Legal Definitions - truck

In historical Scots law, truck referred to a system where workers were paid their wages not in standard currency (money), but in goods, vouchers, or scrip that could only be redeemed at a company-owned store or for services provided by the employer. This practice was common in the 19th century, particularly in isolated communities where employers could control access to necessities. While sometimes presented as a convenience, the truck system was widely abused, often leading to workers being exploited through inflated prices for inferior goods, perpetual debt, and a lack of financial independence. Such systems were eventually abolished due to their exploitative nature.

Here are some examples illustrating the concept of truck:

• Remote Logging Camp: Imagine a logging company operating in a very remote forest area in the 1800s. Instead of paying its lumberjacks in cash, the company issues them "company tokens" or "script" at the end of each week. These tokens are only accepted at the company's general store, which is the only place to buy food, clothing, and supplies for hundreds of miles. The store frequently charges exorbitant prices for basic necessities, and the quality of goods is often poor.

  This illustrates truck because the workers are not receiving their wages in actual money but in a restricted form of payment (tokens) that limits their purchasing power and forces them to buy from an employer-controlled vendor, where prices can be manipulated to the employer's advantage.

• Textile Mill in a Company Town: Consider a historical textile mill that owns all the housing in the surrounding "company town." Workers are paid a nominal cash wage, but significant deductions are automatically made for rent, utilities, and purchases made on credit at the company store. Often, by the time all deductions are made, workers receive very little or no actual cash, and sometimes even accrue debt to the company.

  This demonstrates truck because the employer is effectively paying wages through deductions for goods and services it provides (housing, groceries, utilities), rather than providing a full monetary wage. This system creates dependency and can trap workers in a cycle of debt, as their earnings are immediately consumed by company-controlled expenses.

• Seasonal Agricultural Labor: In the past, some large agricultural estates might have employed seasonal laborers and paid them primarily with "board and lodging" (food and housing) provided directly by the estate, along with a small allowance for other needs. The value assigned to the board and lodging by the employer might be inflated, and workers would have little choice but to accept these terms, as they often traveled long distances and had no other immediate housing or food options.

  This is an example of truck because the primary compensation for labor is in the form of goods and services (food and housing) rather than money. This arrangement could be exploitative if the value of the provided amenities was overstated or if the quality was substandard, effectively reducing the real value of the workers' earnings.