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Organized labor plays an important part in
were approximately 10 times the prewar level
the economic life of the country. Approxi-
late in 1948, while retail prices (mostly foods)
mately 50 percent of non-agricultural workers,
in Paris were nearly 20 times prewar. ECA
or a total of about 4 million, belonged to some
studies indicate that the minimum wage for
labor union at the end of 1948. Industrial
Paris in 1947-1948 was only about 95 percent
(vertical), trade or craft, and "white collar"
of a minimum subsistence budget (compara-
types of unions are found in France as in the
ble to a relief budget in US) for a single
US. The heavy industries, such as coal and
worker. It is, of course, true that farmers
metallurgy, are organized largely along "ver-
and other "self-suppliers" have undergone
tical" lines, while building trades and govern-
considerably less hardship than urban wage
ment employees' organizations are largely of
earners. Compared with their prewar stand-
the "trade" type.
ards, on the other hand, fixed income groups
and salaried workers have suffered even more
Collective bargaining agreements are nego-
tiated by the most representative organiza-
than wage earners.
tions of employers and workers on a national
A more detailed description of the economy
basis in joint committees at the summons of
is given in the following subsections.
the Minister of Labor. The Minister must ap-
prove agreements for them to become binding.
2. Description of the Present Economic Situ-
Before rejecting an agreement he must con-
ation.
sult, but need not accept the recommendation
a. Agriculture.
of, a tripartite national commission. Agree-
The 212,700 square miles which comprise
ments become binding on an entire industry
metropolitan France are admirably suited to
when approved, and they may apply to public
an agriculture of great diversity because of
enterprises as well as private. Wages, how-
variations in types of soil, rainfall, and tem-
ever, have been excluded by law from the
perature. Prior to World War II the approxi-
scope of collective bargaining since the end of
mate distribution of the total land area, ac-
the war. No over-all limitations are placed
cording to utilization, was as follows: arable
on the right to strike in France. There is, at
land, 38 percent; permanent meadow and pas-
the same time, no government conciliation
ture, 21 percent; trees and bush crops (includ-
service, nor any regular machinery for media-
ing vineyards), 3.8 percent; woods and forest,
tion of industrial disputes. In this respect
19.4 percent; and other areas, 17.7 percent.
France apparently is unique, and possibly
The distribution and utilization of arable
some of the turbulence in industrial relations
land among various food and feed crops in
in France is attributable to the lack of such
prewar years were as follows: cereals, 50 per-
machinery.
cent; rotation meadow and field crops, 28 per-
The postwar inflation in France, which was
cent; food crops, 10.5 percent; industrial
reflected in a rise in the index number of the
crops, 2 percent; fallow and unspecified us-
cost of food (in Paris) from 436 for 1945 to a
ages, 8.5 percent.
high of 2,236 in January 1949, appeared to
There are some 3,966,000 farms in France,
have been arrested in the spring of 1949 as a
on which reside approximately 15 million peo-
result of financial and budgetary measures
ple, or about 38 percent of France's total pop-
taken by the government. Nevertheless, in-
ulation. The number of persons gainfully
flation has considerably reduced the non-farm
employed in agriculture in 1948 was 7,400,000
workers' standard of living, and since the war
compared to an average of 7,140,000 during
a less equitable distribution of real income
1934-1938. Even though the average size of the
has prevailed since the war than existed be-
farms in France is 28.7 acres, there are 114,000
fore. "Family allowances" have in some cases
farms over 125 acres in size, and 380,000 farms
mitigated the hardships resulting from the
between 50 and 125 acres in size. Continuing
wage-price disparities that have persisted, yet
postwar dislocations and inefficient use of
these disparities are at least indicative of the
available farm labor have resulted in a farm
problem. Metal workers' wages, for example,
labor shortage estimated at 85,000 in 1948.
