Complex sentence: The direction of the new wage system was to cut down the number of the levels and also expand the difference between two levels, thus could encourage workers to improve their knowledge about the production and also the ratio of productivity.
Split into simpler sentences: The direction of the new wage system was to cut down the number of the levels and also expand the difference between two levels. In this way, it could encourage workers to improve their knowledge about the production and also the ratio of productivity.