Truck system
Encyclopedia
A truck system is an arrangement in which employees are paid in commodities or some currency substitute (referred to as scrip
), rather than with standard money. This limits employees' ability to choose how to spend their earnings—generally to the benefit of the employer. As an example, scrip might be usable only for the purchase of goods at a company-owned store, where prices are set artificially high. The practice has been widely criticised as exploitative and similar in effect to slavery
, and has been outlawed in many parts of the world.
While this system had long existed in many parts of the world, it became widespread in the 18th and 19th centuries, as industrialisation left many poor, unskilled workers without other means to support themselves and their families. In a prosecution brought against a Manchester
cotton manufacturer in 1827 one worker gave evidence that he had received wages of only two shillings in nine months; the rest "he was obliged to take [in goods] from the manufacturer's daughter, who was also the cashier".
The practice is ostensibly one of a free and legal exchange, whereby an employer offers something of value (typically goods, food or housing) in exchange for labor, with the result being the same as if the laborer had been paid money and then spent the money on those necessities. The word truck came into the English language within this context, from the French troquer, meaning to "exchange" or "barter
". A truck system differs from this kind of open barter or payment in kind
system by creating or taking advantage of a closed economic system in which workers have little or no opportunity to choose other work arrangements, and can easily become so indebted to their employers that they are unable to leave the system legally. The popular song "Sixteen Tons
" dramatizes this scenario, with the narrator telling Saint Peter
(who would welcome him to Heaven upon his death) "I can't go; I owe my soul to the company store".
Origin of the saying "I'll have no truck with that" to mean "I will have nothing to do with that system".
Scrip
Scrip is an American term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of employees and also as a means of payment in times where regular money is unavailable, such as remote coal towns, military bases, ships on long...
), rather than with standard money. This limits employees' ability to choose how to spend their earnings—generally to the benefit of the employer. As an example, scrip might be usable only for the purchase of goods at a company-owned store, where prices are set artificially high. The practice has been widely criticised as exploitative and similar in effect to slavery
Slavery
Slavery is a system under which people are treated as property to be bought and sold, and are forced to work. Slaves can be held against their will from the time of their capture, purchase or birth, and deprived of the right to leave, to refuse to work, or to demand compensation...
, and has been outlawed in many parts of the world.
While this system had long existed in many parts of the world, it became widespread in the 18th and 19th centuries, as industrialisation left many poor, unskilled workers without other means to support themselves and their families. In a prosecution brought against a Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
cotton manufacturer in 1827 one worker gave evidence that he had received wages of only two shillings in nine months; the rest "he was obliged to take [in goods] from the manufacturer's daughter, who was also the cashier".
The practice is ostensibly one of a free and legal exchange, whereby an employer offers something of value (typically goods, food or housing) in exchange for labor, with the result being the same as if the laborer had been paid money and then spent the money on those necessities. The word truck came into the English language within this context, from the French troquer, meaning to "exchange" or "barter
Barter
Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
". A truck system differs from this kind of open barter or payment in kind
Payment in kind
Payment in kind refers to payment for goods or services with a medium other than legal tender ....
system by creating or taking advantage of a closed economic system in which workers have little or no opportunity to choose other work arrangements, and can easily become so indebted to their employers that they are unable to leave the system legally. The popular song "Sixteen Tons
Sixteen Tons
"Sixteen Tons" is a song about the life of a coal miner, first recorded in 1946 by American country singer Merle Travis and released on his box set album Folk Songs of the Hills the following year...
" dramatizes this scenario, with the narrator telling Saint Peter
Saint Peter
Saint Peter or Simon Peter was an early Christian leader, who is featured prominently in the New Testament Gospels and the Acts of the Apostles. The son of John or of Jonah and from the village of Bethsaida in the province of Galilee, his brother Andrew was also an apostle...
(who would welcome him to Heaven upon his death) "I can't go; I owe my soul to the company store".
Origin of the saying "I'll have no truck with that" to mean "I will have nothing to do with that system".
See also
- debt bondageDebt bondageDebt bondage is when a person pledges him or herself against a loan. In debt bondage, the services required to repay the debt may be undefined, and the services' duration may be undefined...
- sharecroppingSharecroppingSharecropping is a system of agriculture in which a landowner allows a tenant to use the land in return for a share of the crop produced on the land . This should not be confused with a crop fixed rent contract, in which a landowner allows a tenant to use the land in return for a fixed amount of...
- statareStatareStatare were married agricultural laborers in Sweden who received payment primarily in kind. The system existed mainly in the south of Sweden and reached its maximum extent in the late 19th century. Thereafter the system gradually declined until it was formally abolished in 1945.These agricultural...
- company townCompany townA company town is a town or city in which much or all real estate, buildings , utilities, hospitals, small businesses such as grocery stores and gas stations, and other necessities or luxuries of life within its borders are owned by a single company...
- Truck ActsTruck ActsTruck Acts is the name given to legislation that outlaws truck systems, which are also known as "company store" systems, or debt bondage. Such laws date back in Britain to the 15th century but have also been implemented in other countries.-History:...