INDUSTRIAL DISTRIBUTION OF THE GAINFULLY OCCUPIED

Rumania in 1930, with an area of 122,282 square miles-about twice the size of the New England States-had a population of 18,057,028. Of that number, 10,542,900, or 58.4 percent, were gainfully occupied (this term included all persons normally with gainful occupations, whether employed or unemployed when the enumeration was made).

By far the greater number of those gainfully occupied were engaged in agriculture, fishing, and mining. Only 7.2 percent of the gainfully occupied were to be found in industry, the term "industry" being used to include manufacturing, mechanical trades, and the production and distribution of water, gas, and electricity.

TABLE 1.-Distribution of Gainfully Occupied Population in Rumania, by Industry Group and by Sex, 1930

Employment dropped sharply after 1929. In 1931 and 1932, the index number of employment was 24.4 percent less than for the base year of 1929. Beginning with 1934, employment increased until in 1938 the index was 43.9 above 1929.

A system of free public employment offices was established in 1921, and finding of employment for fees was prohibited. These public agencies were to handle employment of every kind, and were given free use of the postal, telephone, and telegraph services. The exchanges had the right to propose and encourage the conclusion of labor agreements in writing. Beyond their normal functions, they were assigned the duty of following the state of the labor market at all times, and of proposing measures to prevent and combat shortage of employment or of labor.

Supervision and administration of the exchanges was vested in the Directorate of Employment Exchange Service in the Ministry of Labor. In 1938 this Directorate was supervising and administering 32 public employment offices throughout the country.

Wages, Hours, and Working Conditions

WORKERS' WAGES

Wage fixing. Industrial wages were fixed largely by collective bargaining which was recognized by law in 1929. In that year also, provision was made for minimum wage boards to fix minimum wages in commercial, industrial, and private transport enterprises. In determining a wage, the board was to take into account such items as tips, board and lodging, and any other perquisites the worker received. Wage controls established in 1941 proved inadequate for a nation at war, and by 1943 the State had established hourly maximum and minimum wage rates for all workers.

Trend of wages, 1929-39.-From 1929 to 1939, using the earlier year as a base, index numbers of money wages and (measured in purchasing power) of real wages in agriculture, industry, transportation, and commerce show a greater variation in money wages than in real wages. The former declined to a low of 61 in 1935, after which date it rose to 69 in 1939. At the same time, real wages went to 116 in 1931, fell to 111 for the next 2 years, then returned to 116 in 1934. From that date, real wages declined yearly until they reached 92 in 1939. These fluctuations in money wages and in real wages in agriculture, industry, transport, and commerce are shown in the following statement, for the years 1929 to 1939.

For 1936, average wages in lei1 with regard to various industries, classes, or sex of workers are shown in table 2. The table indicates that average hourly wages fluctuated from 24 lei (about 24 cents) for unskilled workers in mining and extractive industries to 224 lei (approximately $2.24) for skilled workers in lumber and furniture industries.

Deductions from wages. In 1938, deductions from wages were made for social insurance and for various taxes. Social-insurance deductions amounted to 8 percent. A tax of 4 percent was levied on incomes not exceeding 4,000 lei, and of 8 percent on incomes of more than that amount; pensions of disabled ex-servicemen and of war widows and orphans were exempt from this tax.

Employers were required to deduct the amount of the income tax from sums paid by them to any person with whom they had concluded a labor agreement. The amounts collected were to be paid to the proper authorities in the month following that in which the deduction

The principal unit of Rumanian money is the leu (plural, lei). Although its value, in terms of United States money, has fluctuated, for the purpose of this study the 1939 equivalent of the leu ($0.0101) will be taken. Thus, for all practical purposes, upon the 1939 base, 1 leu is the equivalent of 1 cent in United States

currency.

was made. Other taxes deducted from wages and salaries included the following: National defense (2 percent), road (0.3 percent), and labor fund (0.5 percent). In addition to these deductions, there was a graduated surtax that ranged from 0.7 percent on incomes of 10,000 lei to 1.5 percent on incomes of 40,000 lei.

TABLE 2.-Average Wages in Rumania, 1936, by Industry and Class or Sex of Worker

For the 3 years before the present war, money wages rose steadily, but they did not keep pace with the cost of living. For that reason, the index of real wages fell from 100 in 1936 to 86.2 in 1939, as the following statistics indicate.

1936-
1937

1938

1939

Money
wages

Real wages

Cost of

living

Although no statistical data on money wages and the cost of living were available after 1939, wages and salaries were said to be lagging behind the rise in prices. According to the Economist (London), of January 23, 1943, these price movements were much more pronounced in Rumania than in any other Danubian country. The Economist stated the official price index showed that prices increased roughly by 200 percent from August 1939 to June 1942. During November and December 1942, further increases occurred in the price of sugar (60 percent), petrol (68 percent), and tobacco (50 percent). Postal and traffic rates were also increased. As a result of these advances, wages and salaries, in spite of some increases, were far behind the new general rise.

