MANAGEMENT AND WORKING CONDITIONS AT PLANT 659, SVERDLOWSK

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CIA-RDP81-01030R000100270005-6
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RIPPUB
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S
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17
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December 27, 2016
Document Release Date: 
September 12, 2013
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5
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Publication Date: 
December 4, 1953
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REPORT
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rtri10thiN sua. Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 50X1- ' CENTRAL INTELLIGENCE AGENCY INFORMATION REPORT SECURITY INFORMATION This Document contains information affecting the Na- tional Defense of the United States, within the mean- ing of Title 18, Sections 793 and 794, of the U.S. Code, as amended. Its transmission or revelation of its contents to or receipt by an unauthorized person is prohibited by law. The reproduction of this form is prohibited. 50X1 COUNTRY USSR (Sverdlovsk Oblast) SUBJECT Management and Working Conditions at Plant 659, Sverdlovsk DATE CW 140 PLACE ACQUIRE REPORT DATE DISTR. NO. OF PAGES REQUIREMENT REFERENCES 4 December 1953 17 50X1 50X1-HUM I THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE. THE APPRAISAL OF CONTENT IS TENTATIVE. (FOR KEY SEE REVERSE) 50X1-HUM 1. Turbomotorny zaVod, paragraph 4, should read turbomotornyy zavod. 2. Dispecher; paragraph- 17, should read disOetcher. 3. Sturmovshchina, paragraph 19; should read shturmovshchina. 4. Otdel Tekhnicheskoi Kontroli, paragraph 21, should read Otdel Tekhnicheskogo Kontrolya. 5. Mitingi; paragraph 39, should read mitinRY. 6. Pen' otdel, paragraph 64, should read.pervyy otdel. 2. Otdel naimov i uvolnenii, paragraph 65, should read otdel naimov i uvolneniv. 8. Starshi prepodavatell paragraph 78, should read starshiy prepodavatel. 9. Remeslenniye uchilishchi, paragraph 96, should read remeslennyye uchilishchya. Comment 50X1 50X1-HUM Zhukin, paragraph 11, has been previously referred to as Shchukin. 50X1-HUM SE?CniET SECURITY,INFORMATION- STATE x# ARMY x# NAVY . x# AIR x# FBI AEC (Note: Washington Distribution indicated By "X"; Field Distribution By "#".) 50X1 ',Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R0001002F6065-6 SECRET SECURITY INFORMATION ? COUNTRY s. USSR:: . SUBJECT? management...and Working CanditiOne at Plant No _659 SVerdlevsk.. '.PLACE. ? ACOUIRED DATE ACqUIRED DATE bF:11 THIS IS UNEVALUATED INFORMATION REPORT 50X1-HUM DATE DISTR. 110 C 7:33 t ? NO. OF PAGES 16" NO. OF ENCLS. BASTED BELOW) ? SUPPLEMENT TO REPORT NO. 50X1-HUM 50X1-HUM PLACE OF EMWT.GYMEN; 14ANAGEKENT:AT PLANT :Planning ProOodtrisie Party yeiptieahtir,iind Trade UniOnActiwities TABLE -OF CONTENTS ? 50X1-HUM NO. 659 ' Activities . 9 ieD4OB Sctivitie? 10 CLassificatiOn: Of Industry 'in the USSR .11 ? LABOR AND. WORKING. CONDITIONS AT .PLANT No.. 659 11 Sal4ries. and Wagee' 11 Performanee_LNermi.and Real Income of Workers 13 Restrietioal'on Employment liobility, 14 PLACE OF EMPLOYEENT 50X1-HUM ? Plant To; 659 produced large?.generators, . transformers. and other e1ect4.7 .eqIiipment. Most products were mantifaCtured?Individually and not ? ? otst.asiiinbly line. basis. Approximately 34000spereons.?were employe SECRET' " SICU-RUT INFORMATION Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 ;CIA-RDP81-01030R000100270005-6 SECRET 3. 5, 6. 50X1 at the plant in 1946. The number of ? 50X1-HUM employees increased during the following six years, probab1:50x1 :5,000 at the time of my departure. .1 -- Sotsgorodok was neither a suburb of Sverdlovsk nor an independent workers' settlement but an integral part of the city itself. The inhabitants of Sotsgorodok were mainly employees of Plant No. 659, Plant No, 76 , . (a so-called turbomotor7 zavod). Zavod No. 8 and numerous smaller enterprises' in the:area ' 40,000 to 50; 000 inhabitants oi botsgorodok. there were'sbout 50X1-HUM the population of Sverdlovsk 0X1-HUM in 1951 was approximately 600,000. Incidentally, this figure was 5 never mentioned in the press and was in general kept secret; 50X1-HUM MAHA0E)ENT AT PLANT No. 659 Planning Procedures 7: Plant No. 659 was supervised by the Ministry of the Electrical Industry. KAHANOV was Minister of the Electrical Industry until about 1949 when he was replaced by YEFREMOV. 50X1-HUM 50X1-HUM 8. The ministry drew up the yearly production plans for Plant No... 659. These plans were established in consulation with the plant .director and the chief engineer. However, it should be stressed that the production plane drawn up by the ministry were not subject to any alterations at'the plant level. Any deviations from the plan which . occurred as a result of, for example, the failure of outside agencies to deliver necessary raw materials had to be thoroughly .justified and cleared with the ministry. Working relationships between plant and industry were facilitated by frequent trips to Moscow on the part of the director and his chief engineer. Ministry officiale?also held inspections at the plant four or. five times A year.. The minister himself put man appearance once or twice a Year; Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R000100270005-6 SECRET 73- 50X1 50X1-HUM 9? the misIstry also established the quarterly Production plans as the plant was required to submit plan fulfillment reports everutbreesonths to the ministry.. On the other hand, the drawing lip of Monthly production flans was the responsibility of the plant . management.. These monthly plane were developed by the chief engineer 444'nonsultat56n-with the director. ?The plant's Party secretary was . also consulted On this matter. . . 10. The plant's planning department (planovoye otdeleniye) evidently drew up monthly planafor'individual shops and departments. At any rate, it was clear that a shop chief'received a written order each month from the planning department Which stipulated exactly *hat his shop had to produce in theMoming month. The primary task of the planning office Of.ithe plant was to check up on the fulfillment of production plans by.sthe various production' shops and offices. More important, it alded a shop Chief in overcoming production difficulties when plan fulfillment wan Let jeopardy'. Most of this work was done bytelephone. The planning official called up a shop chief and asked him how far . he Ras along in hie plan, whether he was faced with any problems and whether, he 'would meet his monthly production goals. The planning department hae no 'officials assigned permanently to the production shops nor did it dispatCh inspectors throughout the plant to check on-the progress toward plan .fulfillment. 