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Labor unions in Iraq

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Labor unions in Iraq

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Content LABOR UNIONS IN IRAQ, A fheels Presented to the Faculty of the Department of Economics University of Southern California In Partial Fulfillment of the Requirements of the Degree Master of Arts hy Fuad'Hanna fellew October 195^ UMI Number: EP44741 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. UMT Dissertation Publishing UMI EP44741 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 >5 £<L ‘55 _ Tc5,7V" T h is thesis, w ritte n by FUAD HANUA TELLEW u nd e r the guidance o f h.Jk§..Facuity C om m ittee , and a p p ro ve d by a ll its members, has been presented to and accepted by the F a c u lty o f the G raduate S choo l in p a rtia l fu lfillm e n t o f the requirem ents f o r the degree of MASTER OF ARTS D ean D a te 1900 F a cu lty C om m ittee C hairm an TABLE OF CONTENTS CHAPTER PACE I. INTRODUCTION .......................... 1 The problem 2 J Statement of the problem............ 21 Importance of the problem ............... 3 i Organization of the thesis.......... ty Review of the literature................. 5 Sources of d a t a ......................... 6 II. GENERAL CONDITIONS IN IRAQ AFFECTING LABOR . . 8 Area and people......................... 8 Political status......................... ♦ 10 The economic situation ..................... 11 Agriculture....................... 11 Industry . ............................. 1? T r a d e .................................... 20 The standard of living..................... 22 Education.................................. 30 Conclusion....................... 32 III. MAJOR LABOR PROBLEMS AFFECTING WRKERS IN IRAQ AND THE UNITED STATES................... . 33 Unemployment........................... 35 Effects of unemployment................. 35 Effects on the employer.......... 36 Effects on the employees ....... Effects of unemployment upon society . Employment legislation in the United States . ..................... . . . The Employment Act of 1931 ...... The Employment Act of 19**6........... Employment conditions in Iraq ...... Pacts about distribution of manpower in Iraq ......................... Agricultural employment ........... . Employment in Industry ............... ^Employment in handicrafts ........... Other activities . . s Unemployment problems in Iraq . . . . ■iy' ^Underemployment in I r a q .......... . ^Stability and mobility of workers in Iraq . . . ^ Factors affecting the solution of the «/ unemployment problem............... & Bnployment measures to protect workers in I r a q ................... .. Unemployment compensation In the United States......................... .. . . iv CHAPTER PAGE Unemployment compensation In Iraq . . 75 Administration of employment in the United States................................... 76 Administration of employment in Iraq . . 77 Measures suggested to cope with employment problems................................ 79 Physical impairment...................... . . 81 Industrial accidents in the United States 81 Number and types of accidents........ 81 The costs of accidents ......... 83 The causes of industrial accidents . . . Bk Legal provisions relating to accidents and compensation in the United States . . . 85 Workmen's compensation acts in the United States ....................... 87 Coverage................ 87 Rates of compensation................. 88 Medical benefits ....................... 90 Waiting period .............. 90 Conditions of liability ............... 90 Employer obligations . . . ............. 91 Benefits.............. 91 V CHAPTER PAGE Industrial accidents and workers* compen sation in Iraq . ....................... 9k Workers’ compensation in Iraq ..... 9k Occupational diseases . ................. 97 Losses from industrial illness in the United States ....................... 98 Losses from industrial Illness in Iraq . 99 Classification of occupational diseases. 99 Protecting the worker from industrial diseases in the United States........ 101 Protecting the worker from industrial diseases in Iraq............ 103 Sickness in the United States ...... 106 Statistics about Illness in the United States .. .. ... .. .. ........ 107 Disability insurance in the United States............................... 108 Disability assistance ................. 112 Health insurance ....................... 11^ Sickness problem in Iraq ......... 116 Disability insurance in Iraq.......... 119 Disability assistance in I r a q ........ 119 Health Insurance In Iraq............... 120 vi CHAPTER PAGE Old age problem .......... . 121 Sources of the problem . . ................. 122 Aiding the aged in the United States .... 122 Post-retirement utilization ....... 122 Private aid: union benefits ....... 123 Joint union-employer provisions...........123 Private pension plane ................. 123 Public pensions, railroads..................12*f Social Security Act . . . ............. Old-age assistance . ................... 130 Old age problem in I r a q .....................131 Hethods of coping with old age in Iraq . . . 132 IV. HISTORY OF THE LABOR MOVEMENT: THE RIGHT TO ORGANIZE .................. 136 The right to organize in Europe............... 136 Evolution of the right to organize in England.............. 139 Evolution of the right to organize in France ..................... li+1 The mftrch of liberal labor laws to other countries ..... ..................... 1^2 Organized labor under fascism in Italy . . . 1^-3 Labor organizations under nazlsm in Germany, li*? vil CHAPTER PAG-E Organized labor in Russia . ............ 1*1-9 The Right to organize in the United States . 151 Employers* attitude toward labor organizations....................... 15** Government attitude toward labor organizations before 1935 161 Norris-La Guardia anti-injunction act . 167 The national, industrial recovery act . . 171 The national labor relations act .... 175 The right to organize since the Wagner a c t .............. 193 Conclusion ........... ........... 208 V. LABOR UNIONS IN IRAQ ................. 212 Unionism from its beginning until 1936 . . . 213 The period under the Ottoman regime until 192*4 - .............. 213 The period from 192*1- until 1936 ..... 21L Beginning of the establishment of labor organizations ............. ..... 217 Activities of the workers association . 219 The railway workers strike of 1930 . . . 219 The general strike against taxes .... 221 The first attack on labor organizations. 222 viii CHAPTER PAGE Proposals of labor concerning the labor l a w ..................* .............. 224 The international labor convention of 1933 ......... 228 First federation of workers........... 230 The boycott movement against the electric company • 231 The second attack on labor organizations 235 The period beginning 1936 until the present time.................................... 237 Labor and politics ............. 240 Unionism during the last decade . . . . . 242 Government policy toward strikes ..... 245 The demands of the Iraqi worker .... 248 Examples of government policy toward strikes in recent years ........ 249 The railroad strike................ . 249 Government unions ............. .... 250 The Kawer Baghi incident ............. 251 Cigarette workers strike ............... 257 The dock workers strike ............. 259 The oil workers strike................. 262 Conclusions ......................... 265 ix CHAPTER PAGE VI. LABOR LEGISLATION IN IRAQ .................. 267 The labor law ........... 26? Enforcing the l a w .......................... 269 New laws proposed................... 271 Wages ................... 273 Settling disputes .......................... 275 Workmen’s compensation . ................. 277 Formation of trade unions................... 279 The right to organize..................... 280 Some requirements for the formation of unions .......................... 281 Who can form the trade unions........ 28? Abolition of unions................... 1 288 VII. SUMMARY AND CONCLUSIONS ........... 291 Summary................. ........... .. 291 Conclusions............................... 295 BIBLIOGRAPHY........................................ 297 LIST OF TABLES TABLE PAGE I. Classification of Labor Problems ....... 31* II. Proportion of Wage Earners Under Union Agree ments in January, 1 9 ^ 5 ..................... 157 CHAPTER I INTRODUCTION Organized labor has become one of the corner stones of our society today. Socially and economically labor unions have reached such an accepted position as to be actually entrusted with the welfare of the worker and the protection of his rights. This stage of progress was the result of two impor tant elements that shaped the movement of organizing labor; the first element is recognized through the evolutionary growth of unionism and the acceptance of these new organiza tions within the society as one of the legally authorized pressure groups; the second being the element of necessity i (which helped and protected this union growth in the sense that organized labor could be steered through the several types of peaceful settlement of disputes between the organized employees and the employers. Through the accept ance of such organizations more justice and better peaceful employee—employer relations have been achieved. Workers desire freedom, security, and progress in attaining such things as physical survival, material comforts, social recognition, and self-expression (a voice in determining the conditions affecting the degree to which 2 their other goals are achieved). Looking at their circum stances— in respect to job security, wage ineome, and physical and mental well-being— we notice real progress toward the attainment of their goals. One of the really important reasons for this progress has undoubtedly been the rise of unionism to a position of power and eminence. Most students appear to believe that workers have gone farther through collective action than they would have as individuals, They have achieved higher levels of all-around want-satisfaction through the strength developed by organization than they would have if they had remained individually weak in the face of powerful employ ers. Realizing these facts, workers in many fields long ago yielded to the universal human urge for organization to attain their goals. I. THE PROBLEM Statement of the Problem It is the purpose of this study (1) to survey the development of the Iraqi labor unions and the efforts of the Iraqi workers for organization; (2) to survey the scope of government intervention against organized labor; (3) to survey the scope of government action and legislation for coping with the major labor problems in Iraq. 3 In the light of such survey, the study will critical ly analyze the prevailing labor policy in Iraq and state where it is advisable for the Iraqi government to adopt some principles of the labor institutions, practices and legisla tion of the western world, especially those of the United States. Importance of the Problem In Iraq, after a bitter struggle, the labor movement obtained recognition through a law granting workers the right to organize unions. This, law, fair in some respects, has proved to be unsatisfactory in guaranteeing unions freedom to organize. Constant interference and suppression by the government against organized labor and workers in general have been a common practice. The free atmosphere necessary for labor organizations to fulfill their duties has been almost completely eliminated. Consequently, the Iraqi labor unions have been weak, unable to operate and to grow in power as agencies fcapable of raising the standard of living and Improving the working conditions of the workers. These conditions definitely account for many violent incidents which have taken place in recent years between workers and government forces. These same conditions are threatening to produce undesirable political and economic consequences harmful to both the community and the economy of Iraq if continued. II. OBGAHIZATIOH OF THE THESIS The thesis is composed of seven chapters. The first and second are introductory chapters. The third, entitled • ’ Major Labor Problems Affecting Workers In Iraq and The United States,1 * shows that the manner in which Iraq is dealing with these problems is unsatisfactory in comparison to the United States' policy in respect to the same prob lems. The attention here is focused on the fact that the problems are serious and that Iraqi unions, being forced to remain weak, are unable to participate in solving these problems as have the unions in the United States and the western world. The fourth chapter deals with the historical development of the right of workers to organize. A detailed study of the right to organize in the United States is also provided in this chapter. It shows that unionism is indispensable to labor, that in the democratic countries no successful plan or technique has ever been able to stop the movement of workers toward organization, and the best that was found was to devise a method for keeping this movement under supervision. The fifth chapter concerns Itself with labor unions in Iraq. It speaks about the efforts of workers to organize, their organizations and their 5 activities, and government activities against organized labor. Major emphasis is upon the dangers involved in the government's anti-labor policy. The sixth chapter shows the defects and deficiencies of the present Iraqi Labor Law in coping with the labor problems in Iraq. It also particu larly shows how the Law helps an anti-labor government to abuse the Law, especially the part relating to the right of workers to form unions. The final chapter contains the conclusion of the study. A view of the highlights of the thesis is given and other problems that bear attention are exposed. Review of the Literature Many studies have been made of the Iraqi agriculture, Industry, commerce, banking, and other phases of the economy of the country. However, very little has been written, or at least published, on the subject of labor in Iraq and, particularly, very little on the Iraqi labor unions has been recorded. Articles scattered among newspapers, periodicals, and government and foreign publications have touched the surface of the subject very briefly. Mo thorough study of the labor union problem and other labor problems has been attempted as is done here. In fact, the short account, given in this thesis, of the birth and struggle of organized labor in Iraq— a little known and much misunderstood 6 country— is the first account to be written of the labor unions and labor problems in Iraq. Sources of Bata Information upon which this study is based was derived from a variety of sources. It has been assembled from almost all the material available on the Iraqi union movement, the labor legislation and labor problems in Iraq. Almost all the important books and articles written on this subject have been studied. Information about the early movement of unionism is based mainly on the Directory of the Kingdom of Iraq, the Iraq Directory, and articles in the Al-Ahall newspaper of Baghdad. Data about unionism in recent periods, labor legislation, and other labor problems are assembled from the latest material available. News papers, periodicals, government and foreign publications, books dealing with the subject, all have been consulted. The writer must admit, however, having had difficulty in collecting material for the subject. He requested the International Labor Organization in Geneva, its branches in Washington and London, for whatever material was available on the subject of Iraqi labor. Much to his disappointment he was supplied with only a few sources and references. He also had difficulty in collecting material from his own country, due to the fact that very little is written or 7 published about Iraqi labor. Concerning the material on unionism, labor problems and labor legislation in the United States and the western world, there was no scarcity of material. Much has been written about labor in these countries. At any rate, owing to the difficulties of collecting material, the writer must apologize for any omissions or inaccuracies that may occur in the narrative. It is the hope that this study will result in a comprehensive perspec tive of the problem while remaining concise enough to Indicate the facts and issues. CHAPTER II GENERAL CONDITIONS IN IRAQ AFFECTING LABOR If we are to assess correctly the situation In Iraq with regard to labor conditions, we must first take account of some basic factors and conditions, other than labor codes and government policies, which seriously affect labor conditions in every place. Although labor movements or labor conditions are primarily influenced by labor codes applied and governments policy and attitude toward labor, it is here recognized that factors such as resources and potentialities of the country, its population and political status, the economic conditions, the standard of living, and education play an important role in formulating the labor conditions, and so forth. Therefore, this chapter is provided for the study of these factors. I. AREA AND PEOPLE Situated almost at the meeting place of three conti nents, Iraq is one of the small countries of the world, with an area of 168,400 square miles, accommodating a population of about five million or nearly thirty persons per square mile. wIraq possesses impressive potentialities for 9 economic development,"1 therefore we could safely conclude that "it is sparsely populated in relation to its resources.“2 The population of Iraq is complex and may for practi cal purposes be grouped in communities, each comprising the members of a particular religion (Mohammedanism, Christian ity, and so forth) who follow a particular rite. Thus, among the Mohammedans, the Slnnah form one community and the Shia the other. About four-fifths of the population are Arabs, the rest are Kurds. The tribal system, to which almost the whole population outside the cities is subject, may be considered a heritage from Arabia and is considered today one of the obstacles to the development of the country. Apart from the Marsh tribes in the South, tending their buffaloes from canoes, there are Bedouin tribes,. nomadic pastors of camels, sheep and horses; there are cultivator tribes near the rivers, and semi-settled, semi- nomadic tribes, whose behavior varies with the climate. Every stage in tribal development from the desert nomad to ^ Economic Development of Iraq, Report of a mission organized by the International Bank for Reconstruc tion and Development (London: The Johns Hopkins Press, 1952), p. 1. From now on this will be referred to as "The Economic Development of Iraq. ' * 2 Loc. cit. 10 the riverain cultivator can he observed, and it is inter esting to note how few of his tribal characteristics the BF e l l a h H3 has lost in his transition from the desert to the town.^ However, from the Juridical point of view, as regards tribal criminal disputes and so forth, people of tribes are subject to the Law of Tribes; a system of special rules governing personal status, which have been recognized by Iraqi legislation and which are different from those applied to the people in the towns. II. POLITICAL STATUS In 1932, Iraq became an independent sovereign State under King Faisal the First, and was admitted into the League of Nations and to the International Labor Organiza tion in the same year. Iraq, according to its constitution, is a democratic constitutional monarchy; it has a House of Deputies and House of Senators.5 The country is divided into fourteen 3 A Fellah is a peasant. ^ Committee of officials, Kingdom of Iraq (Baltimore: The Lord Baltimore Press, 19^6), p. 29. ■5 However, since the independence of Iraq until the present time the constitution has almost never been complied with as far as democratic form of government is concerned. Political parties have been suppressed and abolished many times. The government officials were usually appointed. 11 Llwas or districts (state) and its major cities are Baghdad (the eapltol), Basrah, Mousel, and Kirkuk. In the last three cities oil fields exist. Iraq has been a member of the United Nations since December 21, 19^5» and became a member of the International Labor Organization shortly after that. III. THE ECONOMIC SITUATION Before describing the economic situation in the country, it should be made clear that statistics are still very Incomplete and sometimes only approximate figures can be given. In the field of labor, statistics cover almost nothing but a few worthless departments. Agriculture Iraq is predominantly an agricultural country. About 70 per cent of the population is engaged in agriculture, and both industry and commerce depend in turn largely upon farming and animal husbandry.^ Iraq earns most of her foreign exchange from the export of agricultural products, The same thing may be true regarding Deputies and Senators. This was caused either by foreign influences or by abusing the spirit of the constitution by the dominating group. ^ Economic Development of Iraq, op. cit., p. 12 the most Important of which are grain and dates. Agriculture in Iraq is devoted largely to the culti vation of winter crops. Because of the lack of rain in the summer, during that season crops can be grown only under Irrigation. In the rain-fed zone of the North-, summer crops can be grown only on a moderate scale in small irrigated areas. In the irrigated zone of Central and Southern Iraq, the limited water supply restricts the area devoted to summer crops to only about one-quarter of that grown to winter crops. Barley and wheat are the only significant winter crops, while rice and, more recently, cotton are the principal summer crops. The area sown to sesame, corn, millet and grain sorghum is comparatively insignificant. Tobacco assumes some importance in the mountainous areas of the North. Fruit and vegetables are quite important. Iraq is the world*s principal producer and exporter of dates; excellent eitrus fruit is grown, particularly in the Diyale valley in East-Central Iraq, for domestic consumption, and other fruits and nuts are cultivated, mainly In the North. Livestock raising is an adjunct to agriculture rather than an Integral part of it. Sheep and goats predominate because they thrive despite poor grazing and feeding. Sheep and goats, as well as camels, are kept primarily by pastoral 13 nomads who probably number well over two hundred thousand;7 these nomads pasture their animals in the deserts in the winter and move into the more fertile areas in the summer * Cattle and water buffaloes are the livestock of the settled agricultural population. Many peasants, however, have no livestock at all except for a draft animal or two. Live stock are left to forage for themselves, with only some supplementary feeding with straw and perhaps barley in the winter. Only livestock in and around the cities are systematically fed. Crop yields are generally low. The water supply is frequently inadequate. Agricultural methods have, on the whole, remained unchanged for centuries. Little or no animal manure or fertilizer is applied to the soil, animal dung being used largely for fuel. Crop rotation is wholly inadequate and makes little or no provision for soil- building crops. Salinity, attributable to poor drainage, has materially lowered the productivity of land in the irrigation zone. Owing to insufficient and poor draft animals and lack of proper equipment, the soil is often poorly prepared, and weeds detract from the yields. Up to half of the winter crop area is left fallow as a means of ? Ibid., p. 5» t iS I I restoring fertility, but since the land is generally allowed to go up in weeds to afford grazing for animals, the efficacy of the fallow system is limited. The productivity of livestock is also low, primarily because of inadequate feeding, but also because of poor breeding, disease and insufficient shelter. Except for some rather limited areas in various parts of Iraq and a promising settlement in the Dujaila district of South-Central Iraq., the country is almost wholly devoid of peasant proprietors. The ownership of cultivated lands is largely in the hands of sheikhs and urban proprietors who entrust the actual cultivation in small parcels to sharecroppers. According to the cadastal survey which is half completed, 67.1 per cent of the privately-owned land is in units exceeding one thousand donums.8 The sharecroppers have neither the equipment nor the knowledge to Increase production and, for the most part, eke out a bare subsis tence. The land assigned to the Fellah or peasant generally changes from year to year so that the cultivator has virtually no incentive to improve it. Moreover, the share- cropping system discourages the cultivation of animal fodder crops since the customary apportionment of shares between 8 One donum equals 0.25 hectares or 0.6l?76l acres. 15 landlord and tenant does not lend Itself readily to such crops. Most of the landowners themselves show little interest in improving agriculture. Enjoying a large share of the crop with the expenditure of little or no effort on their part, they have little Incentive to raise output. The depressed economic condition of the Fellah or sharecropper undoubtedly retards progress. It undermines the health and vigor of the rural population, limits the market for industrial products and may, in the long run, jeopardize the stability of the social order. The share cropper* s plight is attributable both to his poor economic bargaining position— as they have no unions or cooperatives to speak for them— and to the low productivity of agricul ture. In the irrigation zone, the Fellah generally gets only half of the crop, even though the state had provided the irrigation works; and his share falls substantially below this percentage (usually one-tenth of the crop) when ever the land is Irrigated by privately-owned pumps or the landlord supplies seed, draft animals or machinery. In a country where capital is scarce in relation to manpower, the ability to provide the means of production— land, seed, animals, and machinery— almost invariably also carries with the ability to exact a high proportion of the return. In Iraq, this is reinforced by a law which forbids the 16 sharecropper to leave the land as long as he is indebted to his landlord, which is generally the case. In the long run, the sharecropping system could be made quite tolerable if the productivity of the land were raised; and the economic bargaining power of the sharecropper could be increased by giving him access to the means of production— seeds, animals, and implements— on more favorable terms through such institutions as cooperatives. In the short run, however, the sharecropper’s position is likely to improve only as the landowner or the government take steps to improve his lot in order to keep him on the land. With the present high cost of living, the agricultu ral laborer's income is extremely inadequate and there is a * great deficit in his annual budget. Unless the sharecrop per's status is improved, and a sound rural policy providing for irrigation schemes, and a system of cooperative credit, marketing, purchase and hiring of equipment is carried out, there is great danger that there will be a continued flight of labor from the land, impairing the country's agricultural production. In addition, agricultural workers thus leaving the land will drift to the towns to seek easier employment. They will accept work for low wages or as casual workers because this is still much better than working under the sharecropping system. This state of affairs, if continued 17 on a large scale, will cause unemployment and will result in lower wages and lower standard of living— which are already low enough— to all citizens ana industrial workers in the towns. The need for agricultural reform, therefore, is necessary, or otherwise there will be a large element of unproductive and unemployed labor in the towns while culti vable land in the countryside lies derelict for want of laborers to reclaim it. Industry Before World War I there was no modern industry in Iraq, but only wool and cotton spinning and weaving by handicraft methods. After the war, during the 1920!s until today, however, much capital was invested in industry, and most of the craftsmen became workmen. Iraq*s Industries are still little developed in spite of the impetus given to local production by the shortage of imported goods during the war. Apart from the oil industry ttfhich employs about fourteen thousand people, probably not more than two thousand are working in modern industrial plants. “These plants represent a total capital investment of approximately ID if,000,000 and an annual gross income of about ID 3,000,000.t t 9 Industry is largely confined to the 9 Ibid., p. 33- ___ ____ 18 processing of agricultural products, the production of building materials such as cement and bricks, and the manu facture of consumers’ goods like textiles, soap, matehes, cigarettes, shoes and beverages* The agricultural produce industry, like the building materials industry, is becoming increasingly important. Drawing almost entirely on local raw materials, it can offer goods for which there is a demand, such as vegetable oil, soap, skin and leather, at reasonable prices. Conditions in Iraq are generally favorable to further industrial development. An expanding agriculture should provide more materials, such as fibres and oil seeds for processing, and when the standard of living among the rural population is raised there should be a growing domestic market for industrial products. In oil and natural gas the country possesses a cheap source of power and fuel as well as an important source of raw materials. There are surface indications of iron, copper, zinc and chrome ores, as well as of the existence of sulphur and salt deposits. In the cities there is adequate manpower for Industry, and the Iraqi workman with proper training is generally adept at learning Industrial processes. Skilled manpower, however, is very limited, and there is little of technical “know how. 19 Other limiting factors in industrial development are the lack of sufficient private capital and Initiative. Much capital* particularly that accumulated from agriculture, is hoarded and the balance is generally Invested in urban or rural property, which is regarded as less risky, or in commerce, where investors anticipate a higher rate of return. We may add, also, that the reason behind the investment in real estate or commerce, rather than invest ment in industry, is that the Iraqi employer is probably not yet familiar with the modern world of labor and industrial relations. Accustomed to a semi-paternal relationship with his workmen, he probably finds the new order or welfare regulations disturbing. However, while there is a trend toward increased private investment in Industry, particu larly since the war, industrial development in the immediate future will have to depend very largely upon the initiative or financial assistance of the government. Statistics for 1949, based on the number of workers' identity cards issued, show that the total number of the Industrial labor force is 491,315- However, according to the same statistics, only about sixty-nine thousand workmen and craftsmen employed in more than twenty-eight hundred Industrial undertakings were able to benefit from the 20 provision of the Labor Law.10 In other words, over a million persons are living directly from industry. Trade Trade is probably the third most important occupa tion. To all appearances, the system of distribution is extremely wasteful. Both in the small towns and In the larger cities there are numerous traders with very small stocks of goods, who cannot possibly earn more than an exiguous Income, even if their margin of profit is high. The position is, however, not likely to be cured until the general level of Incomes rises and there is alternative opportunity for employment. Iraq produces most of its food, but apart from fuel, tobacco and some building materials, most of its other requirements must be imported. Even the small local indus tries and handicrafts depend to some extent on imported raw materials. Much of the trade is therefore foreign trade. Baghdad is the principal center for the import trade, although Mosul is the main center for the export of wool and Basrah for dates and barley. 10 Directorate General of Labor and Social Security, Annual Report, 19^9 (Baghdad: The Government Press, 1951), pp.6~.10. From now on this will be referred to as “Annual Report, 19^9.** Also Cf. post, Chapter V, for the reason. 21 Excluding the oil companies* figures of imports and exports, statistics for the period from 19^7 to 1950 are as follows: imports about ID^ 130 million, exports ID 53 million, A great percentage of the imports constitutes consumer goods; for example, the figures for the years 19^8 and 19^9 Indicate that about 60 per cent of the Imports other than those by the oil companies were consumer goods.^2 The high import figures, due to the low degree of industrialization and the lack of certain products, show that Iraq is an attractive market for foreign producers. However, many of the Imported goods are luxuries or are not necessary to the economy. Prom the social point of view this state of affairs is harmful, since it encourages the natural inclination of the Iraqis to spend money unprofit- ably on goods which are quickly used up. As an example we may cite the extraordinary number of expensive cars which are converted after a few years1 use into taxis or delivery vans. Nearly 10 per cent of the total population gains its livelihood from trade— one hundred ten thousand workers and shop assistants plus a few thousand merchants representing, H id » Iraqi Dinar « 3=1 = |2.8. 3-2 The Economic Development of Iraq, op. cit., pp. 156-158. 22 with their families, a total of about half a million per sons. The annual income of the commercial worker is very- low, and it has proved to leave a deficit in his budget. Trade in Iraq is by no means monopolized, although there are a number of large firms engaged in the export- import business. Competition, in fact, is quite keen in bulk commodities, like sugar, tea and textiles. There is no organized market, either in export or import commodities, so that, as speculation is rife, prices can swing rapidly upward on the basis of rumored or actual shortage. IV. THE STANDARD OF LIVING^ No systematic estimate of the national income has yet been made. A rough estimate by the Statistical Office of the United Nations put the Income per head in 19^9 at eighty-five dollars. The equivalent in dinars would depend on the exchange rate chosen for conversion, which is neces sarily an arbitrary choice; at ;the old rate, it would be about ID 20, at the new rate ID 30. The Mission recently sent to Iraq by the International Bank for Reconstruction and Development concluded thatf the estimate quoted above was approximately correct and that the total income per head probably fell somewhere between ID 20 and ID 30. 13 All statistics and facts under this subject are taken from the Economic Development of Iraq._________________ 23 In any event, a broad estimate of this kind which embraces both the very high incomes of the landowners and the very low incomes of Fellahin can do little more than convey a generalized impression of poverty. While It is not possible to give even a rough idea of the distribution of incomes in statistical terms, some description of the standard of living of the people may be of value. Agriculture, which is the most important occupation in Iraq, is also the most difficult to describe, conditions being extremely varied and info mat ion virtually nonexis tent. However, a hypothetical example of the condition of a Fellah in the irrigation zone, where barley is the princi pal crop, may serve as a rough guide. In this zone a Fellah, who cultivates twenty-five donums of winter crops annually, is probably above the average. Estimates of yields vary enormously, even apart from the annual variation due to water supply. Landowners tend to give a high estimate (that is, 500 kilograms1^ per donum), because they believe that the Fellahin withhold part of the crop in order to obtain a larger share. This is probably true and accounts for the tendency of the Fellah to give a low estimate (that is, 200 kg.). Apart from this, the land ^ One kilogram equals 2.2 pounds. zk varies greatly in quality* pump-irrigated land being gener ally more productive. The Fellah, however, gets a smaller share on pump land. A yield of three hundred kg on flow-irrigated land would probably not be much below average, if at all. The total crop on twenty-five donums would then be 7.5 tons. Of this the Fellah would probably get as his share two-fifths or three tons, out of which he has to retain seed for the next year and to pay for some help with the threshing and harvesting, in all amounting to one half to one ton more. The balance would thus be two to two and a half tone. Eis family might consist of five or six people, Including him self, his wife and children, and one or two other relatives such as his parents or an unmarried sister. The minimum retained for food would be one ton and, in practice, it is probably more. He would thus have little more than one ton left to sell and he might even have to keep part of this for his draft animals, if they are unable to find enough stubble and other natural fodder. The price which a Fellah gets for his grain usually is very much less than the wholesale market price in Basra or Baghdad. Although rail transport is very cheap for grains, the other costs such as local transport, bagging, weighing and storage are highj the merchant's profit and the 25 "istlhlak" tax also have to be deducted. Finally, the Fellah's funds are usually exhausted before the harvest season and he frequently accepts a low forward price on his crop before it is gathered. For the 1950-1951 crop, prices have been high (over ID 20 per ton), but many Fellahin undoubtedly sold^ forward at as little as ID 10. This would not be an unusual price in past seasons, Thus, ID 10 for the winter crop and perhaps another ID 10 for a small summer crop of sesame would constitute his total cash income for the year.^5 This income would usually be spent on food, clothing and possibly some low-grade tobacco. Two of the most impor tant items in food expenditures are sugar and tea. Dates, .particularly in the South, and a few vegetables such as onions are also purchased, but, on the whole, most fruit and vegetables are beyond the reach of the Fellah and are sold in the towns. Meat is only eaten occasionally, although fish is available in the marsh areas of the South. Nor does the Fellah who owns no animals other than his draft animals consume milk or leban (sour milk). Clothing would consist of some cheap cotton sheeting sufficient for a few garments and occasionally a second-hand Jacket; few Fellahin wear 15 Ibid., p. 133- 26 shoes. Hardly anything is spent on housing or furniture, i the living quarters being a small mud hut without windows, and hardly any furnishing but a few mats and cooking utensils* Soap, for example, is undoubtedly a, luxury. Life is not far above the subsistence level and must often be below it. In the process of selling his surplus crop and making his small purchases, the Fellah is taxed. While with crops consumed in Iraq the istihlak tax Is largely borne by the buyer, in the case of an export crop such as barley, which is influenced by world prices, the tax falls most heavily on the producer. At the end of 1950, customs duties on sugar were about one-fifth to one-quarter of the Baghdad retail price; on tea, about one-sixth. Duties on textiles are also high, but cannot be so easily measured in terms of the retail price, while excise and other revenue collected on tobacco are also very large. In the case of barley, these indirect taxes on sale and purchase might reduce the Fellah*s real income from his saleable surplus by as much as one-third. Although the villager contributes to the revenue of the country, he receives little in the way of benefits from its expenditure. He is usually without any kind of educa tion, which in Itself militates against the improvement of 27 his position as an agricultural worker. Thus the average Fellah would not he able to read even the simplest leaflets, which might be published to improve his methods of cultiva tion. Government officials, who might impart this knowledge by personal contact, are too few or too hampered by lack of transport to be able to reach him. Much the same applies to his health, which is generally poor in the first instance because he is unable to afford an adequate diet. Apart from a few generalizations, lack of information prevents comparison with other types of agriculture such as rice cultivation in the marsh areas of the South, date- gardening along the Euphrates and in Basrah or grain-growing in the North. In general, the rice areas appear to be extremely congested and living standards are probably the lowest of all. Land in the North is more plentiful, the small holder is more common, and, in any case, the share of the landlord is far lower, but rainfall is uncertain and yields vary disastrously from year to year. There are, of course, Fellahin who have additional sources of income. The principal source is livestock. A Fellah, who, in addition to working the land, owns a few cows or water buffaloes is, by comparison, a rich man, but such people are not common. The capital required to purchase an animal may be several times the annual cash 28 income of the poor Fellah. Some may seek casual work during the long off-season, hut again these are the minority. The condition of the settlers in the Dujaila is in striking contrast to that of the average Fellah. The principal reason for their improved standard of living is the fact that they do not have to pay any share to a land lord. Their Income is for that reason alone more than double. In addition, they have been able to acquire cows, sheep, goats and chickens. Many of them have fruit gardens. As a consequence, they have a far healthier diet and are obviously better dressed. In fact, it is not uncommon to find a fanner who himself employs a Fellah. Although this is partly a consequence of the large size of his plot (100 donums Including fallow), it is indicative of his much higher standard of living. In the towns, workers with regular employment would be much better off than the poor Fellah, but in cities such as Basrah and Baghdad where there has been a great influx of people from the country, there is considerable underemploy., ment in addition to unemployment. Although, at the current rate of wages for casual labor (about 200 to 250 fils a day16), a man theoretically earns an annual income of ID 75 16 One ID equals 1,000 fils * |2.8. or more, there must he many who work Irregularly and earn less than ID 50. Bread and rice are comparatively costly and, together with the rent of a room for a manfs family, might take nearly half his income. Wages are probably not much higher in many of the smaller and more primitive Industries, but artisans such as plumbers and electricians are scarce and can command much higher wages. In the more modern industries, such as the oil industry, the Port of Basrah and the new factories in Baghdad, a skilled machinist can earn a dinar a day or more. On the clerical side, in the lowest grade of the regular civil service, a married official with more than one child received ID 13 per month. The higher income of the city-dweller with regular employment enables him to purchase a reasonable diet, better clothing and better housing. He also has access to educa tional and health services. Nevertheless, congestion and sanitary conditions are often very bad in certain parts of the cities and disease is common. Above these various classes is the small rich group of landowners and merchants. No estimate of the proportion of the national income accruing to this group is possible, but some indication can be gleaned from the fact that a land-owner in the South normally gets at least half the net _ _ . . _ _ _ _ _ _ _ _ value of the output from the land, while, in industry, profits may exceed the total payroll. V. EDUCATION The acquisition of skill is severely limited by lack of education. Education is, as the monograph on that subject shows, broader than the mere ability to read and write, but the degree of literacy in the country is a fair guide to the extent to which the Iraqi can be considered educated. According to the census, which recorded the literacy of all those of five years of age or over, literacy in Baghdad among males over five was over kO per cent; in the smaller town of the province it was about 30 per cent and in the villages only 10 per cent. These figures are probably well above the average. Oities like Basrah and Kirkuk have a male literacy nearer 30 per cent, but in many rural “nahiyas81? it is 5 P©*1 cent or less, and in the remoter HnahiyasH of the Horth as low as 2 per cent. Literacy is much lower among women than among men. In the cities of Baghdad and Mosul, the proportion of liter ate females over five was about 20 per cent (about half that W Iraq is divided into fourteen Llwa or districts. Each Liwa is divided into Kadhas; each Kadha is divided into nahiyas or small districts. 31 of the males). Outside of the larger cities, however, female education hardly exists. The proportion of female literates in the rural areas and the smaller towns of Mosul, Kirkuk, Basra, and Baghdad provinces barely exceed 1 per cent. It is not known how literacy was defined in the cen sus, but even if these figures represent a real ability to read and understand rather than a smattering of education, it is clear that illiteracy is a great handicap to even the simplest form of written instruction. In industry this is apt to put a heavy burden of detailed work on the management of the factory. In agriculture it gives little possibility of supplementing the limited amount of oral instruction or visual demonstration which the present agricultural serviee can render. In general, It causes a shortage of skilled labor needed for the development of industry and agricul ture, and consequently it results in lower wages or unemployment. In Iraq today the facilities and quality of technical or vocational education are seriously deficient, and the number of graduate skilled workers is very few, therefore it would be logical to say that the government should provide in its educational program a part for the Improvement and extension of technical education. It would be better, after 32 providing for compulsory primary school education, to give students the technical training that is so urgently needed. Such technical education, which is a necessary condition for industrial development and the maintenance of handicrafts, should to some extent counter the evil of unemployment among workers, and provide them with better living. VI. CONCLUSIOU It is clear from what has been mentioned that there is need for a structural reform of the Iraqi economy whether it is agricultural, commercial or industrial. Review of the educational programs is also necessary in order that skilled workers required for the development of the industry may be made available. It was the purpose of this chapter to shox-ir that the reform of the Iraqi economy and its educational programs, in order to provide a better standard of living and better labor conditions for all agricultural, commercial, and industrial workers, is as important as that of labor legis lation or government policy concerning labor. CHAPTER .III MAJOR LABOR PROBLEMS AFFECTING WORKERS IN IRAQ, AND THE UNITED STATES In this chapter the writer will set forth the major problems which face workers everywhere. He will show the kind of efforts being made in advanced nations, like the United States, to solve these problems or at least to reduce their effects. In the course of doing this a brief refer ence will be set forth, whenever possible, as to the efforts being made in Iraq to solve such problems. There Is no one labor problem.