Maliuchenko Kateryna

Poltava State Agrarian Academy, Ukraine

Graduate student of Poltava State Agrarian Academy

Material stimulation of workers at agricultural enterprises

Wages in agriculture should play reproductive, stimulating and regulatory functions as in any other field. Unfortunately, at present, wages in most cases do not perform any of its functions. Without significant increase in work motivation it is not possible to provide the transition of economy on mainly intensive development and implementation of radical economic reforms to achieve significant results in the increase of production volumes, lower costs, raise of profits [5].

  The study of the impact of financial incentives on interest in agricultural labor has been made by such scholars as L.Holovata, A. Gordeev, M. Kosolapova, V. Svobodyn, N. Morozov, V. Shorokhov, A. Bugudskyy, G. Kupalova, V. Diyesperov, H. Orlov, V. Uvarov and others.

Salary - is one of the most difficult economic categories and one of the most important socio-economic phenomena. On the other hand, it is the main (and often the only) source of income for employees, and the basis of material well-being of their families. On the other hand, for employers wage is a substantial share of production costs (short-term payments) and effective means of motivating employees to achieve the goals of the company [4].

The essence of the term "wages" is complex and multifaceted, so it must be considered from different perspectives (table 1).

The above mentioned ways belong to methods of the direct state controlling. Besides them , the state uses methods of indirect influence on the wage level through the regulation of consumption fund and through the taxation of enterprises and employee incomes.

The agreed regulation of labor remuneration of the hired workers is made with the system of rate agreements, which are composed on the inter-branch (general rate agreement), branch (branch rate agreement), manufacturing (rate agreement as the part of collective agreement) levels.

Table 1

The scientific approaches to the interpretation of the meaning of the salary

The scientist	Definition
Adamchuk V.	The salary is the element of the hired worker income, the form of ownership realization for the rightful resource work.
Azrumian A.	The salary is the money or goods quantity, which the worker gets for the unit of labor hours.
Butynets F.	The salary is the form of distribution of individual consumption between workers according to their participating in the total labor, the quantity and quality of expended efforts.
Marks K.	The salary is the payment for the labor of the hired workers, which reflects the modified form of value and the cost of labor force.
Mochernuy S.	The salary is the part of the goods cost price ( labor, service), which reflects the costs of labor force, depends on the results of the work, market conditions and qualified characteristics of the worker.
Nosova S.	The salary is the price for human working.
Pass H.	The salary is the payment of the hired worker for the using his labor as the factor of manufacture.
Rosenberg B.	The salary is the part of the cost of the product created by the labor, the income from its selling, which the worker gets from the executive of the enterprise, where the worker is functioning.

Legal norms with regard to improving the level of material meaning are determined with the Labor Code and other legislation system of Ukraine.

The minimum salary is the measurement of the wage, which is determined by the state. Below this measure no one can make payment for the performed work of the full month (daily or hourly) rate of work (working time) (table 2).

The law of Ukraine about the determination of the living wage and the minimum salary is setto the fixing the minimum of subsistence and the minimum salary. It gives necessary social protection of every Ukrainian citizen during the economic crisis. The achievement of state policy with regard to labor paying is provided by the Department of Labor and Social Policy of Ukraine, departments of labor and social affairs of local governments.

Table 2

The levels of minimum salary according to The Law of Ukraine “On state budget of Ukraine”

Period of validity	Measurement		Standard act, which was set the new measure of the minimum salary
	Monthly	hourly
01.01.2013	1147 grivnas	6,88 grivnas	The Law of Ukraine “On the state budget of Ukraine for 2013” (article 8)
01.12.2013	1218 grivnas	7,3 grivnas	The Law of Ukraine “On the state budget of Ukraine for 2013” (article 8)
01.12. 2014	1218 grivnas	7,3 grivnas	The Law of Ukraine “On the state budget of Ukraine for 2014” (article 8)
01.07.2014	1250 grivnas	7,49 grivnas	The Law of Ukraine “On the state budget of Ukraine for 2014” (article 8)
01. 10.2014	1301 grivnas	7,8 grivnas	The Law of Ukraine “On the state budget of Ukraine for 2014” (article 8)

Low wages do not motivate the interest of workers in achieving high final results. However, using cheap labor, employers are not interested in raising productivity, investing in productive assets renewing and developing. Cheap labor leads not only to the low level of productivity, but also to poor quality of products, and as a result to non-competiveness.

Low wages are a major cause of unprecedented raise of hidden unemployment and a significant decrease in demand. Therefore, the low level of wages is not only the result , but one of the main reasons for a long stay of economy of Ukraine in crisis [4]. It is therefore an extremely important task to restructure salaries, to perform corresponding reforms to ensure gradual increase of wages and create effective motivation mechanism, based on the combination of economic incentives and social security.

In market condition wages motivating functions include the following conditions:

- The salary of each employee is determined by his own labor contribution to the overall result of teamwork ;

- Increased differentiation in pay depends on its complexity and quality, demand of produced goods;

- Gradual elimination of monetary compensation for non- prestigious job and unfavorable conditions. Such compensations leave unfavorable conditions and stimulate the implementation of scientific and technical development and devalue the motivating function of payment for work;

- The expansion of stimulating area of remuneration by setting the optimal ratio of minimum wage guaranteed by the society that ensures the reproduction of skilled labor and the highest possible earnings, which would provide qualitative differences in the level of welfare of workers with different labor input ;

- The change of the functions and role of bonus systems [4].

References:

1. Закон України «Про оплату праці» № 1086 - ІУ від 10 лип. 2003 р. [Електронний ресурс] / Верховна Рада України. − Режим доступу : http://www.rada.gov.ua.

2. Катеринець Н. Облік праці за новими формами / Н. Катеринець // Дебет-Кредит. – 2009. – № 5. – С. 26-27.

3. Кодекс законів про працю в Україні № 322 - VIII від 10 груд. 1971 р. [Електронний ресурс] / Верховна Рада України. − Режим доступу : http://www.rada.gov.ua.

4. Особливості розрахунків з оплати праці та шляхи їх оптимізації / М. С. Карпа // Бухгалтерський облік, аналіз і контроль в системі управління підприємства. – Львів : Видавництво Львівської комерційної академії, 2010. –240 с.

5. Червінська Л. Щодо оплати праці аграрних працівників / Л. Червінська // Пропозиція. – 2010. – № 3 –C. 28-33.