11. Plant No. 659 always fulfilled or orimfulfilled production plans between the middle of 1950. Then 'd break- ? down occurred when the plant was overloaded with orders for large 50X1 -HUM ? electrical machinery. This part of the plan was only fulfilled by. 6,5 per cent. it was about this time that the plant ? director; ARAKUMOV, was transferred to a post of far lesser im- 50X1-HUM porianoe with e'small plant in the Ukraine. .ka was reputedly. ' demoted-because the plant failed to fulfill its production plans. He was succeeded by .ZEUKIN. ? 12. There was a certain tendency to falsify plan fulfillment reports at Plant No. 659. These reports were not out-and-out lies but were written up to give a better picture of the state of affairs than was.actually the case. Two types of plan fulfillment were recognised in. the USSR. A plan could be fulfilled according to the total ? monetary .value of production. It could also be fulfilled according' 4o assortment (nomenklaturs); that is, every artiole,of-ProductiOn was. manufactured in the quantities called for in the original plan. .This was considered true plan fulfillment.. It Was a oommon.practioe to facilitate matters by fulfilling production pland bnly-a6dCrd- : ing to-. total production value and not according to assortment. The :Plant- used materials. on hand to make products which were easier to . produce and which had a relatively high book value in rubles instead f.'producing, as-foreseen in the plan, articles which were more. -difficult to manufacture. 13. 14. the Soviet planning system impaired production 50X1-HUM striciesoy at 111ant-No. 659. This was most evident in the procure- ment of raw materials or semifinished products-, by far the most serious production problem at this enterprise. According to a regulation which governed operations at Plant 659, no more than a 74.5?.-day scpply.of.raw-materials could be kept ofland. Aid-eVen- this :amount. or raw materials was seldom available. Forty-five days is an extremely short or material teseriew in such an electri- mal plant. (In German nerally maintain reserves sufficient 50X1-HUM for six months': operations.) Furthermore, the planningt systeth was very inelastic. An annual plan normally could not be altered, in regard to either production /pale or supplies. This feature complicated procurement procedures . egg SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 ;CIA-RDP81-01030R000100270005-6 SECRET -4- 50X1 as it was difficult to obtain raw materials or semifinished:products which had not been provided _for in the plant's annual plan. When ? .the need for a Particular material arose which had not been foreseen, the plant attempted to procure.. this material by direct negotiations' with the enterprise producing it. This was difficult as other enterprises were also limited in their operations by annual plans. This manner of procurement was also not entirely legal. As A result, only small quantities of materials could be obtained through these channels. 5. The procurement of materials outside of the plan depended con- siderably upon the initiative of the individual shop chief and plant director as well as their personal contacts in the supplier industry. In a word, it depended on blat(pull). . Asa result of these policies and procedures preventing the accumula- tion of sufficient material reserves, complete or partial work stoppages were a frequent occurrence in the workshops. The prodUc- t'ion cycle followed an erratic course. 1,7. To illustrate this point, practically no work wa; o0X1-HUM done in a workshop during the first ten days of each month. Some key parts or supplies were always missing. In view of this situation, a shop chief had to reconsider what raw materials he needed for the coming months operations and had to attempt to acquire these materials in one way or another. He was aided in this task by his dispecher (one was assigned to each shop) whose main job was just that. All of this meant a considerable and unnecessary waste of man-hours. 18. When a shop found itself 'behind in its production schedule on about the 20th of the month and the raw materials were finally on hand, then all available human reserves were committed to fulfill the plan by the appointed date. Workers put in a 12-hour instead of an eight-hour day. And during the last three or four days of each month the shop worked around the clock. Luckily for the workers, they Sere generally given time off at the beginning of the month for some of the overtime hours which they were required to put in at ' the end of a month. 19. No special measures such as shop meetings or the use of shock brigades were taken towards the end of the month to bring about plan fulfillment. Such steps were unnecessary as the lorkers and employees were accustomed to this production cycle. In fact, there is even a special Russian word - sturmovshchina - to describe this speed-up at the end of a month. 20. Soviet planning procedures also hindered personal initiative. The whole system was handled very bureaucratically, was built on an almost military chain of command. Everyone waited for an order from his superior before he did anything. Personal initiative was extremely limited. There were only a few people in the plant who. were truly interested in fulfilling the plan and they were not always able to muy the broad masses of the workers. These were top officials who had material interests at stake. They received bonuses when plans were completed on schedule. 21. There was a technical control department (OTK Otdel Tekhnicheskoi Kontroli) in every Soviet plant, which operated independently of .1 the plant director. An OTK reported directly to some outside agehay on the ministerial level. The OTK at Plant No. 659 checked each finished product to determine if it conformed with the predetermined specifications (tekhusloviya)0 Specifications were drawn up for ? every piece of mechanical or technical equipment produced in a plant. Products were rejected when they failed to measure up to standard. