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"AvtoVaz" within Frameworks of Anti-Recessionary Program Will Axe One in Four

"AvtoVaz" within Frameworks of Anti-Recessionary Program Will  Axe One in Four
29.09.2009

JSC "AvtoVaz" within frameworks of anti-recessionary program plans to axe no more than 27,6 thousand workers, as a result target number of employees of the enterprise will make about 75 thousand people, press-service of "AvtoVaz" informs following the results of a meeting of the president of the company with the leader of trade union.

 

According to the message, the scheme of axe of the staff of "AvtoVaz" was presented by trade union. The quantity of employees which would be axed is resulted taking into account 5 thousand people, the order to axe them was signed by the president of JSC "AvtoVaz" Igor Komarov on September, 14th.

 

It is informed that 13 thousand pensioners, about 5,5 thousand workers of prepension age and 9,1 thousand workers of able-bodied age for whom the plan of their further employment has been already developed are selected for redundancy. According to calculations of "AvtoVaz", to the beginning of 2012 6 thousand from them will be again demanded on motorcar giant to work on the new line which project has been accepted by "AvtoVaz" together with Renault. Till that time people will be proposed temporal workplaces in Tolyatti, the work on building of objects of special economic zone, re-training within 5-6 months with grant payment. Further from three to five thousand people are planned to be occupied at enterprises of Special Economic Zone.

"AvtoVaz" guarantees to those who will retire in September-October this year all payments in full. Workers of prepension age have real possibility to get both state and corporate pension, is marked in the message.

At present 102 thousand people work on "AvtoVaz".

"Such collective cannot provide efficiency and self-support of production", - is said in the message.

At a meeting of Komarova with the heads of the trade-union anti-recessionary program which provides production of 500 thousand cars annually was discussed. Enterprise works in one turn, capacities are occupied on 65%.

It was informed earlier that anti-recessionary program of "AvtoVaz" being realised since May, 21st, in the first half of 2009 allowed enterprise to lower losses on 3,7 billion roubles. The dead loss of "AvtoVaz" on RSA following the results of the first half of 2009 made 14,2 billion roubles against net profit of 1,49 billion roubles in the first half of 2008.

"AvtoVaz" - the largest Russian manufacturer of cars. According to Association of the European business, for the first half of this year "AvtoVaz" reduced sales of cars and commercial transport by 44% - to 179,9 thousand cars.


 

From editorial board: Naturally, there is a question - what kind of trade union is it, if it allows to axe one in four worker? We understand perfectly well that this trade union - the one from Federation of Independent Trade Unions of Russia, where the head of trade union actually carries out the function of the deputy director on social problems at the factory and in no way the role of the working leader. The salary of the main trade union member is estimated at hundreds thousand roubles and not at thousands around living wage as ordinary hard workers.

 

A question with alternative trade union "Unity" which head Peter Zolotaryov acted as initiator of sensational meeting on August, 6th arises - one could remember that at that meeting it was promised that if the requirements of workers would not be executed, people would organize new, more scale action in the beginning of September. However either in the beginning, or in the end of a month none action followed, though not only the requirements of workers (absurd enough) were satisfied but the prospect of mass axe became real. Zolotaryov acted yesterday on "Echo of Moscow" with criticism of anti-recessionary measures of administration of the enterprise and that's all.

To begin with measures - they are brutal. Factory administration long enough did a snow-job both on the staff and society saying that it had the plan to eat cake and have it, multi-billion help was received from the government and even the governor of the Samara region would return one and a half billion got during the period of management of "AvtoVaz" into the booking office - but all it appeared a smoke screen. Nobody will return anything, on the contrary, they will even  receive more, while people will be thrown out in to the street.

What does it mean to throw out 13 thousand pensioners? It means to doom them to half-starved existence without any type of additional earnings. It's impossible to earn anything additionally in Tolyatti. From 5,5 thousand dismissed workers of prepension age only small percent will retire in September-October, others will appear in even worst position, than pensioners - without any means of support in general and with the prospect of minimum pension. I don't want to talk about it but from these 18,5 thousand unfortunate no more than a half have a chance to overgo crisis, others, on statistics, will die within year-two.

The leader of trade union "Unity" Peter Zolotaryov told quite in detail about 9,5 thousand sent to carry out "public works". As he said, public works which were mentioned were badly organized to involve former employees of the factory in special economic zone, it is necessary to retrain them. It, in its turn, will lead to loss of qualification and will complicate their returning to factory in two years.

However, we waited for more active position of the head of independent trade union - there are enough experts besides him.

 

The question is - whether it's possible to rescue AvtoVaz without resorting to mass axes? Certainly yes, if the state - the basic proprietor of the enterprise - was interested in it. If to take a share of payroll of workers of AvtoVaz in the general structure of expenses, it makes approximately 3-4 percent - salaries of workers of the enterprise are insignificant. At "sawing" of state support in 25 billion just a little went to pay off delays and other payments to the workers, the rest as though went for paying the debts. After that the salary of workers was lowered to a level of living wage which in the Samara region makes about 6 thousand roubles. That is monthly salary of 100 thousand workers is about 600 million roubles. That is 3,5 billion roubles are required to keep life and health to 27 thousand dismissed for two years. It is only 2 times more, than a bonus received by governor Artjakov from the factory during his stay as its director.

Now about measures. The only real way to rescue people - participation of working collective in production management. "Uniform Requirements of Labour Collectives during Strikes and Protest Actions" (which, by the way, recently received rather positive estimation also from the leader of "Social Trade Union" S.Hramov) assume partnership (blocking package) of collective in production management through Council of Workers. Professors of the Moscow State University A.Buzgalin and A.Kolganov just acted with similar positions: "To carry out control over realisation of measures on realisation of social obligations by business is necessary to develop system of participation of workers in control and management at a level of corporations and enterprises. It is necessary to give legislatively to labour collectives of the enterprises the right of control over industrial, economic and financial activity of proprietors and administration of enterprises. To render assistance to labour collectives in organisation and carrying out of this work to create regional (city, district, regional) councils of labour collectives".

There are also more radical requirements assuming total control of collective over production - E.Samojlov wrote about it in detail referring to the American experience of system ESOP: "In the USA first collective enterprises appeared in 20s years on the Pacific coast - plywood factories created by workers on their savings and means provided in debt by local authorities. Growth of a number of such enterprises in the USA began in 70s years in connection with economic recession. Workers and white collars start redeeming enterprises where they worked in connection with the threat of bankruptcy of those companies. In 1979 Committee of the USA carried out selective investigation of 75 enterprises which passed into ownership of collectives. It was stated in the report that after passing of enterprises into the ownership of collectives production growth averaged 25% and profits - 15%. For example, in 1975 450 workers of machine-tool constructing factory "South and Lays" bought that enterprise when it was on the verge of bankruptcy. Within the first year labour productivity at the factory increased by 25%, the same year enterprise yielding earlier only losses gave 9% of profit. In 1982 it was planned on one of the largest in the USA steel foundries in Wayrton, the state of West Virginia that 5,5 thousand workers from 7 thousand should be axed because the enterprise did not meet competition with foreign producers. As a result joint - of the collective, trade union and city authority - decision on the redemption of the enterprise by collective was made. A year later factory received 81 million dollars of profit and soon became one of the most profitable enterprises of the branch. Collective enterprises in the USA are more profitable on average on 50%, than private ones, they have mid-annual gain of productivity twice above, such enterprises less often go bankrupt.

So, everything is clear to all but for title defenders of interests of workers. That is annoyingly, certainly.

Аnatoly Baranov

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