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Trade unions are associations of employees created to protect their economic interests and improve working conditions. According to the composition of the united workers, they can have a narrow professional, sectoral, regional, national and even international character.
It is well known that in any market (except for a perfectly competitive market) associations of both demand and supply agents can arise. Created in order to obtain economic advantages and benefits for their members, these associations give rise to certain restrictions on freedom of competition with all the ensuing consequences in the field of pricing.
In the labor market, hired workers do not always occupy an equal position in relation to employers that corresponds to fair economic relations. After all, on the employer’s side there are advantages such as wealth, organizational capabilities of the enterprise, and often political influence. In this regard, hired workers have a natural need to oppose the buyers of labor with the combined power of its sellers.
Trade unions should play the role of such a force. Their main task is to protect employees from possible exploitation by enterprises that demand labor and pay it at a low price. Therefore, trade unions organize collective forms of labor sales instead of individual ones. They are trying to ensure an increase in wages, an increase in the number of employees, improved working conditions for workers and social guarantees for the unemployed. Along with carrying out purely economic tasks, trade unions often interfere in the political life of their countries. Significant politicization is characteristic, in particular, of European trade unions.
Trade unions in the USSR and Russia
In pre-revolutionary Russia, the trade union movement, suppressed by the monarchical state, was unable to reach the required degree of maturity. Its real impact on labor relations was virtually non-existent. Later, under Soviet rule, trade unions functioned as part of the party-state mechanism. They did not interfere at all in many issues that traditionally formed the core of trade union activity. Thus, they did not even try to achieve higher wages and did not go on strike.
Being dependent on the country's leadership, Soviet trade unions nevertheless played an important role in solving numerous social problems. Without the consent of the trade union committee it was impossible to fire a single employee. Through the trade union system, various preferential (not sold at full price) vouchers to sanatoriums, rest homes, etc., travel tickets were distributed, and financial assistance was provided to those in need.
Currently, Russian trade unions are taking only the first steps towards establishing fundamentally new relationships with both the state and enterprises. They have yet to take an independent place both in the emerging market system as a whole and in the labor market. The largest association of trade unions - the Federation of Independent Trade Unions of Russia (FNPR) - is the direct "successor" of the Soviet trade unions and unites the majority of workers in state and privatized enterprises. There are still large elements of formalism and bureaucracy in the activities of the FNPR, and the ability to actually defend the interests of workers (for example, to achieve payment of wage arrears at a particular company) is limited. As for new private firms, there are usually no trade union organizations at all. Nevertheless, modern Russian trade unions (especially at the local level) have ceased to be obedient appendages of the state. Their organization of strikes and mass protests are the first signs of the independent role of the trade union movement in the economy.
There are three main models for the functioning of the labor market with the participation of trade unions.
Model for stimulating labor demand
The first model is focused on increasing wages and employment by increasing the demand for labor. A trade union can achieve such an increase by improving the quality of labor goods (for example, by promoting an increase in labor productivity at the enterprise or increasing demand for finished products).
Let's present this model graphically (Fig. 11.11).
Rice. 11.11.
When the union achieves an increase in the demand for labor, the demand curve shifts to the right from position to position . In this case, two most important tasks of trade unions are simultaneously solved: employment increases (from to ) and the wage rate increases (from to ). It is obvious that the considered model is extremely attractive, but in practice it is difficult to implement. In fact, trade unions in this case act in the interests of both their members and entrepreneurs, since they improve the quality of the labor resource. This is possible only in conditions of social peace and partnership in society. Japanese workers provide an example in this regard. In accordance with the established relations between labor and capital in the country, they do a lot for the prosperity of their companies free of charge and voluntarily. For example, they organize quality circles in which, after work, problems of improving products are discussed.
Labor Supply Reduction Model
The second model is focused on increasing wages by reducing labor supply. This reduction can be achieved within the framework of narrowly professional (shop) trade unions, which are usually called closed or closed. Such trade unions establish strict control over the supply of highly qualified labor by limiting the number of their members, for which they use long training periods for the relevant profession, restrictions on the issuance of qualification licenses, high entry fees, etc.
At the same time, trade unions seek to pursue policies aimed at reducing the overall supply of labor, in particular by seeking, in particular, the adoption by the state of relevant laws (for example, establishing mandatory retirement at a certain age, limiting immigration or reducing the length of the working week).
A graphical representation of this model is shown in Fig. 11.12.
Rice. 11.12.
If a trade union, by one means or another, achieves a decrease in labor supply, then its curve shifts from position to position . The consequence of this will be an increase in the wage rate from to . But at the same time, employment will decrease from to .
. However, the industry trade union is seeking to set wages at a level no lower than , threatening a strike otherwise. The labor supply curve turns into a broken curve (it is thickened on the graph). In accordance with its demand curve, the enterprise will respond to an increase in the wage rate from to by reducing the number of employed workers from to.In the third (as well as in the second) model, wages increase due to a decrease in employment. From this we can conclude that the results of the struggle of trade unions for increasing wages are contradictory, since this increase itself is associated with a decrease in the number of workers. In other words, unbridled wage growth can generate unemployment.
