JPRS ID: 8767 USSR REPORT TRADE AND SERVICES

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i6 NOVEM6ER i979 CFOUO iSl79~ i OF i
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JPRS L/8767
16 November 19~ 9
_ ~JSS~ Re ort -
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~ TRAAE AND SERVICES
(FOUO 15/79)
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USSR REPOR~: ELECTRONICS AND ELECTRICAL ENGINEERING.
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JPRS L/8767
16 N~v~:nber 1979
USSR REPORT
TRADE ANl1 SERVICES `
I
(FOUO 15/79~
- CONTENTS PAGE
INTERNATIONAL ECONOMIC RELATIONS _
On CEMA's Treaty-Making Pawer -
- (Ye. T. Usenko; SOVETSKOYE GOSIJDARSTVO I PRAVO,
Jun 79) 1 _
MANPOWER: LABOR, EDUCATION, DEMO(~iAPHY
- Inter-Regional Use of Labor Resources Discussed
I (A. Khaytun; VOPROSY EKONONN~KKI, Aug 79) 13 ~
i Ways To Improve Efficiency of Labor Discussed
~ (A. Dadashev; VOPRbSY EKONOMIKI, Aug 79) 25
Part-Time ~3nployment in Estonia
(L. Kuleshova, T. Skaltberg; VOPROSY EKONOMIKC,
Jun 79) 34
TRANSPORTAT ION ~
TU-1~+4: New Mo~~ors Make 7,000 Km Flight Range Possible
~AIR & COSMOS, 1 Sep 79) 42 -
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INTERNATIONAL ECONOMIC RELATIONS
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ON CEMA'S TREATY-MAKING POWIIt ~
Moscow SOVETSKOYE GOSUDARSTVO T PRA~O in Russian No 6, Jun 79 pp 98-106 -
[Article by Ye. T. Usenko, doctor of juridical sciences, professor, and
Worthy Scientist of RSFSR]
I [Text] History's first internacional organization of the new socialist ~
type--the Council for Mutual Economic Assistance--is this year celebrating
- its 30th anniversary. The Council's activity represents a unique experiment
in international cooperation on an equal footing, a harmonious combination
~ of national and international interests of countries, an.~ a practical imple-
, mentation of the principles of socialist internationalism. The principles,
; forms and methods in the Council's organization and activity, which have
-I demonstrated their indisputable vitality under the difficult condi~ions of
the genesis and development of the world socialist system and have repeat~-
~ edly been tested by the socialist countries when they set up other interna-
tional organizations, have played and are continuing to play an important
- role in shaping international relations of the new type. Tk~ey are also hav-
ing a definite impact on the development of general principles and norms `
- governing relations among states in the conte~orary world. _
During its existence CEMA has made an inestimable contribution to develop-
ment of multilateral cooperation among its members, thereby promoting faster
planned economic growth and a stronger material foundation for the unity of
these countries. The rale of the Council has grown particularly in the pe- -
riod of efforts to implement the Comprehensive Program of Socialist Economic
Integration. At present the commonwealth of CEMA member countries ia the
i most dynamic and the most closely knit economic system in the world. Yet
_I the significance of the Council's activity extends far beyond the realm of
economic cooperation am~ng its members. Ita activtty is helping the world
socialist system to achieve new sLCCess along the decisive lin~s of competi-
' tion of t'he two world systems and is conducive to a growth of the economic
~ might of the com~onwealth of socialist countries, which has now become the
principal factor for peace, to relaxation of international tension, and to
~ assurance of conditions favorable to devel:opment of the worldwide revolu-
' tionary process. ~
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_ As an open international organization CEMA favors development of relations
not only with the socialist countries which are not members of the Council, -
" but also w~.ch other countries, which is in line with the objective needs of
internati.onal economic life. CEMA is playing and unquestionably will play
ti an ever greater role in this important area. The growth of the interna-
tionai prestige and importance of CF.M9 is being vividly manifested in the _
geographic expansion of the sphere of its activity. From the regional in- ~
ternational organization it was in the initial period of its existence CEMA -
has become an organization whose members are states located on three conti-
~ nents of tne globe. Entry of the Socialist Republic of Vietnam into CEMA -
was one of ~he notable events of last year. Under an agreement with CEMA,
_ Yugoslavia, a social~st c~untry, taKes part in the proceedings of its bodies
and organs oii an equal footing. On the basis of a special agree~tent cooper-
ation is developing between CEMA and Finland--a c.ountry with a different so-
cial system than the member countries of the Council. Iraq and Mexico have
- similar special agreements with CEMA. L~ large number of international orga-
nizations have established and are maintaining relations with the Council in
' various forms. In 1974 CEMA was accorded the status of an observer in the
U:~ General Assembly. Negotiations are being conducted concerning deeelop-
ment of relations between CEMA and the European Economic Community.
The broader *_he development of CEMA's externa"1 relations which must be set
forth in the form of a treaty, the greater the urgency of the question of -
the Council's treaty-making power. It has assumed particular urgency in
- connection with the initiative shown by CIIr1A on the question of establishing
treaty ~elations with ~he EEC and the campaign waged about this in the west-
_ ern, especially West German, press to the ef~ect that CEMA supposedly does
- no~t possess the status of an international person in international law ~
(mezhdunarodnaya pravosub"yektivnost'), at least not an international person
with power to make treaties, or even that it is r.ot capable of being a ;
- proper partner to negotiations at a11.Y For all the insubstan~tiality af
such assertions, it obviously would not be wise to let them pass unnoticed.
The main thing is that the questions of the competence of C~MA to conclude �
- treaties have still not been sufficiently studied in our literature on in-
= ternational law. The present article is aimed at filling this gap to some
degree. ~ `
CEMA is an interna*_?~on?~ ~nd intergovernmental organization. An organiza-
tion of that kind is characteriz~d by the following features: -
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a) it has been created by agreement among states, as a rule by intergovern-
- mental treaty; -
b) its members are the states themselves; ,
c) it possesses its own will which is ~elatively autonomous wit~ respect to ~
the will of the member states. Relatively autonomous because its competence
is based on the intergovernmental treaty, and consequently can be altered by =
the member states, and ~econd, because its will is shaped by the member _
states.
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Nevertheless, its will is autonomous, since it does not constitute the mere
sum of the wills of its members, but constitutes a new attribute in just the
~ same way as the organization itself is not reducible to the mere sum total
of the states, but constitutes a distinct intergovernmental creation. For
that reasot~ the member states have no right either separately or all to-
gether to issue any sort of prescript~ons to the organization. They can -
only participate through their representatives in the proceedings of its
bodies and organs in the forms and in accordance with the procedure set
forth in its charter, and thereby partici.pate in shapi:~g its will;
' d) the organization must have organs to express its will;
e) it must be lawful; neither 3ts goals and principles, nor its activity may
contradict the goals and princLples of the UN Charter.
In our apinion one other criteria should be added to the characteristics we
have enumerated:
f) the organization promotes cooperation or organizes cooperation of statAs
in the domain of their exercise of their sovereign rights.
This addition is necessary since, as the practice of socialist economic in- _
tegration has specifically demonstrated, states may set up organizations
i which meet most of the criteria mentioned and, nevertheless, are not inter-
! national persons in international law, but ~ire juridical persons in civil
law. Th?ir activity does not lie in a domaj.n in which cooperation of states -
- is related to the exercise of their sovereign rights by those states. Here
we have in mind so-called international econ~mic organizations (rIIthO) in the
realm of civil law. This last characteristi~: could also be important in
cases when there is a need to separate interr~~ational (intergovernmental) or-
ganizations from supranational organizatians.
So, if an organization meets the objective criteria we have enumerated,
which were formulated on the basis of the practice of states, then beyond
all doubt it is an international (intergoverramental) organization and conse-
quently an international person in internatior~al law.
This s~atement differs from whac is not infrequently asserted in the West.
~ Opinions are expressed to the effect that 3n international organization must
' be recognized as an international person in intertiational law by third =
states before it ma.y attain that status.2 How~ever, it is not difficult to
- grasp the corr~ctness of the opposite point of view, which holds that every
organization meeting the criteria noted above possesses the status of an in- _
ternational person in interr~ational law. We must above all recall what we
' mean in general when we say that a person is the sub3ect of a right. By
subject of a right we mean a natural or legal person who participates or is
capable of ~articipating in legal transaction~.3 Taking this proposition
' into accour.t, we can say that every internatinnal organization which pos-
sesses its own will is involved in internatio~.la1 legal relations--with the _
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- member states at the minimum. This itself is sufficient for it to be
treated as a pers_~n in international law.4 It is quite obvious that neither
third states nor ot:her international organization~ can have an influence on
this proposition in either a positive or negative sense. Consequently, rec-
ognition of an international organization by third states or other organiza-
tions has declarative, but not constitutive character. It does, of course, -
~ have significance, since it opens up possibilities for relations between the
organizations and the relevant third parties, but it is not constitutive.
Speculation in the western juristic literature, then, to the effect that
"recognition" of CEMA by the EEC would give the Council same sort of advan-
tages with respect to establishing its status as an international person in
' international law,s are without basis.
Matters stand differently with supranational organizations. These organiza-
tions lay claim to rights far exceeding the limits of international law.
_ Without going deeply into thi~ issue, we can clarify this idea with the fol-
lowing simple illustration. Let us suppose that a supranational organiza- -
tion has expressed a desire to take the place of i~s member states in a mul-
tilateral treaty or in an international organization. It is quite clear
that this could not take place without recognftion of those powers by the
other participants in the international treaty or international organization
_ notwithstanding that the member states of the supranational organization
have consented to this replacement. As a rule the subject of a right may
_ not be replaced in legal relations by another subject unless this is con-
sented to by all other participants in the given legal ~elation.
This example shows that supranational powers require un the outside recogni-
tion by third parties which are subjects in international law; otherwise
such powers do not really exist. Insofar as supranational organizations, as
we conceive it, have a dual nature (an international organization on the one
hand and supranational on the other), to that extent there are grounds for
the view that their recognition could also have dual significance. They ~
might be recogriized sol~ly as interna~ional organizations. In that case
recognition has declarative significance, as we have a~lready pointed out.
But if the organization is recognized in its supranational dimension, such
- recognition becomes constitutive in nature.
- Statement of the principle that an international organization that meets
certain criteria ipso facto possesses the status of an international person _
= in international law signifies establishment of its "ob3ective status as aii
international person," i.e., recognition that it is an international person
in international law erga omnes (with respect to all), and not only with re-
spect to the founding states and third states and international organiza-
tions which have recognized it. Recognition by third parties signifies no _
more than their ciesire or readiness to enter into those relations with a
given organization, assuming its consent, which it is empowered to conduct
and which might be of interest to the two parties.6
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As an international person in international law every international organi-
zation possesses a certain legal capacity. Though the status of an interna-
tional person in international law is indivisible (one cannot imagine a semi-
- person or quarter-person), international legal capacity may indeed be lim-
ited. International organizations possess only limited legal capacity,
which is defined by the goals of their creation. The scope of the legal ca-
pacity of any given organization is established by its act of founding or -
other nor~a't'ive acts. The legal capacity of international organizations as
a rule also includes their power to conclude treaties in international law.
The questions of the subject, the scope and the other subje~ts of interna-
tional law with which they can conclude such treaties--all these matters are
, defined directly or indirectly in the founding documents of the relevant or-
ganization or in decrees of its official bodies. Since the charters of many
or even a majority of organizations do nat refer to this at all, this legal
capacity is understood to be implicitly granted, and its content is derived ~
from the general purposes, functions and tasks of the organization.
Now let us examine CEMA's legal capacity and status as an international per-
son in international law on the basis of what we have said. Since CEMA does
meet the criteria indicated by the letters a, b and d at the beginning of
the article, it is self-evident that we are analyzing the other criteria.
- First of all--the question of CEMA's own will: in what forms is it ex-
pressed, how does the process of formation of its will take place, and what
significance does its independent wi11 have for the member states?