^ However, most writers or labor authorities have agreed as to what are considered workers* problems. Shister2 classified workers* problems into three types as shown in Table I. However, in the following pages only the major prob lems which, it could be said, concern workers everywhere are discussed— namely: (1) Unemployment 1 From lectures given by Dr. Roy L. Garis in the course on Labor Relations in 1952. 2 Joseph Shister, editor, Readings in Labor Economics and Industrial Relations (U.S.A.: J. B. Lippincott Company, i95i rrpTzsr ------------— TABLE I CLASSIFICATION OF LABQB PROBLEMS Problems of Protection Problems of Adjusting end Preventing Indus trial Disputes Problems of Opportunity 1. Protection of workers against: a) Unemployment b) Overspeeding c) Long hours d) light work e) Accidents f) Industrial disease g) Unhealthy condi tions h) Arbitrary treat ment l) Low wages j) Unsuitable employment 2. Special problems of protecting women and children, 1. Methods of preventing disputes from arising. 2. Methods of settling grievances arising under existing trade agreements. 3. Methods of settling the terms of new agreements. 1. Opportunity to exercise, ~ in course of daily work, initiative, Judgment, skill, or such other qualities as are regarded as desirable. 2. Opportunity for workers to abandon certain restric tive rules, policies, and customs which impair their earning capacity, without suffering unemployment, rate cuts, or other disadvantages. 3. Opportunity to obtain a preparation for better Jobs and a fair chance at them. Opportunity to get pleas ure from work. 5. Opportunity to exercise a voice in the affairs of the industry. 6. Opportunity to obtain release from work— vaca tions, opportunity to travel, etc. & 35 (2) Physical impairment resulting from: (a) indus trial accidents, (b) occupational diseases, and (c) sick ness . (3) Old age. Another long~etandlng problem has been the question of the right to organize. When workers made their first efforts to organize, there was strong opposition from many employers and governments. Such an attitude is still prevalent among some employers, industries, and countries. This thesis would not be complete without giving some time to the right to organize. Due to the significance of the problem of the right to organize to this thesis, a separate chapter (the following) is provided for it. I. UNEMPLOYMENT Unemployment is usually defined as an involuntary idleness of the worker who is able to work, looking for work, and is willing to work.3 Unemployment affects not only the workers but also the employers and society as a whole. Effects of Unemployment Unemployment has both economic and social effects 3 Carroll R. Daugherty, Labor Problems, in American Industry (Boston: Houghton Mifflin Company, 19W)* p. 61. 36 which are undesirable. In the following analyses its effects are briefly numerated. Effects on the employer. — The effects are:** (1) idle plant, (2) increased labor turnover, and (3) restricted output. Effects on the employees. • — These are many:- 5 (1) Unemployed workers have no income and little or no cash reserves. Workers under such conditions usually get into debt; they are forced to depend on friends or relatives for support; go on unemployment insurance or on relief (if possible); or they may use strong arm methods of getting subsistence. (2) Workers may lose the skill they already have acquired. (3) They become sick from worry and discouragement; they may become insane. At least it will lower their morale. (k) They may commit suicide. (5) It may destroy families and break up homes as husbands desert or divorce their wives, and wives their husbands. ^ Garis lectures. See also: Daugherty, op. ait., p. 69. ^ Garis lectures. See also: Daugherty, op. clt. , pp. 69-70. 37 Effects of unemployment upon society. — The effects of unemployment upon society are both social and political. These Indirectly affect and hinder productivity of the nation. Unemployment results in the following (1) Delinquency increases. (2) Increase in the number of persons applying for public support. (3) The number of casual workers increases. (ty) There is more crime and violence. (5) There is more social and political unrest. Because effects of unemployment, such as those men tioned above, are undesirable and harmful, advanced nations either voluntarily or pressured by unions and the political situation have sought measures to avoid unemployment or to reduce its effects as far as possible. Our concern is to discuss those measures taken by advanced nations to protect workers against unemployment. The United States is here cited as an example. Employment Legislation in the United States In the United States two employment acts have been passed dealing with the problem of unemployment. ^ Uaris lectures. See also: Daugherty, op,, cit.. p. 71. 38 The Employment Act, of 1931.7 — This act provided for a Federal Employment Stabilizing Board. The Board was composed of four cabinet officers, one from each of the Departments of Treasury, Agriculture, Commerce, and Labor. The function of the Board was to advise the President of the United States as to employment conditions in the country, to collect pertinent data about employment, to make plans for public works to create more employment, and to make reports to the Congress so that if an emergency existed then the Congress could make appropriations for public works according to the need. The depression that followed the Act immediately made planning as set forth in the Act impossible. The Employment Act of 19*4-6.8 — This Act provides for a Council of Economic Advisors composed of three persons. The function of the Council is to assist the President; it makes reports to him twice a year; it can make recommenda tions and also make special studies. Yoder says that the Council makes a "sort of economic audit of the nation."9 But it has authority only to make studies and to report. 7 Dale Yoder, Manpower Economics and Labor Problems (New York; McGraw-Hill Book Company, Inc., 1950), p. 217. 8 Ibid., p. 218. 9 Ibid,.. p. 219. 39 At any rate, the Act requires that the President must make an annual Economic Report to Congress within sixty days of the beginning of each regular session of the Congress. A copy of the Presidents Report also goes to the Joint Committee on the Economic Report composed of seven Senators and seven Representatives. After the Joint Committee analyzes and evaluates the Report, it then makes its recom mendations not later than March 1st. Then the Congress decides upon policies and solutions to adjust the situation as deemed necessary. II. EMPLOYMENT CONDITIONS IN IRAQ, Employment conditions in Iraq will be studied in two main parts: the first describes the state of the employment market, its problems and the factors affecting their solu tion, and the second the measures that have been taken for dealing with the problems in question. Facts About Distribution of Manpower in Iraq To apply a rational employment policy, it is obviously necessary to know what manpower the economic system of the country can command. This knowledge is particularly necessary to governments which Intend to carry out a policy of economic development. Any scheme involves an estimate of the human element necessary for its success; 40 but the most precise calculations for every one of these schemes would be useless if at the outset it were not known where the necessary labor was to be found. A survey of national manpower distribution is therefore— like prospect ing for raw materials and taking stock of plant— a fundamental feature of any poliey of economic development. The data supplied by general censuses as to the composition of the working population afford the best basis for such a survey. Unfortunately, Iraq does not have such censuses taken regularly; in fact, the first general census of the population of Iraq took place in 1947; no results have yet been published. This is because Iraq is poorly supplied with statistical personnel and equipment to be able to work out the results quickly. As the data in question relate to a force which is essentially mobile, they quickly lose value. It is to be hoped that an effort will be made in Iraq for improving its statistical equipment, in order to be able to provide such censuses regularly and provide statistical Information about its occupational structure. It is also to be hoped that after censuses are taken the country will lose no time in working out and publishing the results while these still have some practical value. An analysis of the situation can for the time being kl only rest on incomplete Information derived from partial returns. The most that can be achieved, therefore, is a rough pieture of the population engaged in the different branches of the economic system and certain distinctive features of their employment. Agricultural employment. — The very extensive rural section of the economy, which is less organized administra tively than the urban section, has seldom been studied. In general, therefore, only very vague information about agricultural manpower is available. In Iraq the majority of the population live by agri culture or stock raising, or by other primary occupations normally classified In the same category. It is generally estimated that In Iraq about 75 per cent of the whole population are engaged in agricultural or similar occupa tions. 1° The proportion of the peasant population is therefore considerable in Iraq. If proper conditions existed there would be no surplus; on the contrary, wide stretches of arable land are still available, and agricul ture lacks manpower. This shortgage of manpower has been made more acute by the presence in Iraq of the allied armies Manpower Problems, A Report by the International _ Labor Organization on Manpower Problems In the Near and Middle East (Switzerland: Imprimerie Oentrale De Lausanne Press, 195D, p. 5- so-" who Imve made calls on the peasants for road maintenance, transport and other semi-industrial or industrial work; only a proportion of theJLand workers attracted by army pay compensate a little for the dearth of labor, but only to a limited extent. The Act concerning agricultural machinery administration (Mo. 32 of 19^9) set up, at the end of 19^9* an official body whose functions were to organize imports of mechanical equipment, to provide for maintenance and repair, and to supervise distribution of such imports.'-^ It is hoped that this will not only increase the productivity of the land under cultivation, but also make for the develop ment of arable land which has not yet been cultivated. The percentage of the population engaged in agricul tural work, as indicated above, has only been estimated approximately. This is due not only to obvious gaps in the statistical data available, but also to the difficulty of drawing a clear-cut line between the agricultural and the other economic spheres. All countries have, of course, certain forms of mixed activity, semi-agricultural and ® ^ koc. clt ♦ See also F. H. Gamble, Economic and Commercial Conditions in Iraq (London: His Majesty*s Stationary Office, 19^9), p. 2?. have returned to the land.^.7 Machinery is beginning to f\A A s W \. I ? 4 3 serai-industrial— >in particular as regards the conversion of agricultural products— but these activities generally only occupy a very limited place by comparison with those which are clearly primary or clearly secondary. In Iraq, industry consists above all of such mixed activities. This situation will be analyzed in greater detail later with reference to the distinctive features of the branch of industry concerned with the processing of agricultural products. It should be noted here that when produee is processed where it is grown, and by the same labor, the two phases are difficult to dietinguish. Moreover, because industrialization has only set in recently, labor for industry proper is still recruited mainly among the rural population. There is so far no really clear-cut division between those elements which have been definitely detached from the land and absorbed by the factories and mines and those which float between the two sectors, passing sometimes from the production of raw mate rials to its processing, but passing most often, according to the season, from some form of agricultural occupation to industrial work in no way connected with agriculture. For example, peasants provide the unskilled labor for the building industry, an Industry which needs strong arms accustomed to working in the scorching sun of semi-tropical kk areas. What is the extent of this floating manpower whose livelihood sometimes depends primarily on agriculture and to a lesser degree on industry, or vice versa.? There is no definite information about this, but the numbers involved cannot be negligible. In any case, the existence of this semi-agricultural and semi-industrial population certainly creates problems of organization which ought to be taken into account, not necessarily in order to do away with the alternation, which has certain advantages (it compensates for the dead seasons in agricultural work), but in order to make the movements more regular and to overcome their draw backs . That part of the population which lives entirely on the land, does so under very varied conditions of employ ment. The system of large estates is almost exclusively the rule in Iraq. Nevertheless, the number of hired laborers is relatively small, or the properties are mainly worked by tenant farmers or on the sharecropping system— with all degrees of sharing.^? This distinctive feature of agricul tural employ ment in Iraq should be borne in mind when studying the problems connected with the organization of - * • 3 Of I ante , Chapter II. r / * 4-5 manpower. The position of the sharecropper who, according to certain customary systems, has a right to only one-fifth or one-tenth of the profit for the work he does, is obviously in no way superior to that of a hired laborer. It is certainly more difficult to arrange for his protection by the public authorities. The law has less hold over the drawbacks of a situation arising from the customs of tenant farming sharecropping than it has over the clauses in an employment contract. In the case of a paid agricultural worker, as in industry, trade union action can, if necessary, be taken in order to raise the wages paid. It is far more difficult to deal collectively with customary abuses, which reduce the fair profit of the sharecropper by over-estimating the value of the facilities (such as water, seed, draught-animals and tools) supplied to him by the proprietor— the more so, as the rules underlying the agreements in force between parties, who are of very unequal strength, vary from district to district, from village to village, and even from estate to estate. From the point of view of employment organization, the tenant farmer or sharecropper is more firmly tied to the plot of ground which he has undertaken to farm, by his agreements with his landlord and, above all, by the debts 46 which he contracts toward the latter, than the wage earner Is to his work by the provisions of an employment contract which, In some cases, may by law only be a short-term one. Another distinctive feature of the situation In Iraq is the tribal organization of the rural population. The allegiance owed by workmen to the tribal chief complicates the procedure by which they are engaged. A traditional authority stands between the public authorities and the workmen whose lot the State is trying to improve, and often interferes with attempted improvements. The case is quoted of State land, which had been granted to tribes by a govern ment in order to improve their lot, being sold to merchants in the neighboring town by the chief of a tribe without any profit to its members.^ Moreover, the majority of these tribes are nomadic or semi-nomadic, and measures to organize national manpower are slow to take effect on such elements. Their migrations are made in accordance with time-honored customs and with the interests of the group itself, or rather of its chief, and are not influenced by the economic interests of the country or by the individual abilities of members of the tribes. Their nomadic character actually interferes with the mobility which is desirable in order to ^ Ibid., p. 9. obtain a useful distribution of labor, the dependence of the members of the tribe on their chief making it impossible to transfer them, in accordance with occupational requirements, outside the territory controlled by him. It would seem, therefore, that measures for organ izing manpower on up-to-date lines in Iraq where tribal organization exists will have to take account of the exist ing situation, at any rate for the time being. Employment in industry. — Fairly important changes seem to have taken place in the industrial section of Iraq during the last few decades, but they cannot be measured exactly. The development of the oil industry in Iraq is undoubtedly the outstanding event of the period. It has opened up many possibilities of employment to the population of Iraq. At the end of 19^7, the oil Industry employed 1 kt556 workers, of whom 13,900 were I r a q i The total number of industrial workers in the country is not accu rately known, the only indication being the registration of workers by labor authorities with a view to the issue of identity cards. Nearly fifty thousand such cards had been issued up to the end of 19^8, and eighty—two thousand by 0) •* March, 1950.^ Owing to duplication and omissions the later total may not represent the actual number of Iraqi indus trial workers. Nevertheless, it affords an indication of the relative size of different industries and illustrates the Importance in this country of the oil industry, which ranks first among the various industrial activities. It is not only on aecount of the number of workers employed that the oil industry plays a leading part in Iraq, but because of what it does to train manpower in the country. This industry, with its varied techniques, needs a considerable proportion of skilled workers for its own use. The fact that the foreign company (I.P.O.) is bound by the terms of the agreement to employ the greatest possible amount of local labor, has led them to organize vocational training on up«to—date lines. The instruction given does not merely benefit their own firms. Owing to the movement of labor from one industry to another, many other Industries employing workers in similar categories also benefit by it. Public utility services (railways, ports, roads, electricity and water supply, transport, and so forth) undoubtedly absorb a large part of the industrial manpower of the country, and have done so for a long time past. The ^ Lb'c. cit. / *4-9 presence of Allied troops in Iraq during the Second World War and the need to cope with the transport of troops and material nevertheless made for an Increase, which was often considerable, in the labor force employed in these servi ces.A proportion of them were, however, only employed on a temporary basis. Other mining industries in Iraq are of minor impor tance. The building industry, however, employs a consider able amount of labor. According to approximate estimates of the Ministry of Social Affairs, the building industry, at the end of 19*49, employed more than ?,300 workers.1® It is a well known fact that the obstacles which the Second World War placed in the way of international trade stimulated the development of manufacturing industries in Iraq as in other regions, which were economically under developed because of the need to provide for the require ments of internal consumption. Cement, glass, match and other Industries developed due to the war and the number of workers employed increased. The increase in manpower was ifria-* p. 12* ® 3-8 Directorate General of Labor and Social Security, Annual Report, 19*1-9 (Baghdad: The Government Press, 1951)» p. 8. 50 proportionately even greater in several ‘ branches of industry which the war, to all intents and purposes, appears to have created. To what extent can manufacturing industries retain their present labor force in the face of competition from products which are again being thrown on the international market by the great exporting countries? It is difficult to say, because there are conflicting examples. Instances may be quoted of factories which have been closed down in the match industry in Iraq; but there are also cases of new industries arising during the last few years like the cement works, and the brewery industry. Some already existing industries grew like the textile Industry. These new Indus tries prove that the Intention to industrialize the economy of the nation has not weakened in the face of a few rebuffs due to post-war competition. However, when considering the amount of employment provided by the process of industrialization which has begun, care must be taken not to anticipate any great increase in employment as a result of the opening of a few modern industrial undertakings. The first reason for this is that new enterprises are often, in fact, only old activities in new form. The 51 textile industry has become important in Iraq,-^ kut modern spinning and weaving mills have sometimes borrowed their manpower from textile handicrafts. They have, in any case, by their competition, caused a considerable number of small workshops producing goods for the same purpose to disappear. Moreover, although the new Industries provided relatively a considerable amount of employment when they were first installed, they now seem likely to reduce their staffs very appreciably. The reason is that workers with little experience are not able to undertake a great deal of work, and when an undertaking first starts up, skill is often replaced by numbers. This was particularly noticeable in the new under takings which grew up under wartime conditions. They were protected from competition, and so local consumption of their products was assured and they were encouraged to produce goods at any price.Their labor force was thus Inflated by comparison with standard strengths in countries which were industrialized earlier. This inflated employment is bound to be reduced, or the Industry in question will disappear, unless protection is forthcoming from high ^ Lo°« olt. ^ 20 Manpower Problems, op. clt., p. 13- ^ 52 customs barriers at the risk of a considerable rise in the cost of living, or unless wages are cut down. Therefore, in order to improve productivity plans are being made to reduce staffs substantially in relation to plant and output.The rate at which this change is taking place has been suffi ciently slow so as not to affect personnel actually employed. The measures taken will, however, necessarily have an effect, in the course of a few years, on the general volume of industrial labor in Iraq. Consequently, even if industries which grew up as a result of the war remain, and in order that they may so remain, measures to organize the employment market in Iraq will probably have to allow for the necessity of transfer ring manpower from existing Industrial undertakings to other forms of industry or to other employment. A great problem of manpower organization is thus raised. The industries which are most firmly established In o Iraq— either because they process local agricultural products and receive their raw material at advantageous prices, or because they supply the immediate requirements of the local population in goods which are difficult to trans port— include a large number of seasonal industries. ^ ViWd. - . ^ p ( T ) i~~o \x&A. £ In the first group, the sorting and pressing of wool gives employment for a few weeks only, first to women and then to men. The pressing and packing of dates provides employment for thirty thousand people (nine-tenths of whom are women) for four to five months in normal years; but in bad years, in 19^9 for example, only twenty-three thousand were employed for two months.22 The preliminary processes connected with the tobacco industry provide employment, the period from two to five months, depending upon the abundance of the crop. The manufacture of cigarettes is also subject to seasonal fluctuation, particularly if they are made by hand as in the north of Iraq. The group of industries supplying goods for local consumption may be said to include all those manufacturing cool drinks and also ice. The output of these industries and, in consequence, the labor employed by them, are subject to considerable fluctuation in an area like this where seasonal differences in temperature are very great. Seasonal employment, however, also occurs in the building materials industries which employ a considerable amount of labor— more than four thousand workers in the Baghdad district alone, but for barely six months in the year.2^ 54- These Industries obviously raise a serious problem of unemployment. The employment of women In Industry appears to be extremely restricted in Iraq. The statistics compiled in issued to industrial, workers only showed 1.7 per cent of women among adult workersSome seasonal industries, however, depend on the employment of women; more than twenty-five thousand women are employed each year for pack ing dates, and the sorting of wool is entirely in the hands of women.25 Official statistics give very little information about the employment of Juvenile and child labor, and it .would be impossible with their help alone to follow the development of the serious problem of child labor in Iraq. The statistics for 194-9* based on the number of workers’ identity cards issued, only show 3*204 young persons and 432 children of both sexes, out of a total of 4-91*315 workers.26 The number of child laborers should actually go beyond these figures, for child labor in certain small undertakings is 194-9 by the labor department on the basis of identity cards (fi) i 0 f, 55 not Included, and an inspection of the bazaars proves beyond a doubt that children are to be found chiefly in under takings of this type throughout Iraq. Legislation of Iraq permits the employment of children over nine years old for purposes of vocational training, in a proportion of up to 20 per cent of the personnel of the undertaking. The existence of the limita tion Indicates that there is a tendency to exceed this percentage. Employment in handicrafts. — . Handicrafts are still Important in Iraq. The appearance of the large towns, the miles of bazaars and the narrow streets of the old quarters, with the closely packed booths of goldsmiths, silversmiths, coppersmiths, tinsmiths, weavers, calico printers, Joiners, sculptors in ivory or wood, shoemakers, saddlers and other artistic or practical crafts in their separate lanes, all prove that handicrafts are very much alive in Iraq. All of the articles sold are made before the eyes of visitors, spread out In front of than and offered for sale. It is -quite obvious that a large proportion of the goods for local consumption comes from these booths. There are also undertakings where rice is husked, or cigarettes are rolled by hand, and where fabrics are woven. These workshops sometimes employ ten, twenty, or even one hundred workers 56 apiece.The average number of persons employed in each undertaking is not, therefore, a sufficient indication of the importance of handicrafts in the economy of Iraq. There are no statistics which would permit of estimating the number of the artisan class. The existence of handicrafts in Iraq makes it neces sary to deal with manpower problems by other methods than those which would be advisable in a highly industrialized country. The working of placement services must be adapted to suit this form of economic organization, and so must vocational training systems. The latter must try to produce skilled craftsmen as well as the skilled and specialized workers who are needed in modern industry. One of the distinctive features of handicrafts in Iraq is the large amount of child labor employed, sometimes on the pretext of apprenticeship, sometimes simply as cheap productive labor. This is not one of the easiest problems to solve, even though it is one of the most saddening. Other activities. — The few available figures regard ing employment in commercial and other non-productive activities, as well as the way of life in the large towns of the country, seem to straw that other activities are Ibid.. p. 18. 57 comparatively important. For instance, statistics showed that one hundred ten thousand2® workers and shop assistants were engaged in commerce out of a total non-agricultural working population of 491,315*29 In other words, workers employed in commerce, plus about fifteen thousand merchants, roughly account for 25 per cent of the non-agrIcultural workers. Commerce In Iraq, however, Is confined almost entirely to the towns, and the means of distributing goods are often lacking in the country districts. This is a problem of quite another kind. It is a significant one for the economy of the country, but can only be mentioned here in passing^ -^"Unemployment problems in Iraq. — Means of estimating the activity of the employment market in Iraq are, in general, lacking. Regular registration of the unemployed depends on their being able to expect unemployment benefits or on their having some hope of finding employment through the office where they register. But a system of unemployment insurance does not exist 28 The Economic Development of Iraq, op. clt♦, p. 129. 29 Manpower Problems, op. clt., p. 1?. ( D 58 in Iraq,3° and placements made by the existing offices are so few that the chances of finding employment as a result of registering are very limited. Besides, the occupational field covered by the activities of the employment service is generally a narrow one. The placement system does not cover the placement of agricultural workers; the activity of these services is strictly confined to placements in industry. Its statistics are, therefore, insufficient to give a clear idea of the situation. In Iraq, where the placement services are not yet sufficiently active to supply regular information, special circumstances have thrown some light on the situation. In December 19&9, an appeal broadcast by the Minister of Social Affairs in Iraq, inviting the unemployed to report to the registry offices, started a run on the placement office in Baghdad. Ho fewer than twelve thousand persons asked to be registered there.During the next few weeks, one thousand seven hundred unemployed were registered in the office at CD™ Kirkuk and three thousand six hundred at Mosul.The Social Security, A Report by the International Labor Organization on Social Security in the Hear and Middle East (Geneva: Impremerie Centrale, 195Q)» P- 19* ^ ^ Manpower Problems, op. clt., p. 23. y 32 loc„ clt. 59 number of registered persona may have been far beyond this if there were more registry offices available in other parts of Iraq. Although it is doubtful whether all those attracted by the broadcast were unemployed in the true sense of the term— that is to say that they were industrial workers who had lost their regular employment— and although practically no placements were effected,33 this run on the placement offices at least indicated a serious lack of employment opportunities in the towns. There are many other signs of unemployment in Iraq: for instance, workers in large numbers offer their services to the undertakings, and applicants for jobs throng round the gates of factories on the days when hands are taken on. Unemployment exists among the less skilled catego ries, especially among the peasants who are attracted from the country to the towns without having had the preparation which is essential if they are to adapt themselves easily.3** Unskilled labor is everywhere available to Industry in’ large numbers. It appears, however, that unemployment is also to be found among the educated classes; too many of them have been trained in branches of study which exercise a strong 33 Loo. Clt . 3^ Loc. cit. L : _________________________________________ ________________________________________________________________________________________________________________________________________________ 60 attraction on youth without responding directly to existing economic and social requirements. The colleges in Iraq undoubtedly train too high a proportion of lawyers and too where those who have passed out of vocational training schools have not been able to find employment, probably because the technical instruction given has not been adapted to the real need of the country. The causes of unemployment are many and vary from one Unemployment in towns is partly due to a noticeable decrease in the activity of certain branches of industrial production. When international trade started again after the war, and before measures to counteract its influence had been taken, the competition of imported products adversely affected various industries.36 rise in the cost of living, which was greater in Iraq than in the great export ing countries, increased still further the difficulty which local industries found in meeting foreign competition, even where the industry in question had already been in existence before the war.37 An even more important cause of few doctors and engineers.35 There are, however, cases district to another. Loc. clt. Ibid., p. 2k 37 Loc. clt. unemployment is the surplus of town workers, which arose as a result of the war and has not yet been re-absorbed.3® But those who worked for the armed forces— largely peasants who were tempted by the prospect of receiving regular* wages instead of the doubtful annual profits from farming— are only a fraction of the large number of peasants who have been attracted to the towns by the hope of better living conditions than those prevailing in the country.39 In the rural districts unemployment is even harder to distinguish from underemployment (which will be discussed later), and its causes are as complicated as its extent is ill-defined. In over-populated areas real unemployment may occur as a result of the disproportion between the number of workers and the amount of work to be carried out. But unemployment in rural districts is also to be found in countries with a sparse population, where the arable land is plentiful in relation to the number of those who live on it. This is particularly the case in Iraq; this is due to an irrational distribution of land.**'® The inadequacy of the 62 peasants' means of cultivation is another reason for their precarious situation.^ Calamities, particularly the locust invasion, must also be included among the causes of unemployment in country districts, and so must the poor state of land which, though arable, is badly irrigated or liable to flooding because work essential to flood control has not been carried out. Underemployment in Iraq. — It is difficult to distinguish unemployment from underemployment, especially in Iraq where the employment market is not organized to any great extent. However, a large proportion of the population both in the towns and in the country districts seems to do very little work. In the towns, apart from the considerable number of manual workers— porters, commissionaires and unskilled workers on the lookout for a Job of any kind— there are also many tradesmen and shop assistants who sit in their booths and wait for customers, and also hawkers who look for their customers in the street, waiting for long periods at the entrances to hotels, stations, and other public places. The large industrial undertakings themselves, particularly those /Loc. clt. J&2 Loc. clt. (<~) "Vo (j\) 63 owned by the government, often carry a considerable surplus of labor.^ Underemployment in the towns is, therefore, a concealed form of unemployment which lowers per capita productivity and is thus a heavy burden on the whole economic system. In country districts underemployment is found because there is not enough labor to cultivate all the arable land.^ The reason in this case is that the rotation of work in the inhabited and cultivated areas is not suffi ciently well organized. This state of affairs can largely be attributed to the lack of effective services for distributing manpower. If such services existed they could provide rural manpower with additional work of, perhaps, quite a different kind. Stability and mobility of workers in Iraq. — In Iraq, the industrial worker, who is of peasant origin, still has strong ties with rural life which cause him to move constantly to and fro between industrial and agricultural work. Moreover, workers without any industrial tradition, have difficulty in adjusting themselves to the strict discipline of the factories. Because of these conditions, ^ Ibid., p. 26. ^ Loc. cit. 6b •labor has a marked tendency towards Instability which may either take the form of constant changes of employment or that of absenteeism. This instability is accentuated by other causes. Owing to the absence of collective agreements, conditions of employment have only been standardized to a very limited extent.^ There are considerable differences in the level of wages paid in different branches of industry and also between those paid in different undertakings within the same branch. ^ The very low wages paid by certain firms cause workers to try to improve their position by changing their employment. Shortage of accommodation is acute throughout the country, especially in the towns where industry and other sources of employment mostly exist. ^ Workers who are forced to leave their families in the country or to camp with them in the vicinity of the factories under extremely uncomfortable conditions, lose patience and try their luck » elsewhere. The standard of training of the workers as a whole is low and leads to frequent dismissals.^ ^ Ibid., p. 27. ^ hOC » Clt. ^ hoc. Clt. hoc, clt . 6 5 The tendency to Instability has, however, been reduced to some extent. This has been brought about by various means, and private initiative of employers has helped considerably. Some firms where absenteeism was in evidence have been able to stabilize their manpower, to a large extent, by promoting the workers' welfare— In parti cular by providing accommodation and medical care for their personnel*^ But it is above all to social legislation, whose effect is more general, that an improvement in the stability of labor in Iraq must be attributed. The payment of wages for the weekly rest day, provided the worker has been present at his work during the six preceding days,50 has had the effect of doing away almost entirely with absenteeism. Changes of employment have been greatly reduced in number in Iraq by the introduction of holidays with pay, because the duration of such holidays varies with the length of service — one day for each month's service. The effect of the legal provisions concerning compensation for dismissal is still more important. When the right to compensation for dismis sal is only acquired after four consecutive years of ^9 Loc. cit. 50 Article 3 of Labor Law No. 72 of 1936 as Amended by Law No. 36 for 19^2, pp. 7-8. 66 employment, as It is in Iraq, the legal provision obviously has a decisive effect on the stability of labor. One may wonder whether the effect of compensation for dismissal has not been, in some cases, to stabilize manpower to a point where it loses the mobility essential to a well- balanced economic system, necessary transfers of labor from one branch of activity to another and from one undertaking to another being impeded. Stability must not be confused with lack of mobility. Instability is a drawback, but lack of mobility may be fatal to the economy of a country, and, in consequence, to the general well-being of the population. Moreover, it should be noted that the safeguard provided by compensation for dismissal does not apply to all workers. It is restricted to Industrial workers. Agricul tural workers have not yet been allowed to benefit by it. There is a danger, therefore, that the system of compensa tion for dismissal may constitute a further source of attraction from the country toward the town centers, whereas what would seem necessary would be to return to agricultural production a proportion of the manpower lost between 19* 1 - 0 and 19*+5 and which the towns have left unemployed. An even balance between town and country appears, in fact, to be the main problem of the employment market in Iraq, and it is most desirable that measures should be taken to insure this balance, by giving rural and town workers comparable living conditions. The movement of labor from one section to the other could then take place without difficulty in accordance with economic requirements, and would not depend mainly upon real or apparent individual advantages. Factors affecting the solution of the unemployment problem. — To this writer the factors affecting the solu tion of the problem are both economic and social. All the general faetors of the economic situation affect the employment market. Availability of capital increases the number of employment opportunities, whereas difficulty in obtaining capital has the Immediate effect of constricting the employment market. If it is easy to export certain types of goods, the number of workers engaged in producing them Increases automatically, but some factories have had to close their gates simply because external markets failed.51 The purchasing power of a country also affects the number of employment opportunities, which are fewer when the purchasing power of the population decreases under the influence, say, of an increase in the cost of living. ^ Manpower Problems, op. clt., p. 33* 68 Movements of manpower are affected—-sometimes in a way which is contrary to the common interest— "by the difference in the levels of industrial and agricultural wages. This has happened in Iraq, whose rural population has poured into the towns. Variations in the level of wages according to the type of work done or the standard of training will encourage workers to make the necessary effort to acquire sound vocational training. If the spread of wages is reduced, such efforts will be discouraged. The effect which payment by results might have on the productivity of labor has been indicated above. The proce dure for promotion— promotion by selection as opposed to promotion by seniority— has also a considerable psycho logical effect in encouraging or discouraging vocational training. As far as the rural economy is concerned, the stability of manpower and its productivity are very much influenced by the system of land tenure and by the methods of farming large estates. The exodus of the peasants from the land to work for the army and then to the towns has taken place because they are not greatly attached to land which they do not own and to farming in which they can barely earn a livelihood. * Regarding social factors, the sparsity of population 69 over wide areas makes it difficult to organize employment on sound lines, since under these conditions it is hard to bring placement services, vocational training and general educational establishments within everyone’s reach. The extreme poverty of the population makes for very adverse conditions as- regards both the education of the working class and the stability of manpower, since workers tend to change their location and their employment in an effort to improve their miserable lot. It also leads to children working at an early age, and this is fatal both to their education and to any serious vocational training. Work by young people is also a cause of disorganization in the employment market, since cheap juvenile labor is preferred to adult labor. The employment of children at an early age is a running sore from which Iraq still suffers acutely. One of the causes of illiteracy is employment on practical work at too early an age, but another cause is that there are not enough educational establishments in the country. This adversely affects vocational training, as the general knowledge on which such training should be based is lacking. Lack of vocational training leads, in turn, to 52 Ibid., p. 3k. 70 unemployment. The cultural prejudices of the well-to-do classes are no less fatal to the development of vocational training in skilled manual trades. Whereas the destitute are too ignorant to absorb such training, the wealthier people refuse to soil their hands with it. Employment organization is also hindered by certain social traditions. The community outlook affects the distribution of manpower and stands in the way of rational vocational guidance on the basis of individual capabilities and economic requirements, for trades are passed down from one generation to the next on a family basis.53 Trades which have partly ceased to be necessary thus have a tendency to survive and give rise to underemployment. The social traditions which still exist with regard to women, restrict the use of potential labor resources and increase the burden on social services by limiting the size of the working population. The legal working day exceeds, in most cases, eight hours— which is set in the labor code— and tends in handi crafts to last throughout the hours of daylight.5^ Even if 53 Loo, clt. *** Ibid., p. 35• 71 work is not actually done during the whole of the working day, this method of organizing work leaves too little free time for attendance at trade Improvement courses. The. shortage of housing not only makes for instabil ity of labor as was shown earlier here, but is also an obstacle to the rational organization of employment. The absence of real trade union organization, or its limitation to small groups,55 hinders cooperation by workers* representatives with the authorities in attempts to organize employment and vocational training. Employment measures to protect workers in Iraq. — In Iraq no laws exist in relation to employment. In Iraq today, . . . where large scale development schemes are being started in a community which is partly nomadic, where many of the settled farmers are idle for part of the year, and where urban underemployment occurs because of overpopulation in the towns,5o there is an urgent need for a law which provides for a standing national committee such as the "Council of Economic Advisers" to assist in providing a solution. This Council could make studies and suggest ways and means of absorbing the unemployed by existing or newly created works. ££.