COST AND PRODUCTIVITY OF LABOR ON THE RAILROADS OF THE USSR 1950-60

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• Sequence Number: 1
• Publication Date: August 13, 1958
• Content Type: REPORT

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N? 67
ECONOMIC INTELLIGENCE REPORT
COST AND PRODUCTIVITY OF LABOR
ON THE RAILROADS OF THE USSR
1950-60
CIA/RR 141
13 August 1958
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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ECONOMIC INTELLIGENCE REPORT
COST AND PRODUCTIVITY OF LABOR ON Tat RAILROADS OF THE USSR
1950-60
CIA/RR 141
(ORB Project 43.1951)
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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FOREWORD
Since 1950 the railroads of the USSR have demonstrated a growing
capability to handle significant increases in the volume of traffic
and at the same time to reduce the cost of transportation to the con-
sumer and the carrier, to increase net revenues from operations, and to
increase the earnings of employees. Additions to the labor force on
the railroads have been rather small compared with the increases in the
volume of traffic. The increased productivity of labor may be attributed
to investment in modernization of plant and equipment as well as to more
advanced technology and skill of workers.
This report discusses the number of employees on the railroads of
the USSR and the productivity of labor, rates of pay, and total cost of
labor in relation to the total cost of operation and to revenues. It
analyzes the relationship between the cost of labor of railroad employees
and the cost of the total labor force employed by the state. '
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CONTENTS
Page
Summary and Conclusions
1
I. Introduction
3
II. Size of the Labor Force on the Railroads of the USSR
4
A. Total Labor Force on the Railroads, 1950-57
4
B. Comparison of the Labor Force on the Railroads of
the US and the USSR
1.
III. Rates of Pay for the Labor Force on the Railroads of
the USSR
A. Manner of Computing Rates of Pay
1. Salaries
2. Wages
6
6
a. Piece Rates
7
b. Time Rates
7
c. Bonuses, Premiums
and Other Compensation . .
8
3.
Fringe Benefits
9
a. Hospitalization
9
b. Housing
9
c. Other Benefits
9
B. Effect of Wages on the Status of Employees
,10
1. Comparison with Employees in Other Soviet
Industries
10
2. Comparison with Employees on US Railroads .
10
IV.
Total Cost of Labor on the Railroads of the USSR,
1950-60
10
V.
Productivity of Labor on the Railroads of the USSR
11
I
l
i
A. Quantitative Measure of Productivity, 1950-60 . . . .
11
B. Relationship of the Productivity of Labor to Costs
and Value of the Railroad Product
12
Comparison of Productivity of Labor on the Railroads
of the US and the USSR
13
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VI. Effect of Improvements to the Railroad System of the
USSR on the Cost and Productivity of Labor 14
A. Dieselization and Electrification 14
15
B. Other Improvements
VII. Estimated Relationship of the Cost of Labor to Revenue
on the Railroads of the USSR 16
Appendixes
Appendix A. Statistical Tables 17
Appendix B. Methodology
39
Tables
1: Estimated Employment on the Railroads of the USSR,
1950-60
2. Percentage Distribution of Total Railroad Employmentin
the USSR, by Function
3. Percentage Distribution of Operating Employees on the
Railroads of the USSR, by Function, 1950 and 1954 .
4. Percentage of the Total Number of Operating Employees
on the Railroads of the USSR Represented by Selected
Occupations
18
20
21
5. Comparison ofthe Labor Force on the Railroads of the
US and the USSR, 1950-56 22
6. Comparison of Estimated Average Annual Earnings of
Railroad Employees and of the State-Employed Labor
Force-in the USSR, 1950-56 23
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7. Estimated Average Annual Earnings of Selected Groups
of Railroad Employees in the USSR . . .... . . . . .
8. Monthly Wage Rates for Selected Employees of the
Ministry of Railroad Transport of th6 USSR, Selected
Years, 1954-57
Page
24
9. Monthly Wage Rates for Signaling and Communications
Employees of the Ministry of Railroad Transport of the
USSR, 1955 25
10. Average Annual Earnings per Employee for Selected
Industries in the USSR, 1955 26
11. Comparison of Average Annual Earnings in the US and the
USSR, 1950-56 26
12. Cost of Labor on the Railroads of the USSR, 1950-60 27
13. Estimated Cost of Labor, Average Annual Earnings of
Employees and Net Operating Income of the Ministry of
Railroad Transport of the USSR, Selected Years,
' 1950-60 28
..14: Annual Earnings of Railroad Employees and of the State-
Employed Labor Force in the USSR, 195060 29
15. Productivity of Labor on the Railroads of the USSR,
1950-60 30
16. Productivity of Labor on Selected Railroads of the USSR,
1955 31
17., Comparison of Operating Revenues and Operating Costs
of Rail Transport in the USSR, Selected Years, 1950-60 32
18. Productivity of Labor of Railroad Employees in the US
and the USSR, 1950-56 33'
19. Savings in Manpower as a Result of Increasing Productiv-
ity of Labor on the Railroads of the USSR, 1950-60 . . . 34
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Page
20. Reductions in the Operating Labor Force and Increases in
'Productivity of Labor Resulting from Conversion from .
Steam to Electric and Diesel-Electric Traction on the
Railroads of the USSR 35
21. Estimated Cost of Labor per Traffic-Kilometer on the
Railroads of the USSR, 1950-60 ,36
22. Operating Costs and Operating Revenue on the Railroads
of the USSR, Selected Years, 1950-60 37
Illustrations ,
Following Page
Figure 1. USSR: Railroad Employees and Wages, 1950-56
(Chart)
Figure 2. USSR: Converted Two-Axle Freight Car Used as
Living Quarters (Photograph) 10
Figure 3. US and USSR: Productivity of Labor by Railroad
Employees, 1950-56 (Chart) 12
Figure 4. USSR: General View of ?a Mechanized Classification
Yard (Photograph) 16
Figure 5. USSR: Railroad Car Retarding Device (Photograph) 16
Figure 6. USSR: Automatic Central Switch. and Signal Control
Panel (Photograph)
Figure 7. USSR: Electro-Pneumatic Switch Control Panel
(Photograph) ?
Figure 8. USSR: Two-Way Yard Communications System
(Photograph)
Figure 9. USSR: Walkie-Talkie for Yard Walkers
(Photograph)
Figure 10. USSR: Operator Selecting 'Tracks and Controlling
Switches (Photograph)
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16
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(ORR Project 43.1951)
COST AND PRODUCTIVITY OF LABOR ON THE RAILROADS OF THE USSR*
1950-60
Summary and Conclusions
The total cost of labor in the Ministry of Railroad Transport of
the USSR (Ministerstvo Putey Soobshcheniya -- MPS) is estimated to
have been about 36 billion rubles** in 1957, an increase of more than
8 billion rubles above the estimate for' 1950. By 1960 the annual cost
of labor on the railroads of the USSR probably will reach about 37 bil-
lion rubles. Continuous gains in the productivity of labor, however,
have contributed to a reduction in the cost of labor per traffic kilo-
meter*** of 36 percent since 1950. At the same time, both the average
annual earnirts per employee and the net operating revenue have in-
creased.
Total annual earnings of the labor force on the railroads of the
USSR represented an estimated 8.6 percent of the earnings of the total
state-employed labor force in 1950, declined to 6.9 percent by 1957,
and should decrease to 5.6 percent by 1960. This trend is a result of
a relative decrease in the size of the labor force on the railroads as
well as of a relative increase in the average annual earnings of the
remainder of the state-employed labor force. Projection of,the present
trend indicates that by 1960 the estimated average annual earnings of
the 'Soviet railroad labor force may be slightlyless than the national
average for the total state-employed labor force.
Operating labor costs now constitute an estimated 45 percent of the
total operating costs of Soviet railroads. The estimated cost of labor
per unit of traffic has diminished substantially while traffic has in-
creased. Therefore, based on the present rate structure, the margin
between total costs and total revenue may be expected to widen. Gross
operating revenue in 1956 is estimated to have been 37.3 percent more
than total operating costs, and by 1960, assuming the present rate
sticture is maintained, it should be about 84 percent more than the
total operating costs. This operating surplus could be passed on to the
* The estimates and conclusions contained in this report represent
the best judgment of ORE as of 1 July 1958.
** The official rate of exchange is 4 rubles to US $1, which_is not
necessarily an accurate reflection of the dollar value.
*** Traffic-kilometers are the simple addition of freight ton-kilometers
and passenger-kilometers.
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consumers of rail transport in tAe form of decreased rates or could be
used to offset the heavy capital investment which has been necessary
to produce the decreased operating expenses. As yet, there is no indi-
cation of Soviet intentions on the disposition of this estimated surplus,
although under the Soviet system the entire surplus could be allocated
to other parts of the economy.
