ABSTRACT

The incentive mechanisms considered below deal with Soviet industry, management as well as workers, and material incentives exclusively. In the Soviet collective wage systems considered below, this simple income-sharing is replaced by more or less complicated bonus-sharing schemes. However, the effects of a fixed wages fund are analysed below as a model of the experiment introduced at the Shchekinskij chemical combine in Tula province in April 1967. A separate experiment beginning in July 1983 in the design departments in five Leningrad enterprises is a direct continuation of the Shchekino method. However, in an article subtitled 'How to Develop the Shchekinskij Method', economics professor G. Popov has proposed a system of redundancy as a consistent development of the Shchekino method. Some of the measures were elaborated by a recent decree, which stressed the role of technological progress and extended the 'new conditions for economic activity' of the experiment to apply permanently to all industrial enterprises from January 1987.