Lipetsk - - Russian Sweatshops
Unless you are a very conscientious buyer or just extremely curious, it may have escaped your notice that a lot of retail clothing is being made in Russia. Although we mostly hear about sweatshops in Asia, these latest additions to slave labor have arrived to Russia like Lipetsk, Voronezh and Belgorod.
One such factory is the Lipchanka Closed Joint Stock Company, located in the city of Lipetsk. Last year Lipchanka workers produced 230,000 men's pants for the German market, and 215,000 women's suits for the US and 50,000 for England. Clothing from this factory is being produced for the Netherlands and, depending on the outcome of undergoing negotiations, perhaps for a Swedish client, as well. Besides these immediate clients, however, Lipchanka's goods are distributed under various brand names worldwide.
The situation at Lipchanka is typical for Russia today. The management has run into debt arrears of 2 - 3 months on the wages of its workforce, which comprises about 1000 employees, most of whom are women. Paid holidays, despite labor laws to the contrary, are practically unknown.
This situation is further aggravated by low wages. The average worker receives from 800 to 1500 rubles per month (about $25 - 48). The highest wages being 2-3,000 rubles.
In spring 2001, the Russian Minister for Light Industry visited the Lipchanka factory. Afterwards, in a local television interview, the Minister stated that the factory was operating well and that salaries were being paid regularly. In response, the husband of one of the factory workers phoned the TV station and told the Minister that his wife had not been paid for three months. The Minister responded by accusing the caller's wife of being a liar.
Recently, Russian President Vladimir Putin awarded the general director of Lipchanka, Vladimir Torshin, an award "For Merits to the Fatherland." What indeed are the merits of this director?
Lipchanka's working women have been producing jackets, blazers, trousers, etc. for both foreign and domestic customers. Of Lipchanka's esteemed foreign clients are companies like "Steilmann" (Germany) and Harve Bernard Ltd. (USA). The latter company has enjoyed a "healthy" with Lipchanka for more than one year, which has been marked with high production demands. Despite the fact that the women employees at Lipachanka produce high-quality products, Mr. Torshin is apparently not been pleased with their work as they are paid mere kopecks.
Salaries at Lipachanka are essentially based on piece-work. Quotas are constantly raised, and the rates for completed work are constantly reduced. Company management has been apt to provide perfectly logical pretexts for these reductions. For example, clothing at Lipchanka is finished with a regular iron. As a result, the clothing may acquire a shiny appearance in areas. Regardless, the products are sent to the foreign client, where an automatic steam iron is used, which removes those shiny areas. Regardless, Lipchanka management claims that such articles were "spoiled" and, therefore, the rates were reduced accordingly. Interestingly enough, despite this "spoilage" of the articles, Lipchanka's foreign clients continue to place orders as before.
The work schedule at Lipchanka is heavy: two 12-hour days in succession followed by two days of rest. This amounts to a work week of 48 hours, not the 40 hours required by labor law.* Often workers are "urged" to work at nights with no increase in the wage rate (again in contradition to labor law). In light of the need for a job, workers generally agree to night work nonetheless.
Perhaps the worst period in Lipetsk is summertime. In the summer the temperature on the shop floor can reach almost 100 degrees. In order not to lose consciousness, some women end up pouring water on themselves. Although the director is well aware of these conditions, he apparently has no intent on implementing any changes.
The equipment itself at Lipchanka is estimated to be 80% worn out. Despite this the director has stated that there is no money for new equipment. According to Mr. Torshin, he is a rather poor man, who receives a paltry monthly salary of 8000 rubles, which is also in arrears. If that is the truth, then it is not clear how he managed to build a three-story private residence in the center of Lipetsk - a city where prices for real estate are comparable with Moscow. Mr. Torshin's retorts that his residence was built with his own blood. Probably, it's with the same blood that he went on holiday at the end of September after having failed to pay workers their July salary.
This time he did not have the opportunity to bask in the southern sun, as he was urgently called back from his holiday. On October 2, a strike broke out at Lipchanka.
The immediate reason for the strike was the general director's failure to keep his promise to pay back wages. In September, Torshin had signed an agreement to pay off the wage debts for July. The deadline for payment was set for September 30, which came and past without any wages being paid. Upon discovery that their director had gone on holiday to the Black Sea, the women seamstresses became indignant at having been lied to yet once again. Each year the director had promised to pay a month's bonus salary for good work at the end of one year. But he never kept that promise.