SECRET
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"ocrText": "25\nOrganized labor plays an important part in\nwere approximately 10 times the prewar level\nthe economic life of the country. Approxi-\nlate in 1948, while retail prices (mostly foods)\nmately 50 percent of non-agricultural workers,\nin Paris were nearly 20 times prewar. ECA\nor a total of about 4 million, belonged to some\nstudies indicate that the minimum wage for\nlabor union at the end of 1948. Industrial\nParis in 1947-1948 was only about 95 percent\n(vertical), trade or craft, and \"white collar\"\nof a minimum subsistence budget (compara-\ntypes of unions are found in France as in the\nble to a relief budget in US) for a single\nUS. The heavy industries, such as coal and\nworker. It is, of course, true that farmers\nmetallurgy, are organized largely along \"ver-\nand other \"self-suppliers\" have undergone\ntical\" lines, while building trades and govern-\nconsiderably less hardship than urban wage\nment employees' organizations are largely of\nearners. Compared with their prewar stand-\nthe \"trade\" type.\nards, on the other hand, fixed income groups\nand salaried workers have suffered even more\nCollective bargaining agreements are nego-\ntiated by the most representative organiza-\nthan wage earners.\ntions of employers and workers on a national\nA more detailed description of the economy\nbasis in joint committees at the summons of\nis given in the following subsections.\nthe Minister of Labor. The Minister must ap-\nprove agreements for them to become binding.\n2. Description of the Present Economic Situ-\nBefore rejecting an agreement he must con-\nation.\nsult, but need not accept the recommendation\na. Agriculture.\nof, a tripartite national commission. Agree-\nThe 212,700 square miles which comprise\nments become binding on an entire industry\nmetropolitan France are admirably suited to\nwhen approved, and they may apply to public\nan agriculture of great diversity because of\nenterprises as well as private. Wages, how-\nvariations in types of soil, rainfall, and tem-\never, have been excluded by law from the\nperature. Prior to World War II the approxi-\nscope of collective bargaining since the end of\nmate distribution of the total land area, ac-\nthe war. No over-all limitations are placed\ncording to utilization, was as follows: arable\non the right to strike in France. There is, at\nland, 38 percent; permanent meadow and pas-\nthe same time, no government conciliation\nture, 21 percent; trees and bush crops (includ-\nservice, nor any regular machinery for media-\ning vineyards), 3.8 percent; woods and forest,\ntion of industrial disputes. In this respect\n19.4 percent; and other areas, 17.7 percent.\nFrance apparently is unique, and possibly\nThe distribution and utilization of arable\nsome of the turbulence in industrial relations\nland among various food and feed crops in\nin France is attributable to the lack of such\nprewar years were as follows: cereals, 50 per-\nmachinery.\ncent; rotation meadow and field crops, 28 per-\nThe postwar inflation in France, which was\ncent; food crops, 10.5 percent; industrial\nreflected in a rise in the index number of the\ncrops, 2 percent; fallow and unspecified us-\ncost of food (in Paris) from 436 for 1945 to a\nages, 8.5 percent.\nhigh of 2,236 in January 1949, appeared to\nThere are some 3,966,000 farms in France,\nhave been arrested in the spring of 1949 as a\non which reside approximately 15 million peo-\nresult of financial and budgetary measures\nple, or about 38 percent of France's total pop-\ntaken by the government. Nevertheless, in-\nulation. The number of persons gainfully\nflation has considerably reduced the non-farm\nemployed in agriculture in 1948 was 7,400,000\nworkers' standard of living, and since the war\ncompared to an average of 7,140,000 during\na less equitable distribution of real income\n1934-1938. Even though the average size of the\nhas prevailed since the war than existed be-\nfarms in France is 28.7 acres, there are 114,000\nfore. \"Family allowances\" have in some cases\nfarms over 125 acres in size, and 380,000 farms\nmitigated the hardships resulting from the\nbetween 50 and 125 acres in size. Continuing\nwage-price disparities that have persisted, yet\npostwar dislocations and inefficient use of\nthese disparities are at least indicative of the\navailable farm labor have resulted in a farm\nproblem. Metal workers' wages, for example,\nlabor shortage estimated at 85,000 in 1948.\nSECRET"
}