Comments on Two Articles Concerning the Abolition of Piece-Rate Wages

Send to Comrade Chen Boda[1] for perusal.

These two items[2] may be read.

(December 1959)

[1] Chen Boda, then alternate member of the Political Bureau of the CPC Central Committee and director of the Political Research Office of the CPC Central Committee.

[2] Refers to the two articles "Labor Efficiency Generally Rises After the Abolition of Piece-Rate Wages in Beijing's Industrial and Mining Enterprises" and "Labor Efficiency More Than Doubles After the Abolition of Piece-Rate Wages at Jiulongshan Warehouse," published in *Internal Reference* No. 2928, compiled and printed by the Xinhua News Agency on December 6, 1959. The former article pointed out that after the abolition of piece-rate wages in Beijing's industrial and mining enterprises, transportation, and construction industries, under the premise of politics in command, production rose and efficiency increased. The main problem after the abolition of piece-rate wages was that workers' wage levels declined. Recently, the Central Committee decided to still issue the Leap Forward bonus at year-end; if this is done, generally speaking, the original income level can still be maintained. The latter article pointed out that the Beijing Jiulongshan Warehouse had consistently implemented the old piece-rate wage system in the past, which hindered production and the raising of workers' ideological consciousness. After the abolition of piece-rate wages, production took on a completely new look, labor efficiency more than doubled, and warehouse management work also greatly improved. This was concretely manifested in: (1) The labor organization was changed, and the "Two Participations and One Reform" was implemented. (2) A technological revolution centered on semi-mechanization, mechanization, and electrification was launched. (3) Management work was handed over to storage workers, greatly enhancing the workers' sense of responsibility.