Thus, on October 2, the morning shift of 200 working women arrived as usual at 7:00 a.m., but this time they refused to enter the shop and work until their July salaries were paid. The strike was headed by work-team leader Zinaida Shmeleva, chairman of the local committee of the alternative trade union Dyelo. Although only 160 employees at Lipchanka are members of Dyelo, the union was able to initiate and take the lead of the strike. The women were actively helped by the chairman of the regional federation of the trade union, Valery Bulgakov.
At the same time, the chairman of the local committee of the "official" Federation of Independent Trade Unions (FNPR), Valentine Korableva did not undertake any actions to assure the employees that they would their salaries. When the women refused to get up and start work, she walked among them saying that this was "some kind of circus."
And a circus it truly is - people work for pennies while the factory's clients and management live the life of luxury. They even refuse to pay the few pennies demanded by the workforce. But then, no one is really surprised by this circus that has plagued Russia for the last 10 years.
Management was again quick in offering a "viable" excuse for the unpaid wages. The delay, they stated, was not their fault, but that of one of their clients, the German firm Steilmann. The money had been sent, but due to some ludicrous reasons had been sent back.
By evening the second shift joined the strike en-masse and the strike continued for the next two days. On October 4, the administration's nerves gave out. Money was unexpectedly found and payment of July wages began. Production resumed only the following day.
This is but a familiar story not only to Russia, but to many underdeveloped nations and even sections of the US. Protests against GAP, NIKE and other retailers for the use of gross wage slavery have made the issue pertinent. The western consumer is confronted with the moral delima of just what products can be purchased. The ubiquitous "MADE IN ****" hardly ever divulges the points of origin of any product. The component parts of most any item today have been prepared at various points over the world. This also applies to clothing items that have been prepared in Russia. Nowhere does Lipchanka imprint its factory name on the clothing it makes - only the brand name of the seller is imprinted, which can be very deceptive for the buyer. But the point is not what we should or shouldn't buy, but how to change the system that brings to goods produced under such conditions to the counter.
* The Labor Code referred to here is the old Labor Code, which was only recently replaced by a new one. Under new labor legislation a 58-hour week is now permissible. In addition to other draconian measures that have been introduced by the new labor law, the right to strike has been practically abolished.
Much of the material herein is based on an article by Sergei Chekrygin, which may be found at http://members.aol.com/ISWoR/english/index.html.
One such factory is the Lipchanka Closed Joint Stock Company, located in the city of Lipetsk. Last year Lipchanka workers produced 230,000 men's pants for the German market, and 215,000 women's suits for the US and 50,000 for England. Clothing from this factory is being produced for the Netherlands and, depending on the outcome of undergoing negotiations, perhaps for a Swedish client, as well. Besides these immediate clients, however, Lipchanka's goods are distributed under various brand names worldwide.
The situation at Lipchanka is typical for Russia today. The management has run into debt arrears of 2 - 3 months on the wages of its workforce, which comprises about 1000 employees, most of whom are women. Paid holidays, despite labor laws to the contrary, are practically unknown.
This situation is further aggravated by low wages. The average worker receives from 800 to 1500 rubles per month (about $25 - 48). The highest wages being 2-3,000 rubles.
In spring 2001, the Russian Minister for Light Industry visited the Lipchanka factory. Afterwards, in a local television interview, the Minister stated that the factory was operating well and that salaries were being paid regularly. In response, the husband of one of the factory workers phoned the TV station and told the Minister that his wife had not been paid for three months. The Minister responded by accusing the caller's wife of being a liar.
Recently, Russian President Vladimir Putin awarded the general director of Lipchanka, Vladimir Torshin, an award "For Merits to the Fatherland." What indeed are the merits of this director?
Lipchanka's working women have been producing jackets, blazers, trousers, etc. for both foreign and domestic customers. Of Lipchanka's esteemed foreign clients are companies like "Steilmann" (Germany) and Harve Bernard Ltd. (USA). The latter company has enjoyed a "healthy" with Lipchanka for more than one year, which has been marked with high production demands. Despite the fact that the women employees at Lipachanka produce high-quality products, Mr. Torshin is apparently not been pleased with their work as they are paid mere kopecks.