New translations
RUSSIAN LABOR MARKET1
Simon Clarke University of Warwick, UK
Translation by M.S. Dobryakova Scientific editing - V.V. Radaev
Labor market during the Soviet period
The labor market was the only market that existed in the Soviet Union in a form that could be recognized in a capitalist economy (67, 68). Despite the intentions of the authorities to plan the distribution of labor and the insistence of almost all Soviet scientists that labor was not a commodity, in practice workers more or less freely changed jobs, and employers more or less freely hired whoever they wanted. Although wages were tightly controlled in an attempt to suppress competition in the labor market, employers in basic sectors of the economy were able to offer higher wages, housing, and a wide and increasing range of social benefits in order to attract selected workers. The least privileged industries could not compete using the same methods, i.e. offer better wages and benefits, but they could offer less intensive work hours, less strict work discipline, and more opportunities to earn extra money on the side by combining several jobs during the workday or simply by stealing public property. At the same time, wages for individual workers could be increased by assigning them higher ranks and categories or by weakening production standards. At the same time, those formal labor market institutions that ensure the process of changing jobs in developed capitalist economies did not exist. In Russia, by and large, people were forced to seek information about job vacancies through informal channels. However, before considering these informal channels, we should briefly outline the formal institutions that were supposed to regulate the movement of labor at the end of the Soviet period.
Distribution of labor force by administrative methods Entry into the labor market
Here, at the center of administrative regulation was a system of strict distribution of graduates after graduation from educational institutions. This
1 This text is a translation of part of the article Clarke, S. The Russian labor market // Aspects of social theory and modern society / Ed. A. Sogomonov, S. Kukhterin. M.: Institute of Sociology of the Russian Academy of Sciences, 1999. P. 73-88 (73-120). The translation is posted with the kind consent of the author.
The system applied primarily to graduates of higher and secondary specialized educational institutions: they were required to work in their assigned place for three years. At the same time, the authorities expected that they would remain in this workplace for the rest of their lives. The distribution of graduates to jobs was carried out by the Distribution Commission operating at the educational institution. It was based on the wishes of the student, his academic achievements and social and political activity, as well as the specific requirements of employers who addressed the management of educational institutions. The best students or those who had good connections were often assigned by their own choice - for example, to the enterprise or organization where they completed their pre-graduate internship. Others were sent to remote regions of the country, primarily to Siberia and the Far East, where labor shortages persisted. However, in practice, this system never worked fully: some students found work themselves and simply did not show up where they were assigned; others went to the distribution site and discovered that there was no work available for them there; and still others left the places of distribution without waiting for the expiration of the three-year period (67, pp. 46-47). Since the 1980s the distribution system also extended to graduates of vocational schools. As a rule, these students were sent to the enterprise to which their vocational school was attached, although in practice, many found work here themselves. Local youth distribution commissions were supposed to find jobs for school leavers, but their effectiveness was highly controversial (68, p. 110).
Administrative distribution in the next stages
Although the country had a clear career ladder, in which personal connections played an important role, as well as professional and political qualities, its top positions were also filled through administrative means. The appointment of people to senior positions in all spheres of economic, social and political life was regulated by a nomenklatura system, under which party committees at all levels approved a list of persons eligible for promotion. From this list, candidates were selected when a vacant position arose (73). In principle, any party member could be ordered, in the interests of the party state, to move to another job, for example to travel to a remote region, which was common in the 1930s, but such a practice became quite rare in the post-Stalin period.
Other administrative methods of assigning people to jobs were based on material incentives and did not include a coercive component, so they should be considered market rather than administrative mechanisms (67, pp. 45-53). The organizational set arose in the early 1930s. on the initiative of industrial enterprises that entered into agreements with collective farms on the supply of labor. Gradually, organizational recruitment was systemized and bureaucratized, and it soon became the main channel for recruiting the rural population to work in industry and construction at a time when villagers did not have the right to leave their place of residence. Since the 1950s. organizational recruitment was used primarily to attract labor to the developing regions of Siberia and the Far East. In this case, a contract was concluded with a specific employer for a period of one to five years (average duration - 2 years), he was allocated lifting costs and paid transportation costs. In the 1980s organizational recruitment covered 20% of the planned recruitment of workers for Siberia and the Far East, while almost a third went through the line
Ministry of Energy, while its share in the industry as a whole was not so large. Since no additional funds were allocated for family members in this case, most people hired in this way were single, and about two thirds of them were under 29 years of age. The same problems arose with organizational recruitment as with the distribution of graduates: many discovered that living and working conditions did not correspond to those promised; or people simply turned out to be unnecessary and left before the contract expired. There were also complaints that the organizational recruitment attracted far from the best workers, but only fliers, jumping from place to place in the hope of lifting and covering transportation costs (67, pp. 51-52). Schemes for resettling people in rural areas were smaller in scale, but they provided for more substantial payments and allowed entire families to move (68, pp. 112-113).