All discussions, consultations and studies undertaken within the framework
of an international organization ordinarily have as their ultimate purpose
the adoption of specific legal acts in which its will is expressed. In CEMA ~
the principal acts of this kind are reco~nendations and decisions. The term
"resolution (postanovleniye)" (see Rule 27 of the Ru1es of Procedure of the
CEMA Session) is used as a general term to cover both these acts, as well as
certain others. No resolution (this refers above all to recommendations and
decisions) may be adopted without the consent of the interested member coun-
tries. Moreover, any country is entitled to declare its interest in any _
particular matter being discussed in the Council. If a country declares _
that it is interested in an issue which is to be the subject of a resolution,
and if it opposes, then the resolution cannot come into being (Paragraph 3,
Article 4, of the CEMA Charter). Consequently, the principle operative in
CEMA is not unanimity of all the member states, but unan~mity of only the
~ interested states. A resolution may therefore be adopted not only by the
votes of 10 countries, i.e., of all the member countries participating in
i the proceedings of CEMA, but also by those of 9, 8 or even 3 countries, if
the other memb er countries of the Counc~.l declare themselves not to be in-
terested. The resolution does not extend to the countries who have declared
themselves to b e uninterested in this question. But any of these countries
- can later join in the resolution adopted in the Council (Paragraph 3, Arti-
- cle 4, of the CEMA Charter).
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Th~ legal procedure we t~ave sketched here, which is the basis for ahaping
the will of CEMA, shows that the attempts which have been made in the West
to cast do?ibt on CEMA's status as an international person in international
law because it supposedly does not possess its own will, but is an instru-
ment of the foreign policy of the Soviet Union, can only be termed unscru-
pulous fabrications.~ It is simply impossible in this context to prevail
- over an individual state. EvPryone familiar with the principles of law and _
the meth~ds of operation of CEMA knows that no resolution can be adopted in
any of the bodies or organs of the Council against the will of even one in-
~ dividual state. -
Certain western authors have tried to picture this legal procedure for for-
mation of the will of CEMA as a shortcomi.ng of that organization,8 which is ~
also erroneous. This procedure motivates the states only to seek mutually
acceptable solutions, and a resolution adopted on this basis unquestionably
has ~reater moral force than one which does not take into account the will
_ of the minority. It is also erroneous to suppose that the enactments of
CEMA are not legally binding.
As already noted, the will of CEMA can be expressed in recommendations and
decisions. Under the Council's Charter decisions are made on organizational ,
and procedural questions. They may be taken by all organs of CEMA: princi-
pal and auxiliary organs, standing and ad hoc organs, including work groups-- _
but only, it goes without saying, within the limits of the competency of the -
relevant organ. A decision immediately a~quires legal force and becomes
binding on the relevant organs of CEMA and upon the state from the moment of
_ its adoption.
- Recommendations are of a different character with respect to their content
and legal effect. They are adopted on questions of the economic and scien-
tific-technical cooperation among meml~er states. Only the principal organs
of the Council have the power to adopt them. In ordar to make the legal
significan~e and legal consequences of CEMA recom~endations clear, we must
distinguish between adoption of a recouanendation in the Council and accep- ~
tance of its recommendation by the states to which it is addressed. Adop- ;
tion of a reco~nendatiun in the Council by representatives of inember states, ;
regardless of its specific content, does give rise to certain formal legal
relations between CEMA and those countries to which it is addressed. These i-
legal relations come about by force of the constitution and the rules of
procedure. '
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The Council is required to submit the recommendation for consideration of ~
member countries. A country to which a recommendation is addressed must '
within 60 days examine it and notify the Council of the results of this ex- ;
amination. If the countries accept a reco~endation of the Council, which i"
as a rule does occur, then new legal relations come about which are based i
partially on the Charter, but mainly on the content of the reco~endation. i
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Under the Charter acceptance of a recommendation gives rise to the state's
duty to carry out the recommendation and inform the Council abcut progress
in its executi~n. Co~sequently, the legal obligation of a recommenation ac- _
cepted by a country comes about by the force of the Charter itself. A rec- -
- o~mendation casts off the attribute of a unilateral enactment o.f CEMA and
becomes a form of legal relation between the Council and each country sepa- -
rately which has accepted the recommendation. Moreover, acceptance of a
reco~endation may give rise to a treaty in international law among the mem-
' ber countries if by virtue of its content it creates rights and duties for
- the member states with respect to one another. As an example of treaties of
this kind, which we refer to as sui generis treaties,9 we might point to the
General Conditior.s af Deliveries of Commodities Among Organizations of CEMA
Member Countries and the Comprehensive Program for Further Extension and Im-
provement of Cooperation and Development of Socialist Economic Integration _
of CEMA Member Countries. A recommendation of the Council accepted by the
- countries is carried out in each country by decision of its government or
other campetent authority in accordance with its legislation, i.e., by
transformation of the obligations envisaged in the recommendation into mu-
_ nicipal law. All CEMA recommendations accepted by the countries have the
same legal nature and juridical force. But the norms they ~mbody may by
their nature be reco~endations, directives or specific obligation,.
It follows from all we have said about the legal enactments of CEMA that
this international organizat ion possesses its own will, which is distinct
' from the will of the member states, and that this will may have (and actu-
~ ally does have) great significance to development of economic cooperation of
~ the member states both among themselves and also with third countries.
,
As an international person in international law CEMA possesses international -
legal capacity and comgetency (pravo- i deyesposobnost'), includ~ng the
power to conclude international treaties. CEMA's legal capacity is definecl,
- to b e specific, in Article 3 of the 1974 version of the Charter. Para-
- graph 1 of that article indicates its functions, while Paragraph 2. indicates
its powers. The second paragragh states that CEMA is empowered: 1) to make S
recommendations and decisions, which has already been discussed above, and
2) in accordance with the Charter "to conclud~ international agreements with
the member countries of the Council, with other countries and with interna-
tional organizations." -
-I The provision concerning the treaty relations of CL~MA with third countries
~ is elaborated in Article 11 of the Charter. Among other things, it states:
; "The conditions for the participation of countries which are not members of
~ the Council in the proceedings of organs. of the Council or their cooperEtion
' with the Council in other forms shall be defined by the Council in agree-
! ments with those countries--as a rule by the conclusion of agreements." As
~ for relations with other international organizations, Article XII has this
; to say: "The character and forms of these relations shall be determined by =
the Council in agreement with the relevant organs of the United Nations and =
international organizations, specifically by conclusion of agreements."
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It follows from the provision cited that CEMA's power to conclude interna-
tional treaties is set forth in its Charter expresis verbis in an altogether
- clear form. We should add to what we have said that CEMA has repeatedly ex- _
erctsed this power. For instance, it concluded with the Soviet Union an
agr~ement regulating matters related to Zocation of CEMA institutions in ttie
USSR. It haG concluded similar agreements with other member states, specif-
~ ically with Hungary, GDR, Poland, Czechoslovakia and Bulga_ria.
CEMA has established treaty relations with a numbEr of states which are not
its members as well. We are referring to treaties mentioned above with Yu-
goslavia, Finland, Mexico and Iraq. The Council has treaty relations with
specialized organizations of the socialist countries, with the Banube Com- _
mission, with the International Agency for Atomic Energy, maintains inten- '
- sive treaty and nontreaty relations with various organs of the United Na-
. tions, with its specialized institutions, and also with other international
- organizations: for example, with the Center for Industrial Development of
I-
the Arab States. .
The content of all the treaties we have mentioned is diverse: from estab- If
lishment of the scope of contacts among the countries entering into the i-
treaty to regulation of matters concerning cooperation betw2en CEMA member
countx~:;s and a third country, as is the case in the treaties with Finland, ir
Mexico and Iraq.
et us turn to the question of the scope of CEMA's treaty-making power I
Now 1
or competer~cy in its essence. The CEMA Charter does not spell out the spe- _
cific cases in which CEMA is empowered to conclude international treaties~ I~
~ Paragraph 2 of Article III of t:~e Charter has decisive importance to deter-
mination of the scope of CEMA's treaty-making power. It follows from this
paragraph that CEMA has the right to conclude any international treaties i
which are in conformity with its Charter. The requirement that the treaty
be in conformity with the Charter is the only limitation on CEMA's~treaty- i
- making power. But what does "in conformity with the Charter mean. It i
means above all that it must be in con~ionstofWCEMAtare definedtinnthefsame ~
tions. It is noteworthy that the func
article in which the question of its powers to conclude international trea- i_
ties is dealt with. And its functions are defined very broadly. I will ;
name only the most important ones: organization of comprehensive coopera- i
tion of inember countries in the direction of the most rational utilization ,
of their natural resources and accelerated development of the product3ve ~
forces, and also promotion of the development of socialist economic integra- _
tion; promotion of improvement of the international socialist division of
labor by coordinating economic development pl:ans and through industrial spe-
cialization and cooperation of the member countries9 assietance to the mem-
ber countries in drafting, coordinating and performing joint measures in the
field of development of industry, agriculture, trassandtservicesnamongithe
investments, development of co~erce in commoditie
member states and also of the member states with third countries, as well as
exchange of scientific-technical advances and progressive manufacturing
know-how.
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Tn spite of this broad definition of the organization's functions, Para-
- graph 1 of Article III of the Charter does not provide a complete list. The.
last sentence of that paragraph states that the Council is also empowered to
undertake "~dther actions necessary to achievement of its goals." Conse-
_ quently, in all those f ields to which its �unctions and goals extend the
Council has the power to adopt both decisions and recommendations, as well
_ as to conclude international treaties. This idea can also be expressed dif-
ferently: on all matters on which the Council is empowered to adopt deci-
sions and recommendations, it also possesses the power mutatis mutandis to
conclude international treaties.
- It is absolutely necessary to ~ive this conclusion special emphasis bec.ause
it demonstrates the erroneousness of the hypotheses expressed in the western
literature ~~~~cerning the insufficiency of the capacity of CEMA to conclude -
treaties with the EEC.10 Perhaps it would be more legitimate *_o ask: Is
the EEC for its part empowered to conclude such a broad treaty as is called
for in the interest of promoting broad economic cooperation between the
- countries belonging to the two organizations?
The relatively narrow treaty-making power of EEC is to be explained by the
supranational characte~ of this organization. Such an organization limits
the sovereign rights of t.he member states and therefore can possess only
those powers which have been altogether clearl3� granted it on specific mat-
ters. This has been pointed out by Professor (A. Blekman): "The competency
of other inter*~ational organizations is very broad, they do no~ possess the
supranational righ ts of., say, the European co~munities, and there is there-
fore no need to restrict their competency in the interest of the sovereignty
of the member states and their constitutional considerations." For the Eu-
- ropean co~unities, on the other hand, "the principle of individual powers
also operates with respect to the right to conclude treaties, by contrast -
~ with international organizations."11 -
i
What they have said makes it clear why the attempts of certain western au-
Chors to find in the CEMA Charter a list of its individual treaty-making
powers was unsuccessful. There are no such provisions there, nor should
there be. Accordingly, the conclusion to the effect that the absence of
these individual powers makes the competency of CEMA with respect to sub~ect
matter unclear, should also be seen as without basis.
I It is a quite different question that CEMA does not possess exclusive compe-
tency, i.e., that its competency does no*_ exclude the competency of the ffiem-
_ ber states, as is the case in the EEC. The CEMA Charter to some extent cre-
~ ates a parallel treaty-making power of the organization and of the member
states. This not only does not detract from the effectiveness of the treaty-
making power of CEMA, but on the contrary opens up broader opportunities for
its exercise. -
Let us suppose that CEMA is concluding an international treaty in its own -
name and the subject matter of that treaty are not only the acts of the
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organization as such, but also the relations of the organization's member -
states with one another and also with third countries. What are the legal
means which CEMA possesses to discharge its obligations arising out of such
a treaty? The same as it possesses in general--recotnmendations and deci-
sions, It follows from what we said earlier that these are effective means.
But if the desire is to make the treaty directly binding on the member
- states as well, then there are two ways to achieve this. Eitiier such a
tre3ty, before its adoption by the CEMA Session, should be approved by the
_ member states, as was the case with the agreement between CEMA and Finland,
- or that same treaty should be simultaneously signed both by CEMA and also by
the memb er countries. If in the latter case the treaty is to be signed with -
some organization, then naturally the question would arise of its being _
signed on that side not only by the organization, but also by the member
state.
= The question of' the participation of the member states in a treaty also
arises in the specific case of the possible treaty between CEMA and the EEC. _
Ma.tters are unclear and debatable as to what extent the EEC is competent to
- conclude a truly broad treaty concerning cooperation. The competency of the -
EEC to conclude treaties with third states (leaving agreements concerning
association to one side) has been clearly provided for in the Rome Treaty '
Establishing the EEC solely with respect to trade policy (Article 113). As
for other fields, the treaty is silent about them. Indeed, Article 113 it-
self speaks only about the shaping of a joint trade policy on the basis of =
uniform principles. It would seem that it is not mandatory that the joint
trade policy be implemented through the EEC. This does not follow by neces-
sity from the article indicated. But even if we assume that Article 113 of
- the Rome Treaty does actually grant the EEC exclusive competency on this '
~ matter, there still remain many other fields where there exist eithe. paral- _
_ lel competencies of the Community ann the member countries, or the competen-
cies of the member states alone.