The MPS, with a total labor force of about 3.4 million in 1957,
employs about 6.6 percent of the total state-employed labor force of
the USSR. By 1960, in spite of a considerable increase in traffic, it
is estimated that the labor force of the MPS will decrease to about
3.3 million, or about 5.7 percent of the total state-employed labor
force. Increasing productivity of labor, as a consequence of moderniz-
ing equipment and of improving technology, is responsible for decreasing
requirements for labor, regardless of increasing traffic. Soviet data
on the productivity of labor, as well as on average earnings, are based
on the category of operating employees.* Productivity of labor of th'e
Soviet railroad labor .force has increased from 403,000 traffic-kilometers
per operating employee in 1950 to about 683,000 traffic-kilometers per
operating employee in 1957. By 1960, dieselization and electrification,
together with other technological improvements, should make possible an
increase to about 934,000 traffic-kilometers per operating employee.
Since 1955 the USSR has obtained a greater increase in productivity
from its railroad labor force than that obtained in the total state-
employed labor force. If the Soviet railroads maintain the same rate
of increase in productivity of labor as that attained in 1955, 1956,
and 1957, by 1960 they will overfulfill the goals planned for produc-
tivity of railroad labor by a very wise margin.
In comparison with US railroads, Soviet use of railroad labor appears
wasteful, and productivity is low. If the Soviet and US railroad labor
* The term employeea in this report means all wage earners and salaried
personnel (rabochiy i sluzhashchiy -- translated literally as "workers
and employees" from Soviet texts). The terms operating and nonoperating
denote Soviet categories for which no precise definition is available.
Usage, however, indicates that operating includes all employees of line
functions directly engaged in the production of freight- or passenger-
kilometers, including the administrative and clerical personnel necessary
to these functions.
The remaining personnel of the MPS referred to as nonoperating would
then presumably include headquarters personnel, both in Moscow and in
the various railroad administrations (planning, records, legal, politi-
cal, and the like); hospital and resort personnel; and employees of re-
lated production and construction enterprises, as well as employees of
training establishments and publishing houses.
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forces are placed on a comparable basis, the US employs about 1 worker -
per equivalent- unit of traffic to 2 workers in the USSR because the
productivity of the Soviet railroad employee is only about 56 percent
of his US counterpart. Great gains in productivity of labor may be
expected on the Soviet railroads during the next 15 years, however, as
the system is converted progressively to diesel and electric motive
power. The railroads of the OS, now are virtually completely dieselized,
whereas the railroads of the USSR still handle about 80 percent of the
traffic with steam traction.
The average annual earnings of the labor force on the railroads of
the USSR are about 6.5 percent higher than the average for the state-
employed labor fOrce. In the US, by comparison, railroad employees
earn about 24.6 percent more than the average for the nonagricultural
labor force.
I. Introduction.
Railroads, the principal means of transportation in the USSR, have
had, and must expect, ever-increasing demands for their services. Be-
cause future demands for civilian labor in the USSR are expected to
increase more rapidly than the supply, the demands of increased traffic
on the railroads must be met primarily by increased productivity of
labor, unless, of course, Soviet authorities adopt other policies or
-measures to increase the allocation of labor to the MPS.
Before 1950, Soviet authorities achieved increased productivity of
labor by limited investment in modernization and by the substitution
of improved operational techniques for those in general use -- a pro-
cedure referred to by the USSR as "utilization of internal reserves."
By 1950, however, this means of increasing productivity had largely
been exhausted.
From 1950 to 1955 the USSR turned its attention to modernization
and improvement of the existing plant and facilities -- such as im-
proved signaling, better communications.) larger freight cars, double
tracking, and more efficient handling equipment for both freight and
passenger service. On some lines, dieselization and electrification
also were introduced. These large capital expenditures increased pro-
ductivity of labor to the extent that the railroad sector was able to
support the growing Soviet economy and at the same time to decrease,
its proportionate share of the expanding labor force. -
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Beginning in 1956, Soviet railroads initiated a dynamic shift to
diesel and electric traction while expanding the types of modernization
already under way. The favorable effect's of this program of moderniza-
tion on the productivity of the labor force are being demonstrated
significantly and may be expected to continue.
II. Size of the Labor Force on the Railroads of the USSR.
A. Total Labor Force on the Railroads, 1950-57.*
The labor force of the MPS has grown from about 3 million em-
ployees in 1950 to more than 3.4 million in 1957 (approximately 6.6 per-
cent of the total state-employed labor force of the USSR) but may be
expected to decline to about 3.3 million in 1960. Total employment in
the MPS may be divided into approximately 2 million operating employees
and 1.4 million nonoperating employees.
A comparison of employment by function within the operating sec-
tor of the industry in 1950 and in 1954 indicates no significant shifts
in relative employment, but with an increasing use of diesel and electric
traction, the relative percentage of employees in locomotive service
probably will decline, while the percentage of other employees, espe-
cially those in traffic management, commercial service-, and passenger
service, may increase.
The percentage of women employed in rail transport in the USSR
has increased significantly. In 1937, women represented only 17.5 per-
cent of total employment in the MPS, but in 1956 they represented 33.5
percent 1/** compared with 5.5 percent of the labor force on US rail-
"roads. Women employed in rail transport in the USSR are engaged gener-
ally in all types of activities except extra heavy or hazardous work,
being especially important as station attendants, engineers, economists,
planners, bookkeepers, and statisticians.
B. Comparison of the Labor Force on the Railroads of the US and
the USSR.***
The labor force on the railroads of the US, with somewhat more
than 1 million employees, is only about one-half the size of its counter-
part in the USSR.**** Total employment on Class I railroads in the US
has decreased from 1,221,000 in 1950 to 1,042,000 in 1956, and it is
estimated that this trend will continue for the next few years. E./ The
* See Tables 1 through 4, Appendix A.
*** See Table 5, -Appendix A.
**** See V, C, p. 13, below.
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estimated comparable labor force on the railroads in the USSR has in-
creased from 2,013,000 in 1950 to 2,281,000 in 1956, although it is
estimated that the number may decline slightly within the next few years.'
The US employs an average of 0.5 man for technical maintenance
per kilometer of railroad, and the USSR employs 1.4 men. In the US, com-
plements of 111,000 men maintain a large locomotive inventory, and Soviet
railroads employ 216,900 men to maintain a comparable number of loco-
motives. Another sharp difference occurs in the number of administrative
and managerial personnel employed on railroads in the two countries. In
the US, which has a significantly larger operating length of railroads,
administrative and managerial personnel include 183,000 men, or an aver-
age of 0.6 man per kilometer of line. In the USSR, such personnel number
approximately 260,000, or an average of 2.3 men per kilometer of line. 1/
The growth of the labor force on the railroads of,the USSR has
resulted from the rapidly increasing demands placed on rail transport
by the Soviet economy. Increased productivity of labor, however, is .
making it possible to decrease the number of workers employed in rela-
tion to the total labor force employed by the state. In the US, where
highways, inland waterways, and pipelines play a much more important
role, the size of the railroad labor force has decreased. Had it not
been for the increased productivity of labor by the railroad labor force
of the USSR, the disparity in the relative size of the labor forces of
the US and the USSR undoubtedly would be even greater.
III. Rates of Pay for the Labor Force on the Railroads of the USSR.*
The average annual earnings of the labor force on the railroads of
the USSR have increased moderately from an estimate of 8,640 rubles in
1950 to an estimate of 9,422 rubles in 1956, or an increase of about
9 percent. The average earnings of the labor force on the railroads of
the USSR, therefore, were about 6.5 percent better than were the average
earnings of 8,850 rubles for employees in the state-employed labor force
in 1956. The relative earning position of railroad employees in the
USSR has been declining, however, because their average earnings in 1950
were 13.7 percent above the estimated national average for the entire
state-employed labor force.
There is a considerable range in the annual earnings of various
railroad personnel. Some locomotive engineers, for example, may earn
as. much as 3,000 rubles per month,12/ but unskilled laborers draw as
little as 300 rubles per month. Also, the average annual earnings of
operating personnel are estimated to exceed those of nonoperating
personnel by about 2 percent.
* See Tables 6 through 11, Appendix A, and Figure 1, following p. 6.
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A. Manner of Computing Rates of Pay.
The forms used for employee compensation on the railroads 'of
the USSR do not differ essentially from those used in the rest of Soviet
industry. Railroad workers and employees are paid mainly on the basis
of units of output, or piecework. Fixed wages are paid only where work-
ing conditions make it impossible to set definite quotas. 2/ In addition
to wages paid for basic time and piecework, workers also receive various
kinds of premiums and bonuses.