Komsomol calls were initially introduced by N.S. Khrushchev with the aim of developing virgin lands; subsequently they were increasingly used to attract labor for large construction projects in the country. Although the terms of the contracts were more flexible than in the case of organizational recruitment, and the ideological load was much stronger, the material conditions were similar, and, as it turned out, people mobilized at the call of the Komsomol were not particularly eager to remain at their place of work after the end of the contract. Most students entered into short-term contracts, mainly to work on construction sites or in agriculture, primarily during the holidays.
Finally, it is important not to forget the important role that forced labor played throughout the Soviet era. Although mass repressions ended with the death of I.V. Stalin, a very large number of people were sentenced to certain terms of imprisonment in forced labor colonies. However, subsequently they were often charged with forced settlement in regions where there was a labor shortage. In addition, large numbers of military conscripts and military personnel were widely used to work on civilian projects or to fill seasonal labor needs, such as harvesting crops or clearing streets of debris at the end of winter.
Labor mobility
According to the Soviet ideal, each individual was to be given a job according to his qualifications and the needs of the economy. It was assumed that he would subsequently make a career at the enterprise or organization to which he was sent, and appointment to senior positions would be controlled by the nomenklatura system. The reason for such a persistent desire to consolidate the structure of employment was not so much the attempt of planning authorities to control the distribution of labor (in practice, they could achieve this through market mechanisms), but rather the central role assigned to the workplace in the process of maintaining order and stability of Soviet society.
The workplace was the main element of social integration within the Soviet system. And the party’s policy was aimed at securing people in their jobs: this made it easier to regulate and control their lives. At the same time, this ideal was carried out in practice, first of all, by providing enterprises with significant social benefits and privileges for length of service. The main place of work was not only a source of livelihood, but also an indicator of social status. Lack of work
condemned not only to material deprivation, but also to the risk of being imprisoned on charges of “parasitism.” The authorities did not encourage dismissal of even the most undisciplined workers as a means of control over the workforce, because those fired had to be sent to some other place of work. So the number of disciplinary dismissals was extremely small, although the management of the enterprise could force those who violated discipline to leave of their own free will.
This policy was also reflected in the subjective orientation of workers, which was based on the ideal: work for life, and the workplace as a “second home.” The ideal work path for a Soviet worker was to find a suitable job and then remain there for the rest of his/her working life, making a career by moving from one position to another within the enterprise itself. If, however, there was a need to change jobs, this was done through a transfer agreed upon with the management of the enterprises and/or external organizations. Such a transfer allowed the employee to maintain continuous work experience and associated social benefits.
In practice, however, this did not work as intended because there was no effective mechanism to keep people in their jobs, with businesses and organizations always competing with each other for labor. Workers, especially in the early stages of their careers, sought better pay and working conditions, better prospects for housing and child care (67, pp. 280-282). As a result, the level of labor mobility was quite high. Thus, most of the hiring of workers took place outside of any administrative distribution of labor, but was carried out directly between the individual and the future employer. Moreover, approximately two-thirds were direct transfers from one job to another (67, p. 276).
There is very little data on staff turnover and the channels through which people found work in the Soviet system, since such information was considered a state secret and was not subject to publication until the end of the Soviet period. And the available data (primarily the data from research reports) are completely inconsistent with each other (for this kind of data, see 67, Chapter VI). As A. Kotlyar writes, 14.2% of the total number of employed in Russia in 1980 were graduates of educational institutions, 2.8% were young people, 3.8% were transferred, 0.9% were involved in organizational recruitment and resettlement of rural families, 0.5% - at the call of the Komsomol, and 77.8% were direct hiring of workers by enterprises (67, p. 269; 68, pp. 109-113; 61, p. 62).
This small proportion of administrative methods of assigning workers is the result of high labor turnover, which meant that the majority of all hires were people who moved at their own discretion from one job to another. Overall level of labor mobility in the Soviet Union since the 1960s. was comparable to those for capitalist labor markets: turnover was approximately 20% per year and fell to approximately 15% in the mid-1980s. These figures are similar to those for many European countries; they are higher than in Japan and significantly lower than in the United States2. However, the Soviet reverent attitude towards high
2 Official data show that since the mid-1970s. significant
The level of labor mobility becomes quite understandable if we place it in the context of employment dynamics, on the one hand, and social norms, on the other. The “extensive” path assumed a rigid employment structure; jobs were eliminated extremely rarely, since the creation of new industries was not accompanied by the liquidation of old production capacities. Thus, very few people were forced to leave their jobs as a result of retrenchment, and even fewer as a result of disciplinary dismissals. Likewise, centralized determination of wage levels did not put pressure on workers in depressed industries by reducing the relative level of this wage. On the other hand, strong social norms supported employment stability. A high level of labor mobility was characteristic, as a rule, primarily of young workers who were looking for a more suitable place of work, as well as the least socialized and least disciplined workers, who also usually had lower qualifications. However, persistent labor shortages meant unemployment was low, and those who left their jobs were confident that they would find another job as soon as they chose. Despite the curbs on labor mobility, workers had sufficient freedom to change jobs in accordance with their own interests and preferences.
