Abstract
This chapter analyses the methods of wage control used in the Soviet bloc countries. As already mentioned in the introduction, this analysis is on a general level and comparative in nature. It is for the most part a systematisation of the methods applied or, in other words, a discussion of models of wage regulation as they exist nowadays. The analysis of the actual application of these models in individual countries is left to Part Three. (See also Appendixes 1 and 2.)
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Notes
S. Shkurko, Sotsialisticheskii trud, no. 1, 1975.
In the USSR the last adjustment of wage rates was in 1969–75 and before that in 1956–65 (1956–60 in productive and 1964–5 in non-productive industries). See B. M. Sucharevskii, in Trud i zarabotnaia plata v SSSR, 1975, p. 249. In Czechoslovakia the last adjustment was in 1973, and before that in 1958–60; in Poland in 1972–6, before that in 1960; in Hungary in 1976, and before that in 1971; the GDR is now engaged in adjustment and was before in 1958–60. See
B. Sucharevskii, Sotsialisticheskii trud, no. 4, 1974.
E. I. Kapustin, in Trud i zarabotnaia plata v SSSR, 1975, pp. 280–1; Supplement to Hospodářské noviny, no. 4, 1974; and
B. Sucharevskii, Sotsialisticheskii trud, no. 4, 1974.
The increase should be differentiated; wage rates of sub-groups marked with higher skills and more difficult working conditions should increase by a greater rate, whereas the range within the sub-group should be narrowed. See A. Szávai, Munkaügyi Szemle, no. 1, 1977, and Munka, no. 2, 1977, and no. 1, 1978.
What happened in Poland in the 1960s is a good example. See B. Fick, Zycie gospodarcze, no. 1, 1964. T. Kierczynski and U. Wojciechowska, (1972, pp. 126–7) drew the following conclusion from the Polish example. ‘The direct limitation of the wage-bill (from the centre) led to a concealment of reserves in labour productivity in the economy and also to lack of enterprises’ interest in a rational economising on labour force.’
A case in point was the Hungarian experience of 1968–70. One of the reasons for resorting to average wage regulation in 1968 was the fear that wage-bill regulation would lead to unemployment. (See J. Lökkȯs, Közgazdasági Szemle, no. 2, 1976.) In fact, just the opposite happened. For more, see Chapter 9.
J. Wilczek, Közgazdasági Szemle, no. 1, 1972.
J. Lökkös, Közgazdasági Szemle, no. 2, 1978.
In the recently reformed Polish system, though planning has become more flexible and less directive, binding targets from the centre are retained. Apart from the mandatory normatives connected with wage regulations and incentives, the appropriate minister is authorized to assign enterprises the following targets inter alia: value of the shipments of goods for the market, introduction of new products, value of exports and imports broken down according to geographical areas and size of investment credits. See J. Marzec in Nowy system ekonomiczno finansowy w organizacjach przemyslowych, 1974, p. 79; and
J. Olszewski, Nowe drogi, no. 4, 1974.
A. Topiński, in Zarys systému funkcjowania przemyshwych jednostek inicjua̧cych, 1975, p. 149.
L. Zsóka, Munkaügyi Szemle, no. 11, 1976.
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© 1979 Jan Adam
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Adam, J. (1979). Regulation of Basic Wages. In: Wage Control and Inflation in the Soviet Bloc Countries. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-04892-2_3
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DOI: https://doi.org/10.1007/978-1-349-04892-2_3
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