* post» Chapter V. 56 j. Hull, "The Task of the Department of Labor," The Iraq Times (Baghdad: The Times Press, 1952), p. 87* j 72 Perhaps at the present time a provision for a "National Employment Council,w composed of senior civil servants from the development departments, leading employ ers, and representatives of workers is more urgent. This Council could constantly review the development plans in terms of the amount of work which they would create as well as the availability of the trained men needed to execute them. Unemployment Compensation in the United States This is another measure adopted in the United States to protect workers against unemployment. This is an outgrowth of the Social Security Act which deals with this question.57 According to this Act, employers in general are subject to a tax of 3 per cent of their payroll up to three thousand dollars for each worker. This is paid to the Federal Government. Several states also collect a tax from the employees.58 purpose of this tax is to provide compensation (benefits) for eligible workers when they are unemployed. Coverage varies from state tro state. Certain groups of workers are not covered by the unemployment 57 Florence Petterson, Survey of Labor Economics (New York: Harper and Brothers, 19W?), p. 707. See also: Yoder, op. clt., p. 2?0. Petterson, op. clt., p. 727. 73 compensation act, for coverage is provided only for employ ees who are included in the taxation program of the state.59 Consequently, the compensation law does not cover employees of small firms; the self-employed; agricultural labor; domestic service; service of an individual for his son, daughter or spouse; or of a minor child for his parent; employment in the federal, state, or local governments, or in foreign governments; or employment for non—profit organizations; certain types of casual labor; and a few other services. According to the majority of state laws, in order to be eligible it is necessary for an unemployed person to meet the following requirements:^1 (1) Must register with public employment office. (2) Must have earned a specified wage credit or been employed in a covered employment for a specified period. (3) Must be willing to accept a suitable Job. (&) Must not leave his job without good cause. (5) Must cover the waiting period— a two weeks ^ Gordon P. Bloom, and Herbert R. Northrup, Econom ics of Labor and Industrial Relations (Philadelphia: The Blaklston Company, 1950), p. 5^9- Loc. clt. Congress passed a law in August, 195^ extending the coverage. ^ Yoder, op, clt., p. 271. ?k waiting period being common. If, after waiting for whatever the waiting period is, the worker Is still unemployed he will be compensated by ten to forty dollars a week.^2 The benefits or the compensation depends upon how long the employee has been employed, and how much he was earning before becoming unemployed.^3 The duration and amount of benefits varies in different states.6^ In eighteen states unemployment compensation can be obtained for twenty-one to twenty-six weeks a year. In twenty-two states it can be obtained for twenty weeks a year. In eleven states benefits can be obtained for less than twenty weeks. In thirty-five states payments are related to prior earnings.65 At any rate, the law considers a person as disquali fied for one or more of the following reasons: (1) If he voluntarily quits the Job; (2) if he has been discharged for misconduct; (3) if he makes a false statement in his Garls lectures. go Gar is lectures. See also: Bloom and Northrup, op. cit., p. 571. Also Yoder, oj>. clt., p. 271. 6U Compensation in the state of California, for example, is from $10 to $30 a week. Benefits are based on the highest quarterly earnings. The maximum amount is” twenty-six times a person’s weekly benefits or half the total base earnings or whichever is less. ^5 G-aris lectures. See also: Yoder, op. cit., p. 271._____________________________________ 75 application.; (4) if he refused a suitable Job offered to him without good cause; (5) if he fails to apply for a job offered by the Department; (6) if he left work because of a labor dispute; and (7) if he has received disability insurance. The penalty for disqualification varies. It may be two weeks, or it may be as much as eight weeks if a person repeats violations of the law; an additional week may be added if a person fails to report. Sometimes a penalty may cover all the lifetime of a person. The Social Security Act also provides for a merit rating system for employers who maintain stable employment. The Act states that such an employer should be given credit.66 (For example, the tax upon such employers may be reduced to less than 3 per cent).67 Indeed, it can be said that the United States is dealing fairly well with the unemployment problem. Its measures have been of considerable value during the Mreces sion t t of 195^+. Unemployment compensation in Iraq. — In Iraq there is no social security act as such at the present time nor is there any other law or measure which compensates workers Bloom and Horthrup, op. cit., pp. 572~573* 67 Garis lectures. 76 satisfactorily when they become unemployed. However, under the Iraqi Labor Law, long service dismissal indemnities are payable at the rate of two weeks' wages for every year's service after the fourth. This is not a satisfactory coverage against loss of earning power due to unemployment or old age. At any rate, according to an article written by Mr. W. J, Hull, the expert in labor and social security at the Ministry of Social Affairs in Iraq slnee 1952, an expert by the name of N. Corbett Trltton has arrived in Iraq, through arrangements with the International Labor Organiza tion, to make a special study of a plan for social security. Administration of Employment in the United States Under the Social Security Act, the administration of employment and unemployment insurance rests with the states.6-9 fhe state governments deal directly with the con tributors to the state program and with the beneficiaries. They keep all the records necessary to determine benefits, engage and pay the administrative personnel, determine the policies and procedures that govern them in their duties, 68 Hull, op. clt., p. 87- Petterson, op. clt., p. 727- See also: Bloom and Northrup, op. clt., p. 573- 77 and exercise complete administrative responsibility over their work.70 The state government also operates through the State Department of Employment'a wide employment offices to seek jobs for unemployed, and to maintain special placement services for handicapped, veterans, youths, farm labor, and provides insurance.71 In some cases persons have abused the system but one can say in conclusion that the administration of unemploy ment compensation and employment offices in the United States have been performed with reasonable satisfaction. Adroinistration of employment in Iraq ♦ — In Iraq there is a Directorate General of Labor and Social Security attached to the Ministry of Social Affairs of this country. It has offices in the major cities.72 1 1 Its total present strength is no more than fifty-one permanent officials. The burden on them is obviously very heavy.M73 This is, according to the Report of the Economic Mission of the Bank of Development and Reconstruction, what caused It to perform 70 Petterson, op. cit., p. 728. 71 Garis lectures. 72 Baghdad, Mosul, Basrah and Kirkuk. 73 Hull, op. clt., p. 87. 78 ineffectively, leaving many violations by employers uncor rected. The Mission found that out of 1,228 industrial undertakings inspected in 19^9-50 only 136 operated in compliance with the Law. Of the rest, 97^ were given probation and 118 were taken to the court and sued;?**' The regulation governing their competence (No. 38 of 1952, cancelling earlier Regulation of 19^6) shows that in addition to all the duties proper to a Department of Labor, they are also responsible for social securlty75 and for workers* housing, and it seems to be contemplated that they should also have some responsibility for rural housing. Employment agencies are run and supervised by the Directorate General of Labor. Small as they are, they are ^ The Economic Development of Iraq. Report of a Mission organized by the International Bank for Reconstruc tion and Development (London: The Johns Hopkins Press, 1952), p. ii4. jhe Directorate General of Labor had the term “Social Security1 1 added to its title yet there is no social security act in Iraq at the present time. However, the Labor Law provides that the government can pass a law which can impose compulsory insurance on workers. Article 30 of the Law reads as follows: “The government may issue regula tions for the creation of a special savings fund for the workers and the Imposition of obligatory Insurance on them, or may take any such measures as it may consider advisable to insure the workers against unemployment, sickness, or Injury. It may authorize associations (unions) to effect these measures concerning their members. Hull, op. cit., p. 87* 79 equipped to act as employment agencies in the neighborhood of the big towns where they are situated. It Is their function to bring together employers needing workers and workers seeking employment.77 Employment agencies are an international concept which Iraq has accepted by notifying the relevant convention of the International Labor Organization.78 However, they are ineffective, and utheir place in the Iraqi community is obviously rudimentary as yet.“79 it is hoped that if they are given the opportunity to acquire knowledge and practice they can prove of value. Measures Suggested to Cope with Employment Problems Measures aimed directly at organizing employment and vocational training cannot succeed unless an attempt is made to solve the general problems that have been described. However well-equipped an employment service may be, it cannot create opportunities for work; it can only make intelligent use of those which already exist. In a policy of full or maximum employment, measures which should be regarded as basic are, for Instance, those taken to increase 77 Loc. clt. 78 Ibid., p. 88. 79 Loc. cit. . 80 the credits for plans of economic development, to raise loans and to encourage the Investment of private, national or foreign capital. But all the measures taken must be coordinated, 'According to the International Labor Organizations Report,it would, for instance, be dangerous at a time of latent unemployment to try to obtain a higher per capita output by reducing the staff of undertakings, unless further employment opportunities were first created. The employment market should, therefore, be considered as a whole when effecting necessary readjustments. Economic development plans which have been drawn up or outlined are of cardinal importance in the matter of opening up new opportunities for work. In Iraq, where unemployment or underemployment is at present prevalent, the plans in question will involve a redistribution of manpower on a considerable scale. Steps must be taken for drawing on elements in the population which are still idle. Transfers of manpower will thus be necessary, and so will measures for vocational training or retraining. It will, therefore, be essential to have efficient placement services and adequate facilities for training labor, if the plans for economic Oa Manpower Problems, op. elt., p. 36. 81 development are to succeed. II. PHYSICAL IMPAIRMENT With the Industrial Revolution and Increased use of machinery and mechanical tools and instruments, physical impairments resulting from Industrial accidents and indus trial diseases have increased and, therefore, the industrialized nations have acted to meet the problems in an attempt to solve them. Advanced industrialized nations also have felt responsible for attacking the problem of non- industrial sickness. In the following statements, each of the above is discussed, citing later the measures taken by advanced Industrial nations— the United States being cited as an example— for the protection of workers in each case. Reference to Iraq follows in each case. Industrial Accidents In the United States In the following analysis some interesting statistics are stated about industrial accidents in the United States relative to the number of casualties, both death and injuries, types of accidents, costs and causes. pi Humber and types of accidents. — Garis and Yoder 81 (Jaris lectures. See also: Yoder, op. clt., p. 82 set forth the following data: (1) Industrial accidents cause from 16,000 to 17,000 deaths per year. (2) Two million disabling injuries are sustained yearly by workers. (3) One hundred thousand of these accidents cause permanent impairment. (4) On January 31* 1952, the National Safety Council stated that there were 93*000 accidental deaths, and that nine million persons were injured more or less seriously during 1951* These accidents cost a total of eight billion dollars. Accidental deaths in 1951 represent^ an increase of four thousand over the 1950 figures. (5) One worker in each 1,800 is killed annually.®2 (6) The types of accidents were distributed as follows: Accidents to the eyes, 3 per cent; to the head, 9 per cent; to the arms, 26 per cent; to a hand, 6 per cent; to the fingers, 14 per cent; to a leg, 13 per cent; to a foot, 7 per cent; to a toe, 2 per cent. General accidents amounted to the remaining 9 pen cent. (7) There were sixteen thousand industrial deaths 82 purther statistics given by Dr. Garis show that one worker is killed each half hour, on the average every twenty-five seconds. 83 in 1951* The costs of accidents. — The direct costs of industrial accidents are workman's compensation payments, hospital costs, doctor's bills, legal expenses, and so forth. However, there are also the indirect costs which are important. According to Daugherty,^3 the indirect costs are as follows: (1) Workers' time lost. (2) Time lost by workers other than the person or persons injured, who knock off work to give assistance. (3) Time lost by foremen, and so forth. (k) Expenses involved in investigating the cause of the accident. (5) Training and breaking in of a replacement employee. (6) Damage to materials and machines as the result of the accident. (7) Losses due to stoppage in the flow of production. (8) Amount of wages paid to the worker on his return to the job. (9) Lowered morale and decreased efficiency resulting from the accident. J Daugherty, op. cit., p. 103• 81 * The indirect costs are believed to be at least four tiraeB the amount of the direct costs of industrial accidents.8^ Garls stated that in certain industries costs may be as much as ten times the direct costs.85 The causes of industrial accidents. — Studies made in the United States found the following c a u s e s :86 (1) Ninety per cent of Industrial accidents are due to human causes, and the remaining 10 per cent to mechanical causes. (2) Ninety eight per cent of industrial accidents are preventable, and only 2 per cent are unavoidable, being classified as MActs of God." (3) Accidents due to human causes are divided as follows: a. Faulty instructions, 30 per cent. b. Lack of concentration, 22 per cent. c. Unsafe practices, Ik per cent. d. Poor discipline, 12 per cent. e. Lack of ability on the part of the employee, 8 per cent. ^ Loo, cit. 85 Garis lectures. 86 Daugherty, op. cit., pp. 10&-108. 85 f. Physical unfitness on the part of the employ ee, 3 per cent. g. Mental unfitness on the part of the employee, 1 per cent. Therefore, private enterprise is not to be blamed; progressive employers in the United States seek to reduce the costs of industrial accidents by preventing their recurrence. Labor union officials cooperate fully with employers to reduce all accidents to workers. Legal Provisions Relating to Accidents and Compensation in the United States At the present time the workers in the United States are protected by Workmen1 ^ Compensation Laws. They are designed to assure prompt payment of benefits to injured employees or to the dependents of those killed in Industry, usually without regard to who is at fault in the accident. Before workmen's compensation laws were passed, an injured employee had little recourse. To be sure, under the common law, the employer was required to provide a reason ably safe place for his employees to work.88 The only or? r Bloom and Horthrup, op. clt., p. 579* See also: Yoder, op. clt., p. 293, and Petterson, op. clt♦, p. 737- See California law cited below for exception. 88 Bloom and Northrup, op. cit., p. 579- See also: Yoder, op. cit., p. 291- 86 recourse an injured worker had was court appeal, and if he sued his employer for damages he had to prove that the employer was negligent.®9 fhe employer, on the other hand, had as his defense contributory negligence, the assumption of risk, and the fellow-servant rule.90 Contributory negligence means that the injured was also at fault to some degree. The assumption of risk means that employees enter ing any vocation automatically assume the normal hazards of that occupation. The fellow-servant rule means that the employer is not liable if he can prove that the real fault was lodged with a fellow worker. With the development of industrialization of Industry the several states enacted employees liability laws. Under these laws the employees were liable for accidents but to collect it was usually necessary for an Injured worker to sue the employer. > Pew cases were ever won by the workmen, and the great majority of industrial injuries and deaths were never brought to the court.9^ Employees rarely had the funds or Bloom and Northrup, loc. clt. See also: Petterson, op. cit., p. 737. 90 Yoder, loc. clt. See also: Bloom and Northrop, loc. clt. 9^- Petterson, loo, cit. See also: G-aris lectures. 87 sufficient legal assistance to pursue a case of this charac ter in the court. This produced unbalance. Also, in many cases under employers’ liability, injured employees never sued the employer for fear they would lose their jobs. Unions at that time were not strong enough to protect work ers in such cases. In many instances, employers dragged the cases out over long periods of time in order to win them. To avoid these difficulties, workmen1s compensation laws were passed. Under the compensation lews, the question of fault or blame for the accident is not raised as a rule, since the cost of work injuries is considered a part of the expense of production, and most employers are Insured for the amount paid.92 injured workers are thus spared the difficulties and delays of court procedure. Workmen1s compensation acts in the United States. — Workmen*s compensation acts in the United States vary in different states. However, they tend to be more or less uniform in their provisions.93 The most common provisions of workmen's compensation acts may be outlined as follows: Coverage. — No act in the United States covers all types of employees.9^ Agricultural and domestic workers 92 Petterson, loc. clt. 93 Garis lectures. ^ Yoder, op. cit., p. 293* 88 are usually excluded from coverage. Certain other groups are not included in various state laws. Many states exempt employers of less than a stipulated number of employees. Employees in interstate commerce are not covered by state acts. Mot all states include all public employees.95 Casual workers and those whose employment is not in the usual course of the employer's business are generally excluded, as are employees in non-hazardous occupations in several Jurisdictions. Some states fail to provide coverage for certain types of accidents.96 At any rate, employees excluded from compensation coverage are protected by employers liability laws. Statis tics show that by 19^8 some forty-five million employees were covered by workmen’s compensation provisions in the United States.97 Rates of compensation. — Most of the acts provide compensation based upon a percentage of the worker's wage up to a specified maximum, but lump-sum payments may be specified for particular in juries..9-8 & few states vary 9< Loo. oit. 9^ Bloom and Northrup, op. clt., p. 580. 97 Yoder, loc. clt. ibid., p. 294. See also: Bloom and Northrup, op. cit., p. 581. 89 rates of compensation according to the number of dependents. Most states make special provisions for death, permanent total disability, permanent partial disability, and temporary total disability.99 Generally, the rate of weekly benefits is limited by stipulation of certain minimum and maximum weekly payments. According to Yoder, it is estimated that the result of these provisions is to place some 50 per cent of actual costs on the employee in the most liberal states, and to force from 65 per cent to 80 per cent of these costs on employees in those jurisdictions where provisions are less favorable. Rates of compensation are further limited by provi sions of maximum benefit periods and amounts of total payment. In addition, maximum payments are established for death and permanent disability. Generally, death benefits are calculated upon the basis of earning power as Indicated by wages, with a maximum provision to the effect that they shall not exceed specified amounts of from three thousand to fifteen thousand dollars.Death benefits and payments to widows and to children are common. 99 Ibid., p. 582. Yoder, 035. olt., p. 29*K Loc. olt. 90 Medical benefits. * In all the compensation acts, medical aid is required to be furnished to the injured employees.102 There is generally, however, a limitation either upon the period of such benefits or upon the amount so expended for which the employer is liable. Waiting period. — Before any payments are made, nearly all states require a waiting period of one week after the injury.103 Medical benefits begin immediately, however, and compensation may be retroactive to the date of injury. For the sake of clarification, provisions of California’s compensation law referring to accidents are here illustrated: Conditions of liability.10^ — In California, condi tions of liability are: (1) at the time of injury, both employer and employee must be subject to the provisions of the act; (2) at the time of injury employee must be perform ing a service growing out of or incidental to his employment and acting within the course of the employment; (3) injury must be proximately caused by employment; (^) injury must not be caused by intoxication of employee; and (5) injury 102 Loo- olt. l*oc. cit. See also: Petterson, op. clt., p. 7^7. 10^ G-aris lectures. 91 must not be caused by “willful self-*inflictlon. ” Ebiplo.ver obligation s. 10 5 — in California, employers are required: (1) to secure payment of compensation either by being Insured by one or more companies (State, Stock, or Mutual) or by securing a certificate of consent to self- insure from the Department of Industrial Relations. Failure to provide compensation is a misdemeanor. (2) To post a notice stating the name of current insurer. (3) To file a report with the commission of any injury lasting longer than one day, within thirty days. (k) To report by telephone or telegraph within twenty~four hours in case of death. (5) To provide safety devices and safeguards. (6) To use practices, means and methods to insure safety of employees. If the employer fails to provide compensation, and employee has the right to file through the commission and bring action at law to recover damages, or he may attach an employer^ property. Any employee aggrieved by a decision or award may petition for a rehearing. Benefits. — In California, benefits differ according to the severity of the disability. (l) If the disability is temporary employee^ benefit 105 (laris lectures,. 1G6 Garis lectures. 9 2 is decided upon as follows: a. Sixty-five per cent of 95 per cent of average weekly earnings. (Minimum #15.77* maximum $*8.58). b. Benefits cannot exceed #30.00 per week. c. If injury is caused by serious and willful misconduct benefits are reduced by one-half, except in case of death, permanent disability, employee under sixteen years of age, and negligence by employer. d. If injury is caused by serious misconduct of employer, benefits are increased by one-half, not to exceed #3*750.00 increase. e. Medical, surgical and hospital treatment shall be provided by employer. f. In case of willful failure of employer to provide benefits, benefits are increased by 10 per cent. g. Total amount of benefits not to exceed four times average annual earnings or #7,200 or 2*10 weeks, whichever is the least. h. Waiting period of seven days. (2) If disability is partial, all of above applies except 6k per cent of 95 per cent of loss of wages. 93 (3) If disability is permanent, the benefit is decided as follows: a. Sixty-five per cent of average weekly earnings for four weeks for each 1 per cent of disa bility. b. If 70 per cent disability or over, 1 per cent of 95 per1 cent of weekly earnings for each 1 per cent of disability in excess of 60 per cent for remainder of life. (**-) If the result of accident is death, the benefits are as follows: a. Reasonable expenses of employee*s burial not to exceed #*K>0. b. Four times average annual earnings not to exceed #6,000 for one dependent and #7,500 for wife and one dependent or more. c. Unpaid disability benefits. d. Minimum death benefits #3,000. It seems from the previous illustration that employ ees in California as well as in most of the other States In the United States are reasonably well compensated for industrial accidents. At least, much progress has been made. 9k Industrial Accidents and Workers1 Compensation in Iraq In Iran there have been no studies made about indus trial accidents regarding their type, causes or costs. Also, there have been no accurate statistics about the number of Industrial accidents. However, the Annual Report of 19^9 published by the Directorate of Labor indicates that a hundred and forty-seven claims were made through the Department of Labor for compensation due to industrial accidents; ninety-seven for partial disability and fifty for death. 2-^7 This number of accidents represent only those workers covered by the Labor Law. It does not include workers working in any agricultural operation, including irrigation, bunds (dikes), and any such other works connected there with.^® Workers * compensation in Iraq. — Prior to the Labor jLaw No. 72 of 1936 there was no legal provision which held the employer responsible for workers1 compensation due to an industrial accident. Since the Law of 1936 was enacted the employer is held responsible to Mpay compensation for any worker in the industrial undertaking for any Injury, disease - ..■■■■.■.i .i .— - i — i . — Annual Report of 19^9 published by the Directo rate of Labor (Baghdad: Government Press, 1951)* p» 2. 108 Qfm ante, Chapter VI, for further detail. 95 or poisoning suffered by him as a result of his work."109 The amount of compensation varies with different situations as shown in the following analysis.110 (1) If the disability is temporary the worker, after using his leave, receives half of his daily wages for the period in which he is unable to carry out his work, provided that this period does not exceed one year; and if it exceeds one year the injury shall be regarded permanent, the degree of which shall be taken as a basis for assessment for compensation. (2) If the disability is partial, the worker is entitled to a compensation not exceeding his dally wages for two years, to be assessed on the basis of the ratio of that incapacity to the compensation assigned for each organ of the body according to a schedule of organic incapacity issued by the Ministry. (3) If disability is permanent, the worker receives a sum equal to his daily wages for two years. (ty) If death occurs from the accident to the worker while performing his duty, the dependents of the deceased shall be paid for two years. Article 11 of Labor Law No. (72) for 1936 and its amendment by Law No. (36) for 19^2, p. 10. 110 Loc. clt. 96 According to the Law, "In order to be entitled to compensation the worker must prior to the accident, in respect of which compensation is claimed, be registered in such manner as may be prescribed by regulations. "HI More over, according to the Law, only those persons working for wages In "industrial undertakings" are eligible for compen sation. This means that all workers engaged in any agricul tural operation, including irrigations, bunds and any such other works connected therewith are not covered by the compensation law.112 The same is true about casual workers who engage in petty work for not more than one week, and workers engaged in any work of a communal nature such as silt clearance of canals, repair of bunds during floods, and work in respect to combatting locusts, provided that such works shall be imposed by law.H3 However, the Law disqualifies the worker from receiv ing compensation benefits in the following circumstances: (1) If he has not registered as required by the Law. (2) If he has been, at the time of an accident, under 111 Ibid., p. 12. Of. post. Chapter VI, for further detail. 112 post. Chapter VI, for further illustration. 113 Ibid., p. 2. 97 the influence of drink or drugs. (3) If he willfully disobeys an order expressly given, or a rule expressly framed, for the purpose of securing the safety of the worker. (k) If he willfully disregards any safety guard or other device provided by the employer for the purpose of securing the safety of the worker. (5) If he willfully causes to himself or permits to be caused to himself by another any personal injury. In this case the worker is liable to be punished with imprison ment not exceeding one year. (6) If he is working in an Industrial, undertaking which possesses pensions regulations which include provi sions for the payment to workers of compensation not less favorable to the worker than those provided by the Law. At any rate, the writer hopes that the Law will be ©mended to make workers’ compensation more beneficial and more comprehensive, following the lines and principles of compensation adopted by the United States with the California Law as an example. Occupational Diseases Not all job-induced Injuries are a result of acci dents that occur on the job. Many persons each year find themselves unable to work because of some occupational 98 disease. "This type of disease," according to Miller, "is one that arises out of and because of some condition on the Job.Such a definition is a difficult one to apply, since it is not possible to separate those conditions on and off the Job that may contribute to ill health. Despite the difficulty of applying the concept of an occupational disease, it is a widely recognised fact that there are health hazards in industry that cause illness. Information on industrial disease is meager, but some data are available.!^ These are of interest to show something* of the extent of the problem. Losses from industrial illness in the United States. — > Industrial disease is responsible for an appreciable portion of the total economic waste caused by sickness. The United States Public Health Service has found that:11? (1) The average adult is disabled by illness once per year. (2) The male workers lost on the average from seven to eight days each, per year. llii' Glenn W. Miller, Problems of Labor (New York: The Macmillan Company, 1951)# p» 311* -^5 Loc. clt. 116 Ibid., p. 312. Yoder, on. cit., p. 297- 99 (3) The female lost on the average from eight to twelve days per year. (i*) There were eight days lost per year because of sickness for each day lost on account of accidents. (5) Two per cent of all adults are ill each day. (6) The total time lost per year due to sickness and accidents is half a billion working days. (7) 111 health is the cause of 7 per cent of the total number of job separations. Also, a study made during 19^7 showed that each factory employee averaged 3*k absences, of which three- fifths were due to illness. Losses from industrial illness in Iraq. -« There have been no extensive statistical studies ms.de in Iraq which could provide a satisfactory and accurate picture of the amount of economic waste caused by industrial Illness. The Department of Labor and Bureau of Statistics in Iraq must pay more attention to provide this and other labor statistical matters. Classification of occupational diseases. — There are many industrial diseases. Generally the diseases center 118 Ibid., p. 298. 119 Qf. ante, Chapter II. 100 around various kinds of poisoning, illness that results from Inhalation of dust on the job, and those that show them selves in some skin disease.I20 Some of the more common poisons are lead, arsenic, and mercury. Exposure to dust results in various respiratory diseases, of which sihiosis probably is the most highly publicized.1^1 Skin diseases are the various infections or irritations that come from handling or otherwise coming in contact with chemicals or compounds, animal hides, and the like. Of course, there are other causes of industrial diseases than those suggested above.122 It is clear that work done under abnormal temperature or air pressure may bring illness. Dampness, poor illumination, or ventilation may do the same. It is not necessary, however, in this chapter to go into details concerning the classification of industrial diseases. Rather, the important matter is to recognize that there are many instances in which workers may be made incapable of earning a living because of sickness 120 For an elaboration of this general classification see: Philip Taft, Economics and Problems of Labor (Harrison, Pennsylvania: Stackpole and Sons, 19^2), Chapter V. 121 filler, op. cit., p. 311. 122 See for example: R. P. Blake, Industrial Safety (New York: Prentlee-Ha.ll, Inc., 19^5)» See also: Daugherty, op. cit., pp. 109~110. 101 induced by conditions on the job. Protecting the Worker From Industrial Diseases in the United States The United States has undertaken a many-sided attack on the problem of illness. Through public health measures it has sought to reduce the sources of Illness that can be traced to community conditions— unsatisfactory water supplies, pollution and contamination of water sources, inadequate sanitary facilities and others. At the same time, effort has been made to prevent Illness by eliminating working conditions that can be regarded as sources. Inspection of work places and insistence on careful control of industrial poisons, together with elimination of other conditions associated with particular types of Illness, are the means ordinarily used and accepted by unions and employers for this purpose. The unions, through the favorable recognition they have, have been able to help attack the problem of indus trial illness.12^ Many times, the union agreed to commit itself in the collective agreement to the safe operation of the establishment and to provide safety devices or 123 Yoder, op. cit,., p. 299- Miller, op. cit., p. 322. University of Southern California t-irowry 102 clothes.«phe union sometimes hinds itself to some state ment such as to cooperate with the company in encouraging employees to observe the safety regulations whieh shall be prescribed by the company and to work in a safe manner.3-2^ In some instances, some sort of union safety committee is provided for such a group work with representa tives of management on problems of health and safety in the plant. All in all, unions in the United States have contributed to the advancement and improvement of health and safety conditions in employing establishment s.^*2? Unions in the United States, through political action and lobbying work, have backed and obtained favorable legislation which provides for compensation for industrial diseases.128 At the present time, in the majority of the states of the United States, industrial illness has been made compensable under workmen1s compensation laws, thus providing an additional incentive to stimulate managerial efforts for the prevention of such diseases.129 Regular Loc. cit. Loo* olt. 127 Ibid., p* 323- ^■2® Loc. cit. ^29 Yoder, loc. cit. 103 physical examinations for employees are now common in many i n d u s t r i e s .-**30 Paid sick leave is frequently provided, in many cases by collective agreement.^31 In recent years, unions in the United States have begun to make use of a new approach to illness or disability once it has occurred, fhis new development has taken the form of employer-financed or aided health and welfare plans. In some cases the plans take the form of employer-financed group insurance programs. Protecting the Worker from Industrial Diseases in Iraq Public health measures In Iraq to reduce the sources of illness that can be traced to community conditions are not sufficient and relatively are insignificant. However, effort has been made to prevent occupational diseases by attempting to eliminate working conditions that are regarded as sources. Inspection of work places and insistence on healthy working conditions are the means required by the law to be used. Regulation for Workshops and Factories No. (38) for 1937 requires, for example, that: 130 hoc. cit. Loc. cit. 10J* Every workshop or factory must he kept in a sanitary and clean state and free from effluvia from any drain, urinal or other matter injurious to health. The ceilings and inside walls shall he limewashed and disinfected every six months or as may he required.132 . . . A factory or workshop shall not he overcrowded so as to he injurious to the health of the persons employed therein and shall provide, in no case, less than 250 cuhic feet of air space for each person employed in the room. 133 . . . Every factory or workshop must he ventilated in such a manner as to be harmless to the public health as far as possible, and every room must he provided with sufficient ventilators; to expel any gases, vapours or other impurities generated in the course of the work to the satisfaction of the local health authority.13^ . . . Effective measures shall he taken in the factory or workshop for securing and maintaining suffi cient lighting in every part of the factory or workshop where the employees work or pass. . . *135 . . . In industries determined to he dangerous and unhealthy . . . employees shall he subject to medical inspection by the local health authority at the place of work at least once a month.136 All these provisions and others provided by law aim at reducing the effect of illness resulting from work at the factories or workshops. However, only a few employers have Labor Law No. (?2) for 1936 as Amended by Law No. (72) for 19^2 (Baghdad: Government Press, 1952), p. 31. 133 Loc. olt. Ibid., p. 32. 135 ifria.. p. 33- 136 I M d ., p. 36. 105 complied with the law.-**37 The unions have not yet been able to help attack the problem of industrial illness or pressurize the employers to comply with the Law. The reason is that the Iraqi unions are weak and their right to organize and bargain collec tively is not recognized in pr©-ctice, although the right to organize Is recognized by Law.1^® At any rate, the Labor Law fixes the liability of individual employers for payment of compensation for listed occupational poisoning or disease disabilities, Iraq having ratified the Workmen1s Compensation (Occupational Diseases) Convention (Revised), 193^, in 19^1.^39 The compensation afforded by the employer consists of medical care and cash benefits for incapacity and death. The list of occupational poisoning or disease disabilities includes: lead poisoning; phosphorous poisoning; arsenic poisoning; mercury poisoning; nicotine poisoning; anthrax; horse glanders; industrial cancer; silicosis; asbestosls; and any other Industrial metallic or gaseous poisoning.!**0 Employers, however, may post, Chapter V. Loc. cit. 139 social Security, op. cit., p. 19. 1**° Labor Law, op. cit., pp. 35-36• 106 Insure this liability with a commercial insurer. The provisions apply to wage earners in industrial undertaking, Including factories, mines, construction and transport. Foreign workers and their dependents are guaranteed the same treatment in respect to compensation as that received by Iraqi workers, provided such foreign workers are nationals of countries adhering to the Equality of Treatment Convention, 1925» which Iraq ratified in 19iK).lifl The same thing is true regarding industrial accidents. However, the Law does not cover agricultural, domestic and casual workers. Sickness in the United States If a person must suffer an accident or disease, he is much more fortunate if it is one that -arises out of the Job. For those he is likely to draw some workmen’s compensation as well as medical and hospital care. Most states offer no assistance to those unable to work from non—Industrial causes. And to make the situation worse, illness of depen dents is not likely to bring any benefits. Exceptions to this may be found among coal miners and some other unionists for whom health and welfare programs have been established and among the workers of some companies that have set up Social Security, loc. cit. 107 some sort of insurance or disability benefit program. Statistics about illness in the United States. — Scattered information concerning the extent of general illness in the United States indicates that much more labor time is lost from non-induetrial accidents and diseases than from those that are induced by the job. A survey made in 19^7 by the Bureau of Labor Statistics and other cooperating government agencies led to the conclusion that “nearly two- thirds of all work absences, for whleh the reasons were known, were ascribed to illness or accidents not related to employment. Professor Yoder, in 19^6, expressed the opinion that the average American worker lost “one day per year because of accidents and eight or nine . . . on account of illness."1^3 This estimate groups the losses from industrial and non-Industrial sickness and accidents. Some years ago, in,1938, Professors Millis and Montgomery stated their conclusion that men lost seven to nine days of work per year and women eight to twelve days due to illness.Such disability, however, was quite M. D. Kossoris, "Illness Absenteeism in Manufac turing Plants," Monthly Labor Review, Vol. 66, No. 3, March, 19^8, p. 265* 3*^3 yoder, op. olt., p. 706. H. A. Millis, and R. E. Montgomery, Labor1 a Risks and Social Insurance (New York: McG-raw-Hill Book Company, 1938), p. 23^ 108 evenly distributed; some families experienced many times the loss of time and income than others did. It was estimated that the average worker*s loss during a year, wage losses, and the cost of medical care, would be about 6 per cent of total wages. In view of the fact that the average is only a sort of mid—point, many workers and their families had much greater losses. This fact, in the opinion of Millis and Montgomery, “frequently undermines the standard of living and often reduces families to poverty. “3-^5 In the opinion of the authors Just quoted, non- industrial disabilities presented a problem to individuals and society. Certainly that conclusion was and is a valid one. However, public recognition of and action on the fact came very slowly in the United States. * Disability Insurance in the United States. — Disability insurance because of temporary illness not aris ing out of a worker* s employment is a relatively new development in the United States. By mid—19^9, only Rhode Island, California, New York, New Jersey, and Washington had adopted such laws, in addition to provisions in:the federal railway social security system. Interest in this type of legislation is Increasing, however, especially as a result Ibid., p. 2U3. 109 of the 1946 amendment to the Social Security Act whereby states were permitted to withdraw employee contributions deposited in state accounts in the Unemployment Trust Fund to pay temporary disability benefits, a permission which affected nine states.1^ In addition to the states which have adopted disabil ity legislation, five states provide for the continued payment of unemployment insurance during period of sick ness.1^ The disability insurance laws are of two distinct types. One type, as represented by the Bhode Island program, is similar to unemployment insurance, . . . in that there is a single system operated by the state, which collects all contributions and pays all benefits. The rights of covered workers are, therefore, identical Irrespective of their employers. In California, however, features characteristic of work men^ compensation have been adopted. Employers are permitted, subject to certain conditions, to set up their own schemes and to finance them through private Insurance or to self-insure. Both eligibility condi tions and benefits, therefore, depend upon whether a worker Is employed by a firm which exercised this option or whether he is directly covered by the state system.1^ Evelina M. Burns, The American Social Security System (Boston: Houghton Mifflin Company, 19^9), p. 210. koo» cit. These states are Maryland, Montana, and Nevada since 1945; and Idaho and Tennessee since 1947. ll*6 Loc. cit. 1101 i The New Jersey and Washington laws are similar to that of California. The New York law Is actually an exten sion of some of the least desirable features of workmen1e compensation, as it provides for exclusive private insurance and administration by the State Workmen's Compensation Board. The railway system is similar to the Rhode Island plan in that it is Integrated into the Railroad Unemployment Insurance Act. The disability laws generally follow the unemployment insurance system in regard to eligibility requirements and waiting periods. Temporary disability is defined in general to mean physical or mental illness incapacitating a person so that he cannot perform his work. The average weekly payment in Rhode Island up to late 19^7 was $16.73; California has a minimum benefit of $10*00 and a maximum of $25.00. The disability insurance laws base payments on percentage of income. Most laws limit disability payments to those who do not receive workmen's compensation, but Rhode Island permits receipt of both up to a maximum of 90 per cent of a worker's weekly wage. Except in New York where administration is in the hands of the Workmen's Compensation Board, disability insurance is administered by the appropriate unemployment compensation agency. The latter arrangement is advantageous Ill because It facilitates use of unemployment insurance records. Where private insurance is permitted, however, some of the advantages of this centralization is lost. The cost of disability is met in various ways. In Rhode Island and California taxes on employee payrolls of 1 per cent, formerly used for unemployment compensation, pay for the plans. Under the railroad plan payments are made out of the railroad unemployment insurance fund financed by employer taxes with no additional contributions for temporary disability insurance. New Jersey provides for employee contributions of 0.75 per cent of the 1 per cent tax of payroll formerly paid for unemployment compensation where covered by state plan. Where covered by private plan, workers have the unemployment tax reduced from 1 to 0.25 per cent, modified after July 1, 1951, by experience ratings. The New York law, which went into effect on January 1, 1950, provides for employers and employees to split contributions of two-tenths of 1 per cent of the payroll with a maximum contribution of twelve cents per week per employee up to July 1, 1950. Thereafter, employees contribute 0.5 per cent of wages up to thirty cents per week; employers pay any remaining costs. Washington taxes employees 1 per cent on the first three thousand dollars of annual wages to cover costs, but permits private plans and private financing if ' ' 112' specified conditions are met. Disability assistance. — Besides the disability insurance programs, there are two assistance programs for the disabled in the United States. One disability assist ance program for the totally and permanently disabled exists only in Wisconsin. The other, aid to the blind, is the third assistance program which is included in the Social Security Act of 1935» the others being old age assistance and aid for dependent children, which will be described in a separate subject. Disability assistance has been in operation in Wisconsin only since 19^5• It is available to persons who are found by medical decision to be totally and permanently disabled and who require constant care. To qualify, a person must be a resident of the state continuously for one year prior to application, an American citizen between seventeen and sixty-*four years of age, without relatives able to bear the cost of care, and in residence outside of a public institution. Ownership of a home of reasonable value and one thousand dollars in liquid assets does not disqual ify an applicant.1^9 The maximum grant under Wisconsin^ disability law is 1/4,9 Ibid. , pp. 295-296. 