ICFTU OnLine
261/981127/LD

Elsinore, November 27 (ICFTU OnLine): Badly-needed international assistance to Russia should be based on strong terms of conditionality, says the ICFTU, in a statement adopted today by its Executive Board at the end of three-day session in Elsinore (Denmark).

International financial assistance should be transparent and directed to programmes oriented to the revival of production and economic recovery, the ICFTU says. Among the conditions cited by the ICFTU are payment of wage arrears, reforms to social, health, welfare and educational services, genuine dialogue with trade unions and respect for human and trade union rights. "We want future funds to be released in tranches and trade unions should have a monitoring role to ensure that they are used properly", an ICFTU official commented.

The ICFTU puts the blames for the present economic crisis on ill-conceived "neo-liberal" reforms by successive governments in Russia and on the inadequate strategy adopted by the international financial institutions based, it says, on "unrestrained deregulation".

"For eight years, all the costs of the transition to a market economy have been borne by the working population and pensioners while the benefits have been concentrated in the hands of the few who have diverted domestic and international resources to their own enrichment", the ICFTU statement stresses.

According to figures released during the Elsinore meeting the total bill of wage arrears now reach over 15 billion US dollars and has dramatically escalated since the August financial crisis when the rouble was devalued by 50% and prices of basic commodities shot up while 40% of saving were wiped out. Over 20 million workers have not been paid for months, sometimes for more than a year. "Illegal forms of employment, illegal dismissals of million of workers without compensation and an increased number in children dropping out of school" are now common features of Russia, the ICFTU document says.

It adds that violation of elementary standards of health and safety have dangerously increased in the nuclear spheres.

The ICFTU calls for effective and genuine economic and social reforms that regenerate the economy, develop democratic institutions create an adequate social infrastructure and put an end to speculation, theft and corruption. It says such reforms should discussed with the Russian trade unions that have remained the only organisations in civil society capable of representing and defending the interest of working people.

On October 7, Russian workers took to street to demand payment of wage arrears. The general strike and demonstrations organised on that day by Russian trade unions had the full support of the ICFTU.

The ICFTU now plans to take the demands of Russian unions to international financial institutions. "Effective reforms should be central to any government programmes that is to receive the support of the international financial situation", says the ICFTU. However, at present, these institutions are insisting the Russian government should restore the confidence of the international community by guaranteeing to meet all its international obligations, at the expense of any of its obligations to its own population", the trade union group denounces.