Ford Motor Company had a strike a few days ago in Vsevolozhsk, Russia, causing over a million dollar loss in production. The foreign car company had workers walk November 22 in St. Petersburg as well.
Since the walk off Toyota and Nissan are building near Vsevolzhsk. It has been called the Detroit of Russia, with an amazing turn around in car sales.
The upcoming strike supports the fact that this post-Soviet country has a tightened economy from a few years ago. These plants have made wages higher; they have gone from 15-20 percent increase and are demanding 40 percent now.
Around average pay is about 880 dollars, 21,500 rubles in Russia. People expect good pay for good work. Russia has had a recent population decrease and with limited workers and economic growth, it has killed available jobs.
Toyota’s move has offered jobs alongside Nissan for experienced workers. Since Ford’s need for money, other companies have jumped on the bandwagon for increases as well.
Vsevolozhsk is almost a slummy neighborhood with “concrete apartment blocks” and the unemployment line empty. Ford still states that their wages are among the highest and the average is around 530 dollars a month, 13,000 rubles in Russia.
The company feels they can help but the wages the workers want are too hard to achieve. Also the workers want shorter hours, overtime triple to that of base pay (which is twice now), and “formula indexing wages” for better standards of living. Only time will tell as millions are being negotiated.
http://www.nytimes.com/2007/12/08/business/worldbusiness/08auto-web.html?ref=worldbusiness
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