In the light of this it would seem most sound if a possible treaty were
signed on the EEC side as a joint treaty, i.e., by the organization and by
the member states. That solution would al~o eliminate the issue of the suf-
ficiency of powers of either organization. It has indeed been proposed by
CEMA. If attempts are, nevertheless, made to represent the competency of
CEMA as insufficient so as thereby to open up the road to direct treaty re-
- lations between the EEC and the individual CEMA member �states, then quite
naturally the supposition could arise that the EEC wishes to deri~~e unilat-
eral benefits. But the EEC should take into account that under the Compre-
hensive Program the member countries of CEMA have assumed an obligation "to ,
coordinate their foreign economic policy in the inter~st of normalizing in-
ternational trade and economic relations, above all to eliminate discrimina-
- tion in this area" (Paragraph 3 of Section I). j
Invigoration of economic relations between CEMA member countries and states
with a different social system is an important condition for expansion and .
reinforcement of constructive tendencies in worl.d politics and for strength-
ening the material foundation of peaceful coexistence and peace throughout
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the world.~ That is why in the preamble of the CEMA Charter the member coun-
tries confirmed "our readiness to develop economic relations with all coun-
~ tries regardless of their social system and go~~ernment...." The treaty re-
lations of CEMA, whose legal fout~dations have been examined in this article, -
Y play an important role in that important effort.
FOOTNOTES
1. For more, see: Lebahn, A., "Sozialistische Wirtschaftsintegration und
Ost-West-Handel im sowjetischen internationalen Recht," Berlin (West),
- 1976, pp 368-369.
- 2. For instance, in the opinion of Seidl-Hohenveldern this recognition is
indispensable to establishment of the status of all international orga-
nizations as international persons in international law with the excep-
tion of those which posse~s "objective" status of international persons -
in international law, as defined by the UN Ir~ternational Court concern-
ing the United Nations (see: Seidl-Hohenveldern, J., "Das Recht der
internationalen Organisationen einschliesslic.h der Supranationalen
Gemeinschaffen," Cologne, 1967, p 701).
. 3. "In the concept of the subject of a right as traditionally understood,"
writes R. 0. Khalfina, "are merged two ba~ic characteristics: the pos- -
- sibility of participating in various legal relations and actual par-
ticipation in them" (Khalf.ina, R. 0., "Obshcheye ucheniye o pravootno- ~
slienii" [Ceneral Doctri_:ie of 'Legal Relations], Moscow, 1974, p 114).
- This posttion was expressed straightforwardly in the well-known defini-
tion of the subject of a right given by S. F. Kechek'yan (Kechek'yan,
S. F., "Pravootnosheniya v sotsialisticheskom obshchestve" [Legal Rela-
tions in Socialist Society], Moscow, 1958, p 84). The Soviet doctrine
- of international law takes this as its point of departure. "However
the definition of the subject of international right or international
person in international law is defined," R. L. Bobrov writes, "it must
reflect two organically interconnected elements: 1) the ability to
participate in international legal relations and 2) actual participa-
tion" (Bobrov, R. L., "Osnovnyye problemy teorii mezhdunaro.~inogo prava"
- [Basic Problems in the Theory of International Law], Mosc^::, 1968,
p 68). Some authors, including western authors, define the sub~ect of
~ a right as the person able to have rights or actually possessing them
("competent person"). But this aoes not alter the essence of the mat-
ter. ~'~,egal capacity," writes H. Mosler, "is an inseparable construc-
tive element of legal relations of any kind" (H. Mosler in Strupp-
Schlochauer, "Woerterbuch des Voelkerrechts," Vol II~, Berlin, 1962,
p 665). It is an attribute of a person who is the holder of the -
rights, duties and powers of a person (Ibid.).
The term "subject of a right" is one of those general terms without
which international cooperation would be extremely difficult.
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4. Any international (intergovernmental) organization created and op-
erating lawfully is a person in international law, since its act of es-
tablishment necessarily regulates relations between the organization
_ and the member state (Ushakov, N. A., "Persons in Contemporary In-
- ternational Law," "Sovetskiy Yezhegodnik mezhdunarodnogo prava 1964-
1965" [Soviet International Law Yearbook 1964-1965], Moscow, 1966,
p 68). "The number of participants or its recognition by states
which are not within it have no effect on it~ status as a person1� _
(Ibid.) .
_ 5. On this, ~ee: Lebahn, A., Op. cit., pp 367-368.
6. Ye. A. Shibayeva, who originally adhered to the opinion that recogni- ~
tion by third states "has constitutive significance for an interna-
tional organization" (Shibayeva, Ye. A., "On the Problem of Recognition
of Specialized United Nations Institutions in International Law,"
PRAVOVEDENIYE, No 2, 1968, p 110), later came to the conclusion that -
this recognition "does not have constitutive significance...." "In '
this case the role of recognition, just as in the recognition of sov-
ereign states by one another, consists in establishing the appropriate -
juridical basis for relevant mutual relations among the parties"
(Shibayeva, Ye. A., "Pravovoy stutus mezhpravitel'stvennykh organi-
zatsiy" [Legal Status of Intergovernmental OrganizationsJ, Moscow, -
1972, p 103). ~
7. See the debates in the European Parliament, VERHANALUNGEN DES EURO- .
- PAEISCHEN PARLAMENTS, No 203, p 153 ff.
8. See, for example: Pommer, H. I., "Politik und Wirtschaft im Sowjet-
block," Mainz, 1966, pp 30-31; Caillot, J., "Le CAEM. Aspects ~uri-
diques et formes de cooperation economique entre les paye socialiates," ~
Paris, 1971, p 95. ~ '
9. For more detail, see: Usenko, Ye. T., "Legal Aspects of the Comprehen- -
_ sive Program for Socialist Economic Integration," SOV. GOSUDARSTVO I
PRAVO, No 7, 1973, pp 63-69; "Sovet Ekonomicheskoy Vzaimopomoshchi.
Osnov:iyye pravovyye problemy" [Council for Mutu31 Economic Assist8nce.
Basic Legal Problems], Moscow, 1975, pp 225-227, 233-235.
- 10. On this, see: Lebahn, A., Op. cit., p 369. ;
11. EUROPARECHT, No 2, 1977, p 121.
. COPYRIGHT: Izdatel'stvo Nauka, SOVETSKOYE GOSUDARSTV~ I PRAVO, 1979 ~
7045 ~ ~
CSO: 1823 ~ ~
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MANPOWER: LABOR, EDUCATION, DEMOGRAPHY
INTER-REGIONAL USE OF LAEOR RESOURCES DISCUSSED
- Moscow VOPROSY EKONOI~IIKI in Russian No 8, Aug 79 PP ~7-55
[Article by A. Khaytun: "Inter-Regional Use of Labor Resources"]
[Ter.t] The organizational forms of the inter-regional use of labor re-
sources and of the social infrastructure* connected with the development
' of the eastern regions of the co�antry have at the present time developed
into a system which is united by the concept of "the special duty expe-
dition method." The employment of this method is a result of an accele-
ration of the processes of drawing natural resources, above a11 the petro-
leum and gas deposits of Western Siberiay into economic turnover. The
necessity has arisen for sh~,rply shortening the time involved in con- -
structing the most important production facilities; for ensuring the
attraction of qualified labor resources to areas with d.ifficult natural
and climatic conditions; and for achieving a high level of mobility for
construction and for the organizations of the petroleum and gas industry,
of geological surveying, and of other branches.
*The "social infrastructure" is regarded as a system of institutions, en~- -
terprises, and organizations which provide the conditions for the life and
for the satisfaction of the material and spiritual needs of a population.
The material-physical basis of the social infrastructure is made up of the
buildings and structures of the housing fluid, public health, trade, domes-
tic services, cultural services, and others. With regard to the tasks of
developing new territories the social functions of the enterprises and =
organizations of the branches of material production and of the infrastruc-
~ ture '(transportation, co~nunications, the system of energy coa�nunicati~ns,
~ waste removal., professional training, supplies, and;~so forth) are included
to the extent to which these branches cover services for the population and
the satisfaction of social needs direct~jt in the process of labor. The
~ social infrastructure of the territories which :~re being developed is inter-
preted a,s a resource which creates the general conditions for the produc-
- tion work of the basic branches.
~
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- 4lhile it is the initial stage in accomplishing the social task of settling
territories which are favorable for habitatian, the development of the
social infrastructure of resource regions is at the same time a condition
for attaining production goals, stabilizing prc~duction collectives, and
- increasing labor productivity.
A program for developing new territories is characterized by a definite
uncertair..ty with regard to the times a goal can be achieved, the needs for
~ resources, and final results. For this reason, before making large capi-
tal investments there has to be a realistic confirm~,tion of their high
effectiveness and, thereby, the establishment of the priority of a given
investment program ovei� analogous nations.l economic pro~ects. For ~xample,
in the petroleum and ~as areas of Western Siberia the construction of
cities and settlements took on a wide scope only after the fields of the
Middle Priob'ye had begun to ensure an annual increase in petroleum ex-
- traction of 33 million tons.
Frequently the infrastructure of new areas begins to develop rapicll.y anly
after the commissioning of production facilities and is created simulta- ,
neously with them as a result of the coincidence of peaks in the workloads _
of production and civilian housing construction and of the overloading of
the capacities of the construction industr,y and, therefore, lags behind
basic production. The greatest difficulties are connected with the sa-
tisfaction of the needs of the population for new cities and settlements .
which, in its turn, influences the rates of production development and �
reduces the economic effectiveness of a. program. The ~onception of a
special duty expedition method has been advanced as a means of eliminating i
- these local contradictions between the production and social goals of the
development of new areas. I_
- The special duty expedition method provides for the performance of f the I
in remote areas and areas being newly developed by regular shifts o
subdivisions of construction arid installation organizations and industriel -
enterprises which are located in inhabited areas. This method is used
in the petroleum, gas, and timber industries, ~n geological surveying,
and in construction by the Ministry of Construction for the Petroleum and
- Gas Industry. Despite the fact that its organizational forms are in the
stage of establishment, the c~,imensions of the use of this method are quite ~
wide. According to expert estimates, more than 50,000 people are employed
in the petroleiun, gas, t~,nd timber industries, in geology more than 130,000
people perform 25 percent of the work, and in the construction of petro- _
leum and gas industry facilities around 80,000 people perform ~+3 percent
of the construction work.
It is useful to perform an analysis of ~Che effectiveness of the special
duty expedition method on the basis of the materials of the or~anizations
of the Ministry of Construction for the Petroleum and Gas Industry, since
in this branch its use determines the basic work program. The organiza-
tions of this ministry have accumulated unique experience in the rapid
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concentration of resources, capacities, and qualified cadres at such large
ob~jects of national economic importance as the Central Asian-Center system
' of gas pipelines and the "Soyuz" gas pipeline. The Ministry of Construc-
tioii for the Petroleum and ~as Industry is the basic contracting ministry -
for the petroleum and ~es complex of Western Siberia where construction
schedules are, as a rule, extreme~y condensed.
The construction of tY~e linear part of main pipelines is performed by -
mobile subdivisions. For pipeline tracts and the construction of surface
structures workers who were employed during the construction season are
billeted in field towns. iheir families usually live in cities and set-
- tlements far from the construction site. Regardless of where they axe
located, the contracting organizations of the branch perform work in ~
~ many areas of the country. Thus, in 1977 the "Shchekingazstroy" trust
~ performed construction work in 26 oblasts. At the most impartant con-
_i, struction pro~ects of the petroleum and gas complex of Western Siberia
(for example, the Vyngapur-Chelyabinsk gas pipeline), elong with terri-
II torial organizations, workers from trusts in the European part of the
' country and Central Asia are employed in the expeditions.
~ The block-sets method which signifies tne shifting of the basic amount
- of construction work to the plant area and the concentr.ation of the pro-
' duction capacitie~ of construction organizations and their permanent
t~rritorial assignment is acquiring ever increasing importance in the
construction of pumping and compressor stations. The assembling and
adjustment of equipment blocks is performed at the construction site.
Since the construction schedules are greatly shortened and the number
of construction sites and the zone in which the construction and instal-
lation organizations operate increase, the special duty expedition method
has proven to be the only possible method of organizing the work.