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013./09/30 : CIA-RDP81-01030R00010-0270005-6 SECRET 22. There was an OTK representative, generally an engineer, assigned to each shop in our plant. Inspectors under him carried out the actual examination of finished products. As on the plant level, this OTK representative was not subordinate to the shop chief but reported directly to the plant OTK. 23. The OTK was supposed to function independently of the plant director and to act as a neutral observer in maintaining the quality of pro- duction. In practice the OTK at Plant No. 659 made every effort not to cause the plant director any difficulty. OTK officials frequently looked the other way when a faulty product came up for inspection. The department made sure that final products were more or less in order but that was about all. It is possible that OTK officials were on friendly terms with the plant director or received monetary con- siderations for their "services." 50X1-HUM 24. no inspection commissions which were sent to Plant No. 659 by ministries other than the Ministry of Electrical Industry for. the purpose of checking on plan fulfill-client, quality of production or financial administration. The only ministerial conimissions which appeared were those sent three or four times .a year by the supervising ministry. 50X1-HUM Party Meibership arid Activities 25. Only a very small percentage of the workers and employees at Plant' No. 659 were Party members;. perhaps only 2 per cent to 3 per. cent. Probably about 50 per cent of the Party members were employees (sluzhashchiye) and 50 per cent were workers. This ratio is .explained by thief fact that all leading managerial personnel had to be Party members. 26. It was an .unwritten law that only Party from shop ohief on up. All shop chiefs Party members. No person who was not a have been chosen for such a post.unless the necessary technical qualifications. AbsolUte prerequisite for the positions chief engineer and plant director, members could occupy positions and department chiefs were member of the Party would he were the only one who had Party membership was an of chief engineer, assistant 27. These requirements meant that Party members were given preferential treatment in regard to professional advancement. Furthermore, a Party member would always be given the nod over a non-Party member in competing for a promotion, other qualifications being equal. And Party members in some cases were advanced ahead of non-Pertv members who were more qualified professionally. 50X1-HUM 28 this type of preferential treatment had certai 5.2X1-HUM neuative effects on productive efficiency at the plant. For example, a Soviet engineer who was an ex50X1-HUM capable designer but had ILL-title to say in favor of communism. 50X1-HUM Nobody prevented him from working at the plant because of his saea of sympathy with the regime. Hoiever, he undoubtedly would have occupied a leading position in this ministry as an advisei on the construction of electrical machinery if he had been a member of the Party. Any advance in his career was blocked because he was not pariioularly in favor of the regime and because his application for Party membership had been rejected. Although had a number of inventions to his credit, he had received practioeFly nothing from the Soviet Government in recognition of thesesefforts. He certainly would have reoeived the Stalin Prize if he hid'' Party member and in sympathy with the government. 50X1-HUM 29. most Party members at Plant No. 659 were convinced communists. There might have been a few opportunists who simply. SECRET 50X1-HUM Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 ? T SECRET joined the Party to further their careers but they were in the minority. After all, being a member meant that one had to devote an enormous amount of free time to Party activities. Few Party members were ever able to enjoy a free night at home. 50X1' 30. no tension or rivalry between Party members'and non. Party members, the latter regarded 50X1-HUM Party members with a certain degree of respect. They recOgnized that members.of the Party had to sacrific much of their free time and outside, interests. ' 31. The Party organization at Plant No. 659 was represented bY a committee headed by a secretary. The secretary was .the leading Party official in the plant and therefore was one of the most influential individuals there. In addition to directing internal Party affairs, he participated in all important production confer& ences held by the plant director. He was consulted by the plant director .on all important decisions concerning plan fulfillment. The two individuals who occupied the post of Party secretary during my employment there were both engineers. The Party secretary's deintty was also an engineer., 32. The Party was represented in each shop or department by a Party organizer, or partorg. These functionaried reported directly to the Party secretary. The position of Party organizer was a part- :tithe job. Perhaps this explains why most Party organizers were employees and not 'workers. Employees had more time for such activities. . 34. the plant Party committee consisted of the secret Y his deputy and the ten or so Party. organizers. Fir-50X1-HUM it is.noteworthy that not a sinee worker was a member of the Party hierarchy. 50X1-HUM There also was a Party office, or partkabinet, at the plant.' In fact, the term "partkabinet" was popularly used by Soviet?workers to refer to the Party leadership. ? Nowever, the term actually referred only to the rooms housing the Party officials. The offioe consisted of a reading room, stocked with propaganda material, and a conference room where workers and employees were allowed to discuss their problems with Party officials. Four people were ' employed there on a full-time.basis, including the Party secretary, his deputy and two female stenographers. 50X1-HUM 35. it was the primary task of the Party organization to aid and support the plant management in fulfilling production plans. This meant that the Party organization intervened in ? technical matters. should be kept in mind that the Party ? secretary was an engineer himself.) 36. is mentioned above, the Party secretary .Was consulted by the director on all important decisions concerning plan fulfillment. The Party bommittee intervened in some personnel matters. It sometimes suggested new forms ofi'brganization or arranged for the transfer of workers from one shop to another in order to overcome production bottlenecks. The Party Opmmittee, through the Party organizers in the individual shops, kept its eye out for production problems such as shortages of raw ?materials and. personnel... The committee received such reports from the Party Organizers and presented these problems to the plant director for solution. 