Basic Organization of Associated Labour

In Yugoslavia, after breaking with the Soviet Union in 1948, a system of worker self-management was adopted. This system, codified in the Law on Associated Labour of 1976, organized workers into Basic Organizations of Associated Labour (BOALs). Each BOAL was based on a worker's specific role in production. These BOALs elected representatives to workers' councils, which then managed the organization, set production goals, and determined pay and investment policies. This system applied to factories, businesses, and public institutions alike. However, worker involvement was time-consuming and often led to prioritizing short-term wage increases over long-term investments. This, along with profit diversion to less-developed regions, contributed to the secession of some republics and significant economic challenges for the remaining federation. Organized labour refers to the collective action of workers to improve their working conditions.12