Law on Associated Labour

Yugoslavia [1976]

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June 30, 2026

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The Law on Associated Labour, codified in Yugoslavia in 1976, was a system of worker self-management designed to address issues with highly centralized socialist models. Under this law, workers were organized into Basic Organizations of Associated Labour (BOALs), based on their role in production. These BOALs elected representatives to workers' councils, which managed daily operations, set production goals, and determined pay and investment policies. This system extended beyond factories to include public service institutions like schools and health clinics. While allowing for some managerial flexibility, the system was criticized for its time and efficiency costs, with management councils often prioritizing short-term wage increases over long-term investments.1

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…socialism, was codified in the Law on Associated Labour of 1976. Each Yugoslav worker belonged to a Basic Organization of Associated Labour (BOAL) that was based on the precise role played by the worker in the production process. The BOALs elected representatives to workers’ councils, which in turn created management…
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…socialism, was codified in the Law on Associated Labour of 1976. Each Yugoslav worker belonged to a Basic Organization of Associated Labour (BOAL) that was based on the precise role played by the worker in the production process. The BOALs elected representatives to workers’ councils, which in turn created management…
Read More