1. Salaries. .?./
Managerial and engineering and technical employees are paid
on the basis of a formal salary system (sistema dolzhncistnykh okladov).
Under this system, monthly salaries are set in accordance with standard
lists of positions (tables of organization established by the MPS and
approved by the State Table of Organizations Commission, attached to
the Ministry of Finance). These salary scales differ widely according
to occupation and area. The table of organization approved for each
enterprise or division usually provides a minimum and maximum rate for
each salaried position, and the director is allowed to fix the salaries
of individuals within this range on the basis of merit. Persons having
special qualifications or experience may be paid '"personal salaries" in
excess of the regular salaries fixed for their jobs, such payments re-
quiring specific sanction from the Ministry or Council of Ministers of
the union-republic.
2. Wages. 7/
The basic determinant of the wage for a railroad employee
in the USSR is the labor grade in which his job is classified and the
rate of pay fixed for that grade. The jobs are grouped into grades
on the basis of standard job descriptions in manuals (tarifnokvalifi-
katsionnyy spravochnik) issued by the MPS. Monthly wage rates are
established according to the category to which the divisions and labo-
ratories belong. These wages do not include bonuses for the fulfill-
ment and overfulfillment of a plan or additional pay for work in
hardship areas. Tariff rates and wages on the Far Eastern Railroad
and on the Kirov-Kotlas sector of the Pechora Railroad are 20 percent
higher for laborers and engineering and technical employees and 10 per-
cent higher for salaried employees, and on the Karaganda Railroad the
wages are 10 percent higher for all employees. On the Kozhva-Vorkuta
sector of the Pechora Railroad the wages are 50 percent higher for all
employees than are the wages on the Far Eastern Railroad; on the
Krugobaykal'sk sector of the East Siberian Railroad, wages are 30 per-
cent higher for laborers and engineering and technical employees and
20 percent higher for other employees; and on the South Sakhalin Rail-
road, wages are 50 percent higher. AS/
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USSR
RAILROAD EMPLOYEES AND WAGES
1950-56
sitVE AGE WAGE
TOTAL NUM ER
PER M fO
PLOYEE OF EMP YEES
E A
'es) (Tho sag)
1951
9,152
1952 3,233
3,088
1953 !Qi mmtmitti3,326
9,319
mmimm13,421
1954
9,319
1955
9,422
1956 it,
,
3,414
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Figure 1
TOTAL WAGES PAID
(Billions of Rubles)
26.03 27-93
1950
1951
1952
1953
31.88
1954
31.68 32.17
1955
1956
26755 7-58
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The unions allegedly have the right to control wage rates
and to ensure proper and timely payment. This so-called "control" is
exercised through commissions on wage rates made up of from 3 to 21
workers. These commissions are headed by a member of the trade union
_committee. 2/ ActUal control of wage rates is believed to rest with
the Party and the chiefs of enterprises.
a. Piece Rates.
Payment for all jobs on the MPS for whith standards of
production can be established is on the basis of piece rates. A work
norm (norma vyrabotki) is determined for each such job.
After the norm for a given job is set, the piece rate
for the job is determined by dividing the norm (expressed in units per
hour or per day) into the appropriate wage rate (base rate) for the
labor grade in which the job is classified. For example, if the norm
for a locomotive engineer is 500 kilometers (km) per day and his basic
wage rate is 100 rubles per day, the applicable piece rate is 0.2 ruble
per kilometer. This method is known as the straight piece rate system
(pryama sdel'naya sistema).
Pieceworkers also may be paid in accordance with the
progressive piece rate system.(sdel'no-progressivnaya sistema). As
part of a general wage reform,. 12/ however, some railroads have taken
preliminary steps to replace this system with a system of the straight
piece rate plus a bonus. If a worker raises his production a certain
percentage above his norm, his pay scale is increased In proportion to
his above-norm production. A movement to eliminate the progressive rate
system apparently has been triggered by many inequities which have
developed in earnings. For example, ,establishment of norms at too low
a level resulted in an artificial increase in the level of fulfilling
norms and in considerable overpayment in the Progressive wage supple-
ments. 11/
?
b. Time Rates.
In the USSR, flat hourly or daily rates are paid to
production and service workers whose jobs do not permit the establish-
ment of norms. Janitors, storekeepers, guards, and electrical main-
tenance men are examples-of the types of employees in this category.
Bonuses for these employees are based on fulfillment and overfulfill-
ment of the monthly production plan for their depot, shop, or installa-
tion.
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c. Bonuses, Premiums, and Other Compensation.
In addition to basic wages or salaries, railroad em-
ployees paid by the hour, day, or month receive bonuses for fulfillment
and overfulfillment of the monthly production plans for their station,
depot, or installation. For managerial and engineering and technical
employees, bonuses are contingent on simultaneous fulfillment of the
plan for reducing production cost. Additional bonuses are paid also
for reductions in cost above the plan, improvements in the quality of
production, reduction in the idle time of machines and rolling stock,
and savings in fuel and raw materials above the -plan.
Pieceworkers also have the opportunity of earning addi-
tional bonuses. Crews of freight trains, for example, receive bonuses
when their trains exceed the normal weight, in proportion to the dis-
tance covered and the tonnage carried. Such bonuses often amount to as
much as one-half to three-quarters of the ordinary wages paid for the
trip. Crews receive bonuses for running trains on time and in good repair.
On passenger trains, such bonuses amount to 60 percent of the ordinary
wages, and on freight trains to 20 percent. For long trips which entail.
,spending several days on the train, the worker is paid a bonus equaling
3 percent of the monthly earnings for every day spent in transit.
Under the progressive piece-rate system, railroad em-
ployees assigned to stations for switching or making and breaking up
trains (signalmen, switchmen, and inspectors) receive, depending. on the
job, 1.5 to 2 times the basic wage for 10 percent overfulfillment.
OverfulfilIment above 10 percent is paid at double or triple the rate,
depending on the extent of,overfulfilIment- Bonuses for long-time
service, paid monthly, range from 5 to 30 percent of the basic wage.
For engine crews these bonuses may.reach 75 percent. 1E/
. All employees may receive various kinds of premiums for
meritorious performance. These premiums maybe paid from the "enter-
prise fund," a fund derived from the profits of the enterprise and made
available to the enterprise director for specific purposes, including
the payment of premiums to workers. Other sources for the payment of
premiums are the fund at the disposal of the Minister and sums provided
by special order of the Council of Ministers in recognition of out-
standing performance. Organizations declared the winners in socialist
competition are awarded substantial prizes which are distributed to em-
ployees in accordance with ministerial regulations.
Finally, employees receive extra compensation for over-
time, night work, training new employees, inventions and improvements,
- and other activities for which compensation is not provided in the basic
wage and salary scales. Total bonuses paid to railroad emplOyees amount
to more than a billion rubles annually. 1.3./
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3. Fringe Benefits.
a. Hospitalization.
Large numbers of hospitals, sanitariums, and labora-
tories are maintained by the state. lit/ The railroads employ about
22,000 doctors and auxiliary medical personnel estimated at 64,000.
In 1951 the government allocated 1.62 billion rubles for the protection
of the health of railroad employees. 12/ About 2.5 billion rubles are
appropriated each year to cover health and life insurance for railroad
employees. Funds are subscribed entirely by the railroad enterprises
but are administered by the unions. 1?/
b. Housing.
Most housing for railroad employees consists of flats
in multistoried buildings. The more privileged groups, including many
locomotive engineers, occupy private cottages bought with long-term
state credits. Union committees participate in the distribution of
new flats.
In spite of much lip service paid to the housing pro-
gram for railroad employees, and even favoritism shown them in compari-
son with other Soviet workers, 11/ some, employees continue to occupy
makeshift accommodations, such as old 2-axle freight cars (see Fig-
ure 2*). 1.?/ Substantial progress is being made, however, as reflected
by the fact that over 3 million square meters of new housing -- nearly
100,000 dwelling units -- were supplied to railroaders under both the
Fourth and Fifth Five Year Plans. 12/ In the original Sixth' Five Year
Plan (1956-60), 6.5 million square meters'of floorspace -- about 200,000
dwelling units -- were to be built for railroad employees. 22/ No re-
vision of this plan has been announced. In 1956, funds allocated for
this purpose amounted to 1..375.billion rubles. El/
c. Other Benefits.
Paid vacations vary from 2 to 4 weeks, depending on the
job. The railroad unions operate about 42 resorts throughout the USSR,
which apparently are used by, about 7 percent of the employees. 22/
Nurseries, kindergartens, camps, and clubs also are available for the
children of railroad employees, as well as clubs and libraries operated,
by the state for the employees themselves.
* Following p. 10.
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B. Effect of Wages on the Status of Employees.
