Transformation of the principles of remuneration of workers and employees in the Soviet metallurgy during 1922 – 1928 period (based on collective agreements and tariff agreements of the Sickle and Hammer plant)

Abstract

Solving the tasks of restoring Soviet industry during the NEP years was accompanied by the formation of a new system of labor relations and the search for effective forms of labor stimulation, among which wages were the main one. The main objective of the study was to identify and characterize the key principles of remuneration of workers and employees of the metallurgical industry, their changes and impact on wage differentiation in 1922-1928. On the basis of collective agreements and tariff agreements of the Sickle and Hammer plant, which in the period under review was experimental, new forms of remuneration were worked out. As a result, it was this company that had to demonstrate the effectiveness of the state's salary policy. Collective agreements during the NEP years reflected most aspects of labor activity. The duration of collective agreements gradually increased, they began to regulate a greater number of controversial issues in the field of remuneration. Due to high inflation, the terms and forms of salary payments were standardized. During the NEP period, there was an increase in wage differentiation at the Sickle and Hammer plant, both between different groups of workers and within them. However, this trend was partially offset by the actions of trade unions and the government aimed at equalizing earnings. Wages declined in the period 1923-1928, as workers faced tougher and more systematic requirements for defective products and their payment, with an increase in the production plan. Trends in time-based payment are determined mainly by the difference between tariff rates and minimum wages, which grew during the NEP period for all categories of workers. Bonus payments characterized the highest—paid group of factory workers - high-level employees. Their earnings were formed with the help of bonuses, earnings and the tariff rate, which made it consistently high.