50X1-HUM 37. This intervention in production matters certainly produced no negative results. Energetic action by the Party sometimes solved . production problems or halted the progress of others which could , SMCRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/69/30 :.CIA-RDP81-01030R000100270005-6 'SECRET 50X1 have become more serious. In general, this intervention had a favor- able effect on plant operations. 38. the disseMination of political propaganda, the political guidance of plant personnel was a second major function of the Party 6ommittee. It sponsored political meetings which were held on the occasion of Major holidays and important political developments. Five or six of these meetings were held in the course of a year. Perhaps two were held oh a plant-wide basis while the remainder were held in shifts in the individual shops and departments. Attendance at politi- cal.meetings was compulsory in. 1947. Ili:later years, the workers and employees were not forced to attend 3e; them. 50X1-HUM These assemblies were referred to as "mitingi" when convoked on a plant-wide basis. "Ritingi" were customarily held at 1700 hours. As employees worked until 1800 tours and workers only until, 1700 hours; the former constituted most of the people who attended them. . Politi- cal meetings held on the shop level were simplYcalled "sobraniya." Political meetings were held on a shop basis in order to save time 4 and to simplify their organization. The political "sobraniya" were'. usually held during the lunch hour and were brief--20 to 30 minutes long. The time was made up by overtime or by cutting the length of the lunch hour. 40. The first meeting at Plant No. 659 was held in 1947 to 501 protest against death sentences imposed on 25 Greek communists, petition on this theme was circulated throughout the plant follow- ing...the meeting. Later meetings inaugurated petition campaigns in connection with the Stockholm appeal and another "peace" drive. Other meetings protested against American "aggression" in Korea and the use of bacteriological warfare there. 41. Party organizers conducted the political meetings which were held on the shop level. In particular, a partorg determined beforehand who would take part in the discussions and at would be said. Before a Meeting, he called together his men who were to lead the discussion- they were always the same people - and informed them of the subject to be discussed, what they should Bay and when they should speak. 50X1-HUM The entire discussion was organized in this way. 42. these tactics werewolf knownto the rest of the workers: It would have been impossible to develop a diecussion any other way because of the passivity of the average worker; Ark& furthermore, what could-the average worker say at one of.these meetings? He could not challenge the validity of what the.speaker said and proba- bly saw no sense in simply agreeing' with him. 43. There was also a network of agitators at Plant No, 659. Modt of these agitators were young people - mainly Party candidates and a few Komsomol members. Two or three agitators were assigned t6 each shop. They worked together with the partorg in a shop and were subordinate to him. The agitators were responsible for carrying out. various propaganda drives, particularly in support of May Day celebrations, the October Revolution anniversary and the various.. elections which were held almost every year. An agitator called on the workers and their families in his section before each election and imp?essed them wfth the necessity of voting. They also held short political talks during the lunch hour (usually every two weeks). on current political events. They received printed material for these talks from the partkabinet - usually the Agitators Notebook or 'a recent Pravda editorial'. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R000100270005-6 SECRET -8- `i 50X1 44. Printed-propaganda was distributed only in the form of so-called wall newspapers. The distribution of pamphlets and leaflets was probably hindered by a paper shortage. 45. The Party committee conducted courses on Marxism-Leninism and Stalin's History of the All-Union Communist Party. These oourses lasted from Thur to six months with classes meeting once a week in the evening. They were primarily attended by Party candidates, Komsomol members and others who wished to further their careers by acquiring the necessary knowledge of Party dogma. Attendance at these courses was completely voluntary. No pressure was necessary as the successful completion of such courses was a prerequisite for certain higher positions in the plant. 46. It was also necessary to attend the more advanced courses at the Sverdlovsk evening school for Marxism-Leninism in order to qualify for leading managerial positions. The course of studies at this Party-sponsored university lasted two years. Classes there were held after working hours, two or three times a week, 50X1-HUM 47* 48. no difference between the treatment of proPaginda themes by plant propagandists and the treatment given these same themes by the Soviet press and radio. Central Party organs determined not only the subjects of plant meetings but also the texts of the talks' !hich-were given by local propagandists. So-called "self-oritidism" published in wall newspapers was the only informetionyhiCh was not ' in conformity with the central press. The "self-criticism" was some- times very hard on the individuals under attack.. The Soviet workers reacted to these various propaganda meetings much like a herd of sheep being driven into a pen. When the order came down to attend the meeting, they went along without any apparent thought of distaste or enthusiasm. Once there, they showed little interest in the proceedings. Everyone knew what was goihg to be said: attacks on the West and appeals to double their efforts at the werkbenoh. Some fell asleep, talked during the meetings or simplk Walked out. A speaker's remarks were certainly not greSted with wide- awake attention on the part of the aUdience. These propaganda measures served the primary purpose Of reMinding.the Soviet workers time and time again of the basic; tenets of 'Party; doctrine. So in this respect, it is difficult to judge whether the political talks were successful or not. The propagandists were not trying to indoctrinate but rather to remind the workers, just as a- -; prbet in,a church uses the Holy'Soriptures over and over again in. '50X1-HUM 50. delivery his weekly sermons. ; with the exception shop. which interest 50X1 observe, - " were 'of Closed Party meetings, free to attend.all.of the meetings, political demonstrations held at the plant. The only and politioarlsoturts limitation was the lack of of a Party organizer was to -HUM 50X1-HUM Another "political? function the political reliability and sympathies of the workers and employees in his shop. People were judged by opinions expressed in chance conversations and by their attitudes toward work. 50X1-HUM every Party organizer was an out-and-out was undoubtedly expected to keep an eye out for suoh matters. 