1. Comparison with Employees in Other Soviet Industries.
The average annual earnings of Soviet railroad employees
have been somewhat higher than the average for other state employees
during 1950-56. Railroad employees received about 1,000 rubles more
than the national average in 1950, although their estimated average
annual earnings in 1956 were only about 550 rubles morethan the na-
tional average. The narrowing of this differential has not yet been
significant enough to affect Seriously the attractiveness of the rail-
road industry as a career, but continuation of this trend may cause a
serious shortage in the labor supply available for the railroads in
the future.
2. Comparison with Employees on US Railroads.
The average annual earnings of US railroad employees in-
creased 34.9 percent from 1950 to 1956, and during the same period the
average annual earnings of Soviet railroad employees increased only
9 percent. During those years, the Soviet price index declined while
the cost of living in the US increased.
In 1950 the average Soviet railroad employee earning
8,640 rubles (compared with the US railroad employee earning $3,785)
could buy only 22 percent of the goods and services that his US counter-
part was able to purchase.* Taking into account decreases in Soviet
prices and increases in the cost of living in the US and assuming an
8 to 1 ruble-dollar ratio for 1956, the Soviet railroad employee still
was able to buy only 23 percent of the consumer goods and services that
the US railroad employee could buy.
IV. Total Cost of Labor on the Railroads of the USSR 1950-60.**
The total cost of labor on Soviet railroads, including social in-
surance, merit awards, and all other fringe benefits, is estimated to
have been about 36.2 billion rubles in 1957 compared with 28.6 billion
rubles in 1950. By 1960 this cost should be approximately 37.4 billion
rubles.
Continuous gains in productivity of labor, along with controlled
and slight increases in pay, have made possible a reduction in unit
labor cost estimated to be 30.7 percent since 1950 and have contributed
* Based on a calculated ruble-dollar ratio of 10.4 to 1 for consumer
goods and services in 1950. El/
** See Tables 12 through 14, Appendix A.
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Figure 2. USSR: Converted Two-Axle Freight Car Used as Living Quarters
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to greater net operating income and to an accompanying increase in
average annual earnings.
In the absence of a figure for the total cost of the state-employed
labor force, the relationship between total money earnings* of the rail-
road labor force and of the total state-employed labor force has been
analyzed. In 1957 the railroad labor force is estimated to have earned
approximately 33.13 billion rubles, or 6.9 percent of the 484.5 billion
rubles computed as earned by the total state-employed labor force. In
1950, however, the money earnings of the railroad labor force repre-
sented 8.6 percent of the earnings of the total state-employed labor
force. Moreover, the earnings of 33.78 billion rubles estimated for
the railroad labor force for 1960 probably will represent only about
5.6 percent of the earnings of the total ,state-employed labqr force.
The trend toward a decline in the earnings of the labor force on
the railroads of the USSR results both from the smaller share of total
employment by the railroads and from the trend for the average annual
earnings in the nation to increase more rapidly than those of the
railroad labor force. By 1960, if present trends continue, the average
annual earnings of railroad employees may be even less than the average
earnings of the total state-employed labor force.
V. Productivity of Labor on the Railroads of the USSR.**
A. Quantitative Measure of Productivity, 1950-56.
Data on the productivity of labor on the railroads on the USSR
are published in terms of traffic-kilometers per operating employee.
In these terms the productivity of labor for 1956 was 53.1 percent more
than that in 1950, whereas employment was up only 15.6 percent for the
same-period. By 1960 an additional increase of 51.4 percent in the
productivity of labor above that of 1956 is forecast, but operating em-
ployment may decrease by about 4 percent. Overfulfillment of the plan
for productivity of labor for 1956 and the first half of 1957 indicates
a strong possibility that the planned increase in employment may not be
necessary unless planned traffic demands are greatly exceeded. The
fact that the plan for reduction of the average length of freight haul
probably will not be fulfilled makes it likely, however, that the planned
quota of traffic-kilometers for 1957-60 will be exceeded to some extent.
Soviet planners apparently anticipate that only 85 percent of the total
increase in traffic kilometers will come from increases in productivity
* Money earnings, as referred to in this report, constitute wages and
salaries including additional payment for overfulfillment of norms and
represent over 90 percent of all payments to labor on the railroads.
** See Tables 15 through 18, and Figure 3, following p. 12.
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of labor;2)1/ indicating at least some necessary gain in total employ-
ment. Estimated productivity of labor on the railroads of the USSR
for 1950-60 is shown in Table 15.*
The gains made in 1955, as shown in Table 15, were at a rate
considerably higher than necessary to accomplish the increase in pro-
ductivity of labor planned by 1960. This performance suggests that
the program for modernizing the railroads, particularly dieselization
and electrification, may pay off better than the Soviet experts hoped
for originally and may control increases in employment.
Productivity of labor on various rail lines in the USSR varies
greatly from 100,000 traffic-kilometers per worker on the South Sakhalin
Railroad to 1,550,000 traffic-kilometers per worker on the Omsk Rail-
road.** The wide range of output per worker for the various railroad
systems is the consequence of different working conditions, as well as
Of equipment and facilities, and of the varying nature of the work per-
formed. For example, the tracks of the Omsk Railroad run over a level
area with few bridges and viaducts, whereas the Transcaucasus Railroad
crosses many bridges and viaducts. As a result, the latter railroad
must employ many more men to guard and maintain these bridges and via-
ducts. On another railroad it may be necessary to employ more men and
facilities to repair rolling stock And to provide a fuel supply.
Climatic conditions also contribute to the relative productivity
of labor on the railroads of the USSR. More materials, labor, and
facilities must be used on railroads where the weather is inclement or
where the snowfall is abundant. Stations must be protected and cleaned,
drainage must be assured in the spring, and repair and maintenance must
be provided for the various machines used in combating snow and water.
The nature and extent of work performed, resulting in various
levels of traffic density, is probably the most important single factor.
The large volume of through traffic on the Omsk Railroad, for example, '
creates very favorable conditions for obtaining a high level of per-
formance with fewer workers. In contrast, railroads engaged in Con-
siderable loading and unloading operations, in making up and switching
trains, and in hauling considerable suburban passenger traffic will
show a lower productivity per worker.
B. Relationship of the Productivity of Labor to Costs and Value
of the Railroad Product.
Since 1950, in spite of decreased prices to consumers and in-
creased costs of labor, the railroads of the USSR, have become increasingly
Appendix A, p. 30, below.
** See Table 16, Appendix A.
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3,000
2,500
2,000
1,500
1,000
500
1,200
1,000
800
600
400
200
50X1
Figur 3
US AND USSR
PRODUCTIVITY OF LABOR BY RAILROAD EMPLOYEES
1950-56 .
EMPLOYEES
(Thousands)
0/
1950 1951
1952
1953 1 954 1 955 1956
1,500
1,250
1,000
750
500
250
PRODUCTION
(Billion traf(ic-kilometers)
'
7
i
7
0
?
-
7,-.---
t-
/
0
/
/
0
------
?
Fd
t4--
0--
. /
-
4
? '....
-
/A?
0--
.
,-
-
A
4-
t-
/
/,-
/
/
0
?
/
$
f--
' .
/
0'
/
/ Al
? ,
--,,,
,
P--
A
-
1950 1951 1952 o 1 953 1954 1955
US
USSR
1 956
PRODUCTIVITY EMPLOYEES PER KILOMETER OF ROUTE OPERATED
24
(Thousand tra(fic-kilometers per employee)
4
/?4
1950 1951 1952 1953 1954 1 955 1956
26756 7-58
0
20
16
12
8
4
V-
0/
9-4
1950
1951 1 952
1953- 1954
1955 1956
50X1
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profitable. During 1950-56 the increased productivity of labor was
reflected in the relationship of cost to price,. The net operating
revenue per employee in 1956 was 132 percent above the level of 1950,
and gross operating revenue per employee had increased 26 percent.
During that same period, labor costs per employee increased 8 percent,
and gross revenue, reflecting lowered rates, decreased 18 percent per
unit of traffic.
The increase of 53 percent in the productivity of labor during
1950-56 offset decreases in rates to the extent that gross operating
revenue per employee per traffic-kilometer decreased only 29 percent,
and operating cost per employee per traffic-kilometer decreased 39 per-
cent. Net operating revenue per traffic-kiloMeter, therefore, has in-
creased 51 percent, as shown in Table 17:*
If the present rate structure is maintained and if current
trends in costs and volume of traffic continue, net operating revenue
will increase even more in the future. Internal pressures, however,
are likely to promote either decreases in rates, increases in earnings,
or a combination of the two. Substantial concessions could be made
to consumers and employees without lowering the present level of profit.
