http://www.themoscowtimes.com/article/1328/42/379029.htm

Beyond Pikalyovo - Urals Workers Seize Control of Plant's Finances
24 June 2009By Paul Goble / Special to The Moscow Times 
Inspired by the example of Pikalyovo, where workers blocked a federal highway 
to call attention to their plight, employees at many other enterprises around 
the country are increasingly adopting the same tactic, apparently hopeful that 
someone from Moscow will intervene, as Prime Minister Vladimir Putin did in 
that company town, and solve their problems.

But now, a group of workers at a factory in Sverdlovsk region have taken this 
protest movement a step further: They have formed a council to oversee the 
financial operations in the hopes of recovering back wages, boosting the 
factory's sales and saving their jobs in the face of what they say is an 
indifferent group of owners (http://www.finansmag.ru/news/22564).

The action of the workers of the Baranichi Electro-Mechanical Factory reflects 
the historical radicalism of workers from the Urals, but what is most striking 
about this development is that their efforts are supported by the regional 
government, the leaders of which have met with the council to discuss this 
"unprecedented financial-economic situation."

According to Finansmag.ru, the factory, which employs more than 1,000 people 
and is the dominant firm there, is at the verge of bankruptcy. It owes some 208 
million rubles ($6.7 million) to its workers, 38 million rubles for gas, 15.7 
million for electricity and 40 million to others. And as production has fallen 
by 75 percent in the last year, the firm has little hope of repaying anyone.

The owners of the enterprise have sought to shift responsibility for what has 
happened onto others, the business news site continues. But the 
"ineffectiveness" of their operation is shown, the site says, by the fact that 
"certain factory workers have not received their pay since September 2008."

Sverdlov Governor Viktor Koksharov supports the council of the labor 
collective, his office says, pointedly noting that he has called on "law 
enforcement organs to establish ties with the council," a clear effort to 
prevent the owners from moving against the workers at least in this case.

One reason for his supportive approach, of course, may be the recent statement 
by President Dmitry Medvedev that governors who do not do everything possible 
in their republics or regions to ensure the payment of wages and to keep 
unemployment from rising will be dismissed.

The actions of the Baranichi workers have attracted the attention not only of 
Moscow and regional news agencies but also of unions like the Electricians 
Union, an indication that what the Baranichi workers have done may spread to 
other factories and transform Pikalyovo-type demonstrations into something even 
more serious.

At the very least, such actions carry with them the risk of a kind of backdoor 
re-nationalization of some Russian industries, a move that might address the 
country's current economic difficulties but one that could threaten any future 
foreign investment there once the current crisis passes. But even more 
seriously and certainly more immediately, moves like the ones the Baranichi 
workers have taken, a syndicalist nationalization from below as it were, could 
endanger the Russian powers that be, especially if the workers, having gained 
this form of economic influence, try to convert it into political power.

Given that there are an estimated 200 to 400 company towns like Pikalyovo, that 
unpaid back wages and unemployment are both increasing and that worker anger 
against owners is growing, the spread of this post-Pikalyovo problem appears 
likely to create far more problems than its namesake did, something Moscow does 
not appear to have recognized


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