ic reform of the wage system that
would be carried out gradually in the 1973-80 period. In presenting his
proposal to the BKP Central Committee plenum, Zhivkov dwelt on some of
the major principles to be embodied in the new wage system. The minimum
wage must be higher, and the rise in wages must be more rapid than
before. Increases in basic wages must be closely linked to individual
performance and to overall labor productivity in general, pay would be
based on performance rather than on formal qualification or length of
service. To this end the sectoral approach to wage determination is to
be abandoned in favor of a functional approach that would establish a
uniform economy-wide wage scale for jobs in relation to their complexity
and hardship and to the specific conditions of work. Rigid pay scales
are to be replaced by flexible schedules providing a range of pay for
each job depending upon the ability and performance of the worker.

The reform would also gradually eliminate the egalitarian aspect of the
current wage system by providing appropriate differentials for workers
with higher qualifications. Under the current system, for example, the
salary of economists has been below that of engineers, and the salary of
engineers has been equivalent to the wages of skilled workers. This
problem has been repeatedly considered in the past, but its solution was
delayed for lack of funds.

Zhivkov also cited shortcomings of the prevailing piecework system and
suggested some long-range remedies for the ills. About 60 percent of all
workers have been employed on the piecework system. Production norms
under the system have been low because of technological advances and the
infrequency of adjustment of norms. Under these conditions workers have
been able to exceed the basic norms to such an extent that payment for
work above the norm has become a large, and in some cases the
predominant, portion of the workers' earnings. Striving to increase
their wages, workers under the piecework system have often resorted to
shortcuts that have lowered the quality of output.

Zhivkov's proposal for improvement included the introduction of more
realistic and more flexible quantitative and qualitative production
norms and a gradual transition to hourly rates of pay with bonus
payments for superior work whenever the quantity and quality of output
is not directly dependent on individual workers. Under these conditions
bonus payments would be linke