C. Comparison of Productivity of Labor on the Railroads of the
US and the USSR.
In order to arrive at a meaningful comparison of the productiv-
ity of labor on the railroads of the US and the USSR, it has been
necessary to estimate a comparable labor force. Neither Soviet data
for total employment of the MPS nor those for operating employees are
strictly comparable to data on the labor force on US railroads. The
MPS performs many functions which are handled for the US railroads
either by private contractors or by the government. On the other hand,
total employment on US railroads encompasses something more than the
concept of operating employees. By eliminating employment for those
functions of the MPS which do not compare with functions of US rail-
roads, it has been possible to estimate comparable labor forces and to
compare the output per railroad employee in the USSR with that per
railroad employee in the US.
Such a comparison, as shown in Table 18,** provides a very
interesting picture of Soviet inefficiency and overstaffing. In 1953,
when total production of the US and'Soviet railroad networks was
approximately the same, the US had a productivity per employee about
88 percent higher than that of the USSR. Application of advanced
* Appendix A, p. 32, below.
** Appendix A, p. 33, below.
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technology and continued high utilization of equipment has made it
possible recently for the productivity of labor on Soviet railroads
to gain a little on that of US railroads. In-1956, however, produc-
tivity per employee on US railroads was still about 77 percent higher
than in the USSR.
VI. Effect of Improvements to the Railroad System of the USSR on the
Cost and Productivity of Labor.*
An extensive program for improving the existing plant and equipment
of the railroads of the USSR, under way since the. Fourth Five Year Plan
(1946-50), has gained considerable momentum. Plans were announced in
1956 for complete conversion of motive power from steam to diesel-
electric and electric traction by 1970. E2/ This change in mode of
traction is the principal source of current and planned increases in
productivity of labor, and the correlation may be seen readily from the
substantial upward trend in the productivity of labor, as shown in
Table 15.** This increase was considerably greater
1957 than in previous years, undoubtedly because of
dieselization and electrification.
new modes of traction have been largely responsible
38.8 percent*** in the productivity of labor during
greater gains are possible because about 80 percent
in 1955, 1:956, and
the extension of
the
for an increase of
1955-57. 2.y Even
of the freight traf-
fic was still handled by steam traction in 1957. Continued intensive
use of plant and equipment, the dynamic shift to diesel and electric
traction, and other improvements should continue to push the productivity
of labor upward, thereby making available to other endeavors a substan-
tial supply of labor that otherwise would be required in rail transport.
The effects of increased productivity of labor, largely the result of
improvement and modernization, on requirements for manpower are shown
in Table 19.****
A. Dieselization and Electrification.
The effects of both dieselization and electrification on the
productivity of labor and on costs are similar. These forms of traction
make possible the operation of heavier and speedier trains with smaller
train crews as well as with a reduced number of personnel required for
ancillary facilities. The net effect is to decrease both requirements
for manpower and costs of labor and operation per unit of traffic. For
example, between 1953 and 1956, the Omsk Railroad converted its Bara-
binsk Division to electric traction and its Petropavlovsk Division to
See Tables 19 through 22, Appendix A.
Appendix A, p. 30, below.
Increase of 36.3 percent is calculated from Table 15, Appendix A.
Appendix A, p. 34, below.
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diesel traction. As a result of converting the Barabinsk Division to
electric traction, the productivity of labor increased from 3.3 million
gross ton-kilometers per operating employee in 1953 to 5.0 million gross
ton-kilometers per operating employee in 1956. Dieselization of the
Petropavlovsk Division resulted in an increase from 2.7 million gross
ton-kilometers per operating employee in 1953 to 3.7 million gross ton-
kilometers per operating employee in 1956. 27/
Increases of 50 percent in productivity of labor under electric
operation and of 39 percent under diesel operation demonstrate the
possibilities for savings in cost of labor on a railroad with high-
density traffic. A Soviet estimate in 1956 of increased productivity
of labor and of decreased cost of labor resulting from the changeover
from steam locomotives to diesel and electric locomotives is shown in
Table 20.*
Electrification would contribute to reductions of from 25 to
30 percent in the over-all number of workers on the railroads, of 70
percent in the number of locomotive crews and the number of workers
occupied in servicing locomotives, and of 50 percent in the number of
repair crews for locomotives. .22/ Although dieselization and electri-
fication permit the use of less manpower per traffic-kilometer, a
greater percentage of highly trained personnel is required. Nearly
16,000 locomotive engineers, 30,000 engineer helpers, more than 10,000
skilled repairmen, and hundreds of engineers and technicians must be
trained by 1960 for the planned introduction of diesel traction alone. EV
B. Other Improvements.**
Many other improvements accompany the changeover in the type
of motive power on the Soviet railroads, all of which will contribute
to the subsequent increase of productivity of labor and to the decrease
in the cost of labor per traffic-kilometer. The estimated cost of labor
per traffic-kilometer on Soviet railroads in shown in Table 21.***
Conversion of all trunkline rolling stock to automatic coupling was
completed in 1957, 11/ and by 1959 all cars are to be equipped with
airbrakes. Capital outlay required for these projects is more than
15 billion rubles. .32/
The old 2-axle type of freight car, which now makes up only
20 percent of the total freight car park in terms Of capacity, is
disappearing rapidly and is being replaced by the larger 4-axle type
of freight car with a capacity of 60 tons. Passenger cars delivered
* Appendix A, p.35, below.
** See Figures 4 through 10, following p. 16.
*** Appendix A, p. 36, below.
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since 1955 have been equipped with roller bearings, and production of
freight cars with roller bearings was to begin in 1956. 33/
Electronic equipment for processing data is being introduced.
One such machine, an electronic calculator for traction, after being -
fed data on track profile, train weight, and locomotive power, indicates
the most advantageous speed for the various sections.of the track. ,3jg
In 1956, devices for automatic blocking and centralized control, of
traffic were installed on more than 1;500 km pf track, and 876 km of
double track were laid. 151 Lazar Kaganovich, then Deputy Premier and
former Minister of Railroad Transport, estimated that electrification
of switches alone would eliminate the need for almost all of the
120,000 switchmen employed as of 1955. ;.3...Y For reconstructing track
on the railroads of the USSR, more efficient equipment ---including
machines for laying track, machines for cleaning ballast, tie-tampers,
pneumatic spike hammers, and the like -- is being put into use. E/
All the improvements named above combined with the steady drive
for more efficient organization of labor together with dieselization
and electrification will increase productivity, of labor and will lower
the cost of labor per traffic-kilometer. The cost of 0.03 ruble per
traffic-kilometer in 1955 is expected to decrease to 0.02 ruble pet-
traffic-kilometer by 1960.
VII. Estimated Relationship of the Cost of Labor to Revenue on the
Railroads of the USSR.
Since 1950 the trend has been for gross operating revenue of Soviet
railroads to exceed increasingly both the cost of operating labor and
total costs of operation, even though railroad freight tariffs have been
lowered 5 times during the same period, representing an average over-all
reduction of 30 percent. Decreasing costs, largely the consequence of.
advancingtechnology and a high level, of traffic, have made this increase.
in net revenue possible in spite of a use of labor considered wasteful_
by US standards. A comparison of the costs of operation and of revenue
on Soviet railroads is shown in Table 22.*
In 1955, gross operating revenue exceeded the cost of operating
labor by approximately 38 billion rubles, or 192.9 percent. If present
trends continue, by 1960 gross operating revenue will exceed the cost
of operating labor by about 66 billion rubles, or approximately 300 per-
cent. Because the cost of operating labor amounts to about 45 percent
of the total costs of operation, gross operating revenue may exceed the
total cost of operation by about 84 percent by 1960.
Appendix A, p. 37, below.
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,
Figure 4. USSR: General View of a Mechanized Classification Yard
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Figure 5. USSR: Railroad Car Retarding Device
?
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Figure 6. USSR: Automatic Central Switch and Signal Control Panel
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Figure 7. USSR: Electro-Pneumatic Switch Control Panel
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Figure 8. USSR: Two-Way Yard Communications System
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Figure 9. USSR: Walkie-Talkie for Yard Walkers
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Figure 10. USSR: Operator Selecting Tracks and Controlling Switches
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APPENDIX A
STATISTICAL TABLES
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Table 1
Estimated Employment on the Railroads of the USSR 2/
1950-60
Year
Total
State-Employed
Labor Force
(Thousand)
Ministry of
Railroad Transport
- (Thousand)
Percentage
of the Total
State-Employed
Labor Force
Operating Employees
of the
Ministry of "
Railroad Transport 12/
(Thousand)
Nonoperating Employees
of the
Ministry of
Railroad Transport
(Thousand)
1950
39,800 2/
3,014 d/
7.6
1,712 I/
1,3022/
1951
41,400 c/
3,088 1/
7.5
1,765 1/
1,323 2/
1952
42,500 2/
3,233 1/
7.6
1,866 I/
1,367 2/
1953
44,600 W
3,326 1/
7.5
1,901 1/
1,425 2/
1954
46,800 c/
3,421 1/
7.3
1,968 d/
1,453 f/
1955
47,900 Ei
3,400 2/
7.1
1,980
1,420 2/
1956
50,000 2/
3,414 Eli
6.8
1,980
1,434 2/
1957
52,100 f/
3,436 g/
6.6
1,993W.
