed by the Legislative Decree of 28 February 1891, made the constitution of these societies dependent on the previous approval of their rules and regulations. And even nowadays a number of conditions and restrictions are imposed on the constitution, administration and activities of class associations, in virtue of the Decree of 9 May 1891 relating to trade associations l . All associations, industrial or political, come under the second restriction introduced by the Act of 14 February 1907, that is to say, the provisions of the Penal Code respecting illegal associations and secret societies. The Penal Code, section 282, defines as an illegal association, any association of more than twenty persons, even when such 1 Cf. Chapter II : " The Present Legal Status of Trade Associations ", pp. 292 et seq. PORTUGAL 29I association is divided into sections each having less than twenty members, which meets without obtaining the prior authorisation of the Government or against Government regulations, for the purpose of considering questions of a religious, political, literary or other nature. T h e promoters or officials of such associations are liable to imprisonment of from one to six m o n t h s , and ordinary members. to one m o n t h ' s imprisonment. F u r t h e r m o r e , the Penal Code, s e c tion 283, defines as a secret society, a n y society of which t h e members bind themselves by oath or otherwise, to conceal from t h e public authorities the objects of its meetings and its activities. T h e promoters and organisers of such societies are liable to imprisonment of from two m o n t h s to two years, and ordinary m e m bers to half of this penalty. Section 283 adds that any member of a secret society w h o voluntarily divulges to the authorities the aims and plans of the association will be exempted from these penalties, even when he does n o t give t h e names of t h e other members. Lastly, the principle of freedom of association has been definitely sanctioned in Article 3, paragraph 4, of the Constitution of 7 July 1921, in the following terms : " F r e e d o m of assembly and association is legal. Special laws will define the manner and the conditions in which this liberty may be exercised. " Since, however, the special laws mentioned have not so far been introduced, the regime described above remains in force in all its vigour '. * The right of assembly had been defined by the Act of 26 June 1893, the Decree of 9 December 1897, and the Decree of 24 December 1901'. Although no preliminary authorisation was necessary to hold the assembly, the promoters were required to give the administrative authorities twenty-four hours' written notification of the day, time, place, and objects of the meeting. At present all assemblies, even the general meetings of commercial societies, must be authorised beforehand by the military authorities. CHAPTER 11 THE PRESENT LEGAL STATUS OF TRADE ASSOCIATIONS Subject to the general provisions embodied in Article 3, paragraph 14, of the Constitution, to those of the Act of 14 February 1907 relating to associations, to section 277 of the Penal Code on the offence of combinations and strikes, to sections 282-283 of the Penal Code on illegal associations and secret societies (cf. Chapter I, § 2), the legal status of trade associations is based mainly on the Legislative Decree of 9 May 1891 relating to trade associations, and that of 27 December 1924, relating to trade unions and their federations. At the same time, it should be noted that these two legislative enactments were recently suspended by order of the executive authorities. Since, however, their place has been taken by no fresh legislation, it would seem desirable to include an analysis of them in these pages, as, after all, they portray the most recent tendencies of the special legislation on trade associations enacted in Portugal. These two texts, which are obviously inspired by the French trade union legislation of 1884-1920 * and the Spanish Act on associations of 1872 a define the status of the trade unions from the triple standpoint of their constitution, administration and dissolution. § 1. — Constitution of Trade Associations Trade associations, states section 1 of the Decree of 1891, are associations formed by more than twenty persons exercising the same trade or similar trades, and whose object is the study and protection of their economic, industrial, commercial or agricultural interests. 1 2 Cf. Vol. II of this work : " France ". See above, " Spain ". PORTUGAL 293 BASIC CONDITIONS A legal minimum membership, the observance of the rule of occupational delimitation, the declaration of trade and economic objects, are the three general conditions which must be satisfied by associations in order to come within the scope of the regulations laid down by this Decree. All persons who have attained their majority, whether workers, salaried employees or apprentices, may be members of a trade association, provided they conform, in the choice of an association, to the rules referring to occupational delimitation. Membership of the trade unions is voluntary, and no one may be compelled to join or prevented from withdrawing. This is explicitly laid down in section 6 : Any person is free (states this section) to refrain from membership of a trade association or to cease to be a member. In the latter case, however, or in the case of expulsion in accordance with the statutory rules, such person has no right to the repayment of paid-up contributions. Nevertheless, a person who ceases to' be a member of a trade union, does not thereby forfeit his right to belong to any mutual-aid society, savings tank or co-operative society dependent on such trade union. These regulations are supplemented by a number of special rules referring to membership. In order to join a trade union, minors of sixteen years of age must first of all obtain the permission of their parents or guardians, in accordance with the regulations of common law on this matter. No special restrictions are imposed on foreigners. But, like minors, foreigners may not occupy an administrative position in the union, all such functions being reserved exclusively for Portuguese nationals in full possession of their civil rights. The trade union law referring to civil servants is, however, more controversial. As no legal regulations exist on this subject, the whole matter depends entirely on the practice of the administrative authorities. It should be noted in this connection that in January 1925 the Minister of Labour declared, in reply to a request for recognition submitted to him by the Association of State Employees, that he was prepared to grant official recognition to civil servants* societies, subject to full guarantees being given concerning the right to strike. 294 FRBBDOM OF ASSOCIATION FORMALITIES T h e Decree of 1891 requires trade associations to obtain the approval of their statutory rules as a preliminary condition to their constitution. T r a d e associations, says section 3, may not be formed before their statutory rules have been approved by the Government. Similarly, all a m e n d m e n t s to such rules m u s t be approved beforehand by the Government. T h e Decree defines t h e information which must be contained in the rules, and lays down the procedure to be followed for their approval. T h e statutory rules must contain the following information : (a) The name of the association, its seat and objects. [In order, doubtless, to facilitate the general system of control which the Government exercises on the activities of the trade associations, the Legislative Decree requires each trade union to have a definite civil status. No two associations may have the same name. Again, all documents of the association must bear the seal of the association, as well as the words " workers' association ".] (6) The procedure and conditions of admission for its members, their rights and obligations, the payments which they must meet, and the advantages ensured them. (c) The organisation of the governing board and its powers. (d) The powers of the general assembly, the organisation ana functions of the office bearers of the general assembly, the conditions governing the constitution and working of the assembly and the right to vote, the procedure for amending the statutory rules. (e) The procedure for winding up the association in case of dissolution (section 7). I t follows from what has been life of the trade unions is placed the State \ T h e procedure to be followed of the rules is described as follows said that the whole of the internal under the preliminary control of in connection with the approval in section 8 : A petition for the approval of the rules of a new trade association must be signed by at least three foundation members. This petition must be accompanied by two copies of the rules, of which one must bear the 1 As the grant of recognition depends primarily on the drawing up of the statutory rules submitted for the approval of the Government, the Ministry of Labour has drawn up model rules which define the rights and obligations of the members of a union, the administrative organs of the general assembly, the office bearers of the assembly, etc. (Cf. Legislaçâo relativa a associacöes de classe, modèìo para estatutos-^ Lisbon, Imprensa nacional, 1917) PORTUGAL 295 signature of all the foundation members. The petition and the copies of the rules must be sent to the Ministry of Labour or, against receipt, to the Civil Governor of the district in which the association has its seat. In the latter case the Civil Governor sends the documents in question to the General Labour Directorate. A petition for the approval of amendments to the rules, which must first have been adopted by a general meeting specially convened for the purpose, must bear the signature of the management committee and be accompanied by two copies of the amended rules and a duly certified copy of the minutes of the meeting which adopted them. A list of the persons who voted the amendments and a complete list of the members must also be attached to these documents (section 9). All such applications are submitted to the Ministry of Labour, together with a report from the competent services, which must state : (1) whether the rules contain any provisions contradictory to the Decree and the laws in general, and (2) whether the rules are in order or whether certain amendments must be made in them. Once these formalities have been completed the Government gives its decision. The Decree ratifying the rules is published in the Official Gazette when the association concerned is considered to be legally constituted. § 2. — Activity and Dissolution Even when officially recognised, trade associations remain subject to supervision by the administrative authorities. If an association turns aside from the objects for which it was constituted, says section 12, or does not faithfully observe its rules, or infringes the provisions of the Decree, or does not fulfil the obligations imposed on it by the Government, recognition may be withdrawn. Withdrawal of legal recognition is tantamount to an order of dissolution. It is to be noted, however, that, contrary to the system in force in most countries, the question of the dissolution of a trade association does not come under the jurisdiction of the legal authorities, but of the executive powers. When an association is dissolved, states section 13, the liquidation of its property is compulsory. Liquidation is carried "out on the following lines : when all accounts have been settled, any credit balance remaining is distributed in accordance with the provisions embodied in the rules of the association. When the rules are 206 FREEDOM OF ASSOCIATION silent on this matter, the credit balance is divided among the mutualaid societies of the district in proportion to their membership. To sum up, it may be said that the whole existence of the trade associations from the moment of their constitution, which requires prior authorisation, to that of their dissolution, which may be ordered by the administrative authorities, is dependent on the executive authorities. It was this fact that led the first trade union congress held in 1909 to make a categorical demand for the repeal of the Legislative Decree of 1891, and to claim the application to trade associations of the provisions introduced by the Act of 14 February 1907 relating to associations \ Nor have proposals for the reform of the system been wanting, as, for example, the two Bills put forward since 1914 by Deputy Machado Santos and the Minister Aquilas Gonsalves respectively. The object of these Bills was to simplify formalities connected with the foundation of trade associations, to reduce Government supervision, and to authorise the foundation of alliances and trade union federations. But no legislative force was ever conferred on either Bill. The same fate was reserved for a Bill submitted on 12 October 1923 by the Minister of Labour, which proposed to introduce in trade union legislation " a number of new principles intended to safeguard trade associations against arbitrary executive action, because society as a whole has all to gain by allowing the workers full liberty to organise themselves ". According to this Bill, the recognition of trade associations was. not to depend on Government acceptance of their rules ; recognition could be obtained by submitting two copies of the rules to the municipal or district administrative authorities. In short, the Bill recommended the adoption of the French system, which requires that the rules shall be publicly filed but does not make the constitution and the working of an association dependent on previous authorisation. The only new legal measure referring to trade associations has been the Decree of 27 December 1924, which empowers legally constituted associations to form trade union federations and alliances 1 Cf. C h a p t e r i , § 2, p . 290. PORTUGAL 297 and invests them and their federations and alliances with corporate status. To quote the main provisions of this Decree, all legally constituted trade unions are entitled to group themselves in federations or alliances subject, not to the approval of the Government, but simply to the despatch of duplicate copies of their rules to the Ministry of Labour. One of these copies must be returned within ten days to the senders, with notification of registration. Federations and alliances may not begin activities before receiving this copy. Where any omission has been made in the rules or where the rules are in any way contradictory to the law, the Ministry returns them to the parties concerned, requesting them to make the necessary changes. Once registered, trade union federations and alliances, as well as the primary trade unions, acquire legal status and may, for example, conclude collective agreements. Nevertheless, the Decree of 27 December 1924, although very liberal as regards the constitution of trade union federations and alliances, introduces no changes in the provisions respecting trade associations of the first degree, as laid down by the Decree of 1891. CHAPTER III POSSIBILITIES AND LIMITS OF TRADE UNION ACTION Legally recognised trade associations enjoy a certain number of rights and prerogatives in connection with : (i) the organisation, with or without Government co-operation, of trade union institutions and welfare work, and (2) their functions as legal representatives of their members in the field of civil and industrial law. § 1. — Trade Union Institutions INDEPENDENT INSTITUTIONS According to section 4, subsection 5, of the Legislative Decree of 1891, the trade unions are entitled to promote among their members the organisation of mutual-aid societies and funds and co-operative societies. But although the Decree gave trade associations a free hand to canvass their members with a view to setting up social institutions, it forbade them to form such institutions within their own framework. This prohibition was raised by the Act of 1 August 1899, which authorises the trade associations to create such institutions on condition that they have been in existence for at least one year and that their membership is over 200 in Lisbon and Oporto and 120 in the other provinces of Portugal. At the same time mutual-benefit societies and funds and co-operative societies formed in accordance with the provisions of the Legislative Decree must be completely separate and independent from the workers' union as regards their administration and management. Section 4, subsection 4, of the same Decree further authorises trade unions to organise employment offices for salaried employees, workers and apprentices, subject, however, to thé previous approval of their rules by the Government. PORTUGAL 299 CO-OPERATION W I T H T H E PUBLIC AUTHORITIES Section 4, subsection 6, of the Decree requires trade unions, under the penalty of dissolution, to give their opinion, when requested by the Government, on : (1) the position, conditions and requirements of industry and commerce and the methods most likely to help their development, and (2) the health and safety of the workers. In addition to these advisory powers, the trade unions appoint their representatives to the probiviral courts, industrial accident tribunals and the public labour exchanges. § 2. — Functions under Civil and Industrial Law CIVIL L A W In view of their activities in the field of civil law, trade unions and their federations and alliances are invested with legal personality. They may therefore, in accordance with the provisions of common law on corporate bodies (Civil Code, Book I, Title 3, sections 32-39), exercise all civil rights connected with their legitimate interests. They may, for example, sue or be sued ; they have unlimited right to conclude contracts and to hold and acquire personal property. On the other hand, they may acquire real estate .— subject always to the previous authorisation of the State — only so far as such is necessary for the working of their offices and administrative services. The regulations governing contracts concluded by societies (Civil Code, Book II, Title 2, sections 1250-1280) apply to the. activities of all incorporated associations. INDUSTRIAL LAW 1. Collective agreements. — The Decree of 27 December 1924 categorically authorises trade unions and their federations to conclude collective agreements, but does not define the conditions which such agreements must fulfil. Up to the present no legislation regulating collective agreements has been adopted, although a Bill on this subject was prepared by the Ministry of Labour in 1923. This Bill defined a collective agreement as " an agreement whereby a trade association regulates with an employer or an association of employers the general conditions of labour to which the individual contracts of employment must- conform ". Collective agreements were to cover : (1) employers and workers who had individually given written authorisation to the negotia- 300 FREEDOM OF ASSOCIATION tors to treat in their name ; (2) employers and workers inscribed as members of the contracting trade association at the time of the conclusion of the agreement, unless such persons tendered their resignation within eight days from that date; and (3) all persons who became members of a trade association bound by an agreement after the conclusion of the same. Collective agreements were to be executed in writing and to have a maximum duration of three years. Associations parties to agreements were required to ensure the loyal observance of the provisions and to apply the disciplinary measures provided for in their rules against defaulting members. As this Bill was not adopted, collective labour relations are still regulated solely by the provisions of common law on the individual contract of employment (Civil Code, sections 1391 et seq. and 2393, defining civil responsibility in the case of breach of contract) . 2. The settlement of industrial disputes. — It has been seen (Chapter I, § 2) that according to the terms of section 277 of the Penal Code, combinations and strikes are forbidden \ Nevertheless, this has not prevented strikes from increasing to such an extent that the Government has been moved to set up a system for the conciliation of disputes. In this connection, the Decree of 17 August 1912 provides for the formation of conciliation committees in the more important industrial centres, on the proposal of the Minister of Labour. These bodies are required to adjust individual and collective disputes arising during work, to prevent the outbreak of disputes, and to settle those which arise. Conciliation committees comprise two to five full members and one or two substitute members elected by the employers' association, and an equal number of members and substitute members appointed by the workers' trade unions. Each committee elects a president and a secretary from among its members. The body entitled to elect the workers' and employers' delegates is usually appointed by the workers' and employers' associations affected. Only in the absence of legally constituted trade unions, or if the large majority of the workers do not belong to a union, 1 This prohibition was removed during the short period while the Legislative Decree of 6 December 1910 was in operation. PORTUGAL 3d may the workers and employers concerned choose the members of the conciliation committee. Appeal to a conciliation committee is optional. The penalties, which are exclusively of a moral character, include the publication in the press of the minutes of the meetings and the resolutions adopted. It is to be noted, however, that according to common law, the instigators of strikes and lock-outs are hable to the penal sanctions laid down in section 277 of the Penal Code, and are also responsible before civil law for breaches of contract as defined by section 2393 of the Civil Code. CONCLUSION To sum up, trade unionism in Portugal may be described as the outcome of the co-operative and mutual-aid movements. The movement, which was consolidated only at the beginning of the twentieth century, was influenced by Socialist policy until 1909, and from then until 1914 by Anarchist doctrines. Reconstructed on a basis of political neutrality in 1914 by the foundation of the National Workers' Union, the movement reached the height of its power in the years 1919 and 1920, when the General Confederation of Labour was formed. This body was, however, subsequently undermined by party quarrels, and was finally dissolved some little time ago by order of the administrative authorities. The legal status of trade unionism is defined by Article 3, paragraph 14, of the Constitution, which authorises freedom of association and assembly, and by the Act of 14 February 1907, which defines the conditions attached to this privilege. In virtue of this Act, associations may be freely constituted, provided that the provisions of any special laws referring to them are observed. Now, the right to associate for trade purposes is regulated in a special manner for primary trade unions by the Legislative Decree of 9 May 1891 and for trade union federations by the Act of 24 December 1924. In virtue of these two Acts, the constitution of trade unions is subordinated to previous Government authorisation, which is granted only when it has been shown that the rules of the new associations are in agreement with the provisions laid down by the Legislative Decree of 9 May 1891 and the general legislation of the country. Recognition may be withdrawn by a simple order of the authorities if the rules of association or the general laws of the country are not observed. On the other hand, trade union federations may be formed simply in virtue of the filing of their rules with the Ministry of Labour. PORTUGAL 303 Trades unions and trade union federations are corporate bodies, and as such may conclude collective agreements, organise co-operative societies and employment offices, and take part through their nominees, in the work of conciliation committees, probiviral courts, industrial accident tribunals, and public labour exchanges Trade union action is limited in a general manner by section 277 of the Penal Code relating to combinations and strikes, and sections 282 and 283 relating to legal associations and secret societies. As, however, the Legislative Decrees of g May 1891 and 27 December 1924 have recently been suspended ', the right of association and assembly is at present wholly dependent on special authorisation from the public authorities. 1 See p. 292. BIBLIOGRAPHY I. — O F F I C I A L DOCUMENTS Constituicäo politica da República Portuguesa. Lisboa, 1924. Imprensa Nacional de » Código civil Portugués. (Art. 32 à 39 das pessoas moráis. — Art. 1240 à 1280, Do Contrato de Sociedade. •— Art. 2393, Da responsabilidade proveniente da näo execuçâo de obrigaçôes.) Código penal. (Art. 277, Colligaçâo, grève. — Art. 282 à 283 Associaçôes illicitas e secretas.) Legislacäo relativa a Associaçôes Lisboa. Imprensa Nacional, 1917. de classe. Decreto de 27 de Dec. — Diaro do'Governo, IL Modélo para 27 Dec. 1924, No. 287. — G E N E R A L SOURCES ULRICH, Dr. Ruy. Legislacäo Operaría LIMA, Dr. Adolfo. O contracto de estatutos. Partugueza. Trabalho. GREECE § 1. — Development and Present Position of Trade Associations Since Greece is one of those countries in which industrial development did not begin until the present century, it is only in recent times that the formation of trade associations in the modern sense began. There were, indeed, from the time when Greece won its independence in 1829, earlier attempts at occupational union on the part of Greek workers employed in commercial navigation, agriculture, and small-scale industry. The freedom of association granted in the Constitution of 1864 gave the legal basis for this. The people of modern Greece had also inherited the tradition of the Classical and Byzantine associations of artisans, which had remained unbroken during Venetian and Turkish domination. These associations, however, represented their occupations chiefly by taking part in public and religious ceremonies. The presidents of these corporations were usually persons who did not belong to the working class 1. The first decade of this century, up to about the outbreak of war, gave Greece the beginnings of its social legislation. A succession of Acts, aiming chiefly at the protection of the worker, were followed, on the eve of the war, by Act No. 281 of 21 June4 July 1014 2, by which the right of association in Greece was for the first time subjected to detailed legal regulations. Chapter I I I of this Act dealt with the question of trade associations in particular, and gave the legal basis on which the Greek trade unions, and also the associations of employers, have developed. 1 Cf. E. ANDREADES : Labour Legislation in Greece. " Internatwnul Labour Review, Vol. VI, No. 5, Nov. 1922, p. 718. 2 Bull&tin of the International Labour Office (Basle), Vol. XIV, p. 18. Freedom of Association 20 306 FREEDOM OF ASSOCIATION The Act of 1914 was supplemented and amended in details at various times during the war period (Acts No. 585 of 1914, No. 977 of 1917, Nos. 1205 and 1207 of 1918), and then, in 1920, by the Decree of 15 May, it was consolidated along with all previous legislation. In the same year a new special Act, No. 2151 of 21 March3 April 1920, appeared, dealing with trade associations. In this Act the details of the rights of such associations were developed in various directions. At the same time there appeared the important Act No. 2111 of 11 March 1920, regulating the protection of the liberty to work \ The war hindered the development of the occupational association movement stimulated by the Act of 1914. Nevertheless, in 1918 there were already some 366 organisations of workers, with approximately 79,000 members (out of a total of approximately 150,000 workers). In the same year the Greek Confédération Générale du Travail was founded, including 214 associations, with 65,000 members. With regard to the regional distribution, these associations were to be found chiefly only in the larger towns. In 1919 there were 37 unions (with 12,000 to 13,000 members) in Athens ; 51 (with 16,000 to 17,000 members) in the Piraeus ; 19 (with 6,000 members) in Volo ; 22 (with 22,000 members) in Salonika; 14 (with 2,500 members) in Larissa; and smaller numbers in Patras, Calamata, Corfu, Syra, Heraclion and Mitylene 2 . By 1919 the total number of trade unions had risen to 389, with 86,298 members. At that period, 18.7 per cent, of the membership was made up of tobacco workers, and 18.5 per cent, of transport workers. Political events, particularly the consequences of the GrecoTurkish war, did not fail to leave their traces on the trade union movement. During the disturbed period in 1923 and the extensive strike movement which appeared at the same time, the very existence of the trade associations was in danger. The Revolutionary Resolution No. 20444 of 20 August 1923 3 gave the Government the 1 INTERNATIONAL LABOUR OFFICE : Legislative Series, 1920, Gr. 1 and 2. * E. TSOUDEROS : Le relèvement économique de la Grèce. by Charles GIDE.) Paris, 1919. 