In 1978 more than 30 percent of the employees worked on the basis of the
inter-regional use of labor resources at the ob~ects of the Ministry of
Construction for the Petroleum and Gas Industry in Western Siberia. In
the future it is planned to enlist 70,000 to 80,000 construction workers
here. Given the creation of the proper conditions, the scope of the
inter-regional use of labor resources in petroleum and gas construction
could be increased. Nevertheless, the basic forms of using labor re-
~ sources in the rapidly developing areas of Siberia are still the tradi-
tior.al ones to which, however, the specific nature of a region adds im-
porta.nt correctives.
Sociological sur~eys have shown that in the territorial trusts of the
branch which are located in the petroleum and gas areas of Western Siberia
more than one-third of the workers who are signed up for the period of
. the labor contract do not have the possibility of visiting their families
; which live near the place of their new work. It is very difficult for
these categories of workers to enter the established nucleus of the collec-
! tive. Labor turnover in such organizations reaches 60 to 80 percent.
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The specific nature of construction work in the north malces it necessary
to attract s~asonal and temporary workers during periods with favorable
weather conditi~ns. As a rule, they perform seven to eight percent of the -
annual construction program during the summer season. The construction -
, of the linear part of the pipelines, on the contrary, is performed during
the winter when the swamps freeze. Frequently unskilled workers who re-
- sign after the winter construction season move as team members to more
southerly ob~ects only to retuxn to the north at the beginning of the
_ new season.
The tasks of the development of new territories demand an improvement of
the organizational forms of attracting labor resources. Sociological
surveys of the branch's construction organizations in Western Siberia, ,
Central Asia, the Povolzh�ye, and other areas of the country which were
performed by the Institute of Economics of the Ministry of Construction ;
for the Petroleu~ and Gas Industry in 1975-197~ have shown that most of
the line workers regard the special duty expedition method as useful. ~
s
At the same time, in tract construction the conditions which are necessary
for the effective use of this method are far from fully ensured. The re-
placement of collectives is carried out irregularly and frequently workers
- are employed at a facility until the completion of construction and rest �
only episodically at their permanent residences, and trips for rest occu-
py a large amount of time and are connected with serious organizational
difficulties. The social and every day conditions at the tract and, first
_ of all, the quality of mobile housing and domestic services in field
- towns and special duty settlements give rise to criticisms.
The wages ~f workers who are employed in pipeline and surface construction
in the northern areas are quite high, however, a number of the privileges
and pay additions for expedition workers depend upon the place of the ~
official location of the management ~,pparatus, and not upon the ~lace of ;
work. For this reason, in areas where pay additions have not been esta-
- blished or are relatively low and where insufficient account is taken of
the specific nature of tract work, of the conditions of living in special ~
duty settlements, and of the long trips in special duty motor vehicle i
transport along tract roads difficulties arise with attracting qualified
i
cadres. '
A hindrance to the wide introduction of the special duty expedition method '
_ is the lack of well-built housing at places of permanent residence as a
result of which the families of workers are sometimes put up in field i
towns. The inter-regional use of labor resources mitigates this contra- -
diction to a certain extent on the basis of the use of the developed ~
social infrastructure of inhabited areas, but it does not eliminate it '
- completely. ~
The discrepancy between the social needs and the working and living eondi- ~
tions of the expeditionary workers employed ~t the sites of the petroleum -
- t
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and gas complex leads to a relatively large labor turnover, especial]y
a.mong young workers. At the same time, the occupational ~restige of a
- participant in the development of the petroleum and gas in other areas -
of Siberia is quite high and it is only necessary to reinforce it with ~
economic and socisl advantages. -
An improvement of the system of wages for expedition workers requires the
" application to them d~aring the period of their actual work in a rEmote
area of a11 of the regional pay additions, belt coefficients, and privi- _
leges which are designed for persons who permanently live in this area
and are employed in the same work with regard to the character of the -
- work which is connected with a long separation from fa.milies. Rest
between expeditions or employment in an expedition in average belt areas
_ should not interrupt privileged seniority. It is also important to sti-
mulate workers who provide the conditions for viability in an expedition,
_ engineering preparations and transportation. Today these services are
considered auxiliary. The regular mass movement of workers over large
distances requires an increase in the reliability of communications =
and in their capacity and the optimization of the methods of managing
transportation flows.
The special duty expedition method meets the needs of workers only in the .
event that the possibility of regularly returning from the developing areas
- to their places of permanent residence is ensured. The existing labor
_ legislation permits the totalling up of work time; for this reason a -
lengthened work day and work week are established on the expedition .
(on special duty) within physiologically valid limits and with regard
_ to the specific nature of the work performed so that the total work time
during the accounting period (length of the expedition plus rest at
places of permanent residence) corresponds to the approved norms.
A special duty regimen has been adopted in drilling in the petroleum
industry which is reminiscent of the one established in the Navy; that
is, three-shift continuous work with an eight-hour work day (according
to the data of inedical reseaxch, this regimen requires a relatively
frequent replacement of personnel). In construction a six-day fifty-nine_
hour week and ten-hour work day is regarded as advisable. In this case
for euery two weeks of work in an exhibition a worker is given a week
of rest. Other regimens within the framework of the limits established
by law are also permitted.
_ The duration of an ~xpedition, that is, the full number of days at a
work site, including time en route, depends upon the specific nature of
the production, the natural a.nd climatic conditions, the length of the
distance from a place of permanent residence, and the reliability of co~
munications. With partial acclimatization the duration of an expedition
has to be the longer, the greater the contrast between the natural and
climatic conditions of the places of residence and of work. The following
- work and rest cycles were recommended for workers employed in the
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construction of main pipelines in the north: ten weeks of an expedition -
(October-December), three weeks of rest, then ten weeks of an expedition
(January-March), and 1.5 ~onths of rest; in less severe areas--nine weeks
of an expedition and 1.5 months of rest regardless of the season. With
work by the special duty method near places of permanent residence (for
example, the construction of fields at the petroleum deposits of the
Middle Priob'ye) a ten-day duty is possible.
- The optimal re~imens of the prolonged work day and work week and of the
length of an expedition still have to be made more precise for the various
types of jobs, natural conditions, and adaptation processes by means of
systematic economic and medical studies. Although they axe connected with
a certain iiaprov~ement of existing practices, the payment and privileges
methods being proposed do not go beyond the payment systems which have
been established for various branches an3 regions. The largest changes
have to be ma,de in the organizational forms of the pioneer work to deve-
- lop remote areas.
The forced development of -~he petroleum and gas areas of Western ~~iberia
requires the creation and organizational design of a territoriel petroleum
and gas complex, The rea.lization of a single technica.l policy for the
branches which are members of tInis complex makes necessary interdepartmental
cooperation in the production base, warehouse work, transportation, and
so forth due to the fact that the development of the production and sociel ;
infrastructure in the northern areas of Tyumenskaya Oblast is the common ~
task of all of the branches o~' the petroleum and gas complex.
At the same time, the otvera.ll development of a region does not negate the
branch charac~er of management since enterprises preserve their operational -
independence and the vertical structure of their hserarchical subordination.
It is only possible to rapidly concentrate skilled labor resources and _
specialized production capacities in an area whi:ch is being developed on ,
the basis of the branch management principle. The special duty expedition ~
system, in our opinion, makes it possible to realize the advantages of
branch management in the specific conditions of territories under develop-
ment. The production aspects of this method are connected with transfer- ,
ing labor consuming processes (preparation, batchings, assembly, and
others) to inhabited areas and with us~:ng the production base of branches i
regardless of their location.
The territorial division of areas of labor activity and of the social
- infrastructure of places of permanent residence creates the greatest dif- ~
ficulties in the process of management. To a certain extent difficulties , i_
are created in the interaction between a branch (enterprises, organizations) j
and the territorial agencies of state administration which bear respon- '
' sibility for the overall nature of socio-economic development. We are ~
= speaking about the contradiction between the needs of a territory being ~
developed for permanent cadres and the necessity of using the labor of
te~porary workers. Practice has shown that when work is conducted in
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areas with extreme natural and climatic conditions it is necessary to
have special skills in operating machinery a.nd mechanisms and in the -
technolo~,}r of work which are acquired during a long process of adaptation
to rin.turr~l. and climat;i.c and social and everyd~y conditions. Reverc~e
migration is highest during the first hal~-year to year after arrival
in a new area. Z'his contradiction is eliminated by the specialization of
expedition organizations. Although he lives in the developed areas of _
the country, ~~worker who works regularly over a period of aiany years in
the northern areas of Siberia may be regarded as a specialist who knows
local conditions. At the same time, regarciless of its production structure,
in providing the conditions for the functioning of an expedition the ex-
= pedition organization has to participate in the development of the socia.l -
infrastructure of the area being developed. In particular, the creation
and operation of special duty settlements has to be included in its pro-
duction work.
The contradictions in a basing region are a result of the fact that the
agencies of state power, regardless of their branch subordination, control
the production results of the enterprises located on their territory.
At the same time, while these agencies axe not directly respor.sible for
~he accomplishment of the production tasks which are set for an expedition
= organization, they are obliged to manage its social and economic develop-
- ment (providing the families of the expedition personnel with housing,
- social and everyday services, and so forth). For this reason, there has
to oe a clear legal definition of the special duty expedition system which -
is based on the use of the advantages of branch and territorial management -
and which ensures their interaction. The dimensions of the use of the
- special duty expedition method at the present time and for the future pe-
riod are such that they make it possible to raise the question of impro- _
ving the forms of management and of economic and socir~-economic decisions.
The basic t asks of managing the construction of petroleum and gas faci-
lities in Western Siberia and in the other areas of the country with dif-
ficult weather and climatic conditions ar~:
--in economic management--the creation of a system of norms for price
setting which reflects the special characteristics of the formation of -
expenditures for construction in th~ axeas of' the north with a high mobi-
~ lity of production and service sub divisions and a poorly developed produc-
tion and social infrastructure. In our opinion, the estimated norms for -
overhead expenditures must also include direct experiditures to provide
for the life and work of workers, for the relocation of equipment, the _
' construction of temporary roads, an d so forth; _
--in the management of the processes of social development--the recruitment
and training of cadres in developed areas for work in expeditions, and
the development of the social infrastructure in the expe~ition (mobile
housing, medical, social, and cultural services, providing for food,
~ -
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and others) ar~d in places of local residence; -
--in the management of construction--a rise in the level of engineering
- preparations, providing for the life and work of workers on an expedi- ~
tion, and the o.rganization of transportation. _
An analysis of these tasks testifies to the necessity for developing a
number of existing organizations which are engaged in pioneer work into _
expedition trusts--enterprises for mobile construction in remote areas.
The expedition trust will operate like a contracting organization and,
regardless of its place of location, it will be advisable to plan p'rima-
rily the fulfillment of work at construction sites in remote areas for
it. The structure of such a trust, the disposition of its cadres, and
the content of the ~obs in it will take account of work in remote areas
- in accordance with the special duty expedition method. The trust will
replenish and train its cadres in the country's developed areas. The basic
idea of the expedition trust which makes it aifferent from the existir_g
forms of construction enterprises consists in the fact that it is desi.gned ;
_ for con~tinuous pioneer work. ~
It is of fundamental importance to decide the question of the place of
expedition organizations in the structure of branch management which is .
basically based on territorial and functional principles. In particular,
in the co~struction of petroleum and gas industry facilities there is ;
an interaction between territorial production main administrations whose
trusts perform work in regions which are specific for them and specialized ;
main administrations which perform such contracting operations as welding
and installation or underwater work in many areas of the country. Special ~
duty expedition mobile construction does not fit into this scheme. On ;
- the one hand, expedition trusts are located outside of the region of their '
work and can change it without moving their bases in a developed area and,
i~
on the other, the special duty expedition method does not require func-
- tional specislization. On the contrary, the tasks of pioneer development
- lead to the overall coverage of work at an ob~ect.
