17 Direct and Indirect Employer The concept of indirect employer includes both persons and institutions of various kinds, and also collective labour contracts and the principles of conduct which are laid down by these persons and institutions and which determine the whole socioeconomic system or are its result. The concept of "indirect employer" thus refers to many different elements. The responsibility of the indirect employer differs from that of the direct employer-the term itself indicates that the responsibility is less direct-but it remains a true responsibility: the indirect employer substantially determines one or other facet of the labour relationship, thus conditioning the conduct of the direct employer when the latter determines in concrete terms the actual work contract and labour relations. This is not to absolve the direct employer from his own responsibility, but only to draw attention to the whole network of influences that condition his conduct. When it is a question of establishing an ethically correct labour policy, all these influences must be kept in mind. A policy is correct when the objective rights of the worker are fully respected. The concept of indirect employer is applicable to every society, and in the first place to the State. For it is the State that must conduct a just labour policy. However, it is common knowledge that in the present system of economic relations in the world there are numerous links between individual States, links that find expression, for instance, in the import and export process, that is to say, in the mutual exchange of economic goods, whether raw materials, semimanufactured goods, or finished industrial products. These links also create mutual dependence, and as a result it would be difficult to speak, in the case of any State, even the economically most powerful, of complete self-sufficiency or autarky. Such a system of mutual dependence is in itself normal. However, it can easily become an occasion for various forms of exploitation or injustice and as a result influence the labour policy of individual States; and finally it can influence the individual worker, who is the proper subject of labour. For instance the highly industrialized countries, and even more the businesses that direct on a large scale the means of industrial production (the companies referred to as multinational or transnational), fix the highest possible prices for their products, while trying at the same time to fix the lowest possible prices for raw materials or semi-manufactured goods. This is one of the causes of an ever increasing disproportion between national incomes. The gap between most of the richest countries and the poorest ones is not diminishing or being stabilized but is increasing more and more, to the detriment, obviously, of the poor countries. Evidently this must have an effect on local labour policy and on the worker's situation in the economically disadvantaged societies. Finding himself in a system thus conditioned, the direct employer fixes working conditions below the objective requirements of the workers, especially if he himself wishes to obtain the highest possible profits from the business which he runs (or from the businesses which he runs, in the case of a situation of "socialized" ownership of the means of production). It is easy to see that this framework of forms of dependence linked with the concept of the indirect employer is enormously extensive and complicated. It is determined, in a sense, by all the elements that are decisive for economic life within a given society and state, but also by much wider links and forms of dependence. The attainment of the worker's rights cannot however be doomed to be merely a result of economic systems which on a larger or smaller scale are guided chiefly by the criterion of maximum profit. On the contrary, it is respect for the objective rights of the worker-every kind of worker: manual or intellectual, industrial or agricultural, etc.-that must constitute the adequate and fundamental criterion for shaping the whole economy, both on the level of the individual society and State and within the whole of the world economic policy and of the systems of international relationships that derive from it. Influence in this direction should be exercised by all the International Organizations whose concern it is, beginning with the United Nations Organization. It appears that the International Labour Organization and the Food and Agriculture Organization of the United Nations and other bodies too have fresh contributions to offer on this point in particular. Within the individual States there are ministries or public departments and also various social institutions set up for this purpose. All of this effectively indicates the importance of the indirect employer-as has been said above-in achieving full respect for the worker's rights, since the rights of the human person are the key element in the whole of the social moral order.
Source: Laborem Exercens (Vatican.va)