3 Legislative Series, 1923, Gr. 4 (Preface GREECE 307 power, " in deviation from the provisions of Article n of the Constitution ", at its discretion to dissolve recognised trade unions through the public prosecution authorities. This possibility of dissolution, which covered trade associations in general, was made absolute, compulsory, and legal for associations of workers, by section 2 of the Resolution. In the course of political evolution, these strict measures were already repealed by Resolution No. 32308 of 20 November 1923, and the dissolved associations of workers were brought back to life and elected fresh executive committees. Since then the trade union movement has continued to develop, so that the total number of-unions existing at present is estimated approximately at 500, united in eight occupational federations and a single central organisation. § 2. — Freedom to Combine for Trade Purposes In the Constitution of 29 September 1925, which is at present in force, Article 13 grants freedom of assembly and Article 14 freedom of association to all Greeks : " All Greeks have the right, subject to observing the laws, to form an association. This right must in no case be made subject to preliminary permission from the Government. An association can be dissolved on account of failure to observe the law only after a decision by the courts ". The laws which have to be observed in exercising the freedom of association granted by the Constitution are the Associations Act of 1914 already referred to and the Trade Associations Act and liberty to Work Act of 1920. In the following outline of the law concerning trade associations, it is the contents of these Acts which will chiefly be referred to. T H E INDIVIDUAL R I G H T TO COMBINE This right is expressly granted by the Constitution, as is shown in Article 13 quoted above. This constitutional declaration is however supplemented by relevant Acts. Thus, section 23 of the Act of 1914 protects workers and salaried employees against any attempt on the part of the employer, director, etc., to restrict their liberty to join a trade union. It is forbidden for the latter : (a) by dismissal or threat of dismissal or by any other unlawful 3o8 FREEDOM OF ASSOCIATION means to prevent workers, salaried employees or other paid workers from founding trade unions, becoming members of the same, or belonging to political parties ; (b) to use the same means in order to force workers to form trade associations or to become members of given associations ; (c) to demand for the purpose of obtaining their services or of maintaining the existing contract of employment, that workers should refrain from becoming members of such associations or should resign from them. These regulations are supplemented by Act No. 21 n of 11 March ig20, already referred to, concerning liberty to work. Here the offence of " constraint ", well known in other legislations, is defined and is made subject to punishment by fines or imprisonment. This offence, according to Greek law, is committed by any person : (a) who in order to compel an employer to change the conditions of employment, or in order to hinder in any way the free performance of work, brings about a stoppage of work by threats, force, or acts of violence directed against a person who is willing to work ; (6) who for the same purpose and by the same methods causes a continuance of a stoppage of work ; (c) who in order to compel workers to change their conditions of employment or to forego a strike, brings about a stoppage of work on the part of au employer (lock-out) by the same methods, or causes a continuance of the stoppage ; (d) who by the aforesaid methods compels workers to forego a strike. The punishments for this " offence against the liberty to work " •are made considerably severer for any person who " removes, conceals, destroys, or in any way renders useless a machine or a component part of a machine or mechanical appliance, and who thereby causes a stoppage or an unusual disturbance in the working of an industrial or manufacturing undertaking, or makes it dangerous to continue work ". GREECE 309 Any person guilty oï these offences is punished whether he has committed the acts in his o wn_ interests or not. None of these provisions for the protection of the liberty to work, however, affect the principle of the liberty to employ trade union weapons. This principle was introduced by the new Greek legislation in place of section 167 of the former criminal law, which had regarded the strike as a punishable act, but which was repealed by the Act of 11 March 1920 (section 4). T H E L A W ON T R A D E ASSOCIATIONS This is contained chiefly in Act No. 281 of 1914. Along with this are certain provisions of Act No. 2151 of 1920. Preliminary Material Conditions An association can be freely formed in Greece provided its aims are not contrary to the law or contra bonos mores (section 1 of the Act of 1914). Trade associations, which are specially dealt with in Chapter III of this Act, are distinguished from the great majority of other associations chiefly by their aim. While in the case of associations in general (Chapter I, section 1), the aim of the association is referred to only negatively (exclusion of motives of gain), for trade associations, a more definite positive demand is made (Chapter III, section 19) that it should follow the sole purpose of " studying, protecting and furthering the economic or occupational interests of its members ". The essence of an association according to the definition - in Greek law is that several persons should " permanently combine their knowledge or their activity ". It is therefore a case of " permanent association of physical persons ". In Greek legislation there are no regulations for mere temporary unions such as the combinations (agreements) known to central European law. Moreover, it is impossible for bodies corporate to be members of an association, since Greek law expressly mentions individuals only. The minimum number of members is fixed at " seven individuals at least ". Although it is true that bodies corporate cannot be members of associations in the strict sense of the term, yet section 43 of the Act of 1914 provides for associations, as such, joining together to form federations. These federations, in which the member associa- 3 io FREEDOM OF ASSOCIATION tions (trade associations and associations with other aims) keep their economic and administrative independence, have the same rights and duties as are laid upon the simple associations by the provisions of the Associations Act. Besides the limitation of the right of association to individuals, it is also provided as a strict rule that " the participation of employers and employees in one and the same association is forbidden " (section 19). Thus, the formation of so-called mixed trade unions is legally forbidden in Greece. At the same time, the Act of 1920 permits an exception in the case of agricultural occupational associations (section 20), although in this case, indeed, reference is made merely to landowners and tenants ; but section 19 of the Act of 1914 considers employers and employees to be in the same position as these persons. With reference to the occupations of members of an association, it is legally provided that persons " of the same or of allied occupations " shall unite in one trade association. Since the Act speaks here not only of " industrial, commercial and agricultural occupations " but also of trade associations of persons " who exercise any other occupation ", it would seem that the right of association is ensured both for public officials and for members of the liberal professions. At the same time, occupational organisations of civil servants and municipal officials must not combine with any associations of another type (section 21 of the Act of 1920). There are special provisions for certain classes of occupations, but only for railway workers, workers and employees in shipping and associations " whose members, as a result of the nature of their occupation, are continually travelling or otherwise occupied, or are obliged to stay away from the headquarters of the association ". Such associations are granted special privileges with reference to the right of the general meeting to arrive at decisions. Minors over sixteen years of age and women may become members of associations only after the father, guardian, or husband sends written permission to the executive of the association. Only persons who are of age and have complete freedom of action and legal rights (but without distinction of sex) may be elected to the executive committee. Foreigners are excluded only from political associations. They may, however, not be elected to the committee even of nonpolitical associations, except in the case of associations consisting of foreigners who have settled in Greece. GRBBCK Existence 3" and Dissolution The further details concerning the existence and internal activities of trade associations are contained in a number of detailed provisions of the Associations Act of 1920, which form a kind of general constitution for associations which the single associations have to follow in exercising their activities. Besides regulations for the election of the executive, there are detailed provisions concerning the summoning of the general meeting, the voting therein, and the power of the meeting to pass resolutions, thus ensuring that resolutions freely taken and based on the general will of the members shall be adopted. Decisions of a more delicate nature, such as elections, votes of confidence in the committee, passing of accounts, personal questions, etc., must be taken by secret ballot. Members under eighteen years of age are not permitted to vote in a secret ballot. The same effort to ensure that no undue influence will be used in the voting is to be found in further legal provisions concerning the resolution to strike. In case of a strike (from any cause whatsoever) the executive must, within forty-eight hours, call a general meeting which shall pass a resolution with regard to the strike. Should this meeting not be large enough to take decisions according to the legal provisions (presence of at least a third, or for railway workers, etc., a quarter of the members), then the executive may, during the course of the strike, call a further meeting and continue to remain in touch with official bodies, but has no longer any legal right to undertake other action on behalf of the association and in particular to guide the strike. This regulation requiring that a meeting which is capable of arriving at decisions should be called at once in order to approve a strike of the trade association concerned, goes far to avoid so-called " wild " strikes, and to preserve industrial peace. . It should be noted that the law expressly requires that the same care should be exercised before employers make use of their weapons : in the case of a lock-out, the association of employers concerned must summon a general meeting within forty-eight hours. As, moreover, the Greek legislation concerning associations speaks always of " trade associations " in general, its provisions apply to employers' and employees' associations equally. The two Acts which have been discussed and which are. important for the right of association for trade purposes in Greece 312 FREEDOM OF ASSOCIATION also contain provisions concerning membership and resignation, the content of the rules, the right to organise public collections and festivities, the actionable nature of claims brought by members against the association and of those brought by the association against its members, etc. With reference to this last point, it is interesting to note one regulation according to which a member may bring an action against the association in the competent court. In the proceedings, which are modelled on the provisions of Act No. 3974 of 31 December 1911-13 January 1912, concerning the settlement of disputes between employers and employees regarding the payment of salaries and day wages, the association takes the place of the employer (section 7 of the Act of 1914). Similarly, a member of an association who is summoned for arrears of contributions is considered in the same light as an employee in a similar case (section 6). With reference to the organisation of collections, it is necessary to have a preliminary resolution by the general meeting unless for the purpose of supporting members of the association who are on strike. . A trade association can be dissolved only by the courts, and in the cases enumerated in the law : (a) if the association fails to observe the general regulations concerning the formation of associations discussed above (sections 1, 2 and 3 of the Act of 1914) ; (b) if the funds of the association are employed for some purpose other than that mentioned in the rules ; (c) if the association departs from the aims for which it was legally recognised ; (d) if the association has been inactive for so long that in the opinion of the court it may be considered to have abandoned its aims. The Act expressly states that " a strike is no motive for dissolution ". From these and the other provisions referred to above it is clear that the right of association for trade purposes in Greece does not restrict the freedom to make use of trade union weapons. GREECE Sphere of Activity 3'3 of Trade Associations There are important legislative provisions concerning the legal powers of trade associations and circumscribing their activities. As far back as the Associations Act of 1014, limits were laid down within which trade associations could take part in public duties. According to section 22, recognised trade associations are entitled to send representatives to the Superior Labour Council (in conformity with Act No. 3932 of 12 and 25 November 1911). They are also called upon to co-operate in enforcing laws for the protection of the workers by reporting infringements against such laws to the competent authorities through their legal representatives. For the maintenance of the labour market, industrial peace and a steady development of production without friction, the Act empowers them to set up employment exchanges and workers' employment offices, and offices for free legal assistance and medical advice. The trade associations are legally prohibited from exercising any occupation or industrial activity. They may, however, undertake certain legal transactions for furthering the economic welfare of their members. They are thus entitled in particular : (a) to conclude buying and other contracts for the organisation of schools and occupational training centres ; (6) to purchase raw materials, seeds, manure, stock, machines, and other implements and materials, and to sell, hire or lend the same to their members ; (c) to purchase and resell the products of the industry of their members, for which purpose special co-operative societies are to be formed according to section 15 of the Act of 1920 ; (d) with the permission of the Ministry for National Economy to purchase land required for achieving the aims of the association, erecting offices, halls, libraries, industrial schools, etc. Collective Agreements The most important power of the trade associations, however, is that of concluding collective labour agreements. In this connection, section 20, (e), of the Act of 1914 states : Trade associations may conclude collective labour agreements with individuáis and bodies corporate or with representatives of groups, for 3H FREEDOM OF ASSOCIATION the purpose of fixing the conditions of employment of the other party, that is, the engagement, dismissal or departure of workers, payment of wages, hours of work, etc. Representatives of the association with the right of signature must be specially empowered by the general meeting before signing collective agreements. Besides the influence which the trade associations may exercise on conditions of work in terms of the above provision, there is a further regulation which tends to strengthen the position of trade associations in Greece : such associations, whether of employers or employees, are entitled to register industrial and commercial trade marks (labels) for the personal use of their members in terms of Act No. 2156 of 16 February-i March 1893. These trade marks are the property of the associations, which may resign them in favour of their members (but without profit). As is clear from all these provisions, Greek legislation concerning trade associations deals with considerable thoroughness with the details of such associations, and does not leave very much freedom for regulation by the rules. Supervision of the Working of the Associations This extensive system of legislative regulation is supplemented by rather extensive supervision of the associations by the authorities. Chapter V of the Act of 1914 dealing with " recognition, supervision and dissolution " does indeed limit the control of associations to supervising the application of the Associations Act, the rules of the association, and the administration of the funds. But the regulations make possible a considerable amount of State supervision. This supervision is carried out for the workers' associations (trade associations and also mutual-aid societies) by the competent factory inspectors; for other associations (particularly trade associations of employers) it is carried out by the competent prefects. BIBLIOGRAPHY F. Moupíxr,. 'EX).7|V.y.ò; 'Epya-'.zò; Kw8'.;. ' A ^ v a i , 1913. N. rwvv.o'j. ' 0 UOT'.aX'.Tp.ò; TOÜ Kpá-ou;. A. SßwXou. 'OSTIVOÇ TWV Swp.aTíiü)v. ©. KouToum). 'A8í¡vai. 0 SoffixX'.Tfxôç ¿v 'EXXáS'.. F. FeupY'.áoou. A. Ka/.i/wouvaxv). 'H itá).7| TWV rálJEwy. IIoX'.T'.xïi 'Aör^m, 1914. ASïjvxi, 1919. 'AOìjvai, 1921. 'Eit'.TTï|{JiYi. 'AQíjvat, 1926. 'EiîETTipiç 'EpyaT'.xwv S u p T s í w v . 'Aö/jva'., 1024. Annuaire des Syndicats Atifens, 1924. ouvriers. SERB-CROAT-SLOVENE KINGDOM INTRODUCTION The Serb-Croat-Slovene Kingdom was founded on i December 1918 and comprises the following territories : in the first place, the former Kingdoms of Serbia and Montenegro ; next, the former Austrian territories of Slovenia (the greater part of the Crown land of Carniola, parts of Styria and Carinthia, together with the former Hungarian territory of Medjumurje) and Dalmatia ; further, Croatia and Slavonia, which were part of Hungary; Bosnia and Herzegovina, which although they had their own legislation, modelled it in the main on Austrian law ; and finally Voivodina, composed of the former Hungarian territories of Baranja, Baëka, and the Banat. The difference in legal origin of the various parts of the country has also meant that the historical development of the law on association for trade purposes and of trade associations until 1 December 1918 differed according as it took place in the area covered by Austrian, Hungarian, or Serbo-Montenegrin law. In addition, the composition of the State is of no less decisive importance for the present, state of the law, for, as will be shown in more detail later, although the new State has already enacted certain fundamental laws for the whole territory of the State precisely in the field of labour law, yet it has also very largely maintained the existing laws brought to the new State by the individual areas, and. it is only the lesser part of the law in force in the Kingdom that is common to the whole country. This variety in form must also be taken into account in the present study, which will, however, deal primarily with the conditions of fact and law apflying to the whole Kingdom, and, in accordance with the scheme of the publication as a whole, discuss the details in the separate areas of the Kingdom only so far as they 3>8 FREEDOM OF ASSOCIATION have not been described elsewhere or an account of the legal conditions peculiar to the Kingdom is necessary \ i § 1. — Development of Trade Associations and the Law on Such Associations The principal conditions of the country affecting the development of trade associations will first be briefly surveyed, together with the existing associations. This will be followed by an historical sketch showing the development of the law, with special reference to Serbia. DEVELOPMENT AND PRESENT POSITION OF TRADE ASSOCIATIONS The Serb-Croat-Slovene Kingdom is largely an agricultural State, and 85 per cent, of the population of about 12,600,000 are dependent on agriculture. The importance of commerce and industry is comparatively slight. For a long time industrial trades were carried on only on a small scale and with antiquated methods, and it was not until the beginning of this century that industry in the modern sense began to develop. Moreover, this development has not always been the same in the different parts of the State. Whereas areas such as Bosnia, Herzegovina, Dalmatia, Montenegro, and South Serbia had until quite recently a feudal or patriarchal system, in Slovenia and parts of Croatia, on the contrary, commerce and industry have long flourished. In view of these circumstances, the number of wage earners taken as a whole is small compared with the total population, and the trade union movement is therefore still comparatively young and not very strong. The oldest Serbian trade unions date back only to 1903. National unity led also to the amalgamation of the unions in the separate areas, and at the .same time, to a marked increase in the strength of the movement 2 . Employers' organisations properly so called have been formed only during the last few years. 1 For further particulars see the monographs on the Former Dual Monarchy of Austria-Hungary, Austria, and Hungary, in Vol. Ill, p p . 103-186. * According to the statistics of the Belgrade Chamber of Labour, the membership of the Serbian unions was as follows : 1903 Ï9°4 1910 . • . . • . . 1,761 • 5,35o . 7,418 T912 1913 1920 . • . . • . . • . 8,141 14.707 25,437 SERB-CROAT-SLOVENE KINGDOM 3*9 The promising growth of the movement after the foundation of the Kingdom soon came to a stop, however, at least among the workers. The spread of Communism after the war led to disintegration among the trade unions, and the accompanying acts of violence inspired legislation for the protection of the State, which, although directed in the main against the interference of the Communists, could in practice also be employed against trade unions. In addition to this, the administration of legislation on associations taken over with former Austrian and Hungarian territory gave the administrative authorities wide powers of intervention in the activities of trade unions. This meant that where the trade unions were not dissolved, they lost many members, and even to-day they have not yet regained their membership of 1919. According to the 1926 report of the Central Secretariat for the Yugoslav Trade Unions, there are at present five main trade union groups, distinguished principally by their political programmes. The free trade unions are Socialistic. Their general federation, the Federation of United Trade Unions of Yugoslavia (Ujedinjeni Radnicki Sindikalni Savez Jugoslavije), is affiliated to the International Federation of Trade Unions of Amsterdam. Its affiliated unions are grouped according to district as follow : Belgrade, for Serbia, with ten unions; Zagreb (Agram), for Croatia and Slavonia, with four unions ; Ljubljana (Laibach), for Slovenia, with six unions; Bosnia-Herzegovina, with eight unions; and Voivodina^ with one. The total membership is estimated at 26,656. The Moscow tendency is followed by the independent unions combined in the Central Committee of Yugoslav Trade Unions (alleged membership 15,000 to 20,000). Two unions describe themselves as neutral, namely, the Yugoslav Printers' Union, which is affiliated to the International Federation of Trade Unions, and the Bank Clerks' Union, which declines tojoin an international organisation. Whereas all these groups support the principle of the class war, the two remaining ones aim at co-operation between capital and labour. These are, on the one hand, the national unions, the Croat Workers' Association, and the National Union of Yugoslav Railwaymen and Seamen, which have no connection with each other, and, on the other, the Christian unions, whose activities are confined in the main to Slovenia, and which have combined to form the 3 20 FREEDOM OF ASSOCIATION Slovenian Federation of Christian Trade Unions (Seznam Krscanskosocialisticrich organizacy v sloveniji) (membership about 10,000). The total number of workers organised in trade unions, according to the above report, is therefore about 80,000, which, compared with the 1,000,000 workers employed in industry, handicrafts, agriculture, and domestic service, forms only 8 per cent. In addition to the trade unions there are various officials' associations. These may not pursue militant aims, but work for the protection and promotion of the intellectual and economic interests of their members, such as certain teachers' organisations and a general civil servants' union '. The employers' organisation, which covers the whole country, is the Federation of Industrial Corporations (Centrala Industrìjs\ih korporacija). In addition, there are various territorial associations for separate parts of the country, and trade associations for specific industries or branches of industry a. HISTORY OF T H E L A W ON TRADE ASSOCIATIONS Before the existing law on association for trade purposes is discussed, a brief -account may be given of the legal conditions previously prevailing in Serbia. Until the beginning of the nineteenth century Serbia was under Turkish domination, and during that time the whole economic life of the country was paralysed. Agriculture was carried on on the Zadruga " system, the well-known form of iamily co-operation which satisfied all economic needs. With the liberation of Serbia in 1815, urban trades began to revive, and in order that the new handicrafts might be ablento compete with foreign rivals, they sought protection in combination, i.e. in the " Esnaf " or guilds, of which there were 18 in 1830. There was no written law on the organisation and activities of these bodies, and indeed they lacked all legal protection. In these circumstances it is clear that the apprentices and journeymen in the Esnaf had a very insecure position, nor had they any right to combine, though it is hardly likely that they suffered seriously from this lack. 1 There are several associations of members of the liberal prolessions, but these are not trade associations in the sense of the present study. 2 For further particulars, cf. International Labour Directory, 1925, Part II, pp. 186-188 (Geneva, 1925). 32I SERB-CROAT-SLOVENE KINGDOM - With the growth of handicrafts and the increase in the number of guilds, the feeling of insecurity became stronger and the demand for legal regulations on the guild system more pronounced. After several years' discussion and numerous appeals and petitions, the Guilds Act of 1847 was passed, which also contained several provisions on journeymen and apprentices. There was nevertheless no consequent improvement in the position of the workers, for the Act placed them wholly at the mercy of the masters combined in the " Esnaf ", the authorities exercising no supervision over the guilds, and the workers themselves being given no means of self-defence. They did not belong to the guild, had no representatives on it, besides which they had no right to combine. Any secret agreement among journeymen to cease work in common was punished by the Act with imprisonment of one to six months. A journeyman could stop work without giving due notice only if he was physically or intellectually incapable of continuing to work, if the employer " obviously " treated him too strictly, or compelled him to act against the law or morals, or withheld his wages without lawful reason, or failed to provide him regularly with his maintenance. If, in the absence óf such a reason, the journeyman stopped work, he could be compelled to continue working by the " Esnaf " or the police. But the decision whether a lawful reason for immediately stopping work existed lay with the " Esnaf " itself, that is to say, with the masters, who could hardly be regarded as impartial judges. It would go too far to describe the other defects of this Act. Although it fulfilled its purpose of ordering and promoting industry only very imperfectly, and in practice was largely not applied or else circumvented, it yet remained in force for over sixty years. The edict of 1859, which proclaimed the freedom of industry, could not overthrow its legal force. It was not until modern industry had arisen and created a body of industrial workers that this obsolete Act was repealed. Even before the disappearance of the Act, the freedom of association and assembly had been declared in the general political field. The Serbian Constitution of 22 December 1888 (old style) and the subsequent Constitution of 5-18 June 1903 ' laid down that Serbian 1 The Constitutions of 1869 and 1901 contained no provisions of this kind. Freedom of Association 21 322 FREEDOM OF ASSOCIATION citizens had the right to associate for all purposes not contrary to the law, and that the exercise of this right could not be made subject to any kind of preliminary measure. The Act on Associations and Assemblies of 1891 repeated the provision of the Constitution, and added in section 32 that employers' and workers' associations might be formed freely without any need for a permit from the authorities. On the other hand, secret combinations, whose aims were contrary to the law, were forbidden, and membership was made subject to punishment. According to this same Act, assemblies in closed premises were free, and previous notice was all that was required for holding an assembly in the open air. This meant that although workers' and employers' associations could be formed, any mutual agreement to stop work, however, was forbidden. At this point the Industries Act of 29 June-12 July 1910, which came into force on 1-14 July 1911, intervenes. Section 98 of this Act recognises the right of association for trade purposes, and section 56 the right to strike and lock out. The detailed provisions of these sections, as also those of the Act reorganising the guild system, in so far as they come into consideration here, will be discussed later in view of the fact that they affect the present state of the law in Serbia. Therefore the right of combination in the widest sense was granted by law to both employers and workers already before the world war. This act of legislation was facilitated by the fact that there was practically no capitalist class, at least so far as large-scale industry was not organised, and the legislature therefore met with hardly any opposition. There were only two classes to be satisfied — artisans and workers \ § 2. — Conditions of Formation and Existence of Trade Associations The fundamental legislative provisions are either general for the whole country or based on the particular law of the different territories, and may be discussed in turn. GENERAL L A W S 1. The principal general legal provisions now in force are those contained in the State Constitution of 28 June 1921. On the model of other modern Constitutions, it guarantees a number of basic social 1 Stevan S. POPOVITCH : Les corporations de métiers et les chambres consultatives en Yougoslavie, p. 80. Paris, 1923. SERB-CROAT-SLOVENE KINGDOM 323 rights, including, in Article 33, the right of workers to organise with a view to improving their conditions of work. The constitutional regulation contained in Article 33 guarantees the right of association of the workers alone. That of employers is not specially protected, but is covered by the general law on association ; for the right of association of the workers is obviously considered to need more protection, and is therefore to be specially secured. But the general right of association, too, is protected by the Constitution. This is affirmed in Article 14, under which citizens have the right to associate and to enter into agreements, and associations may be formed for purposes that are not punishable. Detailed regulations are left for special legislation \ Article 33 grants the workers the right of association with reference to the improvement of their conditions of work. It merely states that this aim, being fundamental, must not be lacking, but not that it must be the only aim. According to this provision, which is not to be interpreted narrowly, other aims are therefore also allowed. On the other hand, a limitation of the workers' right of association might result from the provision of Article 14, by which the aims of an association may not be contrary to the Penal Code. In actual fact, the present practice is to apply both provisions of the Constitution at once to the workers' trade associations, namely, the particular provision concerning the right of association of the workers for trade purposes, and the general provision of the law on association, although the question whether the simultaneous application of the two legal principles is legally justifiable or not cannot be casually dismissed. In this connection it may be asked in particular whether, since the more detailed regulation of the general law of association is reserved for special legislation, such legislation may go so far as to make the formation of associations dependent on the previous approval or similar measures of the administrative authorities. As such legislation on associations has not yet been enacted for the whole State, and as, moreover, the former Austrian and Hungarian laws on associations taken over by the State also intervene, it is further open to question whether their provisions making it a condition for the formation of an association that it should be previously approved or at least not disallowed, are compatible with Article 33 of the Constitu- 1 The same Article correspondingly grants the right of assembly. 