No Assembly Required (Alexei Etmanov on the Russian Car Industry)

Semi Knockdown Disassembly
Why are Russian automotive giants dreaming of shrinking?
Irina Smirnova | Leningrad Region
October 9, 2015
Trud

Employees leave the AvtoVAZ factory in Togliatti, Russia, on Tuesday, Nov. 17, 2009. Photographer: Alexander Zemlianichenko Jr/Bloomberg
Employees leave the AvtoVAZ factory in Togliatti, Russia, on Tuesday, Nov. 17, 2009. Photographer: Alexander Zemlianichenko Jr/Bloomberg

 An independent workers union has held a rally protesting layoffs at AvtoVAZ, which is planning to cut 15,000 of its 49,000 workers in the near future. No one has officially voiced these figures, but trade unionists managed to sneak a peak at the lists of “superfluous” people. Layoffs are also anticipated at two subsidiaries, AvtoVAZagregat and Volga Machinery Plant (VMZ). Until recently, 2,000 people were employed at the first plant, which is a major supplier of car seats. Now the plant is undergoing bankruptcy proceedings, and its workers have not been paid for three months. The prosecutor’s office has filed 800 lawsuits to recover back pay, and activists at the plant have gone on hunger strike, but what is the point?

AvtoVAZ had conducted mass layoffs last year. 12,000 people left the company then. AvtoVAZ’s president, Bo Andersson, claimed the company was not planning mass layoffs of workers in 2015, but would part only with 1,100 apparatchiks. But workers anticipate a new round of layoffs, and trade union activist Vyacheslav Shepelyov has been fired for taking part in the hunger strike.

AvtoVAZ is not simply a big factory, but an indicator of the situation in Russian industry. Strategic decisions regarding the auto-manufacturing giant are made at the government level. And here, it seems, a social explosion is brewing.

“Who told you about an explosion? Those are tall tales!” says Alexei Etmanov, chair of the Interregional Trade Union Workers Association (ITUWA) and a deputy in the Leningrad Regional Legislative Assembly.

Alexander Etmanov
Alexander Etmanov

As always, Etmanov does not mince his words.

“A thousand people came out and made a little racket, and what of it? Hunger strikes? Even if everyone starves to death, people will still get laid off. They have got used to spoon-feeding a toothless trade union, so now they can take it on the chin.”

Etmanov believes that AvtoVAZ inevitably faces a restructuring under which its non-core assets will be cut loose. But layoffs can and should be resisted.

“Look at Air France. The company management there was nearly torn to shreds: they had to run to escape from enraged employees. As a result, management came to the opinion that layoffs might not be so inevitable, that they were negotiable. But management grows fat on our problems in Russia. AvtoVAZ employees are not even willing to join a [militant] trade union. How will they defend themselves? The people gobble up anything the boss brings them in his beak.”

But isn’t AvtoVAZ part of your trade union?

“They are an entire eighty ITUWA members among a workforce of 49,000. We are not a mass force there capable of protecting workers. The workers will not be able to achieve anything for themselves within the official trade union. Alas! They will go to work as janitors, leave the country for a better life or drink themselves to death. Our people have no experience of fighting for their own interests. They are intimidated and broken. I blame myself as well. I have done little to ensure that working people show more solidarity. That is our main concern: to teach them solidarity. We live under the harshest capitalism, and it is simply naïve to expect mercy from above.”

Although, as Etmanov stresses, protesting is not the only way to fight for jobs.

“For example, the government of Leningrad Region has passed a law reducing Ford’s property tax by 50%, which amounts to 160 million rubles. For a small plant, that is substantial assistance. The federal government, of course, has greater means of this kind than local authorities. The ITUWA is preparing a package of measures to save the Russian car industry, measures that were applied in Brazil, Germany, and other countries during the 2008 crisis. Although certain State Duma deputies shout, ‘Why help American automotive giants?’ They don’t understand that [companies like Ford and Nissan] have long become part of the Russian automotive industry. The plants pay taxes in the Russian Federation, and our people work there.”

But after the collapse of the ruble aren’t Russian-made cars more competitive? They are now cheaper than their foreign counterparts.

“In fact, they are not cheaper,” objects Etmanov. “The difference in the currency exchange rate devoured the entire profit margin, since AvtoVAZ imports most of its parts from abroad because Russian suppliers cannot provide the high-quality product that a normal car industry needs. Car production in Russia is unprofitable; there is no margin. And the question of the day is whether there are enough of these companies that adhere to quality standards and do not want to manufacture bad cars. Now they are working at a loss.”

Translated by the Russian Reader. Images courtesy of the Moscow Times and Soviet Russia Today
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Dmitry Kozhnev: Anyone Defending Their Rights Is Branded a Fifth Columnist and Agent of the State Department

“Anyone who tries to defend their rights is a fifth columnist and agent of the State Department”
A trade union leader talks about pressure from the security forces and badgering from the National Liberation Movement
Darina Shevchenko
March 24, 2015
Yod

The automotive industry has been laying off employees around the country. Since the beginning of the year, the demand for cars has fallen 20-30%. Management has forced workers to quit, shift to part-time work or agree to significant pay cuts. The Interregional Trade Union Workers Association (ITUWA) has countered with strikes and pickets. Center “E” (Center for Extremism Prevention) has responded by taking measures against union members. Last weekend, Center “E” officers detained members of the ITUWA Kaluga local. They demanded that the activists confess to working for western secret services and acting to destabilize the situation in Russia. Dmitry Kozhnev, leader of the ITUWA Kaluga local, told Yod that the trade union has long had a difficult relationship with the local security forces, and more recently, members of the National Liberation Movement (NOD) have targeted workers for persecution.