113 eighty dollars per month, and the average grant as of February, 1948, was $57 •83- Approximately five hundred persons were then receiving benefits under the program, which is financed on a joint state-county basis. The counties administer the program under general state guid ance .3-50 Aid to the blind, under the Social Security Act of 1935* operates on a grant to the states basis, with the states required to meet certain specifications to be eligible for the grant. In 1948, all jurisdictions except Alaska were operating aid to the blind programs, and two states had additional plans running concurrent to the federal one. * Since October 1948, federal aid to the blind has been on the basis of grants equal to three-fourths of the first twenty dollars per recipient multiplied by the number of blind persons assisted, plus one-half of the remaining expenditure, not exceeding fifty dollars per person. In addition, the federal government pays one-half of the administrative costs. To be eligible, states must not impose residence restrictions which exclude persons who have resided in the Loc. cit. 11^ state for five of the nine years immediately preceding the application; states must not exclude any otherwise eligible American citizens; they must take income and resources into account in considering need; and they must not give federal payments to persons living in public institutions. Most states follow these rules, with some liberal variations, but some states also impose other requirements, such as prohibi tions on panhandling and requirements that no blind person can receive aid if he refuses medical attention which might improve his condition. In June 19^8, 79*153 persons were receiving aid to the blind, and 62,085 of these were included in plans receiving federal' aid. The average monthly payment under the federal participating plans was $*H.18, the variation was from |20,26 in South Carolina to |72.56 in Califor nia.1^1 Health insurance. — Workmen*s compensation and disability insurance, except in so far as the former pays medical costs, are insurances directed primarily against loss of income. Health insurance goes further. It attempts to provide prepaid medical care to the population regardless of the effect of illness upon Income, and regardless of 151 I M d ., pp. 33*K335. " 115 ’ j whether the person in need of medical care is the family breadwinner. The most comprehensive health insurance programs in 19^9 were operating in Great Britain and New Zealand. In the United States neither the federal govern ment nor any of the states had by then adopted a health insurance program. ♦ Despite the absence of health insurance in the American scene, the need for prepaid medical care has long been recognized. A majority of American families cannot afford a serious illness. Medical outlays have been estimated at approximately k per cent of the national income. Moreover, An unlucky sixth of the American people, . . . pays in one year half the total sickness bills paid by every body in that year. No one can tell in advance whether his family, during the next year, will be in the lucky half, the moderately lucky third, or the unlucky sixth.153 j Sickness is also likely to fall heavily upon the lowest income groups, because they are most exposed to illness by reason of poor housing, poor dietary habits, and ignorance of proper preventive measures. Even a family with an Income of five thousand dollars per year is dealt a staggering financial blow by an illness which requires Millis and Montgomery, op. oit. , p. 237- 153 Bloom and Northrup, op. clt., P-» 589 • 116 extensive surgical or specialist treatment, hospitalization, and nursing or convalescent care.^5^ Such an illness can wipe out the life savings of the five thousand dollars income family, or throw it deep into debt. Ho wonder that sickness is a primary cause for application for charity among lower income groups.-*-55 Another result of the high costs of medical care, in the United States, is that thousands of persons do without needed medical assistance, harming not only themselves but society as well. For persons in need of medical care are often either disease carriers or less efficient employees. They are more likely to become unemployable and a burden to society. The old adage that an ounce of prevention is worth a pound of cure is applicable. Easy access to medical diagnosis should, therefore, not be dependent upon income. Sickness Problem in Iraq There is a great deal of ill-health and contagious disease in Iraq which is traceable, among other factors, to climatic conditions, the prevalence of tropical diseases, and inadequacy of diets. Statistics about sickness in Iraq. — Statistics 1171 given by Gamble***-^ indicate the extent of illness and diseases in Iraq. The number of patients treated in 19^5 In all health institutions was ty,780,^83 in a population of ^,800 ,000. *^7 The most common diseases for which treatment was given were, in order of frequency: eye diseases, diseases of digestive system, epidemic, endemic and infec tious diseases (including malaria and bllharzia), skin diseases, and diseases of the respiratory system. In social questions affecting production and trade, bllharzia (which, incidentally, causes a great deal of the eye disease) and malaria are important factors. They affect the physical capacity for work, especially in the agricul tural areas where they are most prevalent, and sap the vitality and initiative of the people. The Iraqi Government has set up a Malaria Institute and preliminary investigations Into the incidence of bllharzia have been completed, while several preventive measures on a small scale— such as the provision of a supply of piped water to a few villages— have been taken. It is likely that a Bllharzia Institute will be set up eventually. Further statistics indicate that there is a shortage Gamble, op. cit., p. 31* Loc. cit. 118 of doctors. In 19^5* there were 569 doctors registered in Iraq.^ 8 fhis shortage of doctors is made worse by their uneven geographical distribution, resulting from a wide spread tendency for doctors to concentrate in the larger cities and towns. Of the 569 doctors, for example, 308 were located in Baghdad which had less than 10 per cent of the total population.159 Statistics also, indicate that, roughly, there is about one doctor per 15»**00 of the popula tion in the provinces and one for every 2,700 in B a g h d a d . 1 ^ Efforts, however, have since been made to eliminate this disproportion. The Iraqi Government made it compulsory for doctors to spend three years in a small community before becoming eligible to practice in the larger cities. Although numerous hospitals and clinics are main tained by the Directorate General of Health throughout the provinces, statistics indicate that the supply of hospitals is inadequate. The average number of beds in hospitals, for example, public or private, may be estimated as 0.7 per one thousand inhabitants.1^1 All these figures indicate that 158 Ibid., p. 30. ^59 Loc. cit. 160 Ibid., p. 31- Social Security, op. cit., p. 44. the sickness problem in Iraq is a serious one. Disability insurance in Iraq. — Disability insurance because of temporary illness not arising out of a worker1s employment is one of the good measures which should be adopted by Iraq. This writer believes, however, that employers in Iraq are not capable financially of supporting a scheme like that required by California.1^2 The few employers or firms capable of introducing such a program have not yet volunteered to do so. Any scheme, therefore, for disability insurance must be aided by the government. If this could be the case it might well be operated by the State. This includes both . collection of contributions and payment of benefits. Disability assistance in Iraq. — Except for a few charity organizations there is no scheme or program which takes care of or offers assistance to totally disabled or blind persons. The seriousness of the problem created under such circumstances can easily be felt if one has the opportunity to go to Iraq and see the great number of those disabled and blind persons who have been forced to become beggars to earn their livelihood. There is an urgent need for a program (soeial security program) which provides Of. ante. p. 1 0 9. 120 assistance for such people. Health Insurance in Iraq. — There is no health Insurance program in Iraq. Despite the absence of health insurance in Iraq the need for prepaid medical care has long been recognized. For example, in Baghdad, the King Faisal Hospital and Protection of Children Hospital have years ago provided for free medical treatment for everybody who asks for it. However, experience shows that the service offered In this form has never been satisfactory. This may be due, among other reasons, to the limitations of the size of the hospital, number of doctors, nurses and beds, and also to the large number of people asking for free treatment. Besides, free medical service is only provided In a few of the main cities. Therefore, a large segment of the popula tion, as poor as it is, is without medical care because it cannot afford it. It seems to this writer that there is a pressing need for a national social security plan to be adopted In Iraq to take care of the large number of the population, especially the workers, because they are in the lowest income group. The Iraqi government has, recently, been thinking of introducing a social security plan. For this purpose and* by request of the government, services of an expert from the International Labor Organization were made available to 12.1 study the situation and introduce a plan. Wo matter what the principles or lines included in the plan will be, there is no justification in principle for any plan to exclude the Iraqi agricultural workers from either medical or cash benefit provisions applying to the other workers or groups. Such a plan would be unsatisfactory and incomplete. It is unthinkable to plan for the social security of a population and not to include the agricultural workers (peasants) who form the majority of the population of Iraq. In brief, Iraq needs a comprehensive program of socialized medicine on the basis of the principles of Social Security in the United States. Old Age Problem Persons sixty-five years and older in modern society are widely recognized as deserving special consideration as a distinctive segment of manpower resources. Problems of utilizing the services of this group effectively and of caring for members of the group who require assistance have long been matters of concern. That valuable resources are frequently wasted in the unemployment or Inappropriate employment of older persons should require no demonstration. Losses thus incurred are not so apparent in periods of prosperity and labor shortages. But when employment eases and there are labor surpluses, both the unemployment of 122 older members of the labor force and their dependency are quickly noted. They are released from employment more promptly than younger employees. They encounter much greater difficulty in finding new jobs. Sources of the problem. **** The reasons why older persons find it difficult or impossible to earn their live lihood and why employers prefer young workers springs from a number of sources. Dr. G-aris^-^ lists the following reasons: (1) Young workers learn more quickly. (2) They are more flexible and adaptable to new methods. (3) They produce more. (ii-) Insurance rates on young employees are less than on old ones. (5) Young employees experience fewer periods of sick ness and probably have fewer accidents. Aiding the Aged in the United States Many means of caring for the aged are used in the United States. These are:^^^ (l) Post-retirement utilization. — This means seeks 163 Garis lectures. Garls lectures. See also: Yoder, op. cit., pp. 36l«-*368. 123 to attack the problem of aged people by increasing opportu nities for suitable employment of older persons. (2) Private aid; union benefits. — Some local and international unions have Included provisions for pensions in their mutual benefit systems. Still others have provided for aged union members. ■(3) Joint unlon-employer provisions. — The United Mine Workers developed a system of industry-wide pensions financed by a royalty of twenty cents on each ton of coal As presently effective, the program provides pensions of one hundred dollars per month at the age of seventy, for all union men in good standing. The Taft—Hartley Act Included special regulations for such joint plans. (k) Private pension plans. — Approximately twelve million employees are presently covered by private pensions. According to a 19^8 survey by the Social Security Adminis tration, M-2 per cent of the plans studied were noncontribu tory. That is, the employer pays the full cost of the pension. Most plans require more than one year of employ ment for eligibility. Some 97 per cent specify age sixty- five as the retirement date for men. Fifteen per cent provide a lower retirement age for women. The same study indicates that only about one-fourth of all employees in the concerns providing pensions are 12k | i participating in these programs. (5) Public pensions, railroads. — Railroads in the United States are among the industries in which private pension plans have been long established. Nevertheless, railroad employees benefit from the Federal Railroad Employees1 Retirement Act. The Act now provides pension coverage for some 1,500,000 railroad, express, and sleeping- car employees. About 200,000 former employees are now receiving pensions under the Act. The Act permits retirement at the age of sixty-five or earlier in case of disability. Pensions vary with length of service and contributions. Funds are provided by a tax at present 3 1/2 per cent of salaries and 3 1/2 per cent of payrolls. No maximum benefit is stated. The Act is administered by the Railroad Retirement Board. The law provides benefits for disability as well as pensions. (6) Social Security Act. — This is the most effec tive Federal legislation providing pensions for private employees. It was enacted first in 1935* The Act provides two distinct types of aid to the aged. One is a system of old-age assistance, which is made available to all who demonstrate their need. This program, administered by the states on a fund-matching basis, is essentially a means of Introducing system and planning into old-age relief. It is 125 not a pension plan in the usual meaning of these terms. The other program provides a system of compulsory insurance to which both employers and employees are required to contribute. Pensions and survivor's benefits are provided for those who qualify for participation, without reference to need. Both plans were formerly supervised and administered by the Federal Social Security Board. The Reorganization Act of 19^8 abolished the Board and trans ferred its functions to a new Social Security Administra tion. Each of the systems described above is represented by a bureau in the SSA. The Act provides coverage for all employees (regard less of the size of establishment) except such employments as are specifically exempted. Exempt employment originally included agricultural, domestic service, casual labor, maritime activities, family employment, employees of foreign and governmental agencies, and those in nonprofit, religious, charitable, scientific, library, and educational institu tions, and services of newsboys under eighteen years of age. Changes in the Act in August, 195^, have extended this coverage to permit about ten million additional employees to participate. The new changes in the Act place farmers, engineers, accountants and architects under the old-age insurance system for the first time, and extends coverage to 126] many state and local government employees. Federal, employ ees now covered by the civil service retirement plan and an additional 2,100,000 farm workers also will be eligible for Social Security benefits under the new law. The only persons still exempt from the old age insur ance system are physicians, dentists, others connected with the medical profession, lawyers, federal civil service employees, and farm and domestic xrorkers who do not make enough to qualify. Farm workers must make a hundred dollars a year from the same employer in order to be covered, and domestic workers must be paid fifty dollars or more in cash wages during a calendar quarter.2*65 Contributions are collected equally from employers and employees. They were based on the first three thousand dollars of wages or salaries— now 14,200 under the Act of August 195^* As originally provided, they were to amount to 1 per cent for 1937# 1938, and 1939; 1 1/2 per cent in 1940, 194-1# and 1942; 2 per cent in 1943# 1944, and 1945; 2 1/2 per cent in 1946, 1947# and 1948; and 3 per cent thereafter. Congress has repeatedly modified the original law, however, and held the tax constant at 1 per cent through 1949* Beginning in 1950, the rate was set at 1 1/2 per cent. The Los Angeles Times, September 2, 1954. Act of August, 195^, sets the rate at 2 per cent of the employee*s pay to the Social Security fund until January 1, i960, when the rate will "be boosted to 2 1/2 per cent. ^*66 Benefits available under the Act depend on the status of the insured employee. He is fully Insured if he has worked in covered employments for forty quarters and received at least fifty dollars in wages in each quarter since 1936. He may have the same status if he has earned fifty dolls,rs per quarter in covered employment in at least half the quarters since 1936 or since he became twenty«one years old and before he became sixty«~*five. If a deceased pensioner earned fifty dollars or more in six quarters of the twelve immediately preceding his death, he is regarded as currently insured. Pensions and some survivors* benefits are not available unless the pensioner was fully insured. But survivors1 benefits to widows with children and to dependent children are payable whether the pensioner was fully or currently insured. A pensioner*s primary benefit, paid each month until his death, is calculated as UO per cent of the first fifty dollars of average monthly wages, plus 10 per cent of the remainder up to two hundred and fifty dollars, plus 1 per Loc. cit. 128 cent for each year in covered employment (in which at least two hundred dollars was earned.) A minimum primary benefit of ten dollars is provided. The wife of a pensioner is entitled to an additional benefit if she is sixty-five or over, is living with her husband, and does not have primary benefits in her own right amounting to half or more of her husband*s benefit. The wife*s benefit, in such cases, amounts to one-half the husband's primary benefit. She receives that benefit until her death, or that of her husband, or her divorce from him, or until she becomes eligible for a larger benefit in her own right. | A dependent child of a pensioner, if the child is under eighteen years of age and unmarried, is entitled to a supplementary benefit equal to one-half the primary benefit of the pensioner. However, the combination of all benefits payable on account of a single pensioner many not exceed certain maximum amount of benefits. A range of minimum benefits is also established. The benefits increase with increasing number of the pensioner*s dependents or orphans. When the Act was passed in 1935* no provision was made for payments of benefits to survivors. In 1939* however, it was amended to provide survivor*s benefits. A widow of a pensioner, if she has not remarried and 129 is not eligible for a benefit in her own right of more than three-fourths of the pensioner*e primary benefit, may receive a widow*a benefit of three-fourths the primary benefits. She may continue to receive such a monthly bene fit until she dies, remarries, or becomes eligible for a larger primary benefit in her own right. Lump-sum benefits are also available if the widow has no young children. Surviving children, unmarried and under eighteen years of age, may receive benefits equal to those available to the children of living pensioners. Parents of pension ers, if they are over sixty—five, have no benefits on their own account amounting to one-half or more of the pensioner's ' primary benefits, and were chiefly dependent on the pensioner, may receive parent's benefits amounting to.one- half the pensioner*s primary benefit. Survivor's benefits are also subject to the limita tions on minima and maxima. Under the new law, larger benefits for 6,500,000 persons now on the Social Security rolls will be effective in early October, 195^* Effective with September, all 5,000,000 retired persons now on the rolls will get a minimum increase of five dollars a month. The average payment to them is expected to go up to about fifty-seven dollars, which is six dollars more than they now receive. 130] i Future benefits will go up considerably under new benefit formulas. For example, the maximum payment for an individ ual will be $108.50, as compared with $85 at present. For couples the new maximum is $162.75, up from $127.50. Under the new law persons between sixty-five and seventy-five can earn $1,200 a year without sacrificing their Social Security benefits. The previous limit was $75 a month.^67 To make the larger benefits possible, the salary tax base will climb from $3,600 to $4,200 a year, effective January 1, 1955* (7) Old-age assistance. — Framers of the Social Security Act realized that many needy aged would not, for one reason or another, be eligible to receive pensions. They would not have been employed in covered employments, or they were too old to establish themselves as fully insured under the law. Accordingly, provisions were made for old- age assistfhnce payments to be made on the basis of need. Federal funds were made available to supplement state grants in such cases. Federal, grants are conditioned on specified provi sions in state programs. The latter must be in effect throughout the entire state, must involve grants of state Daily News, Los Angeles, September 2, 1954 (as distinguished from local) funds, must be administered by an efficient state agency, must allow a hearing before a state board for those whose claims are not allowed, must not require more than a specified maximum of residence in the state or set an age limit above sixty-five for eligibility, and must make such reports as may be required by the Federal Administration. All states have qualified for old-age assistance grants under these provisions. States may establish the amounts of assistance to be granted. The Federal Government contributes fifteen dollars of the first twenty dollars per month and half of any amount over twenty dollars per month, except that the maximum Federal contrlbu- tlon is thirty dollars. Also, and in addition to these grants, the Federal Government will allow an amount equal to 50 per cent of the total of its grants to each state to be used for administration of the program. Although many persons and writers^® maintained that some provisions of the Social Security Act are inadequate, in the opinion of this writer the United States had achieved a great deal in coping with the old age problem. Old Age Problem in Iraq Data concerning the age composition of the population Miller, op. cit., pp. 276-277. See also: Yoder, op. cit., p. 3 6 8. 132] of Iraq are not available. Therefore, the extent of the problem of dependent old age is not possible to ascertain. However, measures taken by the Government indicate that the old age problem has long been recognized in Iraq. Methods of Coning with Old Age in Iraq One of the inadequate, but commonly used means of dealing with old age dependency in Iraq has been to lay the burden of support at the door of children of the aged. Even today there are numerous children contributing to the support of their parents, some doing so willingly while others are doing so compulsorily under the rule of Law. Leaving the support of the aged to their children, of course, leaves some of the problem unsolved. Some of the aged have no children, others— «and this is generally the case— may have children whose income or financial burdens or both are so heavy that support of others may be impossible. In good part the weakness of such a plan has grown as urbanization and non-agricultural pursuits have grown. On the farm there were plenty of chores which an aged parent could do that were useful to the family and made the parent an asset or at least not a full liability. In addition, farm housing was not likely to be so small and incapable of expansion as the urban house. Another attack on the old age problem in Iraq comes 133 from the Law of Pensions of 19^+0. This Law is a compulsory pension insurance scheme and it applies to all permanent employees (officials of the State).^ 9 However, workers and temporary employees working for the State are not covered by this Law.^-70 All other workers and employees who are not working for the State are also excluded..171 Except for those above mentioned means, plus a few homes operated by charity groups and the State, no other measures are practiced in coping with the old age problem in Iraq. Private pension plans are only heard of but never existed. Union benefits plans or joint union-employer bene-j fits plans never existed, and at the present they cannot exist. This is mostly due to the weakness of the labor unions in Iraq.1^ The above indicates that the problem of aged people in Iraq, In general, is not very well solved. As far as aged workers are concerned they are not protected and have almost no security. This constitutes a serious problem, especially as the average Iraqi worker is unable to save out 169 Saadi Bessisso, Public Finance and Financial Legislation of Iraq (Baghdad: Tofayijidh Press, 1950), p.l5J7 L°c» cit. ! 171 Loc. cit. ££* ££££.» Chapter V, for the reason. 13** of his income so that he can live on savings when he no longer is able to work. The needs of the workers for social security are very great. Borne means must be provided to insure that aged persons will have an income. Provisions relating to cash benefits under social Insurance must take account of presumed income loss, but they should also allow for the special conditions prevailing in Iraq. The widespread illiteracy and the newness of social insurance would indicate that benefit provisions should be kept as simple as possible. A scheme which only seeks to establish rough justice will be better understood by and more attractive to the insured populatloh, and hence more workable than one containing over-refined and complex ■ provisions. This observation applies with equal force to provisions concerned with rates of benefit and to those dealing with eligibility. An important rule which might well be observed in designing the benefit provisions is that, so far as possi ble, the rates for beneficiaries in a similar status should be uniform, irrespective of the type of work which has led to this status. Old-age pensions must be payable throughout life. Survivors1 pensions should also be payable for life to aged widows. Benefits for widows who are relatively young, 135 however, should be suspended after a few months unless the widow is an invalid or has young children. They may then be reinstated when the widow is once past the normal working age if she has not remarried. Orphans should receive survivors* pensions for so long as they remain children. By carrying out such a program, Iraq will, probably, fairly deal with the old age problem and will provide a good relief to aged workers. CHAPTER IV HISTORY OF THE LABOR MOVEMENT THE RIGHT TO ORGANIZE To begin the consideration of the problem of labor unions in Iraq, a useful approach is to give a general survey of the history of the labor movement in some of the leading industrial nations. It is the hope that history will assist Iraq In avoiding the mistakes of past genera tions and indicate a short cut toward better and peaceful relations between workers on the one hand, and employers and government on the other, for the benefit of the economy of the entire country. I. THE RIGHT TO ORGANIZE IN EUROPE The early labor movements for organizations appeared in Europe. Europe, during the eighteenth and early nine teenth centuries, exercised great governmental resistance through law and force to any attempt of the workers to stop work in groups on the one handf and greatly opposed the Idea of allowing the workers to start any form of association to protect and develop their own interests on the other. • * * From notes dictated by Ahmad Kutib, former instruc tor of Social Economy in the College of Commerce and Economics in Baghdad. 137 The authorities usually held on the idea that such labor groups will restore the old Guild system which was in contradiction to the principles of free trade and commerce in the sense that a person could never start a business or a profession on his own unless he gets a membership or the approval of the guild in charge of that type of activity.2 It later became very obvious that such opposition was not motivated by the desire to protect the laboring class and its vital interests as much as it was an attempt to stem out any possible organization of those gres/b numbers of workers in a single group that might become someday too inquisitive or dangerous to the existence of the shaky governments of those European countries.3 The defense of those governments to the effect that the purpose of their opposition to unionized labor is only to seek the freedom and liberty to work for the workers is a complete negation of their activities. Actually, in the name of freedom of work and trade they suppressed one of the basic rights of the individual, namely, the right of assembly, the right to congregate to organize. In fact, an honest attempt to free the workers from the bondages of the 2 Loc. cit. ^ Loc. cit• 138 guild should necessarily have carried with it the most vital right of assembly in the form of organized labor. This policy of opposition was the technique all through Europe, even though the results differed according to the countries and according to how fast and widely the principles of democracy were being entertained by the public. Suppression tbok all the possible forms and types, with the help of the law and with the mere use of naked force. Such activities forced the workers to organize secretly and develop their underground strategies in the face of the administrative persecutions that made such secret organizations change their forms and activities all the time and Increase their efforts to strengthen their rank and file to the extent that outbreaks of violence and bloody revolts were openly declared. This fact led to the develop ment of a new element in the struggle— namely, that of distrust which carried with It those dangerous emotions of hate and animosity between the laboring classes on the one hand, and the laboring class and employers or the government on the other. Due to such extensive open revolts and clashes, coupled in time with the sweeping principles of democracy accepted by the European countries, more direct pressure was exerted on the local administrations to follow a more 139 lenient and more favorable policy toward labor* Labor laws were demanded and were soon drafted. Workers were given the right to strike against the unjust practices of the employer, and freedom of organization became legalized and defendable before the courts. Time brought more and more of this new liberal treatment of labor. The liberal-minded lawmakers started competing with one another in protecting the new organizations and defining a liberal field of their operations. Evolution of the Right to Organize in England The*leading country in the field of protecting labor organizations and defining a liberal field for their operations was England, which in 1824 passed a law legal izing the strikes and the organization of workers in unions.** This law was amended the next year because it really caused a great labor disturbance which came as a result of the new freedom given after a long period of suppression and opposition. The new law was introduced for the purpose of out lawing organized efforts for criminal purposes both on the side of the workers and of the employers who were accused of 4 Walter G-alenson, Comparative Labor Movement (Mew York: Prentice-Hall, Inc., 1952), p. 3* 140 hindering the right of the workers to join their own unions. Nevertheless, this law did not prove itself very successful in the face of the growing agitation of the labor organiza tions which started to Idealize some of the new publicized principles of socialism on the continent. Bloody incidents and acts of violence by workers were met by more suppressions by the authorities, and the codes of the 1825 law were severely applied by the court, which gradually led to less violent action on the part of organized workers, and directed the labor unions to spend most of their efforts for the improvement of conditions for its members. At the same time they became better organized and more stabilized. Their political Influence eventually increased, enabling them to ask for new privileges which they gained in the year 1871. In 1871 the law of labor unions was passed and became one of the corner stones of the labor legislation in England. The new law provided the unions with more freedoms and privileges on the one hand, and provided them with a new and accepted legal entity which allowed them to bring suits in defense of their rights to court.^ This was just the beginning of the new era as scores and scores of labor laws * * Ibid. , p. 5• 1^1 and codes followed the same tempo and drew better plans for industrial organization and human relationship. Evolution of the Right to Organize in France France continued the policy of oppression as the administration never did realize the immense power that labor had acquired until the revolution of 18^8, after which the socialist wing got into power and actually legalized the organizations of the workers and attempted to raise their standards. The restoration killed the infant attempts and back came all the previous techniques of persecution and oppression of the workers. But it was the law that was issued under the influence of Louis Napolean in 186^, aimed at attracting the workers to his side, that legalized the labor unions and their activities and gave the workers their right to strike. Nevertheless, the movement of liberalism in industrial relations was tempered down and continuously watched until it was given its first fair chance in France in 188*4, when a new law was passed recognizing the then practiced and accepted rights, duties, and privileges as well as the responsibilities of organized labor and labor unions.^ 6 Ibid., p. 319- i hz The March of Liberal Labor Laws to Other Countries The same move was later copied by most of the European nations, such as Italy, Greece, Russia, Germany, and so forth— and many of the countries outside Europe, among them the United States of America, Japan, and Australia. The end of World War I brought more liberal reforms favoring the great numbers of the working people on the one hand, and more member nations on the other. The usual practice was that special lawe and codes were passed now and then to bring in the new and needed provisions. But certain countries went beyond that and Included such codes in their own constitutions in order to show their importance to the life of the nation as a whole. Still another expansion came to be recognized when a univer sal need was felt to guarantee such rights, privileges, and duties of the workers on sin international level, and that is how the peace treaty— Treaty of Versailles— definitely recognized and provided for that need. The preamble of part thirteen of the , , treaty, , recognized the importance of the laboring people and the effect of their standard of living on the peace of the world in general and the well-being of their own countries in particular. It, therefore, demanded and recognized the need for labor legislation to remedy the mistakes of the past and 1*K3 to guarantee labor rights in the future.7 Article kZ7 declared the necessity of recognizing organized labor and respecting the efforts of the unions as long as they operated in conformity with the laws of their countries.® Article 389 stated the importance of repre senting both the employer and the employee views in the International Labor Organization, leaving a fairly wide discretion for the individual government to pick the men from among the two camps of Interest provided that those picked represented the majority of their camp.9 So far all was going well with the labor movement until a new reactionary movement in certain countries started to attract attention after World War I. Of these, the movements in Germany, Italy, and Russia were in the lead. They aimed at subordinating the will of the union and of labor to the will of the State. Organized Labor Under Fascism in Italy In Italy, under the Fascist regime, the order came to be that of the ‘ 'corporate system," in whieh labor unions ^ Boutelle Ellsworth Lowe, The International Protection of Labor (New York: The Macmillan Company, 1951)> p. koi. 8 Ibid., p. WL1. 9 Ibid., p. i*02. H A became the subordinate tools of the state, even though they were represented in the Italian legislature. The State was held the supreme entity and all efforts were to serve that aim. The year 1926 brought with it the new law which uni fied all social, cultural, economic, and political efforts for the support of the new corporate Fascist State.^-0 The law included many significant provisions, some of which follow: 1. It guaranteed labor the right to organize and workers the right to Join labor unions, 2. It guaranteed government recognition to any union which gained the support and membership of ten per cent of those engaged in that particular profession. 3. The government-recognized union was granted the right to represent the whole profession and to represent the actual members as well as non-members of the union who practiced that profession. b. Workers' strikes were made illegal and employers were prohibited from closing their factories. 5. The decisions of the labor courts had the status of law and were enforced as such. In addition, the law directed both workers and 10 The Fascist slogan at this time was: all within the State, nothing outside the State, nothing against the State.________________________________________ _______________ 145 employers to organize themselves separately and to try to reach collective agreements regarding working conditions, wages, number of working hours, and so forth. These agreements were held to apply on everyone practicing the particular profession or Industry whether he was a union or a management member or not. One condition was greatly stressed in this case, namely, no right of professional monopoly should be practiced in any industry or field of production. This was a block devised against the restora tion of the old Guild system of the Middle Ages. A hierarchy of union representation was drawn in the shape of a Pyramid, starting with the small locals and ending up with Fascist General Convention of Industry which is directly attached to the ministry of labor. The conven tion was assigned the responsibility of studying the technical and industrial problems, educate its membership, settle and arbitrate problems arising between workers and employers, sending unsolved such case of dispute to the labor court, and finally to pick the representative of the particular group or union to parliament. As mentioned before, the will of the State was always held to be supreme in the whole system. This explains why there were no provisions made as to the guarantees given to the unions against the governmental policies. The law of 146 1926 left the unions no independence or freedom, and recog nition to any union or its abolition was left completely in the hands of the State. The unions were openly deprived of their powerful weapon of strike. The excuse was shown to be that such activities will manifest a definite class struggle which is not approved by the Fascist State. The labor courts were to draw the final word in unsolved cases of employer-.employee disputes. The decision will be guided by the principles of justice and will be enforced for the purpose of serving the national interest. t Moreover, no labor direct representation in Parlia ment was to be permitted any more, as all representatives were to be chosen by the Fascist General Convention attached to the ministry or department of labor. This plan completely dissolved the labor unions within the Italian new Corporate State, and next to follow was the Parliament Itself, which came to act as a union in itself with no power over the government of the day at all. The members came to be chosen, of course, by the government through these conventions, and so was the disappearance of the right of representation in Parliament. The failure of the fascist during World War II brought an end to this system and a new restoration of 11 4. ? liberalism in Industrial and labor relationship came to be redeveloped Inside the new post-war Italy. Labor Organizations Under Nazism in Germany It was as late as 1918 before the German government came to recognize officially the importance of labor unions. Before this date, unions were allowed to operate but were under a complete and watchful control by the administration, the attitude of which limited the activities of the labor unions, although it could not stop the expansion of member ship. Later, the attitude of the union shifted and started to pay more attention toward increasing the benefits for their members rather than the Increase of the membership. The Welmer constitution finally accepted and recog nized the liberties and privileges of unionized labor. More representations were allowed the workers in industrial councils. Further provisions were made to strengthen the methods of peaceful settlements of labor-management disputes. These arrangements were openly opposed by the leading industrial circles but nothing was changed until the National Socialist Party took over the government of Germany. The new order decided that each Individual or insti tution within Germany should lose its own Identity and be an active part within the new system. The labor code was soon 148 replaced In 1933 by a new code aiming at the fusion of all German labor unions after leaving all the communistic elements out. Another thing introduced was the limitation put on the usual activities of these organizations. Strikes became illegal in most cases. By the end of 1933, a new law was passed abolishing all employers' associations and replacing them with new organizations where the employer and the employee were represented. This settlement was completed by 1934. The pattern in the new labor-management relationship followed the same authoritative example applied in the political field of the new government. There was estab lished a hierarchy of authority starting with the workers upwards and ending with the special governmental department. The representative of the government in the industrial councils was given a large discretion and a vast authority in dealing with the work contracts, stoppage of the employers' policies or activities and some sort of labor legislation. With the abolition of the labor unions the right to bargain collectively was ended. Of the special features of the new arrangements during the Hatzi's reign was the development of the "Honor Courts" where each working person was to face if he was Xk9 accused of incompetency or inefficiency. The sanctions were to he different and could sometimes release an employer from the right and duty of running his factory. Such a job is held in the name of the public interest anyway. However, World War II brought an end to the Nazi regime. Organized Labor in Russia One of the striking features of the Russian labor movement before the revolution of 1917 was the relative insignificance of the trade unions. This, as Deutscher^ says, was partly due to the fact that Russian industry was still very young and that the mass of industrial workers consisted of recently proletarized peasants. A more Important reason was the fact that up to the beginning of this century trade union organization was as strictly prohibited and persecuted by Tsardom as was any form of political opposition. In suppressing trade unionism, Tsardom unwittingly encouraged revolutionary political organization. Only the most politically-minded workers, those prepared to pay for their conviction with prison and exile, could be willing to join trade unions in these circumstances. But those who were already so politically-minded were, naturally enough, Galenson, op. cit., p. k80. 150 more attracted by political organizations. The broader and more inert mass of workers, who were inclined to shun politics but would have readily joined trade unions, were not only prevented from forming unions but were also gradually accustomed to look for leadership to the clandes tine political parties. The Communists have long recognized, in theory and practice, that trade unions occupy a highly strategic position in modern industrial society, and have everywhere made Intense efforts to capture them for the purpose of advancing the political leadership of communism. When the soil was already prepared by the Tsardom, the Russian communists planted their seeds more easily, thereby driving the Russian labor unions in the shadow of the political movement. However, after the Communists took over the govern ment in Russia, the trade unions, designed to forge the workers’ solidarity in their struggle for better living conditions, have suffered complete atrophy. They probably were not suppressed but they were turned into instruments of State. Labor unions in U.S.S.R. “performed as subsidiaries of the State administration, not as autonomous social bodies or working class organizations in the accepted sense. 