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Union at Gestamp in Russia struggles for better wages and conditions

28 July, 2011Activists of the Interregional Trade Union of Autoworkers (ITUA) local at Gestamp in Kaluga, Russia, prepared an appeal to the employer calling for the strict adherence to the national Labour Code.

RUSSIA: On June 14 a union local was created at Gestamp Kaluga, a hi-tech factory producing components for the nearby Volkswagen assembly plant. The new union joined the Interregional Trade Union of Autoworkers (ITUA), an IMF affiliate.

Gestamp-Severstal-Kaluga is a joint Russian-Spanish venture with major shares owned by  the Spanish company Gestamp Automoción and the Russian steel and mining company Severstal. The plant produces pressed parts of car bodies with cold stamping.

Gestamp Kaluga, founded in July 2010, currently employs 120 permanent workers, 80 out of which are production workers. The administration also uses precarious workers hired through the employment agency Adecco. This agency also serves as an employer for Volkswagen workers in Kaluga during their six-month 'probation period' introduced by the management.

Union activists prepared an appeal to the administration calling for strict adherence to the national Labour Code and participation in the social dialogue. The activists are currently engaged in a full-blown organizing campaign at the plant.

Members of the union local at the plant conducted a survey. The results suggest that the key issues for the workers are low wages and a year-long delay with the assessment of workplaces. Wages at Gestamp are lower than those at Volkswagen. Monthly wage is 20000-26000 roubles (740-960 USD). Union activists claim that the working conditions at the plant should be considered as 'hard'. If they are right, the workers haven't received the benefits for hard working conditions (stipulated by Russian laws) for over a year.

Key goals for the union local are raising the wages and conducting the assessment of workplaces.

Large automobile industry has emerged in Kaluga, Russia, in recent years. Major car manufacturers, such as VW and Peugeot, have brought suppliers with them. Volkswagen supply chain, one among the few in Kaluga, includes Gonvarri, Faurecia, Lear Corporation, Magna and other plants. Some of them already have ITUA locals.