The Collectivization in Barcelona embraced construction, the metal industry, bakeries, slaughter houses, public utilities (gas, water, electricity, etc.), transportation, health services, theaters and cinemas, beauty parlors, hotels an boarding houses, etc. ... Wages were equalized. The wages of lower paid workers were increased and high salaries in the upper income brackets reduced.
The Takeover of industry was suprisingly quick. And the takeover proved beyond the slightest doubt that modern industry can be efficiently conducted without stock and bond holders and very highly place executives. Wageworkers and salaried employees (engineers, technicians, etc.) can themselves operate the complicated machinery of modern industry. Examples are endless. Here are a few:
The first measure in the collectivization of the Barcelona street railways was to discharge the excessively paid directors and company stooges. The saving was considerable. A conductor averaged 250 to 300 pesetas a month, while the general director (manager) was paid 5,000 and his three assistants 4,441, 2,384, and 2,000 pesetas respectively. The amount saved through the abolition of these posts went to increase the wages of the lowest paid workers 40% to 60%, and intermediate and higher brackets 10% to 20%. The next step was the reduction of working time to 40 hours per week (but for the war situation, it would have been cut to 36 hours weekly).
Another improvement was in the area of management. Before the revolution, streetcars, buses, and subways were each privately owned by separate companies. The union decided to integrate and consolidate all transportation into an efficient system without waste. This improvement meant better facilities, rights of way, and incomparably better service for the riding public. Fares were reduced from 15 to 10 centimes, with free transportation for school children, wounded militiamen, those injured at work, other invalids, and the aged.
The repair shops worked extra shifts to repair damaged, and remodel old, conveyances. This proved better for all concerned: better service for the public, lower fares, and better wages and working conditions. Naturally the only ones who complained were the investors and high salaried bureaucrats. The Transportation and Communications Workers' Union became a collectivized transportation association. ... The Socialization of Telephone Service
More than half the telephone lines were destroyed by grenades during the fighting. The restoration and repair of telephone connections was imperative. Without waiting for orders from anyone, the workers restored normal telephone service within three days. Thousands of new lines were installed in union locals, militia centers, and committee districts. Once this crucial emergency work was finished a general membership meeting of telephone workers decided to collectivize the telephone system. From within their own ranks the workers chose a management committee. Each district elected its own responsible director.
The subscribers declared that telephone service was better under collectivization than under private ownership. As in collectivized transportation, the ages of the lowest paid workers was significantly increased.
the Catalonian railroads were socialized. For lack of supplies, technical improvements could not be made. With the end of the fighting, railroad operations were resumed under the new union management. The railroads functioned normally without interruption. Fares and rates remained the same. The wages of the lowest paid workers were substantially increased. The sinecures of high salaried executives and useless bureaucrats were abolished. Obviously collectivization meant the end of private capitalist corporations. Stocks, bonds, and debts contracted by the old administration were repudiated.
The railway repair yards in Barcelona manufactured armored vehicles. Only a week after returning to work the first ambulances were built. The equipment elicited the praise of the medical profession. ... There were no high placed functionaries to give orders. The workers themselves designated their technicians and administrators from within their own ranks. And these achievements must to a very great extent be ascribed not to Stakhanovite competition between fellow workers, but to the spirit of good will and mutual aid that inspired the workers.
At the expense of the low wages and poor working conditions for longshoremen, the racketeers dominated the waterfront. The waterfront reeked with graft, waste, and stealing. The racketeers and the ship agents, ship captains, and the longshore bosses were all in collusion. These abuses provoked endless strikes, often accompanied by violence, not only against the employers but against the whole system.
After July 19th, the port and maritime unions got rid of the racketeers and their agents. They decided to deal directly, without go-betweens, with the ship captains and the ship companies. This led to the takeover of harbor operations by the newly formed port workers' collective. While contracts already made between foreign ship companies and their agents could not be cancelled, the unions closely supervised the financial operations of the Spanish agents of foreign ship companies.
These changes brought much higher wages and better working conditions for the longshoremen. By setting aside a certain sum for each ton of cargo handled, unemployment, health and accident protection, and other benefits were provided. The port of Barcelona was socialized.
Water, gas, and electric utilities in almost all Spanish cities were privately owned. The Barcelona Waterworks Company and its subsidiary, Llobregat Waterworks, owned gas and water utilities in many Spanish cities. It was a mammoth corporation capitalized at 275 million pesetas, with an average yearly profit of over 11 million pesetas.