50X1-HUM 51. the planttrade union committee was 50X1-HUM primarily responsible for encouraging the development of socialist . competitions and the assumption of socialist pledges. These questions. were generally discussed at meetings convoked by the trade union oommittee. It is possible that the Party committee sometimes had a voice in these matters. But if so, that was the exception rather than the rule. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 :CIA-RDP81-01030R000100270005-6 52. SECRET 50X1 'Trade Union Activities 53. In contrast to the Party committee, the plant trade union committee (zavkom) was predominantly staffed by workers0 not believe 50X1-HUM that any of its members, even the secretary, were full-time trade union functionaries. The trade union was also represented-in every shop or department by a two- or three-man oommittee. 540. the zavkom was elected by the members of the various5?X1 -HUM shop committees0 the shop committees 50X1-HUM themselves were chosen by the workers in direct, secret elections. A worker received a ballot at election time which contained the names of quite a few candidates. He crossed out the names of those whom he did not wish to vote for and placed his folded ballot in,a ballot box. Elections were held each year. 55. Almost all workers and employees at Plant No. 659 were trade union members. Trade union membership carried with it certain advantages, particularly in reference to vacations at rest homes (somatimes financed by the trade union) and wage payments during periods .of sickness (subsidized in part by the trade union). The trade union and not the plant paid for wages of workers and employees during annual leave. 56. Workers and employees who were allowed to spend subsidized vacations at trade union recreation homes were selected by the zavkom on the basis of work performance, political activities and contribution to welfare activities. Only a relatively small number were able to spend their vacations at these rest homes as they were limited in capacity. Perhaps only ten or 12 workers and employees were able to? visit a rest home in Crimea or in other well-known resort areae in the course of a year. The plant also owned several rest homes in the Sverdlovsk area. Competition for assignments there was not so keen. 57. One of the primary tasks of the zavkom was to act as a sort of welfare agency for workers and employees. The zavkom was responsible for seeing that housing conditions were relatively sanitary and satisfactory. It collected private contributions from plant-personnel for workers and employees who were seriously ill. And, as noted above, it subsidized the vacations of some workers. 58. Its-second major task was to introduce production improvement measures and to mobilize the workers in support of production plans. Each shop held a meeting once a month for the purpose of announcing production goals for the coming month. The shop trade union repre- sentative or perhaps the shop chief himself discussed individUal assignments, the importance of particular projects, the need of improving the quality of work and the necessity of conserVing raw materials and semifinished projects. 59. Socialist pledges (obligations) were also announced, disouribed and approved by the assembled workers at these meetings. Socialist pledges were undertaken either by individuals, by a group :of workers or by an entire shop or section. "Mese pledges generally called for the completion of production plans ahead of schedule. Similar were the socialistoomietitions which were normally oonduoted between two enterprises. Each plant fried to outdo the other in overfulfilling ? its production plan. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013./09/30 :CIA-RDP81-01030R000100270005-6 SECRET 50X1 60. These various forms of socialist competition and'pledges were not ? taken very seriously. They often represented' just a scrap of paper.. ? It was certainly true at Plant No. 659 'that at least Ons-hnlf nf ? these Pledges were never fulfilled. 50X1-HUM 61. The.zavkomActed as a grievance committee for plant personnel. A worker who felt that he had been treated unjustly was entitled to lodge a complaint wiWthe committee. The zavkom was often effective ln?correcting injustices brought to Us attention, at least in those oases where there was a legal fOiindition fot?such action. In a : case 'several Morkersjp:myAhop were assigned to a - prdjent-Whinh-ddUld prove injurious'tOltheir health. However, they were not granted additional.annual leave for?dnhealthy or dangerous work as is required by Soviet law: 'They submitted a complaint to the zavkom and the zavkom organized an inapection oommittee to study the case. It was determined by this committee that the workers were justified in their-demands and the.plant management bad to grant them the additional leave. 62.. The zavkom played A secondary role in comparison with the pint's Party committee 'In general, the Farts: Committee was resPonsible for political tutelage within the plant while thezavkom handled the workers' daily problethe of making a living. MVD-MGR Activities 50X1-HUM 63, It was only in the last two or three year? that the term "MOB" came, into'use by'SoViet workers andlemplOYee0.at'Plant No. 659: Most 'of them continued to 'refer to all eeeret-police as the "MVD" simply because it Was the older Or the two Agencies: They seemed to make no preciee'distinction botieen the-two. And'althougk 50X1-HUM 'the MOB assumedAdditional .reepondibilities in 1949 or 1950 no Merreenondind Changes within Plant No. 659. For these reasons refer to all police agencies at the plant aa the ? 