324 FREEDOM OF ASSOCIATION tion, which unconditionally grants the workers the right of association ; it may even be doubtful whether such provisions are in harmony with Article 14. This question is of great practical importance also in connection with Article 127 of the Constitution, which provides that in the event of a war, general mobilisation, or riot, part of the Constitution, including the general law on associations, assemblies and agreements (Article 14), may be temporarily suspended. If, however, as is the present practice, the special right of association for trade purposes granted to the workers by Article 33 is regarded as part of the general law on associations, then this too becomes subject to Article 127. After what has been said above, however, it may be considered doubtful whether this view correctly interprets Article 33. The simultaneous application of other provisions, in particular those of legislation on associations, may involve all the more risk to the security of the workers' right of association, as a law can be made binding in spite of its offending against constitutional principles. The provisions on the workers' right of association and the right of association in general, by being included in the Constitution, are established as constitutional principles. Their amendment or repeal entails an amendment of the Constitution and cannot be the effect of a simple Act, but must necessarily be the result of the procedure provided in the Constitution for its amendment. But this special constitutional safeguard is not unconditional, for, as is generally accepted, the courts may not examine the material constitutionality of an Act, and any formally enacted law remains a law that must be followed and applied, even if it is contrary to the Constitution. 2. Apart from the Constitution, the right of association .of certain groups of workers is secured by an ordinary Act, namely, section 35 of the Labour Protection Act of 28 February 1922, according to which the workers employed in the undertakings covered by the Act may unite in special associations to defend their economic, social, and moral interests. Such associations may be formed according to the occupations to which the workers belong or irrespective thereof. They may be united in local or provincial federations. According to section 1, the Act applies to all private and public undertakings carrying on handicrafts, industry, commerce, transport, mining and similar activities. The workers employed in such undertakings are defined in section 3 of the Act as all persons working in SERB-CROAT-SLOVENE KINGDOM 325 such undertakings for remuneration or for the purpose of learning a trade, who are not responsible for services of a relatively high grade. By section 35, subsection 3, only such persons may belong to trade associations within the meaning of the Act, irrespective of their sex or age. This Act, as little as the rest, provides detailed regulations concerning the formation of an association and the conditions for its existence. On this point the Associations Acts of the individual parts of the country, whose relation to Articles 14 and 33 of the Constitution has already been discussed, intervene. The details of these Acts will be examined later. 3. As already explained in the Introduction, the acts of violence of the Communists led to the passing of the Act of 2 August 1921 on the maintenance of public safety and order in the State, the so-called Defence of the State Act. Its provisions may lead in certain connections to a substantial restriction of the liberal principles contained in the above laws. According to the Defence of the State Act, it is a crime to found, support, or join an association which aims at spreading Communism, Anarchism, or terrorism. The same applies to an organisation which tries to seize power in an unlawful or antiparliamentary manner, or aims at the commission of the following acts defined as crimes under the Act : the composition, publication, printing, and distribution of books, newspapers, posters, and notices with a view to inciting to acts of violence against the constitutional authorities of the State, or in general to molesting public peace or endangering public order ; the propagation of Communism and anarchy by word of mouth or in writing, or the persuading of other persons to overthrow the political order of the State by crime, violence, or any other form of terrorism. In this way any Communist or Anarchist association is prohibited, even if it confines itself merely to the explanation and propagation of these doctrines without engaging in acts of violence. The penalty incurred by acts of this kind is death or twenty years' penal servitude. Anyone who is aware of an instance of this crime without giving due notice to the authorities is also punished by twenty years' penal servitude. Further, according to section 15 of this Act, the administrative authorities may dissolve a trade association or other association if they ascertain that it has changed its 326 FREEDOM OF ASSOCIATION lawfully admitted aims, a n d secretly or publicly begun to engage in foreign propaganda or to deal with unlawful or disallowed matters. I n the event of dissolution, the members of the committee of the association are punished by imprisonment of not less than one year a n d a fine of 5,000 dinars, unless they have been guilty of even more serious offences. A trade union, therefore, that fails to observe this provision in its meetings a n d sessions, and goes over to Communism, r u n s the risk of being dissolved. A s the decision whether a trade union is still engaged in t r a d e union propaganda or has alread5 r embarked on Communist propaganda is left to the discretion of the administrative authorities, it is clear that the Socialist unions may feel the security of their position affected. A dissolved association has the right to make an appeal within three days to the competent ordinary court of first instance against the order to dissolve. A similar period is allowed for appealing against the decision of the court to t h e Court of Cassation. Certain other provisions of the Defence of the State Act, although not referring directly t o trade associations, m a y in practice indirectly affect their practical management. T h i s applies, for instance, to section 12 of the Act, which imposes a penalty of imprisonment or fine, or both, for persons who introduce or distribute in public meetings, whether held in the open air or in closed premises, tokens, flags, or placards with a view to u r g i n g or inciting public opinion to exchange the existing order of law for another b y means of a coup d'état, the destruction of private property, or the disturbance of the public peace. Even the mere fact of participating in such a proclamation is punishable. If the participants in a proclamation directed against the State authorities or the interests of the State fail to disperse at the order of the authorities, they are similarly liable to imprisonment, and the ringleaders, in addition, to a fine \ SPECIAL LAWS I t has already been pointed out that the general law on association in the K i n g d o m is completed, in the absence of comprehensive codification, by t h e special laws of the ' individual territories which 1 It may be mentioned that the judges in the criminal courts must deal with cases under this Act, as against the Serbian Penal Code, by summary procedure before all others, and enjoy full discretion in delivering judgment. SERB-CROAT-SLOVENE KINGDOM 327 were united in the Kingdom in 1918, so far as they are not cancelled by the general law \ In former Serbian territory the Act on associations and assemblies of 31 March 1891 is still in force. According to this Act, Serbian citizens have the right to associate for all purposes not contrary to the Act. The exercise of this right may not be made dependent on any previous measures. Both workers'.and employers' trade associations may be freely formed without any need of official approval. All secret associations whose aims and purpose are contrary to the law are forbidden, and participation in them renders liable to punishment. The formalities to be satisfied by the association are intended merely to make it public. According to section 37 of the Act, all associations and societies must, when founded, publish their rules and the names of their legal representatives in the press. This applies also to any subsequent changes. To satisfy this regulation it is not even necessary to issue a notice in a newspaper ; it is enough if the rules are printed and distributed, together with a list of the names of the legal representatives of the association. The contravention of this regulation does not render liable to penalty ; for, as will appear from the above, the fact of keeping an association secret is not by itself a punishable act, but its aims must also be contrary to the law. At the same time, it is probable in actual fact that if an association is not made public, the reason is precisely that its aims are illegal, and it should be remembered that in such a case section 15 of the Defence of the State Act referred to above will then apply. The above provisions also hold good for federations of associations. It is obvious that any action of an association or its members contrary to an Act in force, whether taken in accordance with the rules or not, renders liable to punishment (section 38). The ordinary courts are competent to judge such actions. The trade associations formed according to this Act do not possess legal personality, which under Serbian law is acquired only by virtue of legislation. As the Serbian Act on associations and assemblies does not deal with this point, however, the trade associations established on its basis have 1 Thus, in particular, the Defence of the State Act provides that any provision in penal law, the law on association, etc., contrary to it is cancelled. 328 FREEDOM OF ASSOCIATION no legal personality. They cannot therefore own or acquire property, etc. As a rule any real estate they need is acquired for them by one of their officers — a method, however, which experience has shown to lead to complications, particularly when there is a split in the association. In addition to the legal principles contained in the Act on associations and assemblies, there is also the provision of the Industries Act referred to in the historical survey, concerning the free formation of trade associations of employers and workers and mixed associations (section 98). In Croatia and Slavonia the Austrian provisions concerning associations contained in the Imperial Decree of 26 November 1852, which applied to the whole Dual Monarchy of Austria-Hungary, are in force so far as trade associations are concerned. It follows that here the system of compulsory application for permits (concessions), dating from the period of absolutism, still prevails. According to section 1, special authority is necessary for the foundation of an association \ The political authorities are competent to grant 2 permits . An application for a permit to found an association must indicate the scheme of the undertaking and be accompanied by the rules. The rules must state the aims of the association, the means for achieving these aims and collecting the necessary funds, the manner of forming and renewing the association, the system of management, the rights and obligations of members, the representation of the association with respect to third parties, the manner of taking decisions and of settling disputes arising out of internal matters of the association, and the provisions as to the dissolution of the association. A permit can be granted only if the aims of the association are permitted under the law. All amendments of the rules must also be approved. The association is subject to supervision by the State administrative authorities. It may be dissolved if it is formed without the necessary permit, if in spite of the withdrawal of the permit it continues its activities, or if it offends against its rules and similar regulations. The political authorities are competent to dissolve the 1 This provision was confirmed by order of the " Ban " of CroatiaSlavonia-Dalmatia of 9 April 1897 (No. 170), which also referred to the prohibition against forming political associations. 2 Now the Ministry of the Interior at Belgrade, on the recommendation of the political authorities. 3*9 SERB-CROAT-SLOVENE KINGDOM association, but an appeal against their decision may be taken to t h e Minister òf the Interior. Such an appeal cannot, however, prevent t h e decision from taking effect, and the association must immediately cease its activities. Associations personality. formed on the I n Voivodina Hungarian Minister of the Interior of 1873 are accordingly valid \ I n this necessary for the formation of an engage " provisionally " on its given within forty days. basis of a permit have legal law applies. T h e Order of the a n d the Ministerial Decree of 1875 territory too, therefore, a permit is association, b u t the association may activities if a refusal has not been I n Slovenia and Dalmatici t h e Austrian Associations Act of 15 November 1867 2 is in force. A l t h o u g h a permit for forming an association is not necessary, the State authorities may prohibit its foundation if it is contrary to the law. I n Bosnia and Herzegovina trade associations are subject to the Associations Act of 17 F e b r u a r y LQIO. These regulations resemble the Austrian provisions of 1867. T h e y require the founders of an association to notify the competent administrative authorities, at t h e same time submitting the rules. T h e Government may prohibit t h e association if its aims or rules are contrary to the law or dangerous to the State. If, however, n o prohibition is pronounced within six weeks of the submission of the rules, the association may engage on its activities. An appeal against the prohibition may be taken to the competent Ministry. Similar provisions apply to amendments of the rules and the formation of branches and federations. W h e n the general meeting is held, three days' notice must be given ; otherwise it may be forbidden by the authorities. An appeal against such prohibition is also possible. T h e authorities have t h e right to send a representative to the meeting, with powers to dissolve it. T h e execution of the decisions of t h e committee of an association may be suspended, and in certain conditions the association may be compulsonly dissolved, for instance, if its activities are contrary t o public order. I n all these cases an appeal to the competent Ministry is allowed. 1 Cf. monograph on the Former Dual Monarchy of Austria-Hungary, in Vol. I l l , pp. 126-127. 2 Cf. ibid., p. io8, and also Austria, same volume, p. 139. 33» FREEDOM OF ASSOCIATION Political associations are subject to greater restrictions. Trade associations which satisfy the conditions of the law have legal personality. In Montenegro, where no special legislation is in force, the general law contained in the Labour Protection Act applies to trade associations. This brief survey will have shown that in certain parts of the country provisions are in force concerning which it is at least doubtful whether they are compatible with the provisions of the Constitution and the Labour Protection Act. Arguments are accordingly produced to the effect that in these circumstances they are no longer valid. On the other hand, they have not been expressly repealed and are still enforced by the Yugoslav authorities. But it is not only the question of their applicability that may give rise to doubt, there is also that of the manner of applying them. In view of the events described in the Introduction many trade unions founded by Communists are in general not regarded as trade associations but treated as organisations of the Communist Party," which is prohibited under the Defence of the State Act, and are therefore forbidden or not allowed as political associations. § 3. — Activities of Trade Associations A distinction will have to be made below between the relations of trade associations with State activities on the one hand, and the relations between associations of workers with employers and employers' associations on the other. T H E RELATIONS BETWEEN TRADE ASSOCIATIONS AND STATE SOCIAL INSTITUTIONS In connection with this study it is of interest to examine what the relations are between trade associations and public organisations, i.e. the trade corporations, and public institutions, i.e. the trade councils. As already explained, until quite recently small industry predominated in Serbia, and even in the other territories now incorporated in the Serb-Croat-Slovene Kingdom the part it plays must not be under-estimated. It has been one of the principal preoccupations of the legislature to maintain and organise the guilds taken over. SERB-CROAT-SLOVENE KINGDOM 331 Thus, in most parts of the Kingdom provisions on compulsory trade corporations have been taken over from former Austrian, Hungarian, or Serbian law. As their aims cover, not only the economic, but also the social interests of their members they must be mentioned here, for to that extent they exercise some of the functions of trade associations, or at least have the power to exercise them and therefore to take the place of such associations. On the other hand, there are trade councils for the purpose of representing the interests of commerce, industry, and labour in the State. Some of the institutions have been taken over from the past, some are newly created and have powers of their own, and the question arises whether they stand in any legal relation to the trade associations. TRADE CORPORATIONS, " ESNAF ", ETC. In Serbia the Industries Act of 1910 already mentioned, which took the place of the 1847 Act, is in force. It provides for the formation of compulsory corporations or guilds (" Esnaf ") for certain privileged handicrafts, namely one " Esnaf " for all the artisans in a given district, the various guilds being in turn combined in a larger corporation for a greater area. Their principal aim is to defend the interests of the trade and promote beneficial relations between masters and journeymen. An important innovation in the 1910 Act was the organisation of journeymen and their admission to the corporation, in which they have the right to discuss their conditions of work and share in making decisions. They may elect a committee of five members to represent their interests and in particular to take part in settling conditions of work, electing members of the committee for mastership tests, electing the industrial courts, and organising institutions for the benefit of journeymen, such as employment exchanges, homes, etc., to which the journeymen contribute. Too much importance, however, must not be attached to the actual value of these institutions. They disappear where industry springs up, and are therefore to be found mainly in the southern provinces. In Croatia-Slavonia and Voivodina the Hungarian Act of 1884 ' * Cf. monograph on Hungary, Vol. Ill, p. 165. FREEDOM OF ASSOCIATION 332 applies, in Slovenia-Dalmatia the Austrian Act of 1883 ', and in Bosnia a n d Herzegovina t h e A c t of 2 J a n u a r y 1909, which on t h e whole follows Austrian law. B u t everywhere free associations h a v e s p r u n g u p , and are still springing u p , side by side with the compulsory organisations, even in Bosnia and Herzegovina, where industry h a s hardly gained a footing as yet. T R A D E COUNCILS I n Serbia labour councils were set up already under the Industries A c t of 1910, section 117 of which provided that associations of manufacturers, artisans, traders, and workers should each form a council with headquarters at Belgrade 2 . T h e electorate for the council consisted of the members of t h e association, and only organised persons were eligible. T h e principal duties of the councils were of a n advisory nature. All draft legislation within their competence was to be submitted to them for consideration, and they had to be consulted on all other matters affecting the interests of t h e workers. But they had also the function of supervising the trade associations for which they were set up ; they were competent to settle relations between employers and workers, to confirm the working rules prepared by the employers or guilds, a n d to set u p a n d manage employment exchanges a n d similar institutions. T h e basis of these councils was t h e trade associations, and they m i g h t therefore be regarded as the culminating point of trade union structure. Division I I I of the Labour Protection A c t of 1922 contains provisions on workers' councils t h a t are now uniform for the whole State ; section 36 of the Act r u n s : Workers' councils shall he established to represent the interests of wage-earning and salaried employees within the territory of the SerbCroat-Slovene Kingdom. Provision was made for eight such councils. T h e members are elected from a m o n g the workers and salaried employees in the various trades, from a m o n g those who have attained 1 Cf. monograph on the Former Dual Monarchy of Austria-Hungary, V o l . I l l , p . 103. a The present study will consider only the labour councils. In addition handicraft, industrial and commercial councils were set up on the same pattern with corresponding duties. SERB-CROAT-SLOVEXE KINGDOM 333 the age of eighteen years and are liable to compulsory sickness and accident insurance. The functions of the councils are principally advisory, it being their duty to furnish reports and opinions and make proposals to the authorities concerning all social questions, and to compile statistics and collect other information for the purpose. Conversely, the State authorities must submit for the consideration of the workers' councils all Bills, Orders, and instructions directly or indirectly affecting the interests of workers and salaried employees. The councils have also administrative duties, for they are required to watch over the proper administration of Acts and Orders affecting the interests of workers and salaried employees. In appropriate cases they must make the necessary representations, and in general effect direct negotiation and intervention with all State offices, institutions, and employers whenever this may be desirable in the interests of workers and salaried employees. On their own initiative they found and organise institutions to improve the economic, social, and intellectual situation of workers and salaried employees. Finally, they can intervene directly to regulate relations between employers and workers, for which purpose they must on the one hand keep an up-to-date register of workers' associations and trade unions, keep in touch with such unions, and exercise a directive influence over their activities, and, on the other, participate in the conclusion of collective agreements and in the settlement of disputes between employers and workers at the request of the parties concerned or the authorities. These workers' councils are independent autonomous bodies in public law, subordinate to the Ministry of Social Affairs, and have legal personality. They act through two bodies, the general meeting and the executive committee. The general meeting elects the committees and may appoint sub-committees. The executive committee is responsible for dealing with all the more important matters. It also chooses the members of the council who are to participate in settling disputes between employers and workers, in the conclusion of collective agreements, and in making various enquiries. The funds required by the councils are contributed by the workers themselves. The Act shows that the trade associations of the workers no longer have a statutory influence on the councils as under the earlier Serbian Act. Only the members of the provisional councils, to be 334 FREEDOM OF ASSOCIATION set up at first under section 66, were to be appointed by the Minister of Social Affairs on the recommendation of the associations of workers and salaried employees. The members of the permanent councils are freely elected. It is therefore clearly open to the organisations to set up candidates, and to this extent they can in fact acquire more or less influence over the appointment of the councils and their activities. On the other hand, it is of great importance that the councils are not only in constant touch with the trade unions, but must also exercise a certain amount of supervision over them. In general, it may be said that to some extent they supplement the work of the trade associations, but that to some extent also they take their place. Their most important duty of a supplementary kind may be said to be their participation in concluding collective agreements and settling labour disputes. The representation of the workers as against the State, on the contrary, is a duty they have practically taken over from the trade associations in accordance with the Act '. So far as participation in the employment exchanges set up by the Labour Protection Act is concerned- this applies only in part. Thus, the members of the executive committee of the Central Employment Exchange, namely, six representatives of employers and six of workers, are elected by the employers and workers concerned through the competent councils (section 78 of the Act). The members • of the executive committees of the local employment exchanges, on the contrary, are elected directly by the local employers' and workers' associations concerned (section 90). For these committees there is also the special provision that they must keep in constant touch both with all industrial undertakings in the district and with employers' and workers' associations, and must encourage them to maintain closer relations with the local employment exchange. DÉTERMINATION AND ENFORCEMENT OF CONDITIONS OF WORK Apart from isolated provisions some of which have already been mentioned 2, there is no legislation on the system of collective agreements and conciliation. Information on the actual extension of 1 This may be said to hold good correspondingly for the other trade councils as well. * These may also be taken to include the provisions on industrial courts contained in the Serbian Industries Act of 1910. SERB-CROAT-SLOVENE KINGDOM 335 collective agreements and the actual activities of conciliation offices is not available, but it is probable that they are of slight importance. On the other hand, Division V of the Labour Protection Act contains provisions on workers' representatives in undertakings. This subject should be mentioned here, although it may be questioned whether the system is actually employed to any noteworthy extent. The workers' representatives are elected by the workers in an undertaking on the basis of lists of candidates. Here, too, it is obviously open to the trade unions to set up candidates, but the representatives elected cannot be considered as representatives of the trade union in the undertaking. According to the Labour Protection Act, their duties relate only to questions of fact. They must be employed in the undertaking, and are to be regarded as the elected representatives of the workers in the undertaking. This appears also from their duties. They are responsible in the first place for trying to protect the trade, social, and intellectual interests of the workers employed in the undertaking. In addition, however, they must endeavour to maintain good relations between employers and workers and to preserve order and decency in the undertaking. It is their duty to watch over the observance of labour protection legislation and of collective and individual contracts of work. When workers are dismissed they may assist them with advice, but they have no right to protest. It is, further, the duty of the workers' representatives to intervene in the fixing of piece rates and average and minimum wages, except in so far as these are regulated by collective agreement with the co-operation of the trade associations of employers and workers. They must also mediate between workers and employers in the event of a dispute, and if they fail to settle the dispute and a strike is threatened, they may appeal for the intervention of the State authorities. Finally, provision is made for their co-operation in negotiating and drafting collective agreements between employers and workers. As these last provisions show, their functions trench on those of trade associations. It is hardly likely, however, that they have acquired any practical importance. MILITANT ACTION (STRIKES AND LOCK-OUTS) Already the Serbian Industries Act of 1910 had recognised the right of the workers to strike and the right of employers to lock out. At the same time, the contract of work can be cancelled only on the 336 FREEDOM OF ASSOCIATION grounds specified by law. On the conclusion of the employment relation both parties are free (sections 49-55). According to section 56, however, the right to strike and lock out exists irrespective of the contract of work. The only restriction is that for butchers and bakers, who must notify the local police authorities four weeks before stopping work or closing the business. Since then the Constitution of the new Kingdom has specifically recognised the right of the workers to organise with a view to improving their conditions of work. That this also entails the granting of the right to strike is maintained by some *, though many dispute it, partly with reference to the similar legal situation arising out of the German Constitution 2 . Indirectly the right to strike is recognised by the I/abour Protection Act, as various of its provisions already mentioned show 3. For completeness it may be added here that during a labour dispute an employment exchange may not direct workers to the undertakings affected (section 73). The officials of the exchange, when trying to place a worker in employment, must first of all find out if a strike or lock-out is in progress in the undertaking. An official who offends against this provision becomes personalty responsible towards the Ministry of Social Affairs. On the other hand, an employef who in the course of a strike or lock-out procures the necessary workers through an employment exchange by means of false statements, against the provisions of the above-mentioned section 73 of the Act, is liable to punishment (section 124, (3) ) . The principle of the right to strike was however substantially affected by the Defence of the State Act of 1921. According to section 10 of this Act, officials, State employees, workers employed by military departments, and employees in independent administrative offices are punished if a considerable number or all of them go on strike. The participants are liable to imprisonment ; the promoters and ringleaders also to a fine. The same penalties are imposed on persons who by sabotage or passive resistance try to interfere with 1 PERIC : " Die sozialen und wirtschaftlichen Bestimmungen in der jugoslawischen Verfassung ". Schweizerische Zeitschrift für Volkswirtschaft und Sozialpolitik, 1925, Part II, p. 266. 