The expedition trusts can probably be included within the territoriel
specialized main administrations. The operational leadership of such ~
trusts, regardless of the axea where they are br~sed, can be made the
responsibility of a territorial executor production administration or j~~
of another agency of a ministry in the area being developed which decides
upon the ob~ects to be built by bhe special duty expedition method, es- ;
t ablishes the s:~hedules for the co~nissioning of start-up complexes,
~
- and coordinates the work of expedition and territorial organizations, j
including engineering and social and everyday support for the construction,
the regular transportation o~' labor collectives, and the relocation of ~
equipment . ~ ~
t
i
- The use of the specia? dutv expedition method is a result not only of _
the lagging of the social infrastructure. A number of territories which (
- I-
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are rich in natural resources (the northern areas of Tyumenskaya Oblast,
the north of Eastern Siberia, C`hukotka, and so forth) are a.Lnong the
areas which are unfavorable for permanent residents. The creation there
of permanent settlements is inexpedient. Secondly, in many cases the
ch~.r�acter of the clistribution of natural resources does not permit the
r~t.ic~nnl ^it.in~* oi' ~o~ul~.tc~c3 ~oints in n~;iven nrc~n on the tradition~.l
- 1~~~;;i:., ll, i:, hn.rcily nc~ees:~r3.r,y t,o develop thc pr-_l..rolrum r~nd g~.e3 r~rer~:; of' ~
- Tyumenskaya Oblast in the way that tY~e old petroleum areas of Tataxiya,
- Bashkiriya, and so forth were developed--by means of the construction of
settlements at all of the fields. In Western Siberia the deposits are
- distributed over a vast swampy territory and the center of gravity of
the mining is shifting to the north, to a zone which is unfavorable for
permanent residence; the effective operational period of the field is
limited to 10 to 15 years, wit?~ the result that the prospects for the
use of the labor resources and the housing fund which is constructed with
- enormous difficulty are indefinite. Experts from the State Committee for
Civil Construction have calculated that with the traditional scheme of
developing petroleum and gas areas in Western Siberia the investments
for the construction of small settlements at fields would come to 5 to
6 billion rubles. The inter-regional use of the social infrastructure
makes it possible to limit the construction of permanent settlements in
the northern areas. At the same time, it becomes possible to shorten the
- "peak" period of development: there is a decrease in the size of popula-
tion (since the family members o~ the expedition workers live outside of
the region) and in the number of people employed in civil housing construc-
tion. In order to satisf~r the need for the housing ftiind through the tra-
ditional methods in the petroleum and gas areas of Weste.rn Siberia there -
would have to be, according to minim>>m estimates, 80,000 workers in civil-
ian housing construction. It would be necess~,ry to provide these workers
and their families with housing.
In addition to an overall decrease in the number of workers, the special
~ duty expedition method makes it possible to enlarge populated points and
~ to achieve a concentration of construction in a few large cities which are
_ located in zones that are relatively fauorab le for permanent residents.
The institutes of the State Committee for Civil Construction are now _
correcting the area layout plans and the general plans for c~+_.ies in the
~ northern zone of Tyumenskaya Oblast with a view toward the speci~;l duty
~ expedition scheme. The aggregate of cities and settlements in a region
is being looked upon as comprising a single settlement system "city~-special
duty settlements" which are united by transportation co~nunications and
which have a common production base. The following settlement types are
b eing distinguished:
--the support city which serves as a base for the expedition method and
is located in a zone favorable for residents (including the city structure
outside of the limits of the region). The fami.lies of workers, including
i the families of construction workers and workers in Qther branches who are
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' employed in the inter-regional use of labor resources live in the support -
~ cities;
--i,t~e bn ,e cit,y--the r.enter of the special duty settlements and the
~r;ul;;par'La.~.10I1 F>oirit f'or th~~ expeditions . It is lived in by the families
of the special duty workers who are employed in the intra-regional use
of labor resources;
--special duty settlements of the stationary type near fields and in com- _
- munication centers--roads and the routes of main pipelines,--and also
field towns for construction worke~s and geologists at oil and gas fields
and near other facilities during the period they are being developed. Only
those people employed in production live in these settlements which are
made up of mobile homes and pre-assembled and temporary buildings. This
kind of scheme is economically efficient and ensures the flexible develop- i,
ment of the system of settlements.
It should be noted that additional architectural-layout and socio-economic
studies are necessary in order to increase the comfort of the special duty j
settlements an d organize a rational system of settlement in the areas of
the north which are being developed. First of all, it is necessary to work ,
- out architectural-layout norms for the special duty settlements. The norms
also do not take account of changes in the funetions of the base city when ,
the expedition method ~G introduced: these norms become much more compli-
- cated and include services for the special duty settlement and the develop-
ment of transportation facilities in order to provide for the replacement _
of expeditions and special duty detachments. The soci:~l aspects of the ,
special duty method provide ior satisf~ing the cultural and social and _
- everyday needs of the special duty workers and their families. Yet, the
possibilities of expedition organizations regarding civil housing construc- f
tion at places of permanent residence are limited beforehand because the ;
- basic construction work is performed fax away from inhabited territories. ~
I-
In particular, the construction trusts have the right to distribut~e up to ~
10 percent of the housing space which has been co~nissiened for client, ;
thereby receiving an additional source for supplying their workers with ;
~
comfortable apartments. Under these conditions certain difficulties arise
in attracting qualified cadres into expeditions. It would be logical
to carry out housing construction in the middXe zone in accordance with _
the title lists for Siberia and other northern areas in which expedition
organizations are employed and to include the appropriate structures i
(microrayons, settlements) in the general plans of cities. This kind of
construction may be regarded as a new form of attracting the country's
productive forces into the development of the key economic ~reas of the _i
north.
The economic efficiency of the special duty expedition method is high and
_ is determined above a11 by a shortening of the time involved in construc-
tion and development: in the petroleum and gas complex a shortening of
construction time for the Western Siberia-center main pipeline by a half
= year yi:elds an econov~y of more than .5 billion rubles.
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E1n enorrnous econo~}r in developing a region is achieved by decreasing the
cost of. expensive construction in the north throu~;h the attraction of labor
~ resources on an inter-regional basis (providin~ living arrangements for
a single person in the northern areas costs 21,000 rubles in capital in-
vestments, that is, 4 to 6 times more than in the central zone of Russia).
A broad.and timely use of the special duty expedition method will make
it possible in the future to decrease costs for the development of the
petroleum and gas complex of Western Siberia by 2.5-3 billion rubles. _
The ~.nnual econoir~y per 1,000 people employed in basic production will
- be: for capital investments--15 to 17 million rubles, and for opere.tin~;
ex~endi.tures--.8 million rubles (account is taken of the increased expen-
ditures of construction organizations for transportation, increased wages,
and the maintenance of field towns).
Calculations show that for pipeline construction organizations in
Tyumenskaya Oblast there may be an increase in expenditures of approxi-
mately 800 rubles per year per person and that the wage fund will in- _
crease by five to six percent. -
The use of the special duty expedition method requires a rise in the level -
of the organization of production: today und~r field conditions, chiefly
due to the unrythmical nature of material supplies and a lack of coordina-
tion in the construction process, there are concealed stoppages whi~ch ~
(with the agreement of collectives) are compensated for by overtime work
~.nd are finequently not recorded. The introduction of a summary account
of' working time excludes the possibility of such a"maneuver." The in-
troduction of the special duty expedition method without its support by
the corresponding organizational measures woul~. require an increase of
- 15 to 20 percent in the number of people employed in line construc~ion,
drilling, the organization of fields, an d so forth. Given the overall _
shortage of labor resources it is impossible to overestimate the impor-
tance of raising the organizational level of work performance in pioneer
- constructi.on .
The rapid development of the key economic areas of Siberia and the Far
East practically excludes any alternativ~ to the special duty expedition
method. If, for example, the northern area of Tyumenskaya Oblast wnere the
basic petroleum and ~as resources of the country are concentrated were to
be developed by the traditional method, it would be necessary to settle
3 million people there and to build more than 40 million square meters of
housing. This is hardly possible or expedient within the time which has -
_ been assigned for the development o~' the social infrastructure. For this
reason, the social effectiveness of the special d.uty expedition method
results precisely from the fact that its use makes it possible to create
the necessary social and everyday conditions for the workers employed in
pioneer work in the areas of Siberia and the Far East being developed and
also for their families.
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`Ptie inter-re~ional use of labor resources in the development of the most
r~a.ridly developin~; region of Siberia--the petroleum and ~as areas of -
'P,yumenskaya Oblast--can now be regarded as a.n ob,jective reality. The
crer~.tion of the ~l.annin~;, or~anizational, and le~al preconditions for
- incre~.sin~ t,he efficiency of this method is now of topical importance.
In this r.onnection, it would be ~.dvisable in the national economic plan-
nin~* of the use of labor resources and in the composi~;ion of cadre b~.-
lances to take account of their inter-regional use in the new organiza-
tional forms and to allocate capital investments at outstripping rates
for the development of the social infrastructure in ~the inhabited axeas _
where exped.ition organizations are based.
It is essential to irnprove the economic, organizational, and legal forms
of enlisting labor resources for the development of the country's key
economic areas. The basis here is ~overnment decisions on the creation -
of construction associations for mobile construction and the corresponding
privileges for the workers of these associations, and also on privileges
for the workers of the petroleum industry who are employed according to
the expedition method in the areas of the far north. It is desirable to ~
reflect in comparable legal documents the specific nature of the work of
the mobile enterprises ~f other branches in areas which are being developed,
including organizational forms, payment, the management of the processes
of the social development of collectives, and also the economic mechanism
of the sPecial duty expedition method. -
In working out the schemes of area layout and of the development of the -
productive forces of remote territories with severe natural and climatic
conditions account should be taken of the wide scope of the inter-regional
use of labor resources. 'I`his requires that work be begun on developing
- normative documents on layout and town-building solutions in base cities
and mobile settlements and, above a11, on the composition:~! of such docu- -
ments for the socio-economic substantiation of general. plans for new ci- _
ties in the petroleum and gas areas of._t~1eG,tern Siberia.
- Finally, the scope of the inter-regional use of resources ir. the develop- 'I
ment of Siberia is such that it is probably necessary to unite the scien-
tific collectivc~ which are working on this problem. It would be advisable
to place undex the leadership of the USSR Academy of Sciences (with the
participation of the Academy of Medical Sciences, the Institutes of _
Gospla.n~~ USSR and Gostroy USSR;and of interested branches) overall scien-
- tific-experimental studies of the social, economic, organizational, pro- _
duction, transportation, and medical and biological aspects of the use of
the special duty expedition method in developing Siberia and the Far East. i
'
COPYRIGHT: Izdatel'stvo Pravda, Voprosy Ekonomiki, 1q79 i
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2959
Cso : 1823 ~
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MANPOWER: LABOR, IDUCATION, DEMOGRAPHY -
WAYS TO INNiPROVE F~'FICIENCY OF LABOR DISCUSSID
Moscow VOPROSY EKONOMIKI in Russian No 8, Aug 79 pp 39-46
LArticle ~ A. Dadashev: "Economic Mechanism of Increase in the Efficiency
~ of Labor'J
~ LTex~ The accountability report of the CPSU Central Co~ittee to the 25th
~ party congress stressed that, in connection with the aggravation of the prob-
lem of labor resources, the solution of the overall problem of increase in
the efficiency of utilization of manpower and a rapid growth of labor pro-
I ductivity will become especially urgent in the f~tnre. Insufficient rates _
of labor productivity growth can lead to the need to involve comparatively ,
laxge contingents of labor resources in material production sectors, thereby -
! hampering the expansion of the nonproductive sphere. TherePore, under pres-
- ent conditions and over a long-term period labor productivity growth and in-
crease in the efficiency of utilization of manpower in material production
~ sectors acquire paxamount importance and appeer as an indispensable condi- -
tion for the economic development of the USSR. �
The mobilization of intraproduction manpower reserves in the part not re-
quiring capital inveatments is connected with an improvement in the organi- ,
zation of labor and the system of its stimulation and depends on the degree -
of ad~ustment of the economic mechanism in the e,rea of utilization of labor
resources. This mech~nism on a wide plane represents the effect the to-
tality of factors of an economic planning, social, legal and organizational -
.nature forming in interconnectian a single whole and encompasaing a11 the
stages of reprodaction of labor resources--gersonnel training, distribution
' and redistribution (retraining) of manpower throughout the spheres and sec-
tors of the na'tional econo~qy a.nd an indirect utilization of labor resources.
The planning indicators and standards approvsd in a directive manaer and the
~ economic levers (incentives, sanctions and conditiona) that are to ensure '
; the maximum possible increase in the efficiency of labor at the present lev-
' el o~' development of productive forces represent the economic planning as-.
~ pect of t~e economic Lkhozyaystvennyy,~ mechaniam.l
~
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In our opinion, the following should be included among the most important
elements of the economic mechanism: providing incentives to collectives
for fulfilling production assignments without increasing the size of per-
sonnel (Shchekino method and its modifications);2 planning the indicator of
labor productivity and providing incentives to collectives for fulfilling
stepped-up labor plans (dependence of incentive funda on the level of ful-
fillment of approved plans and counterplans for labor productivity growth); -
existing standards of recalculation oP the wage fund as the production as-
signment is fulfilled.