Personnel turnover was viewed by the Soviet authorities not only from the point of view of negative social consequences, but also as a serious economic problem and a waste of resources. Workers left the jobs for which they were trained and went to new jobs, where they again needed time to prepare. At the same time, the break between work at the old and new places was approximately one month (67, p. 306316). Accordingly, there have been quite a lot of studies devoted to the reasons for high employee turnover. The objective of these studies was to identify ways to improve the system of wages and bonuses, as well as change working conditions that would reduce labor mobility. Ideas about labor mobility as a positive phenomenon were also absent among economists, who did not consider it as a means of increasing labor productivity, achieved by better matching the worker with his place of work. They are also absent among workers who could not consider it as a means of constructing a fulfilling working life. Consequently, labor market institutions such as those found in the West were very underdeveloped, and labor mobility was never explored as a tool for economic restructuring or as an element of workers' employment strategies.
reduction in the labor turnover rate (it subsequently began to rise from 11% of industrial workers in 1986 to 13% in 1989 (26, p. 126) and to approximately 30% in 1992). Soviet commentators explained such a sharp drop in the turnover rate in the first half of the 1980s. successful implementation of a number of measures to improve labor discipline and reduce turnover, which followed the official announcement in December 1979. Western commentators were more skeptical about the effectiveness of these measures, which included, for example, the following: the consideration of applications for resignation was extended by 2-4 weeks. Partly due to the decline in turnover rates in the mid-1980s. can be explained by the aging of the workforce (68, p. 217), as well as, probably, by Yu.V. Andropov’s short campaign to tighten labor discipline (67, p. 315; 61, p. 63).
In practice, the central authorities sought to regulate the labor market through market rather than administrative mechanisms. Higher wages were paid to workers in remote regions where labor was scarce and in basic industries where greater social benefits were also offered. This gave the basic industries, and above all the military-industrial complex, a great advantage in the labor market, which made it possible to attract the best workers and have a stable workforce. The flip side of this situation was that lower-priority sectors, including services, light industry and construction, experienced greater difficulty in attracting labor and higher turnover (68, p. 217; 62). Changes in social policy that occurred from the mid-1980s were aimed at securing the worker in the enterprise, providing him with housing and providing a wider range of social benefits and benefits tied to a given workplace. However, as a result, wealthier enterprises received more advantageous positions in the labor market. Survey data showed huge differences in turnover rates among different enterprises in the same industry, thereby reflecting the extent of competition between enterprises in the labor market. Higher turnover was also found in large cities, in smaller enterprises, and among younger and lower-paid workers (67, pp. 275-276).
Intermediaries in the labor market
Despite the fact that most of all hiring of workers was done without administrative control, during almost the entire Soviet period there were formal intermediaries in the labor market, engaged, in particular, in the placement of youth and such special categories as disabled people demobilized from the army and released from prison. places of detention. Only in 1969, in order to improve the efficiency of the labor market, labor exchanges were re-established (in 1930 they were abolished due to the official announcement of the elimination of unemployment). In the period between these two events, the company was fully responsible for the employment of dismissed workers, as well as for the payment of compensation for two weeks after dismissal. By 1970, 134 employment bureaus had been established, and by 1989, 812 employment centers and 2,000 employment bureaus had emerged throughout the Soviet Union. However, for a number of reasons, such bureaus turned out to be ineffective. First, ironically, unlike most capitalist countries, these institutions did not receive government support, but had to finance their activities through deductions from enterprises, which led to underfunding and problems with personnel (67, pp. 24, 406 -407). Second, many businesses did not report their vacancies, and most of the reported jobs were for low-skilled workers. Third, these bureaus had a very low reputation and were the last resort of people who despaired of finding work on their own, and businesses that could not fill empty jobs. However, according to their own reports, these bureaus soon began to play a decisive role in the process of labor distribution, accounting for more than 20% of all hiring in Russia in 1981. They significantly reduced the time gap in moving from one job to another, ensuring in 1973, 87% of those who wanted information about jobs were provided with information and 59% actually found jobs (68, pp. 115-116). According to our own data, these bureaus and their successors, as we will see below, played a much larger role in the labor market.
