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1953 Plzeň uprising

Demonstrations in Plzeň against currency reform

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Through Collective farming

Background

After the communist party took over power in 1948 it started to concentrate production on heavy industry, especially in armament production. The agricultural sector was forcibly collectivised. But these policies led to shortages of customer goods, especially food, accompanied by an inflation of 28 percent. The government's reaction was to increase the prices of state-supplied goods at the start of 1953. This led to growing disaffection among people, and to short-lived strikes.

The next step to be implemented was a currency reform, which amounted to a devaluation of savings. All savings were devalued in the ratio of fifty to one, all salaries in the ratio of five to one – small groups of people were exempted. All obligations of the state were abolished. Rationing of food at subsidized prices was stopped and work quotas increased. The reform was announced on 31 May at 22:00, after months of rumors and denials by state representatives.

Plzeň

Plzeň is a city in western Bohemia with large concentration of heavy industry, the largest factory being the famous Škoda Works. In the previous years and decades, the city saw many strike actions by workers demanding improvement of their living standards. Many of the strikes were led by the Communist party itself.

As long as the Party's reforms after 1948 favoured the workers in heavy industry, there was no reason to expect troubles. But in 1953 the factory management of Škoda Works deliberately paid off the wages for May one week earlier - thus reducing their values by 80% after the currency reform was announced.

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