ESTABLISH BONUS SYSTEM, CONTRACTS, SAFETY MEASURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600400105-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 105
• Publication Date: June 27, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0
'1
CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY Hungary DATE OF 1951
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
Sociological ..Labor conditions
Daily, weekly newspapers
Budapest
24 Apr, 5 May 1951
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE NEARING OF ESPIONAGE ACT ^O
U. S. C.. SI AND 11,A1 AMENDED. ITS TRANSMISSION ON THE REVELATION
OF "S I TS II ANT TO AN U PZRSOR
MINUTEDC ST TLAW. I REPRODO TION OF THIS FORM OISI PROHIBITED. IS PRO
INFORMATION
DATE DIST. 27 Jun 1951
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
CONTRACTS, SAFETY MEASURES
ESTABLISH BONUS SYSTEM
COUNCIL OF MINISTERS SETS UP BONUS SYSTEM -- Budapest, Magyar, Kozlony, 5 May 51
By discontinuing the wage system based on indexes which at present hamper
production, the Hungarian Council of Ministers has increased the incentive of
wage earners to increase labor productivity, to improve quality, and to reduce
cos::s. In addition, the directors of enterprises are enabled to direct the
workers to fulfill the most essential tasks of the enterprise.
The bonus cyst?m L to be applied to workers whenever a saving can be ef-
fected through the ccfupletion of definite tasks.
In cases here the saving effected cannot be measured and shown, the bonus
system may be instituted only with the permission of the minister concerned.
In these cases, the highest bonus rate also is to be determined by the ministry.
In general, bonus rates are based on individual performances. The bonus
system is to be applied, therefore, when individual achievement can be measured.
If the character of a task is such that individual performance cannot be
LVilci.ti73 voauu ? ....L- ..? .. to be set for a .-_-cap or shop. Only thnse
LLC I.CS'llliiicti, i.. to ..~ ..... for - p--rp __ .. _._~.
workers may receive bonuses whose work directly influences the fulfillment of
the task. In such cases, the following four factors will be considered: eco-
nomical use of materials, reduction of costs of production, improvement of qual-
ity, and increased production..
If the worker does not perform the task set as the basis for the bonus, no
deduction will be made from his wages. He will receive only the wages due him
for the pay period involved.
Not more than two tasks may be set as the basis for a single bonus. In
addition, one or two other tasks may be set whose accomplishment is a prere-
quisite for the bonus. For e'smple, the worker will receive a bonus if he
makes more units from a given quantity of material only if the number of his
STATE
ARMY
NSRB
FBI
CONFIDENTIAL
DISTRIBUTION
. C F1)E AT1A1
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0
 Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0
rejects does not increase. A maximum of three tasks may be set for every worker.
Several tasks of a similar character may not be set for one worker. For example,
a cutter may not be given two tasks which may call for the production of more
units from the same quantity of material and the reduction of waste at the same
time,
A set task is generally not to be changed in less than 6 months. The task
set as a basis for a bonus may be changed in less than 6 months if another eco-
nomic goal has to be given priority to fulfill the plan of the enterprise. The set
task is to be changed in less than 6 months if there was an error l.: deception
was used at the time when the bonus was determined. The worker is to be informed
in advance regarding any change in task.
The amount of the bonus is to be determined in a fashion which will permit
every worker t& receive an identical bonus for every unit of output. Deviation
from this rule may be permitted by the authority having direct supervisory con-
trol over the enterprise.
The sum necessary for the payment of bonuses is to be planned when the
wage fund of the enterprise is budgeted. The sum may not exceed a certain per-
centage, determined by the minister concerned, of the saving effected through
the accomplishment of the tasks. The authority having immediate supervision
over the enterprise is to fix the amount of money from which bonuses will be
paid.
The ministers concerned will issue bonus regulations for every branch of
industry. These regulations will include the following: detailed instructions
regarding the introduction of the bonus system, applicable to the branch of
industry in question; the major tasks to be set by the branch of industry con-
cerned; the various types of operations; savings according to categories (for
example, the amount of bonus payable in metallurgy for savings in coke); the
conditions of collective tasks; the percentage of savings to be included in
the wage fund of the enterprise for the payment of bonuses; instructions for
the permanent supervision of the bonus s-stem; etc.
These regulations are to be issued by 15 May 1951. Upon the request of
the workers, the facts used to determine the amount of the bonus to which they
are entitled must be announced,
The above decree will go into effect on 1 June 1951. The previous decrees
of. the National Wage Committee concerning wage systems based cn indexes will
then become void.
HELP REGULATE LABOR CONDITIONS ....? Budapest, Magyar Kozlony, 5 May 51
The Hungarian Labor Code, recently issued, gives workers the right to
participate ~?,vertllr 'n the regulation of working conditions and in the opera-
tion of the enterprise,throughthe new socialist collective contracts.
The Presidium of the National Trade Unions has proposed that new industrial
collective contracts be initiated in order to gi:e workers the opportunity to
take advantage of the rights granted to them, and so that, workers may be instru-
mental in fulfilling the requirements of the Five-Year Plan.
The Council of Ministers has, therefore, decreed that during the second
half of 1951, the directors of 150 enterprises shall enter into contracts with
plant committees, on the basis of principles expressed in the Hungarian Labor
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0
 Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0
'I
CONFIDENTIAL
CONFIDENTIAL
The ministers concerned, together with the labor unions, will designate
the enterprises in each branch of iudustry.where collective contracts are to
be signed.
INDUSTRIAL ACCIDENT RATE DOWN'-- Budapest, Vilagossag, 24 Apr 51
Since the end of the war, the precentage of industrial accidents in Hun-
gary has been reduced significantly. Hungary's new plants, the Textile Plant
at Szeged, the Danube Valley Alumina Plant, and the Ganz Plant at Godollo have
been built to satisfy safety requirements. The government has issued a safety
code and has defined the responsibilities of management.
The Hungarian Labor Code holds the directors of enterprises personally re-
sponsible for putting in effect the regulations concerning safety. Every newly
engaged worker is to be instructed regarding accident prevention.
On 1 October 1950, the government entrusted the labor unions with the
supervision of the execution of safety measures. In addition, the labor unions
were instructed to educate the workers to be safety conscious.
The percentage of accidents for every thousand workers in 1950 was 4.5
percent lower than in 1949. In spite of these good results, the accident rate
in Hungarian industry is still very high. For example, the time lost in the
MAVAG (Hungarian State Railroad Steel and Machine Factory) locomotive works in
1950, because of accidents, was sufficient for the production of'8 locomotives.
More than half the accidents are caused by negligence. Peter Bod
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400105-0