Regulations concerning the allocation of their income by collective
farms among investment funds and various social and other obligatory
funds and distribution to members were modified in late 1970 or early
1971 with a view to stimulating the members' interest in raising the
efficiency of production. Under the old system, distribution to members
was made from residual funds remaining after all statutory public and
social obligations were met. The revised farm statutes authorize the
farms' general assemblies to allocate net income in ratios ranging from
18 to 25 percent for investment and from 75 to 82 percent for
consumption. In actual practice, however, income distribution is
reported to follow a somewhat different pattern, which tends to reduce
the share available for distribution to members. The new regulations
have not altered the generally acknowledged fact that farm incomes
remain very low, particularly on the poorer farms.
The system of remuneration for collective farmers was also modified in
1970 with a view to strengthening work incentives. The new method
provides for monthly payments on account, in cash and in kind, based on
the farms' planned annual receipts and for a share of profits in excess
of those planned. Payment to individual members is to be based on
centrally established work norms and rates of pay for various categories
of operations, similar to the practice in industry and construction. The
system is intended to relate individual remuneration more closely to the
quantity and quality of the work performed and thereby to eliminate
inequities of the earlier method. It is also meant to provide a steady
and assured income to all members who contribute a specified minimum of
workdays per month. If, for reasons beyond its control, a farm's
receipts turn out to be lower than the amount legally distributed to its
members during the year, the shortage may be covered by a long-term bank
credit. As a further inducement for farmers to remain on the land, their
social security benefits, generally much lower than those of industrial
workers, were substantially liberalized.
The extent to which the new pay system has been put into practice is not
known. Effective January 1, 1971, a minimum wage of 300 lei (for value
of leu, see Glossary) per month was to be paid to all male farmers who
worked regularly at least twenty days and to all women who worked
fifteen days. A survey published by a collective farm organ in March of
that year found that within a single county twenty-one out of twenty-two
farms had not taken the trouble to forward the necessary documents to
the Agricultural Bank and apply for the funds with which to pay their
members. Various excuses were offered by the farm chairmen for their
lack of action. The chairmen, farm directors, and brigade leaders,
however, were reported to have taken appropriate steps to secure their
own minimum pay.
Public-domain text, read in full here on John Shaqi.
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