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 basic 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.