1,443 2/
1958
54,100 1/
3,390 E/
6.3
1,966 Ili
1,424 2/
1959
55,905 I/
3,338 f/
6.0
1,-936 22/
1,402 2/
1960
57,700 1/
3,281 Ei
5.7
1,903 LI/
1;378 f/
a.
b.
C.
d.
e.
f.
g?
in
h.
Rabochiy i sluzhashchiy are mage earners and salaried employees.
For definition of operating and nonoperating employees, see the footnote, p. 2, above.
182
Difference between total number of employees and operating employees of MPS.
Based on the estimate that operational workers constituted about 58 percent-of total employment-
the MPS since 1950.
Table 12, p. 27, below.
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Table 2
. Percentage Distribution of Total Railroad Employment in the USSR
by Function 2/
Function
Percent
Direct railroad work
Railroad operation
Repair and maintenance
Loading and unloading
3.5.
1.1
Other railroad tasks (secondary-auxiliary work)
10.0
, Total
63.8
Production enterprises
10.9
Construction
10.7
Training .establishments
3..2
Medical-sanitary establishments
3.8
Workers' supply
5.4
Other12/ .
Total
2.2,
100.0
a. LI/. Probably based on data for 1955.
--b. Including political sections, scientific institutes, transport ex-
pediting offices, the state railroad publishing house, and the like.
S -E -C -R-E -T
.
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Table
Percentage Distribution of Operating Employees on the Railroads of the USSR
by Function
1950 and 1954
Management Branch
Percent
1950 2/
1954 12/
Locomotive service
23.6
24.6
Track maintenance
22.3
21.5-
Traffic managemen't
17.6
18.2
Car service
11.0
10.6
Passenger service
6.8
7.4
Signaling and communications
4.2
4.o
Commercial service
2.6
4.1
Other si
11.9
9.6
Total
100.0
100.0
a.
b. _1/
c. Including building and installation, political sections, and the like.
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,Table 4
Percentage of the Total Number of OperatingEmployees
on the Railroads of the USSR
Represented by Selected Occupations 2/
Occupation
Locomotive engineers
Assistant locomotive engineers
Locomotive firemen
Conductors
Train car masters
Mechanics for locomotive repair
Mechanics for car repair
Car inspectors
Station attendants
Train makeup men
Switchmen
Road masters
Track walkers
Track foremen
Freight train police
Track workers
Percent
4.5
4.5
2.9
3.7
1.4
1.8
3.9
2.5
1.9
0.8
6.3
0.6
4.6
1.6
4.4
12.3
Total 57.7
a.12)1/. Probably based on data for 1954.,
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Table 5
Comparison of the Labor Force on the Railroads ofthe US and the USSR
1950-56
Employees per Kilometer of Route Operated
Year -
US 2/
(Thousand)
USSR 12/
(Thousand)
US Ei
USSR clj
1950
1,221
2,013
3.4
17.2
1951
1,276
2,063
3.5
17.5
1952
1,227
2,160
3.4
18.2
1953
1,206
2,222
3.3
18.5
1954
1,065
2,285
2.9
19.0
1955
1',058
2,271
2.9
18.8
1956
1,042
2,281
2-9 2/
18.9
a. 45/ .
b. Adjusted for comparability with the railroad labor force in the US. Using
Table 2, p.19, above, as a basis and eliminating those MPS employees estimated
to be engaged in functions not performed by the US railroads, 66.8 percent of the
total MPS employment is believed to be comparable to the railroad labor force in
the US for purposes of productivity. Total employment of the MPS is from Table 1,
p. 18, above. '
c. 46/
d.
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Table 6
Comparison of Etimated Average Annual Earnings
' of Railroad Employees and of the State-Employed Labor Force in the USSR'
1950-56
Rubles
Operating Nonoperating State-Employed
Year Employees Employees All Employees 2/ Labor Force 12/
1950
1951
1952
1953
1954
1955
1956
8,712 .2/
9,120 2/
9,228 pi
9,204 f./
9)396 2/
9,396 f/
9,500,51
8,541 1/
8,941 1/
9,047 1/
'9,o24 1/
9,212 a/
9,212 1/
9,314 1/
8,64o
,9,o45
9,152
9,128
9,319
9,319
9,422
7,600
7,800
8,000
8,150
8,350
8,600
8,85Q
a. Derived from columns 1 and 2 on the basis that operating employees
-represent 58 percent of total employment of the MPS, as shown in Table 1,
p. 18, above
lo. )124/
c. 22/
d. The earnings of operating employees are estimated to be 102 percent
of those of nonoperating employees. This differential is an induction
from observed differentials, 2 percent for 1934 and 1.2 percent for-the
1941 plan. 21/
e. Estimate, based on one sample railroad system and adjusted by in-
spection for bias on the basis of comparison with national averages for
1950, 1952, and 1955. 2/
g. Average earnings are estimated to resume a gradual increase as
mechanization takes over, requiring a greater percentage of skilled,
better-paid personnel.
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Table 7
,
Estimated Average Annual Earnings of Selected Groups
of Railroad Employees in the USSR 2/
Group,
Rubles
. Locomotive crews
15,870
Train crews
14,330
Locomotive repair and maintenance workers
9,720
Freight conductors
2
9,510
'Train makeup men (excluding switchmen)
8,40
Passenger conductors
7,980
Car repair and maintenance men
7,960
a. J. Probably based on data for 1955.
:Table 8
Monthly Wage Rates for Selected Employees
of the Ministry of Railroad Transport of the USSR
- Selected Years, 1954-57
Job Description
Monthly Rate a/
Year (Rubles) ?
Unskilled workers in enterprises of MPS' 1957 b/ 300 to 350
(minimum wage)
Train makeup men (excluding switchmen) 1956 c/ 500
Railroad construction workers
Time
Piece
Railroad metal workers
Time
Piece
1954 d/
1954 e/
300 ?
394
312
418
a. This is the basic wage rate. Actual earnings include bonuses;
therefore, the basic wage rate comprises an estimated 4o to 50
percent of actual earnings. 22/
b. 2/
c. 57/
d.
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Table ,9
Monthly Wage Rates .for Signaling and Communications Employees
of the Ministry of Railroad Transport of the USSR
1955 ,
Rubles
Job
Chief of signaling and communica-
Monthly Wage Rates
Category I a/ Category II
Category III
tions division
Deputy chief of signaling and com-
munications division
Assistant division chief for
1,500 1,300
Wage rates are established at
than the rate for the chief
1,200
15 percent less
personnel
1,000
930
880
Chief of signaling and communica-
tions road laboratory
--1,000
980
880
Senior engineer
1,000
980
880
Engineer
830 to 930
790 to 880
790
Communications inspector
880
740
64o
Technician and technician/norm-fixer
600 to 690
550 to 64o
500 to 600
Senior electrician, supervisor of
interlocking switch or relay point
Division shop supervisor
Person on duty to guarantee commu-
nications
930 .830
Same as electrical mechanics
mechanics, depending on the
the shops
830 to 930 790 to 880
740
and senior electrical
volume of work at
740 to 790
Electrician, Grade I
740
64o
550
Electrician, Grade II
64o
575
500
Communications and signaling, inter-
locking, and block-system installa-
tion man, Grade I
600
550
475
Communications and signaling, inter-
locking and block-system installa-
tion man, Grade II
550
500
425
Signaling, interlocking, and block-
system mechanic and senior helper
for electrical mechanic
475
425
385
Storage battery man
475
425
385
Chief bookkeeper
930
880
830
Senior bookkeeper
64o to 74o
Bookkeeper
500 to 600
Cashier
45o to 500
Senior accountant
Accountant
410 to 1450
385 to 425
a. Categories are established according to the volume of work of installations, taking
into account the degree to which they are equipped technically. 60/
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Table 10
Average Annual Earnings per Employee
for Selected-Industries in the USSR
1955
Rubles
Industry
Rail transport
Shipbuilding
Electric power
Construction
Average Annual Earnings
9,400 2/
9;600 12/
9,600 E/
7,680 1/
a. From Table 6, p. 23, above,
b. ,L_/
c. ?.2/
d. Estimate
Table 11
Comparison of Average Annual Earnings in the US and the USSR
1950-56
US
Railroad
Employees 2/
Year (Dollars)
Nonagricultural
Labor Force 12/
(Dollars)
USSR
Employees
of the Ministry of
Railroad Transport 2/
(Rubles)
State-Employed
Labor Force 11
(Rubles)
1950
3,785
3,085
8,64o
7,600
1951
4,182
3,317
9,o45
7,800
1952
4,352
3,500
9,152
8,000
1953
4,41,5
3;653
9,128
8,150
1954
4,560
3,737
9,319
8,350
1955
'4,719
3,911
9,319
8,600
1956
5,107
4,loo
9,422
8,850
a.
b.
c.
d.
