The Primary Trade-Union Organization of the Enterprise of Open Shareholding Company

ISITO, Perm

The primary trade-union organization of the enterprise of Open Shareholding Company Metallurgist

Brief description of the enterprise

"Metallurgist" is one of the most modern and successfully working enterprises of the region. The enterprise is one of those which dominate the city in which it is located and provides work for more than 7500 people and actively takes part in the social and economic and political life of the city.

The most recent events around the factory were related to the completion of the association with an enterprise in the neighbouring oblast’ which resulted in the formation of a vertically integrated company.

The move of the enterprise to a new level requires the satisfaction of a series of obligations, first of all, on the part of the employer: conformity to international standards of business dealing; following the rules of corporate management; observance of the rights of workers and the organization of an open socially responsible business. The enterprise is a member of the Regional association of employers of the Perm region "Cooperation".

Characteristics of the trade-union organization

The trade union of workers of the Open Shareholding Company "Metallurgist" is the representative body of the workers at the enterprise. The trade union established its independence by leaving the regional organization of FNPR in 1992. The decision to leave the regional FNPR organization ФНПР, then the Oblsovprof, was adopted at the regular report-back and election conference of the trade-union organization of the enterprise. And later, in 1999, the primary organization left the branch trade-union organization – the mining-metallurgical trade union of Russia (GMPR).

At the present stage the Metallurgist trade union is the independent representative of the interests of the workers of the enterprise. The organization at present does not belong to any trade-union associations (including alternative), and is an individual organization registered as a legal person, and accordingly independently carrying out its protective function at the enterprise.

The membership of the trade-union organization is 84 % of the overall number employed at the enterprise. It is important to note a distinctive feature of the membership structure of the trade-union organization, compared to the typical structure for many large industrial enterprises, when the trade union includes managers and representatives of administration, including the general director. In the case of "Metallurgist" the majority of members of the trade union are ordinary workers and foremen. Moreover, it is necessary to note that a decision was adopted at the level of the director for the trade union to leave the management structure of the factory.

«Chiefs of shops left quite a long time ago on the order of the general director. There was a serious conflict … at that moment there was, let us say, a tendency: the director said that all should leave. All of them wrote a resignation statement amicably, since then nobody has come back» (from interview with chairman of the trade union committee).

Thus there is a tendency for employees to leave the trade-union in case of "promotion", assignment to the post of chief of shop, for example. The reason for this is that the worker, becoming a manager, gets a new status, which by definition, takes him closer to the interests of the employer and "hinders" the protection of the rights of the ordinary worker.

« Yes, chiefs of shops, some deputies - this outflow is under the plausible pretext, that we have today become true representatives of the employers, in negotiations with you we cannot be representatives of the trade union » (from interview with the vice-president of the trade union committee).

Brief history of the trade-union organization

The departure of the organization from the traditional trade-union system was connected with a complex of disagreements which arose with higher structures. Officially these disagreements were articulated in the form of an ideological conflict consisting in the absence of a shared view of the due status and functions of the trade-union organization at the enterprise. In its wider aspect it was a dispute between two different concepts of trade-union membership - traditional, based on solidarity understood as a duty of a "strong" primary organisation to support a "weak" one (crisis trade-union organizations); and the reformist, based on agreement about mutual duties, concluded between organizations of different levels.

The problem became aggravated after a decision of the oblsovprof to increase the payments transferred by the primary trade-union organizations to 25 % of the total dues collected at the enterprise. It also served as the occasion for the transition of a latent conflict into overt opposition. The situation was that the trade union of an economically successful enterprise did not see the need for a deduction of payments to higher structures as it was not given any real help "from above". Above all, requests of the primary organization to provide legal support and protection of the rights of workers at the enterprise were not satisfied.

The reason for leaving the branch organization (the regional committee of GMPR) was the creation of a Solidarity Fund supposedly to provide financial support to "poor" primary organisations through an increase in the payments from the trade-union organizations of economically successful enterprises. Meanwhile, the functions of the regional committee of GMPR were actually limited to distribution of the payments collected, whereas there was no real support for the primary organisation (by way of granting advisory help in negotiating with the employer).

The mechanism established for the redistribution of money in this case did not suit the leadership of the primary organization: the maintenance of "poor" primary organisation at the expense of the "rich". The logic of the reasoning of the trade union leaders of the primary organization of Metallurgist in this case is rational: protection of the interests of workers, first of all, of their own enterprise, instead of "other's". In this context the concept of solidarity changes fundamentally and is interpreted not as the development of a uniform trade union strategy and mechanisms of work, but as the need to grant material aid and even the long-term financial maintenance of "weak" trade-union organizations.

The departure of the primary organization from the structure was a pretty long process which was accompanied by a series of negotiations and attempts on the part of the primary organization to offer alternative schemes of deductions. Negotiations turned out not to be productive. The position of higher structures remained constant: in spite of everything the primary organization should transfer the established percent. As a result, the trade union of Metallurgist stopped paying its dues, and as consequence acquired the status of a "debtor", an infringer, and as a result officially left the traditional trade-union system. Actions of higher structures for the expulsion of primary organisations can be characterized as the application of penal sanctions, on the one hand, and confidence that independent primary organisations "will not survive", on the other. Though practice shows the opposite: the primary organization exists and successfully carries out its functions. Besides it is necessary to note that the primary organization has sustained its own kind of control over time and has gone through structural changes, both in the transition period, and at the present stage.

