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Today's
featured article
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Broad-sweeping wage
reforms were instituted in the Soviet
Union during the Khrushchev era, from
1956 through 1962. These were intended to move Soviet industrial workers away from the
mindset of overfulfilling quotas that had characterised the Soviet economy
during the preceding Stalinist period, and
toward a more efficient financial incentive. Throughout the Stalinist period,
most Soviet workers had been paid for their work based on a piece-rate
system. Thus their individual wages were directly tied to the amount of
work they achieved. This policy was intended to encourage workers to toil
and therefore increase production as much as possible. The piece-rate
system led to an enormous level of bureaucracy and contributed to huge
inefficiencies in Soviet industry. Additionally, factory managers frequently
manipulated the personal production quotas given to workers to prevent
workers' wages from falling too low. The wage reforms sought to remove
these wage practices and offer an efficient financial incentive to Soviet
workers by standardising their wages and reducing their dependence on
overtime or bonus payments. (more...)
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