From Table 6, p. 23, above.
From Table 14, p. 29, below.
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Table 12
Cost of Labor on the Railroads of the USSR
1950-60
(1)
(2) (3) (4) (5) (6) .(7) (8) (9) (10) (n) (12)
(13)
Year
Total Employees
Operating Employees
Nonoperating Employees
Number of
Employees 2/
(Thousand)
Total Money
Earnings 12/
(Billion ?
? Rubles)
Total Cost
of Labor 2/
(Billion
Rubles)
Number. of .
Employees Lai_
(Thousand)
. Average
Annual
Earnings 1/
(Rubles)
Total Money
Earnings 3/
(Billi6n
Rubles)
Other Payments
for Labor 1/
(Billion
Rubles)
Total Cost
of Labor
(Billion
Rubles)
Number of
Employees gi/
(Thousand)
Average Total Money Other Payments
Annual Earnings 1/ for Labor 1/
Earnings 2/ (Billion (Billion
(Rubles) Rubles) Rubles),
Total Cost'
of Labor 15/
.(Billion
Rubles)
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
3,014
3,088
3,233
3,326
3,421
3,400
3,414
3,436
3,390
3,338
3,281
26.03
27.93
29.59
30.36
31.88
31.68
32.17
33.13
33.42
33.64
33.78
28.60
30.55
31.66
32.89
33.47
33.81
35.07
36.21?
36.67
37.06
37-37
1,712
1,765
1,866
1,901
1,68
1,980
1,980
1,s993
1,966
1,936
1,903
8,712
9,120
9,228
9,204
9,396
9,396
9,500
9,725 2/
9,9503/
10,175 2/
10,1+002/
14.91
16.10
17.22
17.50
18.49
18.60
18.81
19.38
19.56
19.70
19.79
1.47
1.51
1.20
1.46
0.92
1.25
1.70
1.8 E/
1.93/
2.0 3/
2.1 3/
16.38 1/
17.61 2/
18.42 2/
18.96 2/
19.41 2/
19.85 2/
20.51 2/
21.18 2/
21.1463/
21.70 2/
21.893/
1,302
1,323
1,367
1,425
1,453
1,420
1,434
1,443
-1,424
1,402
1,378_
8,541
8,941
9,047
9,024
9,212
9,212 -
9,314
9,530 2/
9,7352/
9,940 2/
10,150 2/
11.12
11.83
12.37
12.86
13.39
13.08
13.36
13.75
13.86
13.94
13.99
1.10
1.11
0.87
1.07
0.67
0.88
1.20
1.28
1.35
1.42
1.49
12.22
12.94
13.24
13.93
14.06
13.96
14.56
15.03
15.21
15.36
15.48
a. From Table 1, p. 18, above.
b. Total of columns 6 and 11.
C. Total of columns 8 and 13. -
d. From Table 6, p. 23, above.
e. Column 4 multiplied by column 5.
f. Column-8 less column 6. Includes special awards, social insurance, and the like.
g. Column 1 less column 4.
h. From Table 6, p. 23, above. Operating employees earn an estimated 102 percent of wages paid to nonoperating employees.
i. Column 9 multiplied by column 10.
j. Percentage of money earnings assumed to be the same as for operating employees, as shown in columns 6 and 7.
k. Column 11 plus column 12.
1. _?.Y. Payments to labor total 45.2 percent of operating cost for 1950.
m. Based on 1950 and 1955 ratio, 45.3 percent of operating cost.
n. //. Wages and supplementary payments to labor are 1+5.1+-percent of operating cost (see Table 22, p. 37, below).
o. Because it is estimated that the productivity of labor will ?increase by about the same amount during 1956-60 as during 1950-56, it is estimated that the average wage will
follow the same trend.
p. It is estimated that the cost of fringe benefits will increase slightly as concessions are granted to labor.
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Table 13.
Estimated Cost of Labor, Average Annual Earnings of Employees,
and Net Operating Income of the Ministry of Railroad Transport of the USSR
Selected Years, 1950-60
Total Cost
of Labor 2/
(Billion
Year Rubles)
Traffic-Kilometers
Performed hi
(Billion)
Cost of Labor
per
Traffic-Kilometer
(Kopeks)
Average Annual
Earnings of
Employees I/
(Rubles)
Net
Operating Income
(Billion Rubles
1950
28.60
690
4.14
8,64o
6.31
1955
33.81
1,112
3.04
9,319
14.43
1956
35.07
1,222
2.87
9,422
1_6.9
1960
37.37
1,777
2.10
10,296
39.99
a.
b.
C.
d.
e.
From Table 12, p. 27, above;
From Table 15, p. 30, below.
Total labor cost per traffic-kilometer; column 1 divided by column 2.
Derived from data in Table 12, -p. 27, above.
Derived from data in Table 22, p. 37, below.
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Table 14
Annual Earnings of Railroad Employees
and of the State-Employed Labor Force in the USSR
1950-60
State-Employed Labor Fofte Ministry of Railroad Transport
Year
Total
Employment 2/
(Thousand)
Average
Earnings12/
(Rubles per Year
Total Money
Earnings 2/
Billion Rubles)
Total Money
Earnings 1/
(Billion Rubles)
Earnings
as a Percent
of Total Earnings of
State-Employed Personnel
1950
39,800
7,600
302.5
26.03
8.6
1951
41,400
7,800
322.9
27.93
8.6
1952
42,500
8,000
340.0
29.59
8.7
1953
44,600
8,150
363.0
30.36
8.4
1954
46,800
8,350
390.8
31.88
8.2
1955
)47,900
8,600
411.9
31.68
7.7
1956
50,000
8,850
442.5
32.17
7.3
1957
52,100
9,300
484.5
33.13
6.9
1958
54,100
9,650
522.1
33.42
6.4
1959
55,900
10,050
561.8
33.64
6.0
1960
57,700
10,500
605.9
33.78
5.6
a. From Table 1, p. 18, above.
b.
c. Column 1 multiplied by column 2.
d. From Table 12, p. 27, above.
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Table 15
Productivity of Labor on the Railroads of the. USSR
1950-60 ?
Year
Operating Employees a
(Thousand)
Production
(Billion Traffic-Kilometers)
Productivity
(Thousand Traffic-Kilometers
per Operating Employee)
1950
1,712 2/
69012/
403 12/
1951
1,765 2/
776 22/
44o 12/
1952
1,866.2/
- 849 22/
455 22/
1953
1,901 2/
916 1.2./
482 121
1954
1,968 2/
986121
501 22/
1955
1,980 2/
1,11212/
562 22/
1956-
1,980 2/
1,222 12/
617 12/
1957
1,993 sj
1,3611/
683 2/
1958
1,966 2/
1,490 1/
758 fi
1959 -
1,936 sj
1,628 I/
841 f/
1960
1,903 2/
1,777 1/
934 fi
,
a.
b. /2/
c. Column 2 divided by column 3.
e.
f. Estimate, based on an increasing length of freight haul and a projection of the rate
of growth for tons-originated and for passenger traffic.
g. Estimate, based on the annual rate of increase in productivity of labor during 1954-57.
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Table 16
Productivity of Labor on Selected Railroads of the USSR 2/
1955
Railroad
Productivity
(Thousand Traffic-Kilometers
per Employee)
Average for the network
562
Omsk
1,550
South Ural
1,010
Krasnoyarsk
890
Karaganda
770
Sverdlovsk
620
Donets
580
Moscow-Kursk-Donbas
490
Transcaucasus
340
Belorussian
290
South Sakhalin
100
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Table 17
Comparison of Operating Revenues and Operating Costs
of Rail Transport in the USSR 2/
Selected Years, 1950-60
Gross
Operating Revenue
per
Operating Employee
Net /
Operating Revenue
per
Operating Employee
Gross
Labor Costs Operating Revenue
per per
Operating Employee Traffic-Kilometer
Gross
Operating Revenue
,per
Operating Employee
per
Traffic-Kilometer
Operating Cost
per
Operating Employee
per
Traffic-Kilometer
Net
Operating Revenue
per
Traffic-Kilometer
Year
(Rubles)-
(Index)
(Rubles)
(Index)
(Rubles)
(Index)
(Kopecks)
(Index)
(Kopecks)
(Index)
(Kopecks)
(Index)
(Kopecks)
(Index)
1950
24,854
100
3,686
100
9,568
100
6.17
100
0.0000036
100
0.00000306
100
0.914
100
1955
29,369
118
7,288
198
10,025
105
5.23
85
0.00000264
73
0.00000199
65
1.297
142
1956
31,4o4
126
8,535
232
10,359
108
5.09
?82
0.00000257
71
0.00000187
61
1.383
151
1960
46,406
187
21,o14
570
12,319
129
4.97
81.
