VZCZCXRO4070
RR RUEHLN RUEHVK RUEHYG
DE RUEHMO #5844 3520429
ZNR UUUUU ZZH
R 180429Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 5893
INFO RUEHLN/AMCONSUL ST PETERSBURG 4711
RUEHVK/AMCONSUL VLADIVOSTOK 2572
RUEHYG/AMCONSUL YEKATERINBURG 2909
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS MOSCOW 005844 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ELAB RS SOCI
SUBJECT: FORD WORKERS END STRIKE 
 
REF: A. MOSCOW 5314 
     ¶B. MOSCOW 4710 
     ¶C. ST.PETERSBURG 271 
 
--------------------------------------- 
Strike Ends and Full Production Resumes 
--------------------------------------- 
 
¶1.  (SBU) Summary.  Workers at Ford Motor Co.'s plant near 
St. Petersburg ended a four-week strike today after 
management promised further negotiations on a new labor 
contract, including wage increases and a reduction of the 
night shift (reftel a). According to press reports, Ford 
management has stated that new wage increases would 
compensate for inflation -- expected to reach 11 percent by 
the end of this year -- by a "large margin." End Summary. 
 
¶2.  (SBU) On Friday, Ford management agreed to discuss a new 
2008 labor contract, including wage talks, if full production 
resumed today.  Union leader Aleksey Etmanov confirmed that a 
timetable for discussions had been agreed on and called union 
members back to work on all three shifts starting at midnight 
on Sunday the 16th.  The plant had been operating on a single 
shift since November 28 and on two shifts since December 10. 
Etmanov also reported that management had agreed that no 
workers would be disciplined or discriminated against because 
of their participation in the strike. 
 
---------- 
Background 
---------- 
 
¶3.  (SBU) Ford workers held a one-day strike on November 7 
and warned of a permanent strike on November 20 if their 
demands were not met (reftel a).  Subsequent negotiations 
failed and workers began the strike on November 20.   The 
union has asked for a new labor contract that includes basic 
monthly wage increases from the current level of 19,000 
rubles to up to 28,000 rubles ($770 to $1,140) and a 
reduction of night shift hours (reftel a). 
 
------- 
Comment 
------- 
 
¶4.  (SBU) An increasing number of labor conflicts this year 
have highlighted workers' demands for a larger share of the 
country's strong economic growth in the form of higher wages, 
particularly amid rising inflation (reftel b, c). Unions have 
also wanted to draw attention to labor laws they perceive as 
anti-union (reftel c).  Managers of foreign investments in 
Northwest Russia have told us they feared foreign firms could 
be targeted by such strikes because unions expected fairer 
treatment there than at 100 percent Russian-owned companies. 
Investors admitted that workers had a negotiating advantage 
in this tight labor market, but noted that demands for 
"unreasonable" wage increases could quickly erode the 
region's competitive advantages.  End comment. 
 
¶5.  (SBU) This cable was coordinated with St. Petersburg. 
BURNS