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 The Federation Of Russia

Labor Unions and Conflict

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Introduction

Since fall of communism Russia has changed andpromotes free enterprise.

Offered enticements to foreign companies.

U.S. involved with Coca-Cola, Heineken, and FordCorporation.

Russian Labor union formed to appease workers

and U.S. political suggestions.

Russian labor unions only address productivity,morale, and workers holidays.

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ISSUES

All-Russian Confederation of Labor is an armof the current government.

Alexei Etmanov bypassed this ruling unionand started his own by convincing 2/3 of 

workers at Ford plant to join him.

Began to branch out in other major auto

plants.

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November 2007 Strike at Ford Plant

Workers demand pay increases up to 35%

because of the 12% inflation.

 As a corporate executive, what do you do?

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Conflict Resolution

Investigate and Negotiate

Negotiators are sent in

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Negotiators

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More Negotiators

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Inducements

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NOMOR E S TR IKE

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Ethical Issues and Human Rights

May 2003, Ford announced development of a

code of Basic Working Conditions.

 A Commitment to making the world a better place.

B Become a leader in human rights practices.

C Promote social issues for potential business benefits.

In compliance with Russian policy, seven issues

were addressed and implemented.

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Child Labor 

1.  Age 14 may work with parent or guardian consent.

2.  Age 16 may enter into employment contract.

Compensation

1. Determined by employment contract, collective

agreements and Russian law.

Forced Labor 

1. Prohibited2. Equal rights and opportunities for employees.

3. Cancellation of agreements and contracts with

suppliers engaged in forced labor.

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Harassment and Discrimination

1. No restrictions in employment rights based on race, gender, politicalconvictions or affiliation with or without union.

Freedom of  Association

1. Right to establish trade unions and collective bargaining.

Health and Safety

1. Regular safety audits conducted.

Community Engagement

1. Bribery and corruption not tolerated.

2. Compliance with legally mandated environmental requirements.

Ford will be judged on their response to the strike by world opinion,

stakeholders, and the Russian government.

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Ford·s Response

Initiates talks with Russian prime minister,Vladimir Putin.

1. Violent action will not be tolerated.

2. Discourages other businesses from operating in Russia

3. Contrary to Ford policy and human rights and ethical issues.

Putin responds by allowing unions to form as

long as they are not politicized. (Putin¶s advantage is that only 22%

of Russians favor unions, 40% disapprove, and 38% had no opinion).

Ford grants salary increases and production goes back online.

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Russian Culture

1. Business in Russia compared to frontier lifein nineteenth century  America.

2.  A western banker said he would ³rather eat

nuclear waste´ than sink money in Russia.

3. Laws are hazy or poorly enforced.

4. Estimated 40% of Russian economy and

50% of Russian banks controlled by

organized crime.

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Challenges and Issues

Multicultural leadership in Russia is imperative topromote good business practices and negotiations

with workforce.

 A. Multicultural is leadership based on understanding,beliefs and proper communication skills.

B.  Awareness of different cultures likes and

differences.

1. Russia has hundreds of different cultures and

ethnic groups.

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Teams need to be formed that are diverse in

cross-cultural knowledge to implement into

the workforce.

Russian managers need to be involved in

creation of action plans for achievingbusiness goals.

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Organizational Management and Staffing 

After studying strike statistics, it was shown thatyoung Russian males are too ambitious and

demand too much too fast.

Russian Women are more stable, dedicated, andmake better employees.

Is it possible to hire more women for your workforce

without discrimination becoming an issue?

 Are there sexual discrimination laws in Russia?

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³ A chicken¶s hardly a bird, a woman¶s hardlya person.´

Survey¶s show that women in Russia areconsistently discriminated against in not only

hiring, but sexual harassment.

Current ruling of the Russian court shows

how women are viewed:

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Russian Judge Rules Sexual Harassment Is Okay As It Ensures Survival Of HumanRace

Huffington Post | August 5, 2008 02:06 PM 

A woman seeking to become only the third woman ever to successfully bring a sexualharassment case in Russia was dealt a shocking rebuke when the judge threw out her case, ruling that sexual harassment is actually necessary for the survival of the humanrace:

She alleged she had been locked out of her office after she refused to have intimate

relations with her 47-year-old boss.

"He always demanded that female workers signaled to him with their eyes that theydesperately wanted to be laid on the boardroom table as soon as he gave the word," sheearlier told the court. "I didn't realize at first that he wasn't speaking metaphorically.³

The judge said he threw out the case not through lack of evidence but because theemployer had acted gallantly rather than criminally.

"If we had no sexual harassment we would have no children," the judge ruled.

According to a recent survey, 100 percent of female professionals said they had beensubjected to sexual harassment by their bosses, 32 percent said they had had intercoursewith them at least once and another seven percent claimed to have been raped.

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Russia¶s corporations can become

Socially Responsible by-

Helping women in Russia while at the same

time provide themselves with employees that

are Dedicated

Won¶t strike

and Are happy to work.

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Current Labor E vents in Russia

Ford plant is prospering

Many more unions are forming

Strikes are becoming more prevalent.1. Nestle strike (owned by Swiss corporation)

2. Nestle refuses to negotiate on wages.

3. Russia¶s Labor federation says nestle isanti-worker and calling for the company to

leave the country.