Mrs. Stolarek, 22. 5. 1987, ?

TranscriptPlease note that this transcript is based on audio tracks and doesn't have to match exactly the video

What were the problems connected with the previous management system?

In the previous system, the so-called directive system, the autonomy of the enterprises was very limited in practice. Therefore, this system was highly ineffective. Obviously, these… Our economic reform has brought about changes toward increasing the autonomy of enterprises and we consider it to be very beneficial.

Does the current reform allow the factory to operate autonomously?

That was one of the premises of the reform. However, not all premises of the reform have been implemented due to our numerous limitations concerning materials, foreign exchange, or recently, even staff.

Could you give some examples of difficulties with deliveries, supplies?

We constantly have problems with securing the right amount of forgings, castings. This is due to underdeveloped domestic production of this kind. Also, we have difficulties with fully stocking the enterprise with indispensable body panels to manufacture cars.

Let’s move on to the situation of workers. Are they paid well in the present workplace? If you could, please look slightly more at me, alright? Are they paid well?

Of course, this matter varies depending on individual perceptions, or on the person. Our workers think that they are not sufficiently... I mean, that they could and should earn more. The work is very arduous, even right here, on the assembly line, where the rhythm is imposed and the course of the line is fixed, where the worker must constantly, with great attention and focus, perform repetitive operations. Since we are discussing wages, they should be considered in the context of other workplaces, or of the same professions, but compensated as employees in other workplaces. Our factory is not remunerated less, I mean, that the workers are not remunerated less than those in large industrial plants in the capital. Nevertheless, I repeat again, due to the inflation that we have, individual perceptions are unfavourable. They expect a higher wage increase.

And what stands in the way? What I mean is what you said about the profit tax.

Yes, the remuneration possibilities of the factory are limited by systemic solutions. A substantial increase in wages above the defined threshold generates high taxes, a high tax burden paid out of profits. Therefore, the factory, mindful of self-financing, must take this fact into account and calculate accordingly how to assess the possibility of wages increasing.

So, it restricts… Does not allow to… It is simply disadvantageous to pay workers more, because the entire enterprise suffers.

Yes. In such a case, the capital we economize within the limits of self-financing would be depleted in the part set aside for development, and obviously, in the long term, it is impossible to survive without funding for reconstruction, or modernisation of the machine facilities.

Does the factory want to manufacture more cars than are manufactured now?

Yes, we do not use the full manufacturing potential of the factory. Nonetheless, like I said before, the restrictions on resources, materials, especially concerning imported purchases, do not allow us to make full use of this potential. Even though there is market for our cars.

So, what stands in the way of manufacturing these cars?

I have just said it, those difficulties.

Is there a lot of people in Poland waiting for cars?

Yes, it is a pretty common phenomenon. We are facing the manufacturer’s market and we are simply trying to, so to speak, meet those needs, but right now, they are not satisfied yet and we do not see a possibility of it happening in the coming years. It is necessary to… It is necessary to substantially increase supply; that is the manufacturing.

Why is the factory seeking cooperation with foreign companies? What is the reason for this?

It presents multiple benefits for the enterprise. First of all, it is included in the system, that is, depending on the amount of export revenue, by means of the specified rate of foreign currency write-offs, we gain the capacity to spend funds for import. Without imports, it is impossible to manufacture any car here. Secondly, which is a very important aspect, is that… The opportunity for contact, the possibility to confront our products on foreign markets, from which come progress, necessity, or forcing changes, adjusting them to the exigencies of foreign markets, which later also has an effect in our… For our domestic customers.

There’s no… Is it the only incentive for progress in manufacturing?

Well, no. We are aware that this is not the only one; however, we highly value these contacts in this regard. But our opportunities for development in the fiscal system existing in the reform now, are not great.

That means that… The reform does not stimulate the workplace to receive some progressive, prospective...

One cannot really say that. The reform stimulates in this direction, however, there are conflicting interests, the budget revenue, among others, which is an important matter, and perhaps sometimes overshadows the needs of enterprises, which are, after all, also very important.