This medal is called:”Banner of Labor”. It was given for excellent and long-standing service in strengthening and consolidating the DDR, especially for achieving outstanding results for the national economy.
The order was established in 1954 in one class. In 1974 it was divided into three classes. The 1st Class was the highest class and each class included a cash award. It could be givin to individuals or company’s and organizations. The decorated persons received an annual pension wich the DDR government paid until the wall fell.
The East German government was inspired by the older Soviet-Russian Order of the Red Banner to design this award.