Report on a case-study

Kemerovo territorial organization of GMPR

Novokuznetsk (Kemerovo oblast’)

Focus of research-

May - July, 2007.

Burnyshev K.V., Burnysheva T.V.

Brief characteristics of the branch

Metallurgy is a key economic branch of industry for Kemerovo oblast’. Metallurgy of Kuzbass came second to the coal industry, where pre-crisis volumes of production have been achieved. In 2006 the volume of production increased by 16% over 2005, including output of iron increased 19%, steel —18%, rolled metal —19%, coke —10%. These are the highest parameters for the last 15 years. Production of the industry made up almost 43% of the total industrial production of the region.

Tax contributions from metallurgical enterprises ton the regional budget in 2005 amounted to more than 5 billion roubles, in 2006 they were1,4 times more — over 7 billion roubles.

Over the last one and a half years the average salary has increased by 23%. Now it amounts in the metallurgical branch to 15 thousand roubles, in production of coke — over 19 thousand roubles. Investments in modernization and technical reequipment of the enterprises over the last 10 years have amounted to 55 billion roubles. In 2006 more than 12 billion roubles was allocated these purposes which made it possible to modernize and commission 26 large metallurgical units. Moreover investment of metallurgists into the social sphere of the oblast’ has amounted to about 1 billion roubles.

Today the share of Kuzbass in Russian production is more than 13% of iron and steel, 23% of high-quality rolled steel, more than 11% of aluminium and 19% of coke and 55% of ferrosilicon.

The largest metallurgical enterprises are the Western - Siberian and Novokuznetsk metallurgical combines, AO "Kuznetsk ferroalloys", AO "Novokuznetsk aluminium factory", AO "COKE".

Description of the trade-union organization

The Kemerovo territorial organization of the mining-metallurgical trade union of Russia (KTO GMPR) was created at a trade-union conference on 29.01.1991 and is a structural division of the mining-metallurgical trade union of Russia and the successor of the Kemerovo Regional Council of the iron and steel industry, operating on the basis of the Charter of the mining-metallurgical trade union of Russia.

KTO GMPR unites the primary trade-union organizations of the enterprises, establishments and organizations of the mining and metallurgical industry of Kemerovo oblast’, and also other primary trade-union organizations accepted for trade union servicing by KTO GMPR, irrespective of patterns of ownership and forms of activity (see list of primary trade union organizations at http://ktogmpr.rdtc.ru/Gmpr/perv.htm).

The supreme body of the Kemerovo territorial organization of the mining-metallurgical trade union of Russia is the conference, held once every four years.

The primary goals of the Kemerovo territorial organization of GMPR are:

– Representation and protection of the social - labour rights and interests of trade union members;

– Protection of the rights and interests of the primary trade-union organizations of the mining-metallurgical trade union of Russia and guarantees of activity determined by the Law of the Russian Federations «On trade unions, their rights and guarantees of activity»and other normative-legal acts, and acts adopted by trade-union bodies;

– Development and promotion of proposals for laws, decisions and other normative-legal acts adopted in subjects of the Russian Federation and in bodies of representative and executive authority of Kemerovo oblast’;

– Conducting collective negotiations and the conclusion of collective agreement on behalf of workers;

– Participation in settlement of collective labour disputes;

– Struggle for maintenance at enterprises of healthy and safe working conditions, ecological safety;

– Rendering charitable help to special children's establishments, carrying out of children's cultural-sports actions.

The Kemerovo organization is the third largest GMPR territorial organization in number. It includes more than 43 thousand trade union members incorporated into 17 primary organizations.

The structure of the organization changes in response to changes in the structure of the metallurgical and mining enterprises. So, for example, after the re-structuring of the Kuznetsk metallurgical combine seven subsidiary enterprises were created. KTO GMPR defended the position of the preservation of a single primary trade-union organization «Kuznetsk metallurgists»- now it has almost 14 thousand members.

In the past last year there have been trade-union conferences in primary trade-union organizations (PPO) of the Gur’evsk, Sheregesh, Tashtagol and Kaz mines, the Abagura and Mundybash concentrating factories. Then the PPOs of the Mundybash concentrating factory, Guryev and Sheregesh mines joined the PPO of OOO «Kuznetsk GOK». And since after the merger of primary organizations it accounted for about 70 percent of all workers in AO "Evrazruda", the question of renaming the PPO of OOO «Kuznetsk GOK»as the PPO of "Evrazruda»has been initiated. The closing stage of the creation of a unified trade union was the trade-union conference. 150 delegates took part in the work of the conference, representing subsidiaries of the company in Kemerovo oblast’ and the cChairmen of trade-union committees of the enterprises Abazes, Tei (Khakassia) and Irba (Krasnoyarsk region).

«The main task of trade unions is the protection of the interests of workers in industrial conditions, and we should do it all together. Trade-union active workers now have many opportunities for this, and the majority of them do not have experience. One of the main tasks of the trade-union organization we have created – in the near future is to raise the level of pay of the miners up to the wage level of the metallurgists»[1].

The combined trade union committee includes all the full-time chairmen of trade union committees of the mines and their deputies. The new structure of the trade union committee solves problems around the common strategy of the trade-union movement, and also the problem of territories. The creation of a united trade-union organization of AO "Evrazruda»promotes more effective decisions of the questions facing the trade unions, simplification of the procedure of consideration of documents and labour disputes because the factor of the geographical dissociation of mines is reduced to a minimum. Apart from this, the position of the trade-union organization is strengthened, which is especially important during discussion of the draft of the collective agreement.

