NIK reports salaries in state controlled companies not based on performance

The Supreme Board of Inspection (NIK) says the size of salaries earned in state companies and companies belonging to the Treasury has little to do with their financial results. NIK examined 94 companies analyzing the salaries from 1997 to 1999. As it turned out the salary system was not motivational. Bonuses did not depend on financial results of the company but on whether employees obeyed their bosses or followed safety regulations. Salaries increased the most in unprofitable companies. Some of them do not pay Social Insurance Company (ZUS) or Labor Fund premiums however it does not prevent them from raising the salaries or paying out bonuses. Additionally, salaries of management increased faster than those of employees. NIK reports that the ratio between those two groups is one to five. In some companies the management earns eight times more than the ordinary workers. The head of the mining-steel sector of KGHM Polska Miedz in Lublin earned a record zl. 92,000 a month in 1998. (Zycie, page 4)