less significant role. Labor market policy
Throughout Soviet times, labor market policy was subordinated to the primary task of mobilizing labor reserves for the needs of building Soviet industry. In the 1930s it was necessary to relocate, largely by force, a large proportion of the rural population to new centers of processing and mining industries. After Stalin's death, the emphasis gradually shifted to the use of material incentives to attract the rural population into industry and construction, but by the end of the 1950s. It had already become clear that the influx of workers (including women) from agriculture, which played an auxiliary role, into the army of hired labor, as well as the natural increase in the urban population, was not enough to satisfy the insatiable demand of the Soviet system for labor. During the 1960s and 1970s. The attraction of the non-working population, consisting primarily of pensioners and women with children, played an increasingly important role. Restrictions on the employment of pensioners were gradually relaxed, and by the end of the Soviet period, pensioners could receive a full pension even if they continued to work, subject to a certain “ceiling” of maximum total income3. Likewise, childcare benefits have become widespread and women have gained new rights regarding maternity leave. All these measures had a noticeable impact on attracting these two categories of workers into the labor force (67, pp. 106-107, 218-225). At the same time, they contradicted the goals of social and demographic policy, which especially concerned the employment of women with children. A dramatic illustration of the state of affairs was the high level of infant mortality and the sharp decline in the birth rate.
Since the 1980s. Soviet specialists switched attention from the labor shortage on the external labor market to the surplus of labor employed in existing enterprises. This led to debate about the extent to which Soviet enterprises fed large domestic reserves of labor that could be mobilized to meet the demands of ongoing economic growth (this debate is discussed in detail in ). The theoretical problem was the apparent coexistence of labor shortages at the macro level and labor surpluses at the micro level. The phenomenon of "overemployment" was explained by the shortcomings of the planning system, which gave enterprises an incentive to maximize the workforce and which required them to hold back a significant part of the workforce as a reserve in case of changing needs4. The reason was also seen in the imperfection of the strategy
3 Pensioners in Russia can be quite young. It's not just that pension
The age here is five years lower than in most countries (55 years for women and 60 for men), but also in the fact that many workers have the right to early retirement due to harmful or difficult working conditions. An underground miner, for example, can retire after 20 years of service. These “privileges” are balanced by low life expectancy, especially for men, and the widespread incidence of accidents and illnesses at work.
4 Such needs included the right of local authorities to call upon a significant proportion of the workforce
forces from local enterprises to meet any short-term needs. They widely used this right, especially in the case of harvesting, construction, and also
capital investment, where the emphasis on primary production has led to an extremely low level of mechanization of auxiliary labor; as well as in the incompetence of managers, which led to ineffective use of labor within the enterprise.
Attempts were made to eradicate the shortcomings of the planning system through a series of "experiments" carried out starting in the mid-1960s. It was proposed to give enterprises and organizations an incentive to reduce the number of employees by retaining for them the funds saved as a result of increasing labor productivity. As is the case with all other Soviet “campaigns,” such experiments gave good results at advanced enterprises in the short term, however, due to system failures, it was not possible to maintain a significant impact of the experiments in the long term (1; 68, pp. 169-81 ; 67, pp. 161-71). There was an underlying tension between the integrity of the administrative-command system, which required the center to maintain control over the distribution of resources, and the need to encourage initiative in the acquisition and management of resources.
By the mid-1980s. It became generally known that the Soviet economy had a surplus of 10-15% of the labor force, but the sources of such data were never cited (67, p. 154). Since the view that labor shortages were a Soviet invention and that labor shortages were an integral feature of Soviet enterprises has become common among post-Soviet analysts, it is important to clarify what is meant by these internal surpluses. Survey data consistently showed that the vast majority of enterprises faced labor shortages, and this proved to be a significant obstacle to achieving the plan. On the other hand, survey data also showed that after implementing systemic reforms - such as changing the planning system, improving the management system and improving the reliability of supplies - many enterprises could meet production targets using much less labor. A more rational investment program, including the dismantling of outdated factories and the mechanization of auxiliary and auxiliary labor, would save even more labor (68, pp. 19-20, 151160). Thus, there is no evidence that there was a significant surplus of labor in the sense that enterprises and organizations accumulated labor reserves that could be freed up without any effort for more efficient use. This is true only in the sense that there was an extremely wide range of ways to increase labor productivity through management reform and more rational capital investment programs (see 8, 52). This served as the basis for a series of reforms during the era of perestroika, the essence of which was the release of internal labor reserves based on an increasingly radical transformation of the administrative-command system. The result of these attempts was the rapid disintegration of the system, when the center lost control over the distribution of resources, which had previously formed the basis
repair of municipal buildings and roads. According to published data, during the 1980s. in the Soviet Union, such tasks absorbed 700-800,000 man-years per year (68, p. 113). This figure, however, is clearly a significant underestimate, since a significant part of this kind of labor mobilization was carried out informally and, therefore, was not officially registered.
his power over enterprises and organizations (12). The impact of perestroika on the Soviet labor market
This work does not imply coverage of all the turns and leaps of perestroika; it only touches on its impact on the Soviet labor market (68, chapters 9 and 10; 67, chapter VIII). The fundamental elements of the reform program from the point of view of labor market development were the wage reform of 1986 and the Self-Employment Act, which was combined with a renewed fight against unearned income; Public Enterprise Act 1987; Cooperatives Act 1988 and Tenancy Act 1989; finally, the expansion of the activities of the Employment Bureau and the introduction of unemployment benefits in 1988.