0.00000261
73
0.00000143
47
2.250
246
a. Derived from data in Table 15, p. 30, above and Table 22, p. 37, below.
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Table 18
Productivity of Labor of Railroad Employees in the US and the USSR
1950-56
Employees Production
(Thousand) (Billion Traffic-Kilometers)
Productivity .
(Thousand Traffic-Kilometers
per Employee)
Employees
per Kilometer_
of Route Operated
Year
US.2/
USSR 12/
US 2/
USSR 1/
US
USSR
US 2/
USSR 1/
1950
1,221
2,013
910
690
745
? 343
3.4
17.2
1951
1,276
2,063
1,000
776
784
376
3.5
17.5
1952
1,227,
2,160
952
849
776
393
3.4
18.2
1953
1,206
2,222
935
916
775
412
3.3
18.5
1954
1,065
2,285
849
986
797
432
2.9
19.0
1955
1,058
2,271
956
1,112
904
? 490
2.9
18.8
1956
1,042
2,281
990
1,222
950
536
2.9 5./
18.9
a. 2.1./. Class I railroads.
b. Adjusted for comparability with the railroad labor force in the US. Using Table 2, p. 19,
above, as a basis and eliminating the employees of the MPS believed to be engaged in functions not
performed by US railroads, for purposes of determining productivity of labor, 66.8 percent of the
total employment by the MPS is believed comparable to the US Class I railroad labor force. Total
employment by the MPS is given in Table 1, p. 18, above
c. /V. Short ton-miles and passenger-miles converted to metric ton-kilometers and passenger-
kilometers with factors of 1.45999 and 1.60935.
e.
///
f.
1.q/
13'
22/
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Table 19
Savings in Manpower as a Result of Increasing Productivity of Labor
on the Railroads of the USSR
' 1950-60 '
Year
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
(1)
(2)
Operational Manpower.
Requirements
at Level of Productivity
in 1950 12/
Traffic-Kilometers 2/, (Thousand Traffic-Kilometers
(Billion) per Employee)
690
776
849
916
986
1,112
1,222
1,361
1,490
1,628
1,777
1,712
1,925
2,106
2,272
2,446
2,759
3,032
3,377
3,697
4,040
4,409
(3)
Actual Productivity 2/
(Thousand-Traffic-Kilometers
per Operating Employee)
403
440
455
482
501
562
617
683
758
841
934
(4)
Actual Operating
Manpower Requirements
(Thousand)
1,712
1,76.
-1,866
1,901
1,968
1,980
1;980
1,993
1,966
1,936
1,903
(5)
Manpower Saved by Increase
over Productivity
In 1950
(Thousand)
16o
240
371
478
779
1,052
1,384
1,731
2,104
2,506
a. See Table 15, p. 30, above.
b. Column 1 divided by column 3.
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Table 20
Reductions in the Operating Labor Force and Increases in Productivity of Labor
Resulting from Conversion from Steam to Electric and Diesel-Electric Traction
on the Railroads of the USSR
Percent
VL-22m Electric N-8 Electric TE-3 Diesel
Locomotive Locomotive Locomotive
Reduction in expenditures
for maintenance of locomotive
and conductor crews 50 50 50
Reduction in locomotive crews 27 4o 30
Reduction in entire working
contingent 9 13 lo
Increase in productivity of
labor of locomotive crews .37 67 43
Increases in productivity of
labor of entire working
contingent 10 15 11
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Table 21
Estimated Cost of Labor per Traffic-Kilometer on the Railroads
of the USSR
1950-60
Year
Production 2/
(Billion -
. Traffic-Kilometers)
Total Cost of Labor
(Billion Rubles)
Unit Cost of Labor
(Kopecks per:
Traffic-Kilometer)
-
1950.1951
690
28.60
4.14
776
30.55
3.94
1952:-
849
31.66
3.73
2,a953-
916
32.89
3.59
986
33.47
3.39
955
15112
33.81
3.04
1956
1,222
35.07
2.87
-1957
1,361
36.21
2.66
1958
1,490
36.67
2.6.
1959
1,628
37.06
2.28
1960 .
1,777
37.37
2.10_
a. From Table 15, p. 30, above.
b. From Table 12, p. 27, above.
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Table 22
Operating Costs and Operating Revenue on the Railroads
of the USSR
Selected Years, 1950-60
Gross
Operating
Revenue
(Billion
Year Rubles)
Total
Operating
Cost
(Billion
Rubles)
Average
Operating
Cost per
Traffic-
Kilometer
(Kopecks)
Gross
Operating
Revenue
as Percent of
Operating
Costs
Total
Operating
Labor
Cost
(Billion
Rubles)
Gross
Operating
Revenue
as Percent of
Operating
Labor
Cost
1950
42.55 2/
36.2412/
5252 Ei
117.4 sl/
16.38 2/
259.8
1955
58.15 I/
43.7212/
3.932
133.0 1/
19.85 f/
292.9
1956
62.18 2/
45.28 12/
3.705 E./
137.3 1/
20.51 2/
303.2
1960
88.31 E./
48.32 LI/
2.719 1/
183.8 1/
21.89
403.4
a. Column 2 plus the absolute amount represented by the percentage in column
4.
b. Column 3 multiplied by traffic-kilometers estimated in Table 14, p. 29,
4
above.
c. Lip./
d. .?1/
e. See Table 12, p. 27, above.
f. p!2/
g. The estimated revenue from freight traffic is 66.99 billion rubles (1,595
billion ton-kilometers multiplied by 4.2 kopecks -- the average rate per ton-
kilometer under the present rate structure). The estimated revenue from pas-
senger traffic is 16.56 billion rubles (182 billion passenger-kilometers
multiplied by 9.1 kopecks -- the average rate per passenger-kilometer under
the present rate structure). This figure is 127 percent of the revenue from
passenger traffic for 1956 (13.01 billion rubles -- 143 billion passenger-
kilometers multiplied by 9.1 kopecks). It is estimated that other revenue will
increase by the same percentage as revenue from passenger traffic and in 1960
will be 4.76 billion rubles (127 percent of the figure 3.75 billion rubles for
1956).
h. Estimated labor cost has been about 45.3 percent of total operating cost.
i. Total operating cost divided by the number of traffic-kilometers estimated
in Table 15, p. 30, above.
j. Derived from columns 1 and 2.
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APPENDIX B
METHODOLOGY
The methodology used to determine the number of employees on the
railroads of the USSR was to accept Soviet statistics published through
1956 on both absolute numbers of operating employees and on the total
number of employees of the MPS. Statistics in absolute terms on labor
productivity published through 1956 also were accepted and projected
through 1960 on the basis of percentage increase. The figure derived
for the productivity of labor in 1960 was applied to the planned pro-
duction (traffic-kilometers) for 1960, and on that basis the required
number of operating manpower was computed. Planned production for the
intervening years was interpolated, and the total requirement for man-
power was estimated on the basis of the relationship between the total
number of operating and nonoperating employees during 1950-60:
Annual earnings of the railroad labor force were determined by multi-
plying the estimated labor force by the estimated average annual earn-
ings per employee. The detailed technique for arriving at the average
annual earnings is explained in Table 6.*
The cost of operating the railroads was derived from announced
4 statistics on traffic-kilometers and cost per traffic-kilometer for
1950, 1954-57, and estimated cost for 1960. Data for the intervening
years were then interpolated. The total cost of labor on the railroads
was derived from announced percentages on the operating cost.
Gross revenue through 1956 was estimated from Soviet statements of
revenue in excess of operating cost. The estimate for 1960 is based on
estimated traffic and estimated revenue per unit of traffic. In order
to compare employment and productivity of labor on the railroads of the
US and the USSR, statistics of the Association of American Railroads
for Class I railroads were accepted, and statistics announced by the
USSR on employment in the MPS were adjusted to eliminate functions not
performed by railroads in the US. Techniques for estimating these
figures are explained in some detail in the statistical tables in Appen-
dix A.
* P. 2 above.
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