2 KREK : " Grundzüge des Verfassungsrechtes des Königreichs der Serben, Kroaten und Slowenen ". Zeitschrift für osteuropäisches Recht, 1925, P- 356. 3 .See pp. 324 et seq. SERB-CROAT-SLOVENE KINGDOM 337 the regular progress of the service or work entrusted to them. These provisions of the Defence of the State Act show that although officials and State employees and workers have the right to associate for the protection of their material, social, and intellectual interests, they are deprived of the right to strike. The workers in private undertakings, on the contrary, still enjoy the right to strike under the Defence of the State Act. Reference should however be made to the provisions of this Act already mentioned which clearly tend, in particular section 12, to make the organisation of strikes impossible. In particular it should be remembered that under section 11 persons who try to prevent others from working are punished by six months' imprisonment, unless their action is such as to entail an even heavier penalty. If these persons do not immediately obey the orders of the authorities to leave the place in which they have unlawfully assembled, they are punished by imprisonment up to one year and a fine of up to 3,000 dinars. It is obvious that this provision may be easily used to prohibit strike picketing. Strikes are altogether forbidden, however, for workers in railways and mines, under the Orders of 15 and 24 December 1920, which provide for special measures in the event of a disturbance of order, a strike, or riot, in the undertakings in question. Compared with these restrictions, the regulations for limiting the use of militant action derived from Austro-Hungarian legislation hardly play any part 1 . ' Cf. the monographs to which reference has already been made. Freedom of Association 32 CONCLUSION When the law on trade associations at present in force in the Serb-Croat-Slovene Kingdom is surveyed as a whole, it will be seen to show two directly opposite tendencies, which determine the whole body of this law and its administration. It is unquestionable that, as the Serbian Industries Act of 1910 already shows, an attempt was made to effect social reform by way of legislation. In pursuance of this effort the new Kingdom has established a number of fundamental rights and social principles in its Constitution, and tried to complete the work of reform by the Labour Protection Act and other laws (Workers' Insurance Act, ratification of twelve International Labour Conventions). The trade associations participate in no small measure in the social institutions thus created, whether by virtue of the various rights granted them or because they have in fact the possibility of exerting influence. On the other hand, the Communist movement after the war led the State to pass the Defence of the State Act, which aims at suppressing, and therefore punishes, not only revolutionary activities, acts of terrorism and the like, but even the very idea of Communism. In addition, this Act extends the prohibition of strikes already contained in orders for the workers in certain State undertakings to all officials as well as- to other workers employed in State administrative undertakings, and at the same time makes strike picketing practically impossible. Another restrictive influence is that of the prevailing heterogeneity of the law, a phenomenon with which many other States consisting of several States or territories welded together are acquainted. The general law of the Kingdom (Constitution, Labour Protection Act) establishes principles in the main ; their application, on the other hand, is determined by the old laws taken over with the individual territories. Apart from the consequent inequalities and differences — in one part of the country there will be a number of SERB-CROAT-SI<OVENE KINGDOM 339 legislative principles, in others there are gaps — it is particularly unfortunate from the point of view of the law on trade associations that several of the special laws are derived from other systems and other days, and are therefore partly incompatible with the principles of the general law. Not infrequently, therefore, doubts arise as to if and how far they remain valid, and the result is general uncertainty as to the state of the law. In spite of this, these particular laws are still applied in practice, and in several parts of the country it is in fact the application of the old legislation on associations that has given the subordinate administrative authorities a means both of preventing the formation of trade unions and of dissolving existing unions if they are under Communist leadership. Measures of this kind, like the Defence of the State Act itself, are to be explained by the justifiable endeavours of the young State to maintain itself. But so far as they interfere with the freedom to associate for trade purposes and the freedom and rights of trade associations, it must be admitted that they contradict the principles of law established in the Constitution and other social legislation. It is easier to understand this opposition if the actual circumstances on which the law is based are also remembered. The principal occupation of the country is agriculture. Particularly in the newlyacquired territories large estates predominate, and these have not yet been broken up by a conclusive agrarian reform. Industry is on a comparatively small scale and often only in the first stages of development. Finally, in many districts a patriarchal handicraft system prevails. In these circumstances there is still a considerable lack of strong, well-established trade organisations which are able and willing to give life to the principles of law established theoretically, and to help in giving them effect by persistent hard work. This is only a question of growth, however, and there can be no doubt that the closer the national economy is interwoven with that of the rest of Europe, the more will conditions be created in which the existing principles will obtain greater practical application and their enforcement will be secured by uniform legislation. With the greater security of the State and stability in industry, the last obstacles will disappear that still hamper a freer organisation of trades, and in particular of labour. BIBLIOGRAPHY CENTRATIMI SEKRETARIAT RADNIÍKIU KOMORA. Radnicki Sìndìkaìi. Belgrade, 1926. JOVANOVITCH, Slobodan. Svetozar Markovitch. Beigrade, 1920. Ustavno pravo Kraljevine Srba, Hrvata i Slovenaca. Beigrade, 1924. KREK, Professor G. " Grundzüge des Verfassungsrechtes des Königreichs der Serbien, Kroaten und Slowenen ". Zeitschrift für osteuropäisches Recht, 1925, pp. 323 et seq.; 1926, pp. 86 et seq., and 249 et seq. KREKITCH, I,. Srpska radnicka Udruzenja. Belgrade, 1921. LAPSCHEVITCH, Dragischa. Sindikalno jedinstvo ili komunistesocialiste-social-demokrate-sindikati. Beigrade, 1927. Polozaj radnicke hlase i sindikalni pokret u Srbiji. Beigrade, 1928. MARCOVITCH, Dr. Lazare. Le problème constitutionnel serbo-croateslovène. Geneva, 1924. MOUSSET, Albert. Le Royaume des Serbes, Croates et Slovènes. Paris, 1921. NEDEIVKOVITCH, Milorad. EAat économique et financier du Royaume des Serbes, Croates et Slovènes au commencement de 1924. Paris, 1924. PERIC, Professor Z. " Die sozialen und wirtschaftlichen Bestimmungen in der jugoslawischen Verfassung ". Schweizerische Zeitschrift für Volkswirtschaft und Sozialpolitik. Vol. XXXI (1925), Part II, pp. 263 et seq. PoPOViTCH, Stevan S. Les corporations de métiers et les chamares consultatives en Yougoslavie. Paris, 1923. BULGARIA CHAPTER I HISTORY AND PRESENT SITUATION OF THE TRADE UNION MOVEMENT T h e Bulgarian trade union movement did not acquire any strength until t h e beginning of t h e twentieth century. T h i s backwardness is to be explained by t h e economic conditions peculiar to Bulgaria. During t h e whole of t h e nineteenth century, t h e basis of t h e national life was agriculture — a n d this is still very largely t h e case '. I t was t h e handicrafts rather t h a n modern undertakings properly so called — large-scale industry still employs little more than n per cent, of t h e total population — t h a t formed t h e industrial complement to this essentially rural economy. T h e result was that t h e first trade organisations were formed within t h e crafts. Until quite recently these craft associations, which were mixed organisations comprising both employers and workers, retained not only their external characteristics, b u t also, and above all, certain privileges of t h e guilds under t h e old regime. A m o n g these privileges t h e associations tried t o keep a t least one, which they considered the most important, namely, the monopoly of labour. T h i s atti' The most recent occupational statistics for Bulgaria show that 75 to 80 per cent, of the active population are employed in cultivating the land. Estates, whether built on or not, are highly subdivided. It is estimated that 97 per cent, of the rural population live on their own land. Of the total 933,367 estates, covering an area of 4,625,787 hectares, 424,898, or 45-5 P e r cent., are smalholdings of less than 2 hectares, covering only 321,568 hectares, or 6.9 per cent, of the total area. The large and very large estates, on the contrary, cover rather more than half of the total area and are owned by only 10 per cent, of the total number of landowners. (Cf. INTERNATIONAL Labour Service in Bulgaria. Series B. No. 12, p. 13.) LABOUR By Max LAZARD. OFFICE : Compulsory Studies and Reports, 342 FREEDOM OF ASSOCIATION tude is clearly illustrated by a resolution adopted by the Guilds Congress in 1906 : " The Congress asks the Government to abolish the workers' right to strike and demonstrate, land to make it compulsory for the workers' unions to join the guilds. " But the days were past in which such an attempt could meet with success. With the development of large-scale industry and the growing separation of the classes, independent workers' unions had been formed, which aimed at defending the independence of their movement against all outside interference. § 1. — The Workers' Trade Union Movement * The first workers' trade unions were formed under the influence of the Socialist Party. As the child, so to speak, of the political party, the trade union movement was subsequently to share its fate. It first suffered from the effects of the split in the Socialist Party in Í902. The right trade union wing supported the reformist fraction, and thé left wing rallied to the revolutionary fraction. This collaboration continued until the Communist Party and the trade union movement were prohibited. In spite of this interdependence between the political and trade union movements, and the consequent conflicts of views, the trade associations developed rapidly, not only among wage earners in industry, but also, and above all, among State officials and workers. A first setback in this process of growth was suffered during the war period 1912 to 1918. The Armistice, however, inaugurated an active revival. It was of capital importance to the future fate of the trade union movement that the revolutionary unions in particular profited by the revival, and this to such an extent that they succeeded for a time in absorbing the reformist unions. The disastrous issue of the war, the failure to balance the budget, currency difficulties, the weight of the reparations debt, economic instability, the general impoverishment of the population, as well as the profound repercussion of the Russian revolution on Bulgaria, were some of the principal factors explaining the new tendency of the greater part of the trade union movement in favour of Com1 For further details, cf. Dim. NIKOLOFF : " The Trade Union Movement iu Bulgaria ". International Labour Review, Vol. XVI, No. 5, pp. 670-692. BULGARIA 343 munist ideas and acting as a prelude to the events which were for a certain time to put a stop to all trade union activity. In December 1919 the Government prohibited a public demonstration organised by the trade unions. This incident was enough to let loose a strike of all the workers' organisations. The workers' unions, whatever their views, were not alone in going on strike ; many grades of employees in public services also took part, and it was two months before the movement could .be repressed. This defeat left the trade union movement weakened and disorganised. But the setback became a starting point for trade union reorganisation, from the point of view of methods as well as of programme. In the light of recent events, the leaders of the revolutionary trade union movement considered that unless the activities of the increasingly centralised movement were subordinated to the political party, it could not be successful. They accordingly gave up altogether the system of independent unions, and adopted instead a strongly centralised structure, subordinate to the Communist Party. It was precisely this strict subordination that, by hampering trade union unity, was later to endanger the very life of the whole trade union movement in Bulgaria. Thus, when the Agrarian-Communist revolt of 1923 was suppressed, the General Federation of Communist Trade Unions, in spite of proclaiming its independence of all political parties in October 1923, was included in the judicial proceedings, and dissolved at the same time as the Communist Party. Since then the dissolved unions have been reconstituted only with the greatest difficulty and under cover of a new form of organisation. A few statistics will give some idea of the strength of the different tendencies in the Bulgarian trade union movement. (1) The General Federation of Trade Unions comprised, before it was dissolved in 1923, the large majority of organised workers. The membership of the nineteen unions belonging to this organisation was as follows in 1923 : Trade union Actors, musicians and theatrical workers Bank clerks and commercial employees Hairdressers Public administrative employees Woodworkers . Food workers and chemical workers Workers in the printing industry and allied trades . . Hotel and restaurant workers Leather workers Membership 340 1,220 200 2>390 I1O50 2,250 560 900 1,000 344 FREEDOM OF ASSOCIATION Trade union Membership Nurses Metal workers Miners Clothing workers Workers in agriculture, forestry and horticulture . . . Building workers Textile workers Tobacco workers Transport, railway, postal and telegraph workers . . . Teachers . . . . 550 1,630 2,400 2.390 1,030 1,380 ii57o 3,720 4,360 2,520 T h e General Federation could also count on the support of a wellestablished network of mutual-aid a n d co-operative societies. T h e Osvobojdenie W o r k e r s ' Co-operative Union, with its membership of 70,000, was dissolved at the same time as the General Federation of T r a d e Unions. (2) T h e Bulgarian General Trade" Union Federation, consisting cf t h e reformist unions, had in 1923 only 3,000 members divided a m o n g forty-seven unions. T h i s federation is now on t h e point of replenishing its membership and is winning over for its affiliated unions, which have retained the right to existence, former members of the dissolved unions. According to the information supplied by the Secretariat of the International Federation of T r a d e Unions of Amsterdam, t h e F r e e General Federation had about 15,000 members in 1926. (3) I n spite of certain attempts made on various occasions, a n d particularly in 1919, to found a n agricultural workers' union, the agricultural workers have not succeeded in founding a well-established organisation. Owing to the difficulties of organisation d u e to the wide dispersion of the agricultural proletariat, a n d above all to the general lack of education and trade consciousness, the few agricultural unions formed since the war have h a d to decide on their own dissolution \ Instead of the unions, it m a y be said that t h e agricultural co-operative societies, worked on trade lines for the different branches of cultivation, embody and defend t h e common interests of poor farmers a n d agricultural workers. I n 1925 there were 1,603 agricultural co-operative societies, with a total membership of 186,413. (4) D u r i n g the last few years attempts have been made both by the authorities and by the heads of industry, to counteract t h e revolutionary trade unions by neutral unions advocating co-operation 1 Cf. Dim. N I K O L O F F , op. cii., p. 672. BULGARIA 34? between capital and labour. So far, a few neutral unions with very small memberships have been formed under the auspices of the p a r t y in power since 1923. (5) T h e trade unions of State employees and workers in public services, on the contrary, are many a n d well organised. A t the moment, apart from a few unions which still share the views of the reformist unions, a n d others which used to belong to the Communist trade union movement, practically all these unions have joined to form a central body k n o w n as t h e Federation of Nineteen Unions, which m u s t be regarded rather as a temporary ad hoc arrangement t h a n as a permanent organisation. I t s membership in 1925 was about 30,000. (6) Finally reference should be made to the unions of the liberal professions, which, t h r o u g h their executive committee, belong t o the International Confederation of Intellectual W o r k e r s . § 2. — The Employers' Movement A t t h e outset, the chambers of commerce and industry, which were given a privileged legal status a n d benefited b y a t a x levied in their favour on the whole population, undertook the defence of the interests of employers. On their initiative meetings were held periodically, at which the interests of a given branch of industry or commerce, or of all u n d e r t a k i n g s as a whole, were discussed, and t h e necessary measures taken for their protection. I t was only comparatively late, and then under the direct pressure of the workers' combinations, that employers' associations were founded and solidly organised. T h e following particulars on t h e origin and programme of the employers' associations are taken from a report published in 1923 by t h e Union of Bulgarian Manufacturers. Tt was in 1003 that Bulgarian employers began to organise themselves by creating the Union of Manufacturers, the object of which was to defend the moral and material interests of Bulgarian industry. Twenty vears afterwards 405 undertakings covering fourteen industries were affiliated to the Union. The development of the Union of Bulgarian Manufacturers is a faithful reflection of the progress of the industrial movement in Bulgaria. In 1905 the membership of the undertakings benefiting by the Act on the protection of national industry was only io5 ; in 1911 the number was 400. Ten years afterwards, when the Statistical Department was conducting its enquiry into the economic situation, it was able to note 1,641 undertakings employing more than twenty persons each, and employing in all more than 55,000 workers. Since its creation the union has worked in close collaboration with the various official committees set up to consider problems affecting 346 FREEDOM OF ASSOCIATION national economy. By means of its proposals and protests, it has made an effective contribution to the protection of Bulgarian industry in general. From 1905 onwards the Union took an active interest in labour legislation. It was about this time that the earliest Acts for the protection of women and children in industry, the weekly rest, and social insurance were discussed. In this connection the Union has always taken the view that since Bulgaria is essentially an agricultural country, she should not hastily found her legislation on that of countries which are more advanced from the industrial point of view. This was the main reason for the Union's hostility to the Royal Decree of 1919 establishing the eight-hour day in Bulgaria. When the proposal for ratifying the Washington Convention came up for discussion in Parliament in April 1921, the Union showed itself frankly opposed to the measure. In the explanatory remarks on the subject forwarded at the time to the Ministry of Commerce, Industry, and Labour, the Union emphasised the fact that Bulgaria could not make up for the time lost as the result of the limitation of hours of work. by introducing better equipment, and that the Bulgarian worker had not the same capacity of output as the workers in more industrially advanced countries *. I n addition to the Central Organisation of Bulgarian Employers, t h e r e are also t h e following employers' associations : t h e Commercial Union, with thirty independent associations, the P r i n t i n g Union, the Millers' Association, the Dispensing Chemists' Association, the Librar i a n s ' Association, and the Association of Joint Stock Companies, which has 153 members. A t present practically all employers, w h e t h e r physical persons or bodies corporate, belong to an association. 1 " Report on the Activity of the Union of Bulgarian Manufacturers from 1903 to 1923. " Industrial and Labour Information, Vol. XIII', Nos. 6-7, pp. 243-244- CHAPTER I I CONDITIONS OF EXISTENCE OF TRADE ASSOCIATIONS § 1. — Legal Status T H E CONSTITUTIONAL PRINCIPLE The Bulgarian Constitution of 16 April 1879 in Chapter IX, Articles 82 and 83, establishes the rights of assembly and association. The inhabitants of the Kingdom of Bulgaria shall have the right to assemble peacefully and unarmed for purposes of free discussion, without being bound to ask for previous authorisation. Only*open-air meetings shall be subject to police law (Article 82). Bulgarian citizens shall have the right to constitute associations without any previous authorisation, provided that there is nothing in their aims and methods contrary to public order, religion and morals (Article 83). Both adversaries and partisans of the trade union movement are agreed that the reservation contained in this last Article, by which the right to found associations is subordinated to the condition that they shall not be contrary to public order, religion or morals, does not apply to trade associations whose only object is to protect class interests. Yet, at the outset, the trade unions properly so called were not covered by the liberal provisions of the Constitution. It seems, in fact, that the principal preoccupation of the Constituent Assembly was to safeguard the political rights that had recently been acquired, and that it paid no attention to trade associations, which at that time were still unborn and were only to be called to life in the course of subsequent economic developments. This was why, contrary to the constitutional principle which guaranteed the right of association in every field, judicial proceedings were taken against the first independent workers' unions. It was not until later, when the trade union movement had established itself as a new social fact, that 348 FREEDOM OF ASSOCIATION the benefit of Articles 82 and 83 of the Constitution was extended to all associations indifferently, including trade associations. If only the Constitution is taken into account, the legal position of trade associations in Bulgaria to-day may be summed up as follows : there is no limitation on the right to found trade associations, no restriction as to the persons who may claim trade union rights, and no reservation as to the aims a trade association may lawfully pursue. Moreover, associations are exempt from all previous authorisation and subsequent supervision. Finally, the Constitution leaves them entirely free to regulate the conditions of admission and exclusion of members, the methods of internal discipline — in brief, all questions relating to the constitution, working, and dissolution of the association. But owing to the adoption of several Acts, increasingly severe restrictions have been applied to the status of trade unions so defined, which seemed all the more certainly safeguarded because based on the fundamental law itself. Some of these Acts limit the right of association for trade purposes of certain social classes only, such as officials and State employees; others, on the contrary, modify the legal status of trade associations in general. T H E A C T ON COMBINATIONS OF OFFICIALS (1907) Under the liberal provisions of the Constitution, the trade associations h"ad recruited many members among officials and employees in public services. In consequence of the first general railway strike in 1906, however, the Government introduced an Act on the combination of officials, which entailed a first limitation on the general principle established by the Constitution. By this Act, officials and employees of the State and public departmental or communal institutions, while having the right to found associations for purposes of thrift, co-operation, mutual aid and recreation, and to create benevolent and economic institutions, were prohibited from taking part in any other associations described as trade unions (sections 1-3). If the associations founded by State employees take the form of a co-operative or provident society, their rules must be submitted for ratification to the departmental court, and, if they take some other form, to the competent Minister (section 2). The departmental court orders the dissolution of any society that does not comply with the îaw. Whenever an authorised society departs from the limited ends 349 BULGARIA defined in its rules and pursues other objects, such as participation in a strike, incitement to a strike, resistance to thé provisions of the Acts or regulations of the authorities, wage demands, or revolts against the constitutional system, it is dissolved and its property liquidated by the departmental court concerned. Proceedings for dissolution may be taken either by one or more members of the society, or by the public authorities or the Public Prosecutor's Office (section 6). These provisions meant that officials were not merely deprived of the right to strike, but also of the right of peaceful combination, for they were prohibited from using their associations to bring even peaceful pressure to bear on the authorities with a view to improving their economic situation. The result was that, in spite of the 1907 Act, State employees joined the workers' organisations and, for instance, took an active part in the generaf strike of 1920. The Government seized this opportunity again to control the right of association of public employees by devoting a Chapter of the Act of 28 January 1922 on State employees to this subject. STATE EMPLOYEES' A C T (28 JANUARY 1922) In one respect this Act meant a certain relaxation compared with the provisions of the 1907 Act, because it authorised peaceful combination, but, on the other hand, it strengthened the supervisory measures and increased the penalties. By section 85, State employees — except those belonging to the police, the gendarmerie, and the army — have the right of free association for purposes of mutual aid and the protection of their trade interests, on condition that they belong to one and the same service or to various services in one and the same department. In other words, employees in the army, the gendarmerie, and the police may not organise for trade purposes, and other employees have the right of association provided that they observe the rule of occupational delimitation. Like the 1907 Act, the 1922 Act forbids the trade organisations of State employees to join any kind of labour federation or confederation, and limits their freedom of action. Section 81 prohibits State employees from taking part in political demonstrations or any other kind of political action. Section 82 forbids them to 35° FREEDOM OF ASSOCIATION strike or incite to a strike, to engage in anti-constitutional propaganda, or to take part in demonstrations against the authorities. Severe penalties are imposed for contravention, the offenders being liable to a fine of 2,000 to 5,000 leva or one year's imprisonment. Persons who, after the dissolution of the society or union, continue to act in its name are liable to the same penalty (section 82, last paragraph). The Act also organises strict supervision over the constitution and working of officials' associations. Section 86 makes it compulsory for the founders of any such association to submit the rules and list of members of the managing committee to the departmental court for ratification. Once the rules and the list have been approved, they are then submitted to the competent Minister. A similar procedure must be followed for any subsequent alterations. Under this Act, ¡officials' associations have a certain measure of legal personality. According to section 87, they may receive donations and legacies, own property, collect contributions, and sue and be sued in court. T H E SCHOOLS AND SOCIETIES A C T (3 JULY 1922) The Acts of 1907 and 1922 had limited the right of association only for State officials and employees. The Act on schools and societies, passed in the same year, applies, on the other hand, to all trade associations. This Act was adopted on the initiative of the Inter-Allied Military Commission " to allow of the introduction of a general supervision over all societies and schools, in order to prevent the carrying on of military propaganda under the cover of associations ". Under section 2 of this Act, every society and association, regardless of name and aims, must submit its rules and regulations for ratification to the Ministry of the Interior before it is in a position " to act ". The failure to carry out this formality is . deemed to be an offence under section 3, which does not however state the penalties to which the offenders render themselves liable. It should be added that section 2 appears to be directed only against the freedom of action of associations, and that the freedom to found associations, as guaranteed by Article 83 of the Constitution, remains unaffected \ 1 See below, p p . 