29. The management of a large undertaking, treated as a separate administrative unit, is organized with a view to securing, in as large a measure as possible, the utilization of the technical and commercial experience accumulated by the undertaking; for which purpose there are included in the composition of the new management not only representatives of the laborers and employees of the enterprise (to the number of one-third of the general numerical strength of the management) and of the Central Administration itself (to the number of one-third or less, as the Central Administration shall see fit), but also, as far as possible, members of former managements, excepting persons specially removed by the Central Administration and, upon their refusal, representatives of any special competent organizations, even if they are not proletariat (to a number not exceeding one-third of the general membership of the management).
30. When nationalization is introduced, whether of the entire branch of the industry or of separate enterprises, the Central Administrations are permitted, in order to facilitate the change, to pay to the highest technical and commercial personnel their present salaries, and even, in case of refusal on their part to work and the impossibility of filling their places with other persons, to introduce for their benefit obligatory work and to bring suit against them.
31. The former management of each nationalized undertaking must prepare a report for the last year of operation and an inventory of the undertaking, in accordance with which inventory the new management verifies the properties taken over. The actual taking over of the enterprise is done by the new management immediately upon its confirmation by the principal committee, without waiting for the presentation of the inventory and report.
32. Upon receipt in their locality of notice of the nationalization of some enterprise, and until the organization of the management and its administration by the Central Administration (or the principal commissioner, or institution having the rights of the principal commissioner) the workmen and employees of the given enterprise, and, if possible, also the Council of Workmen’s Deputies, the Council of National Economy, and Council of Professional Unions, select temporary commissioners, under whose supervision and observation (and, if necessary, under whose management) the activity of the undertaking continues. The workmen and employees of the given enterprise, and the regional councils of national economy, of professional unions, and of workmen’s delegates have the right also to organize temporary managements and directorates of nationalized enterprises until the same are completely established by the Central Administration.
33. If the initiative for the nationalization of a given enterprise comes, not from the general governmental and proletariat organs authorized for that purpose, but from the workmen of a given enterprise or from some local or regional organization, then they propose to the Supreme Council of National Economy, in the bureau of organization of production, that the necessary steps be undertaken through the proper production sections, according to the decree of 28th February regarding the method of confiscating enterprises.
34. In exceptional cases local labor organizations are given the right to take temporarily under their management the given enterprise, if circumstances do not permit of awaiting the decision of the question in the regular order, but on condition that such action be immediately brought to the notice of the nearest provincial council of national economy, which then puts a temporary sequestration upon the enterprise pending the complete solution of the question of nationalization by the Supreme Council of National Economy; or, if it shall consider the reasons insufficient, or nationalization clearly inexpedient, or a prolonged sequestration unnecessary, it directs a temporary sequestration or even directly re-establishes the former management of the enterprise under its supervision, or introduces into the composition of the management representatives of labor organizations.
35. The present order must be furnished by the professional unions of All Russia to all their local divisions, and by the councils of factory committees to all factory committees, and must be published in full in the Izvestia of all provincial councils of workmen’s and peasants’ deputies.
Published March 7, 1918.