64. Like all:other plantain the Soviet Vhion, Plant No. 659 had A first 'department (nervy Otdel) which was responsible for the safekeeping of classified documents.. The section was not responsible for any Other security.Measures Within the4laiit Only 50X1-HUM the.plant director; co4ercial direetor, personnel-chief and'Party ? secretary had direct access to the safi.roomMf the first depart- ment where 'classified documents were kept. Other plant personnel who were authorized?to withdraw documents from thie section were - 'waited onin'a small anteroom nett to the safe room. 65. The personnerdepartient.at.thed.plant,waS known as'otdel naimov. uvolnenii.- The chief of this deliartient;Xeceived orders from both the.plant director and a higheilTD dffidew. The personnel chief was :a senior lieutenant in the DUD: ? While on duty, he wore a Soviet army officetis' uniform and a:visor nap With green band. ? The Soviet eiployeei referred to this man as an MVD officer. ? He was traneferred in the winter of 1951r52 and was replaced by .8, civilian employee. -The citlian was apparently not an 'IND official as he had previously been employed as a?shop chief in the Plant. ? 66. The personnel department dealt with all personnel matters: It . considered employment applications and requests for job releases. It also dealt with personal complaints and requests (regarding housing, 'for example) which were tdo.sorious to be handled by the zavkom. 67. But the personnel department was also responsible for maintenance of security within the plant. It 'issued all identification cards SECRET . Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R000100270005-6 ? sEbRis - -11- 50X1 and gave permission *Or visitors to'enter the plant grounds. In fact, the plant 8UarA detachment took orders from the personnel chief. It is noteworthy that once a month the chief of the'personnel section Made a detailed inspection of the plant facilities. He was aCcompanied on these tours by two or three MVD officers from outside the plant. the inspections were held .for the purpose of determining the enforcement of security regulations. The personnel department was undoubtedly responsible for assembling and maintaining dossiers on 50X1-HUM plant personnel, although these dossiers werekept in the safe room of the first department. And finally, the pereannel chief had some connections With the fire department. . 68. There was a network of informers at Plant. No. 659. .In every shop and section, two or three Party membere (including the partorg) reported on the political reliability of their fellow workers and 50X1-HUM employees, these informers reported directly to the Party secretary and that the Party secretary and personnel chief cooperated closely in each matters! ? 69. poliica1 surveilliance was relatively lax A person would not be in niegrace for any petty 50X1-HUM Statement whichcould be interprpted as a sign of disloyalty or dissatisfaction.. In fact, Many Mtcrkere were quite open in their complaints about certain workinecoSitions.,:Perhaps this situation is explained by the location of'Sverdlovsk. That is, the Urals area was considered a place of partial exile. The authorities ? there were not so sensitive about such matters. At any rate, the average worker or employee:wee apparently not ? bothered much by the presence of Party'or MND informers. But persons ? Opposed to the regime were, of-oaniee, .very cautious in making any, ? statements oritipal of the Soviet Union. On the several occasions when.euch.individuals were discussing politically sensitive subjects with me, they always opened the door., irst to make sure that no onevas-eaveadropping.. Clasdification of Industry In the USSR 71.. There were three categories of industry in the USSR. 50X1-HUM the first category included the armaments industry, coal 50X1-HUM ng, ferrous and hon-ferrous metal industries, heavy machine building and large conetrnotion projects. The third category included the food processing olothing and other goods industries; probably all republic and union-republic economic ministries. In 'the second category were found all other industries; for example, the electrical industry, light madhine building and the chemical industry. Although the exact breakdown is not clear these 50X1-HUM categories existed; the armaments industry was found in the first category;. the Minietry of the Electrical :Industry(superviding ' Plant No. 659)was in the second category; and the consumer goods industry was in the third. 72. Industries were placed in these' categories in accordance With their importance (Category One being the Most important and Category Three the least important) anewere4iven corresponding. privileges in respect to wages, assignment Of personnel, housing, rationing of consumer goods (prior to the .currency reform) and in other ways. t LABOR and WORKING CONDITIONS AT PLANT No. 659. Salaries and Wages 73. Workers Were assigned td'eight job cetegories (narYady). A specific -6r-cRET. Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013./09/30 :CIA-RDP81-01030R000100270005-6 SECRET - hourly wage was establishe& for each job classification. a worker in Group VI'received 3.03 rubles per hour that he fulfilled performance norms by 100 per cent) 50X1 50X1-HUM assumin 1450X1-HUM 50X1-HUM 74. Included in Group I and Group II were apprentices ("ucheniki") with no previous knowledge of a trade. Unskilled workers Were in Group III. Graduates of a two-year trade school were placed in Group IV. They started on the job in this class. In Group V were workers only slightly more advanced than those in Group /V. Group VI included workers who had advanced from the previous class by passing an examination. Most workers Were in Group V and VI. In Group VII were workers who had advanced from Group VI by passing an examination. At the most, 10 per cent of all workers were in this class. And Group VIII included workers who had advanced from Group VII by passing an examination. Workers in thie class, the top 75. category, were very listedbelow and salaries or charwoman Only women took rare. the average 50X1-HUM at Plant 50X1-HUM to 300 rubles. .menthly.wages NO. 659:* Janitor of Soviet workers and employees . 250 this job. Plant guard 450 to 480 rubles. Stevedore 600 rubles. Beginning machinist 650 rubles. Average machinist 800 to 900 rubles. Better-than-average machinist 1,200 rubles. The best paid received 1,500- 1,800 rubles, Brigadier 800- 1,000 rubles. Typist ? 