During the first years of implementation of the economic reform, of the
four labor indicators (wage fund, labor productivity, size of personnel and
average wages), only the wage fund was rianned ~or enterprises in a direc-
tive manner. Having granted enterpr,ses the right to independently plan the
size of personnel, the reform directed them toward the disengagement of sur-
plus manpower under the conditions of fulfillment of the most important di-
rective indice.tors. Enterprises, having gained ~.ndependence in this me,tter,
_ began to increase the number of workers, at the same time, overstating the
need for personnel. -
- Work experience has shown that it is necessary to refine the individual ele-
ments of its mechanism and to increase the interest of enterprises in raising -
- production and labor productivity with a simultaneous reduction in the size
of personnel. An experiment began at the Shchekino Chemical Combine (now the
Azot Association) in ~967, which then spread to a number of enterprises of
- other sectors of industry and the national economy. The long-term practice
= of managing enterprises according to the Shchekino msthod confirmed the ef-
- ficiency of the improved incentive system directed towaxd a better utiliza-
tion of available manpower and disengagement of its surplus. -
However, despite the obvious advantsges of the Shchekino method ensuring a ~
combination of personal, collective and social interests, the scale of its !
dissemination is obviously insufficient. The introduction of advanced ex- ~
- perience proceeded satisfactorily only in the ministries of chemical indus- j
try and of petroleum refining and petrochemical industry, in the system of
which "Shchekino commissions" were established especially. A total of 150 ~
enterprises turning out about 70 percent os' LAe volume of sold output oper-
ated according to the Shchekino method in the USSR Ministry of Chemical In- ~
- dustry at the end of 1975� At these enterprises the rates of labor produc- '
tivity growth exceeded the average sectorial level by 15 to 20 percent and
wages were 10 to 12 percent higher. More than 350 ne~; shops and production �
facilities put into operation in 197~+-1975 were fitted out ahead of schedule i
by means of collectives using the Shchekino method.
Enterprises employing more than two-thirds of the industrial and production
personnel and turning out 78.1 percent of the volume of output operated ac- ~
cording to the Shchekino method in the USSR Ministry oP Petrochemical Indus-
_ try as of 1 Js~nuary 1978. A total of 37,100 people were disengaged at these ~
enterprises in 1969-1977, as a result of which the savings of the wage fund ;
totaled 91.2 million rubles, oP which 38.4 million rubles were apent on ad- j-
ditional payments and bonuses. i
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A wide dissemination of the experience of Shchekino workers was hampered by
the rather passive attitude of many ministries toward this valuable under-
taking, lack of solution of individual methodologicel problems and cumber-
someness and lack of clarity of some points of the repeatedly refined con-
- ditions for the transfer of enterprises to operation after the example of the
Shchekino Chemical Combine. The new "Procedure for the Application of the
Shc~iekino Method of Improving the Organization of Labor, Material Incentives
and Planning~'3 (instruction) was approved in April 1978. It simplified the
transfer of collectives of enterprises to work according to this method,
greatly expanded their rights in the utilization of the savinge of the wage
fund and raised the role and responsibility of ministries in the diasemina-
tion of the Shchekino experiment. The ministry must establish stable stand-
_ ards of wage expenditure per ruble of output or stable wage funds with a
breakdown throughout the years of the five-year plan for the enterprises -
that began operating according to the Shchekino method.
The characteristic of the new instruction also lies in the fact that enter-
1 prises are granted the right to transfer all the unutilized savings of the -
= wage fund obtained as a result of the disengagement of workers (provided the
annual plans for the volume of production, labor productivity and prof'it are
fulfilled) to the material incentive fund at the end of the year. The amount
of additional payments was increased (up to 50 percent instead of the maximum
level of 30 percent) for cert~,in categories of production personnel, the com-
position of workers to whom additional payments were established (repair and
piece-rate workers) was expanded and so forth. Additional payr~ents are also
- paid (within 70 percent of the savings of the wage fund as a result of the
cut in personnel) if the number of workers is lowered as compared with the
labor standards in effect at enterprises, standards whose intensity is lower
than that of intersectorial or sectorial standards. For newly commissioned
i enterprises, shops and facilities all the savings obtained as a reault of the
fulfillment of planned assignments with a smaller size of personnel as com-
pared with the planned one (with due regaxd for the standard periods of mas- _
- tering) can be assigned for additional payments.
Thus, it ce,n be considered that with the introduction of the new instruction
the "economic" barriers standing on the path pf a wide dissemination of the
Shchekino method have been basically removed.4 This makes it possible to
~ count on an increase in the efficiency of utilization of manpower under the
conditions of a mass introduction of the experience of Shchekino workers with-
i in a certain sector, that is, along the "vertical line." Now there is the
task of transferring enterprises in the sphere of material production to the
Shchekino method along the "horizontal line," that is, within a city or ob-
' last (kray). Specific experience was accumulated in Shchekinskiy Rayon,
Tul'skaya Oblast, where 20 enterprises turning out more than 80 percent of -
the total volume of industrial output operate according to this method.
About 700 workers were disengaged there during the first half-year of 1978
alone. Preparatory work on the transfer of the remaining eight eaterprises
in the rayon is be3ng carried out. More than 100 production collectives
; turning out more than 60 percent of the total volume of output worked accord- -
! ing to the Shchekino method in Tul'skaya Oblast at the end of last year.
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It seems that a systematic organization of work on the introduction of the
Shchekino method requires a single coordinating center. In our opinion, S.
- Shkurko, who proposed that these f~znctions be entrusted to the Interdepart-
mental Commission under the USSR State Planning Couimittee, is right.5
Beginning in 1972 the indicator of labor productivity in annual plans (and
as of 1975 in quarterly plans as well) again became directive. Thereby,
the USSR State Planning Committee, when assigning labor productivity plans
to ministries, indirectly "exrives" at the estima,ted number of workers and
~ employees with due regard for the expected increase in labor resources.
= Practice showed that, despite the indirect regulation of the number of wor-
kers, the shortage of manpower did not decrease, but, conversely, increased.
Whereas in 1971 the combined number of workers and employees in the total
- plans approved by enterprises, organizations and institutions exceeded the
estimated level determined by the USSR State Planning Committee by 1.4 mil- ~
~ lion people, in 1975, by 2.5 million people. The number of workers and em-
ployees in the total plans of enterprises exceeded the actual number by 1.3 '
million people in 1971, by 1.9 million in 1975 and by more than 2 million
in 1977. -
The increase in the gap is the direct result of establishment of understated ;
plans for labor productivity growth for subordinate enterprises by many m3n-
- istries as compaxed with the approved assignment$. For exemple, according
- to the data of the USSR State Planning Co~nittee, in the total plans of en-
' terprises of industrial ministries for 1978 the increase in labor productiv-
ity comprised 2.5 percent, whereas in the state plan the increase taken into -
account by the USSR State Planning Co~ittee during determination of the es-
timated number of workers and employees was approved at the rate of 3.8 per- ~
cent. Ultimately, such "scissors" lead to an overstatement by enterprises
of the planned need for manpower and to an artificial increase in the short- ~
age of personnel. (Incidentally, we would like to note that, according to
the data of the USSR Central Statistical Administration, the increase in
labor productivity in industry in 1978 comprised 3.6 percent).
Simultaneously with the planning of labor productivity the mechenism of for- ~
mation of incentive funds for the stimulation of qualitative indicators of
the economic activity of enterprises and industrial associations was also im- ~
proved. Ministries and industriel associations were granted the~ right to ;
select three (in individual sectors four) fund forming indicators for prac- ~
tical utilization. At the same time, they should include, as a rule, indi- ,
cators of labor productivity growth and improvement in the quelity of out- f
put. The amounts of incentive funds axe now made dependent not oril.y on the
level of labor productivity growth as compared with the previous year, but ~
also on the indicators oP fulPillment of the ass gnments of the Pive-year ,
plan envisaged for the appropriate yeax. In pa icular, a special standard ~
was established. According to this standard, th material incentive f'und in-
creases (or decreases) ppr point of increase (or decrease) of the rates of ;
labor productivity growth in annual plans as c axed with the assignments
of the Pive-yeax plan for the corresponding year~. This atandard is equel to j
~ ~
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2 percent of the amount of the planned material incentive fund of an enter-
prise for 1975 (in light, food,meat-dairy and fish industry, 1 percent).
At the same time, additional deductions are made from the profit per per-
cent of overfulfillment of the assignment according to the standard increased ~
� by no less than 30 percent if only labor productivity growth is taken into
account in the counterplan adopted by an enterprise and, conversely, are low-
- ered by 30 percent fP the indicator is not included in it, or if the counter-
plan is not adopted at a11.
However, as an analysis shows, the indicator of labor productivity growth
plays a negligible role in the system of x'und forming indicators, because
= the material incentive fund appears rot as a tool of economically account-
able stimulation of the ~obilization of intraproduction manpower reserves,
but rather as a guaranteed addition to wages for the fulfillment (and even
- underfulfillment--in this case its amount will be lowered slightly--) of
planned assignments for fund forming indicator~. One would think that the
stimulating role of the indicator of labor productivity in the formation of -
the material incentive fund should be increased.
In 1.975 a total of 17,000 enterprises, or one out of three production collec-
tives in industry, operated according to counterplans. Labor productivity
at these enterprises rose by 8.6 percent (which is 2 points higher than the
state assignment), owing to which 85 percent of the increase in industrial
production was obtained. It should be noted, however, that in 1975 only one- _
third of the counterplans envisaged an increase (as compared with the as-
- signment) in labor productivity. In 1978, on the whole, the collectives of
- 7,400 enterprises worked according to counterplans.
- Two factors hampered the mass introduction of the indicator of labor produc-
= tivity growth into the practice of counterplanning. First, in accordance
with the established procedure of stimulation, the enterprises that adopted
stepped-up plans for labor productivity growth did not have advantagea in
the formation of material incentive funds. Therefore, the bulk of the enter- _
prises were not sufficiently interested in the adoption of high obligations
for this indicator and its inclusion in counterple~ns.
Second, the management of the enterprise that adopted a counterplan is not
insured against numerous changes in its indicators oFten made by a superior
organization. Often such changes in initially approved planned indicators
I f~r volume (sules and gross output) and labor (wage fund and labor productiv-
' ity) are made without taking into account the capabilities of an enterprise.
j The planned assigriments for the volume of production and labor productivity
i were corrected more than once even for the Shchekino Azot Association oper-
j ating under the condi~ions of realization of the second stage of the exper-
I iment as of 1971.
Simile,r practice lowers the responsibility of enterprises for the fuifill- ~
ment of the initially established plan and creates conditions under which,
instead of org$nizing work on uncovering intraeconomic reserves and drawing
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~ V~? ? ~.~u, V~IV Vl\L.~1
them into ~roduction, some managers strive for a reduction in planned as-
signments.b "As a result, the plan loses its mobilizing force and is tre.ns-
formed into a screen covering shortcomings in work," L. I. Brezhnev noted
in his speech at the festive meeting in Minsk (June 1978).
