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ArticleName Management of manufacturing process and labour remuneration: Correlation and impact
DOI 10.17580/tsm.2018.04.01
ArticleAuthor Kotlyar B. A.

“TSNOTORGMET” Consulting Center, Moscow, Russia:

B. A. Kotlyar, Managing Director, e-mail:


The article justifies the necessity of integrated improvement of management of manufacturing process and staff remuneration. At the present time, the industry tariff agreement (ITA) and collective agreements (KD) are used as a basis for organization of labour remuneration. However, in the author’s opinion the employers and trade unions, representing interests of employees, do not take fully into account correlation and mutual impact of measures aimed at productivity increase and labour remuneration, which decreases the competitiveness of national companies. The article provides recommendations to increase the dependence of payroll budget on enterprise performance indicators and dependence of salary on labour results with such dependence to be stipulated in each KD. Only such dependence can secure the interest of all categories of employees in integrated improvement of production. Certain directions for such improvement are provided in the article based on current practice of United Metallurgical Company (Vyksunsky metallurgic plant), PAO “Severstal”, OK “RUSAL” (Krasnoyarsk aluminum plant) and others, and relevant Soviet period experience. Optimization of management organization structure and production planning, based on dispatching control in combination with usage of principles of lean manufacturing and possibilities of digitization, can provide sound foundation for enhancement of labour efficiency and remuneration. Best practices, described in the article, can promote the involvement of personnel in addressing the problem of enhanced competitiveness in the case of metallurgic companies.

keywords Organization, production, labour remuneration, planning, dispatching control, labour productivity, involvement

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