«The right choice was made. Now it is very difficult to struggle for our rights alone. It is much easier to find constructive decisions together. Moreover, it is necessary to take into account the remoteness of the managerial control of the administration from the settlements. It is easier for us to work through the trade union committee of "Evrazruda", than for everyone to solve urgent problems himself. Svetlana Boeva is a real leader, personally I can not see anyone else in the position of chairman of the trade union committee at the moment. There is a lot to do ahead of us, but I am sure that we shall cope with all the problems that arise. And this will be facilitated to no small degree by the trade union committee of the primary trade-union organization of the company»[2].

Such a structure of the PPO has made it possible to unite their efforts and with the support of the KTO to achieve an increase in wages. The conference of the labour collective of AO "Evrazruda»took place in February, 2007 in Novokuznetsk. During uneasy negotiations of the trade union with the employer the question of an increase in wages became a stumbling-block. At the conference the employer gave assurances, that in February 38 million roubles would be allocated for these purposes and in addition there would be one-off payments for the last year of one thousand roubles for each worker working at the enterprises of this joint-stock company. "Evrazruda»has developed a program of optimization of expenditure and 50 percent of the money saved through its realization will go on wage increases. Thus the question of increased pay was solved.

The average coverage of trade-union membership in KTO КМПР is about 60%. "Free riders»(people which do not have a trade-union card) can be provisionally divided into three groups.

The first group are the "economists". These are people who for some reasons use any opportunity to save financial and other resources. If it is possible not to pay membership dues, not to be engaged in voluntary work and thus to enjoy some of the fruits of the work of the trade union, then why not? The benefit from economising outweighs for them the benefit from membership of the trade union.

The second group is the "protesters". As a rule, they have been trade union members in the past. These are people who have once not received what they expected from the trade union. It might be material assistance or a loan, help in a conflict with the administration or ignoring a proposal about the work of the trade union. Even an impolite, inattentive attitude of people representing the trade-union organization may push people away for ever. For such people the refusal of membership is a form of protest, a demonstration of disagreement with the policy and methods of work of some trade-union leaders, a recognition of their powerlessness to change anything.

The third group is people who simply do not see any sense in membership of the trade union. Some people prefer not to struggle for their rights and if something does not suit them, simply to leave. They are sure, that in this system it is impossible to change anything. Others strongly doubt the ability of the trade union to resolve the problems which it declares. The third do not want to keep trade-union functionaries at their own expense and to be only a milk cow, so these too do not feel in themselves any real results of its work. They also do not believe that the trade union is that force which can solve the majority of the problems facing working people.

"Free riders»do not use the trade-union lawyer, do not receive material aid, do not have access to the mutual aid fund and other organizations created by the trade union. The only thing, that the trade union does for them is the development and signing of the collective agreement.

The official position of KTO GMPR in relation to "free riders»is that it is impossible to ignore their problems and to dismiss their sensible proposals. Their problems, most likely, also concern some trade union members. Also it is necessary to allow, and moreover - to encourage their participation in the sports and cultural actions carried out by trade union. Seeing the normal, positive attitude to them, people might one day join the trade union.

KTO GMPR actively supports and organizes collective actions. So, the final third stage of the All-Russia trade-union action «For worthy pension», was carried out on April 10. In the trade union committeeе of "Evrazruda»they decided to approach this in a non-standard way, and as their action have suggested pensioners to write a letter to the president of the country V.V.Putin. Letters of pensioners were published in the trade-union newspaper «the Kuzbass Echo».

The collective agreement

The contents of enterprise collective agreements in many respects are determined by the branch tariff agreement. KTO GMPR not only supervises the contents of the collective agreement, but also actively participates in the negotiating process.

Thus, in April, 2007 negotiations of the parties in OOO «NSK Novokuznetsk»[an outsourcing company servicing equipment for the Kuznetsk Metallurgical Combine] ended. There were disagreements between the primary trade-union organization and the employer. Three of four disputed points were agreed during negotiations, but on the most important point – on pay – the parties did not come to a common opinion. Only a few hours prior to the beginning of the conference of labour collective the employer all the same accepted the proposal of the representatives of the labour collective on the most difficult question - pay. Thus, at the conference in May the sides left without a report of disagreements.

The chairman of the primary trade-union organization of «Kuznetsk metallurgists», V.M.Derbin, noted in his report that the trade union committee, which had monitored the implementation of the collective agreement through the whole accounting period, had many criticisms of the employer.

«Overall in the company wages have increased in 2006 in comparison with 2005 by 6,2 percent. At the same time purchasing power of wages has decreased. If in 2005 the ratio of average wages to the subsistence minimum was 4,3, in 2006 it was 4,1. Since January 2007 the trade-union committee has repeatedly appealed to the general director Mr. Pereverzev with the proposal to increase tariffs and salaries, but our offer was not accepted. The motivation was the absence of financial possibility. The question has been solved only with the arrival of the new head. Since April, 1 of this year tariff rates and official salaries have increased by 8,2 percent with a corresponding increase in a wage fund»[3].

In the draft of the new collective agreement the increase of monthly average wages at OOO "NSK Novokuznetsk»has been determined as 20 percent, together with a concrete schedule and size of increase of wages in 2007: the second quarter - 8,2 percent, the third quarter - 5,5 percent, the fourth quarter - 5,5 percent.

Apart from this, in the draft of the collective agreement:

- it is established that the constant component of wages cannot be less than 60 percent;