354 et seq. BULGARIA 35» A C T S FOR THE DEFENCE OF THE STATE All the Acts so far analysed were carried under the pressure of special political and social circumstances. The disturbances provoked during 1923 by the Agrarian-Communist revolt also gave rise to a new Act, the Defence of the State Act of 21 January 1924. Section 1 of this Act prohibits all organisations and political or economic bodies, as well as their branches, which, in order to achieve their ends, have recourse to criminal acts, violence or terror, or advocate the use of these means. The founders and organisers of such associations are punished by imprisonment of up to fifteen years and a fine of up to 500,000 leva. The ordinary members of such associations are liable to imprisonment for five years with a fine of 50,000 leva. These penal sanctions are coupled with heavy civil sanctions. Section 14 states that members of these societies and the societies themselves are jointly and severally liable to the extent of their property, and even of that held in the name of third parties, for all the damage and civil losses due to their criminal action. Section 15 excludes from public employment any person who, even if he does not belong to such an association, supports it in any way. Section 16 defines the methods of enforcing the Act. The Minister of Justice requests the Criminal Section of the Court of Cassation to make an enquiry. After a thorough examination, the Court proceeds, if need be, to dissolve any existing or newly created organisations covered by section 1, and their groups or branches, under whatever name they may be concealed. The property of the dissolved organisations, their branches and financial bodies, is confiscated for the benefit of the State. The Act of 21 January 1924 was amended and made even stricter by the Act of 10 March 1925. According to section 1 of this new Act, any organisation or body that tries by force to alter the social and political system established by the Constitution is prohibited. The founders and organisers of such an association are punished by ten years' hard labour at least, and a fine of from 50,000 to 500,000 leva. Section 7 prohibits all revolutionary propaganda by word of mouth or in the press : " Any person who, by word of mouth or in the press, engages in propaganda for the change of the political or economic system, by inciting to the commission of crimes, violence or attacks, shall be punished by not less than five years' hard labour and a fine of 50,000 to 500,000 leva ". 35* FREEDOM OF ASSOCIATION T h e publications referred to in this section are confiscated on the order of t h e Public Prosecutor. Even before t h e Prosecutor intervenes, the police m a y take a n y useful action for their suppression. provided, however, that the Prosecutor's Office is immediately notified (section i o ) . Section 13 imposes the death penalty on any member of an armed band w h o proposes to commit crimes against the security of the State. Finally, section 20 excludes all persons guilty of contravening these provisions from all political and social posts : No person belonging to an organisation or group prohibited by this Act, or indirectly collaborating with it, and no person who supports violent methods in political and social conflicts, may hold public office in the State, a department or a commune, or be a member of the National Assembly or any independent elected body. If any such person holds office in the State, a department or commune, he shall automatically lose his position. It shall be the business of Parliament to take a decision as regards deputies. On the other hand, it shall be the business of the Court to decide as regards general and municipal councils. § 2. — T h e System in Practice Such, in brief, is the legal status of trade associations. But in practice, the provisions of the Constitution on which their legal existence is based are applied t o them less t h a n the special and exceptional laws analysed above. I t was thus in virtue of the Defence of the State Act that t h e Court of Cassation, in its decision of 2 A p r i l 1924, ordered the dissolution not only of the Communist P a r t y , but also of the Osvobojdenie W o r k e r s ' Co-operative Union and t h e General Federation of T r a d e Unions. As this decision was of t h e greatest importance to the subsequent development of trade unionism in Bulgaria, we reproduce below, without comment, the principal g r o u n d s on which the Court based its order to dissolve the General Federation of T r a d e Unions. The Minister of Justice, by his request for an enquiry of 7 March 1924, asked for the dissolution of the General Federation of Trade Unions. In order to ascertain the character and aims of the Federation, its relations with the Communist Party, the nature of its organisation and the means it employs, the appended files and documents must be examined. According to Article 1 of its rules, the Federation consists of trade unions, all of which pursue the following end: By means of the class war and the establishment of the workers' dictatorship, to achieve the conquest of public authority, the socialisation òf private property, and the socialist organisation of the production and distribution of goods. BULGARIA 353 Among the means to be used for arriving at this end, the rules provide for the co-operation of the General Federation with the Communist Party, for the purpose of their joint protection of the general interests of labour, whether in certain special localities or throughout the whole country. According to these same rules, the General Federation of Trade Unions will take, in concert with the Communist Party, the initiative for all measures likely to promote the trade and general interests of the workers. The General Federation enters into the international Communist organisation, regularly fulfils all its obligations towards this body, and sends delegates to its congresses. It follows from all this that this Federation is not merely a trade organisation; it is also political, in the same sense as the Communist Party. It pursues the general aims of this Party, makes use of the same revolutionary methods, and is therefore merely an organ of the Communist Party. The resolution of the Fourth Congress of the Communist Party, dated 7 July 1922, a resolution which was binding in character, says among other things : In face of the difficulty of enforcing the workers' minimum demands (more bread and a better standard of life), and in view, above all, of the economic disorganisation and financial bankruptcy of the State and the fundamental crisis of the present regime, the trade unions must press for the victory of the general revolutionary programme, i.e. the suppression of the capitalist system by the dictatorship of the proletariat. The Communist Party supports the trade unions because it considers them schools of training in Communism. The end of this resolution says, word for word : In this way the trade unions are prepared to play their part in the field of social and economic reconstruction in the future, at the same time as they fortify the structure of the workers' party, and ensure victory in the struggle for the material emancipation of the masses and the complete triumph of the Bulgarian revolution. The Communist Party considers the trade unions to be an active, organised force, a sort of institution for propaganda and agitation in favour of the victory of revolution in Bulgaria by the institution of the workers' dictatorship. Valuable information is to be found in the circular of 30 July 1923, published by the General Federation of Trade Unions and signed by its secretary. In anticipation of an act of violence then being prepared (the disturbances of September 1923), this circular contains instructions on theorganisation of the workers' trade unions with a view to the new conditions of conflict and risk. The Federation therefore assumes the aspect of a conspiratorial organisation. All this constitutes sufficient reason for admitting that the General Federation of Trade Unions Í9 entirely dominated by the Communist Party, and proposes to assist it actively in its revolutionary doings. The Rabotnichesk Vestnik, a workers' daily,' served as an organ at once for the Communist Party and the General Federation. A strong organisation, comprising eighteen trade unions with over 30,000 organised members, would certainly have had its own organ if it did not wish to further the designs of this Party and prepare for the revolution as a means of attaining its end, this being contrary to Article 83 of the Constitution. The declaration of the General Federation of Trade Unions of 1 December 1923, proclaiming the political neutrality of the trade union movement and affirming that this is in future to be confined to the defence of the workers' trade interests by lawful methods, is belated and worthless, in view of the formal provisions of its rules and the decisions of Freedom of Association 23 354 FREEDOM OF ASSOCIATION previous congresses. The proposals for an alliance submitted to the free trade unions, for the purpose of creating a single trade union organisation comprising the whole working class on trade grounds alone, can only be described as an act of hypocrisy. It follows from all the facts already cited that the General Federation is merely a branch of the Communist Party and ought to share its fate. In virtue of sections i and io of the Defence of the State Act and in conformity with Article 83 of the Constitution, the General Federation and all the affiliated societies are dissolved and their property confiscated for the benefit of the State. T h e s e were the g r o u n d s on which the Court of Cassation based its decision. It will be remembered, as the decision itself recalls, t h a t already in October 1923 the trade unions had proclaimed their complete independence of all political parties, and asserted their intention of in future confining their activities to trade matters alone. I n spite of this declaration, the trade unions do not yet seem to have recovered their civil r i g h t s . Accordingly, on 3 November 1924, the dissolved organisations decided to protest to the Government, the political parties and the Court of Cassation, against the refusal of justice from which they claimed they had suffered. T h i s protest *, which disputes the validity of the refusal to recognise t h e unions, and depicts the consequent situation of t h e trade union movem e n t , r u n s as follows : Alarm reigns among the workers. The right of combination established by the Constitution is in danger, for the Minister of the Interior has not approved the rules of trade unions submitted to him during the last month and a half. He has even given to understand that he will never approve them. Now, the only defenders of the material and intellectual interests of the workers are the trade unions. This may be proved by a few figures for 1919 to 1922. The workers' organisations assisted 109,644 strikers at a cost of 2,778,208 leva. In addition, 8,220 sick members, victims of accidents, unemployed members and others, were relieved at a cost of 772.753 leva. Moreover, it is solely by the work of the trade unions that labour legislation can be applied in practice. Most visits of labour inspection are made under the pressure of these unions. Now, the Constitution and other national laws guarantee the right of the workers' organisations to free existence, and make no kind of provision for measures to supervise and restrict their activities. In complete contradiction with the Constitution, the Minister of the Interior has issued a new Ordinance, by which all organisations, societies, etc., must submit their rules for his approval The Ministry of Commerce, Industry and Labour has approved only the rules of the Union of Leather Workers and the Printers' Union. The 1 The protest was signed by the following organisations : the unions of metal workers, tobacco workers, wood workers, tailors, leather workers, bank and commercial employees, food workers, miners, building workers, agricultural, forestry and horticultural workers, hairdressers. BULGARIA 355 rules of other unions, on the contrary, have been referred to the Ministry of the Interior, but for the present they will not be approved because the unions in question formerly belonged to the General Federation of Trade Unions, now dissolved under the Defence of the State Act. It is true that the trade unions belonged to the General Federation as collective members, but the Court of Cassation dissolved only the Federation and not the workers' organisations taken individually. These latter are entirely independent. Thus the Union of Hotel and Restaurant Employees, for instance, has been in existence for twenty years, and it was not until 1919 that it joined the General Federation of Trade Unions. The Union of Workers in Transport and Communications, on the other hand, seceded from the General Federation in 1920. The Union of Public Administrative Employees and the Teachers' Union, which joined the Federation in 1919, left it at the beginning of 1920. Further, all the trade unions stated that they had broken with the General Federation, and this they did on 10 October 1923, before the Defence of the State Act was promulgated and before there had even been any idea of dissolving the Communist Party and affiliated bodies. These organisations stated at the time that they proposed to exist independently, and they proceeded to make the necessary changes in their rules. It may be added that since February 1924, the Union of Workers in the Book Trades has amalgamated with the printers' group affiliated to the Democratic Coalition Party *. It is evident that the trade unions are neither subdivisions nor organic parts of the dissolved General Federation of Trade Unions, but merely collective members. Moreover, the decision of the Court of Cassation specifies only the Communist Party and its subdivisions : the C o m munist Youth, the Osvobojdenie Co-operative Society, and the General Federation of Trade Unions, no mention being made of any of the workers' trade unions. The best proof is that the latter continued to exist for eight months after the dissolution of the General Federation. At Sofia and elsewhere the public authorities have even allowed them to hold public meetings. The unions have directed, and still direct strikes, edit papers, and have their offices. They are therefore not affected by the decision of the Court of Cassation. There is yet another argument. If the organisations were prohibited, why has the Ministry of Labour approved the rules of the Union of Leather Workers ? And why then should the Ministry of the Interior decline to come to a similar decision as regards the other unions which have been waiting for the approval of their rules for weeks and months ? Formerly 7 to 8 per cent, of the membership of the unions belonged to the Communist Party. At present they are completely neutral. Their members may hold the most diverse political opinions, and as a matter of fact, they belong to the most various parties: Democratic, Radical, National-Liberal or Democratic Coalition, etc. For instance, the president of the Hotel and Restaurant Employees' Union is a National-Liberal, and the president of the Printers' Union belongs to the Democratic Coalition. This fact proves that the unions cannot serve as spokesmen for the Communist Party. Organisations which are open to all wage earners and are therefore neutral, cannot, however, be responsible for the opinions of their members outside the organisation. The attitude of the Ministry of the Interior towards trade organisations should be considered in relation to the general attitude of the present Government towards the organised working class. Since 9 June 1923 the unions have been deprived of the right of assembly, except in Sofia, where, however, meetings are held in the presence of the police. The archives and property of the unions have 1 The Government Party. 356 FREEDOM OF ASSOCIATION been confiscated, their leaders have been arrested, prosecuted and imprisoned, as for instance, the secretary of the Textile Workers' Union, Mr. N. Dantcheff, who was imprisoned for two months, then set free on bail of 10,000 leva, but was soon after rearrested. The trade union press is also confiscated and prosecuted by the authorities. The police favour employers in labour disputes, as recently happened at Varna, Gorna, Orehovitza, Plovdiv, Slivno, etc. Strikers, for instance those at Haskovo, have been threatened with prosecution as bandits. What is the effect of the present Government's policy on the working class ? In 90 per cent, of all factories and workshops the eight-hour day has been suppressed. The cost of-living has increased by forty times since the war, whereas wages have only risen by fifteen to twenty times. The employers take advantage of unemployment as a means of reducing wages. Conditions of work have been aggravated, and the employment of women and children is a matter of shameless exploitation, etc. It is absurd to claim that by prosecuting and suppressing trade organisations, the conflict between capital and labour will be abolished. On the contrary, the struggle will be carried on by the workers in their own way and with whatever means they have. Without trade organisations there is a risk that labour disputes will degenerate into riots. Yet again we emphasise the fact that the allegations made in certain official and Government quarters, that the Communist Party hides behind the workers' trade unions, are absolutely false. The rules and archives of these unions are in the hands of the authorities. We challenge them to produce at least one fact or one document proving that the unions have had any part in the insurrection of last September or in any other illegal acts since that date. Thirty-five thousand organised workers in trade unions and hundreds of thousands of other workers protest against the fact that their rights of combination, publication, assembly, strike, etc., have been suppressed. We know in advance that those responsible will protest against the accusation that they are opposed to the trade union movement, and will cite the complete freedom and eveu assistance granted by the Government to the Socialist-Reformist unions. Nevertheless, we affirm that the workers keep away from these unions, and that both organised and unorganised workers will never enter the Socialist unions, which are party organisations. The workers' unions, in submitting the above memorandum to the institutions and bodies concerned, together with the whole working class, expect that the authorities will adopt an unequivocal attitude on the great social question of the right of combination of workers and salaried employees, a right held by the trade associations for twenty-five years. I t should be observed, however, t h a t only the General Federation of T r a d e Unions and the various bodies affiliated to it were, and still are, prohibited. On the other h a n d , there has been n o limitation of the trade union rights of other trade organisations. I t should also be added t h a t the rules of several unions formerly belongi n g to the prohibited Federation, which have been reconstituted as independent unions, have since been legally recognised. CHAPTER III POSSIBILITIES AND LIMITS OF TRADE UNION ACTION § 1. — Collaboration of Trade Associations with the State in Social Affairs Trade associations in Bulgaria are without legal personality. But this absence of legal recognition under a special Act has not prevented the State from giving some measure of recognition to such unions as have not been dissolved, as the qualified representatives of trade interests, and from calling on them to take part in the preparation, administration and supervision of social legislation. In the first place, the trade associations share in the work of preparing social legislation, because they are represented on the Superior Labour Council. This body was set up by the 1917 Act respecting the health and safety of workers. It was modified in 1924 in consequence of the Social Insurance Act, precisely for the purpose of giving the class associations their own representatives on the Council. Since this last reform, eight workers' and eight employers' delegates, appointed by the Minister of Commerce and Industry on the recommendation of the workers' and employers' organisations, take part in the work of the Council as representatives of industry and commerce, handicrafts, mining, transport, and State services. The Superior Labour Council plays a most important part in the preparation and administration of social legislation in Bulgaria. All Bills relating directly or indirectly to labour are first submitted to it for approval. The Labour Section, which was set up in the Ministry of Labour, and is itself an institution of the Superior Council, submits an annual report on the working of the social insurance system. Within the Superior Council itself, a permanent committee is elected, which must be consulted on all questions relating to insurance, and the administration of labour laws in general. The administration of the more important social laws is to some 358 FREEDOM OF ASSOCIATION extent entrusted to the trade associations. Thus, by the Act of 6 March 1924 ', on social insurance, fairly generous provision is made for the collaboration of these associations. They belong to the committees responsible for assessing the degree of disablement in cases of accident, take part in the work of the local insurance offices, and finally, are represented on the central committee whose duty it is to fix and revise pensions. The Act of 12 April 1925 respecting employment exchanges and unemployment insurance 2 also provides for the representation of trade associations on the various executive bodies. The employment offices set up by this Act in large towns and localities with a population of over 3,000, and the local employment offices all comprise an employment exchange and unemployment section, a social insurance section and a vocational training section. Section 11 of the Act provides for the appointment, in connection with every local employment exchange, of an arbitration court consisting of one justice of the peace as chairman, and two members, one representing workers and one employers. These representatives are proposed by their respective local organisations, and their appointment is confirmed by the Minister of Commerce, Industry and Labour. The arbitration court decides in all matters relating to employment exchange work, the dismissal and engagement of workers, the payment of wages and the carrying out of the rules of employment in an undertaking — all questions of the first interest to the security and stability of employment of the workers. Provision is further made for trade representation in the labour councils attached to each employment exchange, whose principal work is to take all useful measures for preventing or reducing unemployment. These councils consist of the labour inspector as chairman, the manager of the employment exchange, a member of the departmental council, the mayor or his deputy, the chief local officer of the technical authorities, the senior communal medical officer, a representative of the chamber of commerce and industry in the district of which the exchange is situated, and three employers' and three workers' representatives nominated by their respective local organisations. Finally, the law allows the trade associations to exercise a certain supervision as regards the administration of social legislation 1 INTERNATIONAL LABOUR OFFICE ' Ibid., 1925, Bulg. 2. : Legislative Series, 1924, Bulg. 1. BULGARIA 359 by means of the institution (under the 1917 Act on health and safety). of assistant labour inspectors elected directly by the workers concerned. I t should be added, however, that this provision has not yet been carried out in practice \ § 2. — Legal Limitations on the Activities of Trade Associations (Collective Disputes) I t is principally in connection with collective disputes that the law fixes certain limitations on trade union activity. These m a y be examined from t h e points of view of penal law, civil law, and administrative law i n t u r n . LIMITATIONS UNDER P E N A L L A W Strikes (lock-outs), whatever t h e form they take, economic strikes or sympathetic strikes, or even political strikes, are no longer a n offence. But, although the principle of the right of strike or lock-out is established in law, it is, in fact, strictly limited by regulations guaranteeing t h e r i g h t to work. Section 298 of t h e P e n a l Code, which punishes the offence of interference with the r i g h t to work, r u n s : Any person who is guilty of threats or violence for the purpose of hampering the freedom of commerce, industry, trade, or work shall be liable to imprisonment of not less than six months. Acts of simple intimidation shall be treated as threats. If the threat consists in a simple. order, invitation or proposal, without reference to a concrefe interest, but the circumstances or motives may produce a legitimate fear in the threatened person, the penalty of imprisonment shall not be less thani three months. If a physical injury is caused by violence, the imprisonment shall not be less than one year. If the act of violence or threat is performed by a collective body, the instigators and leaders shall be punished by imprisonment of three years, and the rest one year. If the body or the persons belonging to it are armed, the penalty for the instigators and leaders shall be five years, and for the rest three years.; In accordance with the above provisions, the same penalties shall be imposed on persons who, in pursuit of their aims, or, with a view to' enforcing the demands of others by violence or threats, interfere with the free circulation of public transport or goods. In all these cases the guilty persons shall be jointly liable for the damages caused, even if the instigators have not directly taken part in the commission of the offence. Section 300 of the Penal Code deals in particular with workers' strikes. 