e plagued
the economy and have been the target of frequent criticism and
administrative action by the leadership are inefficient organization of
labor and poor labor discipline. Inefficient labor organization has been
mainly an outgrowth of inferior management skills. Poor labor discipline
has been a consequence of inadequate work incentives. In 1972 the
minister of labor and social welfare estimated that more than 20 percent
of the working time was lost through idling and other violations of
labor discipline.

Adequate information on the structure of wages was not available in
mid-1973. The main faults of the wage system that prevailed in early
1973 after repeated revisions, however, were outlined by the BKP leader,
Zhivkov, and these faults were also discussed by labor ministry
officials from the point of view of their effect on labor productivity.
The basic wage constitutes the main incentive for work; bonuses,
premiums, and honors play a minor role. Because of the large investment
needs for industrial development and the corollary need to restrict
consumption, wages have been kept low, and the rise in wages has been
slower than the growth of productivity.

Basic wage pay has been based on the place of employment and not on the
work performed. Wage scales for identical work have differed
substantially between branches of the economy and industry. In industry,
wage scales have been lower in branches manufacturing consumer goods
than in branches producing capital goods; they have been lowest in
textile mills. Wages have been determined by job classifications within
economic and industrial branches, the workers' level of education, and
length of service. Normal increases in pay for workers remaining in the
same positions have therefore been infrequent.

Slow promotion and the disparity in wage scales contributed to excessive
labor turnover because, under the prevailing conditions of scarcity,
trained workers were able to improve their incomes through a change of
jobs. It also led to irregularities in job reclassification by employers
seeking to retain their workers through increases in pay. Wages have
been raised from time to time by the government through general upward
revisions of pay scales. This method, however, has no incentive value
because it is not directly linked to an improvement in the workers'
performance.

With a view to enhancing the stimulative effect of wages on
productivity, Zhivkov proposed a bas