The fulfillment and overfulfillment of initially established plans corrected
toward reduction without an appropriate reduction in the size of the wage
~ fund enable enterprises not only to cover the overexpenditure of this f~nd -
arising in connection with the nonPulfillment of the initial assignment, but
even to have relative sacings. This enables enterprises to maintain a size
of personnel exceeding the planned need. However, as practice showed, per-
mission to cover the overexpenditure of the wage fund connected with the
maintenance of an above-plan number of workers is often given enterprises '
freely. To eliminate such practice, in October 1976 the USSR Ste,te Planning '
Co~ittee, the USSR State Co~ittee for Ma.teriel and Technical Supply and '
the USSR Central Statistical Administration gave an instruction not to take
into account an untimely correction of plans. ~
However, this ~oint instruction not reinForced by real sanetions for a vio-
lation of the stability of planned assignments is fulfilled inePficiently. ~
According to the data of the Armenisn SSR Central Statistical Administra- ~
tion, the 1977 plan was lowered Por 168 industrial associations and enter- ;
prises in the republic. During the first halP of 1978 the ple.nned asaignment ~
of the enterprises of Union ministries was corrected toward reduction by 13 ~
million rubles. Often such corrections are ad~usted to the actuelly attained I
volumes of production for the purpose of creating a semblance of operstion of
subordinate enterprises "without lagging ones." For example, the Ministry of
_ Machine Tool Building and Tool Industry reduced the sales volume by 130,000 i
- rubles for two Yerevan enterprises--the artificial diamond.and diamond tool ,
plant and the experimental equipment accessories plant--where the ftiilfill-
ment of the planned assignment was threatened. At the seme time, the plan
for the Leninakan Grinder Plant we,s increased by the same amount. In the I
- same way 9 out oY the 17 enterprises oP the All-Union Soyuzekskavator Pro- i
duction Association, which were lagging, turned out to be among those that '
fulfilled the planned aesigr~ment Por 1977. ;
~
Nor did the standards of distribution of wage fund~ per percent of overf~].-
fillment of the assigr~ment for gross outpu-~ (or sales voltmme) approved in
1959 and used up tc the fourth quaxter oP 1976 interest enterprises in un-
covering and utilizing intraproduction potentials for saving labor. The ays- ~
tem in effect during that period did not reflect the true need for an addi-
tional wage fund and, as a rule, led to the formation of superfluous Punds
at enterprises, f~nds which, in practice, were used mainly for vaxious eddi-
tional payments connected with shortca~iugs in labor organization and with '
the maintenance of an above-plan,size of persannel. '
i
The somewhat lowered sectorial standaxds of correction of the wage fund of
_ industrial and production personnel, when production (sales) plans are over- ;
f~zlfilled (underfulfilled), introduced as of 1 October 1976 are also used as ~
- an economic sanetion. For the enterprises ensuring above-plen output as a
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result of labor productivity growth the standards remain in force and, con-
versely, are,lowered to 5~ percent if the above-plan increase in production -
is ensured as a result of an additional (above-plan) number of workers, when ~
the assignment for labor productivity growth is not flilfilled.
Overfulfilling planned assignmente for the volume af production, enterprises
continue to maintain an above-plan size of industrial and production person-
nel. An analysis of tfle operation of 20 industriel enterprises and associa-
tions, which in the fourth quarter of 1976 had 5,334 workers in excess of
the plan, showed that at 12 of them this situation "was ~ustified" by the
overfulfillment of planned assignments for the vol~e oP production (there
were evzn savings of the wage fund--191,600 rubles) and at 8 enterprises
_ the production plan proved to be unfulfilled, in connection with which the _
overexpenditure totaled 131,600 rubles. Of the enterprises that did not ful-
fill the plan only at the Moscow Neftepribor Plant the overexpenditure was
caused by the use of a standaxd reduced in one-half. In the fourth quarter
of 1976 this enterprise ftiilfilled the assignments for the volume of production
by 100.2 percent and for labor productivity growth by ?9.4 percent and main-
' tained 33 workers (or 2.6 percent) in excess of the plaa. The additional
; amount of deductions into the wage fund due for the overflilfillment of the
~ volume indicator by 0.2 percent Qccording to the standerd established for the
sector (0.5 percent per percent) should have totaled 0,600 rubles. In con-
~ nection with the nonfulfillment of the plan for labor productivity growth this
standard was lowered in one-half and the enterprise was able to additionally
obtain only 0,30Q rubles. The amount of wages calculated in the fourth quar-
ter for industrial and produr.tion personnel totaled 530,500 rubles, which is
- 0,200 rubles more than the amount due the enterprise with consideration for
the overfulfillment of the plan for the volume of production and appl3cation
~ of a lowered standard to it. Thus, reduction in the standaxd does not atim-
ulate enterprises to disengage an above-plan number of w~orkers.
During the first half yeex oF 1977, according to the data of the RSFSR State
Bank, in the republic there were 2,099 induatrial enterprises and associa-
tions, which overfulfilled the assignments for the volume of production and
whose above-plan number of workers reached 4~,300. Measures of economiic eP-
fect (50 percent reduction in the standerd) were applied only to 193 enter-
prises, which had 9,300 people in excess of the plan and did not fulfill the
planned assignments for labor productivity growth. Econamiic sanetions were
not applied to the other enterprises that f~zlfilled the assignments for labor
~ productivity growth, but, at the same time, ma,intained an above-plan size of -
personnel (35,000 people).
No economic sanetions for the maintenaace of an above-plan size of industrial
and production personnel axe applied to enterprises and associations not ful-
filling the established assignments Por the volume of pi�o@uction. If it is
kept in mind that in the RSFSR industry in 1976 a total of 7 percent of the
enterprises did not flilfill the assigriments Por the sales volume and 16 per-
cent, for labor productivity growth (during the first half year of 1977, 8.6
i and 18 pe-rcent respectively), the need For introducing direct economic sanc-
tions with regard tn enterprises maintaining a superfluous number of workers
~
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rvw vrri~ttil~ u~~ U1VLY
as compaxed with the planned need becomes obvious. According to the data
oP the USSR Central Statistical Administration, the above-plan ntunber of
workers at the enterprises of 11 machine building ministries totaled 28,700
at the beginning of 1978.
Hence the need for improving economic eanctions against enterprises that
maintain an above-pla.n size of personnel, regardless of the degree of over-
- fulfillment of the asaignments for the volume of production (sales), is
obvious. In our opinion, the enterprises that have an above-plan size of
personnel and that overapend the wage fund should make up for this overex-
penditure, but not at the expense of the enterprises that attained savings.
If the overexpenditure is not covered by savings during the previous quar-
ter of the year under review, the amount of the plannPd wage fund for the
next quarter is lowered by the amount of overexpenditure (it is withdrawn
into the budget).
In our opinion, it is advisable to experi.mentally establish a system in ac-
- cordance with which the wage fund is not recalculated for the enterprises
that overfulfill the assignments for the volume of production (sales), but
maintain an above-plan size of personnel, in connection with the nonfulfill-
ment oP the assignment Por labor productivity growth. The standards reduced
by the local organs of the State Benk to 50 percent applied in these cases
should be used only with regard to enterprises having an above-plan size oP
personnel, even when the assignment Por labor productivity growth ie f~l- -
filled and overfulfilled (which is possible with an outstripping increase
- in the volumes of production as compared with an increase in labor produc-
ti.vity). -
In the economic literature an opinion is expressed about the need to intro-
duce a payment for labor resources. In our opinion, this measure will not
give the expected effect. First, according to the calculations for 260 in- '
dustrial enterprises made by the Scientific Research Institute of Labor (ac- '
cording to three variants of the standaxd of deductions from the disposable
balance of profit, that is, 25, 15 ~d 5 percent of the wage flind), most of '
them do not have financial opportunities to cover payments for labor re- +
sources. Second, the disposable balance of profit cannot serve as a source -
_ of payments, because it makes no difference to esi enterprise in what form ~
this balance is withdrawn into the budget. ~
i
Improvement in working conditions p18,ys an ever greater role in the struc- ;
ture of the economic mechanism of increase in the efficiency of utilization
of manpower. It is well known that the state spends large sums on these !
purposes, expecting a social and econ~?ic return--reduction in absenteeism ~
due to sickness and, as a result of this, an eppropriate increase in the an- ;
nuel work time available. Fractice shows that, where conetant atter~tion is ~
paid to the creation of safe working conditiona and reduction in the sick
rate and in~uries, che results have an immediate effect--whole-day work time I
losses due to tem~~~ary disability are reduced. However, purposeful work in ,
this direction is by no means caxried out at a11 industrial enterprisea. It
- I
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is necessar~~to develop an economic lever that would stimulate economic man-
agers to pay attention to the efficiency of utilization of the aunual~y grow-
� ing expenditures on improvement in working conditions and labor protection.
At the enterpriaes that increase work time losses as caaipared with the amount
calculated in the planned work time balance the wage fund should be reduced =
(with a transfer to the budget) by the amount of payments connected with tem-
porary disability for above-plan losses resulting from absenteeism due to
sickness. In such a case enterprises have lesser possibilities of maintain-
ing an above-plan number of workers. (However paradoxical this is fran eco- _
nomic standpoints, an increase in work time losses owing to absznteeism due
to sickness is the source oP savings of the wage fund that makes i~ possible -
to maintain a greater size of personnel within the seme fund). In our opin-
ion, the proposed measure will be the economic lever that will make managers
evaluate in a different way the purposefulness and efficiency of the funds
- annually allocated for improv~ent in working conditions and labor protection.
Acceleration of the rates of labor productivity growth on the basis of an in-
- crease in the efficiency of utilization,of manpower is extremely importa.nt
for the country's national econcaQy. The solution of this ma~or problem re-
quires from financial planning and econa~mic organs the implementation of fur-
ther measures for improving the economic mechanism in the area of labor and
creation of a single system of ineasures directed toward an increase in the
e~ficiency of u~ilization of manpower.
FOOTNOTES
1. Subsequently, economic Lekonomicheski~r/ mechanism.
2. At the stage of mastering newly built enterprises economic levers should
be directed primarily toward the attainment oP th~ plannec~ level of la- ~
bor productivity and the size of personnel.
3. See EKONOMICFiESKAYA GAZETA, No 21, 1978.
4. The problems of the periods of effect of established additional payments, _
of economic "security" for disengaged workers (those that remain at an
enterprise, changing their occupation, and those that are reaistributed
be~ond its limits) and so forth remained unsolved.
5. Se~ VOPROSY EKONOMIKI, No 4, 1979, P 55�
6. During 1975 the Nlinistry of Chemical and Petroleum Ma.chine Building alone =
: made changes (as a rule, towaxd reduction) in the ple.nned asaignments for
the volume of sales for 68 associations and plants and for labor produc-
tivity growth, fcr 139 associations aad plants.
COPYRIGHT: Izdatel'stvo Pravda, Voprosy ekonomiki, 1979
~ 11,~39 -
~ Cso: 1823
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M~TPOWER: LABOR, EDUCATION, DEMOGRAPHY
- PART-TIME EMPLOYMENT IN ESTONIA
- Moscow VOPROSY EKONOMIKI in Russian No 6, Jun 79 pp 133-137 -
/Article by L. Kuleshova, T. Skal'berg (Tallin): "The Part-Time Work Sched- '
ule (Based on the Example of the Estonian SSR)"/ -
/Text/ The improvement of the structure and use of the total available
working time in conformity with the developing needs of the national econ-
omy is one of the most important conditions for the increase of the effi- ,
ciency of social production and the solution of the problems of increasing
the standard of living of the people. In solving the immediate socio-
economic tasks at the present stage the more extensive adoption in all
spheres of social production of part-time work schedules .is necessary.
- The tightness of the budget of manpower resources, the proZ~ressive tendency
for the number of retirees to increase, the introduction of compulsory
secondary education (which undoubtedly will slow the i~flux ~f youn~ people
. in the sphere of social production) and the increase of the need of workers
for additional free time require the study and use of more flexilxle work ;
~ schedules. '
The increase of free time is of particular importance for working women. As !
is known, in our country as compared with other highly developed countries ;
the degree of employment of women in social production i~ the highest--44 =
percent. Here the level of employment of women 20-49 year,s old, which is
the most favorable age for childbearing, is espec3ally high--8$.5 percent ~
of the total number of this age group. This means that 9 out of every 10 _
Soviet women combine labor at a works with household duties, which for them
take up 3.5-4 times more time than for men. ;
~
The Communist Party is pursuing a policy of guaranteeing the genuine equal-
ity of women with allowance for the workload of women at.the works and at
home. "In the approach to this question we have in mind not an arithmetical
identity of a number of characteristics which pertain to the position of i
women and men, but the equal social consequences in the position of women i.
and men at the works, in daily life, in the family and in public life," ,
V. Nikolayeva-Tereshkova noted at the International Meeting of Women in ,
i.
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Moscow in 1977. The new USSR Constitution calls for in the future (Arti-
cle 35) "the gr?dual decrease of the workit~g time of women who have young
children." The more extensive use of part-time work schedules might be one
of the stages on the way to the standard reduction of the working time for
, this category of women. The social progra~m of the lOth Five-Year Plan, which
was adopted by the 25th CPSU Congress, stipulates the need for the use of
work schedules which make it possible to sensibly combine labor in aocial
= production~with motherhood.
. rart-time work schedules help to lengthen the period of active labor of
middle-aged pgople, as well as facilitate the involvement in social produc-
tion of disability recipients. This is of great social and economic impor-
' tance, since at present, on the one hand, the tightness of the budget of
manpower resources is intensifying and, on the other, the proportion of
; people of retirement age is increasing.
; The Estonian SSR Ministry of Light Industry, the republic Council of the
; Trade Union of Light Industry Workers and the administrations of enterprises
~ in the 1960's began the extensive introduction of part-time work schedules.