1 Cf. Ilia YANOULOFF : " Labour Legislation in Bulgaria. " national Labour Review, Vol. X, No. 3, Sept. 1924. Inter- 36o FREEDOM OF ASSOCIATION Any person who, by violence or threats, compels the workers in a workshop or factory to stop work, or not to resume it, shall be liable to imprisonment of not less than one year. The punishment of interference with the right to work is therefore particularly severe when this is the act of a collective body. This strictness is enhanced by the fact that acts of simple intimidation are punished. On the other hand, the law makes no mention of other means of pressure used by associations, such as boycotting, blacklisting, and peaceful picketing. It follows that these acts must be considered lawful unless circumstances arise therefrom constituting an offence of intimidation, violence, or threats, as directly specified in section 298. LIMITATIONS UNDER ADMINISTRATIVE L A W When the Bulgarian Constitution (Article 82) established the right of assembly, it distinguished between open-air meetings and meetings in closed premises: Only the former are subject to police regulations. By virtue of this limitation, and in accordance with the police regulations in force, trade associations, like all others, must give twenty-four hours' notice to the administrative authorities of all open-air meetings, demonstrations, processions, etc. But even the meetings in closed premises, on which the constitution placed no limitation, must, under certain police regulations, be notified to the competent authorities several hours in advance. Finally, it may be recalled that State officials and workers are prohibited from taking part in political demonstrations. LIMITATIONS UNDER CIVIL L A W Except for the associations of officials *, free trade associations have no legal personality. Consequently they do not and cannot own property, and have no power to enter into contracts or go to law. it also follows that they incur no liabilities in respect of strikes. This does not hold for the individual liability of strikers. In accordance with Bulgarian general law, strikers may be held responsible for all proven damage, direct or indirect; but, owing to the insolvency of those accused, suits of this kind are usually of no practical interest. It would seem as if the special sanction provided in the Act on 1 Cf. above, p. 350. BUWJAÄIA 361 employment exchanges and unemployment insurance in the event of failure to give notice is more effective than liability under the general law. Section 24 of the said Act states that a worker or employee who gives up his employment without giving a fortnight's notice will be deprived of his privileges under the Act for a period of twelve weeks. If he is engaged during this period by another employer, both he and the employer are punished by a fine corresponding to a fortnight's wages, which is divided equally between the new employer and the worker, and paid into the Social Insurance Fund. But the obligation to pay damages is not the only sanction to which the striker is liable. Under the.general law, the employer may dismiss a worker who is guilty of breach of the contract of work, and can thus exercise indirect, but no less effective, pressure on the right to strike itself. CONCLUSION The legal foundation of the right of association for trade purposes in Bulgaria is to be found in the Constitution. It has been shown that Article 83 of this fundamental charter not merely establishes the principle of the freedom of association, but, in addition, exempts the founders of associations from obtaining previous authorisation. The purpose of this exemption was to safeguard the free existence and working of associations against arbitrary interference by the public authorities. Owing, however, to social and political disturbances, the constitutional principle has been interpreted more and more restrictively. The Act of 1907 on the combination of officials, and that of 1922 on the status of State employees, do not merely forbid officials to strike ; they also forbid them to join trade unions. The Schools and Societies Act of 1922 makes the working of any society or association conditional on the previous approval of its rules and regulations. Finally, the Defence of the State Act of 21 January 1924 prohibits anti-constitutional organisations. Under this Act the General Federation of Trade Unions was dissolved. The trade union movement as a whole was paralysed, at least for a time, by the suppression of the General Federation, which was the most representative trade organisation in Bulgaria. Most of these Acts, which in fact limit the constitutional principle, were passed under the pressure of special, but essentially transitory political circumstances. It is to be presumed that, with the gradual return to normal political conditions, the legislature will go back on certain restrictive measures of earlier date. Several recent facts support this presumption. In the first place, reformist and neutral unions may act unhampered. Secondly, the rules of several independent trade unions, which formerly belonged to the dissolved General Federation, have been approved by the Minister BULGARIA 363 of the Interior. Further, an amnesty has recently alleviated the effects of the sentences pronounced in consequence of the disturbances of ig23- All these facts suggest that it will not be long before the principle of the freedom of association guaranteed by the Constitution is re-established in full. BIBLIOGRAPHY INTERNATONAL Bulgaria. By Max Geneva, 1922. ILIEFF, IV. LABOUR OFFICE. LAZARD. Studies Compulsory Labour Service in and Reports. Series B, No. 12. M. Rabotnichesko sindikalno dvijenie v Balgaria. Sofia, 1927. NIKOLOFF, Dimitri. "The Trade Union Movement in Bulgaria." International Labour Review, Vol. XVI, No. 5, November 1927. YANOULOFF, Ilia. " Labour Legislation in Bulgaria." Labour Review, Vol. X, No. 3, September 1924. International Sotsialna politika v tjpujbina i v Balgaria. Sofia, 1924. RUMANIA CHAPTER I HISTORY OF THE GUILDS AND THE TRADE UNION MOVEMENT The trade union movement is of recent origin in Rumania, where the economic system is still predominantly agricultural, and industrialism was not introduced until comparatively late. The history of trade organisation was for long intertwined with that of the guilds of craftsmen, and for this reason it is impossible to consider the former apart from the latter. § 1. — History of the Guilds From the beginning of the fifteenth century various groups of craftsmen were attached to the monasteries, to which they were bound by economic and legal ties. These were the brotherhoods, which continued in this form until the end of the seventeenth century, when many artisans succeeded in freeing themselves from all fiscal dues and all legal subordination to the ecclesiastical authorities. It was at this time that the old brotherhoods became guilds. Thenceforward craftsmen were free to establish themselves in the towns then springing up. The ruling princes encouraged them to settle by granting them a monopoly of manufacture and sale. Thanks to this monopoly of economic transactions, the guilds rapidly developed and arrived at a flourishing economic condition, particularly towards the end of the eighteenth century. Monopoly of trade was at that time considered as a means of social equilibrium and labour protection. It made of the guild not merely a trade association, but also an institution for social conciliation. It was true that consumers were com- 366 FREEDOM OF ASSOCIATION pelled to buy only from specified producers, belonging to the particular guild concerned, but in return they were protected against all exploitation by the strict and careful control exercised by the starosta, the head of the guild, who determined the obligations of the holders of the monopoly. Prices were fixed by administrative orders (narturi). All these measures aimed at securing for everyone a minimum subsistence, while abolishing economic antagonism. This was a normal conception in a society founded on tradition and the patriarchal principle, but could not hold good in a more advanced economic society. Owing to the internal dissensions that undermined the former discipline of the guilds, the ruling princes were induced to facilitate the admission of foreign artisans, who, armed with greater technical knowledge, ultimately succeeded in limiting in fact the monopoly of the old guilds. The legal monopoly of trade was not abolished until the Organic Regulations issued in 1831, which, in Chapter V, established the principle of the freedom of commerce and industry. The guilds themselves were provisionally suppressed by a Ministerial decision > of 22 June 1873. In 1875 Rumania inaugurated, in consequence of a commercial treaty with Austria-Hungary, a new customs policy, that is to say, a policy of free trade, which was followed until 1887 and threatened the guilds with complete ruin. What has subsequently been described as the decay of the Rumanian crafts was, properly speaking, as much the consequence of free trade policy as of the natural economic evolution of the country. In 1887 the Government was compelled to return to a policy of protecting the newborn national industry and the craftsmen, who still formed the industrial backbone of the country. The legislature of that day considered, in fact, that it was only by protecting national industry that it could hope to reconquer the independence of the national market. It was from that time that, side by side with the development of large-scale industry, a class of industrial workers was formed, and that the social question arose. It is a remarkable fact, however, that the problems of wage earners and craftsmen were still confused for some time, which may be explained on the one hand by the relics of a still recent past, and on the other by the progressive prolétarisation of the artisans. At the same time, a steadily growing number of artisans demanded the return to the guild system. These RUMANIA 367 demands led to the introduction of several Bills between 1880 and 1900, all of which proposed the reorganisation of the guilds. There was first the Bill of Peter Carp (1884), leader of the Conservative Party, which provided for the creation of compulsory guilds in eleven towns for twenty-five crafts. It also proposed the compulsory creation of workshop schools, in which foreign heads of industry would be invited to teach their trades to Rumanian apprentices as a means of increasing the number of skilled workers. Two years later another member of the Conservative Party, Nicolas Filipesco, introduced a Bill on the same subject, which was based on Austrian and Hungarian legislation on corporations \ The fundamental principle of this Bill was that artisans and industrial workers must compulsorily belong to a specific guild. The two Bills thus had this feature in common : the obligation for the artisan to join his trade group, no exceptions or freedom of choice being allowed. Neither Bill was approved in Parliament, and the question remained unsettled until 1902. The reason was that the Rumanian Government wished to solve the artisan question on liberal lines, in accordance with economic evolution, and not by resuscitating obsolete institutions. This was the object of the Guilds Act of 5 March 1902, known by the name of its author, the Minister B.Missir. The author of the 1902 Act considered that it was above all essential that the Rumanian worker should be thoroughly prepared for carrying on his trade, so that he might withstand foreign competition. In his view, the surest means of arriving at this result lay in association, for by this means, he held, the Rumanian worker might enjoy State protection without renouncing his freedom. Under the Missir Act of 1902, guilds were formed without intervention by the State authorities. It was sufficient that there were at least fifty artisans belonging to a particular trade in the commune, and that the majority of them were in favour of creating a guild, for it to exist ipso jure. Once a decision had been taken to create it, all members of the craft were bound to belong to it, without exception. In this way the author of the Act tried to reconcile the independence of individual free will with the submission of this same free will to that of the majority. The artisans' guild was given legal personality, but with certain 1 Cf. Vol. Ill of this work : " Former Dual Monarchy of AustriaHungary. " 368 FREEDOM OF ASSOCIATION restrictions as to the acquisition of property, loans, and mortgages. As the guilds in isolation could not always fulfil the ends for which they were constituted, the Act gave them the right to federate. The Government reserved to itself a right of supervision, exercised by a Commissioner appointed for the purpose, the guild being considered a public body. The 1902 Act dealt with the crafts in particular, and only by implication with industrial workers, of whom there were still very few at that date. While leaving the worker completely free to choose his trade, the Act required him to prove his technical or trade qualifications by obtaining a certificate of mastership.. The desire to promote technical training led the legislature of 1902 to require even the simple worker to obtain an " efficiency card " after examination before a jury designated by the guild. In introducing tests of technical or trade capacity as an essential condition for carrying on any trade whatever, the legislature of 1902 satisfied the unanimous demand of artisans for the limitation of competition by this legal means. The 1902 Act did not however fulfil the expectations of those concerned, and was unable to arrest the process of decay among the crafts. In the following year the craftsmen themselves asked for the amendment of the Act and the creation of free trade unions. But it was not until 1912 (Act of 27 January 1912 on the organisation of crafts, credit and workers' insurance, amended by the Acts of 14 February and 28 April 1913) that the legislature made any attempt to overcome the drawbacks which had been brought out by ten years' experience of the Missir Act. Like the previous Act, the 1912 Act aimed at the complete reorganisation of crafts in Rumania. It was based on the distinction between the " social interests " and the " trade interests " of craftsmen. For the protection of the trade interests the Act created the brotherhood (breasla), membership of which was compulsory for all craftsmen and factory workers in the trade. To safeguard the workers' social interests it created the guild, an association of several brotherhoods in the same town, membership being compulsory not only for artisans but for all factory workers. The formation of a brotherhood is compulsory if there are twenty-five craftsmen of the same trade in the district. Its principal purpose is to protect the trade interests of its members, to promote apprenticeship and hygienic conditions of work, and to give assistance in cases of unemployment or during the slack season. The guild is an association of the second RUMANIA 369 degree, in which artisans and factory workers are combined in one and the same body, which is managed by a council and is responsible for the social interests of the workers. It acts also as the unit for insurance purposes. The brotherhoods and guilds have the right to form federations. Their activities are placed under the control of the Central Office for Crafts, Credit, and Social Insurance (Cassa Centrala a Meseriilor). Under the pressure of the craftsmen-employers, a great force in elections since they possessed the property qualification to vote, the legislature in 1912 had enforced the inclusion in one and the same organisation of all persons taking any kind of part in the work of production, from the industrial worker and apprentice up to the master, regardless of the fact that their trade interests, instead of always being the same, were often antagonistic to each other. The practical results of the Act were accordingly meagre, and it might even be said that the reaction to this legislation was a strengthening and development of the spirit of association in the Rumanian working class. § 2. — History of the Trade Union Movement T H E LABOUR MOVEMENT In Rumania, as in other countries, the trade union idea made headway among the workers in the wake of the Socialist idea. At the beginning, however, the Socialist leaders paid, very little attention to the workers in the towns, owing to the small number of industrial undertakings, and therefore of workers. They preferred to concentrate their attention on the peasant class, where the field seemed more favourable for political agitation. It was not until later that the Socialist movement, which had formed a party in 1892, extended its propaganda to industrial workers. The first labour associations organised by the Socialist Party (Printers' Union of Bucharest, 1886) were less trade unions properly so called than mutual-aid societies. The progress made, modest though it was, was sufficient to disturb the public authorities, and the Socialist Party was dissolved in 1920. This had its effect on the trade union movement, which suffered a temporary setback. Wage earners in industry, being deprived of organisations of their own, then joined the ranks of the artisans and supported their Freedom of Association 370 FREEDOM OF ASSOCIATION demands. The result was that the artisans, whose plight steadily became worse, were gradually won over to Socialism, and thus the first trade unions properly so called were formed, not among industrial workers but among craftsmen, for instance, the Carpenters' Union and the Tailors' Union founded in 1905. The first trade union congress was held on 26-28 August 1906, at which thirty unions, with an aggregate membership of 4,466, were represented. This congress was of decisive importance to the Rumanian trade union movement, for it set up both a General Committee of Rumanian Trade Unions as the central body of the movement, and local trade union committees linking up the various unions in the same town. It also decided to found a Socialist publishing society, which issued propagandist works. Finally, it framed model rules for adoption by all trade unions, and laid down the following general principles : The workers should promote trade unionism and destroy the guilds, in which they should not accept office, but use their influence as members to work in favour of trade unionism and to support the strikes of organised workers. They should urge the enactment of labour legislation guaranteeing a weekly rest in all agricultural and industrial undertakings, the regulation of the employment of women and children, the abolition of night-work and piece-work, the institution of accident, sickness and oldage insurance, the recognition of trade unions and the removal of all legal obstacles to their activities. The trade union movement made steady progress after the congress. Propaganda was extended to State officials and workers. A number of strikes broke out in State factories and in public services, such as the strikes of postmen, workers employed in the State tobacco monopoly, railwaymen, and others. The Government seized the opportunity to submit to Parliament an Act on associations, which was passed on 20 December 1909, and prohibited strikes and associations of officials and all employees of the State, departments and communes, and workers in Government establishments of an industrial, economic or commercial character. The result was that, in order to avoid prosecution, the Trade Union Congress of February 1910 had to try to reorganise the trade unions on a basis independent of all political tendencies. These efforts proved fruitless, however, and the movement remained under the influence of the Socialist Party \ Hampered in their work by the 1909 Act and 1 "It seems to us absurd ", said the Socialist leader of that day, Mr. Rakovski, " that there should be no Socialist activity in genuinely proletarian organisations like the trade unions. The Socialist movement RUMANIA S?! continually exposed to the persecution of the authorities, the trade unions could make only slow, t h o u g h steady progress. I n 1914 the central organisation had barely 15,000 members, and h a d not yet reached the masses of the workers. Paralysed during the war, the movement revived at the end of hostilities. I n 1920 t h e n u m b e r of unionists affiliated to the General Committee of Rumanian T r a d e Unions was close on 250,000. Unfortunately, as Mr. Mirescu points out, the leaders of the movement, who found it impossible to amalgamate the masses of new recruits with their disciplined members, gradually lost authority, until it was no longer possible to direct these masses, who were driven on the one h a n d by need, on the other by agents provocateurs 1. Emboldened by certain successes, t h e t r a d e unions organised the general strike of 21 October 1920, which proved a complete failure. T h e Government retorted in the most rigorous fashion. T h e leaders were arrested, the offices of the unions closed, their press suspended, and the unions themselves dissolved. T h e unions in the restored provinces, however, and especially in Transylvania, where trade union organisation was older, more experienced and more firmly established, had survived the storm, and it was around this nucleus that t h e R u m a n i a n labour organisations were reconstructed. I n spite of t h e military occupation t h a t h a d followed t h e reunion of Transylvania with Rumania in 1918, a n d prevented all trade union activity, the movement had sufficient strength and opportunity to revive during the following year. I t was the miners, w h o formed the bulk of the working population of t h e Transylvanian territory, w h o convened the first post-war trade union congress at Sibiu on 23 March 1919, at which delegates from twelve local groups were present. A t this congress the foundations were laid of t h e great Miners' Union, which then had a membership of 21,500. T h e example of the miners was followed. All the old organisations revived and got into touch with the trade union executive council at Sibiu. A general is the most finished form of the trade union movement properly so called. Only as a Socialist body can a union fulfil its historic task. Deprived of the Socialist spirit, the trade unions lose their vital element ; the Socialist idea is to the unions what oxygen is to the blood. " (C. RAKOVSKI : Sindicatele muncitoresti, third edition, p. 38. Bucharest, 1926.) 1 J. MIRESCU : Sindicatele tmcncitoresU si legislatia -mundi, pp. 5 et seq. Published by the journal Socialismul, Bucharest, 1926. 372 FREEDOM OF ASSOCIATION congress was held on i o and n May 1919, attended by delegates from sixty organisations in thirty-three districts. T h e congress decided on the unification and centralisation of the trade union movement in Transylvania. A provisional General T r a d e Union Committee was formed. T h e report of the General Committee of Transylvanian T r a d e Unions on the trade union movement gives the n u m b e r of organised workers on 30 J u n e 1920 as 80,309. T h e repression of the general strike of 21 October 1920, in which the Transylvanian unions had also taken part, prevented all activity for one year. I n consequence of the general strike, a new A c t on trade associations was passed in 1921 (see Chapter I I , § 2 ) , which, in r e t u r n for strict supervision over the constitution and w o r k i n g of such associations, gave t h e m legal personality. T h e Transylvanian unions at once submitted to the severe requirements of this Act, and were thus able to resume their activities. On 31 December 1921 the eight principal federations (miners,- building, food trades, woodworking, printing, bookbinding, metal working and chemicals) comprised 168 unions with 31,739 members. Under the impulse given by the Transylvanian unions, the revival of the trade union movement spread throughout R u m a n i a . At the Congress of Sibiu (June 1922) a membership of 45,000 was recorded, and at the end of t h a t year one of over 65,000. A s a means of protecting the movement against political persecution the Sibiu Congress established the principle of trade union independence in the following terms : Considering that the split in the Socialist Party of Rumania is an accomplished fact and that a reconciliation of the two groups is impossible at present, and considering on the other hand that the law prohibits political action by trade unions, the Trade Union Congress declares that : The trade unions of Rumania, founded on the principle of the class war, are independent organisations. They will repulse any attempt on the part of political parties to break them up or annex them. The present resolution does not in any way forbid individual members to belong to a political party or to take part in political activities as they please : 0 (1) All party activity within t h t unions is strictly forbidden and will be a reason for ejection ; (2) Trade union activities must strictly conform to the law ; (3) They are directed only by the national congresses (general or trade congresses). This resolution forms an integral part of the rules At the Congress held during the following year at Cluj on 23 and 24 J a n u a r y 1923, the Central T r a d e Union Council decided to affiliate to the International Federation of T r a d e Unions of Amsterdam. RUMANIA 373 The revolutionary unionists also formed independent unions, the so-called unitary trade unions. By the end of 1926, the structure of the unitary trade union movement appears to have become complete. It consists of local and regional committees and a general unitary Trade Union Council, and at that date it comprised over 200 organisations with a membership of about 12,000. But these unions had not developed in this way without a struggle. During 1926, on the occasion of a demonstration organised by students at the North Station of Bucharest, some twenty workers belonging to unitary trade unions were arrested, and sixteen of them were sentenced by court-martial. The unitary trade union committee of Bucharest protested against this sentence, with the result that the twelve members of the committee were in turn arrested and sentenced by courtmartial on 18 March 1927 to penalties ranging from three months' to one year's imprisonment. Those unitary trade unions which have submitted to the regulations of trade union law, however, have been able to continue their activities as well as the publication of their journal, Viata Muncitoresca (Labour Life). Thus, in spite of obstacles of all kinds, the trade union movement had regained at least part of the ground lost in 1921. In 1926 the General Confederation of Labour, combining all the reformist unions of the Old Kingdom and the restored territories in a single national organisation, was set up, and at the Bucharest Congress held on 29-31 August of the same year, its programme, to which it still holds, was drawn up in the following terms : In view of the diversity of existing labour legislation throughout Rumania, the Congress requests the Government : (1) To take the necessary measures for the standardisation of existing labour legislation, which at present is responsible for inequalities in the situation of the workers even as between the various provinces of the country. (2) To standardise and at the same time reform this legislation on as progressive principles as those of other modern legislation and international labour conventions. (3) To ensure the representation of the trade unions, by delegates elected by the workers themselves, on the committees which are, or may be, set up for the amendment or initiation of labour legislation. (4) The Congress similarly requests the Council of the General Confederation of Labour to draw up, and as soon as possible submit to the authorities concerned, memoranda dealing with all the amendments which are required to existing legislation. These memoranda should demand, for instance, (a) the immediate standardisation of labour legislation on the basis of international conventions ; 374 FREEDOM OF ASSOCIATION (b) the repeal of the Act concerning legal personality, or if preferred, the withdrawal of the trade unions from the sphere of operation of this Act ; (c) the repeal of the Handicrafts and Guilds Act throughout the country ; (d) the suppression of the excessive advantages granted by the Act for the encouragement of national industry, which weigh as heavily upon consumers as they do upon the working classes ; (e) the complete revision of the Collective Labour Disputes Act and of the Trade Associations Acf ; (/) the amendment of the Weekly Rest Act with a view to the payment of the workers at double rates for work on holidays, whether they are employed by the hour, the week, or the month ; (g) the immediate passing of an Act ensuring to foreign workers equality of treatment with national workers on a basis of reciprocity ; (h) abolition of the restrictive provision of the Immigration Act with regard to foreign workers ; (i) the introduction of legislation on collective agreements ; (;') the introduction of an Act on hours of work in accordance with the principles of the Washington Convention (this Act was passed in April 1928) ; (fe) the creation of chambers of workers and officials on an equality with the chambers of commerce and industry ; (I) the introduction of an Act on minimum wages and a sliding scale ; (m) the introduction of an Act on works councils ; \n) immediate legislation for State unemployment insurance. T H E EMPLOYERS' MOVEMENT T h e movement for the association of employers in industry a n d commerce dates only from after t h e war. T h e reason is t h a t t h e interests of the heads of undertakings seemed sufficiently safeguarded b y t h e chambers of commerce a n d industry. T h e s e official bodies, which were first set u p b y t h e A c t of 1864, are a t present governed b y t h e A c t of 7 M a y 1925, which has similarly established a central body — the Union of Chambers of Commerce a n d I n d u s t r y — whose d u t y it is to promote, direct a n d co-ordinate the work of the thirtyfour chambers in the country. Immediately after the war, however, employers, surprised by the progress made by t h e workers' unions, also formed trade associations properly so called and federations, following the example set b y manufacturers in Transylvania and Bukovina. T h e s e bodies were affiliated to the General Federation of Manufacturers in Rumania. I n addition to these employers' organisations in industry, reference should be made t o t h e groups of artisans combined in the Union of Small Manufacturers, whose activity is steadily growing. According to t h e most recent publication of the Directorate of Research a n d Statistics in the Ministry of Labour dealing with trade RUMANIA 375 organisations, there were at. t h e beginning of 1926 six employers' associations with forty-five affiliated organisations, representing 3,352 individual members. These associations all have legal personality. T h e r e are in addition 152 independent employers' organisations with 20,065 members. T h e regional distribution of t h e organisations is as follows : Former Kingdom : Three associations with nine affiliated organisations and 1,286 members. Twenty-two independent organisations with 2,829 members. Transylvania : Two associations with twenty-eight affiliated organisations and 876 members. Ninety-six independent organisations with 13,244 members. Bukovina : One association with four affiliated organisations and 650 members. Sixteen independent organisations with 2,924 members. Bessarabia : Four organisations affiliated to employers' associations in the old Kingdom. Eight independent organisations with 1,062 members. CHAPTER II THE PRESENT LEGAL STATUS OF TRADE ASSOCIATIONS The progress made by the trade union movement, particularly since the war, led to the enactment of legislation on trade associations. It is true that in 1866 the first Constitution of the Kingdom had in Article .27 expressly proclaimed the principle of the freedom of association, but it subordinated the exercise of this right to the previous adoption of special legislation on the matter. Such legislation was never passed subsequently, and thus the constitutional principle remained a dead-letter. Apart from the special legislation on the guilds *, the Act of 26 May 1921 on trade associations 2 was the first to establish positive regulations on the constitution and working of trade associations. This Act was completed by another of a general nature, namely, the Act of 6 February 1924, amended by that of 22 April 1927, respecting legal personality, which implicity cancels certain provisions of the special Act on trade associations. In the meantime the new Constitution of 22 March 1923 had reaffirmed in Articles 5 and 29 the principle of freedom of association. To sum up, the law on association for trade purposes is derived from three sources : the Constitution, the Act of 26 May 1921 on trade associations, and the Act of 6 February 1924 on legal personality. Under Rumanian law trade associations have the right to choose between being governed by the general law pure and simple, arising out of the constitutional principle, and by the special regulations contained in the Acts on trade associations and legal personality. * See above, Chapter 1, § 1, " History of the Guilds ". INTERNATIONAL LABOUR OFFICE : Legislative Series, 1921, Rou. 1. 