Siarhei Chaly: Salaries Will "Raise" At The Cost Of Mass Layoffs

Increase in average salary up to $ 500 can only be achieved by restructuring of enterprises and firing of workers.

The economist Siarhei Chaly said that to Belorusski Partizan.

"Salary is tied to labor productivity in Belarus. However, the labor productivity is calculated primitively – it is derived by dividing the amount of goods produced by the average number of employees. This means that the value of labor productivity can be raised by firing these workers and the restructuring of enterprises. If the same amount of work is performed by less workers, then it will be quite possible to make the average salary reach 500 dollars," – the economist thinks.

"The choice is narrow: either full employment, as we have now, and an average salary of 300 dollars, or mass layoffs - then those who remained employed will earn 500 dollars, while the others will get unemployment benefits equal to the subsistence minimum," – Chaly thinks.

In the opinion of the economist, Lukashenka's words that he "will not allow to close or sell enterprises without thinking" are nothing more than just words.

"When someone says that "you can't sell enterprises without thinking", this means that you can close them after thinking. The authorities have no other way out of the situation – there are no money to maintain these enterprises," – Serhei Chaly is sure.

Let us remind that Lukashenka ordered to raise the average salary up to $ 500 in 2017.