12 Ibid., p. 571. 151 The function of trade unions, in the eyes of the leaders of Soviet Russia, . . . is not to demand concessions from the State, but to act as public relations officers on behalf of the government. The business of trade unions is to explain government policy to the workers and get the necessary response from them.13 This issue was decided after a sharp struggle about the time of the introduction of the first five-year plan in 1928. After the chaos of the revolutions, the era of workers* control and the civil war, a measure of private enterprise had been re-introduced in 1921 to save the situation, and so long e-s this policy lasted trade unions could be given a role similar to that in capitalist countries. But with the ending of this policy and the beginning of the first five-year plan in 1928 labor unions have actually been working for the State as government bodies to control workers so that it becomes easier to direct them to accept the State's policies. II, THE RIGHT TO ORGANIZE IN THE UNITED STATES In view of the prominent position which the United States occupies among the nations of the world at the present time, and because of the availability of abundant **•3 Ivor Thomas, The Socialist Tragedy (New York: The Macmillan Company, 1951), P- 219* 152 materials on this subject, a more extensive study of the labor movement is presented here. One of the most difficult problems faced by labor organizations in the United States was that of their legal status. America's experience was not very different from that of England. In that country unions were banned both by common law and by statute law, but somehow they persisted. Finally, in 1824, they were made legal, but their activities were greatly limited for many years. t Before 1824, under the English common law, any combination of workmen to raise wages was a conspiracy in restraint of trade and against the public welfare. Hot only was this point of view the accepted common law in England, but it had been enacted into statute law several times by Parliament during the 1700*s. In the absence of statute law in America governing this point, the question arose as to whether or not the English common law applied in this country. Between 1806 and 1815 six conspiracy trials were held, four of which were decided against the workers. At that time associated action by working people in labor organizations was considered both wrong and illegal. In 1806 the members of a local society of cordwainers (shoemakers) were convicted of engaging in a criminal conspiracy when, through their organization, they 153 tried to get better wages. The verdict of the Jury was, MWe find the defendants guilty of a combination to raise their wages. The Court, in instructing the Jury, said: A combination of workmen to raise their wages may be considered a two-fold point of view: One is to benefit themselves . . . the other is to injure those who do not Join their society. The rule of law condemns both.15 As time went on, however, the courts shifted their attention from the point as to whether a union of workers was a conspiracy to the question of the means employed by labor to obtain their ends. The right of workers to Join unions was finally recognized in the famous decision of Commonwealth v. Hunt in 18^2. In this since celebrated case the Supreme Court of Massachusetts reversed a conviction for labor conspiracy. It reasoned that organizations of working people to raise their social condition or to improve their trade were quite proper. They were to be condemned only when the power of their combination was used for purposes of oppression and injustice. And, in such cases, the general purposes of the labor organization being proper, only those members or officers who were guilty of the abuses were punishable for William M. Lelserson, Eight and Wrong in Labor Relations (California: University of California Press, 1938), p. 22. ^ Loc. clt. 154 the wrongful acts. Following this decision, other courts generally took the same view, and for approximately a hundred years now the legality of labor organizations has not been questioned. Employers1 attitude toward labor organizations. — But for many years after 1842, strikes, boycotts, the closed shop, and other weapons used b^ labor were subjects of legal action. Workers actually did not enjoy a legal right to organize. Because all that the Court confirmed was that nothing wrong or criminal is done when working people associate themselves in labor organizations. Ho right was thereby created which employers were bound to respect, or which the law would protect against attack by private persons. The conspiracy doctrine still was used, and after about 1890 the labor injunction was used frequently to oppose effective unionism.46 In the late nineteenth century, employer associations were developed to discourage unionism. By the time of World War I, employers began to encourage the formation of company unions as a substitute for bona fide, independent trade unions. Meanwhile, the open shop philosophy was pushed. No one, it was maintained, should be required to belong to a •46 Lloyd Q-. Reynolds, Labor Economics and Labor Relations (New York: PrentieeTHall, Inc., 1954), p. 279- 155 union to get a job. After World War I the use of the labor injunction, the company union, and the open shop were combined with improvements in personnel policies, recrea tional programs, and the like into a somewhat more subtle attempt to combat Independent unions. The change was primarily in tactics and not in general philosophy. Of course, not all employers changed even their tactics. There was plenty of bloodshed on the picket lines even in the 1920*s and 1930's. The above suggests that the first reaction of employ ers and managers to unionization has been one of strong opposition.-*-?' From time to time and place to place it has shown itself in different forms. Hone of the tactics noted above is absent completely from the industrial scene today. While the laws of the land have, since the 1930's, restric ted the freedom of employers to deal with unions as they see fit, the exemption of some classes of employers from the application of legislation and the flouting of restrictions in some cases leaves considerable anti-union activity.1® 1? One author classifies management's reaction to unions as: forcible opposition, peaceful competition, defensive endurance, and positive acceptance. Reynolds, op. cit., p. 169- 18 por a number of views on employer reaction to unions see Bakke, E. Whight, and Kerr, Clark, Unions, Management and the Public (New York: Harcourt, Brace and Company, 19^8), Chapter 9* 156 However, there can he no question hut that the opposition to unionism gradually Is decreasing. In many plants and, in some cases, almost on an Industry-wide basis unionism and collective bargaining have been accepted. Generally speaking, there has been least acceptance of unionism in the southeastern part of the nation and the rural areas in the middle west. Occupationally, there has been least acceptance in agriculture, clerical, and professional work, and in retail and wholesale trade. Table II1^ shows the extent of unionization in various Industries. The acceptance in various occupations can be seen from an examination of these data. It should not be assumed that In all Instances the industries showing the greatest degree of unionization have accepted the idea readily. In most cases it has been forced on management, and in many instances it is preserved only by continual vigilance. The bituminous coal mining industry is an example. While unionization is almost complete in coverage, there is no Indication of a willing acceptance of collective bargaining. It seems to be continued under the most strained circumstances. On the other hand, there are industries in which the Glenn W. Miller, Problems of Labor (New York: The Macmillan Company, 1951)» P* 87. TABLE II PROPORTION OF WAGE EARNERS UNDER UNION AGREEMENTS IN JANUARYi 19^5 MANUFACTURING INDUSTRIES 80-100 per cent 60-80 per cent A0-60 per cent Agricultural equipment Aircraft and parts Alumlnun Automobiles and parts Breweries Carpets and rugs, wool Cement Clocks and watches Clothing, men*s Furs and fur garments Glass and glassware Leather tanning Meat packing Newspapers Nonferrous metals and products Rubber products Shipbuilding Steel, basic Sugar, beet and cane Book and job printing and publishing Coal products Electrical machinery, equipsent and appliances Machinery and machine Tools Millinery and hats Paper and pulp Petroleum refining Railroad equipment Rayon yarn Steel products Woolen and worsted textiles Baking Canning and preserving foods Dyeing and finishing textiles Flour and other grain products Furniture Gloves, leather and cloth Hosiery Jewelry and silverware Knit goods Leather luggage, hand bags, novelties Lumber Pottery, including chinaware Shoes, cut stock and findings Stone and clay products H - nJ TABLE II (Continued) PROPORTION OF WAGE EARNERS UNDER UNION AGREEMENTS IN JANUARY, 1945 MANUFACTURING INDUSTRIES 20-40 per cent 1-20 per cent Beverages, nonalcoholic Chemicals, excluding rayon yarn Confectionary products Cotton textiles Paper products Silks and rayon textiles Dairy products NONMANUFACTURING' INDUSTRIES 80-100 per cent 60-80 per cent 40-60 per cent Actors and musicians Airline pilots and mechanics Bus and streetcar, local Coal mining Construction Radio technicians Bus lines, intercity Theater-stage hands, motion Light and power picture operators Newspaper offices Telephone service and maintenance ;Longshoring ‘ Maritime ■Metal mining 158 TABLE II (Continued) PROPORTION OF WAGE EARNERS UNDER UNION AGREEMENTS IN JANUARY, 1945 NONMANUFACTURING INDUSTRIES 80-100 per cent 60-80 per cent 40-60 per cent iMotlon-plcture production Rallroads-freight and passen gers, shops and clerical Telegraph service and maintenance Trucking, local and intercity 20-40 per cent 1—20 per cent Barber shops Building servicing and maintenance Cleaning and dyeing Crude petroleum and natural gas Fishing Hotels and restaurants Nonmetallic mining and quarrying Taxicabs Agriculture Beauty shops Clerical and professional, excluding transportation, communication, theaters, and newspapers Retail and wholesale trade \ 159 160 union and Its actions have become an accepted part of the operation of the business. The manufacture of clothing, both men's and women's, is a case In point. While the original organization efforts were most difficult, the current picture is one of highly successful, and generally accepted, collective bargaining.20 Between these extremes there are all gradations of acceptance or non-acceptance of unionism and collective bargaining. It is clear without any discussion that the attitude of unions toward collective bargaining is one of insistence that management recognize the right of unions to organize and deal with the union. The foregoing discussion of the attitude of management indicates that the traditional reaction has been sharply in conflict with the motivations underlying unions. Since one of the important tasks of the government has been to set rules to govern the relationships between labor and management where they are unable to agree, the right to organize has been an important area of govern ment control. Because of the sharp conflicts that arose over the right to organize and of a philosophy of government first 20 For an example of industrial relations in men's clothing see "Case Studies in Industrial Peace: Men's Clothing Industry," Monthly Labor Review, Vol. 68, No. 5» iMay, 19^9t p- 5^2. 161 shown clearly in the second quarter of the twentieth century, the federal Congress and state legislatures began to enact enabling legislation. By this it was sought to encourage workers to organize and to make sure that employers did not interfere seriously with the right to form labor unions. Actually, such a development was a marked change in policy for government since, during the most of the United States history, unions had been openly opposed or at best tolerated. G-overnment attitude toward labor organizations before 1935. — The attitude of government, federal and state, toward the right to organize has shifted consiberably over a period of time. This position has been shown through the actions of judges, legislators, and executives. Tradition ally it has been one of opposition or at best a reluctant toleration*. Changes, especially in the second quarter of the twentieth century have been quite significant, however. Much of the opposition that has been shown in the past came without the benefit of written law. The use of employers of the conspiracy doctrine and labor injunctions already has been noted. But these tools could not have been utilized if the judiciary had not been willing. Employers could only ask for the issuance of an injunction; it was up to the judge to decide whether such a writ was defensible. 162 It Is Interesting to note than an injunction was issued in a labor dispute in England before there is any record of such a writ in the United States.^ In fact, the English case in which an injunction was Issued is thought of as a precedent for Injunction in labor disputes in the United States. But the labor injunction was left almost unused In England. In the United States, it has been estimated that nearly two thousand injunctions had been issued In labor disputes by 1930.22 The difference In the use of the injunctive weapon in the two countries probably arises in good part from the difference In the attitude of judges toward the right to organize. Many of the injunctive writs issued could have come only from a person not basically friendly toward labor organizations. A study of labor Injunctions Issued in Ohio during certain years indicated that the 1 1 injunction itself is rarely written by the judges.w23 It was found that the writs were likely to be prepared by attorneys for the ^ Florence Petterson, Survey of Labor Economics (Hew York: Harper and Brothers, 1947)» p* 395- 22 1 M - * P* 597- See also: E. E. Witte, The Government in Labor Disputes (New York: McGraw-Hill Book Company, 1932), p. 84. 23 Robert E. Mathews, and others, “Survey of Ohio Practice in Issuance of Labor Injunction,w Ohio State University Law Journal, Vol. 5> No. 3> June, 1939» p« 294. 163 employer, that is, plaintiff.2** The investigation showed, in one court or another, prohibition of the following actions: public assembly, persuasion to join a union, peace ful picketing or giving any publicity to a dispute. Many other actions also were forbidden.2-5 At times injunctions have prohibited black looks or required that pickets be citizens and able to speak English. Many more examples, could be cited, but space will not permit. It is clear, however, that injunctions often made it most difficult for a union to operate effectively if it obeyed the orders frequently issued by the courts. The unfriendliness of the courts was shown in other ways as well. Many times cases have been taken into the courts, perhaps carried to the Supreme Court, concerning the interpretation of a law or the validity of a piece of legis lation, or, perhaps, the soundness of the ruling of a lower court. In the first quarter of the twentieth century, for example, the Supreme Court held Invalid laws that were intended to prohibit the use of yellow—dog contracts.2^ Essentially, such contracts, which some employers required Reynolds, op. cit. , p. 280. 25 Petterson, op. cit., p. 597* 26 Ibid., p. 59^. 16^ workers to sign, stated that the worker was not a union member and would not become one while hired by the employer demanding the contract.If* the worker became a union member, he forfeited, automatically, his right to the Job. The Supreme Court held that to deny to employers the right to use such contracts was to take from them liberties that were guaranteed. In addition, it was held that workers should be free to take a job subject to a yellow-dog contract if they chose. During the same period the High Bench interpreted the anti-trust laws, the Sherman Act of 1890 and the Clayton Act of 191^, in a number of cases.28 In a series of decisions stretching over a quarter of a century, the anti-trust laws were held to prohibit many of the more effective coercive activities of organized labor.^9 A strike or boycott engaged in by a union, if it proved effective in stopping production or distribution was held to be a violation of the anti—trust laws and to lay the union open for Injunctive Loc. cit. 28 por a discussion see: Glenn W. Miller, American Labor and the Government (New York: Prentice-Hall, Inc., 1 9 W }', Chapter VII. Pearce Davis, and Gerald J. Matchett, Modern Labor Economics (New York: The Bonald Press Company, 195k), p. 312. See also: Petterson, op. cit., pp. 590—592. 165 proceedings or to a suit for d a m a g e s .30 This arose from the fact that the union action stopped or interfered with the flow of goods in interstate commerce.31 It cannot he denied that union actions can Influence or stop the movement of goods. In that sense, the court decisions were based on sound grounds. But the important question seems to be whether all groups were treated in a like manner. Justice Brandeis pointed up this issue in a dissenting opinion in the Bedford Gut Stone Company case. His statement is in part as follows: The Sherman Law was held . . . to permit capitalists to combine in a single corporation 50 per cent of the steel industry of the United States . . . and to permit capitalists to combine in another corporation practically the whole shoe machinery Industry of the country, necessarily giving It a position of dominance over shoe manufacturing in America. It would, indeed, be strange if Congress had by the same Act willed to deny to members of a small craft of workingmen the right to co-operate in simply refraining from work, when the course was the only means of self—protection. . . . I cannot believe Congress did so.32 Thus the decisions of the Supreme Court on the 3® Orme W. Phelps, Introduction to Labor Economics (New York: McGraw-Hill Book Company, Inc., 1950), p. 290. See also: Gorden F. Bloom and Herbert R. Northrup, Economics of Labor and Industrial Relations (Philadelphia: The Blackston Company, 1950), p. 3^* Also: Petterson, op. cit., p. 592. rbid., p. 593* See also: Davis and Matchett, op. cit., p. 312. 32 Miller, oj^. cit., p. ^39- 166 effect of the anti-trust laws on organized labor are eriti- cizable on the basis of the double standard used. If monopoly or oligopoly in business enterprise were allowed to develop while unions were restricted in their actions, it seems to point to the attitude suggested above— a general unfriendliness toward organized labor. During this time, when the courts were doing so much to limit the actions of unions, there was very little positive action taken by the legislators. Except for one piece of legislation applicable to railroad workers, the federal Congress stayed clear of the field.33 When state bodies attempted friendly laws, such as the Kansas ant i- yellow-dog statute, they were likely to run afoul of the courts.3^ Thus the policy of the government was essentially spoken by the courts; and it was basically unfriendly.35 Gradually the attitude of the government, federal and state, began to change slightly. While there were fore runners of the action of the Hew Deal period, the major shifts to be noted came at that time. 33 Davis and Matchett, op. cit., p. 317* See also: Petterson, op. cit., p. 600. 3^ Ibid., p. 59*K 3-5 Ibid. , p. 599- See also: Bloom and Northrup, op. cit.., p. 6o4. 167 Morris-La G-uardta anti-injunctlon act. — The first of a number of pieces of legislation to be noted is the Morris La Cuardia Act of 1932. This federal enactment, a precursor of New Deal measures soon to be put into effect, was not entirely a pioneering venture. The state of Arizona had enacted an anti-injunction statute in 1913* Like the Kansas yellow-dog statute, it failed to pass the scrutiny of the Supreme Court,36 but at least the attempt created a precedent. Shortly before the Norris Act, Wisconsin enacted a similar law. In 1932 the federal Congress enacted the anti- injunction statute. It is important in part for its attempt to limit the issuance by federal courts of injunctions in labor disputes. These provisions were important and will be noted later. The enactment was important, also, because of the statement of policy made therein. This was a clear and sharp break with traditional policy and merits partial quotation. The policy statement read: Whereas under prevailing economic conditions, developed with the aid of governmental authority for owners of property to organize in the corporate and other forms of ownership association, the individual unorganized worker is commonly helpless to exercise actual liberty of contract and to protect his freedom of labor, and thereby to obtain acceptable terms and 36 Ibid., p. 611. 168 conditions of employment. . . . Though he should be free to decline to associate with his fellows, it is necessary that he have full freedom of association, self-organization, and designation of representatives of his own choosing, to negotiate the terms and conditions of employment, and that he shall be free from interference, restraint, or coercion . . . in the designation of such representatives or in self organization. . . .37 With such a stated policy, it was clear that the provisions of the law would be aimed at a more effective opportunity for workers to organize in Independent unions. The practice which Congress aimed at was the abusive issuance of injunctions in labor disputes. The law, of course, applied only to federal courts. Similar restric tions on state courts had to come from appropriate legisla tures. Congress did not entirely prohibit federal courts from issuing labor injunctions, but it did provide that they could not be issued to forbid certain actions whleh were basic to effective union action. The law stipulated that injunctions could not be issued to enforce yellow-dog contracts as had been done at earlier ti m e s .38 in addition, court orders could not be used to discourage workers from joining a union, from 3? Petterson, op. cit., p. 600. 3® Reynolds, op. cit., p. 283. See also: Bloom and Northrup, op. cit., p. 609* 169 striking, or from paying strike benefits.39 Farther, persons were not to be enjoined from picketing or otherwise giving publicity to a strike (peacefully), assembling peacefully, agreeing with others to do any of the above acts, or urging other persons to do any of the above, as long as the urging was done without fraud or violence.^ In essence, injunctions were not to be issued from federal courts if the writs would serve to restrict or discourage the effective, peaceful actions of a labor organization engaged in collective bargaining and the strikes that some times seem Inescapable to give force to demands that have been made. The prohibitions in the law were not pulled out of thin air. They were written with an eye to past use of the Injunction in labor disputes. They give a brief summary of the many earlier abuses of the injunction In such disputes. One other point of the law remains to be noted. The measure was to deal with injunctions used in labor disputes; there fore it was necessary to define a labor dispute. In the past some courts had held that no labor dispute existed when a union and an employer were involved and the union had not 39 Petterson, op. cit., p. 601. Bloom and No rt hr up, op. cit., pp. 6ll~*6l2. 170 organized the workers in the establishment. Under the new law* this concept was broadened markedly. The term labor dispute Includes any controversy concerning terms or condi tions of employment, or concerning the association or representation of persons in negotiating, fixing, maintain ing, changing, or seeking to arrange terms or conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employer and enployee.^ This definition recognized the fact that unions may often bargain through officials who are not employees of the company. The basic definition was carried into subsequent pieces of legislation. An act breaking so sharply with past practices naturally would be tested in the courts. Some of the Issues, especially that of the breadth of a labor dispute, were relatively knotty. The ruling of the Supreme Court i came in 1938 in the case of Lauf V. E. C. Shlnner and Company, Inc.^2 The question of general validity was dis posed of quickly by the majority of the Court. In its opinion there was no question as to the ability of the Congress to define or limit the Jurisdiction of the lower ^ Petf terson, loc. cit. ^2 Miller, op. cit., p. 171 courts. In addition, the Court upheld the right of a union to picket an establishment in which they had no members. Subsequent decisions confirmed this general attitude. The Norris Act was not a guarantee of the right to organize, but it was a highly desirable law. It did much to eliminate the unjust issuance of labor injunctions by federal courts.^ It also encouraged some of the states to pass similar laws regulating their own courts.*^ By 19^7 sixteen states had laws similar to the federal enactment. The general result was a long step toward restoring the labor Injunction to its proper place, that is, an extra ordinary court order issued to prevent irreparable damage to property when there is no adequate remedy at law. The National Industrial Recovery Act. — Respite the Norris Act, those who wanted equalization of bargaining power saw a need for a more positive support of the right of workers to organize for collective bargaining. The stage was set for such an attempt in the national election in November, 1932. In that election Franklin D. Roosevelt was ! chosen President and a predominantly Democratic Congress ^3 m . J. Segal, The Norrls-La Guardia Act and the Courts (Washington, D.C.: American Council on Public Affairs, 19^2). See also: Petterson, op. cit., p. 601. Also: Reynolds, ©£. cit., p. 283* ^ Loc. cit. 172 elected as well. The seriousness of the depression con vinced the new administration that bold experimentation was needed. One type of development that was thought desirable was a larger and stronger labor movement.^5 Among other things, such a movement would assist workers to get higher wages and thus, so the reasoning ran, buy more goods, creating more demand for workers.^ As a result of this thinking, the National Industrial Recovery Act, when enacted, provided in Section 7 (a) that all codes of fair competition for various industries must contain a guarantee that all workers covered by the code would have full freedom to organize and bargain collec tively.^ The same section prohibited any requirement that a worker join a company union in order to get a job. Secondly, he was hot to be required to refrain from joining a union or helping to organize one.**® Since these stated rights,were relatively newly guaranteed and broke sharply with tradition, it became clear that there would have to be some provision made for ^ Phelps, op. cit., p. 318. ^8 Reynolds, op. cit., p. 282. W Section 7'(a), NIRA, Stat. 195. 1933. See also: Petterson, op. cit,., p. 602. ^ Loc. cit. 173 administering the enactment. In August, 1933* President Roosevelt established a National Labor Board composed of three employer and three employee representatives with an impartial chairman, Senator Robert Wagner of New York, representing the public. The new board was to establish rules and regulations and a field organization necessary to administer Section 7 (a). The board was not a successful venture.^ It had no effective power of enforcement. It was essentially a body to seek the voluntary cooperation of employers. In many cases this was not forthcoming. In addition, the naming of widely known but very busy persons to the board, such as John L. Lewis and William G-reen, did not serve to create an effective body. It was clear that changes were needed. Meanwhile, Senator Wagner, chairman of the board, was learning by experience. In view of the fact that he was to author a succeeding piece of legislation in this field, the information he was gathering was to stand him in good stead. In June, 193^* a National Labor Relations Board was created to replace the National Labor Board. The new body was made up entirely of persons representing the public; there were three men on the national body. This board was ^ Reynolds, op. cit., p. 285- 17k to perform essentially the same functions as Its predeces sor; it took over the field organization that already had been created. In good part It was to try to settle disputes arising out of allegations that Section 7 (a) had been violated.-5° In addition, it had the new task of determining the appropriate units for collective bargaining. The problem involved on this point was whether one craft, an entire plant, perhaps all plants in one area or company or even an entire industry were an appropriate unit in which to carry on collective bargaining. In addition, when some dispute arose, it was necessary at times to determine the union that was the proper one to bargain in the bargaining unit designated. The new board, like its predecessor, lacked in enforcement power. Its activities were weakened by this fact. Had it continued to function, It seems likely that some enforcement authority would have had to be conferred upon it. However, this problem was never met since the Supreme Court declared, early in 1935» that the National Industrial Recovery Act exceeded the powers of Congress and thus was invalid.The board ended its activities in Petterson, op. cit., p. 602. Loc. cit. 175 July, 1935* It and its predecessor had settled many labor disputes, reportedly over seventeen hundred of. them. Some experience had been gained as to how to administer a measure such as 7 (a). This was worth while since a new enactment replaced Section 7 (&) very shortly after the court ruling. Probably the greatest weakness of all was the lack of power to enforce any decision. This problem was not met entirely in the new law. The National Labor Relations Act. — President Roosevelt was not easily distracted from the pursuit of a certain goal. He and his advisors seemed convinced that some sort of Independent unions among workers was highly desirable. As a result, a new guarantee of the right to organize was enacted shortly after the Supreme Court declared the NIRA unconstitutional. Early In July, 1935* the National Labor Relations Act, the Wagner Act, was p a s s e d . -52 fhis law essentially restated the defunct Section 7 (a), spelled out in some detail a number of actions which employers could not engage in, and established an adminis trative body to apply the law.53 The enactment was based, as are many federal labor 52 Ibid., p. 603. 53 Davis and Marchett, op. cit., p. 319* 176 controls, on the power of Congress to regulate and keep open the channels of Interstate commerce. Of course the businesses which employed most persons who were guaranteed the right to organize were within one state. In a sense, therefore, the Congress sought to control certain labor policies that were laid down and carried out within one state. How, then, could the interstate commerce power apply? In Its statement of findings and policy, Congress gave the following explanation. Disputes over the right to organize may lead to work stoppages that will stop the move ment of goods across state lines. In addition, if workers are In a much weaker bargaining position than employers, wages will be depressed. Union organization will tend to discourage or prevent the reduction of wages. It was the opinion of the Congress that “protection by law of the right of employees to organize and bargain collectively safeguards . . . and promotes the flow of commerce.5^ Q n the basis of the above conclusion, Congress declared Its policy to be that of removing potential obstructions to the free flow of commerce by protecting the worker's right to organize and bargain collectively. ^ Miller, op. cit,., p* kkk. 177 The gist of the guarantee of the right to organize was found in Sections 7 and 8 of the law. According to Section 7, Employees shall have the right of self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purposes of collective bargaining or other mutual aid protection.55 The following section dealt with certain practices that employers had used previously in attempts to prevent Independent unionism among their workers. Five of these actions were listed as unfair labor practices that were prohibited to employers. These were:-5^ (l) to Interfere with or otherwise influence workers who wished to Join an independent union; (2) to try to interfere with or control a union among employees (aimed at company unions); (3) to discriminate against an employee because of membership or non-membership in a union (subject to a proviso to be noted below); (*0 to discriminate against or discharge an employee for filing charges or giving testimony under the act; and (5) to refuse to bargain collectively with representatives of an independent (non-company-dominated) union. ^ Petterson, op. cit., p. 603- 56 Loc. cit. See also: Davis and Hatchett, op. cit., p. 319. 178 The third unfair practice merits some clarification. The prohibition of discrimination*was not absolute. If the employer had signed with a non-company-domlnated union an agreement that provided for a union or closed shop, he could refuse employment to a non-union person without violation of the law. This provision was aimed at discrimination against members of independent unions and practices that would require workers to join employer controlled unions. These guarantees did not extend to all workers. As indicated previously, the enactment was based on the interstate commerce power. Thus the law extended only to employers and employees engaged in interstate commerce or industries affecting commerce.Employees of federal, state, or local government were excluded as were persons subject to the Railway Labor Act and those engaged in agriculture.-58 in addition, domestic workers and others engaged in clearly interstate activities were beyond the provisions of the law.-59 If such a measure were to mean anything, it was clear from experience under the NBA that some sort of ■5? Petterson, op. cit., p. 60k. Loc. cit. Loo, cit. 179 administrative agency would have to be created. And it was clear that this body needed some manner of enforcing its rulings when voluntary methods failed. Consequently, the new enactment created a three-man National Labor Relations Board with all persons being representatives of the public.6° The new body was similar to that created in 193^ and it took over the field organization, property, records, and so forth, that had been those of its predecessor. The board had two major types of problems to handle. Actually, most of the work was done through the field organization, with the national panel acting as the top administrative agency and a sort of court of last resort to pass on issues that might be appealed from the lower echelons of the organization. One type of issue which had to be handled was the complaints of unfair labor practices committed in violation of the provisions cited above.6l The other broad type of problem was the determination of approp riate bargaining units and the union to represent workers in collective b a r g a i n i n g .62 Often disputes arose over whether * P» 603* See also: Joseph Shlster, editor, Readings in Labor Economics and Industrial Relations (Chicago: J. B. Llppincott Company, 1950), p. 435* 61 Davis and Matehett, op. cit., p. 321. See also: Petterson, op. cit., p. 603. 62 Loc. cit. 180 or not an unfair labor practice had been committed or over the area to be covered in a bargaining agreement and the union to be recognized for bargaining. These were the only disputes open to the board. A controversy over wages or hours, for example, could not be brought before the agency. There could be exceptions to this general statement if wages or hours or other conditions of work were being manipulated so as to discriminate against union members or potential members. The functioning of the board and its field organiza tion need not be examined in detail, but some knowledge of procedures is important. Action on an unfair practice case i began with a charge or complaint filed in the appropriate regional offlee.^3 The functioning of the law began with a field examiner from the regional office gathering informa tion from written materials filed with the office and from personal Investigation. Once this was completed, the case could be disposed of by withdrawal, dismissal by the regional office, or by an agreed settlement whereby the employer stopped practices in violation of the labor relations act. Up to mid-19^6, over nine-tenths of all cases were withdrawn or settled Informally. Informal, 63 Shister, loc. cit. 181 agreed settlements were thought to be the most desirable. If the investigation showed merit in the charges and no agreed settlement could be reached, a formal complaint was Issued. After certain procedures specified in the law were observed, a hearing was held, presided over by a trial examiner from the Washington offlee.6^ This hearing was similar in general conduct to a court proceeding. The report of the hearing and the recommended settlement of the trial examiner were subject to review by the national board. At this stage, as well as earlier ones, either party could present materials and argue the merit of its position in the case.65 There was no compulsion to reach a settlement or accept the finding or recommendation of the board or its agents. If the national body found that there was an unfair labor practice, It Issued a cease and desist order.66 if the order were not observed,.the board could ask the appropriate Circuit Court of Appeals to direct that the order be observed.6? If the employer refused, he was i-2£* olt. 65 hoc, cit. 66 hoc. clt*i ^ cit. 182 subject to punishment for contempt of court.63 Here the first genuine compulsion entered the case. Either party had the right of appeal to the Supreme Court. There was little compulsion to the law other than the appeal to the courts; however, those who willfully prevented or interfered with the work of the board or its agents could be fined up to five thousand dollars or Imprisoned up to one year, or both. Such, in a highly simplified form, was the action of the board in unfair labor practice cases. Even though the action was done outside the specific provisions of the law, the bulk of the activity was an Informal mediation of disputes that arose over the right to organize. Even with the marked lack of compulsion in the law, it aroused much opposition. Of this, more later in this chapter. The determination of bargaining units and represen tatives was another field of action for the board and its agents. This function was made much more complex than it otherwise would have been by the split of the CIO and the AF of L late in 1935* ^he competition of the two federa tions caused the board to be faced many times with the making of decisions that could be of great benefit or h a m , to one or the other group. Loo, cit. 183 These cases, like the unfair labor practice cases, arose out of requests made to the board; it could not act on its own accord. Such issues were basic if the government were to guarantee the right of unionization. There were a number of possible bargaining units and unions. The narrowest or most restricted unit was a craft group in one plant; the widest, an industry-wide coverage of all plant© producing some good. Between these extremes lay craft organization among more employers than one, an industrial type organization in one plant or a group of plants or some other unit. Often CIO and AF of L units might wish quite different bargaining units and, of course, the designation of their union as the appropriate one for bargaining. Despite the intensity of the competition between unions, the agents of the board had to rule, in many instances, on representation issues. In fact, in its first ten years of operation it acted in about thirty-eight thousand representation cases as compared with thirty-six thousand centering on unfair labor practices.69 In desig nating the appropriate bargaining unit, the board*s agents considered factors such as the f o l l o w i n g :70 ^ e history and 69 Miller, op. cit., p. **4?. 70 Shister, op. cit., p. 437* 184 type of organization among the employees; the history and type of bargaining in other plants in the Industry or of the same employer; the skill of the workers, and other relevant matters. In designating the appropriate unit the board was to “consider the grouping of employees most effective for the purposes of collective b a r g a i n i n g .“71 in ^ords of the Act, the determination of the board could be “the employer unit craft unit, plant unit, or subdivision there of. “72 All types of designation were made many times. Once the appropriate unit was determined, the proper « bargaining representatives were not so much of a problem. The basic job of the board was to determine what union, if any, the workers in a certain bargaining unit wished to represent them. It could be done by checking union member ship against the employer*s payroll, or by an election. The election could be one agreed to by the employer or one ordered, after hearing, by the board. The NLRA was a sweeping and significant piece of legislation that imposed controls such as we had never before seen in the United States. Many persons were of the opinion that it exceeded the legislative powers of the 71 Miller, loc. cit. 72 Loc. cit. 185 Congress. It was subjected to Judicial scrutiny as soon as a ease could be carried to the Supreme Court. The Supreme Court ruled on five cases, questioning the validity of the NLRA at the same time.73 Of these cases, probably the Jones and Laughlin Steel Company case was the most important.7^ After the extended procedure of investigation and hearing outlined above, the NLRB had ordered the company to cease and desist from anti-union practices.75 in addition, the company was ordered to rein state with back pay ten men who had been dismissed, in the opinion of the board, because of union activity.76 The company refused to obey the directive of the board.77 All that was left for the board to do was to ask the Circuit Court of Appeals to order the observance of the order. The court refused to do this, maintaining that manufacturing was not a part of Interstate commerce and therefore the company was not subject to congressional control.78 Since the future of the act depended on the ^ Loc. cit. 7^ Phelps, op. cit., p. 32?. 75 Loc. cit. 76 Loc. cit,. ^ Loc. cit. Loc. cit. 186 enforcement of this order, the board appealed to the Supreme Court.79 While certain minor issues were at stake, the most important matter was whether manufacturing or other business activities carried on within the boundaries of one state properly were subject to federal regulation. By the narrow est possible margin, a five-to-four decision, the Court ruled in favor of the board.The majority recognized that Congress could not push its controls so far as to destroy the distinction between interstate commerce and the internal affairs of the state. However, those in the majority did not think that the act in question had that effect. In addition, they pointed out that activities within an inter state business enterprise could affect significantly the movement of goods between the states. Their general concept on this point can be illus trated by comparing manufacturing activity to a throat or bottleneck. Raw materials, for steel let us say, are extracted in various states or even foreign nations— they move in Interstate commerce to a factory or mill in which they are combined and made into some new product. From the 7 9 Loo* cit* Loc. cit. 187 factory they move on, perhaps across state lines, and eventually find their way to consumers. In this sort of a situation, the factory is a sort of bottleneck through which goods must flow in their movement from the raw material extractor to the consumer. It is clear that activity, or inactivity, that serves to stop the movement of goods through the factory or mill will eventually stop the flow of goods in interstate commerce. Disputes and work stoppages over the right of workers to organize could bring such movement to a halt. As the majority of the court saw the problem, Although activities may be interstate in character when separately considered, if they have such a close and substantial relation to interstate commerce that their control is essential . . . to protect that commerce from burdens and obstructions, Congress cannot be denied the power to exercise that control.81 Discussing this point further it was said: . . . Instead of being beyond the pale, we think that it presents in a most striking way the close and intimate relation which a manufacturing Industry may have to Interstate commerce and we have no doubt that Congress had constitutional authority to safeguard the right of . . . employees to self organization and . . . collec tive bargaining.82 The same basic reasoning was used by the majority of the Court in the Fruehauf Trailer and Friedman-Harry Marks 81 Miller, op. cit., p. 448. 82 Loc. cit. 188 Clothing Company cases. In both instances, the litigation arose out of the refusal of the companies involved to obey a cease and desist order of the board. There was some difference in the size and organization of the firms involved. However, neither the majority nor the minority distinguished sharply in the cases. In fact, the minority wrote only one dissent which was an attack- on all three of the majority decisions named above. The essence of the dissent centered around the contention of the minority that the act in question placed in the hands of the board Mcontrol over purely local Industry beyond anything heretofore deemed possible.To the minority the idea that manufacturing was a sort of bottleneck through which goods moved while really in the intermittent flow of commerce was not compelling. In addition, the minority argued that the guarantee of the right to organize took away fundamental rights to make free contracts regarding the conditions under which services are bought and sold. WA private owner Is deprived of power to manage his property by freely selecting those to whom his manufacturing operations are to be entrusted.