The main goal of the wage reform was a closer link between wages and labor productivity, increasing the independence of enterprises and institutions in setting the level of wages and its differentiation depending on the dynamics of labor productivity, with a subsequent reduction in the workforce (21). The reform was first introduced on a pilot basis on the Belarusian railway in 1985-86, where it had a decisive impact on wages, employment and productivity - and was eventually extended throughout the Soviet railway system5. The widespread implementation of wage reform required radical changes in the relationship between enterprises and the ministries above them - changes that would give enterprises greater independence in determining the number of employees and disposing of their own income. These changes occurred in 1987, when the State Enterprise Law was adopted.
It was expected that the reforms would lead to massive layoffs, but it was assumed that the subsequent regrouping of the workforce would help avoid unemployment, which continued to be considered an unacceptable phenomenon throughout the entire period of perestroika. In order to facilitate the employment of the displaced workforce, in 1988 the Employment Bureau was given significant powers. Enterprises and organizations were now obliged to inform them about all their vacancies, as well as upcoming layoffs (the sanctions, however, were insignificant). Central services received new rights to coordinate staff retraining (although the costs had to be covered by the new employer), as well as provide advice on choosing a profession. The entitlement to redundant workers' benefits (paid by the employer) has been increased from the previous two weeks' salary to two months' salary. At the same time, those who registered with the employment center within two weeks from the date of layoffs continued to receive monthly benefits. The powers of the Employment Bureau were further expanded by the Employment Law of 1991, which for the first time recognized the existence of unemployment and established the Federal Employment Service, financed by mandatory
5 These improvements had little to do with wage reform. A third of all job cuts in Belarus were attributed to additional capital investment, more than half to labor intensification through revised standards and employment reductions, and one-eighth to management rationalization. One-fifth of those who lost their jobs were re-employed in the railroad system, 40% retired, and 40% found work in other industries (67, p. 395).
deductions linked to the wage fund of enterprises. According to the new Law, unemployment benefits were to be paid through employment services; it was in addition to the redundancy compensation that the enterprise provided under the previous law. The law provided employment services with a wide range of new opportunities, including training and retraining, financing the maintenance and creation of jobs, and public works.
There has been much debate regarding the role that wage reform has played. Everyone, however, agrees that she did not live up to the expectations placed on her. According to Soviet experts, 2.3 million jobs were eliminated by July 1988 due to this reform. However, 13% of such cases are explained by the elimination of unfilled vacancies, 35% are the movement of personnel to vacant positions within an enterprise or organization, 1 7% are the retirement of workers who have reached retirement age, and the remaining third, or 800 thousand workers, i.e. . less than 1% of the workforce looked for work elsewhere. In other words, the wage reform explained, at best, only 10% of the total turnover in the year of its implementation (68, p. 252).
In fact, it turned out that legislation on new forms of labor activity had a much greater impact than the wage reform or the Law on State Enterprise. Individual labor activity has always existed legally in the form of peasant subsidiary farming and illegally in the form of providing a wide range of services to the population. By the 1980s subcontracting work carried out by independent teams of workers (shabashniks) has become widespread, primarily in the field of construction in rural regions (68, pp. 113114; 67, pp. 363-374). Self-employment, cooperative, and tenancy laws not only provided individuals with the ability to legally sell the products of their individual or collective labor, but more importantly, they provided businesses and organizations with a loophole through which they could escape centralized controls over wages and employment by concluding agreements with formally independent cooperatives and rental enterprises, as well as avoiding control over their financial activities by establishing formally independent “pocket banks”. It was these reforms that broke the system of administrative control over wages and employment and acted as a stimulating factor in the significant increase in staff turnover in the late 1980s.
The immediate impact of perestroika on the Soviet labor market was relatively limited. A number of changes took place in the legal or administrative sphere regarding the distribution and re-absorption of labor. There were no significant changes in the structure of the labor force. There was a subtle tendency to redistribute labor from the sphere of material production to the service sector. There was a more significant increase in staff turnover, which was probably more a consequence of new opportunities in the nascent private sector than the impact of wage reform or the greater independence granted to state-owned enterprises. The role of the Labor Employment Bureau increased, employment growth began to be controlled, but the unemployment rate did not increase significantly, since reductions in production were compensated by the departure of some pensioners from the labor market. However, the erosion and then the collapse of the administrative-command system, which forced a rapid transition to a market economy, led to significant changes in the structure
wages and employment, resulting in increased levels of labor mobility as workers responded to changing market conditions.