500 rubles. Stenographer 800 to 900 rubles. A good stenographer wgs hard to find. The combined skills deserved this salary. Draftsman Bookkeeper Accountant Foreman A bonus sometimes amounted to one-half salary. Technician Beginning engineer Experienced engineer with no administrative 500 rubles. 500 rubles. 800 to 900 rubles. ppisto 900 rubles of monthlybonus. responsibilities The top salary was 1,700 rubles pills Shop or department chief Chief engineer 600 to 750 rubles.' plus bonus. ' 780.- 1,200 rubles plus bonus. . 1 200- 1,400 rubles plus bonus. bonus. e. 1 400 rubles plus The ministry Sometimes authori-zed 2,500 tion of-special-performance. Plant director bonus. 2,000- .2200 rubles plus bonue. rubles in recogni.. 2,500 rubles plus bonus. - 76. It should be emphasized that Plant No. 659 was a plant in' the second category. Personnel in first category enterprises -received higher wages and salaries than those listed above while personnel in consumer goods and otherithird category industries were paid less. In this connection few engineers with 50X1-HUM the degree of kandidat of sciences were employed at Plant'No. 6596 SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 : CIA-RDP81-01030R000100270005-6 SECRET -13- 50X1 -Being-an enterprise in the second category and thu ..nmitea.inthe, salaries it. could offer its employees, it was not able to!bid for the services of such individuals. Pereons engaged in indUstrial. production who held higher academic degrees were normally employed in first category. industries. 77. Foreign specialists were not paid in accordance with this wage scale. a doctor of sbiences, received 6,000 rubles per month: Thatoxi -HUM corresponded to the salary of a university professor. 78. The salaries in scientific institutes and educational institutions were far more favorable than in industry. 50X1-HUM It the Sverdlovsk Min- ing InstitUte an instructor, or starshi Prepodavatel was paid relatively little- 1,300 rubles per month. This man had completed an engineer's course at a higher educational institute. A docent at the mining institute held the degree of ? kandidat of sciences and was paid a beginning salary of 2,800 rubles per month. The top salary for a docent with a kandidat degree was ? 3,500 rubles per month. 79. Professors received a base salary of 4,000 to 6,000 rubles per month. A professor serving as a dean (dekan) or department chair- man (nachalnik kafedry) received an extra 25 per cent of his base ? salary. The director of the institute received an additional 30 per cent to 50 per cent of his base salary as professor in recognition of his administrative responsibilities. Performance Norms and Real Income of Workers 80. Performance norms at Plant No. 659 were established according to 50X1-HUM the estimated time required for a given production process and not according to piece rates (number of units produced in a given time). These norms were bases on a norm bode which was Ann11- cable throughout the Soviet Union, 50X1-HUM 81. Thp norms were generous by western European standards. In Germany llot less time for production processes than was allowed at the Sverdlovsk plant. This was primarily due to poor organiza- tion. A worker had to spend considerable time finding the tools and raw materials necessary for a given job. Be had to do all that himself as this type of procurement was not centralized. Further- more, much time was lost because of the poor condition of lathes and other machine tools. 82. Every year, production norms (in terms of quantity of output) were -increased throughout Plant No. 659 shortly before the introduction of a price reduction law. Everyone at, the plant knew that a general price cut would follow within four to eight- weeks when a norm increase was announced.. Norms were -raised soMewhat more than prices were reduded: On the average, norms about 20 per cent and prices., about 17 per cent. ? 83. performance norms were. increased similarly 50X1 HUM throughout the Soviet Union. First, the norm increases at Plant No. 659 were not undertaken on the initiative of the plant manage- ment but on orders' from above.. .Second, all plants in the Sverd- lovsk area introduced these wage puts at the same time. They.were a general topic of conversation in the city when they occurred. The Soviet press did not ,publicize these measures but they were well known to the local population., 84. The department responsible fpr performance.norms at Plant No. 659 had the task of adjusting ite norm codes to. conform to these annual increases. Representatives-of the zavkom "technical SECRET. Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part - Sanitized Copy Approved for Release 2013/69/30 .plA-RDP81-01030R000100270005-6 85. 86. SECRET -14- engineers" and shop chiefs were busy with the norm office for weeks on end in making these adjuetment. They tried to soften the blow as much as possible and to arrange that no one job was more affected than others. 'For some. jobs this was very difficult as the norms could hardly be increased any more. In such cases, the norms for other work processes had to be increased more than foreseen, more than 20 per cent. 50X1 These measures applied only to the performance norms, of workers. Salaried employees were not affected. The workers, of course, 50X1-HUM complained bitterly about the norm increases. On several occasions a worker, on receiving an assignment in accordance with the new norm schedule, returned the work slip to the foreman and said in effect: **For this pay the machine can do the job itself." The political propagandists went to work when such cases occurred. The Party organizer or the zavkom representative invited the worker in for a talk. They explained that such steps were necessary for the economic growth of their country. They appealed to his better self and tried to make him see the wisdom of this policy. 