1. Employment Relations in Russia LIR 554: COMPARATIVE EMPLOYMENT RELATIONS 10/07/2008 Chinweoke Ofuonye Deirdre Darnall Emmy Yimei Lin Kerri Kristich

2. Founded after dissolution of Soviet Union in 1991. World's leading natural gas exporter and 2 nd leading oil exporter. Largest stockpile of nuclear weapons of mass destruction in the world. Second largest fleet of ballistic missile submarines and world’s top supplier of weapons accounting for around 30% of worldwide weapons sales. One of the world's fastest growing major economies and is the world’s largest country Permanent member of the United Nations Security Council and the G8 2 nd largest collection of billionaires in the world, gaining 50 billionaires in 2007 for a total of 110 Ex-USSR countries: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan U.S.S.R THE RUSSIAN FEDERATION

3. RUSSIA Capital and statesMoscow, 83 subjects grouped into 7 federal districts Language(s)Russian, 27 other sub-official languages Population 142 million (9 th ) ↓ ReligionsChristianity, Islam, Buddhism, Judaism and atheism Nominal GDP/Per capita$1.290 trillion (11 th )/ $9,075 (54 th ) Unemployment rate 6.22% ↓ Political systemRepresentative democracy CurrencyRussian Ruble GovernmentFederal semi-presidential republic Economic systemMixed (Shifting towards Capitalism) Foreign perceptionPowerful

4. Russia: Its Politics

5. Political Structure The Russian Federation Three branch System – Executive Branch – Legislative Branch Federal Council: republics, oblasts and krais, federal cities Duma – Judicial Branch Constitutional Ct. Supreme Ct. Superior Ct. of Arbitration

6. Political Parties United Russia Communist Party of the Russian Federation Liberal Democratic Party of Russia A Just Russia

7. Democracy or Not? 1.Are Key Officials Elected by the People? 2.Are Political Powers Divided Among the Branches of the State? 3.Are Laws Supreme?

8. Russia: Its Economy

9. Economic Facts Fiscal Yearcalendar year GDP (nominal)$1.290 trillion GDP (PPP)$2.097 trillion (9 th ) GDP growth8.1%(35 th ) GDP per capita$14,800(75 th ) Inflation12% Average salary$640 per month (early 2008) Population below poverty line15.8% Imports$260.4 billion Exports$365 billion

10. Soviet Union (1922 to 1991 ) Key word: Centrally Planned Economy The Communist Party controlled all aspects of economic activity Prices were ONLY an accounting mechanism Plan Setting (five-year plan and annual plans): countrywide regional unit Management: top down

11. Boris Yeltsin(1991-1999 ) freeing nearly all prices slashing defense spending eliminating the old centralized distribution system completing an ambitious voucher privatization program establishing private financial institutions decentralizing foreign trade

12. 1993

13. Vladimir Putin(2000-2008)

14. Dmitry Medvedev(2008-) Issues to solve: Price Privatization of Essential Sectors Law **lack of legislation **lack of effective law enforcement **Government decisions affecting business are arbitrary and inconsistent

15. Its Employment Relations system

16. Labor Progression and Role of HR Free labor & capitalism Forced labor vs. true market – Little to no rewards for hard work – Little motivation Entrepreneurial characteristics – “Business” – Profit making

17. Labor Progression and Role of HR Previously assigned to specific occupation and job Career changes frowned upon No initiative for employees at work – Little reward through promotions – Internal motivation and personal effort considered secondary to external evaluation Positive and negative consequences

18. Positive Consequences 2 strategies – Survival – Active search for a new career Negative Consequences Demise of previous enterprises

19. COMPARISONS RUSSIAU.S.A Checks and balancesLowHigh AuthorityCentralized, flows downDiffused from people, flows up Social philosophy Socialism → Capitalism Dominant capitalism RightsSubordinated for common good Celebrated, protected Literacy & Unemployment rates 99% / 6.22% ↓99%/ 4.6% Health careFree, universalPrimarily self-funded, Employer and National programs EducationPaid by Govt./ FreePrimarily self-funded Rewards systemNo defined basis, thus low motivation Meritocracy or Seniority

20. THANK YOU!

21. Sources Modern Russia, Mikk Titma & Nancy Brandon Tuma. New York, NY. 2001. Developments in Russian Politics, edited by Steven White, Zvi Gitelman & Richard Sakwa. Durham, NC. 2005. http://en.wikipedia.org/wiki/Economy_of_Russia http://www.theodora.com/wfb/russia_economy.html http://www.goehner.com/russinfo.htm http://www.transparency.org/policy_research/surveys_indices/cpi/2008