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Home > DocumentEffective employment policy in the USSR.
The labor market in post-revolutionary Russia.
Labor market under the NEP.
Unemployment... In a society awakening from many years of stagnation, its image suddenly appeared along with a feeling of acute anxiety and inevitable retribution for the falsehood of dogmatism and unprincipled varnishing of reality. Until quite recently, in the theory and practice of managing the national economy, the very possibility of unemployment in our country was completely denied; it was considered unacceptable even during the period of large-scale transformations in the economy. To overcome dogmatism in employment theory, it is necessary first of all to clear it of traditional layers. For many years we were told: even if you don’t have this or that or that yet, but you have a job! So, be kind, realize one of the main human rights - the right to work - to the fullest. This ideology greatly contributed to the emergence of a labor system in which a person essentially became an appendage of a machine or a hoe, a “productive resource.” The developed employment system has led to the lag of our economy. Moving to a market economy, which naturally corresponds to the labor market, we begin to understand that the more efficient and free the economy is, the more important the employment system is in it as its social basis, and that only free labor can be effective, and not forced labor from under the administrative stick under threat or as a result of criminal punishment. We are talking about creating a modern labor market. When justifying a new employment policy in the context of the transition to a market economy, it is useful to use the experience of developed countries, but also to critically rethink your own experience - positive and negative. I would like to hope that our society will be able to draw the right conclusions from the lessons of history and will not allow the repetition of previous mistakes. Revolution and unemployment . One of the initial dogmatic ideas is that capitalist production in all cases corresponds to a reserve industrial army and unemployment. However, by the beginning of 1917. In the Russian economy, industrial demand for labor exceeded its supply. After the February revolution, 568 industrial enterprises were closed and with their closure mass unemployment arose, and the supply in the labor market exceeded the demand for labor. The October Revolution marked the beginning of a revolutionary breakdown in relations in the sphere of labor. The Soviet government, with its first decrees on labor, satisfied all the socialist demands of the workers. This created the basic preconditions for combating increased unemployment. By April 1918 344 thousand unemployed were already registered, 33% of them were skilled workers. Approximately the same number could have been unaccounted for due to the lack of local employment authorities. Emergency measures taken by the state and labor organizations to curb unemployment have yielded positive results. Unemployment in large cities gradually disappeared. This was facilitated by a slight revival of business in industry, the beginning of the construction season and agricultural work, which traditionally attracted additional labor. Nationalization was an inevitable consequence of the totality of political, social and economic conditions of that time. It prevented further closures of enterprises and created the conditions to ensure full employment of the working masses, even if on an inefficient basis. Forced regulation of wages, which at that time were below the subsistence level, led to a significant drop in labor productivity. The government decided to resort to forced registration and mobilization of the labor force. Thus, a complete transition from voluntary to forced recruitment and registration of the country’s entire labor force was gradually prepared. The introduction of war communism in conditions of complete devastation in transport, the decline of industry, the destruction of cities, the growth of hunger and epidemics led to the militarization of labor. Thus, by the end of 1920, the universality of labor, proclaimed from the principles of socialism, turned into a completely militarized labor service. The form of nationalization of labor corresponded to very real coercion to work, supported by a system of repressive bodies. This led to the fact that, in conditions of inefficient management, all labor reserves were hidden in enterprises and farms. There were no more unemployed, since many people for a long time preferred to be “at work without work,” in anticipation of the next mobilization, and productive labor itself finally lost economic incentives in the conditions of the decreed minimum equalization distribution. After War Communism had completely exhausted its capabilities in organizing social production and regulating the labor market, a transition was made to a new economic policy. This also implied the implementation of a new employment policy. First, the labor committees and various types of commissions were abolished, with their functions assigned to the bodies of the CNT, and the labor armies, unable to feed themselves, were disbanded. The right to transfer from one institution to another has been partially introduced. After this, demobilization of age groups was carried out, a number of categories of workers were exempted from mass labor conscription, the last labor units were significantly reduced, and then disbanded. The agenda put forward the fundamental tasks of transition to economic methods of labor resources, solving social problems of effective employment associated with the labor reserve. However, there were no fundamental conclusions on the problem of employment from the area of the first years of the revolution. It was still believed that the path to socialism lay through equally forced labor for all members of society and the formation of industrial armies. Employment and the labor market under the NEP. The introduction of the NEP meant the recognition of the failure of the administrative-command methods of war communism, based on total forced labor. Labor mobilizations and conscription of the population, the militarization of labor and the communist subbotniks that became mandatory showed their complete ineffectiveness in restoring the destroyed national economy. Economic disaster was looming. To increase labor activity, it was necessary to create economic interest and free it from military-administrative coercion to work. Structural transformations caused unemployment among those who previously had stable employment in the public