~i Whereas for the country as a whole the employees with part-time work sched-
~ ules constituted 0.41 percent of all workers in 1976, in Estonia they con- -
; stituted 1.4 percent, including 3.6 percent at personal service enterprises,
2.0 percent at local industry enterprises and 2.1 percent at communications
~ enterprises. At the enterprises of the Estonian SSR Ministry of Light In-
' dustry the part-time workers constituteri 2.1 percent.
~
The Estonian light indnstry enterprises under the orders of the republic min-
- istry are constantly checking questions of part-time job placement. All the
information on occupations, the number of workers, the categories of the
population, which work according to such a schedule, on the shift system and
length of work and the average wage is sent from the enterprises to job
placement bureaus and the ministry, where it is brought together in uniform
_ "Proposals on the Provision of Employment in a Job With a Partial Working
Day-Week for the Year...." Moreover, the enterprises periodically supply
- information to the ministry on the employment of part-time workers with an =
indication of the occupation, the length of the workday, the output norm
and the wage.
The overwhelming majority of part-time employees is made up of those who _
~ prior to this worked full time.at the enterprise. With a request for a
I transfer to convenient work schedules the administration tries not only to
! shorten the shift, but also to ad~ust the schedule of appearance at work to
the needs of each specific worker. If there is a need to work during two
; shifts a schedule of shiftworks is drawn up, which stipulates the procedure
; of rotating shifts.
I At Estonian enterpris~s the ma~ority of part-time employees (workers of the
main occupations make up 90 percent of their number) belong to brigades, in
, which workers with both a full and a partial shift work.
;
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Table 1
Part-Time Employees for Enterprises of the Estonian SSR
Ministry of Light Industry on 1 January 1977
- 5 C 6
~3~K 4~ m o s.! ~ r~~m ~
~1~ f2\ =a ?.:eo= a~ ma
\ J aA~ sF=m
_ nplAfiPHATNA fipo~ecc:~a q~?~ ~o?^ qoF ~74'~~
u ~D ~ O c
""mm tcc_' U^~ Uc~=~=
C~a-r `
(7~cpaGpEUCa rKei~~a~ (8) uy6nep 4 33 86 109.7
( ~9) To~;apb 4 4 6~ _ -
Qra6opaHr 4 6 51
43 ~~fi~
(12~ lIlIIO al'ianT~tKaa w~c~ tioTOpucrKa �~-G 127 105,8 122,6
_ pachnaay~+h-o6- ,
(14)~enonwE+K 4 2 125.4 136,8
Gyxranrep (15 5 2 87,3 -
(16xiP}+ranHp 6 I 10(1,0 - ,
npo4~+e (17) t--6 6 IOU,O -
138 ~hl~
~ 18~ ?0,0 108.5
WIlO ~~~~eHN . Knea~e~~n+ 19 woea 2 I �
19 ~~~aeH ~ 43 7y.0 13U.2
~14 wE~eH 5-7 5? I-~3.0 1~1~.5
~:ouniehrosiu~+ua G--1 2 119.U l'~6,U
- (20)
9s v~ i.l ~ I
- ~
Key: i
1. Enterprises 11. People
2. Occupation 12. Baltika Clothing Production ;
3. Length of workday (hours) Association :
4. Number of work.ers for the 13. Sewing machine operator i
given occupation 14. Spreader and chalker :
5. Average wage (rubles) 15. Accountant
6. Average percentage of ful- 16. Brigade leader ~
fillment of the output norms 17. Others
7. Keyla Factory 18. Clothing Production Association I
8. Standby operator imeni V. Klementi ~
9. Lathe operator 19. Seamstress
10. Laboratory worker 20. Parceller I
Brigades of 25-40 people, in which the part-time employees make up from 5 t~
40 percent, work at the Baltika Clothing Production Association and the '
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Clothing Produc~_Lon Association imeni V. Klementi. The average length of -
the incomplete shift at these enterprises is 6 hours 5 minutes. The part-
time employees, depending on their personal circumstances, can either fin-
- ish working~earlier or appear at work later than the start of the shift.
For example; the first shift at the Baltika Clothing Production Association -
_ begins as 0520, while kindergartens admit children at Q700. Therefore
_ n~others (45 percent of the part-time employees have children up to 7 years
old) can begin~work at 0800, finishing their shift together will all the
_ workers at 1530. At the Sulev Factory in the carpet shop the workers with
a 4-hour shift work from 0600 to 1000, from 1030 to 1430, from 1700 to 2100,
in the sewing and textile shops--from 0800 to 1200 and from 1430 to 1830.
T'~.e 6-hour shift in all the shops of the factory lasts from 0800 to 1430
and 1430 to 2100.
- It is important to note the great flexibility of the part-time schedules,
_ which make it possible (especially when there are vacant work places) to
effectively take into account the desires of female workers. If necessary,
some female workers are allowed to work 8 hours for a number of days in a =
_ row with several days off. =
At the same time the creation of special brigades consisting only of part-
time employees is made difficult by a number of circumstances: the differ-
ent length of the incomplete shifts (4 hours--27 percent of the em~loyees _
with part-time schedules, 5 hours--24 percent, 6 hours--47 percent, _
7 hours--2 percent); the great variability of the schedules of appearance
at work, which does not make it possible to realize the advantages of the
uniform brigade; the flexibility of the composition of part-time et~~loyees =
- (during 1977 at the Baltika Association and the Associatioa imeni V. Kle-
- menti of the 340 employees with these schedules 20 people worked with an in- -
complete schedule only several months in the middle of the year, 55 people
returned to the usual schedules, 56 people converted frem a full-time work
schedule to a part-time work schedule); the reluctance of female workers to _
( be transferred during the period of part-time employment to another brigade.
, In these instances the technologist-rate setters have to plan the distribu-
j tion of inseparable operations among the groups of female workers in the -
-i brigade so that the daily assignment would take into account the available
~ working time of each group. For example, two sewing machine operators be- _
' long to one of the groups of the Stella Brigade of the Clothing Production
; Association imeni V. Klementi: for one tihe length of the shift is 480 min-
utes, for the other it is 420 minutes. Iri all the available working time
- of this group is 900 minutes. The daily assignment, which consists of four
inseparable operations, takes up 1,077 minutes. When issuing the assignment
- the technologist-rate setter establishes on the basis of the level of skill
of the workers a 119.7-percent fulfi:Llment of the output norms. If the time
allocated for the fulfillment of the'assignment considerably exceeds the
available working time of the group 'to which the seamstresses working a
gartial shift bel~ng, some of the o;o~rations are turned over to other groups,
in which more skilled workers work, or to the reserve workers, who are pres- .
ent in each brigade at a rate of 7-10 ~ercent of the size of the brigade. In
37
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- some instances, especially with unplanned absences from work, the brigade
leader or the foreman, whose duties do not include the performance of this
job, occupies the vacant work place. :
iJhen transferred to shortened schedules the part-time employees continue to .
work, as a rule, at their own work places. Therefore, the individual form
of tYie organization of labor on part-time schedules exists at the same time
as the schedule of full-time employment. For example, in the carpet shop of
the Sulev F~.ctory there are individual work places with portable stands for
those working an incomplete shift, while in the sewing and textile shops the ; -
female workers also work in brigades. The instances of a change in occupa- "
tion and the mastering of related occupations when transferred to shortened
' schedules are rare.
- The analysis of *_he activity of the indicated enterprises attests that the
majority of women work on part-time schedules for 1 month to 2-3 years in ,
connection with family circumstances (for example, the placement of a child '
in a kindergarten or nursery, the completion by children of the first and
second grades, the improvement of the state of health, the completion of an I
educational institution). People of retirement age, who, as a rule, work ~
on shortened schedules for a longer period, are an exception. Usually the
administration of the shop, the foremen and the brigade leaders have talk~ ~
with the people of retirement age, suggesting they think about continuing to I_
work under part-time conditions,~ if circumstances do not allow the worker
= to work on the usual schedules. In this case the benefits connected with ;
part-time schedules are explained to the worker and the possibility of being i
transferred to another work place in the same or another specialty is indi- !
cated. fiowever, about 80 percent of the people put on a pension during the i
year continue to work on the usual schedules. Of the entire number of work-
ing retirees 10-15 percent are transferred to a part-time work schedule.
_ Skill, discipline and workmanship help them to be ~ust as good in labor in- i
dicators as younger workers.
In some cases newly hired workers are also provided with employment on these
scl~edules, but for different enterprises their percentage is different. It ~ ~
should be noted that not a single instance of refusal of those who ileed these
schedules has been observed, although the enterprises are constantly experi- '
encing a shortage of a regular labor force and, of course, are more inter-
ested in workers who could work full time.
The labor productivity of female workers employed part time at all the enter- i
prises is considerably higher than the average for the occupation. The fact ;
that the working time has been reduced is the main reason for this. People ~
working a partial shift spend on a basic operation on the average 5-7 percent ;
less time than female workers with an 8-hour shift, who are engaged in a '
similar operation, which attests to the higher labor intensity on part-~ime ~
schedules. ~
~
Morec-ver, another factor is in effect here: in working a partial workday, ~
the female worker completes her labor process before the body reaches that I~ ~
i
I i
38 ~ ! !
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degree of fatigue, where at the end of the work shift the labor productivity
declines. As a result, the average hourly output of those working a partial
- workday is higher than ~he average hourly output of those employed for a full
work shift.
_ The data on the output of workers with a different length of the partial
shift at the Bal.tika Clothing Production Association and the Clothing Pro- -
_ duction Association imeni V. Klementi attest to the dependence of the ful-
fillment of the output norms on the length of the shift, as well as show the
amount of compensation of the reduction of working time per hour by means of
_ the increase of labor product~!vity:
Table 2
Length of shift Percent of fulfill- Percent of compensa-
(hours) ment of output norms tion of a 1-hour re-
duction
4 148 20
5 141 20
6 136 28 =
7 130 52
8 121 �
Thus, the increase of the average hourly labor productivity in the case of
part-time employment is the result of the increase of its intensity, which
at the same time, according to studies of physiologists of the Center of the
Scientific Organization of Labor and Management of the Estonian SSR Ministry -
of Light Industry, will not entail changes in physiological functions, which
exceed the limits of normal changes. -
With the partial workday the extensive use of working time also improves,
its direct and indirect losses are reduced. In most cases the female work-
ers with a partial shiftprefer to shorten the regulated breaks for rest and
personal needs, thereby rec?ucing the time for the production of a unit of
_ output, which leads to an increase of the proportion of operating time in ~
the available time of the shift. The operating time for a seamstress with a
partial workday is 91-93 percent of the length of a shift, while for a seam-
- stress with an 8-hour day it is 85-87 percent.
The experience of the Estonian enterprises also attests to the fact that
for workers who have been transferred to shortened work schedules there are -
no losses of working time at all due to violations of labor discipline,
the instances of failure to appear due to i].lness and absence from work with
' permission of the administration are considerably rarer. This is explain~d
- by the flexibility of the part-time work schedules, ~which makes it possible
i� necessary to change the schedules of appearance at work for a certain
period. '
The improvement of the extensive and intensive use of the available working
time ~'of those employed on part-time schedules is leading to a substantial
~
- ~ 39
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increase of labor productivity. This, in turn, has an influence on the
- size of the wage fund. For example, at the Baltika Association and the
Association imeni V. Klementi with a 40-percent reduction on the average in
the working time worked in 1977 the average monthly wage of the female work-
ers decreased only 25 percent and was according to piece-rare estimates ~
109.6 rubles, and along with payments from the economic.incentive fund-- -
115.7 rubles. ~
Table 3
Absences Per Worker (in Man-Days; October 1976) -
IIC:iHKII ~
FIcHI~~(' nu fl ~rv~~.i Pa.+pcwrune
GonclNi+ y pa. y ~ANIIIIHI'T~t;l�
604H% V:1(0411:t Illpl y PB~O- ~
1 4 ,~~~a
fI v e n n~l(w r~i a '~5 _ I `�~6 ~5~ _ti�.~6 ~5~ ~"~T'
_ a ~ y s ~ m y ~ m m~ ~
I`~�_m. o~~ oam` j _
c + s - ~ : Z
uc va _
o n 4 I ~ ~ = _ ` n ' ? ? , ` ~ a ' _ J .
(7) Ko;fieneFirio � r.1.78flTeFlfllf16111
RO~I~FIf18T ~:.~Iciituab O,iO - 0,03 - 0,30 -
8 u~n0 ~EBJITHKC'o ~,8�~ ~,l~ - u,~s
~93 Wf10 115IPHkl B. {~~e~teHTif 1,16 1,30 - - Q.12 -
~iQ~OA