2 RUMANIA 377 § 1. — Trade Associations under the General Law According to Article 5 of the Constitution of 22 March 1923, the right of association is safeguarded in the same way as other fundamental civil rights, such as the freedom of thought, freedom of education, right of assembly, etc. Article 29 develops the principle affirmed in Article 5 in the following terms : All Rumanians (the term being taken in the widest sense of inhabitants of Rumania) without distinction of racial origin, language or religion, shall have the right to associate, provided that they comply with the laws governing the exercise of this right. The right of free association shall not imply the right to create bodies corporate. The conditions under which legal personality is granted shall be laid down in a special Act. To judge from this text, due allowance being made for the reservation in the second paragraph of Article 29, the right of association understood in the widest sense, and therefore also the right of association for trade purposes, have been given sufficient legal foundation in the Constitution. This was indeed the theory that prevailed even before the constitutional reform of 1923, and that has since been confirmed by judicial practice. Thus the Act of 26 May 1921 on trade associations already made provision for the existence of associations in fact side by side with the recognised associations. Section 2 of this Act, which is quite general in scope, recognises the right of all persons and bodies corporate exercising the same occupation or a similar or allied occupation, to form themselves freely into trade associations without being obliged to obtain previous authorisation for the purpose. In other words, section 2 establishes the complete freedom to create associations, but this freedom entails no occupational privileges and is, moreover, subject to strict supervision. There are no privileges attaching to it, for associations which have not obtained legal personality enjoy none of the rights granted to recognised associations ; further, section 40 makes the executive or management of unrecognised associations jointly and severally responsible without limitation towards third parties. There is strict supervision of this freedom, for by section 44, unrecognised trade associations established on a basis or in furtherance of a purpose which is contrary to the law, morals or public order, are deemed unlawful. The civil court of the place where the association has its head office, establishes this unlawfulness by a substantiated decision issued, after hearing the 37* FREEDOM OF ASSOCIATION de facto management of the industrial association, at the request of the Public Prosecutor, the Ministry of Labour, or the interested parties. The decision may be appealed against within the periods prescribed in sections 9 and io of the Act. If a trade association is dissolved for these reasons, its management may be punished by a fine of 300 to 2,000 lei. All these provisions go to prove that the existence of de facto associations, although legal, is precarious, and that they are more or less driven to seek the status of recognised associations. § 2. — The Status of Recognised Associations (Acts of 26 May 1921 and 6 February 1924) The Act of 26 May 1921 was promulgated some months after the abortive general strike of 1920, which, as already shown ', was followed by the dissolution of the workers' organisations. In the explanatory memorandum to the Act, the Minister of Labour stated that : The first object of this Act was to create in the place of the suppressed organisations new workers' associations imbued with the spirit of order and inimical to the disruptive tendencies introduced from outside. The trade solidarity of wage earners (he added) should become a factor in social evolution and consolidation, and their associations should become the fundamental elements in this future work of national pacification and reconstruction. The fact that there were a large number of associations deprived of all legal recognition, whose activities most seriously hampered normal development, made the problem one urgently demanding solution. These statements, approved by the legislature in 1921, show that in determining the status of recognised trade associations its object was to confer on them a strictly occupational character. The Act of 6 February 1924 on legal personality, passed in pursuance of Article 29 of the Constitution, is much more general in scope. As, however, it cancels, if not expressly, at least tacitly, certain important provisions of the Act on trade associations, both these texts must be consulted for a determination of the conditions of existence of recognised associations. CONSTITUTION AND WORKING OF ASSOCIATIONS Among the condifions relating to the constitution of a trade association, a distinction is made between material and formal conditions ; 1 See above, Chapter 1, § 2 : " History of the Trade Union Movement. " 379 RUMANIA t h e material conditions refer to t h e persons w h o may belong to the association a n d the objects it m a y pursue, the formal conditions to its actual constitution and the supervision of its working. Conditions as to Members Freedom of adherence and withdrawal. — By the Act of 26 May IÇ2I trade associations are in essence voluntary organisations. A n y person has the right to belong to a trade association if he satisfies t h e conditions laid down by law and in the rules. Conversely, n o person can be compelled to belong to an association or prevented from withdrawing when he chooses. T h i s follows clearly from section 36. Members shall at all times have the right to withdraw from a trade association without stating their reasons, even if the rules contain a stipulation to the contrary. A member who withdraws may retain all rights which he has acquired in undertakings of an economic or social character established by the association. On the other hand, he must pay the sums due for contributions or on other grounds. T h u s , this safeguarding of the freedom of admission and withdrawal, considered in R u m a n i a n law as a public right, limits in this respect the contractual freedom of t h e members. Protection of the freedom of association. — Section 53 supplem e n t s the guarantee of freedom of admission and withdrawal by imposing penalties for unlawful m e t h o d s of pressure : Any person who by violence, threats, refusal to take into employment, or promises, hinders the exercise of the right of free association for trade purposes, prevents one or more persons from joining or leaving a trade association, or compels them to do so, shall be liable to a fine of 100 to 1,000 lei and to imprisonment from fifteen days to three months, or to one of these penalties, without prejudice to any claim to damages that the injured person may be entitled to make. Age, marital condition, nationality. — A n y person of eighteen years of age or over can belong to an association, and from that age minors need no special authorisation by their legal representative. Similarly, a married woman may belong to a n association without obtaining the authorisation of her husband. W o m e n have the same right as men to share in the administration and management of the association. T h e Act does not make R u m a n i a n nationality a condition for belonging to a trade association. Foreigners m a y therefore belong, like R u m a n i a n s — for the silence of the Act on this point should 38o FREEDOM OF ASSOCIATION be interpreted as granting a facility to the individual in the matter of association. Rumanian nationality is necessary, on the other hand, for those who administer or manage the association. Occupation, — The right to form trade associations is reserved to persons who are engaged in the same or similar occupations (section 2). Section 3 of the Act extends this right to the liberal professions and to all workers employed by the State, the departments, the communes, and other public organisations. Trade union rights of officials. — As regards officials, the 1921 Act merely states that the conditions on which they may exercise their right of association for trade purposes shall be determined by the future regulations for officials. The.Regulations concerning the status of officials, which were promulgated by the Act of 19 June 1923, in fact recognise, in section 24, the right to form associations provided that they are composed solely of officials. But every association of officials must obtain the special previous authorisation of the Superior Administrative Council before it is given legal personality. Although officials are thus entitled to the freedom of association in a limited form, they are formally deprived of the right to strike. Under sections 30, 31 and 32 of the Regulations, public off icials who by previous agreement stop working, whether partially or completely, or who send in their resignations collectively or individually, but at the same time, are deemed guilty of an act of desertion, endangering the general interests and punishable by dismissal. The official who can be shown to have inspired, provoked, or prepared the organisation of a strike or stoppage of work in a public service is liable, not only to dismissal, but to a penalty of imprisonment of three months to two years and a fine of 1,000 to 10,000 lei. If the stoppage of work or strike in a public service is decided on by an association of officials, the association is dissolved under section 32, and the leaders are liable to the above fine and imprisonment. The funds of the association are confiscated and accrue to the charitable societies at the place where it has its head office. An association which has legal personality is dissolved by Royal Decree, one without such personality, by a simple decision of the Council of Ministers, in both cases after consultation with the Superior Council. RUMANIA 381 Conditions as to Aims Section 1 of the Act on trade associations defines the aims of such associations in the following terms : Trade associations shall have as their purpose the study, defence and development of trade interests. Trade interests shall be confined to interests of an industrial, commercial, agricultural, technical, economic or educational nature. Thus the field of activity of trade associations is clearly limited to aims of a trade nature. In no way and under no pretext may such associations pursue political or religious ends, and still less may they pursue illicit ends, contrary to the law of the country, public order or morals. Formal Conditions Previous to Constitution Trade associations do not acquire legal recognition until they have been entered in a special register kept for the purpose by the district judge. The application for registration must be accompanied by: (a) The original and two copies of the record of the proceedings when constitution was decided on ; (b) The original and two copies of the rules; (c) A list of the executive or managing officials of the association, showing the nationality, residence and occupation of each; (d) A list of the original members of the association with their addresses and occupations. The persons making the application for registration are responsible for the accuracy of the contents of the documents sent in, which must first have been duly certified. The rules must contain provisions respecting the following matters : (a) The aims of the trade association. (b) Its name and head office ; the name of the association must be different from that of other associations in the same locality. (c) The conditions of admission, resignation and expulsion of members. (The expulsion of a member must be the result of a substantiated decision of the general meeting after the member concerned has been heard. He has the right to 382 FREEDOM OF ASSOCIATION appeal to the law court of the place where the association has its head office, within five days from the date of his being notified of his expulsion. It is worthy of note that it is a valid reason for expulsion if the member agrees to work in conditions inferior to those stipulated in the collective agreement. A member expelled on any grounds can no longer take part in any economic undertaking established by the association. If, however, he has concluded a long-term contract for insurance, he may claim compensation in a lump sum provided that this is equitable from the actuarial point of view.) (d) The rights and duties of members. (Their political and religious liberty may in no case be interfered with by the provisions of the rules.) (e) The fixing of contributions and the method of collecting them. (/) The procedure for electing the executive or managing officials of the association, in conformity with sections 20 and 21; the term of office of these officials may in no case exceed four years. Section 20, referred to under (/), states that every trade association must be placed under the management of a committee composed of three or more persons who are members of the association. This committee represents it in courts of law and in its relations with the authorities and third parties. Section 21 adds that the members of the committee responsible for managing the association must be Rumanian citizens of full age, possessed of full civil rights, and at the date of their election must have been actually engaged in their occupation for not less than one year, and must not have undergone a criminal penalty for any of the following acts : breach of trust, waste of public moneys, fraud, forgery, theft, receiving stolen goods, acceptance of bribes, counterfeiting of money or seals, or embezzlement of trust funds. A married woman may be elected to the executive or management of a trade association without having to obtain preliminary authorisation from her husband. (g) Regulations for the constitution, convocation and deliberations of the general meeting. According to section 36 of the Act on legal personality, the general meeting must be convened by the president of the association on the written and substantiated request of at least one-fifth of the members. RUMANIA 383 In the absence of the president, the chairman of the district court where the association is situated may authorise the members who have submitted a request to him to that effect to convene the meeting, and he then appoints as president the senior member or the representative of the Ministry under whose authority and supervision the association is placed. Failing such a representative, he may appoint a representative of the public prosecutor (section 37 of the 1924 Act). (h) Regulations for the constitution and deliberations of the executive or managing officials of the association. (t) The conditions and regulations for deliberations respecting the amendment of the rules, the liquidation of the association, and, in the latter case, respecting the disposal of its property. Trade associations may in no way depart from these provisions, which are declared by the law to be of a public nature. A similar procedure is prescribed for any amendment of the rules or the deeds constituting the association. Section 19 provides that amendments of the rules may be adopted only by a majority of at least two-thirds of the members entitled to vote. If this majority is not attained at a first meeting, the amendment of the rule may be adopted by a majority of three-quarters of the members present at a subsequent meeting. The association is bound to notify the district judge, through its legal representatives, of any amendment of the rules and any changes in its management. Trade associations have the right to form unions and federations, which may obtain legal personality in accordance with the regulations for the trade associations themselves, provided that they state i.i their application for registration the names and head offices of the associations or groups of associations of which they are composed. The rules of unions or federations of trade associations must include regulations for the representation of the affiliated associations on the executive committee and at the general meetings of the union or federation. They must also include the conditions of affiliation to the group. These are the preliminary conditions to be fulfilled by the rules when submitted to the courts of first instance for approval. The procedure to be observed in obtaining ratification is as follows : The district judge ascertains within not more than eight days from the receipt of the application for registration : (1) whether the documents sent in satisfy the requirements laid down in the Act; (2) whether the trade association has not been constituted from an 384 • FREEDOM OF ASSOCIATION unlawful motive or for any purpose which is unlawful or contrary to morality ; (3) whether the executive or managing officials fulfil the conditions laid down in the Act. The judge gives a substantiated decision for the admission or rejection of the application, after previous notification of the Ministry of Labour. The decision may be delayed for not more than eight days if the parties concerned ask for this in order to introduce into the specified documents any conditions or amendments desired by the judge. The decision is communicated to the trade association through its representatives designated in the application for registration within not more than five days. The association may appeal against the decision in the event of rejection of the application. Such appeal must be made within twenty days of the date of the announcement of the decision. The court decides summarily in secret session, without the right of objection, if need be after hearing the views of the Public Prosecutor. i t may also hear the representative of the Ministry of Labour. The sentence of the court may be appealed against by the parties to the case, or by the Public Prosecutor. The Ministry of Labour may associate itself with the appeal. The time limit for this appeal is twenty days, reckoned from the pronouncement of the sentence. If the court admits the registration, the documents in the case are sent forthwith to the competent district judge, who effects the registration in a special register, in which he records the name and head office of the association, the date of registration, and the names and addresses of the managing officials. The trade association is deemed to be legally recognised as from the date of its registration. All these provisions show that even before a trade association is finally constituted, it is subject to the preliminary supervision of the judicial authorities. Similarly, once it has been legally constituted, it continues to be placed under the supervision of the administrative and judicial authorities. Supervision of the Working of Trade Associations Both by the Act on trade associations and by that on legal personality, the State has made sure of its power to supervise and control the working of trade associations. Section 15 of the latter Act provides that the State has the right to supervise and control all bodies corporate in private law. This supervision and control 385 RUMANIA is exercised in the first place by the officials of the Ministry or Ministries under whose authority the association is placed, and in a general way by the Superior Committee on Legal Personality. Section 21, paragraph 3, of the Act adds that where the aims of a body corporate are not sufficiently defined from the point of view of the competence of the supervisory authority, it comes under the supervision of trie Ministry of the Interior. With a view to facilitating, supervision, the managers of trade associations are bound, under section 23 of the Act on such associations, to keep the registers up to date as regards the number of members and the receipts and expenses of all kinds. They must also keep a register containing records of all resolutions and decisions taken. They are further bound to submit to the Ministry of Labour at the end of each financial year a detailed statement as to the members and the funds of the association. The registers of the association must be kept at the disposal of the officials of the Ministry of Labour \ DISSOLUTION OF TRADE ASSOCIATIONS PENALTIES A trade association may dissolve itself voluntarily of right or may be compulsorily dissolved by law. Voluntary Dissolution and Dissolution of Right Section 41 of the Act on trade associations states that a trade association may be dissolved by the decision of a general meeting of 1 The Act of 20 April 1927, amending certain provisions of the Act on legal personality so far as trade associations are concerned, simplifies the formalities of registration and publication. According to section 1, trade associations may have the documents prescribed by the Acts on trade associations and legal personality certified before thé mayor, assisted by the notary, if in the communes where they are situated there is no court of first instance. According to section 2, a trade association formed under the Act on trade associations is exempt from the publication prescribed in section 92 of the Act on legal personality, but it must send a copy of the documents to which the formalities specified in the said section refer to the Ministry of Labour, which publishes them free of charge in its bulletin. According to section 3, the civil court before granting legal personality to trade associations need merely consult the Ministry of Labour, Co-operation and Social Insurance. This Act while introducing certain relaxations in the procedure established by the Act on legal personality, in no way invalidates the procedure provided for the legal recognition of trade associations described above. Freedom of Association 3 86 FREEDOM OF ASSOCIATION its members taken by a majority of two-thirds of the members with the right to vote. The association is dissolved of right : (a) if the period fixed in its rules has expired or its social aims have been realised; (b) if it is impossible to fulfil the ends for which the association was formed ; (c) if its proven insolvency prevents it from continuing its activities ; (d) if the administrative bodies can no longer be constituted in accordance with the rules ; (e) finally, whenever the membership falls below the minimum fixed by the rules or the law (section 53 of the Act on legal personality). Compulsory Dissolution Compulsory dissolution may be pronounced by the judicial authorities or by a decision of the executive authorities. According to the Act on trade associations and that on legal personality, the civil court of the place where the association is situated may pronounce the dissolution of a legally recognised association : (a) if its aims or activities have become unlawful or contrary to morality or public order ; (b) if its aims are pursued by unlawful means contrary to morality or public order ; (c) if the association, without having obtained the legal authorisation specified in section 39 concerning the amendment of the aims of associations, pursues other aims than those for which it was constituted and which it has declared ; (d) if the decisions of the general meeting are taken in violation of the provisions of the rules, the deeds constituting the association or the law (section 53 of the Act on legal personality, section 45 of the Act on trade associations). The dissolution is ordered by the civil court for the place where the association is situated, at the request of the Public Prosecutor, the Ministry of Labour, or the parties concerned. The decision is given in public session, after the Public Prosecutor and the trade association have been heard. The execution of the sentence of the court is suspended for one month from its notification, if the trade association concerned declares its intention of amending its rules and conforming to the law. If the offence is repeated, the original sentence of dissolution is executed forthwith. The dissolution decided upon by the court is communicated to the competent district judge when the verdict has become enforceable, RUMANIA 387 in order that he may note it in the register on the page and at the place where the registration was entered. The dissolution of a trade association entails the liquidation of its property. If dissolution is voluntary, the liquidation is effected by the executive and managing officials or by the persons specially designated for the purpose by the general meeting. In cases of judicial dissolution, the civil court for the place where the association is situated, to which the matter is referred by the Public Prosecutor or any person concerned, has the right to appoint liquidators. Similarly, if the provisions of the rules as to liquidation have not been observed, the court may, at the request of the parties concerned, or the Public Prosecutor, or the Ministry of Labour, annul the illegal decision of the association and proceed to dispose of the property. The same provision applies if the rules or the general meeting fail" to make any provision in the matter. The court to which the Public Prosecutor or the Ministry of Labour has referred the matter proceeds to dispose of the property, which it may assign either to the federation to which the association belongs, or to a similar association, or failing these, to the Directorate for Vocational Education in the Ministry of Labour. Penalties. In addition to the penalty of dissolution, the managing officials render themselves liable to the following penalties in the event of contravention of the law. According to section 48 of the Act on trade associations, the members of the executive or management of a trade association who have contravened any of the prohibitions laid down in the Act, or who have made false returns in connection with the application for registration and in particular in respect of the contents of the rules or the deeds constituting the association, and the names and qualifications of the persons responsible for the administration or management of the association, are liable to a fine of 50 to 500 lei. The same penalty is imposed on the members of the executive or management of an association who fail to conform to the provisions of section 16, concerning amendment of the rules, and section 29, making it compulsory for thè legal representatives of the association to participate, at the request of the Ministry of Labour, in the work of advisory or executive committees on which trade interests must be represented. 388 FREEDOM OF ASSOCIATION Members of the executive or management of a trade association who fail to conform to the provisions of section 23, concerning the keeping of the registers of the association, are liable to a fine of 100 to 500 lei. In the event of failure to comply with the formalities prescribed in section 43, concerning application for removal from the register in the event of dissolution, the guilty parties are liable to a fine of 25 to 500 lei. The original members, executive or management of a trade association which has continued its activities or which has reconstituted itself on the same basis after a decision of dissolution has been pronounced by the judicial authorities, are liable to a fine of 300 to 2,000 lei and to imprisonment from fifteen days to one year, or to one of these penalties. Section 55 of the Act on trade associations states that the fines under the Act are of a penal character and may be commuted into imprisonment. Contraventions are established by the judicial police, and likewise by the officials of the Ministry of Labour specially appointed for the purpose, who may bring cases directly before the court. The enforcement of penalties may be suspended by the judge, in the case of persons condemned for the first time, for one year from the date when the verdict becomes enforceable. Persons guilty of a second or subsequent offence are not entitled to this supension. If the offence is repeated within the year, the guilty person undergoes both the penalties imposed upon him. CHAPTER m THE POSSIBILITIES AND LIMITS OF TRADE UNION ACTION In return for these severe regulations, the legally recognised associations, unlike de facto associations, have certain powers, in particular with respect to : (i) the organisation of institutions and co-operation with the State in matters of social welfare ; (2) their capacity in civil law and their influence on conditions of work, especially the contract of employment. § 1. — Trade Union Institutions and Co-operation with the State INSTITUTIONS The Act on trade associations authorises an association which has obtained legal personality to take all action necessary for : (1) the organisation, establishment and working of subsidiary undertakings of an industrial character, such as laboratories, technical schools, workshops for apprentices; (2) the organisation and management, in the interests of its members, of institutions of an economic nature, for which separate accounts must however be kept ; (3) the allocation of part of its receipts to the erection of cheap dwellings ; (4) the establishment among its members of funds for mutual assistance and pensions, provided that these conform to the laws in force ; (5) the printing and issue of publications for the educational and technical advancement of members and the defence of their trade interests (section 28). 