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- U.S. DEPARTMENT OF STATE
- RUSSIA: 1994 COUNTRY REPORT ON ECONOMIC POLICY AND TRADE PRACTICES
- BUREAU OF ECONOMIC AND BUSINESS AFFAIRS
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- b. The Right to Organize and Bargain Collectively
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- Collective bargaining is protected by Russian law but is
- not practiced widely in Russia. Many enterprises refuse to
- negotiate collective bargaining agreements, and many agreements
- are not the product of genuine collective bargaining, given the
- subordinate relationship of official unions to enterprise
- management. Free trade unions have been more aggressive in
- demanding genuine collective bargaining. Enforcing management
- compliance with contracts remains problematic. In several
- sectors of the economy, wages, benefits and general conditions
- of work are established by industry-wide tariff agreements
- reached in talks between trade unions, management and
- government. This arrangement reinforces the traditional
- tendency of Russian workers to expect the government to
- establish wages and other workplace conditions.
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- c. Prohibition of Forced Labor
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- Russian law prohibits compulsory labor, and there were no
- reports of its occurrence in 1994.
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- d. Minimum Age for Employment of Children
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- The Labor Code does not permit the regular employment of
- children under the age of 16. In certain cases, children aged
- 14 and 15 may work in intern or apprenticeship programs. The
- Labor Code regulates the working conditions of children under
- the age of 18, including prohibiting dangerous work and
- nighttime and overtime work. Government enforcement is largely
- ineffective, and there is anecdotal evidence to suggest that
- the protections for children under 18 are violated. The
- responsibility for the protection of children at work is shared
- by the Labor Ministry and the Ministry for Social Protection.
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- e. Acceptable Conditions of Work
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- The Russian legislature sets the minimum wage, which
- applies to all workers. The minimum wage in Russia ranged
- between $5 and $10 per month during the second half of 1994,
- but the average salary was about $100. The primary purpose of
- the minimum wage is to serve as a baseline for computing
- benefits, pensions and some wages scales. For example, the
- wage scale for government workers, who are among the
- lowest-paid in Russia, is based on a multiple of the minimum
- wage. The labor code provides for a standard workweek of 40
- hours, which includes at least one 24-hour rest period, premium
- pay for overtime or holiday work, and minimum conditions of
- workplace safety and worker health. However, these standards
- are widely ignored and government enforcement of safety and
- health regulations is inadequate. Industrial deaths and
- accidents continue to rise dramatically in Russia. The Labor
- Ministry reported that 30 Russian workers die and another 50
- are injured each day as a result of workplace accidents.
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- f. Rights in Sectors with U.S. Investment
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- In the petroleum, food and telecommunications industries
- where U.S. investment is significant, observance of worker
- rights does not differ markedly from other sectors. The
- petroleum and telecommunications sectors are highly unionized,
- but the official unions predominate. The food sector is less
- unionized but working conditions there are no worse than
- elsewhere.
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- Extent of U.S. Investment in Selected Industries.--U.S. Direct
- Investment Position Abroad on an Historical Cost Basis--1993
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- (Millions of U.S. dollars)
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- Category Amount
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- Petroleum 227
- Total Manufacturing -3
- Food & Kindred Products -1
- Chemicals and Allied Products 0
- Metals, Primary & Fabricated 0
- Machinery, except Electrical (D)
- Electric & Electronic Equipment 0
- Transportation Equipment 0
- Other Manufacturing (D)
- Wholesale Trade 2
- Banking 0
- Finance/Insurance/Real Estate 0
- Services 3
- Other Industries (*)
- TOTAL ALL INDUSTRIES 230
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- (D) Suppressed to avoid disclosing data of individual companies
- (*) Less than $500,000
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- Source: U.S. Department of Commerce, Bureau of Economic
- Analysis
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