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The ILO SRO-Budapest Bulletin > Newsletter 1-95
Russian Trade Unions Discuss Privatization Policy and Strategy

ILO Bureau for Workers' Activities (ACTRAV) and CEET organized a conference for Russian trade unions in Moscow on February 7-9 on "Privatisation - Trade Union Policy and Strategies". Over 150 senior leaders of trade unions participated, together with about 20 international trade unionists.

Opening the conference, Direcor of ACTRAV Giuseppe Querenghi wished that the participants would identify the major areas in which their organizations and the ILO can cooperate. He stressed the importance of pluralism and representativity in the trade union movement. Pluralism can be utilised as a positive resource and a factor of strength. Democratically anchored representa-tivity is also paramount in strengthening trade unions.

Sergei Khramov President of Sotsprof addressing the conferenceThe existing levels of membership should be guarded and maintained in the privatised enterprises, Querenghi stated. The privatisation process should be carried out in the framework of the fundamental provisions of ILO standards concerning workers? rights, collective bargaining, social protection, workers' protection in the case of insolvency of enterprises and in the case of termination of employment. Negative consequences of privatization on the level and quality of employment should be avoided. Privatization should lead to equitable growth, increased employment, improved standard of living and a real freedom of choice in various sectors of economy.

Rafik Batkaev, Deputy Minister of Labour appraised the achievements of tripartite cooperation and Social Dialogue. He said that the contacts between different ministries and trade unions have improved. A more consensus approach to the central topics has emerged in the tripartite commission.

Mikhail Shmakov, President of the Federation of Independent Trade Unions of Russia (FNPR) welcomed the participants on behalf of the Russian trade unionists. He summarised the reform objectives set by the government and expectations of trade unions. According to Shmakov, few of them have come true so far. Outcomes of the process have been mainly negative.

Werner Sengenberger stressed that ripartism requires strong and independent partners. Each of the groups - the government, trade unions and employers° organisations - has to play its proper role. For trade unions, it is not sufficient to worry about their own situation. Without a representative counterpart, they are not able to represent their members° interests effectively. The employers° organisations should be developed into fully functioning bodies. The government should not act as an employer without organising itself separately for this function.

Alexander Sergeyev, President of the Independent Mine Workers° Union (NKP) blamed the management for bringing the Russian mines into their current un-profitable state. According to Sergeyev, managers have become the real owners which again has led to corruption and abuse of workers.

Most Russian trade unionists wanted that workers acquire a bigger share of ownership. They considered worker ownership as the best way to guarantee workers° wage level, their rights and social services. President of the Union of Mining and Metallurgical Workers Boris Misnik believed that competitiveness is going to be obtained through lowering workers° standards of living in those enterprises where the controlling interest has been bought by people who are not employed by the enterprise.

Speakers and participants included representatives of a full range of Russian trade unions, as well as representatives of the international trade union organizations that are active in Russia, including ICFTU, PSI for public services, FIET for private services and IMF for metal industry. Also colleagues from Czech, German, Hungarian, British and Finnish trade unions contributed. A comprehensive report has been prepared in English and Russian. Summarizing the conference debate, CEET Workers' Specialist Pekka Aro said that privatization should be carried out so that it enhances workers' rights, collective bargaining, participation, equitable growth and a real freedom of choice. Trade unions face their biggest challenge in defending their members and sustaining their own influence. Unions must become stronger in the private enterprises.

Giuseppe Querenghi fielding a question at the lively press conference. He is flanked by Kari Tapiola (left) and Werner Sengenberger and Stephen Pursey (right)Giuseppe Querenghi closed the con-ference confirming ILO's commitment to continued cooperation with Russian and CIS trade unions through training events, advisory services, publications, etc.

The globalisation of world economy calls for universally recognized rules of the game more than ever. In labour isues, those rules are the ILO international standards. Those who think that there is a contradiction between a market economy and regulations are totally wrong. Even the basic element of a market economy - competition - needs rules in a number of fields to be preserved.

A tripartite approach in which all the relevant dimensions are taken into account is the best context to foster privatisation and the balance between the private and public sectors, and to use privatisation as an opportunity to promote economic democracy and workers° participation. Privatisation alone does not bring an automatic increase in efficiency and competitiveness. It should be considered in the context of a wider economic restructuring.

Vladimir Kolmogorov , Vice- President of the Russian Union of Industrialists and Enterprenuers, discusses with Mikhail Shmakov, President of Independent trade unions of Russia, in the ILO workshop in February in MoscowThe ILO will support Russian trade unions° search for new approaches and facilitate their access to international information. Fundamentally, however, Russian solutions must be developed in Russia. No country has gone through the kind of development that Russia is undergoing now. A commitment to long term two-way cooperation is given by ILO. PA.

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Updated by EH. Approved by ML. Last update: 2 December 2008