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Russia To Put New Social Burden On Workers?

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5 August, 2005ICEM News release No. 53/2000

The Russian government's plans for a general social tax came in for sharp criticism today from world industrial union leaders meeting in Brussels.

The tax is intended to replace the state non-budget social fund, which is based on the payment of insurance premiums.

But in Russia's present circumstances, the proposed tax would lead to social underfunding, insisted the Executive Committee of the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) in an emergency resolution adopted this morning.

In particular, the ICEM says, the tax would "lead to insufficient funding for pensions, for benefits in the case of unemployment or temporary incapacity to work, for treatement in sanatoria, and for medical care for children."

"It is unacceptable to put the burden of social expenditure on the shoulders of workers," the world's unions point out, "especially at a time when one third of the Russian population is living below the poverty line."

They call on the Russian government to consult properly with the country's unions on the issue, "in order to come up with an equitable social security system that will guarantee the funding of these essential social benefits for workers and their families."