Workers’ Council

Yugoslavian labor organization

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 15, 2026

Quick Summary

Workers' councils were a key component of Yugoslavia's system of socialist self-management that emerged after its break with the Soviet Union in 1948. This system aimed to decentralize economic decision-making, moving away from the highly centralized Soviet model.1

Under this system, workers were organized into Basic Organizations of Associated Labour (BOALs) based on their role in production. These BOALs elected representatives to workers' councils, which then made decisions regarding pay, investment, and production goals. The councils also appointed a director to manage daily operations. This model extended beyond factories to include public institutions like schools and health clinics.1

While intended to increase flexibility and worker involvement, the system faced challenges. Worker involvement consumed significant time and efficiency, and management councils often prioritized short-term wage increases over long-term investments. Dissatisfaction with self-management and the redistribution of profits contributed to the secession of Croatia and Slovenia.1

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

2 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

economic planning
Yugoslavia
…state-owned enterprises was given to workers’ councils that would decide their own production programs according to profitability, with prices subject to negotiation. Investments were partly controlled by the enterprises themselves out of profits or by the central planners, partly financed from bank credits. But lack of effective central control, and…
Read More
…state-owned enterprises was given to workers’ councils that would decide their own production programs according to profitability, with prices subject to negotiation. Investments were partly controlled by the enterprises themselves out of profits or by the central planners, partly financed from bank credits. But lack of effective central control, and…
Read More

Bosnia and Herzegovina
Economy of Bosnia and Herzegovina
…to be run by elected workers’ councils, which in turn elected the management boards of the bodies. In practice the level of workers’ control was extremely variable from enterprise to enterprise, since ordinary workers often were not motivated to participate except in matters such as hiring, firing, and benefits and…
Read More
…to be run by elected workers’ councils, which in turn elected the management boards of the bodies. In practice the level of workers’ control was extremely variable from enterprise to enterprise, since ordinary workers often were not motivated to participate except in matters such as hiring, firing, and benefits and…
Read More