Part I

1. The Central Administration of Nationalized Undertakings, of whatever branch of industry, assigns for each large nationalized undertaking technical and administrative directors, in whose hands are placed the actual administration and direction of the entire activity of the undertaking. They are responsible to the Central Administration and the Commissioner appointed by it.

2. The technical director appoints technical employees and gives all orders regarding the technical administration of the undertaking. The factory committee may, however, complain regarding these appointments and orders to the Commissioner of the Central Administration, and then to the Central Administration itself; but only the Commissioner and Central Administration may stop the appointments and order of the technical director.

3. In connection with the Administrative Director there is an Economic Administrative Council, consisting of delegates from laborers, employees, and engineers of the undertaking. The Council examines the estimates of the undertaking, the plan of its works, the rules of internal distribution, complaints, the material and moral conditions of the work and life of the workmen and employees, and likewise all questions regarding the progress of the undertaking.

4. On questions of a technical character relating to the enterprise the Council has only a consultative voice, but on other questions a decisive voice, on condition, however, that the Administrative Director appointed by the Central Administration has the right to appeal from the orders of the Council to the Commissioner of the Central Administration.

5. The duty of acting upon decisions of the Economic Administrative Council belongs to the Administrative Director.

6. The Council of the enterprise has the right to make representation to the Central Administration regarding a change of the directors of the enterprise, and to present its own candidates.

7. Depending on the size and importance of the enterprise, the Central Administration may appoint several technical and administrative directors.

8. The composition of the Economic Administrative Council of the enterprise consists of (a) a representative of the workmen of the undertaking; (b) a representative of the other employees; (c) a representative of the highest technical and commercial personnel; (d) the directors of the undertaking, appointed by the Central Administration; (e) representatives of the local or regional council of professional unions, of the people’s economic council, of the council of workmen’s deputies, and to the professional council of that branch of industry to which the given enterprise belongs; (f) a representative of the workmen’s co-operative council; and (g) a representative of the Soviet of peasants’ deputies of the corresponding region.

9. In the composition of the Economic Administrative Council of the enterprise, representatives of workmen and other employees, as mentioned in points (a) and (b) of Article VIII, may furnish only half of the number of members.

10. The workmen’s control of nationalized undertakings is realized by leaving all declarations and orders of the factory committee, or of the controlling commission, to the judgment and decision of the Economic Administrative Council of the enterprise.

11. The workmen, employees, and highest technical and commercial personnel of nationalized undertakings are in duty bound before the Russian Soviet Republic to observe industrial discipline and to carry out conscientiously and accurately the work assigned to them. To the Economic Administrative Council are given judicial rights, including that of dismissal without notice for longer or shorter periods, together with the declaration of a boycott for non-proletariat recognition of their rights and duties.

12. In the case of those industrial branches for which Central Administrations have not yet been formed, all their rights are vested in provincial councils of the national economy, and in corresponding industrial sections of the Supreme Council of the National Economy.

13. The estimates and plan of work of a nationalized undertaking must be presented by its Economic Administrative Council to the Central Administration of a given industrial branch at least as often as once in three months, through the provincial organizations, where such have been established.

14. The management of nationalized undertakings, where such management has heretofore been organized on other principles because of the absence of a general plan and general orders for the whole of Russia, must now be reorganized, in accordance with the present regulation, within the next three months (i.e., by the end of May, new style).

15. For the consideration of the declarations of the Economic Administrative Council concerning the activity of the directors of the undertaking at the Central Administration of a given branch of industry, a special section is established, composed one-third of representatives of general governmental, political, and economic institutions of the proletariat, one-third of representatives of workmen and other employees of the given industrial branch, and one-third of representatives of the directing, technical, and commercial personnel and its professional organizations.

16. The present order must be posted on the premises of each nationalized undertaking.

Note.—Small nationalized enterprises are managed on similar principles, with the proviso that the duties of technical and administrative directors may be combined in one person, and the numerical strength of the Economic Administrative Council may be cut down by the omission of representatives of one or another institution or organization.