service, regardless of the level of professional qualifications and the state of the economic situation. A sharp reduction in the number and staff of all Soviet institutions, mass demobilization from the ranks of the Red Army, and the transfer of all industrial enterprises to full self-financing led to an excess of the supply of labor over the demand for labor. To boost the productive forces, it was necessary to ensure a balance of the labor force and jobs on a new economic and organizational basis, taking into account regional and sectoral conditions for the formation of employment. As a result, non-competitive groups of workers appeared on the labor market, whose unemployment took sustainable forms. It was necessary to ensure their labor activation, adaptation in production, protect them from administrative arbitrariness, and support them during the period of unemployment. In November 1922, the Labor Code was adopted, which recorded fundamental changes in its social organization associated with the implementation of the NEP. The code recorded the complete abolition of labor organizations and duties. Public works became an important form of combating mass unemployment, which was taking stagnant forms in a number of regions of the country. Preferential conditions were introduced for women, sending them to work, including in groups, organizing women's artels, and working in canteens and laundries. Labor exchanges were open to everyone who wanted to get a job. The NEP led to the emergence of a labor market. Despite all the advantages of the NEP, the unemployment that arose then is usually considered one of its serious negative aspects. To this day, its elimination is recognized as the undoubted merit of socialism, which was erected on the ruins of the NEP. After the “great turning point” in the frenzy of economic romanticism against the backdrop of high rates and gross indicators, it was solemnly proclaimed that in our country this social evil, the legacy of capitalism, was forever over. Now the time has come to restore the scientifically indisputable fact that the NEP not only reproduced unemployment in its various manifestations, but also assumed the formation of a reserve army of labor as a condition for the implementation of progressive changes in the economy. The elimination of unemployment in the way it was carried out meant the end of the labor market, free from non-economic coercion. The administrative-bureaucratic system regained power over social labor. Unemployment, as a phenomenon of the NEP, had justifications determined by the entire course of social development: socio-economic changes, industry shifts, regional characteristics and demographic processes. The NEP never fully resolved the problems of employment and unemployment. The “great turning point” intervened, reviving administrative coercion to work and attaching the worker to the factory-collective farm system for life. And yet the lessons of the NEP did not go unnoticed. By mastering them, we begin to understand that restructuring the economy on the principles of efficiency requires the formation of a labor market, freeing the worker from the shackles of coercion, and creating personal interest in highly productive creative work.
ContentIntroduction 3
1. Concept and features of the functioning of the labor market 4
1.1 Concept and essence of the labor market 4
1.2 Functions of the labor market 6
1.3 The mechanism of functioning of the labor market 7
2. Labor market in the USSR 11
2.1 Labor prospects in the USSR 11
2.2 Nature and characteristics of work 15
3. The current state of the labor market in Russia 20
Conclusion 25
References 27
Introduction
There is no unity among economists in assessing the labor market and the mechanism of its functioning. Classical political economy proceeds from the fact that the labor market, where only one productive resource is sold, like all other markets, operates on the basis of price equilibrium. The main market regulator is the price of labor. With the help of wages, according to representatives of this concept, the demand and supply of labor is regulated and their balance is maintained. The price of labor responds flexibly to market needs, increasing or decreasing depending on supply and demand. If there is equilibrium in the labor market, then unemployment is impossible.
The labor market in Russia has been growing steadily over recent years along with economic growth. The growing labor market gave rise to increased prosperity, to which Russians quickly got used to. However, the financial crisis, which unexpectedly came to Russia in the fall of 2008 for most citizens, changed everything.
The purpose of this work is to conduct a study of the labor market in the USSR and Russia. To achieve this goal, it is necessary to solve the following tasks:
1) define the concept and essence of the labor market,
2) study the main functions of the labor market,
3) analyze the mechanism of functioning of the labor market,
4) consider the prospects for the labor market in the USSR,
5) identify the features of the labor market in the USSR,
6) determine the current state of the labor market in Russia.
To write this work and solve the problems, the literature of many authors was used.
1. Concept and features of the functioning of the labor market
1.1 Concept and essence of the labor market
One of the four main factors of production is labor, which in economic theory is understood as the contribution to the production process made by people in the form of expenditure of physical and mental energy. The term labor also refers to labor resources - the most important element of the wealth of society, the quality and quantity of which largely determine the level of economic development of individual countries.
In a market economy there is a specific labor market. It is an integral part of the structure of market relations and functions along with markets for other factors of production, goods, and services. The labor market can be defined as a system of relations associated with the supply and hiring of labor resources.
The labor market is a special economic category that covers paid employment, which includes those applying for a job and all employees, except for students and independent (domestic) workers engaged in subsistence farming. The latter are employed outside the labor market.
As an economic category, the labor market is a complex system of relations regarding the exchange of individual abilities to work for the fund of means of subsistence necessary for the reproduction of labor power, and the placement of workers in the system of social division of labor according to the laws of commodity production and circulation.
