Salary system aplication on example of industrial wood processing

Depending on the production branch, the personnel costs account for different shares in total costs. Salaries represent the biggest share of total costs. The labor market is shaped by general economic development. In work-intensive industries, such as wood processing industry and furniture production, worker's salaries, expressed in absolute monetary terms, are in general lower than the salaries in capital-intensive industries. Comparison of the average salaries in one company and salaries in another company within the same or similar industry makes part of comprehension as a function of business policy. The transparency of this issue is lower under conditions of market management. However, this does not imply that workers, as consumers of their share in salaries, are not interested in these issues. On one hand, workers constantly want to earn more in order to provide for better living conditions, i.e. to provide for goods, which are unavailable to them at the moment. On the other hand, the employer or the owner wants to pay the workers less in order to make a higher profit. The conflict between work and capital is becoming increasingly open and severe. Nevertheless, it is necessary to find means and methods for work evaluation even in this conflict between work and capital, which has been going on since this polarization occurred. In this process, interest should be focused on establishing the differences between the types of work in specific environments. The basic work value is established in accordance with work complexity and other elements that determine its development. The basic work value in total salary should not exceed 70%. Besides the basic work value, both the employer and the worker are interested in creating stimuli for superior performances. The individual performances are assessed accordingly, even though they differ among individuals as a rule. The validation of individual contributions to total performances should not be lower than 30%.