Post-Socialist Trade Unions, Low Pay and Decent Work
The policy and practice of government and trade unions at the federal level in relation to low wages and poor working conditions
Federal Report
(Moscow)
Olga Vinokourova
Evgeniya Plotnikova
Government policy concerning low pay and bad working conditions
The general direction of the government
The strategy of the government at the present stage concerning low pay and bad working conditions should be considered in the context of the general direction of social and economic policy of the government of the Russian Federation adopted for implementation in the medium-term perspective (2006-2008). The development of human capital and improvement of the quality of a life of Russians is declared to be its priority orientation. Over the next three years the substantive provisions of the strategy of governmental policy are defined in the Message of the President[1], and are developed in more detail in the Program of Social and Economic Development of the Russian Federation for 2006-2008.[2] Apart from this, key principles of regulation of pay are presented in a number of corresponding documents (see appendix).[3]
It is important to note that the current policy of the government in the sphere of wages and working conditions is formed in the context of administrative reform, reform in the field of differentiation of powers between levels of government, reform of federal relations, and also re-structuring of interbudgetary relations.
The basic direction of state policy in the immediate future is expressed in the following citation: «increase of well-being of the population and reduction of poverty require the creation of an effective economic system based on a reduction of superfluous intervention of the state in the activity of economic subjects and an increase in the competitiveness of the individual, state institutions and business».[4]
Two main blocks constitute the plan of the government concerning questions of wages: increase of incomes of state employees and re-structuring of the budgetary sector.[5]. Analysis of the preliminary results of the realization of the Message of the president was submitted in the report of the Minister of economic development and trade[6] and in the report of the head of the Federal work and employment service.[7]
The general vector of governmental policy can be characterized from two different perspectives. On the one hand, first, the development of a precise program of increasing the incomes of state employees[8] testifies to the clear priority given by the government to increasing the level of wages of underpaid workers. This increase in the level and quality of a life testifies to a strongly pronounced social orientation of government policy. Second, the transfer of some powers to subjects of the Federation and local government institutions testifies to the aspiration to create flexible mechanisms of regulation of the level of wages which would reflect the specificity of regions, branches, qualifications and would take into account the results of work and length of work experience, which would largely reduce the determination of pay to regulation through collective agreements. And relying to a lesser extent on less "mobile" in this sense (and often not implemented) normative reference points.
Taking the above into account, in general, the course adopted by the government can be characterized as fairly democratic, aimed at the transition to "market" regulation and creation of conditions for favorable economic development in the country where the influence of administrative and bureaucratic barriers is gradually reduced to the minimum, and priority emphasis is put on the role of the market as the basic regulator of social and economic policy in the country.
On the other hand, the general course of the government can be also considered in a less rosy prospect. First, the stress of the government only on the gradual approach of the minimum wage (MW) to the subsistence minimum (SM) is more likely characterized as a policy of holding down the level of the MW (today the latter is less than 30 % of the SM). Second, the re-structuring of the public sector, expressed in the transition to branch payment systems, and the assignment to subjects of the Russian Federation of the powers to set the level of pay, in reality signifies the aspiration of the government to redefine the circle of those "responsible" for low wages in the country, i.e. having reduced the degree of its own material and moral responsibility for the resolution of questions of low wages and bad working conditions. Concerning the latter, nevertheless, the government has kept stronger supervisory positions that are expressed in a number of the regulations assigning special powers to the government in monitoring questions of health and safety.
Thus the responsibility for increase in the incomes of state employees is redistributed among a circle of subjects: regional authorities, organizations of the social sphere, non-state organizations. The state rather occupies the position of a regulator and controller of the execution of adopted decisions. Evidence of this is a number of statements in the Message of the President.[9] Such a redistribution of responsibility is located in the framework of the general direction of government policy expressed in the following: «superfluous intervention of the state deforms competition and puts off the main task – construction of an effective economy».
The basic directions of policy of the government: the role of legislative, tax and collective agreement regulation of wages
The basic actions of the government in the field of normative regulation
· Amendments to the Labour code[10];
· increase in the Minimum Wage (MW)[11];
· attempts to abolish of the Unified tariff scale for public sector pay[12];
· introduction of branch systems of payment[13];
· emphasis on the regulation of the level of wages by collective agreements and reorientation of the role of the state from social guarantor to the basic controller, on the one hand, and to social partner, on the another[14].
The basic actions of the government in the field of tax and budgetary regulation of wages
· development of the strategic document «On budgetary policy for 2006 » whose main provisions as a whole continue the direction of the government towards the delegation of powers and responsibility to the level of subjects of the Russian Federation[15];
· ‘optimization’ of spending obligations of the government included in the federal budget, that actually means their reduction and a careful estimation of categories of spending from the federal budget;
· support for a flat scale of taxation[16].
Concerning questions of working conditions[17] it is necessary to note the maintenance of the general orientation of governmental policy, at the same time as the preservation of stricter administrative - supervising positions.
· additional clause 216 entered into the Labour code "State expert appraisal of working conditions ";
· in connection with the carrying out of administrative reform, the powers and the order of activity of the federal labour inspectorate, its interaction with other state bodies and institutions of local government, the order of investigation and the accounting of accidents have been specified;
· with a view to ensuring the observance of the requirements of health and safety and monitoring their fulfilment, to each employer carrying out industrial activity and having more than 50 workers, is instructed to create a health and safety department or to appoint a health and safety officer who has the appropriate training or operational experience in this area. previously clause 217 only established such requirements for employers having more than 100 workers;
· according to the amendment to clause 226, the amount of money that the employer is required to spend on actions to improve working conditions and health and safety (except for state unitary enterprises and federal establishments) has been increased from 0,1% to 0,2% of total production costs (labour and services).