The ITUWA was founded in 2006 by members of trade union organizations from the Ford plant in the Petersburg suburb of Vsevolozhsk and the AvtoVAZ plant in Togliatti.*** The trade union unites workers from more than fifteen companies. Its chair, Alexei Etmanov, was elected to the legislative assembly of Leningrad Region in 2011. The ITUWA’s motto is “Don’t cry, organize!”

On what grounds were trade union members taken in by Center “E” over the weekend?

Under the pretext that a robber who had hit a passerby with a bottle and stolen something had dashed into the room where we had gathered for a routine meeting. About forty security forces officers arrived. They detained fifteen of us, took us to a police station, and asked us about our activities, what protests we were planning. They told us that, under the guise of defending workers’ rights, we were spying for the US, destabilizing the regime, and engaging in provocations. We hear this song from Center “E” constantly. Apparently, law enforcement officers find it difficult to believe that an organization can be independent and act on its own.

Have Center “E” and the FSB showed interest in your activity before?

Our union emerged in 2008. During this time we have become stronger and our actions have gotten results. In [2012], a strike at the Benteler Automotive plant led to the workers signing a collective agreement that we drafted. We got the bonus included in the salary and a ban on duties other than those stipulated in the contract. At the Volkswagen plant we forced management to increase salaries by almost four times, from seven to thirty thousand rubles a month.

rep_242_016
Dmitry Kozhnev (left) on the picket line during the 2012 strike at Benteler Automotive

In the summer of 2013, Volkswagen management was changing equipment. They wanted to let the workers go for a week, and then have them work off the missed days on weekends. By law, management has a right to do this, but plant workers opposed it. They were furious at the prospect of working weekends in the summer, when every day off is worth its weight in gold. We told management they should pay the missed week as down time, while the workers would go to work voluntarily and at double the pay. Management stood their ground, and then we began to prepare for a strike. By the way, according to Russian law, it is almost impossible to strike. Management must be notified seven days in advance. During this time, management can succeed in appealing the strike in court and then the strike cannot start on time. So we start the strike and notify management simultaneously. That is what we did back then at Volkswagen. We also picketed dealerships and informed consumers that we could not vouch for the quality of the cars assembled during the strike. We got what wanted.

Now our trade union has influence at different plants and can exercise control over the situation. After the number of union members went over four hundred at Volkswagen in 2009, and we began doing street protests, Center “E” got on our case.

And as soon as relations between workers and management would heat up, Center “E” would show up and put pressure on us, including arrests, harassment, and surveillance. But pressure and persecution have only strengthened the organization.

Give an example of persecution by Center “E”.

As soon as our work started to produce results, we began getting summons to Center “E” and were threatened with criminal prosecution. Once they blocked my car on the street and took me down to the station. They tried to catch several comrades with allegedly faked sick leave forms, threaten to take them to court, and force them to inform on trade union leaders. One worker and trade union member had a weapon planted on him. He got into a car with security officials. They handed him a bundle, said it contained a gun used to commit a crime, and now he would either rat on his colleagues or be convicted for the crime. The comrade refused to be an informant and took the story public big time, and they left him alone. Another comrade of ours was press-ganged into the army. Because of a serious leg injury, the guy had been declared unfit for military service. During a routine medical exam at the draft board, he was suddenly declared healthy. He insisted on an independent medical examination. The guy was then abducted on the street and sent to the army. He served his term, and came back angry and able to use weapons. And he is working in the trade union again. The ranks of our trade union’s foes continue to swell. Recently, the National Liberation Movement (NOD) joined them.

How come? You don’t participate in opposition rallies, do you?

NOD considers us Banderites because anarchists carrying flags with anarchist symbols attend our rallies. They think that since the Banderites have black-and-red flags, and anarchists use the same colors, they are in cahoots. It is ridiculous, of course. It is useless to ask the NODites questions; it is better not to talk with these cartoon characters. Anatoly Artamonov, governor of Kaluga Region, has also called us agents of the West. And this is a guy who has built his region’s economy on cooperation with companies from NATO countries and has awards from NATO countries! This is the trend now. Anyone who defends their rights is a fifth columnist and agent of the State Department.

The security forces’ interest in you has to do with the crisis in the automotive industry and presumed activism on the part of trade unions. At what plants is the situation the most tense?

It is easier to say which plants have no problems: the plants that produce luxury-class cars. They are the only ones where everything is all right. All the other plants are undergoing layoffs, which are hidden for the time being. Workers are being persuaded to quit voluntarily, to accept part-time schedules and pay cuts. But I think the crisis will continue, and the actions of management will become harsher. But we will vigorously defend the interests of workers.

Translated by the Russian Reader. Photo courtesy of Russian Reporter

*** Editor’s Note. The ITUWA was originally known as the Interregional Trade Union of Autoworkers (ITUA). It changed its name in 2013, although the union’s well-known abbreviation in Russian (MPRA) has remained the same.