Truck system, more rarely goods wage system (truck system; to truck = here

to exchange): At least partial payment in goods, such as crops or commodities, instead of payment in money, also called wage in kind. – The eligibility of the truck system depends on whether the employee incurs losses compared to the monetary wage, for example because he cannot exchange the goods or has to offer them below the market price. In times of great scarcity of goods, the wage in kind has great advantages; and in economic history, it provided many dependent employees with a livelihood during periods of famine. In addition, families – and primarily mentally illiterate and immigrant workers’ wives who did not speak the local language and were inexperienced in shopping – were protected from cheating merchants who took advantage of them. In addition, and serving the same purpose, some factory owners set up their own grocery stores that offered inexpensive, high-quality goods for factory employees. The Krupp company in Essen, for example, founded the Kruppsche Konsumanstalt with branches throughout the Ruhr region; these stores enjoyed an extraordinary degree of trust. – Here and there, payment is still made in kind or in the form of services, e.g., “deputats” such as “Haustrunk” for brewery employees; deduction of meals for sailors; deduction of rent for company housing or fees for a car parking space (car park) from the salary. – See deputation, fringe benefits, salary fringe benefits, salary.

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