3Q0 FREEDOM OF ASSOCIATION In 1922, the first year in which the Act on trade associations was in operation, 19 trade institutions (technical schools, libraries, workshops for apprentices) were set up. Further progress was made in the following year. The number of employment exchanges opened reached 76, that of industrial institutions 115. Since then the associations have confined themselves to supporting the work of the State in this field. CO-OPERATION WITH THE STATE The co-operation of the trade associations with the public authorities in the preparation and administration of social legislation was allowed on a generous scale, first by the Act on trade associations and subsequently by a whole series of special Acts. According to section 29, the legal representatives of the trade association must, at the request of the Ministry of Labour, appoint one or more delegates chosen from among its members, to sit on advisory and executive committees which deal with the protection of trade interests. Similarly, the Minister of Labour is bound to consult the principal trade associations on such questions. The refusal of an association to assist the Government in this respect is punishable by a fine of 50 to 500 lei. Recognised trade associations are further authorised : (1) to participate through their delegates nominated by the association from among its members, jointly with the employer concerned or his representative and the officials of the Ministry of Labour, in the work of labour inspection, so far as the administration of the laws and regulations for the protection or organisation of labour, collective agreements and rules of employment are concerned. The refusal of the employer to participate in person or through his representative in the inspection is no obstacle to its being carried out by the workers' delegates ; (2) together with the officials of the State and the delegates of the employers' organisations, to watch over the administration of the laws and regulations relating to the technical schools and technical continuation schools set up by the Ministry of Labour ; (3) to participate with the officials of the State, the departments or the communes, and with the delegates of the employers' RUMANIA 391 associations, in carrying on a public and. gratuitous employment exchange service. In pursuance of the International Convention of Washington (1920) an Act. was passed on 30 September 1921 concerning the organisation of employment exchanges, which abolished fee-charging agencies and substituted for them public employment exchanges. These are subsidised by the State, the departments and communes, and placed under the direction of State authorities supported by joint committees of employers and workers in equal numbers. A central joint committee set up on the same principle of equal representation, centralises and co-ordinates the work of the various local exchanges. (4) to supervise the administration of social insurance through their delegates, approved for this purpose by the Ministry of Labour. These powers, enumerated in the Act on trade associations, were subsequently confirmed and systematised by the Act of 13 April 1927 on chambers of labour and the Superior Labour Council. By section 1 of this Act the chambers of labour have legal personality and are placed under the supervision of the Ministry of Labour. They are bodies for representing and protecting industrial and commercial labour. The chambers are set up by Royal Decree, after consultation of the Superior Council of Labour, either on the request of the employers' and workers' trade organisations, or, ex officio, by the Government. Their number must at least be equal to that of the chambers of industry and commerce in the district and locality. The area for which each is competent, its head office, and the number of its members and sections are to.be defined in the Royal Decree instituting it (section 2). The necessary funds for the chambers of labour are obtained from a levy on the workers' wages. Each chamber consists of five ex officio members and a number of elected members varying between thirty and sixty, according to the industrial and commercial importance of the district. These members are elected in equal numbers by the employers and workers in all industrial and commercial, public or private undertakings in the area covered by the chamber, excluding workers employed by the State, departments and communes. To take part in the elections both workers and employers must be Rumanian citizens of at least twenty-one years of age, and have been engaged 392 FREEDOM OF ASSOCIATION for not less than one year in their occupation in the area for which they vote. Candidates for election must be at least twenty-five years of age, be entered on the electoral list, have carried on their occupation^ for at least three years, and have lived at least one year in the area for which the chamber is competent. Each chamber of labour is divided into two sections, one industrial and one commercial. These may be divided in turn into subsections if the situation and needs of the district so require. As regards the administration of the chambers of labour, the Act provides that if the president is chosen from among the employers' representatives, the two vice-presidents must be chosen from among the workers. If, on the other hand, the president is a worker, at least one of the vice-presidents must be an employer. The functions of the chambers of labour are carefully defined in section 3. The Act prescribes in the first place that the chambers must give their opinion on Bills and draft regulations, and in general on all questions affecting industrial and commercial labour. Secondly, the chambers must co-operate with the Ministry of Labour in the administration of labour legislation, through bodies expressly appointed for the purpose. Thirdly, they must co-operate with the departmental and communal councils and other trade chambers in all matters relating to labour organisation and development. In addition to these wide powers of consultation and supervision in the field of social legislation, the Act gives them definitely political powers. Under the Act on the standardisation of administration, they have the right to send delegates to the district and communal councils of the area for which they are competent. Finally, they have the right to elect six members of the Senate. The same Act of 13 April 1927 provides for the creation of a superior Labour Council as a technical and advisory institution in the Ministry of Labour. Workers are represented by twenty-six members of the Council, elected by the chambers of labour, together with six representatives of the various State undertakings. The trade unions have subjected this Act to vigorous criticism, concerning both the composition and the competence of the chambers of labour and the Superior Labour Council, because in their view the workers are given only a minority representation in the chambers, while in other trade chambers, i.e. those of industry, commerce and agriculture, the employers have practically all the seats. To remedy this state of affairs the trade unions advocate the formation of chambers of workers, i.e. trade chambers consisting RUMANIA 393 solely of wage earners, on the model of the councils of workers and salaried employees created in Austria and various other coun tries \ In the second place, they object to the competence of the chambers of labour because they maintain that, if not in law, yet undoubtedly in fact, the trade associations would be deprived of their powers under the Trade Associations Act in this field, to the profit of the new official bodies \ § 2. — Civil Capacity and Influence of Trade Associations on the Contract of Employment EFFECTS OF LBGAI, PERSONALITY Legally recognised trade associations enjoy legal personality, But this privilege is granted to them only to the extent they need it for the realisation of their ends. Section 9 of the Act on legal personality defines the principle in the following terms : " Bodies which have legal personality in private law shall be entitled only to the rights necessary to them for the realisation of their aims. " Within these limits the privilege of legal personality entails the right lo acquire and own property, to enter into contracts and to sue and be sued. The Act on trade associations lays down in section 26 that an association which has obtained legal personality may, without previous authorisation, acquire real or personal property of any kind, either as a free gift or in return for a consideration. But the Act on legal personality in section 10 limits this right as regards free gifts. Bodies corporate may not accept free gifts unless these are authorised by Royal Decree. In this way the Government has sought to keep a check on the financial resources of trade union and other associations. The right of a trade association to enter into contracts of a civil nature is similarly limited according to the nature of the contract. Thus, an association may contract obligations only for the purposes mentioned in its rules 3. 1 Cf. Vol. Ill of this work : " Austria ", pp. 149 et seq., and Vol. II : " Luxemburg ", pp. 274 et seq. 2 See J. MIRESCU, op. cit., p. 33. 5 Cf. below, pp. 394 et seq., " Collective Agreements ". 394 FREEDOM OF ASSOCIATION The last effect of legal personality is the right to sue and be sued. Section 25 of the Act on trade associations establishes this right in the following terms : A trade association which has obtained legal personality shall be entitled to appear in a court of law either as plaintiff or as defendant, not only on account of interference with its personal rights or property, but also on account of all interference with the individual rights of its members, to the extent such interference is connected with the exercise of the trade and the collective interests of the trade group, which it is the business of the association to defend. In return for these civil rights, the trade association assumes liability for unlawful contracts or acts. Section 12 of the Act on legal personality provides that the will of bodies corporate is expressed solely by their officials. The legal acts of these officials performed in accordance with the rules, within the limits of the powers conceded to them, are deemed to be performed by the body corporate itself, and are binding on it. The acts of its officials that are contrary to the aims defined in the rules can have no effect on the association. The association is liable for all contracts constituting an intentional or unintentional offence which are entered into by these officials during their term of office. The members of the executive and management of the association are jointly and severally liable for all damage caused by them, both to third parties and to the association itself. In order, however, to protect trade associations against proceedings that may threaten their very existence, the Rumanian Act copies the French legislation of 1884-1920 concerning trade associations, and provides in section 27 that " the real and personal property acquired by a trade association under the conditions laid down by law, shall not be liable to distraint on any grounds except for pre-existing privileged debts and mortgages and fiscal dues, provided that the said real and personal property is necessary for the meetings of members of the associations, their library or courses of technical instruction ". CONCLUSION AND ENFORCEMENT OF CONTRACTS OF EMPLOYMENT Collective Agreements Section 32 of the Act on trade associations states that associations which have legal personality also enjoy the right to conclude collective agreements either with individual employers or with employers' asso- 395 RUMANIA ciations. But the Act merely propounds this principle, without defining the legal nature of such agreements. So far there has been no legislation on collective agreements, but this lack of regulation has not hampered the growth of the system of collective bargaining in fact, as will appear from the table below. Number of collective agreements 1920 1921 1922 1923 1924 1925 1926 71 161 167 329 255 261 266 N u m k r of workers covered 27.498 32,964 63.704 90,5" 85.128 94.821 82,634 Thus, the number of collective agreements increased side by side with the growth in the trade union movement. Labour Disputes — Limits of Trade Union Action The Act on the settlement of labour disputes was passed on 4 September 1920 \ Its purpose was to put an end to the violent labour agitation and numerous strikes that immediately followed the conclusion of peace. The explanatory memorandum defined the scope of the Act as follows : " The right to strike, which is recognised in principle, may not exceed certain limits imposed out of consideration for the safety and preservation of the State, for a strike is not so much an Act of rebellion against capital as one against the consumer, the public, and the community ". The author of the explanatory memorandum also pointed out that " in the short period of the three months from i April to 1 July 1920, there were no less than 195 collective disputes, a number which had risen to 753 by the end of the year ". The principles on which the Act on collective labour disputes is based may be summed up as follows : (a) the State has the right to intervene in collective disputes between capital and labour ; (b) conciliation is compulsory, but arbitration voluntary, for all industrial 1 See Legislative Series, 1920, Rou. 4. 396 FREEDOM OF ASSOCIATION and commercial undertakings employing not less than io persons ; (c) arbitration is compulsory for disputes in State undertakings, public services and public utility services. The proceedings for which the Act of 4 September 1920 provides are divided into two stages : the conciliation proceedings and the arbitration proceedings. Conciliation Proceedings According to the Act of 4 September 1920, no collective stoppage of work, whether in the form of a strike or lock-out, may take place before conciliation proceedings have been exhausted. The parties themselves are free to designate their delegates, who open the conciliation proceedings in the presence and under the direction of a representative of the Ministry of Labour. The number of delegates of each party is limited as a rule to 2 to 5 persons. All the delegates, both of employers and of workers, must hold written credentials from their respective associations. As a condition of election the Act requires at least six months' employment in the undertaking. Persons not belonging to the undertaking cannot be elected as delegates. By section 34 of the Trade Associations Act, however, an exception is allowed in favour of legally recognised associations. I t states that these may appoint as delegates to conciliation or arbitration boards even members not working in the undertaking affected by the dispute. For an association to enjoy this right, however, it is necessary that : (1) not less than one-third of the workers concerned in the dispute shall be members of the trade association in question, and (2) that a majority of the workers concerned in the dispute shall accept the delegate or delegates of the trade association \ The representative of the Ministry of Labour takes the initiative in convening all the representatives of employers and workers so that 1 By section 40 of the Labour Disputes Act the representatives of the workers either on the conciliation board or on the arbitration commission are entitled to be absent from work as long as may be necessary for the fulfilment of their duties as representatives, and this absence cannot constitute a lawful reason for the termination of the contract of employment by the employer or head of the establishment. The employer is also required to pay to the workers' representative a daily wage equal to the average wage, including any extra payments which may have been agreed upon. RUMANIA 397 they may nominate the persons authorised to take part in the conciliation proceedings, and in fixing the date and place of meeting. On the date fixed he verifies the credentials of all the representatives and tries to effect a reconciliation between the parties. The result of the proceedings is recorded in minutes. If an agreement is reached, it becomes binding on all the employers and workers represented in the dispute, even if they do not belong to the trade association concerned. If the parties fail to fix a period of currency for the agreement, the Act takes their place and itself fixes this period at six months from the date of the conclusion of the minutes. Arbitration Proceedings Arbitration is compulsory and all stoppages of work are prohibited under section 16 in all State, departmental and communal undertakings and institutions, irrespective of their nature, and also in the following undertakings which serve public interests and the closing down of which would endanger the health of the people or the economic and social life of the country : (a) undertakings for transport by land, water or air, including the persons employed in loading and unloading; (6) petroleum wells and distilleries, coal mines and undertakings for the utilisation of natural gas ; (c) gas and electricity works ; (d) water and power distribution works ; (e) mills, bakeries, and slaughter-houses ; (/) hotels ; (g) sewage and street cleaning undertakings ; (h) public health services. In the event of a collective stoppage of work in any of the undertakings referred to above, the premises and materials, the managing and administrative staff, and all things necessary to secure the working of the undertaking may be requisitioned (section 41). In return for the deprivation of the right to strike, section 42 provides for the drawing up of rules governing the conditions of work and remuneration of the persons employed in these undertakings. These rules, which the managements or employers concerned had to draw up within six months of the date the Act came into operation, had to be submitted to the Minister of Labour, who could approve them either as they stood, or subject to the 3Ç8 FREEDOM OF ASSOCIATION amendments he considered desirable after having consulted the employers' and workers' organisations concerned. Apart from these exceptions, arbitration is in principle voluntary. The Act gives the parties themselves the power to determine the nature of the proceedings. Only if the parties, in spite of being agreed on the actual principle of arbitration, are unable to agree on the procedure, have certain rules been provided, which then become compulsory. The arbitration commission is a temporary body. It consists of four active members and two substitutes elected in equal numbers by each of the parties concerned, together with a president, who is appointed by common agreement between the elected members. If these do not agree on the appointment of the president, he is designated ex officio by the president of the civil court if the dispute affects one or more undertakings within one and the same department. He is designated by the first president of the court of appeal if the dispute affects undertakings in the territory of several departments, and by the first president of the Court of Cassation when the dispute affects undertakings within the areas of several courts of appeal. The president of the arbitration commission must be chosen from among the most competent persons in the matter. The award of the arbitration commission is given by a majority of votes ; in default of a majority, or in the event of both or either of the parties refusing to send representatives to the commission, the award is issued by the president alone. A whole system of sanctions ensures respect for the provisions of the Act. Under section 27 any employer or worker who incites to a collective stoppage of work prohibited under the Act by an unlawful method, is liable to a fine of 50 to 10,000 lei even if the incitement remains ineffective. If the incitement takes place in one of the undertakings in which collective stoppages of work are prohibited, an additional penalty of imprisonment varying from one month to one year is imposed. In the event of a collective stoppage of work prohibited by the Act, the person or persons who organised it are liable to a fine of 50 to 20,000 lei. If it takes place in an undertaking in which strikes are prohibited a penalty of imprisonment for three months to one year is added to the fine. According to section 9 the employer or head of the undertaking is bound to notify the district inspector of the RUMANIA 399 Ministry of Labour of the outbreak of a dispute in his u n d e r t a k i n g . If he fails to do so, he is liable to a fine of 500 to 10,000 lei. Similarly a n y employer w h o in any way whatever prevents a representative from fulfilling his duties is liable to a fine of 100 to 5,000 lei, w i t h o u t prejudice to any damages which he m a y be sentenced to pay in case of illegal termination of a contract of employment. A penalty is also imposed on persons who, having been summoned according to law as witnesses by the president of the arbitration commission, fail to present a valid excuse for non-appearance. Finally, failure to carry out the provisions laid down in the minutes of the conciliation proceedings or in the award of the arbitration committee constitutes sufficient reason for the termination of the contract of employment, and gives the injured party t h e right to claim damages. T h e Act on collective labour disputes also punishes a t t e m p t s to interfere w i t h t h e r i g h t to work a n d sabotage. T h e offence of interfering with t h e right to work is defined as follows in sections 2 and 3 of the Act : Any person who by serious, immediate and positive threats or by violent action, prevents or enforces or attempts to prevent or enforce the doing of work by another during or on account of a collective stoppage of work shall be subject to the penalty of a fine of 10 to ¿00 lei and imprisonment for fifteen days to six months, except in cases where the Penal Code provides for a heavier penalty. Sections 33-35 define the offence of sabotage : The destruction, spoiling, removal, adulteration, faulty manufacture with intentional errors, or fraudulent manipulation of machines, plant, appliance, materials, goods and producís, jointly or severally, shall be deemed to be criminal acts of sabotage if the person guilty of them is bound by a contract of employment to the person to whom the objects specified belong. Passive resistance which puts a stop to production by preventing the normal working of the undertaking shall also be deemed to be acriminal act of sabotage if the person concerned stands in the same legal relation to the person affected as is defined in the preceding paragraph (section 33). If the criminal acts enumerated in the foregoing section, which are dealt with in the Penal Code, include also at the same time the special elements constituting the crime of sabotage, they shall be liable to the maximum penalty provided for in the sections of the said Code which refer to them. The criminal acts enumerated in the foregoing section which are not dealt with in the Penal Code shall be punishable by imprisonment for not less than three months and not more than two years, according to their gravity (section 34). The carrying out of acts of sabotage during and on account of a 400 FREEDOM OF ASSOCIATION collective stoppage of work prohibited by this Act shall constitute an aggravating circumstance (section 35). All the criminal acts referred to in this Act shall be dealt with by the court of the place where they are committed, except those which, owing to the nature of the penalty to be imposed on the guilty person, must be referred to the court of assizes. The local court shall deal with the case summarily in precedence of other cases, without the right of objection but with the right of appeal, in accordance with penal procedure (section 36). Proceedings may be taken at the request either of the parties concerned or of the Ministry of Labour or by the Public Prosecutor on his otficial initiative. In addition to the officials entrusted with investigations under the general law, the contraventions referred to in this Act may also be investigated by officials under the Ministry of Labour on the basis of a general or special delegation of powers given in writing by the said Ministry. The court of justice may take direct cognisance of official reports on investigations prepared by the aforesaid officials. These reports shall be accepted as proof in the absence of proof to the contrary (section 37). All fines imposed under this Act shall be collected for payment into the fund assigned for the organisation of technical instruction under the Ministry of Labour and Social Insurance. If the author of the contravention is insolvent, section 28 of the Penal Code shall apply, i.e. the fine may be commuted into imprisonment (section 38). To sum up, the Labour Disputes Act first of all absolutely prohibits all collective stoppages of work in public services and public utility undertakings. Secondly, it prohibits such stoppages during conciliation proceedings. In every case it punishes all attempts to interfere with the right of work by unlawful means, as well as acts of sabotage, whatever the form they take. To these limitations on the action of trade associations arising out of the labour Disputes Act are added the general limitations of public law. In this connection reference should be made in particular to the restrictions contained in the Act on the standardisation of administration. This Act makes the mayors of the communes responsible for the maintenance of public order and the observance of measures for the public safety, while the prefects are made responsible for the general supervision of the institutions and all bodies corporate in the department. It also gives the mayors and prefects in their respective areas the right to prevent and repress all criminal acts interfering with public order and the general safety of the State. It will be recalled that the powers of the administrative police are always expressed in the form of authoritative acts binding on the individual. All acts of violence and demonstrations likely to interfere with public order, whether performed by an individual or an association, are punished by the administrative police in 4OI RUMANIA virtue of their powers under administrative law, without prejudice to any penal sanctions in the case. The characteristic feature of the action taken by the police in this connection is usually that they have full discretion. In other words, the Rumanian legislature gives the police authorities complete freedom of choice as to the time and means of action necessary to ensure public order. Moreover, such discretionary action, taken in pursuance of an Act or regulation, is outside the jurisdiction of the courts. On the other hand, it must immediately be notified to the higher administrative authorities. Freedom of Association 20 CONCLUSION In Rumania the problem of organising and protecting the guilds until quite recently took precedence of that of organising and protecting the wage earners. It is a significant fact in this connection that the 1912 Act on brotherhoods and guilds, which is still in force, makes these bodies not only the defenders of the specific interests of craftsmen, but also the institutions responsible for social insurance. The trade union movement, which may be said to some extent to have grown out of the guilds at the beginning of this century, threw off their influence under the direction of the Socialist Party. From comparative insignificance before the war (barely 15,000 members) it reached a more influential position soon after the war (250,000 members). The rise was rapid but of short duration. The failure of the general strike of 1920 and subsequent Government repression meant first a stoppage, and then actual retrogression. To prevent the renewal of disturbances of this kind, the Government took the severest action both in fact and in law ; in fact, by suppressing existing trade union organisations which were held to be dangerous to public order ; in law, by defining the legal status of the new associations, which must stand solely on the ground of the protection of trade interests, as regards both their freedom of association and action and their right to stop work. The law on trade associations is derived from three sources : the Constitution of 1923, which in Articles 5 and 29 guarantees the principle of freedom of association ; the Act of 25 May 1921, which defines the status of recognised trade associations ; the Act of 6 February 1924 amended by that of 20 April 1927, which organises the conditions of legal personality in general. Trade associations may choose between the legal status conferred on them in the general law by the Constitution, and the special status established by the Acts of 1921 and 1924. In actual fact the choice is a matter of pure theory, for associations w"hich accept the status RUMANIA 403 ander the constitutional principle are strictly supervised, and moreover, have no legal personality. They are therefore driven to accept the special status. The Act of 1921 grants the right of association not only to wage earners and employees, but also to the liberal professions and all persons employed in public services. Similarly, officials are authorised by section 25 of the regulations governing their status (Act of 19 June 1923) to form associations, on condition that these consist solely of officials. While very liberal as to the persons entitled to belong to associations, the Act of 1921 is very severe as to the conditions to be fulfilled to acquire and retain legal recognition. These conditions may be summed up as follows : registration in the register of recognised trade associations, without which they cannot exist legally, such registration being conditional on previous authorisation given by the courts of first instance after ascertaining that the rules of the association comply with the very detailed provisions of the law concerning their internal organisation and the working of their administrative bodies. The Act of 1924 on legal personality, in spite of the relaxations introduced by the Act of 20 April 1927, renders the supervision of trade associations with legal personality even more stringent. In return for these severe regulations, the associations are given wide powers as regards the organisation of their institutions, their collaboration with the public authorities, and their work of protecting trade interests in the civil and social field. I t may be added that the 1927 Act on chambers of labour and the Superior Labour Council makes systematic provision for the joint participation of employers and workers in all legislative or administrative action dealing with economic and trade matters. The right to strike was defined by the Act of 4 September 1920. This Act, which introduced a procedure for conciliation and arbitration, makes the right to strike subject to certain limitations, although it continues to be recognised in principle. In the first place, all collective stoppages of work, whether strikes or lock-outs, are prohibited during the compulsory conciliation proceedings. Secondly, arbitration is compulsory, and therefore stoppages of work are prohibited, in public services and public utility undertakings, this term being understood in the widest sense. The arbitration award is final and binding on the parties. Respect for legislation on trade associations is ensured by penalties of fine or imprisonment.. BIBLIOGRAPHY I. — O F F I C I A L PUBLICATIONS lnspectia muncii în 1924, 1925, 1926. Legislatia în vigoare asupra organizatiilor profesionale. Bucharest, 1927. Miscarea sindicalä în Romania în 1923. Bucharest, 1924. Organizatiile proiesionale la începutul lui 1926. Bucharest, 1927. Ancheta industriei, 1902, 1920. Conílictele colective de muncä în 1924, 1925, 1926. Conveníale colective de muncä în 1924, 1925, 1926. Congresul meseriilor si învâtamântului muncitoresc. din 1926. 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