Salaries at Lipachanka are essentially based on piece-work. Quotas are constantly raised, and the rates for completed work are constantly reduced. Company management has been apt to provide perfectly logical pretexts for these reductions. For example, clothing at Lipchanka is finished with a regular iron. As a result, the clothing may acquire a shiny appearance in areas. Regardless, the products are sent to the foreign client, where an automatic steam iron is used, which removes those shiny areas. Regardless, Lipchanka management claims that such articles were "spoiled" and, therefore, the rates were reduced accordingly. Interestingly enough, despite this "spoilage" of the articles, Lipchanka's foreign clients continue to place orders as before.
The work schedule at Lipchanka is heavy: two 12-hour days in succession followed by two days of rest. This amounts to a work week of 48 hours, not the 40 hours required by labor law.* Often workers are "urged" to work at nights with no increase in the wage rate (again in contradition to labor law). In light of the need for a job, workers generally agree to night work nonetheless.
Perhaps the worst period in Lipetsk is summertime. In the summer the temperature on the shop floor can reach almost 100 degrees. In order not to lose consciousness, some women end up pouring water on themselves. Although the director is well aware of these conditions, he apparently has no intent on implementing any changes.
The equipment itself at Lipchanka is estimated to be 80% worn out. Despite this the director has stated that there is no money for new equipment. According to Mr. Torshin, he is a rather poor man, who receives a paltry monthly salary of 8000 rubles, which is also in arrears. If that is the truth, then it is not clear how he managed to build a three-story private residence in the center of Lipetsk - a city where prices for real estate are comparable with Moscow. Mr. Torshin's retorts that his residence was built with his own blood. Probably, it's with the same blood that he went on holiday at the end of September after having failed to pay workers their July salary.
This time he did not have the opportunity to bask in the southern sun, as he was urgently called back from his holiday. On October 2, a strike broke out at Lipchanka.
The immediate reason for the strike was the general director's failure to keep his promise to pay back wages. In September, Torshin had signed an agreement to pay off the wage debts for July. The deadline for payment was set for September 30, which came and past without any wages being paid. Upon discovery that their director had gone on holiday to the Black Sea, the women seamstresses became indignant at having been lied to yet once again. Each year the director had promised to pay a month's bonus salary for good work at the end of one year. But he never kept that promise.
Thus, on October 2, the morning shift of 200 working women arrived as usual at 7:00 a.m., but this time they refused to enter the shop and work until their July salaries were paid. The strike was headed by work-team leader Zinaida Shmeleva, chairman of the local committee of the alternative trade union Dyelo. Although only 160 employees at Lipchanka are members of Dyelo, the union was able to initiate and take the lead of the strike. The women were actively helped by the chairman of the regional federation of the trade union, Valery Bulgakov.
At the same time, the chairman of the local committee of the "official" Federation of Independent Trade Unions (FNPR), Valentine Korableva did not undertake any actions to assure the employees that they would their salaries. When the women refused to get up and start work, she walked among them saying that this was "some kind of circus."
And a circus it truly is - people work for pennies while the factory's clients and management live the life of luxury. They even refuse to pay the few pennies demanded by the workforce. But then, no one is really surprised by this circus that has plagued Russia for the last 10 years.
Management was again quick in offering a "viable" excuse for the unpaid wages. The delay, they stated, was not their fault, but that of one of their clients, the German firm Steilmann. The money had been sent, but due to some ludicrous reasons had been sent back.
By evening the second shift joined the strike en-masse and the strike continued for the next two days. On October 4, the administration's nerves gave out. Money was unexpectedly found and payment of July wages began. Production resumed only the following day.
This is but a familiar story not only to Russia, but to many underdeveloped nations and even sections of the US. Protests against GAP, NIKE and other retailers for the use of gross wage slavery have made the issue pertinent. The western consumer is confronted with the moral delima of just what products can be purchased. The ubiquitous "MADE IN ****" hardly ever divulges the points of origin of any product. The component parts of most any item today have been prepared at various points over the world. This also applies to clothing items that have been prepared in Russia. Nowhere does Lipchanka imprint its factory name on the clothing it makes - only the brand name of the seller is imprinted, which can be very deceptive for the buyer. But the point is not what we should or shouldn't buy, but how to change the system that brings to goods produced under such conditions to the counter.
* The Labor Code referred to here is the old Labor Code, which was only recently replaced by a new one. Under new labor legislation a 58-hour week is now permissible. In addition to other draconian measures that have been introduced by the new labor law, the right to strike has been practically abolished.
Much of the material herein is based on an article by Sergei Chekrygin, which may be found at http://members.aol.com/ISWoR/english/index.html.
Comments
Post a Comment