Soviet Economic Changes Outlined

The Soviet Union on Saturday published a draft law outlining sweeping changes in the structure of the economy, including easing the central state control of businesses, introducing a profit motive and allowing workers to elect managers and bosses.

Regulations for joint ventures with foreign companies, including those of the West, were also set out.

The law embodies virtually all major reforms called for by Soviet leader Mikhail S. Gorbachev in his attempt to turn around the slumbering economy, according to the official news agency Tass.

The draft regulations were published to allow debate prior to the next sitting later this year of the country’s parliament, where the law is expected to be adopted.

The essence of the law is to make factories and other state-controlled enterprises more efficient and independent by giving them freedom to innovate and cutting away the safety net of hefty state subsidies for nonprofitable factories.

Under the new law, managers will be elected directly by workers for terms of up to three years, and businesses will be permitted to fire workers whose performances are substandard.

Individual businesses will also be free to set their own pay scales based on production and free to reinvest and distribute profits among workers.

“Each enterprise will independently use profit, creating through it the fund for the pay for work, social development, development of production, science and technology,” Tass said.