**®^ 83 Ibid., p. W * Loo, cit. 189 Thus, among sharply conflicting points of view the National Labor Relations Act passed its Supreme Court test. In the opinion of the writer, the majority offered the sounder reasoning. There were many instances in which Congress had controlled business activities that took place within one state. The anti-trust laws forbidding business combination in restraint of trade is an example. And there can be no doubt but that work stoppages in a manufacturing plant can affect the movement of goods across state lines. The argument that the enactment took away freedom of contract is not a convincing one. Many employers were willing to deal with unions so that their desires were not being flouted. For those who were unwilling to deal with a union, their desires could not be followed without depriving their workers who might wish to organize of their right to do so. A fourth case, the Associated Press case, introduced one new issue. That was whether the constitutional assur ance of freedom of press allowed a news distributing agency to select employees, in part at least, on the basis of their union activities. Specifically, could the A.P. dismiss a 3 1 an who was active in the newly formed Newspaper Guild. The five-man majority did not think that the freedom of press argument excused the A.P. from the application of the law 190 and therefore held it to be subject thereto. The Gases referred to earlier had established the general validity of the act so that was not a basic issue. The essence of the four-man dissenting minority was that freedom of the press was being violated by the application of the HLRA in this instance. The last of the five cases offered no new problems. Unless the entire act was unconstitutional this case could not have been decided in favor of the company. The Washington, Virginia, and Maryland Coach Company clearly was engaged in interstate commerce. Their only contention was that the whole law was invalid. This was the only one of the five original test cases that was decided without a dissent. Once the validity of the law was established and it became a more effective regulation, its effects grew. While it is not possible to separate its effects from other social and economic forces working at the same time, certain con clusions concerning its effects seem defensible. Let us look at the effects of the law prior to its extensive revision by the Taft-Hartley Act in June, 19^7* There can be little doubt that the Wagner Act did much to encourage the growth of unions. The number of union 191 members tripled during the years of the NLRA.85 Of course the split of the CIO from the AF of L, and the dynamism and drive injected into the labor movement thereby, promoted growth. Economic recovery, rising prices, and increased employment were encouraging factors. 86 But union growth probably would not have come as rapidly without favorable legislation. The Wagner Act made organized labor much more recep tive toward government controls. The CIO, especially, is and has been an opportunistic organization, and it has been much inclined to rely on governmental backing or aid In its attempts to organize. In the early years of the act, at least, the decisions of the board on appropriate bargaining units tended to favor industrial type unions. That tendency shifted even before the Taft-Hartley Act. Politically, the act and other pieces of New Deal legislation have brought organized labor largely into the Democratic camp. Whatever political influence organized labor has is thrown in a heavy majority of cases behind Democrats.87 This has not caused them to back most persons Phelps, op. clt., pp. 321-335* See also: Reynolds, op. oit., p. 284. ^ LojC. clt. 87 phelps, oj>. cit., p. 343 * 192 of that party coming from the southeastern part of the nation. Organized labor insists that it is not partisan in politics. However, the record shows clearly that they have been much closer to the platform and thinking of the Democrats rather than of the Republicans. One other result seems clear, but is contrary to the assumption of many persons. Probably the NLRA. helped to reduce the amount of labor unrest compared to what it might have been without such legislation. Undoubtedly union size and strength grew because of the Wagner Act. As unions develop and become well established and.enter into bargain ing, the likelihood of serious labor trouble will grow less. When agreements are reached and put into writing, both parties understand more clearly what their rights and responsibilities are. Publicity given to work stoppages would imply that unionization tends to create trouble. That implication cannot be generally proved, although individual instances may be cited. Perhaps, shortly after organiza tion, there may be more overt disputes; but there is likely to be less hidden dissatisfaction. The record of the type of cases handled by the board throws some light on the greater willingness to bargain that developed. In 1936, unfair labor practices accounted for 81 per cent of all cases filed; by 19^5 they comprised only 193 24.9 per cent. Representation cases, on the other hand, comprised 19 per cent of the 193& cases and 75-1 per cent of those handled in 1945*®® This seems to indicate a marked shift in the ■willingness of employers to try to fight unions. More and more the question turned to one of getting the appropriate bargaining unit and union designated. The right to organize since the Wagner Act. — Government attitude toward the right of workers to organize v has not changed significantly since the enactment of the Wagner Act.®9 Federal policy and that of the states having legislation on this issue is that workers have the right to organize and employers may not interfere with this right.90 There has been a significant change, however, in federal and state attitudes toward the actions that may be undertaken once workers are organized. In other words, there is considerable regulation of what may be done in collective bargaining.91 It was noted that the legislature seemed to assume in the Wagner Act, and a few state counterparts, that union ®® Ibid., p . 451* ®9 Harold W. Davey, Contemporary Collective Bargain ing (New York: Prentice-Hall, Inc., 1952), pp* 10-11. loo* clt. 91 Loc. cit. 194 action would be satisfactory once organization was assured. However, as unions grew in membership and strength and many bitter disputes arose, organized labor showed at times less industrial statesmanship than might have been desired. Certainly this was not less than was displayed by management in many cases. However, the relative newness of powerful and dynamic labor organizations caused many persons to doubt them. A conclusion seemed to grow among lawmakers that unions should be subjected to some controls over their internal activities and their bargaining with employers. This legislative attitude began to show itself first in state labor relations laws late in the 1930*s.92 These laws (those of Wisconsin, Minnesota, and Michigan are examples)93 are reported to have come in good part from the urging of rural and small town g r o u p s .94 nature of these laws will not be noted in this study, since each law is restricted to its own state boundaries. However, they are, in general, rather similar to the Taft-Hartley law. This enactment, because of its much broader coverage, will be noted. 92 pavis and Matchett, op. clt., p. 324. 93 Reynolds, op. clt., p. 287. 94 Hiller, o£. clt., p. 467- 195 Tiie Taft-Hartley law. — It will be remembered that the Wagner Act of 1935 was based on the assumption that collective bargaining would develop satisfactorily If workers were ensured the right to organize.95 However, the behavior of some unions that developed at that time raised considerable question on this score. The attitude of many legislators and much of the public was that union leaders often did not bargain collectively in good faith. The great wave of work stoppages in 19^6, and especially the actions of the soft coal miners, contributed much to this point of view.96 Thus, an entirely new section was added in the Taft-Hartley law, specifying unfair labor practices of unions. This section aimed several restrictions at the practices in which unions might engage. Most of these affect bargaining, the demands made, or the techniques used to try to enforce the demands. Under the Taft-Hartley law it is an unfair labor practice for a union or its agents to restrain or coerce employees into joining or not joining a union, or to restrain or coerce the employer in selecting his representa tives for collective bargainlng.97 Presumably this clause 9-5 Reynolds, op. clt. , p. 290. 96 Davey, op. cit., p. 369* See also; Phelps, op. oit., pp. 353-356. 97 Section 8 (b) of Labor-Management Act of 19^7, Public Law 101, 80th Congress. I 196 In itself will not affect significantly the bargaining activities of the union. It does, however, place some restrictions on the actions that may be undertaken to get potential members to join a union. The 19^7 law restricted the type of union security clauses that could be agreed upon between unions and manage ment. 98 While this affects collective bargaining, It also influences the effectiveness of unionization and may be noted here. Under the Taft-Hartley Act a closed shop agree ment Is prohibited and a union shop clause may be negotiated only after a number of preliminary steps are taken.99 In order for a union to try to negotiate a union shop election within the limits of the law, the following must be done by the union: (l) become the recognized representative of the workers in the appropriate bargaining unit; (2) file a petition signed by at least 30 per cent of the employees in the bargaining unit indicating their desire to have the union negotiate a union shop contract; (3) win the union shop election by a majority of all the persons eligible to vote in the bargaining unit; and (4) negotiate the agreement with the employer, who is not bound to grant the union shop 9® Reynolds, op. clt. , p. 291. See also: Davey, op. clt., p. 375- 99 Loc. cit. 197 whatever the results of the election may have "been. In order for an election to be held and the name of the union to be placed on the ballot, the union must supply certain information to specified agencies of the federal government. This includes copies of the union constitution and by-laws, and the names, salaries, method of selection of officers drawing compensation and allowance of more than five thousand dollars per year, the regular dues and initia tion fees of the organization, and a financial report. All these data are to be supplied to all members of the union. In addition, the union must file with the MLEB affidavits from union officers asserting that they are not members of the Communist Party and do not believe in the overthrow of the government by force. Such information must be rela tively current— not more than a year old. These requirements make the signing of a union shop agreement needlessly and unduly complex. Experience under the law shows that the union nearly always wins the election for a union shop.l°° Considerable federal expense is Involved in the elections, and little has been done to cut down the extent of the union shop, probably the original intent of this section. In addition, it should be noted • i 100 Ibid., p. 380. 198] i that some unions and employers continued union shop clauses without observing the specified procedures. ■ » . It also is doubtful if the requirement of non- communist pledges from officers of any unions that wished to use the services of the board did much to clear Communists from the unions. In the first place, the number of members or followers of the party in labor unions was small. Secondly, many unions were able to and did go on negotiating without any help from the board. For these there was no requirement of such affidavits. Thirdly, the law did not prevent Communists from resigning positions as officers and t continuing, through puppet officers, to exert their Influence. Finally, most officials high in the AF of L and CIO are implacable foes of Communism in or out of unions. It did not require a Taft-Hartley law to encourage them to crack down on the minority of unions strongly influenced by the Communists. Even so, the law probably did strengthen the existing anti-Communist attitude of most unionists. One more important point about union shop remains to be mentioned. Even if the union wins the election and succeeds in negotiating a union shop contract, it is still faced with restrictions on its actions. It is an unfair labor practice, . . . to cause or attempt to cause an employer to discriminate against an employee . . . to whom 199] I membership . . . has been denied on some ground other I than his failure to tender the periodic dues and j initiation fees uniformly required , . . of . . . membership. 103* Prior to the Taft-Hartley Act a union which had negotiated a union shop contract was within its right in demanding that the employer dismiss a worker who, for any reason, was no longer a member of the organization. The 19^7 law changed the situation. If the union expelled a member it could not require his dismissal as long as he paid or offered to pay the dues and initiation fees required of all members.1°2 Thus, an employer might hire a worker whom the unions would not accept as a member, and he could still keep his job despite the union shop. To d.o3 so, however, he must pay or offer to pay the same dues and initiation fees as the members. Actually, the union shop is weakened somewhat more than the above paragraphs suggest. An employer is not to dismiss a worker under a union shop agreement if he has "reasonable grounds for believing" that the worker in question was discriminated against by the union or denied membership for a cause other than failure to pay dues and 1°1 Section 8 (b) 2 of Labor-Management Act of 19^7- 102 Davey, op. clt., p. 378. 20o] initiation fees.-*-°3 Just what constitutes Reasonable grounds for believing" that the union is discriminating is not clear. One clause of the law restricts the chance to nego tiate union shop agreements. Nothing in this act shall be construed as authorizing the execution or application of agreements requiring membership in a labor organization as a condition of employment in any State or Territory in which such execution or application is prohibited by State or Territorial law.lOH' In other words, if a state law prohibits the union shop, the federal law bows to it, a rather unusual pro cedure. In such a case the state law prevails, and even thej limited opportunity to negotiate a union shop agreement is denied. In 19^7 > it was reported that fourteen states had such laws.^-^5 Thus the Taft-Hartley law reduces significantly the effects of the union shop. Under the law there could be a considerable number of persons who were not members of the union and paid no dues. If the union refused them member ship and would not accept their payments, the employer could 103 Ibid., p. 377* 3-0^ Section 1A (b) of Labor-Management Act of 19A7- 105 "Legislative Restriction on the Closed Shop," Monthly Labor Review. Vol. 64, No. 6, June, 1947, p. 1056. 201 j still keep them in his employ. A known trouble maker or disrupter could in this way be kept in the plant. It should be noted, however, that this provision does not force any union to accept a person as a union member if it chooses to refuse the proffered dues and fees. This provision does much to weaken the pre-Taft- * Hartley Act type of union shop. However, it has some good points too. Some unions have restrictive rules with regard to the acceptance of members. While if they choose they still can pressure this membership policy of racial discrimination, for example, they cannot extend this restriction to job opportunities. Probably such union (policies are relatively rare, but they do exist. Any control over such action is desirable. Another provision of the Taft-Hartley law makes it an unfair labor practice Mto refuse to bargain collectively with an employer.This provision is not a serious restriction on the actions of unions in view of the fact s that the primary purpose of a union is to engage in collec tive bargaining with employers. However, there are many instances when unions lay a heavy smoke screen of excessive demands which may confuse the real bargaining issues for Section 8 (b) 3 of Labor-Management Act of 19^7* 202*1 months before either party gets down to a serious attempt to reach a solution, fhis practice of excessive demands is common to both parties. It seems, however, that customary behavior in bargaining causes both parties to take a preliminary position far from the grounds on which they finally will settle. It is doubtful if the Taft-Hartley provisions that employers and unions are to bargain with each other in good faith will do much to change established approaches of the two parties. Certainly in the first three years under the Taft-Hartley Act this was the case. Perhaps some of the more flagrant abuses, such as refusal to meet or meeting at out-of-the-way times or places, have been eliminated. Negotiations in the bituminous coal Industry in late 19*1-9 and early 1950 were a clear indication that down-to-earth negotiation on specific basic Issues may take months even after the enactment of the Taft-Hartley law. The 19*3-7 enactment made it an unfair labor practice for a union to engage in a jurisdictional strike or a secondary boycott.10? This prohibition also covers the sympathy strike.-1 ' 0® This “unfair practice*1 is a sweeping Section 8 (b) h of Labor-Management Act of 19*37- - * -0® Davis and Hatchett, op. cit. , p. 327- 203 I one. It denied to a union the right, . . . to engage in, or, to induce or encourage the the employees of any employer to engage in a strike or a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, . . .109 in order to accomplish certain purposes. These include: (1) forcing an employer or self-employed person to join a union [ { i or to stop using or handling "unfair goods” or otherwise doing business with some firm; (2) forcing an employer to bargain with a union not the representative of his employ ees; (3) forcing an employer to assign work to employees in a eertain labor organization. From the standpoint of public well-being, it is not possible to defend the jurisdictional strike. In a society in which there is less than full employment, however, it is understandable that a group of workers, such as those in a union, might try to get certain jobs assigned to them. Even so, the public has nothing to gain and much to lose from jurisdictional disputes. Sympathy strikes and secondary boycotts cannot be disposed of with such dispatch. If unionism is a defensible Institution, then inter-union solidarity and cooperation should be defensible also. Sometimes a strike may not be an Davey, op. cit., p. 393- 20^ effective means of exerting pressure on an employer or group of employers. An effort to stop the transporting, proces sing, use or sale of the good may prove much more effective. But to accomplish this goal the support of other union groups will be needed. This unfair labor practice of the Taft-Hartley law strikes directly at such support by one union of the efforts of another. It has resulted in Instances in which one group of workers has been forced to work to fill the orders of a plant whose workers are on strike. Sometimes these workers even have been members of the same union. A number of sections of the Taft-Hartley Act deal with matters other than collective bargaining and merit attention here. Under the Wagner Act the question of the right of foremen to organize arose many times. The board shifted its point of view on this issue a number of times. However, their decisions in later cases backed the right of foremen to form or join unions. If the union was composed of fore men only, the men were entitled to board protection of the right to organize. It is easy to see the issue that would arise over this matter. The foreman must be a representa tive of management; can he do that Job without bias if he Is a union member— even a union other than the one to which the employees belong? Many persons, especially those who hold 205] I the point of view of business, argue that they cannot. Others insist that in many large plants the foreman is the forgotten man and that he needs a union to protect his economic interests. The Taft-Hartley Act included provisions addressed to this problem. While the law does not forbid the unioniza- { slon of foremen, it certainly does nothing to help it.110 Foremen can get no help from the NLRB in their attempt to form a union. Employers may refuse to recognize a foremen's union, may dismiss foremen for union activity, or otherwise discourage their organization and still be within the law. Thus, the new law left foremen on their own in so far as unionization was concerned; in effect unionization of fore men became much more difficult. The Taft-Hartley Act attempted another control on the non-collective bargaining activities of unions. Unions political activities have increased markedly in the years since 1935* Apparently the framers of the new measure were opposed to the extension and improvement of union political activity. It was provided that unions could not make political contributions or expenditures in a federal 110 Ibid., p. 385- Loc. clt. 206 election or primary, The enactment applied the same regula tion to any corporation. Although such a provision may seem at first glance to be fair, since various groups are subjected to the same regulation, it actually rests more heavily on organized labor. As has been noted, the great majority of newspapers, magazines, and radio stations are likely to express primarily the attitude of business groups. This includes backing candidates favored by business. The backing of candidates and issues favored by organized labor is a task for a minor portion of the newspapers and for organized labor. An equal restriction on the political activity of labor and business, if it were possible, would result in a much more severe blow to labor and the candidates and Issues which it favors. Probably this section of the law has not had the expected effect, and unions do much work at this level. The law did not prevent the AF of L from setting up a national organization to carry on political action. By the practice of keeping their political activities under a technically separate organization and going ahead with an increasing amount of political action, unions have, up to 1950, essentially ignored the political action prohibition of Taft-Hartley. 2071 An important point remained to be mentioned. This concerns the state legislation dealing with the right to organize. It has been pointed out earlier that federal laws dealing with the right to organize are based on the power to regulate Interstate commerce. Therefore, if the federal law is to apply, there must be some reasonable connection between the employer regulated and interstate commerce. While this relationship has been interpreted quite liberally, many persons are not covered. Interstate activi ties such as retail trade, and hotels and restaurants, are examples of groups exempt from federal control. In 19^8, ten states had labor relations laws.112 These laws all ensured the right of workers to join unions if they saw fit. About half of the laws, however, went into the manner in which collective bargaining was carried on and the settlement of disputes. In fact, some of the state laws which were enacted some years after the Wagner Act were quite similar to the Taft-Hartley law. It is quite possible that experience with these laws might have been drawn upon when the federal enactment was framed.113 A majority of the states, however, offered no 112 Miller, op. cit., p. k5k. Loc. cit. protection to interstate workers, If they chose to try to organize. In fact, many more states had laws that tended to curb the activities of organized labor than had laws to guarantee organization rights. Many other provisions In the Taft-Hartley law have been subjects of arguments. They will not be discussed because they are of less importance. The content of the arguments, in brief, is that labor claim they are intended to curb the power of unions, while management claim they are there because It is just fair. By way of conclusion, the writer believes that the I Taft-Hartley Act did improve the position of management in collective bargaining. Clearly it was not the pro-labor bill that the Wagner Act was. On the other hand, it was not altogether pro-management. The responsibility of employers to recognize unions and deal with them continued. Unions meeting certain requirements still may have the backing of the federal government in their efforts to organize. On balance, however, the bill was more friendly toward employers than toward strong, dynamic unions, especially Industrial unions. III. CONCLUSION Chapter IV throws a light upon the mistakes committed in the past toward unionism, and shows the sad consequences 209 in the field of industrial relations caused by the respon sible governments for not granting workers recognition; that is, the right to organize and have sufficient freedom for unions to function. History of organized labor indicates two important facts. The first is that workers, who for one reason or another share the same outlook, always attempt to join hands and build their own organizations. The second is that in the democratic countries no successful plan or technique was ever able to stop the movement of workers to organize, and that the best that was found was to devise a method for keeping this movement under supervision. Governments always advised organized labor in an attempt to keep it in step with the ever growing needs of the community. Other conclusions, which the history of labor unions helps us to draw, are that unionism is indispensable to labor, and that trade unions as we know them today are a phenomenon of the age of free market economy and democracy, and will disappear with them. Some people are misled by the tension which exists between trade unions and employers in the free market system, thereby ruling that unions are harmful and dangerous. But this tension is necessary to preserve a state of equilibrium. In the free market system the tension of employers 210 ] and trade unions is an essential part of settling the proper level of wages, the proper length of the working week, and the proper standard of conditions of work. As in physical \ systems of the world, if the tension becomes excessive the system snaps; and danger would arise if the tension between employers and trade unions was carried too far. But within I proper limits of play, it is the best method yet found for securing necessary adjustments in the conditions and remuneration of work. But in a totalitarian system of government, or under dictatorship government, the place of trade unions is extremely insignificant because there is only one employer in this system, which is the State. Collective bargaining, the strong means by which unions expose their demands, is cancelled and the welfare and rights of the workers are extremely sacrificed in the name of the public Interest. This, of course, negates the very essence of organ ized la,bor. For unions that go that far in sacrificing their memberships' interests for the sake of the State are indeed anything else but unions. The history of unionism and organized labor shows clearly that unionism does not and cannot exist without enough freedom of action, activity, and planning. Guaran tees of administrative non-interventions to curb unions' 2111 i activities are the most valuable and important desires and hopes of organized labor anywhere. Therefore, any change in such aims, willingly or unwillingly, is complete negation of what we mean by unionism, and it might force workers to direct their efforts toward the undesirable sphere of action. CHAPTER V LABOR UNIONS IN IRAQ, The labor union movement in Iraq is weak and plays an insignificant role in raising the standard of living of the workers. The most important factors that count for this fact are, first, the governments policy toward trade unionism, which has taken the form of actual suppression and the use of unconcealed force. It has eliminated the free atmosphere necessary for labor organizations if they are to operate and to grow in power as agencies capable of raising the standard of living and improving working conditions. The second factor, the present labor law, presents a two fold problem. On the one hand are the basic deficiencies of the law and on the other, in most Instances, the non- compliance or the neglect in applying it by the employers and the government. These conditions definitely account for many violent incidents which have taken place in recent years between workers and government forces, and these same conditions are threatening to produce undesirable political and economic consequences if continued. The following will be an attempt to Illustrate these facts-*- by telling the story of the labor union movement in 1 Deficiencies of the Labor Law are discussed separately in Chapter VI.______________________________________ 213 Iraq from its inception until the present time. For the purpose of the study, this chapter is divided into two main headings: the first covers the period beginning prior to World War I until 1936* ^h© period prior to any labor legislation; the second covers the labor union movement from 1936 (the year in which the first labor law was passed) until the present time. I. UNIONISM FROM ITS BEGINNING- UNTIL 1936 The movement of labor unions in this period may be divided again into two periods: first, the period beginning prior to World War I, when Iraq was ruled by the Ottoman Turks, until 1924. Second, the period beginning from the year 1924, when the first movement for organizing labor started, until 1936. The Period Under the Ottoman Regime Until 1924 Before World War I there was no real labor movement in Iraq, as Industry, in its different aspects, had no articulate influence on public life during the Ottoman regime.^ However, the factories built by the Turks at the beginning of World War I~*the Abakhana factory which was o ^ 2 The Iraq Directory (Baghdad: The Times Press, Ltd., 1936), p. 555. founded by the Turkish governor, Madhat Pasha, the ice factories, the textile factories, the Turkish Trade School— produced many artisans whose number increased with the laying of the German Baghdad-Berlin railway line. Upon the occupation of Iraq by the British after World War I, important factories for the railways, for the repair of motor cars, and the maintenance of the Tigris steamers were established. The British brought with them many different types of steam and internal combustion engines and electrical equipment, together with a great number of European engineers and mechanics, of which the Iraqi artisans took advantage to learn modern methods of mechanical engineering. At the close of the occupation regime, the number of Iraqi artisans began to increase considerably as they took the places of some of the foreign workers on the latter's return to their homes. But until the end of 1923 there was no real labor movement in Iraq. The Period from 1924 Until 1936^ The first real labor movement started in 1924,^ and 3 All the facts in the following pages regarding the period from 1924 until 1936 are taken mainly from Directory of the Kingdom of Iraq (Baghdad: The Government Press, 1 9 3 < T 5 T The Iraq Directory, loc. cit. o Its founder and leader was Saleh Al-Qazzaz. Therefore, before proceeding with the description of labor organiza tions, and the government’s attitude toward them and their accomplishments, a word about Al-Qazzaz would be valuable. In fact, he played the main role in the life of these labor j organizations from their beginnings until shortly before the first labor code was promulgated in 1936. Al~Q,azzaz was born in 190*4- in Baghdad. After his graduation from primary school, he entered the Trade School and became a mechanic. He worked in almost all the facto ries and major industries which then existed: the Ab&khana factory, the industrial factory known as M. T. Depot, Henaidi factory for Baghdad-Kut railway line, the oil companies, and the Shalchiyah factory for the Iraqi rail ways. All of these industries and factories were either owned or administered by the British occupation personnel. The manager, the director, the engineer, the supervisor and the foreman were all British. Mot only this, but the British employed a great number of other foreigners as supervisors, foremen and workers, especially Indians. This practice continued even at a time when it became a well- known fact that a great many of these foreign employees could be replaced by Iraqis. j « i But the British did not see this fact, or they did 2161 not want to see it. It should also be mentioned here that there were no major Industries in Iraq other than those mentioned, with the exception of a few industries run by the Iraqi government. These facts, plus the desire of the workers to get rid of the occupation forces,5 helped Al-Qazzaz to be heard by the receptive ears of the workers, especially when a strike was conducted against a British firm. Moreover, during his work in these factories, Al-Qazzaz developed and demonstrated a great skill, ability, and superior leadership. Workers respected him due to the good relations he had with them and due to his willingness to listen to their complaints and to his understanding of their problems. Therefore, Al-Qazzaz was all set to hold the wheel of leadership. He called upon workers to demand their rights, organized the workers, and conducted several successful strikes against the management where he worked. His success in conducting these strikes brought the workers closer to him and they put their confidence in him. This put Al-Qazzaz in a better position, and at the same time 5 It should be remembered that the Iraqis were ruled for about 400 years by the Ottoman Empire and they already had suffered under that regime. Therefore, after the defeat of the Ottomans in World War I, it should be imagined that any other occupant would not be welcomed. 217 helped to achieve some sort of united front of workers. Beginning of the establishment of labor organiza tions . — In 192k, a groap of Iraqi skilled workers under the leadership of Al-Qazzaz decided to establish labor organizations to safeguard their interests and improve their working conditions. The first effort toward this end was made by the railway workers under the leadership of Al-Qazzaz who, at that time, was employed in railroad work. They applied for permission to open a club for workers similar to those other groups had, such as the doctors, the teachers, the lawyers, and other professionals who, accord ing to the “Law of Associations of 1922" had the right to establish associations to protect their interests and improve conditions. Until 1936 there was no law which permitted workers to organize, so the workers referred to the Law of Associations of 1922 for this recognition. However, the government rejected their demand. But workers everywhere, in all industries, kept ^ demonstrating their will and desire— through meetings, publications and papers, to be permitted to organize into “associations.8 However, their efforts did not materialize until 1929. At this time workers had already increased in strength and number, and more pressure was put against the * government from both workers and the public to permit 218 workers to organize. They argued that it is only natural for individuals who are in the same industry or plant, or even the same profession, and who share the same interests, to have organizations or associations of their own. Such organiza tions would not he too different from others already accepted by the government under the Law of Associations. Besides, they continued, it is only just that workers should be permitted to organize to look after their interests. Sue to such arguments and pressure, the government, in 1929, reluctantly granted permission to Al-Qazzaz and a group of workers with him to establish the first labor organization in Iraq. This organization was called "The Workers Association of Iraq1 ’ (TWA of I). The membership in the TWA of I was opened to all Iraqi workers. However, only the railway workers joined the TWA of I. But, at the same time, the TWA of I participated actively in the establishment of other workers' associations in the country. Thus, in 1929 the Barbers Association, the Tailors Association, and the Grocery Association were organized in Baghdad. And in 1930, the Machinists Associa tion and the Printing Workers Association were also organized in Baghdad. In the Liwa (State) of Mosul, other workers organizations were established such as the 219 Carpenters Association and the Grocery Association. Thus, by the middle of the year 1930, labor organizations were established in different parts of the country. Activities of the workers association. — The activi ties of the labor organizations will be discussed primarily In connection with their strikes, showing the nature and the demands of the strikers and the government policy toward them. The railway workers strike of 1930. — In the year 1930 the Iraqi State Railways' Budget showed a deficit. To meet this deficit, Colonel Tinge, the General Director of The l£*aql State Railways, ordered both a reduction in the wages and an increase in the number of hours per day of the workers. Consequently, the TWA of I on December 12, 1930, conducted a strike demanding that both wages and hours must return to their previous level. They also asked for paid vacations and an end to certain discriminatory practices which favored the foreign workers over the Iraqis regarding wages and other benefits.6 The strike was called off the next day as a result of negotiations between Al-Qazzaz and representatives of the railroad. Colonel Tinge promised to grant some of the workers' demands and study the others. 6 Directory of The Kingdom of Iraq, op. clt., p. 8G1. 220 However, after waiting for a period of more than two months without any serious action being taken toward achiev ing the workers' demands, the TWA of I on February 26, 1931, called another strike. After seven days the government Intervened as a mediator and negotiations were held between the Minister of Economies and Communications, Colonel Tinge, and Al-Qazzaz to settle the dispute. The core of the issue was the ‘ ’deficit," and Colonel Tinge held that there was no solution other than the reductions of wages and the increase of the number of working hours. But Al-Qazzaz opposed such a solution for it only affected the Iraqi workers, while foreign workers and the clerks remained unt ouched. Therefore, Al-Qazzaz proposed a solution and insisted that it was the only reasonable solution that the workers could ancept. He demanded, first, the lay-off of the non technical foreign workers who were not bound by contracts; second, if after such a lay-off the budget still showed a deficit, the remedy should be a reduction of wages to be distributed among the workers and the other employees (clerks) of the railways by cutting a fixed percentage from the salary or wages of each; and third, the replacement, as soon as possible, of the foreign technical workers by Iraqis of the same ability. 221 Colonel Tinge accepted these demands and promised to comply with them provided that he would be given a period of one month (until April 1). Al-Qazzaz, accordingly, called upon the strikers to return to their work, Informing them that in one month they would get what they asked for. The text of the proclamation Issued to the workers shows that Al-Qazzaz was reasonable and understanding. At the end of the proclamation, Al-Qazzaz said, “The railway workers have too many things to complain about, but due to the financial crisis (deficit), we cannot demand other than what is possi ble and reasonable to achieve. He added that the TWA of I sincerely hoped that the administration of the Iraqi Railways and the government would not compel workers to strike again.® The general strike against taxes. — But the promise was not kept by either the Railway Administration or the government, and in other fields, according to the Directory of Iraq, the government was careless and indifferent concerning workers’ complaints and needs. Consequently, ^ Loo* clt. ® After the strike he requested the government and the Parliament to pass a labor code to protect workers. Some members of the Parliament supported his move. There fore, the government promised to pass a law and asked Al-Qazzaz to submit his suggestions in this concern, which he did on March 31* 1931* 222 when the government passed the "Lew of Municipal Taxes8 aiming at levying a new tax on both the workers and the employersi the TWA of I on June 6, 1931» conducted a general, strike which involved all the workers' associations and the employers. The strike lasted fourteen days and was called off when the government agreed to some of the demands immediately and promised to achieve the others within a short period. The first attack on labor organizations. — A sharp controversy arose between the president of the TWA of I, Al-Qazzaz, and the Minister of the Interior in which the former demanded the realization of the agreements. As a result, the government closed the TWA of I and the rest of the workers' associations. Moreover, in an effort to get rid of this active labor leader, Al-Qazzaz, the government charged him with fifteen offenses, one after another.9 But, when failing to get a single conviction against him, the government warned him that he should curb his activities or otherwise he would be.convicted in accordance with the Tribal Law and would be deported to an uninhabited area. In the warning the government considered his existence in the town a serious danger to the national safety.10 This 9 Ibid., p. 802. 10 Loc. cit. 223 was the first ©pen assault on labor organizations. Thus, the first blueprint of government policy was drawn, promising to grant the demands in the hope that workers' enthusiasm would calm down, but without taking any serious action to meet workers' complaints or alleviate the causes of the strike. And if the labor leaders or organiza tions seemed to be active and insistent, the government's solution was to close the organization, prosecute the leaders, either warn or charge them, and then, if necessary, send them to jail. But, as we have seen in the early days of the labor movement in England, France, and the United States, a government policy of oppression could not and did not weaken the enthusiasm of the workers to organize. Therefore, workers everywhere in Iraq were demanding the re-opening of their organization, and the political parties and the public offered great support and sympathy to the workers' demands. As a result of this support and due to signs of unrest in the factories which were evident in the increase of sharp controversies between workers and their foremen and supervisors, the government, in 1932, permitted the workers to organize again. Immediately the Machinists Association was organized under the leadership of Al-Qazzaz. This association had several purposes in mind. Uppermost was the need for a 224 government labor code for the protection of the workers. Secondly was the necessity of giving aid in the reorganiza tion of the associations. Therefore, on February 22, 1933» the Machinists Association asked for the Issuance of a labor law and presented to the government a list of proposals to be considered.^3- Proposals of labor concerning the labor law.—-The proposals Included twenty-six items which reflected the workers' complaints and needs. They were:^2 1. The law should recognize the right of workers to establish their own associations or labor union, and the recognition of the right of labor unions to represent the workers in all the matters concerning employment conditions. 2. Wages must be determined by an agreement between the union and the employers. This, agreement will cover only the workers belonging to the union. 3. The working day must not exceed eight hours; rest and lunch periods must be granted too. 4. Workers must be paid during official holidays. 5. Workers must be paid during sick leave. 6. Employers must be compelled to provide healthy and Actually these proposals were amendments to the proposals already presented on March 31* 1931. 5Md., pp. 803—804. 225 safe conditions for workers in their factories, shops, or any other place of work. ?. In case of accident or disease resulting from work, the workers must he compensated. If the worker dies or becomes disabled as a result of the accident or disease, his family must be paid a just sum as compensation. 8. Provision for pensions must be made for workers to be granted after passing a fixed age defined by law. 9. A provision must be made for a welfare fund to aid needy workers, to which the government and the employer would match the worker's contribution of 1 per cent of the worker's wages. 10. Provision must be made for the protection of workers against unemployment. 11. Municipalities must establish "poor houses" for taking care of the aged and disabled and their dependents. 12. Except for experts and technicians, foreign workers should not be employed. 13. Child labor in heavy works must be prohibited for those under fourteen years of age, and the prohibition of employment of children under ten in any other work. 14. Houses should be built for the workers, espec ially those who work outside the cities, in which healthy. 226 conditions and reasonable rents would prevail. 15- Workers must be granted two weeks paid vacation every year. 16. Employers must not employ women for heavy Jobs. Women workers also must be granted four weeks before and after childbirth with full pay. 17. Workers* committees should be permitted to organ ize in each factory to protect workers1 rights. The advice of such committees must be sought by the employer in matters which concern the workers and their futures directly. 18. Employers willing to discharge any worker must give this worker notice in writing, The period for such notice must be fixed by law. 19. Minimum wages for the workers, enough to provide the necessities of living, must be fixed by law. 20. Recognition of the right of workers to strike and the right of unions to organize and conduct a strike must be fixed by the law. 21. Technical and trade schools should be opened in different parts of the country to enable workers to train and learn.' 22. A board of mediation and arbitration should be established with representatives of both the workers and the employers. 22? 23* Rules and regulations must be set by law Indi cating clearly bow unions can be established and what the rights of the workers are. Zh. (Seniority rules) must be applied in times of lay-off and rehiring. 25. Owners of industrial undertakings, companies, or other business concerns whose workers live near the place of work and are more than three.miles away from the public school, must provide schools for workers' children for the teaching of reading and writing. 