HOURS OF WORK

In general, normal hours of labor were restricted to 8 per day and 48 per week. Overtime was to be paid for at the rate of time and a quarter. With the advent of war, officials were authorized to extend the hours, when necessary for the war effort, to 72 per week.

VACATIONS WITH PAY

Vacations with pay were provided in a statute of 1929. A worker who had been employed uninterruptedly for 1 to 3 years in the same enterprise was entitled to at least 7 days' leave; from 3 to 5 years, at least 10 days; and from 5 to 10 years, at least 14 days. For periods longer than 10 years, the leave was to be increased by 1 day for each additional year. In no case, however, was annual leave to exceed 30 days. During the whole period of annual leave, the employee was to receive compensation equal to the average wage he received during the 3 preceding months, together with all the allowances corresponding to the days of leave. An employer who failed to grant an employee the statutory annual leave provided above was required to pay such worker compensation equivalent to double the amount which would have been due him for the whole period of leave. If an employee accepted employment in another enterprise during his statutory annual leave, he was deemed to have lost his rights and had to refund to the employer the sums received for the whole of the leave. In addition, he lost his right to annual leave during the following year.

FAMILY ALLOWANCES AND CHILD ENDOWMENT

A law of 1940 provided allowances for the families of men called to the service in a rank not higher than sergeant, if the dependents lacked the necessary means of subsistence. Such allowances were not liable to attachment or deduction on account of any liability of the persons called for military service. The nearest approach to child endowment was found in the paper, cellulose, and cardboard factories in which, after April 1, 1943, the workers were to be paid 500 lei each month for every child under 14 years of age.

COMPULSORY LABOR

Pre-war. In 1937, there was introduced a system of compulsory service on work of public utility for young persons called up for premilitary training. The length of this service was fixed at not more than 60 days a year. Among the kinds of work upon which these persons could be employed were the following: Construction and repair of roads and railways; irrigation; the clearing of watercourses, land drainage, water supply; assistance for disabled persons, war widows, and the victims of catastrophes; defense works; and the reconstruction and repair of historic monuments and churches. The classification, supervision, and instruction of the persons subject to this compulsory employment were in the hands of the officers of the reserve. The work itself was organized by the State or, subject to authorization by the Government or a local committee, by institutions engaging in work of general interest, or by private persons.

Wartime control of labor.-Under the stress of wartime necessity for fully utilizing its manpower, Rumania in 1941 decreed that work was the national duty of the Rumanian people. Every inhabitant of that country was bound to serve the general interests of the State, by serving either in a private occupation or activity or in work of public utility. Only those who worked were entitled to the protection of the State. The State had the right to supervise the presence of each person in the labor field, and to require each person to performwithin the scope of a program of educational or economic activityintellectual or manual work corresponding to his training and position. Under the act of 1941, every inhabitant of the country was required to have a compulsory work card in his possession as evidence of the discharge of his obligation to work. Persons violating this act were liable to imprisonment for not less than 6 months nor more than 2 years. Leaving the labor service without an order or permit to do so was punishable by detention for not less than 10 nor more than 20 days and a fine of from 1,000 to 10,000 lei.

Industrial Relations

LABOR ORGANIZATIONS

The largest organization of workers was the General Confederation of Labor, the Rumanian branch of the International Federation of Trade Unions. The following tabulation gives the membership figures for that organization on January 1 of each year from 1932 to 1939.

The rounded figures for 1938 and 1939 may be explained in part by the virtual State control of unions inaugurated by the Government in 1938.

Many functions formerly performed by the unions have been taken. over by the State. Thus, subsequent to August 1938, a Work and Joy Service, based on the Nazi pattern, was established in the Department of Labor. This service, regularized by an act of 1940, was created with a view to the better utilization of the spare time of workers through the establishment of institutions and activities. connected with the working-class theater; libraries and the press; motion pictures; radio broadcasting; workers' universities and lectures; music; sports and physical training; touring; allotments and any other activities in connection with sound utilization of spare time.

COLLECTIVE AGREEMENTS

During the 10 years, 1929 to 1938, collective agreements declined from 218, affecting 76,495 workers, in 1929, to 80, covering 23,693 persons, in 1933. After 1933, each year except 1936 showed an increase in the number of agreements concluded, but at no time did that number approach the figure for 1929. The following statistics indicate the extent of collective agreements from 1929 to 1938.