87. The purpose of this wage policy was to increase productivity. This policy was successful. Increased productivity was achieved by harder work on the part of Soviet workers and by a rationalization of production processes. This wage Policy was probably the only way of forcing workers to put in more work. 88. This meant that the earned wages of the average Soviet worker slowly increased in the course ofa, given year as a result of 1 increased productivity. To be more exact, these wages followed a zig-zag path. They reached a high point shortly before an annual norm increase, a low point immediately,thereafter, and gradually returned to their former peak in the course of the following 12 50X1-HUM months. the average workers's wages decreased somewhat from 1946 to 1948. However, they remained approximately constant during the following four years, subject of course to the yearly, zig-zag fluctuation Oust described. Restrictions on Employment Mobility 89. A worker or employee at Plant No. 659 who wished.tofind employ- ment elsewhere first had to establish contact with his future place of work. This was generally accomplished through personal contacts and friends. Then he had to obtain a job release from the plant management, as required by law. This involved lengthy negotiations with the personnel chief who had to-give his approval. Success generally depended on the initiative and cleverness of the applicant in softening up the personnel chief. An application was never approved the first time it was submitted. But after months of effort, a persistent individual was generally .successful in obtaining his employment release.. After all,'a-dissatisfied employee was of no great value. 90. The situation outlined above apPliSdito skilled workers. engineers and technicians faced an' additional hurd in that they also had to obtain the approval of.the ministry. Unskilled workers, -on the other hand, had no difficulty in obtaining a job release. 91. Exceptions were madelln the case of personnel who wished to transfer from an enterprise in the second or third category to an enterprise in the first industrial aktegory. ,Ihe personnel chief had An Approve such applications, as first-category enter- prises 'were given priority over Lower-ranking enterprises in - hiring personnel. SuCh cases were quite gammon at :Plant No. 659 .8ECREt 50X1-HUM le ? 50X1-HUM Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 Declassified in Part --Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 SECRET -15- in 1949. Several large armament plants in the area Hwhich were being put into operation were workers at. that time. 92 Graduates of higher educational. institutions were compelled to remain for three years at the Work assignment they received upon 50X1-HUM graduating. this period of compulsory employ. ment was three years. seeking 50X1 50X1 -HUM 50X1 -HUM . . 93. There were .two exceptions to this A.young engineer could leave his place of Work during this period if he received permission to enter into graduate studies (aspirantura). He was only released by the plant on passing his entrance examinations. A young engineer could also change his place of employmdht during this three-year period if he transferred to a plant in a higher industrial catedopvi. 50X1-HUM I For xample a.yOung, man was allowed to transfer froth:Fihnt- No. 659 to a research institute in Moscow because the latter was a first-category enterprise. ' 94. Gracuates of higher educational institutions received their initial *assignments on the decision: of the university or institute director. The director made these. assignments in accordance with applications redeived:from various enterprises for the Services of students about to graduate. A prospective graduate's personal contacts were also of some importance in determining his assignment. 95. Most tekhnikumy were affiliated with or owned by an industrial enter- prise. Therefore, tekhnikum graduates reported to work it the controlling enterprise as a matter of course. Graduates of tekhnikumy were required to work for, three. years at jobs designated by the state. *96. A worker Who was unemployed wad free to look for and find a job in accordance with his own wishes. He wad not assigned a job by order ? of a labor office. But graduates of trade schools (remeslennlye uchilishchi) had no such freedom. Most trade schools were directed or owned by an industrial enterprise. Graduates of these schools were automatically assigned to the controlling enterprise. - 50X1-HUM Comments, The reader's attention ie called to the follow- topice in this revert ing time limitations imposed on the ac- 6imulation of raw materials cenilother stooks by Soviet industrial enterprises; the Mlassification.ef Seviet industry into three group', (not identified with the all-union, Union-1;4%1bn? and republic categories), with attendant privilege's for high-priority 'industries. 50X1 -HUM one point in the interview that most workers 'were 50X1-HUM in Group V and Group IV and workers in'the latter category receivedgml -HUM' 5,05 rubles per .hour. This would mean that an average worker received 650'.rubles per month, assuming 100 per cent fUlfillment Of norms and a work-month of 208 hours. the average 50X1-HUM machinist received from 800 to 900 rubles per month. It is possible that the average worker worked more than 208 hours per month or that he over- fulfilled performance norms and that these. factors explain this discrepancy. There is a slight possibility that the three categories of 50X1-HUM industry estabiishe oerning directors' resolution placed t Aviation Indus belong In the din the resolution of the Council of Ministers con-- funds,.issued on Deoember*5, 1946. However, the he Ministry of Munitions 'Industry, the Ministry of the lid cthers in the 'second-ranking group which clearly first category. Moreover, the resolution on SECRET 50X1-HUM Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6 ? ?? Declassified in Part - Sanitized Copy Approved for Release 2013/09/30 7. CIA-RDP81-01030R00010027000-6 ? director's funds makes bonuses) or exceptions nrnl,nhl publisneal SOR4T.. no mention mention of wage differentials (except for to restrictions on emplojilent mobility: a regulation which has not been The restrictions placed on the accumulation of raw materials and * other supplies by Plant No. 659 indicate tfiet the entire Soviet industry operates on a narrow margin of reserves on the enterprise level. Two conclusions may be drawn from this information. In the absence of central stockpiles of all types ,.of industrial supplies, this shortage of reserves on the entere prise level*oould prove disastrous to Soviet industry in the event of war or ooula create inflexibility. in Soviet foreign trade policies. If extensive 6entral stockpiles do 'exist, the lack of .local reserves might indicate that the Soviet Union *does not contemp?late any major aggression at the present time. Plant No, 659 raised labor productivity , by 20 per oent each year during his employment* there. This figure appears much too high. 50X1 50)6 :HUM. 50X1 -HUM 50X1 -HUM ? 50X1 -H UNA j 50X1 -H UM Declassified in Part - Sanitized Copy Approved for Release 2013/09/30: CIA-RDP81-01030R000100270005-6