The financiers left the country before July 19th to await the outcome of the fascist military offensive. The syndicates decided to take over and collectivize the properties. The managerial staff was selected from their own ranks by the workers. Under private ownership the workers were refused wage increases and other demands. Under collectivization a minimum daily wage of 14 pesetas and the 36 hour week were instituted. Later, because of the war crisis and shortage of manpower, the workweek was increased to 40 and still later to 48 hours, with equal wages for women, sick benefits, and old age pensions. The savings accruing from good management, and abolition of dividends, profits, interest on loans, etc. were diverted to lowering water rates by 50%. Above all, contributions to the anti-fascist military committee totaling over 100,000 pesetas were made during the first few months after the 19th of July. ...
Plant councils, managers, and administrative boards at every level functioned according to instructions openly discussed and enacted by all the workers assembled in their general plant meetings. All persons in responsible posts were held strictly accountable by union control commissions. Only fully capable and qualified workers of proven personal integrity were deemed fit for responsible posts. It was considered a privilege and an honor to be entrusted with responsibilities by their fellow union members....
Collectivization also embraced smaller establishments: small factories, artisan workshops, service and repair shops, etc. The artisans and small workshop owners, together with their employees and apprentices, often joined the union of their trade. By consolidating their efforts and pooling their resources on a fraternal basis, the shops were able to undertake very big projects and provide services on a much wider scale. Independent artisans with their tools and workshops also joined the trade collectives. The collectivization of hairdressing shops provides an excellent example of how the transition of a small scale manufacturing and service industry from capitalism to socialism was achieved.
The hairdressers of Barcelona, Madrid, and other Spanish cities voluntarily and on their own initiate reorganized their industry. In Madrid the shops were collectivized even before July 19th. The purpose of the collectivization was to obliterate the difference between shopkeepers and their assistants. Hairdressing was not big business. For the Spanish syndicalists, however, socialism and collectivism could not be confined only to the abolition of large scale capitalism. In the reorganization of labor according to the principles of freedom and cooperation there was room for everyone. Even the smallest enterprises employing one or several individuals were entitled to participate in the reorganization of society. Before July 19th, 1936, there were 1,100 hairdressing parlors in Barcelona, most of them owned by poor wretches living from hand to mouth. The shops were often dirty and ill-maintained. The 5,000 hairdressing assistants were among the most poorly paid workers, earning about 40 pesetas per week while construction workers were paid 60 to 80 pesetas weekly. The 40 hour week and 15% wage increase instituted after July 19th spelled ruin for most hairdressing shops. Both owners and assistants therefore voluntarily decided to socialize all their shops.
How was this done? All the shops simply joined the union. At a general meeting they decided to shut down all the unprofitable shops. The 1,100 shop were reduced to 235 establishments, a saving of 135,000 pesetas per month in rent, lighting, etc. The remaining 235 shops were modernized and elegantly outfitted. From the money saved wages were increased by 40%. Everybody had the right to work and everybody received the same wages. The former owners were not adversely affected by socialization. They were employed at a steady income. All worked together under equal conditions ad equal pay. The distinction between employers and employees was obliterated and they were transformed into a working community of equals - socialism from the bottom up.
It is no simple matter to collectivize and place on firm foundations an industry employing almost a quarter of a million textile workers in scores of factories scattered in numerous cities. But the Barcelona syndicalist textile union accomplished this feat in a short time. It was a tremendously significant experiment. The dictatorship of the bosses was toppled, and wages, working conditions and production were determined by the workers and their elected delegates. All functionaries had to carry out the instructions of the membership and report back directly to the men on the job and union meetings. The collectivization of the textile industry shatters once and for all the legend that the workers are incapable of administrating a great and complex industry.
Upon building the collective a management committee of 19 was chosen by the rank and file membership. After three months the management committee reported back to the membership on the condition of the collective and the progress made.
With the crushing of the fascist putsch, the owners transferred themselves and the assets of the industry abroad. But by cutting off dividends and premiums and eliminating high salaried directors and other wasteful expenditures, the collectives were able to pay the increased costs for raw materials. Two new machines for the manufacture of artificial silk were purchased from abroad. The necessary foreign exchange was raised by the sale of finished products abroad.
Every factory elected its administrative committee composed of its most capable workers. Depending on the size of the factory, the function of these committees included inner plant organization, statistics, finance, correspondence, and relations with other factories and with the community.... Collectivization brought better conditions for the workers. The 60 hour work week in some factories was cut to 40. Wages were more equalized. Overtime work was abolished and wages increased from 68 to 70 pesetas. Wage rates were fixed by the workers themselves at union meetings.