26. The working week must be limited to six days. The seventh day must be considered a holiday with full pay. In brief, these proposals covered matters that provide protection for workers against unemployment, long hours, accidents, industrial disease, unhealthy conditions, arbitrary treatment, low wages, and the special problems of protecting women and children. They also covered important matters necessary to the growth of unionism such as recogni tion by law of the right of workers to organize, to strike, and to bargain collectively. They offered the opportunity for workers to obtain release from work in the form of vacations and holidays, and other privileges. Indeed, proposals like these, if enforced by law and complied with by the government, would have reduced greatly 223 the strikes and bloody Incidents which have taken place and are still taking place up to the present time in Iraq. It also would have strengthened unionism as an agency for improving the condition of the workers. In Iraq, a consid erable number of strikes and incidents stem from the fact that workers1 organizations, strikes, and collective bargaining processes are not fully recognized by either the law or by government policy. As we have seen in a previous chapter, the United States Government, realizing the Importance of these matters, enacted the National Industrial Recovery Act and the National Labor Relations Act to give similar protective measures to American workers. Even the Taft-Hartley Act which is considered by union leaders as restrictive to labor unions, provides such protective measures. It would have been more sensible if a law offering protective measures was issued in Iraq, especially since the labor movement was weak. But the Iraqi governments undermined the workers* efforts and never issued such a law, nor did they take practical measures to meet the workers' needs or settle their complaints. Thus, the problems still remain on the scene. The internetional labor convention of 1933. — * Along with the policy of being indifferent to the welfare of the 229 workers and their right to organize, according to Al-Ahali newspaper, the government violated the spirit of the resolutions passed hy the League of Mations regarding labor representation in the international labor conventions .3-3 The British Governor Lloyd was asked to represent the Iraqi workers in the International Convention of Labor held on June 8, 1933 > in Geneva, instead of Al—Qazzaz, who was unanimously elected by all the workers’ associations to represent them in this Convention.^ Such a move by the government brought severe resentment from all labor circles. Therefore, workers1 organizations immediately communicated with the government, protesting their non-recognition. Acting in response to the protests, the government replaced Governor Lloyd with two Iraqi delegates, but these delegates actually represented only the government side, leaving the workers’ interest out of the picture. Consequently, Al-Qazzaz cabled the Director of the International Labor Office and informed him that the Iraqi delegates to the Convention represented only the government. The Office later made this fact known to the delegates of ^ Al-Ahall, Baghdad, Iraq, June 8, 1933- The rules of the International Labor Organization required that each country must be represented by four delegates: two government representatives, one employers' representative, and one workers* representative. 230 all nations In the Convention, but no decision was made about it. However, the Office, in answer to Al-Qazzaz sympathized with him and hinted that the Iraqi labor organ izations could be represented when they were stronger and organized to the extent that they could influence their governments to grant the© their rights. This, of course, did not change the situation and the Iraqi workers remained unsatisfied and resentful of the government policy toward them. First federation of workers. — At any rate, partly inspired by the Office's letter and partly induced by the need, labor organizations decided to strengthen themselves. Consequently, on May 28, 1933* the rules and regulations of the Machinists Association were amended and the name was changed to "Union of Workers Federation." The amendment aimed at unification of all the associations of workers into one federation. A high level board to serve as an executive board was established. The presidents of the associations and representatives of other groups of workers became the members of the board under the leadership of Al-Qazzaz, who was elected to the presidency. This was the first federa tion of workers organized in Iraq. However, the government challenged its legality from time to time. For example, Mutass.rrif (governor) of Baghdad 231 on December 11, 1933» wrote to Al-Qazzaz the following: It has been noticed that you are calling yourself a president of a new union which you named Union of Workers Federation and since we do not know officially that such a Union exists, therefore you are required to present the necessary papers which prove the existence of the Union of Workers Federation is legal.15 However, no steps were taken against the Union of Workers Federation and therefore it continued to work as a federation representing all workers associations. One major achievement of the Union of Workers Federation was the conducting of a boycott movement against the Electric Power Supply Company of Baghdad. The boycott movement against the electric company. — Many people in Baghdad, Including religious and political leaders, doctors, lawyers and workers associations, the Chamber of Commerce, and charity organizations, had long been issuing complaints through newspapers and petitions against this company. The complaints were mainly about the high price charged for supplying electricity and the discriminatory prices imposed by the company for the different areas of Baghdad.^ Moreover, prices charged for Directory of the Kingdom of Iraq, op. cit., p. 806. 16 Prices for the people of Baghdad were 28 fils per unit, while in Henaldi, Shalchiyah and Railways areas, where the British had their houses, factories or military establishments, prices per unit were 1^, 10 and 8 fils, respectively. 2321 electricity by other companies in other parts of the country were lower than those charged in Baghdad. The requests for the reduction of electricity rates increased as the company remained silent. Therefore, proposals for boycotting the company appeared in the papers from different groups. The situation being thus, the Union of Workers Federation volunteered to conduct a boycott movement against the company, but before taking any action they asked for the support of those groups who had previously issued complaints and were granted this support easily. Consequently, the Union of Workers Federation asked the company to reduce the rates or the company would face a boycott movement. A reasonable period for the study of this matter was given to the company. The government was requested to convince the Company to respond to the wishes of the people of Baghdad. At the end of the warning period, no offer was made by the company to prevent the occurrence of the boycott. Therefore, on December 5> 193*4-» the board of the Union of Workers Federation announced the beginning of the boycott. In his statement announcing the boycott, Al-Qazzaz stressed the sensitive points that would stimulate more people to boycott. He mentioned that the foreigners were greedy exploiters of the wealth of the people and resources of the country, and that only by unity and cooperation could the 233 citizens force the foreign companies to respond to some of their demands. Thus Al-Qazzaz touched a tender sore of the people. When the boycott became serious, the British Embassy interferred, fearing that the spirit of boycott would spread to all other foreign products and services in Iraq.1? Accordingly, an offer of a slight reduction was made by the company.1^ The offer was made through the Mutasarrif (governor) of Baghdad. The workers1 representatives rejected the offer and demanded a more substantial reduction of the rates. When the Mutasarrif failed to convince the workers* representatives to call off the boycott, he threatened to take action against them and the Union of Workers Federation.19 Moreover, both the government and the company made announcements to the public that the boycott was over. In the meantime, the Union of Workers Federation called upon the people to continue the boycott until a settlement was agreed upon. The Mutasarrif, in an attempt to put pressure upon 17 Ibid., p. 800. 1® The cost of electricity was reduced from 28 to 26 fils per unit for house use, and 12 fils for shop, factory, or any business use, provided the power used did not exceed 50 Kilowatt. 19 Ibid., p. 80?. 23b the labor leaders and the workers, questioned the legality of the Union of Workers Federation again and asked its leader to prove that it was organized through the proper channels. As soon as Al-Qazzaz wrote to the Mutasarrif explaining how the Union of Workers Federation was legally organized, the government announced that it intended to study the situation of the electric company further by forming a committee to examine the financial position and the profits of the company. The purpose was to find out whether or not the company was able to effect any further reduction in rates. Due to this new development in the case, no action was taken against the Union of Workers Federation. However, a new problem arose concerning the commit- Itee. The government insisted that the members of the committee should Include representatives from four government ministries and only one representative of the workers, while the workers insisted that the number of both the workers' and the government's representatives on the committee be equal. Thus, there was a deadlock and the Union of Workers Federation called upon the workers and the people to continue the boycott. In the meantime, the government announced to the public that it comsidered the Union of Workers Federation an illegal organization and . 235 therefore that it did not represent the workers. In response; all workers' associations protested against what they described as government intervention and announced their loyalty to the Union of Workers Federation and their intention to continue to the boycott. The second attack on labor organizations — The government,20 losing patience with the workers* organiza tions and their activities, decided to exterminate these organizations. Thus, some time in 1935» the government invited the presidents of the Union of Workers Federation and other associations presumably to negotiate about further reduction in the cost of electricity. But before any negotiating took place, the government suddenly arrested the labor leaders and deported them under heavy guard to a place outside the city of Baghdad. After a few days, the hall of the Union of Workers Federation was closed, as were all other association halls. The remaining active workers were either convicted or released on the condition that they must maintain good conduct. The charge against almost all of these workers was that they were involved in distributing pamphlets or other published materials aimed at inducing the workers to boycott or to strike. 20 Al-Madfal* s government. 23 6 This action by the government brought much criticism, especially from members of the Parliament. Instead of interferring in favor of the company, the critics said the government should have helped actively to reduce the high cost of electricity, the use of which Is vital to both the community and the development of the economy of the nation. Other critics described the government's closing of the workers' associations as illegal and inconsistent with the spirit of the constitution. As a result of the policy of suppression of unions and the persecution of the leaders, distrust and animosity arose between workers on the one side and between the government and employers on the other. Moreover, the persecution of Al-Qazzaz and other labor leaders forced their retirement from labor activities. This left the workers without leaders who, like Al-Qazzaz, had no recog nized political affiliations and whose lone concern was the improvement of the workers' standard of living. Consequently, the road was made easy for political parties to infiltrate the workers. The Iraqi underground communist party, for example, which was just being organized, found no difficulty in reaching the attentive ears of the workers. Thus the government, by neither moving to improve the standard of living of the workers nor by 2 3 7 1 permitting the union activities to attempt to improve the conditions by themselves, forced the workers to turn to political parties, including the communists, as the only- alternative. II. THE PERIOD BEGINNING- 193621 UNTIL THE PRESENT TIME Early in 1935 > the government, which had repeatedly attacked the labor unions, resigned and a new cabinet was formed.22 At this time workers were demanding a raise in their standard of living and improved employment conditions. They wanted shorter hours, higher wages, better working conditions; they wanted the government to recognize their rights to organize, to strike, and to bargain collectively. They were asking, therefore, for a law to guarantee these right s. The International Labor Organization also made several requests to the Iraqi government concerning labor problems.' These requests, coupled with political parties' 21 All the facts in the following pages are taken jisainly from A1 Ahali Newspaper, Baghdad, Iraq. 22 The new government was Yassln Al-Haehimi1 s government. It Immediately released all the arrested workers and pardoned Al~Q,azzaz and the other deported leaders. 2 3 8 pressure at home and the ever-present demands of the Iraqi workers, were the obligations which the issuance of the 1936 Labor Law (72) attempted to fulfill. Longrigg clearly • pointed out these facts thus: "Interest at the International Labour Office in conditions among Iraq* s industrial workers led to some answering efforts to produce suitable legisla tion. Again he said: The passage into law of a Labour Code in 1936 reflec ted pressure on government to insist, at least ostensibly, on something of modern standards in the treatment of industrial workers.2^1 The Labor Law granted the workers the right to organize, but it also gave the government the authority to cancel the permission that gave the workers the right to organize. Moreover, the executive branch, not the Court, was to be the authority to which the workers could file complaints when permission to organize was rejected or cancelled.2^ The law failed to give the workers adequate protection from the abuses which an undemocratic government ^ Stephen Hemsley Longrigg, Iraq, 1900 to 1950 (London: Oxford University Press, 1953)”* P- 204. 2k Ihld., p. 246. This will be explained in the next chapter when discussing the present labor law applied in Iraq, namely, the Labor Law No. 72, for 1936, as Amended by Law No. 36 for 1942. :_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ J 239 might wish to enforce. The same government which passed the law refused to grant permission, for workers to organize. With the excep tion of one union permitted to he established in 1937 by Hikmat Sulayma^s government {the Coup d*tate government) practically no unions existed in Iraq until the end of the year 19M k The only permission granted was for the auto drivers, despite the fact that all other associations previously cancelled had applied for permission to organize. However, the auto drivers* union did not last and was closed in the same year. In October 1936, the opposition headed by the statesman Hikmat Sulaynan arranged a successful coup d*tate against the government of Yassin Al—Hashiml, and a new Cabinet was formed. This Cabinet, under Hikmat, brought iwith it three members of the Ahall group (Reformists), Abu |al~Timman, Kamil al—Chadirchi, and Yousif Izz al-Dln of whom Kamil was the most pro-labor. The programs for reform Ipromised, among other things, freedom of organization was going to be granted. This was not achieved, mainly due to the influence of the military dictator (Bakir Sudki) upon the Cabinet and the hesitation of Hikmat himself. This, and the friction developed between the Ahali group on one side and Hikmat and other ministers of the Cabinet on the other, led, in June 1937* to the resignation of the Reformist ministers. While still in office, according to Longrigg (p. 252), their influence, especially that of Chadirchi, had inspired serious strikes among industrial workers when Hikmat hesitated in granting permission for workers to form unions. Thus were explained the successive strikes at the Kut barrage, in the drllling-areas of the B.O.D. Company, in the Railway workshops, among the Port workers and the Najf Weavers, and among the Iraq Petroleum Company*s labor at Kirkuk. 240 The government stood ready to suppress and prosecute the active leaders in order to kill any attempt by the workers to organize. Successive administrations followed the same policy which deprived the workers of the right to organize until 19^ * Labor and Politics It Is important to mention here that in 1936 not only the organization of unions was prohibited, but also politi cal parties were abolished and prohibited from organizing. Before this time, a close relation between the labor unions and the political parties appeared. This relation grew stronger during the last decade as the political parties— the democratic parties, the left-wing parties, and even the nationalist parties— demonstrated strong support for the workers, while the government showed an unfriendly attitude toward them. The workers did not organize a labor party2? but they became associated with political parties. In recent years, a high correlation can be seen between the government abolishment of opposing political parties, and the closing of the labor unions. Every time freedom of political organiza tions is granted, the workers, too, begin to organize, 27 Of course, with the exception of the underground communist party which atti%cted many workers.________________ 2kl expand, or extend their activities. The recent situation in Iraq concerning labor and political relations is such that labor organizations, -workers, and the political parties have been on one side opposing the government.2® This is because the various administrations have done nothing effective to improve the workers1 standard of living or to recognize fully their right to organize so that they can improve their lot by themselves. Their problems still exist because of the government’s success in suppressing all those who attempt to voice the problem. From 1937 until the end of 19*t4, no labor union existed or was permitted to exist. Political parties also were abolished during this period. Therefore, the workers remained with no formal organ to speak for them. About 1936 an underground political organization appeared on the scene to play its role. This was the Communist Party, which was and still is working secretly. This party, as did the early Communist party in Russia, made intense efforts to get workers to join them. The 2ft As indicated in Chapter II, the reason is because the government people and also the representatives in the House of Senates and Deputies have most of the time been appointed. If elections are held for this purpose— and they very seldom are held— they end up with forgery, coercion by the part of the government in order to sta.y in power. zb z circumstance of the workers being what it was, the task was relatively easy and many workers Joined the Communist party. Of course, the abolished political parties were still raising their voice, but they played a minor role in organ izing workers during this period in comparison to the role played by the underground party. Unionism During the Last Decade During the Second World War, under the influence of the Communist Party and other non-recognized political parties, workers were induced more than at any other time to ask for permission to reorganize the labor unions and to demand the Improvement of their lot. Also, during the war the number of workers increased more than at any other time as many industries began expanding and many more Industries were established. Some of these industries were: the i cigarette industry; textile and weaving; tanning; date production; machine and car repairs; the glass industry; and several other light Industries. Added to this were the industries established by the British troops In Iraq for war purposes, all of which Increased the number of workers substantially. Most of these workers came from agricultural areas. The Increased number of workers and the existence of agitators behind them, plus the desire of the allies to 243 maintain stability in Iraq necessary for carrying on the responsibilities of the war, helped the workers gain two things. First, the Labor Law, No. 72, of 1936 was amended in 194-2. Employers, accordingly, are to take safety measures in the factories or workshops to protect the workers from accidents and diseases. Measures to assure the number of hours to be worked by each of the men, women and children were also cited. Employers are to maintain records for registering all workers in their employ. Rest periods were arranged similar to those applied in the advanced nations. Discharge of workers and night work are regulated. Employers are prohibited from employing women and child labor at night. Women are given a longer vacation with pay and are prohibited from doing certain kinds of work being considered as heavy work during maternity period. Also, in most cases the wording of the law is changed to avoid ambiguity.And second, and more important, the workers obtained permission at the end of 1944 to establish labor unions.30 At the end of the year 1944, four Baghdad unions were 9 Directorate of Labor, Labor Law No. (72) for 1936 as Amended by Law No. (36) for 1942 (Baghdad: Government Press, 1952TT pp. 1^48. 3Q Also, around this time the political parties were granted license to organize. 244 granted licenses to exist. These were, namely, the printing workers1 union, the machinists' union, the cigarette workers' union, and the carpenters' union. In 1945 the machinists and the carpenters' unions . were established in the city of Basrah. The unions of the railroad workers, the textile and weaving workers, the teamsters, the shoe workers, the tailors, and the building trades were established in Baghdad. In 1946 the telegraph~post workers and the electri city workers' unions were organized in Baghdad. Two unions, the textile and weaving union and the carpenters' union, 1 were permitted to have branches in the city of Mosul. Nine unions in different areas of the country were not permitted to organize. One of these was the very important group of oil field workers, especially those working for the Iraqi Petroleum Company in the city of Kirkuk.31 A number of the important established unions were controlled by the Communists. Some were controlled by the National Democratic Party, the Peoples Party, or the National Union P a r t y .32 others were either independent or 31 Al-Ahali, Baghdad, December 21, 1953* 32 jhe peoples Party and the National Union Party represent the extreme democrats. They were accused by the government of being Communists; therefore, they were closed. 2 U5 ! 1 mixed. j As soon as the unions were organized, their activi ties began. Strikes were being conducted in many places. I I The impetus behind these strikes was mainly that of the j above mentioned political parties, especially of the Communist. The workers showed no reluctance to accept the idea of the strike, not because they all belonged to the under-> 4 ground Communist Party— in fact, relatively few of them did— but because conditions were so poor that the strike loomed up as the only way out of the situation. Although the strike cost the workers very much, it even cost some of them their lives. Government Policy Toward Strikes Unfortunately, the method of striking angered the government, whether the strike was against a government establishment, a private native firm, or a foreign estab lishment. Generally the government's response to the strike can be summed up in the following orders given to the poliee: close the union, arrest the active workers and take them to the court, threaten, and if the strikers do not break up, open fire. Instead of looking at the strike as a problem that uust be solved peacefully and studying every strike to see .. 2k6\ what factors are really causing the strike, the government policy is to persecute, Imprison, and since 19^6 shoot the strikers and the more active workers, or close the union because— and this is often the argument, the strike was conducted by Communist workers or had Communistic motives behind it. It is not the purpose of this paper to deny the Communist infiltration within the workers' organizations, for it is well known that the Communist parties all over the world spare no effort to control these organizations. But one doubts if such government policy toward strikes, workers and their organizations is a sound one. For time has proved that attributing strikes entirely to the existence of Communist elements is not realistic. Thus Thomas Stauffer writes: Communism is not an effective or even an Important internal force in the Arab labor movement, which rejects both Its philosophic and its imperialistic aspects. Past Communist success with Arab labor organizations have been largely reversed, and It may even be that in the future the unions far from being communists them selves, will protect their countries from new Soviet attacks and penetration through other groups.33 Since \9hk3k there have occurred several strikes and 33 Thomas B. Stauffer, "Labor Unions In the Arab States," The Middle East Journal, Vol. 6, Number 1, Winter, il952, p. 8?. 3k 2.9kk, as mentioned before, is the year when workers were permitted to organize again after almost a decade of prohibition from organization.____________________ "............................................................... ..~ ..................... ” ” 2W7 I I incidents. The government attacked the labor unions and imprisoned many of the leaders for either being Communists or accused of being Communists. In 19^6, 19^8, 1950» 1951 and last year, the labor organizations were suppressed, many of the leaders, whether Communists or not, were prose cuted and imprisoned on the charge of being Communists.35 The Communist Party in Iraq has been smashed many times by the government and the role it plays today in the lives of the workers is far smaller than it was a few years ago, but the number of strikes and complaints by workers in Iraq has increased and several recent bitter strikes still remain as important issues today. The men in recent administrations are the same men, or are from the same dominant families which were in control of the government prior to 1936, thus before there was a Communist Party in Iraq. The fact remains that the govern ment policy toward organized labor is simply a continuation of the attitude shown toward the early labor movement. If the governments were sincere in their attempts to eradicate the threat of Communism among workers, they would and could discover and seriously try to eliminate the conditions in the lives of the workers which turn them to 3-5 Al-Ahall, Baghdad., December 21, 1953* 2$ Communism. J The demands of the Iraq 1 worker. — Surveying the demands and complaints I s s u e d ,36 it appears that workers, in general, complain for three reasons: (1) low wages, (2) arbitrary discharge (this has become a great source of insecurity to workers; a worker might find himself suddenly unemployed at any minute), (3) neglect or misuse of the labor law by the government and employers. A report on the economic development of Iraq gives this account: The Labor Department . . . is inadequately staffed to enforce the law and the many reported violations are generally allowed to go uncorrected. In 19A9-50, of 1,228 enterprises inspected, only 136 were found to comply with the law. Of the remainder, 97^ were simply warned and 118 cases were referred to courts. It would be desirable to enforce existing legislation before enacting other labor laws. Efforts are apparently being made to survey the possibility of introducing a social, insurance system into Iraq. Under existing conditions, however, any social Insurance law might tend to remain a dead letter.37 Demands for the right to organize, for better working^ conditions, social security benefits, and vacation and sick leave benefits are an outgrowth of this neglect. 36 Usually before or during the strike, the workers supply many local newspapers with a copy of their demands. 37 The Economic Development of Iraq,"Report of a JMission organized by the International Bank for Reeonstruc- jtion and Development (London: The Johns Hopkins Press, 1952), p. h2. 249 j Examples of Government Policy Toward Strikes in Recent Years[ In the opinion of the writer, one of the most serious mistakes of the government has been its method of dealing with strikes. To support this view, several examples of important strikes which have occurred at different times, in different parts of the country, are now presented. The railroad strike. — In 1946, the cost of living was at the highest point recorded in Iraq until that time. Wages in comparison to the cost of living were very low. “The laborer’s cost of living in Iraq had risen in 194-6 to 556 per cent of its 1939 level,“38 while “the daily wages for unskilled labor varied from one to one and a half dollars for an eight hour day.“39 The railroad union, probably the largest in the nation at that time, demanded a wage raise and other demands, namely, the stoppage of arbitrary discharge and the applica tion of the Labor Law.40 The railroads being government- owned, the railroad workers had many times previously requested both the government and the railroad directorate Seton Lloyd, The Middle East (Great Britain: The i Broadwater Press, 1950), p, 265- I 39 Loc. clt. No statistics are available for the i percentage of wage Increase, but in most probabilities it was under a hundred per cent. Al-Ahali, Baghdad, December 21, 1953* 250 to take steps to settle these problems, but no real move was made toward settlement. However, when the authorities refused, this time also, to grant workers what they asked for, the union conducted a strike. The police force, ordered by the government, immedi ately arrested the leaders of the union and jailed them. The union was closed and its license was cancelled. The charge made was that the union and its les,ders were practicing Communist activities because they induced workers to strike and were spreading unrest among the workers and the people. However, those leaders were later released as the court found no evidence to support the charges.^ But the union was not permitted to operate. Government unions. — After repeated applications to the government to permit the reopening of the union, the government gave indication that there would again be a railroad workers' union. But the union which was set up was in every sense a government union. This union was very similar to those seen in Nazi Germany or Fascist Italy, in which the ultimate aim is complete government control. ill Release is a legal term. In Iraq it applies to a person who had been accused and the court has not convicted him because of lack of evidence. He is free, but there is an implication that the court is still suspicious that he is guilty. 251 The union was run by an administrative committee which was appointed or elected under obvious pressure by the government. Those who emerged as the leadership of the new union, it may be noted, were those who stood against the strike. It could not be otherwise, for all the leaders who had been active were either in jail or on probation. When elections were held, few workers attended, and those who did were usually outnumbered by members of the secret police. Under such conditions, how could people other than those closely aligned with the government side be elected? This was the first attempt of this type of union, but it was to be attempted many times. The workers boycotted this government union and it did not live long. The railroad workers have never had a union again and their problems remain unsolved. It is no wonder, therefore, that workers turn to the political parties, the Communist party, and the others who, like the workers, oppose the governments methods. It is because of the lack of workers* organizations that the workers partici pate in political party activities. The Kawer Baghi Incident. — Early in June, 19^6, a group of workers of the Iraqi Petroleum Company (I.P.C.) met the director of the company at Kirkuk and told him of some of the demands of the workers. Since the oil workers had no 252 union,and therefore had no legal representatives, the Director demanded that he would negotiate' only after elections were held and representatives of all classifica tions of workers were elected. Therefore, elections were held and twenty workers were elected, representing all the classifications of workers. On June 17, 19*4-6, these representatives interviewed the Director and demanded the following: 1. Raising the minimum wage for an eight hour day from 80 fils to 250 fils.^3 2. A social security system to provide protection from unemployment, sickness, and old age. 3. A stop to the arbitrary discharge practice. k>. A stop to the persecution of those workers who are active in attempting to organize the workers, or those who tend to become spokesmen and air the complaints of the workers. 5. Building houses for the workers or compensating them for the increase in house rent. 6. Providing transportation facilities to and from work. The government always refused to grant oil field workers permission to organize. ^ From 22 cents to 70 cents per day. 253 7. Granting bonuses^ similar to those granted to oil field workers in Haifa and Abadan. Negotiations were held between the workers' repre sentatives and the company representative Including the director of the company himself. After four hours of negotiation, the director asked for a two-weeks period to study the demands, and this was approved by workers' repre s ent at ive s. At the end of the two weeks another meeting was held and negotiations failed to reach a settlement, for the company refused to grant any of the demands, with one excep tion. It offered only a raise of from 50 to 100 fils (li* to 28 cents) a day. This raise was not to be considered as a raise in the basic wage rate, as the workers demanded, but as compensation for the higher cost of living. Moreover, this offered raise could be granted only if the head office of the company in London or Haifa approved of it. There fore, the workers were asked to wait for another two weeks for the answer. The workers rejected the meager offer and, giving the company two weeks, announced that they would go on strike on July 3» 19^6, unless their demands were granted. The These bonuses were called war profit bonuses. " 25^1 I company Ignored the warning. On July 3, the oilfield workers declared a strike. The workers were without a union which would support them and their families financially during the strike, and were ' dependent upon their wages for their living. i In an effort to bring the Issues of the strike to the attention of the public and of the government, the strikers demonstrated peacefully in the streets of the city of Kirkuk, carrying signs on which their demands were written During the demonstration, a delegate from the workers interviewed the Mutasarrif (Governor) and explained their demands to him. Also, they asked the Mutasarrif to set free? one of the workers who was arrested because of the strike. The Mutasarrif accordingly demanded that the workers must first return to work, and then he would negotiate with the company. But the workers refused to return to work unless a written announcement was given by either the company or the Mutasarrif that their demands would be granted. Nothing, however, was settled and the strike continued. Three days passed and the company still rejected the demands. The Mutasarrif made no effort to convince the company to grant the demands or at least make a better offer.Therefore, on July ?, 19^61 the workers ^ Al-Ahali, July 22, 19^* "" 2551 demonstrated again, in the manner of the first demonstra tion, in an effort to make their demands and their case known to the people and to the government. Again nothing was accomplished. The strike was over a week old and the company was still indifferent about the situation. The Mutasarrif and his officials began to align themselves with the company, using all possible means and methods to end the strike in favor of the company.^6 He used his Influence and his administrative powers to break the strike. He performed a role far from that of an impartial judge.^7 However, the Mutasarrif failed in his effort and the strike continued. On July 10, 19^6, the Mutasarrif issued a statement offering the workers the same concessions made by the Director of the company before the strike, plus some minor offers which had no relation to what the workers were asking for.**'® Also, he asked the workers to go back to work. The workers refused to go back to work because none of their demands had been met. On the morning of July 12, 19**6, the Mutasarrif met U6 Loc. cit. Loc. cit. ^ Loc. cit. 256 with some of the representatives of the workers and asked them not to assemble at “Kawer Baghi, *'^9 but the representa tives of the workers informed him that the workers would not work until the dispute was settled. They also informed the Mutasarrif that they assembled at Kawer Baghi because they had no union hall where they could hold meetings to discuss t the strike and to give the workers the day-by-day report of the progress. On the same day the Mutasarrif secretly ordered the police foree to go to Kawer Baghi to disperse the assembly by force or by the use of fire arms, if necessary.50 j i Accordingly, at about six o*clock in the evening, the police force encircled the assembled workers at Kawer Baghi and ordered the workers to disperse, repeating it three times and immediately began firing. The order to disperse was made so quickly that only a few of the workers who were close to the shouting police officer knew what he was demanding. Several workers were killed snd more Injured. Conflicting stories were told about the actual number of casualties. However, according to the account of the UrQ Kawer Baghi is situated outside the city in an uninhabited area where the strikers used to assemble to discuss the strike situation. Al-Estlklal newspaper, Baghdad, October k, 19^6. 257! i government, the number of workers killed and injured was twenty-one. This was the first time in the history of Iraq that workers were fired on because they were on strike. At the time of the Incident, the government,issued a statement blaming those Bagitatorsw and Msubversive elements1 1 among the workers for starting the firing. However, investiga tions later proved that the workers did not fire at all and only the police fired. Cigarette workers strike. — On September 2k, 1952, the workers of the National Cigarette Company went on strike. They struck because the Company refused to grant them their two demands: (l) a wage raise of 25 per cent for time wage groups and a 2.5 cent wage increase per piece for the incentive wage group; (2f ) to provide a comfortable place to be used by the workers during lunch and rest periods. The working conditions in the cigarette factories in general were dangerously unhealthy. The harmful smell that reaches even the noses of those who pass by is very annoy ing. And, perhaps, this is why so many of the cigarette workers have yellowed faces and sometimes tuberculosis. The workers in the National Cigarette Company factory apparently asked for a comfortable and healthy place in order that they be away from the annoying smell and be able 258 to breath fresh air at least during lunch and rest periods. The wages in this factory fall into three groups: The first group receives over $1.4-0 per day, the second group*s wage is helow #1.50, and the third group receives less than seventy cents per day. In this group, wages are much below seventy cents because of the child labor competition. Under the economic pressure and bad working condi tions, the workers went on strike and chose to stay in the factory (sit down strike) until a settlement was reached. In Iraq there is no prohibition in the Labor Law against sit down strike. The government immediately Interfered and the police force encircled the factory to prevent the arrival of food to the workers in the factory. The company, in turn, shut the water off from the workers.51 This action, however, neither ended the strike nor did it provoke the workers to cause damage to the factory. The sit down strike continued * and the workers spent the whole night' in the factory. On the next day the Director General of Labor and Social Security52 visited the site of the strike and signed Al-Ahali. September 26, 1952. The Director General of Labor and Social Security Is a government official holding a high position. He is the head of the office whose function is similar to that of the Department of Labor in the United States._____________________ a promise that the workers would "be granted their demands. Accordingly, the workers ended the strike, but the next day the workers were prohibited from entering the factory by the police who had encircled the factory again. The workers were informed that their demands would not be granted.53 The workers again began to strike and the government forces again interfered, putting pressure upon the workers in the form of threats. The strike did not end until the company made an offer to the workers. The company promised to provide a comfortable pla.ce for rest and lunch periods, and it also agreed to raise the wages slightly. They granted a 3 per cent raise to the first, a k per cent increase to the second, and 10 per cent to the third group. The dock workers strike. — > Due to the high cost of living and the Increasing complaints of the worker (and other low-income) groups, the government in 1952 approved that financial aid be granted to those workers and low salaried clerks who were employed by the government estab lishments.^ The workers of the port were not granted this financial aid because, as they were told, "the Port is not 53 Al-Ahali, October 8, 1952. 5^ The amount of the financial aid for every worker was a small percentage of his monthly earnings. 26o] in reality a government establishment.8 This directive needs interpretation. After the First World War, the Basrah Port, like the railroad, was owned and administered by the British. Years later, when the ownership of both was transferred to the Iraqi government, the top administration remained occupied J by British personnel. Though these two establishments belonged formally to the Iraqi government— and therefore the rules and regulations of the Civil Service Law should apply to their workers and employees--the administrations developed their own rules and regulations of employment. Therefore, because the two establishments in question had some different rules and regulations to which their employees were subject, it was felt that these establish ments were not government establishments. They are usually called semi—governmental, establishments. The refusal of the Port administration to grant financial aid to its workers offended the workers, especially when they learned that the railroad workers who also were considered as non-governmental employees had been granted this financial aid. This incident added another complaint to those already accumulated and served as a direct cause for the workers to ask for all their demands. They demanded— in addition to the financial aid— high wages, 261 abiding of the rules and regulations of the Labor Law by the Port authorities, provision of transportation facili ties, and other minor demands.- 5 - 5 When the Port administration rejected the demands, the workers went on strike (sit down strike). Among the strikers were those dock workers upon whom the supply of wa^ter and electric power for the whole city depended.56 The police force were called and the incident immediately developed into a clash between the workers and the police. The police fired at the workers, killing and injuring several of them. Again the government blamed the strike on subversive elements and the agitators among the workers. Although the government claimed that the workers fired on the police first, subsequent investigation proved this not to be true, and actually the only side which fired at all was the police. Though the water and power supply workers should not have gone on strike,57 the police should not have fired, Al-Ahall, August 26, 1952. 56 In Iraq there is no legal prohibition against strikes by public employee and employer utilities. 