Relations between the independent trade-union organization of workers of Metallurgist and the organizations of regional and branch levels at the present stage can be characterized as no more than coexistence. Conditions of mutual non-interference "are fixed" by anagreement according to which the trade union of Metallurgist undertakes not to pursue a policy of creation of alternative associations «to counterbalance the kraisovprof», or to win round other primary trade-union organizations.

At the same time, the primary trade-union organization does not exclude the possibility of association, but considers possible variants (the Russian trade union of chemical workers, the association of enterprises of the aviation industry) with extreme care (taking into account its past experience). Apart from this, the desire "to be united" is also restrained by the absence at present of the physical opportunities required for the resolution of all organizational questions of association. Though, certainly, the necessity of expansion both of the field of informational activity, and experience of interaction and cooperation with other trade-union organizations of a different level is noted by the chairman of the trade union committee. Attempts to avoid isolation are realized in dialogue mainly with organizations at the local level. So, the chairman of the trade union committee holds a post as a deputy in the city Coordination Council.

«Mutual relations with others, effective working relations with all trade-union organizations of the city, both mutual consultations, and mutual exchange, in general, such mutual working relations are normal. Work in the city trade union coordination council is active too to the extent that there they have elected me as a deputy» (from interview with chairman of the trade union committee).

Above the municipal level the trade union experiences difficulties in the establishment of contacts.

«In relations with other enterprises say, with other enterprises of the branch … they are a little cool, there is less contact, less time, we communicate only by phone, we meet about once a year, we call in, any issues are discussed. Clearly, they have become less than close» (from interview with chairman of the trade union committee).

As a whole the conflict which arose (as a result of which there was a detachment of primary organisations) is an intraorganizational trade-union conflict which has reflected the existing problems of the effectiveness of the functioning of the system as a whole. The employer, as well as workers, are little interested in the structural rearrangements that occurred: workers basically are not interested and not involved in the problem of interaction of various "trade-union levels» - for them the activity of the concrete trade union at the enterprise, representing their interests, is important. As for the employer, there were minor changes: the structure of participants in negotiations on the part of workers has not changed, and the exclusion of higher trade-union structures had practically no influence on the character of mutual relations between the sides of social partnership owing to the low activity of the latter in former negotiating processes and collective - labour disputes.

Тhus the independent trade-union organization at Metallurgist has officially existed for more than 6 years. There are a number of reasons for its successful functioning.

Factors of success:

History and tradition

Already in the transition period of the 1990s, At the enterprise when ordinary workers specially needed support, the tradition of a strong and active trade union protecting the interests of workers had begun to develop. The trade union played a significant role at the first stage of privatization during the distribution of shares between workers of the enterprise. At that moment the labour collective possessed a significant part of the share holding. And the trade union represented the interests of workers as co-owners of the enterprise. And, though after the next re-structuring the total volume of shares of workers had decreased to 6 %, the representative activity of the trade union was maintained and has continues primarily as a rights protection organisation.

An important role at the stage of the establishment of the "new orders” was played by the personal qualities of the former chairman of the trade union committee, who had been in post since 1987. During this period the chairman of the trade union committee managed to organize and consolidate the practice of the legal settlement of collective labour conflicts; to strengthen the positive image of the trade union at the enterprise, having demonstrated the effectiveness of the actions of the trade union for the protection of the interests of workers. The period of the 1990s as a whole played a significant role in the formation in the consciousness of workers of the image of the trade union as a protective organization.

Clear organizational structure and differentiation of functions

At the enterprise a clear structure was created allowing the trade union effectively to carry out its representational and organizational function. It is important to note that at the enterprise a trade-union team, which is not limited to the chairman of the trade union committee and his deputy has been created. The trade union at the enterprise represents a kind of enterprise at the enterprise.

In the structure of the trade union the leading elements are distinguished: the chairman of the trade union committee and his three deputies, trade-union activists: chairmen of shop trade-union committees and elected delegates (representatives of the labour collective), in addition to the posts of bookkeeper and lawyer - the legal adviser. The removable character of the posts of delegates and elective procedures provide circulation of workers on a regular basis, thus, practically everyone has an opportunity really to participate in meetings of the commissions of delegates, to make proposals, while at the same time it demands responsibility and initiative, and does not permit the inactivity and passivity of workers.

The rigid differentiation of functions of the trade union and specialization on the protection of the rights of workers in questions of wages, observance of working conditions and granting of social privileges and guarantees, allows it to concentrate as a whole on the control of the observance of the employer’s obligations regarding these issues. The consolidation of the image of the trade-union organization as a rights-defender is also promoted by the exclusion of the duties of a traditional «pocket trade union» on the distribution of social benefits and the organization of cultural - mass actions. Thus the trade union was not against its allocation as a separate direction of activity at the enterprise - a youth policy and the organization of an independent youth organization engaged in the organization of professional and leisure activity of young people. As a result a youth organization was created at the enterprise which is now financed not from the funds of the trade union but by the employer.

Maintenance of "direct" contact with rank-and-file members of the trade union

The major role in supporting the activity and initiative of ordinary workers is the intensive information policy of the trade union at the enterprise, consisting in carrying out of information meetings and visits of the chairman of the trade union committee and his deputies to the shops, distribution of information booklets and the inclusion of workers as elected delegates in the commissions created for the resolution of current questions.