Delegation by the government of functions of setting wages to subjects of the Russian Federation[18]
The common position of the government concerning distribution of responsibility on questions of wages and working conditions is expressed in the optimization of the functions of executive authorities and provides for:
· the elimination of inefficient state intervention in the economy by the revoking of superfluous functions from laws and other normative legal acts of the Russian Federation and subjects of the Russian Federation;
· improvement of the system of monitoring and supervision, licensing, accreditation, registration, carrying out of state expert appraisals and issue of various sanctions and coordination[19]
Since 2005 a number of federal laws give the right to government bodies of subjects of the Russian Federation independently to determine the size and conditions of pay of workers of subordinated official bodies. And to institutions of local government, to determine the size and conditions of pay of workers of municipal enterprises and establishments.
· The government of the Russian Federation establishes the size and conditions of pay only of workers of federal official bodies;
· Distribution of responsibility between the center and regions develops in the context of the current administrative reform within the framework of which the Ministry of Labor has been abolished and the Federal Labour and Employment Service Rostrud) has been created.
Interaction of the government and FNPR on questions of wages and working conditions
Federal legislative authorities
The involvement of FNPR in the formation of governmental policy concerning low wages and working conditions occurs at the level of participation of the trade-union structure in the work of federal legislative authorities and sessions of the Russian Tripartite Commission.
The basic questions in the decision of which the trade-union is involved are:
· introduction of amendments to the existing Labour Code[20];
· in work on draft federal laws concerning the rights and interests of trade unions and directly connected with the implementation of items of the General agreement between the all-Russian associations of trade unions, the all-Russian associations of employers and the Government of the Russian Federation for 2005-2007;
· improvement of legislation on trade unions is traditionally one of the priority directions of participation FNPR in the legislative process[21].
The opinion of FNPR has been taken into account by the government in questions:
· preservation of the Unified Tariff Scale and Minimum Wage, as the base parameters for the calculation of wages, as a national guarantee and as the major social standard[22];
· introduction of more strict measures in relation to employers who have wage debts and for the observance of acceptable working conditions.
The transition of the Government to new methods of influence on development, on the one hand, presupposes the more active and effective activity of the regional authorities – motivation and stimulation of their development, at the same time transfer of responsibility for real social policy and the level of social development to regions is carried out in conditions in which they do not have a sufficiently stable financial base.
The reconciliation of the pretty contradictory interpretations of governmental policy concerning low wages and working conditions can be seen through the analysis of the first results of completed projects which it will be possible to judge in the immediate future as some documents have come into force during 2005 - 2006[23].
FNPR strategy and discussion of policy at federal and branch levels
Increase of the level of wages and improvement of working conditions of members of the trade unions is one of the key tasks in the activity of FNPR. FNPR Chairman M. Shmakov in his statement at the meeting of the FNPR General Council which took place on March, 22, 2006, emphasized: « theme of decent work which is inconceivable without decent wages, is one of the most painful and of most vital importance for hired workers, for trade unions and consequently will always stand on the agenda»[24].
A feature of the present period in the activity of FNPR is the necessity to work in conditions in which administrative reform is being carried out, during the redistribution of powers between the federal center and regions, in view of the government program for the social and economic development of Russia for 2006-2008 (the2008 program), which includes four national projects.
Estimating the activity of the government on the reform of the national economy, trade-union leaders note the negative sides of the reforms being carried out. Special concern is expressed by FNPR over the following provisions[25]:
· the current reorientation of the role of the state from social guarantor to the basic controller and social partner (see section « the Governmental policy ») causes serious pessimism (reactions from quiet concern to extreme indignation). In the opinion of leaders of the trade unions, administrative reform on the contrary is promoting a withdrawal of the state from social cooperation[26].
· In connection with the coming into force of Federal Law № 122-ФЗ, transferring responsibility for all questions of calculation of wages to the subjects of the Russian Federation and municipal authorities, the uniform method of calculation of wages for all establishments of the budgetary sphere on the basis of the Unified Tariff Scale has been liquidated.
· In the past the Government has explained the extreme inadequacy of spending of budgetary resources on social needs by the deficit of the federal budget. However, now for the first year in the country an annual budget has been adopted with a surplus, but still the social direction is financed insufficiently.
· The Ministry of Labour has been abolished, in the opinion of leaders of the trade union, with which the Government of the Russian Federation «has lost interest» in questions of development of labour relations, the organization of labour and wages outside its budgetary powers.
· Also, in the opinion of leaders of branch trade unions, the whole system of health and safety has been destroyed: state target programs in this area have not been adopted, actions on health and safety are practically not financed and it is presumed that questions of health and safety should be solved at the work place, by means of negotiations with employers.
· The tariff system of pay has actually been excluded from the general system of regulation of wages instead of being adapted to new conditions. At the federal level FNPR continues to negotiate on this theme.
Taking into account the situation that has developed, FNPR tries to develop actions adequate to the time, in struggle for decent wages and decent working conditions of members of the trade unions. The basic methods of struggle for the trade unions remain collective negotiations and the conclusion of collective agreements and agreements at various levels and horizontal spaces[27], and also the improvement of legislation, both at the federal and regional levels, which in modern conditions is most important. At the federal level the main thing for FNPR is work within the framework of the Russian Tripartite Commission on the regulation of social-labour relations.