57 Because those workers were employed in services of vital relations to the lives of the people in the city. 262 especially when the police are always able to use other means to break a strike. The oil workers strike. — In September, 1953> the oil field workers in the city of Basrah went on strike after the oil company refused to grant the workers certain demands. The workers had asked for better wages, the right to establish a union for the oil field workers, the stoppage of arbitrary discharge, amendment of the system of vacation benefits, application of the Labor Law by the company, provision of transportation facilities, and some secondary demands. As the strike started, the government Issued a communique in which it said that a meeting was held between some top government officials (Minister of Social Affairs, the Mutasarrif of Basrah, and the Director of Employment and :Social Security), the representatives of the workers and the representatives of the company for the purpose of settling the dispute. The communique further stated that as a result of the negotiations, the company agreed to give the workers all of their demands with a few exceptions, one of which was a wage Increase. The workers apparently did not accept the settlement and decided to continue the strike. Al-Ahali, December 15, 1953- .. Consequently, the Minister of the Interior, who had f arrived at Basrah because of the strike, ordered the police to arrest a great many of the strikers. He also sent the police to the oil field near where the workers were accus- tomed to assembling. When the workers assembled, the police force fired at them because they had refused to call off the strike. Several workers were injured, and one was killed.59 After the incident, the government issued a commu nique in which it blamed those workers of "known intentions,1 1 meaning the Communists, as the instigators of the incident. In this communique the government indicated that the majority of the workers had accepted the offer of the company and were going back to work. But a few workers, led by the "subversive elements," attempted to prevent them from arriving at the place of work. The communique further indicated that those "subversive elements" committed criminal actions against the workers who wanted to work and against the passerby, either by hitting or injuring them. The "subversive elements" were also planning to attack the houses and shops of the people, the report continued. And when the "subversive elements" demonstrated and began to fire and throw stones at the police— who were there to guard Al-Ahali, December 16, 1953- " 26k the people and maintain order— they fired back in self- defense, not to kill or injure but to frighten the workers, the report concluded. This is the typical alibi which is presented by the government after almost every incident in which the police have fired at strikers. Investigators, usually judges, i newspapers, and witnesses of the incident, report in most of the incidents that the story given by the government is faulty, and that the workers had not fired a shot— that the police force alone fired. Immediately after the incident, the people of Basrah, sympathizing with the workers, closed their shops and a great many students and citizens demonstrated, protesting the governments actions toward the workers. The demonstra tions became so serious that the government had to declare martial law in the city in order to stop the people from demo n b t rat ing. The protests and the demonstrations were not confined to Basrah alone, but spread to other cities, especially Baghdad, where mistreatment of the cigarette workers had just taken place. In Baghdad, college students went on strike sympathizing with the workers, and many citizens 60 Loc. cit. 265] protested in resentment of the government's action.61 Political parties also took part in inducing the public to oppose the incident. III. CONCLUSIONS The policy which the Iraqi government follows toward workers1 organizations is generally unsound in many ways. In the first place, such a policy forces secret organization by the workers. Secondly, it enables political parties to organize the workers, and therefore to derive added strength, perhaps not in the interest of the workers. Third, the workers tend to adopt a distrustful and hoBtlle attitude toward both the employers and the government, due to the present policy. And finally, this policy has tended to produce a discontented labor force. The policy fostered by the government undoubtedly will hinder the economic and industrial development of Iraq. The total productivity of the country is bound to suffer for several reasons. The.labor policy of the government produces general unrest and an unstable situation in industry. An Increase in the number of strikes results, halting important work. And, too, the very low level of 61 T 4 + Loc. clt. 266 the life of the workers is a serious hinder&nce to total productivity. The outcome of such a situation would have grave consequences for the future of Industry in Iraq, for certainly it would discourage new investments by both local and foreign investors, which would aid in the utilization and development of the idle resources necessary for the progress of the country. CHAPTER VI LABOR LEGISLATION IN IRAQ This chapter will be a discussion of the defects and deficiencies of the Iraqi labor law as It Is presently applied. Particular emphasis will be on Items which deal with labor organizations, since this thesis is concentrating on the right of labor unions to organize. I. THE LABOR LAW The Labor Law No. (72) for 1936 as amended by Law No. (36) for 19^2 relates only to Hworkmen” In industrial undertakings and even from this limited field workshops are excluded which do not use mechanical power and do not continuously employ at least four persons.1 The term "industrial undertaking" covers, approximately, quarries and excavations, petroleum extraction and pipelines, factories, workshops, constructional works, transport services, print ing presses and the operation of engines.2 1 2 * Article I, Section (l) of the Law states: "Industrial undertakings shall include: (a) Mines, Quarries, excavation for antiquities, places of the extraction of minerals and the petroleum Industry and the branches thereof, (b) Factories in which articles are manufactured, altered, improved, cleaned, repaired, ornamented, pressed, finished, rendered suitable for sale and also the Workshops jin which materials are transformed, broken up or demolished; 268 The workers covered by this law are conditioned to an eight or nine hour working day with overtime thereafter. They have in general the right to a daily rest period, a weekly rest day with pay and twelve days paid holiday a year including ship-building and the generation, transformation and transmission of electricity or motive power of any kind, (c) Construction, reconstruction, maintenance, repair, alteration or demolition of any building, railway, tramway, harbor, dock, pier canal, inland waterway, road, bridge, viaduct, sewer, drain and any other irrigation scheme; telephonic installation, electrical undertaking, gas work, water work or other preparatory work. (d) Transport of passengers or goods by road, air, river, sea. or rail, including the handling of goods at docks, quays, wharves or warehouses, (e) Operations of printing presses, driving or turning of engines whether steam engines or mechanical. "Industrial undertaking does not Include: (l) Any petty work in which the operation does n5t continue more than a week. (2) Any agricultural operation including irrigation, bunds and any such other works connected there with. (3) Any undertaking in which only the members of the family of the proprietor of the undertaking are employed. (k) Any work of a communal nature such as silt clearance of canals, repair of bunds during floods, and work in respect of combatting locusts, provided that such works shall be imposed by Law." Pp. 1«2. Section (2) of the same Article defines "worker" as follows: "Worker, means any person employed for wages in an industrial undertaking under a special or general, oral or written agreement. This term includes the unemployed 'persons who, in the event of their being employed, shall possess the above mentioned conditions." P. 2. Sections 7 and 8 of the same Article give the follow ing definitions: "Factory means any premises wherein steam, water or other mechanical power is used to move or work any machinery employed in preparing, manufacturing, finishing, altering, ornamenting or repairing any articles." P. 3* "Workshop means any premises not being a factory within the foregoing meaning intended for the carrying out of indus trial works provided the number of employees continuously working in it does not exceed four persons." P. 3« 269] in addition to public holidays, and they are entitled to a week's notice of dismissal, but no minimum wage rates have yet been prescribed. There are provisions restricting the 1 employment of children, other provisions concerning night work, which is prohibited altogether for women and young persons, and a section concerning the employment of young persons on ships. There are also some social security provisions. Long service dismissal indemnities are payable at the rate of two weeks' wages for every year's service after the fourth. This is rudimentary Insurance against loss of earning power due to unemployment or old age. Compensation is payable by employers for loss of earning power due to employment injuries and diseases,3 and free medical treatment must be made available for Injuries at work. Sick leave on full pay must be granted up to sixteen days each year with cumulative title. Women are entitled to leave with pay for three weeks before and three weeks after confinement and to security against dismissal during their absence. Enforcing the Law The enforcement of such a law depends largely on the good will of employers. The Directorate General of Labor 3 Cf. ante.. Chapter III for the details. 2701 i and Social Security, as the government department responsi ble for enforcement, has been provided with a small corps of inspectors, who have the right of entry into premises and the authority to require information from employers and workers. In 1951» they paid 2,63^ visits.**’ Cases of contravention can be referred to the courts and a judge with; i both criminal and civil jurisdiction sits weekly as a special labor court, usually at the head office of the Directorate General. In 1951, there were 129 prosecutions with about 50 per cent convictions.5 The corps of inspectors has a major contribution to ! make to social contentment. A larger corps is needed, but their training is now receiving attention. This began in 1952 when Mr. Thomas Graham— an expert from the Interna tional Labor organization— came, by a special request, to Iraq to reorganize the inspectorate service. The Labor Law has a general requirement that indus trial undertakings shall take all reasonable precautions to secure the safety of their workers, and the new Civil Code (Article 913) plaees on all employers the obligation to ensure health and safety in workshops and place of ** W. J.vHull, “The Task of the Department of Labor," The Iraq Times (Baghdad: The Times Press, 1952), p. 88. • 5 Loe. cit. 271 employment by all necessary means including the maintenance of machinery and articles of work In good order.8 iraq‘s "Factories Act" Is the Regulation for Workshops and Facto ries No. 38 of 1937» made under the Protection of Public Health Law of 1929, and for the enforcement of this the Ministry of Health is responsible.7 it lays down some general requirements concerning air space, ventilation, cleanliness, sanitation, lighting, fire escapes, contagious diseases, dangerous and unhealthy processes, safety precautions and accident prevention.8 II. NEW LAWS PROPOSED? "It has long been recognized that the Labor Law requires revision. Its wording is loose, its scope narrow, and its definition of a worker far from clear."10 Its application presents difficulties with many categories of workers such as clerks in the offices of industrial underr takings, seasonal date packers, casual dock workers and £ Lac. clt. ^ l«oc ♦ olt. 8 For some of the details Gf. ante, Chapter III. ? All the facts about the new laws proposed are taken from Hull, ojg>. cit., pp. 88 and 164. 1° Loc. clt. - - 272 casual grain winnowers. The special problems of seasonal i and casual workers and of those employed by labor contrac- tors and tindals cannot be solved all at once, but the draft! of a new Employment of Workmen Law has been prepared at the Ministry of Social Affairs with the general object of putting Chapters 1, 2, and 5 of the existing Labor Law on a rational basis. These are the chapters headed “Definitions," “Conditions of Labor of Hours of Work,*1 and “Bights and Bowers.“ Careful consideration has been given in preparing this draft to cover every representation ever made to the Ministry. It contains proposals for making the present benefits of dally rests, paid weekly rest day, paid leave, paid sick leave, week's notice of dismissal and indemnity on dismissal after long service, more widely available in the towns, and its improved definitions may put an end to disputes as to who is and who is not entitled by law to these benefits. Title to indemnity under the new scheme would begin after two years' service and extend to wage- earners called up for service with the armed forces and to the dependents of deceased wage-earners. Employers would be able to incorporate the legal indemnities into their provident funds. The proposals deal very carefully with title to ?7? I wages and salaries in all sorts of contingencies but do not lay down any minimum rates (see the next section below). They dispense with the present obligation to pay wages at intervals not exceeding one week. The normal working day would be agreed between employer and worker but subject to an eight hour limit except in certain industries. New clauses are introduced defining the circumstances in which either wage—earner or employer may terminate an indefinite contract of service without notice. These are designed to protect the wage—earner against the bad employer and vice versa. There are also some new clauses concerning office and works discipline. The powers of inspectors have been defined more i closely and proposals made for Increasing them. The draft law also provides for a national employment service, for a national employment council and for statistics and reports. Indeed this draft law is greatly preferable to the present Labor Law. But it seems that the draft law has been neglected; about two years have passed since it was prepared and yet nothing has been done to convert it into a labor law. Wages Another draft law prepared at the Ministry of Social Affairs concerns minimum wages. There is little doubt that 2?l| wages in some industries are too low for subsistence and in some others good employers would pay higher rates provided they could be sure their competitors would be brought into line. It is probable that manual wage earners-— who have neither land nor produce— -on the whole are worse off than any other social group, and it is an urgent necessity to bring some relief to the worst situated of them. It is not easy to devise a satisfactory means of doing this, and “Article 36 (c) of the Labor Law has been found an inadequate peg on which to hang a minimum wages regulation.(This article gives the Council of Ministers power to fix the lower limits of daily wages according to occupational category).- There is, however, a procedure i which although new to Iraq, has been successful elsewhere and which enables groups of employers and workers to settle some of their own wages problems with the assistance of neutral persons of standing and of the government department most directly interested. This is the wage board procedure. A proposal has been made for new legislation to empower the Minister of Social Affairs to set up a wage board for any industry or occupation where he thinks it necessary. Each board would ^ Loc. cit. ................ 2751 consist of equal, numbers of representatives of the employers and workers directly concerned— that is, of the people who know the problem at first hand--and would be led by independent experienced persons. Their duty would be to make minimum wage proposals to the Minister. He would publish the proposals and would be able to refer them back to the board once only for reconsideration, before making a wage order which would be binding on the employers and workers covered by it. This proposed law represents an improvement on the , present Labor Law, but it, too, has been pending in the Ministry of Social Affairs since 1952, with no effort being made to enact this draft into law. Settling Disputes A third proposed law prepared at the Ministry of Social Affairs is concerned with the regulation of disputes.^2. pjot all persons are temperamentally equipped for intervening in and attempting to settle other people's disputes, but those who are can be helped or hindered by the 12 There is, yet, no law which regulates disputes in Iraq although the Labor Law provided for it. Article 22 of jthe Law states: "Regulations may be issued in connection with the setting up of conciliation and arbitration bodies for the purpose of settling disputes between employers and workers." P. 15 276] laws under which they operate. The nature of a society can he deduced from its industrial relations legislation. The proposed law provides that any dispute between an employer or employers and five or more workers concerning wages or conditions of employment, may be reported to the Minister by either of the parties to the dispute. The Minister's task (which he may delegate to an official of the Directorate General of Labor) is to conciliate. The draft also estab lishes the Minister's right to Inquire into the causes and circumstances of any dispute whether it is reported to him or not. Three methods of dealing with disputes are provided according to circumstances: conciliation by the Minister or I a delegated official; arbitration, with the consent of both parties, by a single Independent person appointed by the Minister or by a board of arbitrators representing both parties under an Independent chairman; and mediation at the request of either party by some experienced person chosen by the Minister from outside his Ministry. The essence of legislation of this kind, in the opinion of the writer, is that it should be organic, fitted to the temperament of the people who are to make use of it, and flexible enough to satisfy the golden rule— that no two disputes are alike and each must be settled on its merits. i The regulation of Industrial relations, which is the duty of a Department of Labor, is not, of course, concerned only with settling disputes. The Department must do all it can to promote good relations. It is possible, by encouraging good industrial habits, to minimize the risk of disputes occurring at all. The habit of joint consultation between management and workers may do a great deal to produce the sort of atmosphere in which disputes become less likely, or at least provide a means whereby the first distant rumblings of trouble can be detected. The writer is of the opinion that at all establishments employing more than fifty persons, efforts should be made to set up joint committees where management could meet representatives of the wage~earners at regular Intervals to discuss matters of t common concern. The agendas would vary, but there would be no lack of subjects; working conditions, safety, cleanli ness, drinking water, food and transport arrangements, work discipline, absenteeism, punctuality, improved methods of production, savings fund, provident funds, sports and recreation, and so forth. Workmen1s Compensation Chapter 3 of the Labor Lai*, "which deals with compen sation for employment injuries and diseases, is in working ’ 2?8l order. f,13 In 1951 there were 3*880 cases of temporary incapacity reported, but none of these extended beyond the period of entitlement to ordinary sick leave^ (which is four days for each three months1 service, cumulative). A total of ID 1,758.60? was paid in sixty-three cases of partial permanent incapacity; and a total of ID 1^,858.673 in respect of eighty-three deaths.1^ Chapter 3* however, has become Inadequate to Iraq's present needs, and its benefits have fallen behind those of neighboring countries. Proposals are being considered for a new compensation law generally applicable to wage-earners and lower-grade salaried xrorkers in private enterprises in the towns, with increased benefits payable by the employers and new provisions for commuting periodical payments when these have continued beyond twelve months. The basis suggested is a maximum compensation equal to three years' wages, or ID 300, whichever is the greater sum. To leave a worker or his dependents to get compensa tion from an employer— even with the assistance of a Labor Department— is not a wholly satisfactory way of dealing with 13 Hull, qp.. clt., p. 16A. ^ Loc. clt. Loc. clt. 279 loss of earning power caused by accidents at work or by occupational diseases. National injury insurance may be a better way but this needs very careful preparation, but for the present the responsibility for providing compensation should obviously remain with employers. It is thought, however, that they should be required to insure against t their liabilities. It is hoped that in the very near future Iraq will have a body of legislation on modern lines covering employ ment and labor relations in all their aspects. This writer has dealt with wages and working conditions, with disputes and with certain aspects of social security. The series of new laws and regulations under consideration will, it is hoped, be merged into one Labor Code. There remains to be considered Chapter h of the present Labor Law which concerns ithe formation of trade unions. III. FORMATION OF TRADE UNIONS Chapter 4 of the existing Labor Law— which deals with the formation of labor unions— does not contain a definition of a trade union as it is usually used in the ”free world,” which is: A voluntary association of wsge or salary earners formed for the purpose of improving the remuneration, working conditions and financial and social statue of 28oj Its members by the regulation of their relations with employers, and by representing them at Ministries and elsewhere and by providing benefits for them.16 No regulations have ever been made under the present Labor Law defining the rights and obligations of trade unions or regulating their finances or the manner in which they should be administered. The Right to Organize The Law grants the workers the right to establish trade unions for themselves, in order to care for their special Interests, to spread the spirit of cooperation and assistance between them, to endeavor to effect improvements by educational, cultural, hygienic, social and moral means and to develop the industries in Iraq. Unions may also offer guidance to the public administrations facilitating the application of the Labor Law.17 However, this recogni tion of the right to organize is not without limitations, and certain articles which deal with the formation of trade unions have granted the administrative authorities great powers and control over the life of any trade union. The Administration (executive authority) is the source which has ^ Loc* cit. Directorate of Labor, Labor Law No. (72) For 1936 as Amended by Law No. (36) for 19^-2 (Baghdad; Government Press, 1952)7 p. 15* 281 the right to grant or cancel the permission which entitles any union to exist. Furthermore, union members cannot complain to the Court tirhen they are refused permission to organize or when their permission is cancelled by the Administration. The discussion in the following subjects will Illustrate the last three statements. Some requirements for the formation of unions. — In order to form a union the Iraqi Labor Law requires that the union must obtain permission from the Minister of Social Affairs for this purpose.!® To obtain this permission workers must submit an official application which should Include the following conditions: 1. The application shall be signed by at least 20 workers who practice Identical or similar professions in an administrative unit. 2. They shall be of good reputation and satisfactory conduct, and shall have not been convicted of non political crime or a misdemeanour derogatory to honour. 3. The application shall include the address of the Association and the party whom it represents, the headquarters of it, the names of the signatories of the application as being the founding committee, their qualifications and their addresses. L. The application shall be accompanied by a copy of the Association's internal regulations.19 The Law, therefore, requires that members of a union 1°c* clt♦, Article 2k. 19. Loc. clt. 282 be related to each other with a certain technical relation ship (that which requires union members bp practicing identical or similar professions in an administrative unit). The Law does not permit formation of unions by workers in different industries, the reaon being, according to Dr. Aziz,20 that such workers do not have common interests which they all desire to protect. Furthermore, it is said that workers of different industries who belong to one single union may engage in political activities rather than caring for the day-to-day interests of the workers.21 Such unions may also result in conflicts between workers since their interests differ and vary.22 Whether the reasoning just given is Justified or not, prohibition by the Iraqi Law of the formation of what is called in America “the Labor Union,"23 it seems to this 20 Muhammed Aziz, Social Economics (Baghdad: The Education Press, 1950), p. 221. ^ Loc. cit. ^ Loc. clt. 23 “Labor Union" is one of the structural types of labor organization. Its membership is not confined to the single craft or the separate industry, but includes all wage-earners of every description. The best example is perhaps the former Knights of Labor (of.the' United, States) in whose polygot organization were to be found ministers, physicians, and even.employers. Present illustrations exist in America in small local groups where the town : ________________________________________________ __ .... writer places a restriction on the right of workers to organize freely; at least it results in weaker unions than otherwise. In Iraq, where the towns generally provide too few workers in any one trade for the formation of separate craft union, it is necessary to permit the formation of unions whose membership is not confined to a certain craft or separate industry. Permission to form such unions may result in stronger unions under the circumstances in Iraq. Another restriction on the right to organize is the requirement that the application asking for the formation of any union must be approved by the Minister of Social Affairs before a union can exist. Thus Article 25 of the Labor Law states: The Ministry of Social Affairs shall, within 15 days of the receipt of the said application, issue a decision stating whether it has been accepted, rejected or amended. Such decisions are applicable by the appli cants to the Council of Ministers for final decision.2^ Indeed such provision leaves ample room for abuses if and when an anti-labor Administration is in power. In fact, examples of such abuses have already taken place in Iraq as the discussion in Chapter V shows. Advanced nations have provides too few workers in any one trade for the formation of separate craft locals. The One Big Union in Western Canada is perhaps the best existing illustration. 2k Directorate of Labor, op. clt., p. 15* 2Bh long realized the Importance of the right to organize freely and therefore placed no conditions or limitations, as those set in the Iraqi Labor Law, for the formation of labor anions. In France a union exists officially if only Its internal regulations and names of its organizers and admin istrators are left with the municipality.25 in England unions can be formed and can function even without notifying the government, although the British Labor Law gives the union which is registered with the government more privi leges.2^ In the United States, under the Taft-Hartley Law, the responsible government agency must certify the union if a majority of the workers involved vote for it, and if the union has filed the proper reports and affidavits. In Egypt unions can exist and function without any previous permission being granted by the Government, although they are required to register before exercising any union activity.27 To avoid the possibility of future abuses It would be reasonable if Iraq would do away with the above mentioned provision and instead follow the lines adopted by 25 Aziz, op. clt., p. 221. Loc. cit. Loc. cit. 28 5 the other countries. An Important point concerning this provision (Article 25) must not he overlooked. It deals with the source where the workers may appeal the decision of the Minister. The Law states that ". . . such decisions are applicable by the applicants to the Council of Ministers for final deci sion."2® This definitely means that the Law does not permit workers to complain to the court when the Minister of Social Affairs or later the Council of Ministers refuse to grant permission for forming a union. It has been sald2^ in justification of this provision that refusal of the Minister and the Council of Ministers to grant workers the permission to form a union is an administrative act, therefore it is not right to complain - to the court. This is because, it is said, it will be contradictory to the famous constitutional principle, namely, the principle of separation of power between the executive, judicial and legislative bodies. Another reason given for the justification of the "provision" is the fear of the government that some of the workers seeking to form a union may constitute a danger to the national safety, 2 8 Directorate of Labor, oj>. clt., p. 15. Aziz, op. clt., p. 222. 286 therefore the Government must have the right to prevent such dangers from talcing place. If the Government, it is said, abuses its right the Parliament would object, check and prevent such abuses. Indeed, it is not difficult to see that the "provi sion1 * implies restrictive intentions to the right of workers to organize freely. The only appeal workers have, who have been denied permission to organize a union, is to the Council of Ministers, of which the Minister who originally refused to permit the group to organize is a member. This does not guarantee enough security to the workers that their case will be studied and the decision will be Issued fairly. Here are two reasons. First, because the Council of Ministers does not have sufficient time to consider and study the complaints carefully. Secondly, because the decisions issued by the Council of Ministers would frequently be similar to those Issued by the Minister of Social Affairs who refused permission for workers to organize. This is because the Council of Ministers would either be influenced by the Minister or because the Government (Council of Ministers) usually follows the same line of policy and therefore would not contradict the decision of the Minister. Therefore, this writer believes this "provision*1 must be amended if Iraq desires to 28,7 guarantee free rights for workers to form unions. Who can form the trade unions? — Mention has heen made in this chapter that the Labor Law covers only the industrial workers. Therefore, agricultural workers, restaurant workers, retail and shop clerks, theatre and casino workers, drivers of private automobiles, barbers and domestic workers all are excluded. In other words, all the rights and privileges granted by the present Labor Law, such as the limited working day, compensation for accident or sickness, vacations, paid sick leave, one day's rest every week with pay, and so forth, do not apply to the above mentioned workers. To make the situation worse, those workers also have no right to form unions.It seems to this writer unthinkable that the agricultural workers, who form the majority of the workers of Iraq, are not covered by the law. Furthermore, exclusion of the agricultural and certain other workers from the right to form trade unions is in violation of the resolution passed by the International Labor Organization, in its Convention held in 19^8. The Convention passed a bill named "agreement of trade unions freedom and protection of the right to form unions." A Jill* ante. definition of worker. See also: Aziz, op. cit,., pp. 22^—225* 288 copy of the agreement was sent to all members for the purpose of putting its principles into effect, fhe agree ment aimed at granting all workers and employees, regardless of their profession or their classification, the right to form unions freely without any permission required to exercise this right. Provisions of the present Labor Law of Iraq concern ing the right to organize are definitely in contradiction with the resolutions just mentioned. Urgent action by Iraq to comply with these resolutions 1b needed and would be in the interest of the country. Abolition of unions. — Another restriction placed on the free right of workers to form unions comes from the provision which concerns abolition of unions. According to the Law, the Council of Ministers may, at the request of the Minister of Social Affairs, abolish the union if it is proved that the union had breached the public security or the safety of the State or its conduct would be harmful to the Interests of work. Article 28 of the Law thus states: In the event of It being proved that an association is conducting its affairs in a manner which would lead to a breach of the public security or the safety of the State or what would lead to the prejudice of the Interests of the work and the proper performance 31 Ibid., p. 231. thereof, the Council of Ministers may, at the request of the Minister of Soelal Affairs cancel the permit.32 The method of dealing with the abolition of a union In Iraq is, therefore, an administrative one, and the decision issued by the Council of Ministers in this concern is final and cannot be appealed to another authority. The court has no control in this matter and therefore appealing the decision to it is ruled out. Indeed, a great danger to the right to organize freely lies in such a provision, although the legislature may have put it in the Law with only good intentions. A bad or an anti-labor government may easily deprive the workers of the right to organize on the basis of this “provision,” especially such government as knows in advance that no court would review the case or is able to contradict its decision. Evidences of such danger has been demonstrated in the previous chapter where it has been shown that in many occasions unions were closed or abolished by the government (Council of Ministers) without any legitimate reason being given. This provision must be removed from the Law for another reason, in that it contradicts the resolution of Article IV of the above mentioned agreement passed by the ^ Directorate of Labor, op. clt., p. 16. 290 International Labor Organization. The agreement stated that the power of abolishing trade anions should not rest in the hands of the administrative authorities (the government).33 In other words, the power of abolition of trade unions should rest in the hands of the court as is the case in the United States, England and France. This author believes that amendment of the Labor Law in the manner recommended In this chapter is urgently needed for the Interest of Iraq and Iraqi workers. 33 Aziz, o|>. olt., p. 231. 3** Loc, cit. Xft CHAPTER VII SUMMARY/AND CONCLUSIONS / / / / / / // I./ SUMMARY / / / ('c^yv\p/e’ ^w ¥* S-f 0-f i. Trade unions today have become known as a major institution of society in all of the democratic nations. This recognition is the result of the fact that labor organizations have been found capable agencies for protect ing the rights and advancing the interests and improving the standards of living of wage workers— who undoubtedly constitute one basic element, both as consumers and producers, in the advancement of the economy and progress of any country. The western world long ago recognized these facts and hence paid serious attention to the advancement of the welfare of workers, and therefore recognized their organi- o zatlons. The United States, for example, recognized the right of workers to fora unions as early as possible. The right to bargain collectively, which is the essence of unionism, has long been recognized in the United States by various labor legislations: the National Industrial Recovery Act of June 16, 1933; the Wagner-Connery National Labor Relations Act of July 5, 1935; and the Taft-Hartley Act of 19^7» although, to be sure, the legal right of labor to 292 organize and to bargain collectively long antedated these measures. Consequently, labor unions in the United States grew in power and proved they are agencies capable of raising the standard of living of the workers and improving the working conditions. Thus, the American workers today enjoy one of the highest, if not the highest, standard of living ever attained by workers anywhere in the world. The high stan dard of living, in turn, resulted in higher productivity. This high standard of living and high productivity are not, of course, the result of free and powerful labor organiza tions alone. The high stage of economic and technological development reached, and the fair labor policy reflected in legislations also count for this rise in the standard of living and in the productivity of the American worker. Labor legislation in the United States has fairly protected the workers against the hazards of work— namely, unemployment, physical impairment resulting from industrial accidents, occupational diseases, sickness, and old age. It has also provided protection against low wages, unhealthy working conditions, long hours, and so forth. All this, plus the fair employment policy, set as one of the chief goals of the administration, also account for the rise in the standard of living and the high productivity of 293 American workers. The high standard of living and produc tivity are expected to increase in the future by virtue of better and more peaceful industrial relations as a result of the greater attention and recognition given to workers' organizations by the American society— the employer, the government, and the public. The situation of the Iraqi workers Is not as satis- CD factory as it is in the United States. It is not even a fair situation. The income of the Iraqi workers is extremely low; this is reflected in their standard of living. There are no exact statistical figures of the workers' income available to enable the reader to imagine the degree of the lowness of their standard of living. But a rough estimate of the national income, made by the statistical Office of the United Nations, puts the annual income per head In 19^9 at eighty-five dollars. A broad estimate of this kind, which embraces both the very high incomes of the landowners and rich people, and the very low incomes of the workers and the peasants, conveys a general ized impression of poverty and the low standard of living of• the Iraqi workers. The low standard of living of the Iraqi workers is not due to the extreme lowness of their income alone, but also to the high cost of living, low productivity, irregular 29^ employment, unhealthy conditions of work, the feudal system, unsanitary living conditions, illiteracy, child labor, exploitation of women workers, dirt, disease, filth, suffer ing, undernourishment , malnutrition, unsatisfactory labor law, persecution for unionist activities, and general social, political and economic injustice. But probably, the most responsible cause for the unsatisfactory living standard of Iraqi workers is the government’s attitude toward labor. With the exception of the Labor Law, the Iraqi government has never made a really serious step in the direction of improving the welfare of the workers. What is worst is that the Labor Law is violated without fear of prosecution. The government has seldom complied with its provisions, although the law is defective and deficient. Its wording is loose, its scope narrow, and its definition of a worker is far from clear. Its application presents difficulties with many categories of workers, and Its articles relating to the formation of unions can be construed by any anti-union government to be against organized labor. Finally, this study shows that the Law does not provide either fair protection against the hazards of work or enough security against an anti-labor government. In view of these difficulties, early in this century 295! Iraqi workers in many fields yielded to the universal urge for organization to improve their standard of living and protect their rights. But government policy toward Iraqi labor unions has taken the form of actual suppression and the use of unconcealed force. The free atmosphere necessary for labor organizations to operate and grow in power as agencies capable of raising the standard of living has been completely eliminated. Consequently, the Iraqi union movement is weak and plays an insignificant role in helping the workers out of,their miserable situation toward a better living. the government, many violent strikes and bloody incidents have taken place in recent years between workers and the government forces. These conditions are forcing the labor movement to associate with the political parties, and in many instances forcing workers to belong to the underground communist party, since most of the time the legal political / parties are abolished by force. These conditions are also threatening to curb the economic health of the nation. The governmental policy toward workers and their organizations is unsound on many grounds. First, it is As a result of persecution of unionist activities by II. CONCLUSIONS 296 forcing the workers to organize secretly and enables the political parties to organize them. Second, it has tended to introduce elements of distrust, hatred and hostility between workers on the one hand, and the government and employers on the other. Third, it has tended to produce a discontented labor force. The outcome of such a policy, of course, is unrest and an unstable situation in industry. This policy, if continued, will have grave consequences for the economic and industrial development of the country. It will tend, first, to discourage new investments by both local and foreign N . investors, which would aid in the utilization and develop ment of the idle resources necessary for the progress of the country. Second, it will tend to increase the number of strikes, thereby halting the work which affects the total productivity of the nation. Third and finally, it will continue to maintain low living standards for the workers which will lower their productivity. Recognition of the right of workers to organize freely and the recognition of their activities as a means of improving the working conditions, welfare, and standard . of living is of the utmost importance to the economic and Industrial development of Iraq. BIBLIOGRAPHY BIBLIOGRAPHY A. BOOKS Aziz, Muhammed, Social Economics. Baghdad: The Education Press, 1950. 28^ pp. Bessisso, Saadi, Public Finance and Financial Leglalation of Iraq. Baghdad: Tafeyldh Press, 1950. A27 pp» Blake, R. P., Industrial Safety. New York: Prentice-Hall, Inc., 19^5^ ^35 pp. Bloom, Gordon F., and H. R. Northrup, Economics of Labor and Industrial Relations. Philadelphia: The Blakiston Company, 1950. 7^9 pp. Burns, Evelina M., The American Social Security System. Boston: Houghton Mifflin Company, 19WI %6Q pp.. Daugherty, Carroll R., Labor Problems in American Industry. Boston: Houghton Mifflin Company, 19^9’ ! IO66 pp. Davey, Harold W., Contemporary Collective Bargaining. New York: Prentice-Hall, Inc., 1952. 532 pp. Davis, Pearce, and G. J. Matchett, Modern Labor Economics. New York: The Ronald Press Company, 195^* 659 PP» Galenson, Walter, Comparative Labor Movements. New York: Prentlee-Hall, Inc., 1952. 579 pp. Leiserson, William M., Right and Wrong in Labor Relationsi California: University of California Press, 1938. 86 pp. Lloyd, Seton, The Middle East. Great Britain: The Broadwater Press, 1950. 357 PP* Longrigg, Stephen Bamshley, Iraq, 1900 to 1950♦ London: Oxford University Press, 1953• ^36 pp. Lowe, Boutelle E., The Internetlonal Protection of Labor. New York: The Macmillan Company, 1951. 59A pp. 2991 i Miller, Glenn W. , American Labor and the government. New York; Prentice-Hall, Inc., 19557 658pp. ; Problems of Labor. New York: The Macmillan Company, 1951* 560 pp.• Millls, H. A., and E. E. Montgomery, Laborfs Risks and Social Insurance. New York: McGraw-Hill Book Company, 1938. 453 pp. Petterson, Florence, Survey of Labor Economics. New York: Harper and Brothers, 1947. 843 PP» Phelps, Orme W., Introduction to Labor Economics. New York: McGraw-Hill Book Company, Inc., 1950. 554 pp. Reynolds, Lloyd G., Labor Economics and Labor Relations. New York: Prentice-Hall, Inc., 1954. 722 pp. Segal, M, J., The Norr 1 s-LaGuardia Act and the Courts. Washington, D.C.: American Council on Public Affairs, 1942. 30 pp. Shlster, Joseph, editor, Readings In Labor Economics and Industrial Relations. Chicago; J. B. Llppincott Company, 1951. ~E6>T~pp. Taft, Philip, Economics and Problems of Labor. Pennsylva nia: Stackpole and Sons, 1942. 99^ PP» Thomas, Ivor, The Socialist Tragedy. New York: The Macmillan Company, 1951* 249 pp. Whight, Bakke E., and K. Clark, Unions, Management and the Public. New York: Harcourt, Brace and Company, 1948. 938 pp. Witte, E. E., The Government in Labor Disputes. New York: McGraw-Hill Book Company, 1932. 352 pp. Yoder, Dale, Manpower Economics and Labor Problems. New York: McGraw-Hill Book Company, Inc., 1950." 661 pp. B. PERIODICAL ARTICLES 1 1 Case Studies in Industrial Peace: Menls Clothing Industry," Monthly Labor Review, LXVIII (May, 1949), 542—44. 300 Kossoris, M. D., “Illness Absenteeism in Manufacturing Plants,“ Monthly Labor Review, LXVI (March, 1918), 265- 68. “Legislative Restrictions on the Closed Shop,” Monthly Labor Review, LXIV (June, 1 9 W , 1056-59* Mathews, Robert E., and others, "Survey of Ohio Practice in Issuance of Labor Injunction," Ohio State University Law Journal, V (June, 1939)* 267—98. Stauffer, Thomas B., “Labor Unions in the Arab States," The Middle East Journal, VI (Winter, 1952), 83-89*. 0. ESSAY Hull, W. J., "The Task of the Department of Labor," The Iraq Times. Baghdad: The Times Press, 1952. Pp. 87-166. D. PUBLICATIONS OF LEARNED ORGANIZATIONS Directory of the Kingdom of Iraq, a Historical, Administra tive, Commercial, Industrial., and Agricultural Directory of the Kingdom of Iraq. Assembled and published under the sponsorship of the Al-Amin and Khurl Company. Baghdad: Government Press, 1936. 1053 PP* E. OFFICIAL PUBLICATIONS Annual Report of the Iraqi Directorate General of Labor 19^9* Baghdad: The Government Press, 1951* 18 pp. Economic Development of Iraq, a report published for the International Bank for Reconstruction and Development. London: The Johns Hopkins Press, 1952. ^63 pp* Gamble, F. H., Economic and Commercial Conditions in Iraq: A report to the Commercial Relations and Exports Department of Trade. London: His Majesty1s Stationary Office, 1949* **2 pp. Iraq Directory, a General and Commercial Directory of Iraq with a Supplement for the Neighboring countries, pub lished under the supervision of the Ministry of Interior. Baghdad: The Times Press, 1936. 722 pp. 301 Iraq, Ministry of Social Affairs, Directorate General of Labor and Social Security, Labor Law Ho. (72) for 1936 as Amended by Law No. (36) for 19A2. Baghdad: The Government Press, 1952. 46 pp. Kingdom of Iraq, a Report by the Committee of Officials. Baltimore: The Lord Baltimore Press, 19*1-6. 118 pp. Manpower Problems, A Report published by the Internet ional Labor Organization on Manpower Problems in the Near and Middle East. Switzerland: Imprlmerle Centrale De Lausanne Press, 1951* *<6 pp. Social Security, a Report by the International Labor Organization on Social Security in the Near and Middle East. Genera: Impremerie Centrale Press, 1950. 69 pp. E* E* Labor Management Act of 19*f7, Public Law 101, 80th Congress. Washington, D. CY:Government Printing Office. 30 pp. F. UNPUBLISHED MATERIALS Garis, R. L., unpublished lectures given to the students of economics in the course on Labor Relations in 1952, University of Southern California. Kutib, Ahmad M., unpublished notes dictated to the senior students of the College of Commerce and Economics of Baghdad in the course of Social Economics in 1950-51* G. NEWSPAPERS Al-Ahall (Baghdad) June 8, 1933* July 22, 19*4-6, August 26, 1952, September 26, 1952, October 8, 1952, December 15, 1953, December 16, 1953, December 21, 1953* Al-Estlklal (Baghdad) October A, 19b6, Daily News (Los Angeles) September 2, 195*4-* Loa Angeles Times, September 2, 195*4-*. O nlw eraftv of Sou*h «rn r-allforma L .lttre r>

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Creator Tellew, Fued Henna (author)

Core Title Labor unions in Iraq

Degree Master of Science

Degree Program Economics

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag economics, labor,Middle Eastern Studies,OAI-PMH Harvest

Language English

Contributor Digitized by ProQuest (provenance)

Advisor Garis, Roy L. (committee chair), Phillips, E. Bryant (committee member), Pollard, Spencer D. (committee member)

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c20-443963

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Identifier EP44741.pdf (filename),usctheses-c20-443963 (legacy record id)

Legacy Identifier EP44741.pdf

Dmrecord 443963

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Rights Tellew, Fued Henna

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Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the au...

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