The Economic Councils are organized according to a geographical division. They consist of District Economic Councils and the National Economic Council. The former consist of the union of District Workers Councils with the corresponding representatives of the employers and other interested classes of the population. The National Economic Council consists of the union of the National Workers Council with the corresponding representatives of the employers and other “interested classes of the population.” The Constitution does not state precisely what is to be understood by this last expression. In the Constitutional Committee it was unanimously agreed that the consumers shall be particularly represented in the Economic Councils. The creation of these Councils is obligatory and legislators are bound by the Constitution to enact the necessary laws to this effect.
In addition there may be created “autonomous bodies” ([Article 156], par. 2) the administration of which is incumbent upon Economic Councils organized not by regions but by industries. Unlike the regional Economic Councils, the creation of these autonomous bodies is only optional; they must be organized, says the Constitution, “in case of urgent necessity.”
The Constitution specifies with a little more detail than for the Workers Councils, the powers of the future Economic Councils. These have for their purpose, in addition to general economic duties, to co-operate in the execution of socialization laws. In addition the Economic Councils of the autonomous bodies are charged with the administration of enterprises placed under the economic collectivity, such as coal, potash, etc.[62]
Finally, the National Economic Council must have certain political functions, and thereby the Constitution makes concession to the supporters of the institution of an Economic Parliament. The solution adopted constitutes a middle ground between the views held by the latter and those of the partisans of a purely formal democracy. It gives to the National Economic Council a certain political influence, but it does not accord it absolutely any power of execution. It has the right to be heard on all bills of social and economic character before they are presented to the Reichstag by the Cabinet. It has, in addition, the right itself to propose laws on social and economic matters, and the Cabinet is obliged, even if it does not approve of these projects, to take them before the Reichstag. It may only present its own point of view as opposed to that of the Economic Council. Finally, the latter may send a representative from among its members to present its proposal before the Reichstag. The situation of the Economic Council is, on the whole, on the social and economic field very analogous to that of the Reichsrat.
The existence and the activity of free vocational associations, that is to say, the unions of workers and employers, are not affected by the institution of Councils. [Article 165], par. 1, expressly recognizes vocational organizations of workers and employers. In theory the spheres in which the Councils and these organizations respectively move are distinct, and the differences between them naturally result from the difference in the aims of the two organizations. After the Constitution, as well as before, these unions of employés and workers had as their function the regulation of the conditions of labour and of wages with the aid of collective agreements; whereas the Workers Councils and the Economic Councils are concerned with questions other than the contractual determination of the conditions of labour and wages. But we shall soon see that in practice this separation is extremely difficult to maintain and that it gives rise to considerable difficulties between the Councils and the unions.
3.—FACTORY WORKERS COUNCILS.
I.—Of the different organisms provided by the Constitution, which shall be created first?
Some wanted to start from above. They wanted, said these, to organize first the National Economic Council, and to charge it immediately with the important functions attributed to it by the Constitution, as in the conditions prevailing in Germany at present these powers should not remain without titular direction. They desired also that the National Economic Council prepare and propose the bills necessary for the organization of inferior councils. In other words, the National Economic Council was asked to be the Constituent Assembly for the future Economic Constitution.
Others wanted to commence from below, so as to erect the edifice progressively, and not to construct an upper story before the one below it was sufficiently built to afford a solid foundation.